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Many students work to cover expenses and gain on-the-job experience while furthering their education. For some learners, taking online classes while working is one way to fit school into an already packed schedule.

While online classes allow you to study virtually anywhere, at any time, the quality of these programs can vary tremendously. Also, you may miss out on the ability to make professional and personal connections vs. in-person classes.

Read on to learn more about taking online classes while also working full-time, including the pros and cons, and strategies for juggling the demands of school alongside holding down a job.

Pros of Taking Online Classes

Given the time and financial investment that earning a degree can require, it can be helpful to weigh different schooling options before deciding whether to pursue an in-person education, online classes, or some hybrid of the two. Online classes can have some distinct advantages.

Here’s a look at some potential pros of working towards a degree or certificate online.

Having a Flexible Schedule

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Traditionally, college and graduate school courses meet once or multiple times per week throughout a semester or summer/winter session. The length of class time varies too. For example, large lectures may only span one hour, while once-per-week seminars could run for two or three hours.

If you’re taking a full-time course load, which usually constitutes a minimum of twelve credit hours, you’ll have to coordinate these blocked-out class hours around your existing work schedule.

As a result, in-person learning (where students are expected to be in class at a set time each week) is not always feasible if you plan to work and study at the same time.

If you work full-time, online classes can come with added flexibility. After all, online courses are often facilitated through prerecorded lectures, streaming video tutorials, self-guided activities, and reading that can be done on a student’s timeframe.

In some cases, online classes do still include a certain number of live lectures or learning activities (typically hosted via streaming video) that enrolled students are expected to attend.

In those scenarios, you might need to arrange your work schedule so you’re not on the job during the times when live online classes convene. That can help you take online classes successfully.

Naturely, most online classes still assign homework, so you’ll also need to consider when you’ll fit in independent reading, projects, and studying. However, online degree programs and classes often offer a higher level of scheduling flexibility, allowing you to “attend class” and study at times when you’re not working.

Maintaining Location Independence

There are thousands of colleges and universities across the United States, but probably only a handful near your home or place of work. While taking classes as a commuter student might be logistically possible, sticking to programs hosted by local universities can limit your choice of faculty and subject areas.

Additionally, it’s possible that local options aren’t the top-ranked in a given field — and might not even offer specific degrees or pre-professional certificates.

On the flip side, the only location required for taking online classes while working full-time is a reliable internet connection and a comfortable study space. Online classes also save time traveling to and fro a campus, giving you more time to juggle post-secondary studies alongside your regular job.

Possibly Lower Living Expenses

Tuition is only part of the equation when calculating the total cost of attending college. Some universities may require students to live on campus for one or more years, which could carry dining hall and other fees (in addition to the base cost of living in a dorm).

Students attending four-year public universities can expect room and board to run, on average, $12,302 a year, according to the Education Data Initiative. Opting for an online degree program can help bypass some of these additional expenses.

Cons of Taking Online Classes

In addition to online learning’s pros, there are some potential cons to think through when evaluating taking online classes while working full time.

Not Every Degree or Major Is Available

Colleges across the U.S. offer a wide array of majors and types of degrees. Online programs, on the other hand, tend to be more limited. So whether or not you can take online classes while working will depend, in part, on your chosen field of study.

For online bachelor’s degree programs, majors focused on business and health professions are among the most commonly available. Students interested in earning a master’s degree online in business or healthcare are in luck as well. There are also opportunities to enroll in graduate programs in education, engineering, criminal justice, and various social sciences entirely online.

Other majors and degrees, especially those that require in-person lab time or hands-on apprenticeship, such as culinary arts or chemistry, might not translate as well to an online format.

Recommended: Return on Education for Bachelor’s Degrees

Limited Networking Opportunities

Attending college in person can provide opportunities to make friends and build relationships with professors. Building a deep social and professional network while in school can help you find internships and jobs after school ends.

Taking online classes, however, can make it more challenging to connect with professors and fellow students. That being said, it’s still possible to make a strong impression on professors and peers through course assignments, presentations (whether individual or group), and written correspondences.

If you are planning on taking online classes while also working full-time in the same field (e.g., a nurse or a teacher studying for an extra certification in those professions), this potential networking disadvantage may be less of a concern — since you can still connect with fellow professionals on the job.

Can Be Hard to Focus and Seek Help

Some students may find that it’s harder to stay engaged with online classes vs. those that are given in person. It may be easier for them to be distracted or zone out. Also, when they have questions or issues with a concept, it may take more effort to get assistance than if they were in a real-world classroom.

Strategies for Taking Online Classes

Whether you just graduated high school or are returning to the classroom after years of working, being prepared can help you get the most from your online classes — and, ideally, help to create a healthier work-life balance. Here are some key ways to prep for working full time and going to college.

Making a Schedule and Sticking to It

The flexibility of online classes can feel liberating, but those readings, online discussions, and assignments still need to be completed. Keeping your work schedule in mind, it can be helpful to block out some non-work hours during the week or weekend just for studying and school assignments.

It may also be helpful to think about when to get school work done. If you’re not a morning person, it’s likely you won’t be cracking the textbooks at sunrise. If you find out that your present work-school schedule is hard to sustain over time, it’s perfectly okay to go back to the drawing board.

The important thing is to find a time-management system that works for the duration of the time you’re both working and studying full time.

Starting Small

Even if you feel confident and excited about returning to the classroom (virtual ones count, too), taking online classes while working full time may be a big adjustment.

Some online degree programs allow you to enroll as a part-time student, which can be a “trial-run” opportunity — allowing you to understand how demanding juggling school and studies can be (before paying full tuition).

Understanding how much time each online class will demand can help you to be realistic about how many classes you can take each semester without burning out.

Setting Goals and Rewarding Progress

Creating achievable goals at the beginning of each class or semester is one way to stay on track, grow as a student, and measure success. Attaching a reward to these periodic goals can help many learners to stay driven and engaged.

Whether you passed your first online class, completed a big group project, or got a key certification, you deserve to celebrate achieving your educational accomplishments.

Paying for Online Classes

For some students, the cost of online education (after subtracting dorms, dining plans, and transportation) can be an additional determining factor. The individual cost of online degrees and certificates will vary significantly from school to school — including price differences between public and private university programs.

In some cases, online-only programs may cost less for enrolled students. In others, online classes are priced similar to their in-person counterparts.

Whether you opt to work and go to college at the same time, how to pay for college is likely a big question. Making a plan for financing your education is one step in figuring out how to take online classes while working full time.

There are options for different types of student loans, for example.

Completing the Federal Application for Federal Student Aid (FAFSA) can help you determine how much federal student aid (such as grants, scholarships, and federal loans) you are eligible to receive. You can also explore scholarship opportunities through universities, nonprofit organizations, and private foundations for additional funding.

Many students also borrow money through private loans to pay for advancing their education. These are available through banks, credit unions, and online lenders and often may come with flexible repayment plans, allowing you to find a loan that fits your budget and financial plan. (It’s worth noting that federal student loans come with baked-in benefits, like income-driven repayment or public service loan forgiveness, that are not guaranteed by private lenders).

The Takeaway

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Can I work full-time and take online classes?

Yes, it is possible to work full-time and take online classes. Typically, those working full-time will take classes online on a part-time basis. Tactics that can make it easier to manage both of these responsibilities include finding an online program that is flexible enough to allow you to learn and study around your work obligations.

How to balance working full-time and school?

Some tips for balancing working full-time and school include creating a weekly schedule and using reminders, using time management apps, finding work with somewhat flexible hours, and setting realistic goals as you balance your job and studies.

What are the disadvantages of online classes?

The disadvantages of online classes can include the fact that not every program is available, that students may find it hard to engage and questions answered, and that opportunities to network, professionally and personally, are limited.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOISL-Q325-096

Recently, many colleges have changed their college admissions testing policies, making standardized tests like the SAT optional and placing more emphasis on other factors, such as GPA and essays. One reason for the shift is a growing concern that these tests tend to unfairly reward students with more wealth and access to test prep courses and tutors.

The SAT might be less popular as a requirement for admissions to some colleges, but these test scores have an impact beyond just getting into a school. Read on to learn how SAT requirements are changing, but why taking the SAT and submitting your score may still be helpful.

How SAT Requirements Are Changing

The number of colleges dropping SAT scores as a requirement for admission is growing. However, policies vary from school to school and from admission year to admission year, so students might want to double- and triple-check before assuming that their dream school doesn’t want to see their standardized test score.

A “test-optional” policy allows applicants to decide whether or not they want to submit their SAT or ACT scores to a college. This means that you can take the SAT (or ACT) and, based on how you do and how those scores compare to the average SAT score of admitted students, can decide whether or not you want to submit the score with your application.

Less commonly, colleges will have a “test-blind” or “test-free” policy. This means that even if a student submits SAT or ACT scores, the school will not consider them during the application process.

While some schools no longer require or consider their applicants’ SAT scores, others are making it easier to put your best foot forward with scores. Many colleges and universities, including the Common Application, now allow applicants to submit their SAT superscore.

An SAT superscore allows you to mix and match individual section scores from different test dates to come up with a “superscore” that is higher than the SAT score from a single sitting.

For some, this takes off some of the pressure of standardized testing. It means if a student feels off on one section, they can use a higher score from a previous test to get their best score possible.

Two other major recent changes to the SAT come from the College Board (which creates the test) itself: The SAT no longer contains the essay or subject tests. This means you no longer have the option to take — or submit — these tests.

How SAT Scores Still Matter

Colleges and universities might be changing their guidelines about requiring SAT scores, but standardized tests still matter not only in the admissions process but beyond.

Here are some reasons why the SAT and a student’s score still matter:

•  Avoiding the SAT could limit options. A student’s target school might not require an SAT score, but what about their safety or reach options? Bypassing the SAT test altogether could end up limiting a student in where they can apply to schools. With no test score at all, they may be limited to schools that don’t require an SAT score, potentially missing out on another great option for them. Forgoing the SAT test completely could mean dramatically cutting off a student’s options before the application process even begins.

•  Considered, but not required. Some schools no longer require SAT scores for applicants, but will still consider them if submitted. Sharing SAT scores can help give admissions officers a more comprehensive picture of the applicant. In addition, if the school is particularly competitive, a strong standardized test score could help a student stand out.

•  Scholarship eligibility. Some universities and nonprofits require an SAT score when applying for merit scholarships. Without an SAT score, applicants might be ineligible, losing out on an opportunity to get funding for education.

  Qualifying for and receiving a scholarship can lessen the need for federal or private student loans.

•  They’re just a piece of the puzzle. SAT scores aren’t the only thing college admission boards consider. They’ll also look at a student’s GPA, extracurriculars, essays, recommendations, and more. No applicant is just a number, and the SAT score is only one small part of a student’s profile. Often, the score serves only as a screening tool in the beginning and is considered less and less the further a student progresses in the admissions process.

•  Testing out of college courses. Applicants might not need SAT scores to apply to a school, but providing them might make them eligible to test out of core classes. In some schools, SAT scores might determine placement into, or out of 101 classes all students are required to take. Testing out of these courses could lead to graduating faster or spending less on higher education (which can lower or eliminate the need for private or federal student loans).

While students might not need an SAT score to get into their dream school, taking a standardized test could help them secure admission, scholarships, and entry into higher-level courses. It can be a valuable step for some in preparing for college.

Another Number that Matters: Financing Your Tuition

A student’s SAT score isn’t the only number they’ll have to consider during the admissions process. Another important figure is the cost of tuition, and students will have to start thinking of how they can pay for their education.

On top of federal student loans and scholarships, students might consider private student loans. These are educational loans available through banks, credit unions, and online lenders. Unlike federal student loans, private loans typically don’t come with benefits like income-driven repayment plans and loan forgiveness options — which is why it’s best to apply for federal student loans first.

The Takeaway

While SAT scores are required by fewer colleges than in the past, it may still be worthwhile for students to take the test. The score could help a student’s application package when test scores are considered but not required. It also might contribute to a student securing a merit scholarship toward the cost of their education.
In addition to pursuing scholarships, many students pursue federal and private student loans to fund their college costs.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Do colleges really care about SAT scores?

It depends. Some colleges don’t consider the SAT at all, some have test-optional policies, and others do require it. Even in a test-optional setting, however, SAT scores can help contribute to a candidate’s application. Also, SAT scores may help applicants qualify for merit scholarships.

Why is the SAT not required anymore?

Some schools have decided that SAT scores are not as important an indicator of an applicant’s qualifications and likelihood to succeed in college as they did in the past. Test-optional colleges let students choose whether to submit SAT or ACT scores; if a student submits good test results, that could improve their profile. Test-free colleges do not consider scores at all.

Is 1200 a good SAT score?

A 1200 SAT score is usually considered a good score vs. the current average of 1040. , as it’s above the national average. It lands in the 76th percentile, which means you scored better than about three-quarters of those who took the test. It should help you qualify for admission to many schools, but it may not be high enough to qualify for the most selective universities.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

The Secured Overnight Financing Rate (SOFR) is the benchmark interest rate that has replaced the London Interbank Offered Rate (LIBOR) in the U.S. In fact, for the past several years, lenders have been gradually switching from using LIBOR to determine rates for consumer loans, such as private student loans, to using SOFR.

Here’s what you need to know about SOFR, including how it differs from LIBOR, and how you might be impacted by the change.

What Is the Secured Overnight Financing Rate (SOFR)?

Financial institutions now use Secured Overnight Financing Rate, or SOFR, as a tool for pricing corporate and consumer loans, including business loans, private student loans, mortgages, and credit cards. SOFR sets rates based on the rates that financial institutions pay one another for overnight loans (hence the name). The SOFR rate is published daily by the Federal Reserve Bank of New York.

SOFR is a popular benchmark because it is risk-free and transparent. It is based on more than $1 trillion in cleared marketplace transactions. This is in contrast to the index it has replaced, the London Interbank Offered Rate, better known as LIBOR. LIBOR was based on hypothetical short-term loan rates. This has historically made LIBOR less reliable and more vulnerable to insider manipulation.

Recommended: A Complete Guide to Private Student Loans

How Does the SOFR Work?

When large financial institutions lend money to one another, they must adhere to reserve and liquidity requirements. They do this by using Treasury bond repurchase agreements, known as “repos”. Using repo agreements, banks are able to make overnight loans with Treasurys as collateral.

The SOFR interest rate index is made up of the weighted averages of the interest rates used in real, finalized repo transactions. Every morning, the New York Federal Reserve Bank publishes the SOFR rate it has calculated for repo transactions on the previous business day.

Current SOFR Rates

The New York Federal Reserve publishes the SOFR rate every business day. The latest rate is:

4.30% on July 24, 2025

The History of SOFR

Financial institutions, banks, and lenders rely on certain indexes to determine interest rates. Before the 1980s, there wasn’t one particular index that was used internationally. However, during the 1980s, increased complexity in the market resulted in the need for more standardized use of a benchmark tool for determining adjustable rates.

The international financial industry adopted LIBOR as the standard because it was viewed as a trusted, accurate, and reliable index. Other indexes were still used, but the majority of institutions used LIBOR. LIBOR rates were once the basis for about $300 trillion in assets around the world.

Fast forward to around 2008, and certain large financial institutions were manipulating interest rates illegally in order to increase their profits. This was possible in part because LIBOR is based on hypothetical rates. Manipulation of rates was one factor that led to the financial crisis.

Once that manipulation was discovered, there was a global demand for a new rate benchmark and a call to end the use of LIBOR. As a result of the 2008 financial crisis, banking regulations led to less borrowing and a lessening of trading activity. Less trading made LIBOR even less reliable.

In 2017, the Federal Reserve formed a group of large financial institutions known as the Alternative Reference Rate Committee (ARRC) to work on finding an alternative to LIBOR. They ultimately chose SOFR.

Both LIBOR and SOFR were being used by banks and lenders until June 2023, when SOFR became the standard in the U.S.

How SOFR Is Different From LIBOR

There are some key differences between SOFR and LIBOR, which help explain the shift towards SOFR and away from LIBOR. Here’s a look at some of the biggest.

•   SOFR is based on completed transactions, whereas LIBOR is based on the rates that financial institutions said they would offer each other for short-term loans. Because it’s based on hypotheticals, LIBOR is more vulnerable to manipulation.

•   Lending based on LIBOR doesn’t use collateral, making it unsecured. Loans using LIBOR include a premium due to credit risk. SOFR, on the other hand, is secured, as it is based on transactions backed with Treasurys. Therefore, there is no premium included in the interest rates.

•   SOFR is a daily (overnight) rate, while LIBOR has seven variable rates.

Recommended: What’s the Average Student Loan Interest Rate?

How SOFR Could Affect You

There has been some concern that the shift away from LIBOR would cause great market disruption. However, the changeover was designed to be slow and gradual and, generally, hasn’t caused any sudden changes for borrowers.

In fact, if you have a private student loan with a fixed-rate, the change from LIBOR to SOFR has not — and will not — have any impact on your loan, since the rate is fixed for the life of the loan. If you are entering into a new loan, SOFR rates are already being used. Keep in mind, though, that only private student loans use SOFR, as federal student loans have fixed rates set by law.

If you have a student loan (or any other type of loan) with a variable rate, the shift from LIBOR to SOFR may have impacted your loan — but likely not in any noticeable way. Switching from one index (LIBOR) to a largely similar index (SOFR) — in the absence of any other market changes — won’t have much impact on a loan’s interest rate, according to the Consumer Financial Protection Bureau.

The rate on an adjustable-rate loan can go up and down over time. These changes, however, are largely due to general ups and downs in interest rates across the economy. Loan rates have been going up across the board, but that is not due to the shift from LIBOR to SOFR. Rather, it’s the result of efforts by the Federal Reserve to tamp down inflation.

Recommended: Private Student Loans vs Federal Student Loans

The Takeaway

If you have a private student loan, you may have received a notice from your lender or servicer about a change in the index rate for your loan. Instead of LIBOR, lenders in the U.S. are now using SOFR. The indexes work in a similar way and it should not have a major impact on your loan. If you’re in the market for a new loan, you won’t be affected by the switch, since U.S. lenders have already made the shift to SOFR.

Keep in mind, though, that interest rates on loans are based on numerous factors, including general market conditions and your qualifications as a borrower.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What is the secured overnight financing rate?

The Secured Overnight Financing Rate (SOFR) is a benchmark interest rate based on overnight repurchase agreements (repos) collateralized by U.S. Treasury securities. It reflects the cost of borrowing cash overnight in the repo market.

What is a 30-day SOFR?

The 30-day SOFR is the average of the daily Secured Overnight Financing Rates (SOFR) over a 30-day period. It provides a measure of the cost of borrowing cash secured by U.S. Treasury securities over a month.

Is SOFR a risk-free rate?

SOFR is considered a nearly risk-free rate because it is based on transactions in the highly liquid U.S. Treasury repo market. However, it is not entirely risk-free, as it can be affected by market conditions and liquidity constraints.

Photo credit: iStock/Nicholas Ahonen

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOISL-Q325-038

College is expensive and costs continue to rise. In 1989, the average cost of a four-year degree school term was $1,730. As of 2025, the average annual cost increased to an average of $9,750 for in-state students at a public four-year college.

With college costs continuing to skyrocket, many parents apply for federal Parent PLUS Loans. Since these loans are issued in the parent’s name, it is important that parents understand the details of what these loans entail and how often you have to apply to ensure students receive proper funding.

To avoid missing an application deadline, here’s some helpful information about Parent PLUS Loans and their application process.

Parent PLUS Loan Recap

A Parent PLUS Loan is a type of Direct PLUS Loan, which is offered to parents who have a student enrolled at least part-time in an eligible education program.

Borrowers may be able to borrow an amount that equals but does not exceed the full cost of attendance, minus any other financial aid, such as scholarships and grants, that your child has received.

These loans are federally-funded and not subsidized. This means that the loan will accrue interest while the student is in school. Parent PLUS Loans offer fixed interest rates and won’t change throughout the life of the loan.

The interest rate for Parent PLUS Loans disbursed for the 2025-26 academic year is 8.94%. It’s also important to note that as of October 1, 2020, Direct PLUS Loans have a fee of 4.228% of the loan amount (which is deducted from each loan disbursement proportionately).

Note that for any loans disbursed on or after July 1, 2026, new federal limits will apply. Rather than borrowing up to the cost of attendance (minus any other aid), parents can borrow $20K per year, or $65K total per student.

Qualifying for a Parent Plus Loan

To qualify for a Parent PLUS Loan, borrowers must:

•   Be the biological or adoptive parent, or in some cases, the stepparent, of an undergraduate student enrolled part-time at an eligible school

•   Not have an adverse credit history

•   Meet general eligibility requirements for federally-funded student aid

Keep in mind that even if a grandparent is primarily responsible for a student, they are not eligible for a Parent PLUS Loan, unless they have legally adopted their grandchildren and are legal guardians.

Applying for a Parent PLUS Loan

The first step to apply for a Parent PLUS Loan is to complete the Free Application for Federal Student Aid (FAFSA®) form with the student.

Most schools require you to apply for Direct PLUS Loans online, however, some may have different application processes that you must follow. StudentAid.gov provides a list of schools that allow you to apply online. If your school is not on this list, check with the school’s financial aid office to verify the application process you must follow.

Those who qualify for a Parent PLUS Loan will have to sign a Direct PLUS Loan Master Promissory Note (MPN). This document verifies that the borrower agrees to the terms of the loan. Each school may have a different process, so double check with the financial aid office to ensure you understand the specific process for your student’s school of choice.

Apply for a Parent Plus Loan Every Year

When you complete the FAFSA form, you are applying for financial aid for one school year. Therefore, to receive financial aid for the next year, you will have to submit a new FAFSA form to get new aid.

However, the website allows you to select a Renewal FAFSA form that remembers your information from the previous years, making it easier to submit a new financial aid application.

Additionally, it’s important to pay attention to the FAFSA deadlines to avoid missing out on any financial aid opportunities. General recommendations suggest submitting the FAFSA form by the earliest financial aid deadline of the schools to which you are applying.

Each state may have their own deadlines, so it can help to verify your state’s specific date.

Pros of Parent PLUS Loans

Large Loan Limits

First, eligible borrowers can take out a generous Parent PLUS Loan, as long as it doesn’t exceed the total cost of attendance at the student’s school of choosing (minus other financial aid they qualify for). However, as stated above, new federal limits will apply as of July 1, 2026. Parents will be able to borrow a maximum of $20,000 per year, or $65,000 total per student.

Fixed Interest Rates

Another advantage of the Parent PLUS Loan is that the interest rates are fixed. This means that even if rates increase nationally, the interest rate on the loan is locked in at the rate determined at the time the loan was disbursed.

Having a fixed interest rate can make it easier to budget for the monthly payments when they become due since borrowers know exactly what to expect.

Flexible Repayment Options

Additionally, when it comes to loan repayment, there are several flexible repayment options. For example, you could select a standard repayment plan with fixed monthly payments for 10 years or an extended repayment plan with either a fixed or graduated payment schedule over a 25-year term.

Parent PLUS Loans are not eligible for income-driven repayment plans unless they have been consolidated with a Direct Consolidation Loan. This is when multiple federal loans are consolidated into one single Direct Consolidation Loan. These loans are still federal loans and the new interest rate is the weighted average of the existing loans.

Note that per the One Big Beautiful Bill Act, current Parent PLUS borrowers have one year from the bill’s enactment to consolidate their loans. Missing that deadline permanently cuts off access to income-driven repayment and loan forgiveness. For new Parent PLUS Loans issued on or after July 1, 2026, borrowers must use the standard fixed repayment plan (10–25 years, depending on loan balance). Income-driven repayment options and graduated repayment plans will be eliminated for these loans.

Cons of Parent PLUS Loans

Higher Interest Rates

Parent PLUS Loans often come with higher interest rates compared to other federal student loans, such as Direct Subsidized or Unsubsidized Loans. This can make the loans more expensive over time, increasing the total amount of money that needs to be repaid.

Must Meet Eligibility Requirements

Not everyone qualifies for a Parent PLUS Loan. Although this isn’t necessarily a disadvantage, it’s important to understand that you will have to meet all eligibility requirements to qualify. This includes passing a credit check.

Adverse credit indicators include defaults of debt, foreclosures, repossessions, debts discharged through bankruptcy, tax liens, wage garnishments, or previous write-offs of federal student debt. However, you might be able to qualify if you apply with an endorser or a cosigner.

Alternative Financing Options

If your application is denied due to adverse credit history, there are still other financing options. Here are a few to consider:

Enlisting an Endorser

If a parent doesn’t qualify based on their own credit history, they can try to enlist a cosigner, called an endorser, on the Parent PLUS Loan. The endorser agrees to take responsibility for the loan if the borrower fails to repay, and the loan will show up on the endorser’s credit report as his or her own debt. If you apply with an endorser, you will be required to complete PLUS credit counseling.

Looking for Free Money

It can be wise to continue to apply and look for scholarships, work-study, or grant rewards. There are many ways to find reward opportunities, including reaching out to the school’s financial aid office, contacting federal or state grant agencies, and searching for opportunities online.

New opportunities may become available every year, so it can be wise to continue to stay out on the look for funding opportunities.

Applying for Unsubsidized Federal Loans

If a parent is ineligible for a Parent PLUS Loan, the student may be eligible to receive additional Direct Unsubsidized Loan funds up to the loan limits for independent students.

Federal student loans can be reliable borrowing options because they often have lower interest rates and could have better repayment terms than other loans available to students. However, it’s worth making sure that a student isn’t taking out more debt than they can handle after graduation.

Considering Private Loans

Lastly, if all other options fail, some families may want to consider private student loans. These loans are offered through financial institutions such as banks, credit unions, and online lenders.

Keep in mind, private student loans tend to have less flexible repayment terms and higher interest rates than federal student loans.

For example, private lenders may require you to begin making payments before your child graduates. Conversely, with a Parent PLUS Loan, parents can wait to make repayments until after their child has graduated.

Additionally, when applying for a private loan, the interest rate is generally based on factors like the borrower’s income and credit score.

If you think you may need to use private loans, don’t be discouraged, and instead, be informed about your options. First, it’s worth shopping around and comparing lenders for private loans.

Lenders’ terms will vary, so it can be helpful to get several quotes and ask about the interest rate (and whether it’s fixed or variable), the loan’s repayment terms, and what happens in the event there are financial difficulties that make it difficult to stick to the repayment plan.

The Takeaway

Parent PLUS Loans provide a valuable financial resource for parents to help cover their child’s education costs and they do require a new application each academic year. This annual process, including a credit check and involvement from the school’s financial aid office, ensures that the loan remains a responsible and manageable option.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Do you have to reapply for a Parent PLUS Loan?

Yes, you need to reapply for a Parent PLUS Loan each academic year. The application process includes completing the FAFSA, requesting the loan through the school’s financial aid office, and passing a credit check. Renewal applications simplify the process but are still required annually.

Do both parents need to apply for a Parent PLUS Loan?

No, both parents do not need to apply for a Parent PLUS Loan. Only one parent can apply, and if they are denied, the other parent can apply separately. However, both parents cannot be listed as co-borrowers on the same loan.

What credit score is needed for a Parent PLUS Loan?

There is no specific credit score requirement for a Parent PLUS Loan, but applicants must not have an adverse credit history. Generally, this means no defaults, foreclosures, or late payments within the last five years. A score of at least 640 is often recommended for better approval chances.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Commercial pilots can have exciting and lucrative careers. However, the tuition for flight school is quite a financial investment, costing upwards of $100,000 for some programs. Altogether, it takes about two years for someone with no experience to become a commercial pilot.

If you’re considering flight school but can’t pull together that kind of cash, you’ve got options, from scholarships and grants to military — and airline-sponsored training.

Typical Cost of Flight School

In the U.S., to become a commercial airline pilot can cost over $100,000. Associated costs can also add up: There’s an initial medical exam ($75-$200), test fees ($500-$700), and supplies like headsets and books ($500-$1000). Depending on the flight school, you might also be on the hook for instructor fees, fuel surcharges, landing fees, and more.

If you just want to fly but don’t have your heart set on being a commercial airline pilot, you’ll pay less for training and certification. You can become a private pilot for $6,000 to $20,000 or more.

10 Tips for Paying for Flight School

Even if you have money set aside for flight school, financial help may come in handy. Below are the top ways that aspiring pilots help cover their costs.

•   Federal loans and grants

•   Scholarships

•   Military tuition assistance

•   Sallie Mae flight training loans

•   Private loans

•   Working at a flight school

•   Personal loan

•   HELOC

•   Airline-sponsored training

1. Savings

This may be the least complicated method of funding your education, but as noted above, just because you have savings doesn’t mean you shouldn’t consider other ways to fund your dream. Also, you may need that savings to support yourself over the two years it takes for someone with no experience to earn their commercial pilot’s license.

2. Federal Loans and Grants

You may be eligible for federal student loans if you attend an aviation program at an accredited university or college. Independent flight schools usually don’t qualify for federal aid, but it’s worth checking with your program just in case.

If your school does qualify for federal aid, simply fill out the Free Application for Federal Student Aid (FAFSA®) to apply.

The same application will submit your information to the federal Pell Grant program. These grants assist students with exceptional financial need and generally don’t have to be repaid (unlike student loans). The maximum amount available for the 2025-26 academic year is $7,395.

3. Scholarships

As with academic programs, scholarships are available for flight school. Check with your flight school of choice for guidance. The Federal Aviation Administration also shares information about grants and scholarships.

SoFi’s Scholarship Search tool can help you find flight school funding. For the school type filter, choose trade or tech, and select aviation for your field of study.

4. Military Tuition Assistance

The Post 9/11 G.I. Bill may pay a portion of your flight school costs depending on the program you select, whether you’ve received benefits in the past, and other factors. Veterans who qualify can receive funding to help with tuition, housing, and books and supplies. Go to VA.gov for details. (And keep an eye on current legislation for possible changes to the G.I. program.)

5. Sallie Mae Flight Training Loan

Sallie Mae offers two types of student loans tailored for pilot training and aviation degrees, covering up to 100% of the cost — including flight hours, ground instruction, certification fees, and sometimes living expenses. Sallie Mae also provides resources to help students manage their loans and plan for their financial future, making it a viable option for those pursuing a career in aviation.

6. Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. Interest rates and repayment terms vary by lender and the type of program you’re enrolled in. Shop around to find the best terms you can qualify for. Keep in mind, though, that some lenders do not offer private student loans for flight school, including SoFi.

Recommended: A Complete Guide to Private Student Loans

7. Work at a Flight School

Working at a flight school in a non-pilot capacity may earn you a discount. Flight schools are known to offer generous employee discounts on aircraft rental, and for accepting some work hours as flight hours. If you have your eye on a particular school, ask about career opportunities and employee discounts.

8. Personal Loans

Personal loans provide borrowers with a lump sum — typically from $5,000 to $100,000 — that are paid back in equal installments plus interest. Because personal loan funds can be used for almost any personal expenses, they can be a good option for older students with excellent credit histories.

It’s important to note that some lenders (including SoFi) don’t allow personal loan funds to be used for post-secondary education, so be sure to check with your lender.

9. Home Equity Lines of Credit

Home equity lines of credit (HELOCs) allow you to borrow against equity in your home, on an as-needed basis. Throughout the draw period, you can take out money up to your pre-approved limit. HELOCs are often used for big expenses; flight school can qualify.

10. Airline-Sponsored Training

Airlines are currently experiencing a dire shortage of pilots. As a result, U.S. companies are beginning to follow in the slipstream of European airlines by offering pilot training programs.

Frontier Airlines, for example, has a two-year training program in partnership with ATP Flight School. Candidates must be 19 years or older, have a high school diploma, and pass a background check. After their training is complete, grads will have a guaranteed job waiting for them with Frontier.

Alaska, Delta, United, and JetBlue have created similar pilot development programs.

Why Go to Flight School?

What sort of personality do you need to become a commercial airline pilot? According to one NASA study, pilots should be low in anxiety, depression, hostility, and impulsiveness. The ideal pilot is high in conscientiousness, deliberation, striving, dutifulness, and assertiveness. If this sounds like you, you’ll probably fit right in at flight school.

Once your training is complete, your job outlook is golden. Due to current pilot shortages and better-than-average job growth, airlines no longer require pilots to have a four-year degree or an educational background in aviation and aeronautics.

If that doesn’t convince you, how about this: Pilots earn on average $135,000 a year (and free travel!).

The Takeaway

Flight school is pricey: upwards of $100,000 (or more) for two years of education and training. However, financial aid is available — from scholarships and need-based grants to programs subsidized by the G.I. Bill and airline companies. Take care when selecting your flight school, because only certain accredited programs offer opportunities for federal aid.

While some private lenders offer loans for flight school, SoFi does not. SoFi does, however, offer private student loans for eligible graduate certificate programs. If you’re a college student interested in pursuing a certificate program, a SoFi private loan could be a tool to help you finance the program.

SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Can you go to flight school with no money saved up?

Financial aid is available for qualifying candidates. If you enter an undergraduate aviation program at an accredited college or university, you can fill out the FAFSA to see if you qualify for federal aid. Also, due to the current shortage of commercial pilots, several airlines have developed pilot training programs that place graduates in airline jobs.

Do airlines pay for flight school and training?

Some airlines do have pilot development programs that require no prior experience or educational background. However, funding varies by company — some may offer financing (basically, a loan) rather than subsidizing tuition. Check with Frontier, Delta, United, JetBlue, and Alaska Airlines to see how their programs are structured.

What makes the cost of flight training so high?

It’s expensive to rent aircraft for training purposes. Additional costs may include surcharges for fuel, insurance, instructor fees, and so forth. A school must cover its costs, and one way to do so is through student fees.

Photo credit: iStock/mladn61

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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