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Students want to see one word when they get letters from their prospective colleges: accepted. Unfortunately, that likely isn’t going to be the result every time. Some students will end up on the college waitlist, but that doesn’t mean they won’t be accepted eventually.

Being waitlisted is not the same as being rejected. There’s still a possibility of getting accepted and attending that dream school.

Keep reading to learn more on what it means to be waitlisted for college and what to do if that happens.

What Does It Mean to Be Waitlisted?

Being waitlisted for college means you’re still up for consideration based on how many spaces are left after decision day. Getting accepted from the waitlist depends on how many accepted students choose to attend the school.

Decision day is May 1, when incoming freshmen are required to notify schools whether they will be attending or not. If not enough students accept their invites for schools to meet enrollment numbers, then students on the waitlist will be reevaluated and potentially accepted.

There’s no guarantee that accepting a spot on the waitlist will lead to being admitted, but that doesn’t mean you should give up. There are still things you can do to boost your chances.

Waitlisted or Deferred?

In some cases, a student may receive a letter saying they’ve been deferred rather than being put on the waitlist. So what’s the difference? A deferral usually involves students who applied for early action or early decision. These applications are generally turned in during November of senior year.

If a student applies via early action or decision and they receive a deferral, that means they have not yet been accepted but their application has been changed to regular decision. The application will be reviewed again during the regular decision time frame.

A deferral is different from a waitlist, but students who have been deferred generally want to take the same actions as those who have been waitlisted to better their chances of admission.


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

What to Do When You Get Waitlisted

Students who have been waitlisted but still want to attend the school must first do one thing: Accept their position on the waitlist.

If you neglect to contact the school and accept your position, you’ll be removed from the list and won’t be considered for admission if there are spots left after decision day.

Once you’ve accepted your spot on the waitlist, there are a few steps you can take that may better your chances of being accepted. Here’s a close look.

Contact Admissions

When you receive a letter informing you that you’ve been waitlisted, there might be some instructions included. First and foremost, it’s a good idea to follow them.

Next, it’s often recommended that students contact admissions with a letter to further stress their commitment to attending the school. The letter should detail why you want to attend that school and why you believe that school is the best fit for you. You might also want to ask that the letter be kept in your file along with your other application materials.

Request an Interview

Asking for an interview can be helpful in getting off the waitlist. Meeting with someone in person may make you more memorable when it comes time to accept applicants from the waitlist.

If you already did an interview, it’s okay to request another one after receiving a waitlist decision. A second interview provides the chance to reinforce your commitment to the school and add any recent accomplishments to the conversation. This can be a great time to bring up anything special you have achieved during the spring semester.

Reserve a Spot at Your Second Choice

Even though it can be discouraging, it’s highly recommended that students who’ve been waitlisted for their first-choice school put a deposit down for their next-best option. Putting a deposit down on another school isn’t giving up on your dream school; it’s just an important safety net to ensure you have somewhere to attend.

Some students may opt to take a gap year if they don’t make it into their school of choice. This choice is highly personal, though, and there isn’t a clear recommendation on how beneficial or harmful it is. Some students may find a gap year useful and productive, while others may find that it deters them from going back to school on time.

Anyone committed to attending college in the fall will likely find it a smart move to put a deposit down on their second- or even third-place school, and then continue working on getting accepted off the waitlist for their first choice.

Recommended: How Many Colleges Should I Apply To?

Retake Tests

Students who did not score well on the SAT or ACT may want to consider retaking those tests if they’ve been waitlisted. Before you do that, however, it’s a good idea to contact the college to make sure it’s willing to accept additional application information. If the school will accept it, and you think you can get better scores, it could be helpful to go ahead and retake the tests.

Most colleges will accept scores from either test, but it’s best to check with each school to be sure. Both tests have a similar goal — testing for college readiness — but they vary slightly in timing and types of questions asked.

If you need to improve your test scores but have limited time or money, it may help to research the difference between the two tests and take the one you feel you can perform better on. Taking practice tests can also help you determine which test suits you better. Many students do take both tests, so that is an option as well.

Recommended: Do Your SAT Scores Really Matter for College?

Don’t Give Up

Make the end of senior year impressive. Don’t let that waitlist cause discouragement. If you truly want to make it off the waitlist, you’ll want to work even harder at the end of your senior year. Senior grades can still affect admissions, so keeping them high may help those who are on the waitlist.

If you still don’t get accepted to your dream school, it doesn’t mean you have to give up. Even if you’re not accepted from the waitlist, there are still a couple of options. You can accept admission from a different school and aim to transfer to your dream school after one to two years. This allows time to earn good grades, get the necessary credits, then transfer.

If your plan is to transfer schools, however, you’ll want to work closely with your counselor to make sure you’re taking the correct courses and carefully consider your choice of major, since not all credits will transfer to all schools.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, Federal Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and more.

Ready to Start. What’s Next?

Whether you make it off the waitlist and get into your dream school or choose to accept admission at your second choice, you’ll be faced with tuition. So how to cover the cost of college? Tuition, fees, books, food, plus all the other costs of living adds up quickly.

Luckily, there are resources available to help students finance their college education. The first step for most should be filling out the Free Application for Federal Student Aid (FAFSA®). The application will determine eligibility to receive federal aid. The eligibility for undergraduates to receive aid is most often based on their parents’ income. This process will inform students of how much federal aid they can receive, and what kind.

Federal aid can come in the form of grants, loans, and work-study. Grants don’t need to be repaid (unless you withdraw from school and owe a refund), but loans do. Federal loans come with some benefits that students won’t get with private student loans, including income-driven repayment plans and potentially lower interest rates.

Another option for funding the college experience is a private scholarship. There are a wide variety of scholarships available, with different eligibility requirements for each one. Some scholarships are need-based; some are merit-based.

If you can’t finance college completely with federal aid and scholarships, private student loans are also available. The eligibility for private student loans is usually based on the student’s (or cosigner’s) income and credit history. Rates and terms vary by lender, so it’s important for students to research their options before making a choice.

The Takeaway

If you find yourself waitlisted for college, it’s important to stay proactive and positive. Follow the steps outlined, such as submitting additional materials, staying in touch with the admissions office, and preparing for other options. While the wait can be stressful, remember that many students are admitted from the waitlist each year.

While you wait, you can also be proactive about finding ways to pay for college. This includes searching for scholarships and grants, applying for federal and private student loans, and possibly working a part-time job to save money.

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 waitlisted students usually get accepted?

Waitlisted students have a varied chance of acceptance, often lower than initially admitted students. The likelihood depends on the college’s enrollment needs and the strength of the waitlist. Some schools accept a significant number of waitlisted students, while others accept very few. Stay proactive and explore other options.

Is a waitlist basically a rejection?

A waitlist is not a rejection but a deferred decision. It means the college is interested in you but needs to see how their admissions process plays out. While it’s uncertain, it’s not the end of the road. Stay engaged and keep your options open.

How long do college waitlists last?

College waitlists can last several weeks to months, often until the school has a clearer picture of its enrollment. Some colleges may notify waitlisted students by May, while others wait until the summer. It’s important to stay patient and keep in touch with the admissions office.

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-Q325-006

No doubt you’re aware that sending a child to college is expensive. The current cost of attending a private college is $58,628 per year for students who live on campus ($38,421 of it on tuition and fees), according to the Education Data Initiative. Public universities are generally more affordable, with tuition and fees averaging $9,750 per year (for in-state students) and $28,386 (for out-of-state students). But those numbers don’t include room and board.

As a parent, sometimes just thinking about the cost of college for your kid (or kids) can feel bleak. Fortunately, there are a number of college fund options that can make it easier to save a sizable sum by the time your child goes to college. Generally, the earlier you start, the better, but it’s never too late to get going. Read on for a closer look at how to set up the best type of college fund for your child.

How to Set up College Funds: Getting Started

When it comes to setting up a college fund, there are a few savings plans and investment accounts that are specifically designed to help people save for their child’s education expenses. Here’s a closer look at your options.

529 Plans

529 plans, also known as qualified tuition plans, are named after an IRS code section and give parents the option to save for college in the name of a child while providing certain tax advantages.

There are two kinds of 529 plans: prepaid tuition plans and education savings plans.

Prepaid tuition plans let you buy future credits or course units at participating colleges or universities. These credits are used to help cover the cost of tuition for the beneficiary. Most prepaid tuition plans have residency requirements and are often sponsored by state governments.

Education savings plans are investment accounts that can be used to save for the beneficiary’s qualified education expenses. The funds can be used to pay for higher education or private elementary or high schools. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

If your child decides not to go to school, it’s possible to roll the account over into the name of another family member. If the funds aren’t used for education-related expenses, there may be taxes and penalties.

Generous family and friends can also contribute to a child’s college savings plan. They may choose to make deposits to an existing 529 account or set up one themselves, naming a beneficiary of their choosing.

Coverdell Education Savings Account

A Coverdell Education Savings Account (ESA) has more limitations but may work well for some families. Individuals who have a modified gross adjusted income (MAGI) that falls below $110,000 ($220,000 if married and filing jointly) may be eligible to save for college using a Coverdell Education Savings Account.

You can contribute up to $2,000 for a single beneficiary in a given year. Funds saved in this type of account can be used for eligible elementary and secondary expenses, in addition to higher education expenses. Contributions are made after taxes and must be made in cash. Typically, the funds can be withdrawn without a fee if they are used for qualified education expenses.

Recommended: Paying for College: A Parent’s Guide

The Uniform Gift to Minors Act (UGMA) Account

This custodial account allows your child to own stocks and mutual funds. The custodian still controls the account until the minor reaches legal age. Note that it’s not tax-free.

Annual contributions that exceed $19,000 ($38,000 for a married couple) may be subject to a gift tax. It’s possible that a UGMA may reduce the amount of financial aid eligibility. Additionally, there is no penalty should the funds not be used for education expenses.

Roth IRA

Although generally used for retirement savings, a Roth IRA can be used to pay for the cost of college. Contributions to Roth IRAs are made with after-tax dollars but earnings grow tax-free.

Generally, to make fee-free withdrawals from an IRA, the account holder needs to be at least 59 ½ years old. However, if you made the first contribution to your Roth IRA at least five years before, you can also withdraw the growth for qualified education expenses, including tuition, books, and supplies.

Keep in mind that while there may not be an early withdrawal fee, the earnings withdrawn may still be subject to income tax.

Easing the Financial Burden

Even after years of diligent saving, paying the full cost of college tuition isn’t affordable for some families. Fortunately, there are a few options to fill the gaps and help parents and students pay for college.

Students getting ready to start college or those who are already enrolled could look into options like scholarships, grants, or private student loans.

You’ll want to be sure to fill out the Free Application for Federal Student Aid (FAFSA®). This is the first step in qualifying for federal aid, including scholarships and grants, work-study, and federal student loans.

Scholarships

These can be a powerful asset when paying for college since it’s money that doesn’t have to be paid back.

Scholarships are typically merit-based and can be offered through a variety of different types of organizations like local nonprofits, corporations, or even sometimes directly from universities. There are a number of searchable scholarship databases that compile different scholarship opportunities.

Grants

In addition to scholarships, there are thousands of grants available to students. Grants are issued by the federal government, the Pell program, and individual states. Some are need-based, while others are merit-based. To find out if you qualify and to become eligible for grants, you need to fill out the FAFSA.

Work-Study Programs

The Federal Work-Study Program provides part-time jobs for undergraduate, graduate, and professional students with financial needs. These jobs allow them to earn money to help pay education expenses. To be eligible for work-study, you must fill out the FAFSA.

Student Loans

There are two types of student loans: federal and private. Federal student loans are awarded as a part of a student’s financial aid package and can either be subsidized or unsubsidized.

Subsidized Federal Student Loans

Subsidized student loans are awarded to eligible undergraduate students based on need. The federal government covers the interest on these loans during the time the student is in school at least half-time, during the six-month grace period after leaving school, and during deferment periods.

Unsubsidized Federal Student Loans

Unsubsidized student loans are not awarded based on financial need, and are available to both undergraduate and graduate students. Interest on these loans begins to accrue as soon as the loan is disbursed. If the borrower chooses not to pay the interest while in school, during grace periods, or while in deferment, the interest will be added to the loan principal.

Private Student Loans

Private student loans are available through private lenders, including banks, credit unions, and online lenders. Typically, for someone to get a private student loan, lenders will evaluate the borrower’s credit history, which isn’t the case with most federal student loans. This is why some borrowers rely on a cosigner to secure private student loans.

Many private student loans require payments while the student is still in school, but some do allow you to defer payments until after you graduate (interest will continue to accrue, however).

Recommended: Do I Need a Student Loan Cosigner?

An Alternative Way to Finance College

Some parents might consider taking out a parent-student loan to help their kids pay for college. The federal government makes Direct PLUS Loans available to parents and graduate students.

Parent PLUS Loan interest rates and fees are set by the Education Department and are higher than other types of federal student loans. The interest rate for the 2025-26 school year on a Direct PLUS Loan is 8.94% and is fixed for the life of the loan.

Some private lenders also offer parent student loans. Private parent loan interest rates can be fixed or variable and are based on the borrower’s creditworthiness. Private loans may offer lower rates than federal PLUS Loans for well-qualified applicants.

Recommended: Private Student Loans vs Federal Student Loans

The Takeaway

There’s no time like now to start saving for college. There are a variety of accounts that are specifically designed to help families save for their children’s future college education, including 529 savings plans and Coverdell Education Savings Accounts.

Beyond savings, students and their families rely on things like scholarships, grants, and student loans to help cover the cost of higher education.

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

How much money do you need to start a college fund?

Starting a college fund can begin with any amount, even as little as $25. The key is to start early and be consistent. Regular contributions, no matter how small, can grow significantly over time with compound interest.

What is the biggest downside to a 529 plan?

The biggest downside to a 529 plan is the penalty for non-qualified withdrawals. If funds are used for purposes other than education, you’ll face a 10% penalty and pay taxes on the earnings. This can be a significant drawback if plans change.

Can you open a 529 plan without a child?

Yes, you can open a 529 plan without a child. You can name yourself or anyone else as the beneficiary. This flexibility allows you to save for your own education or for a future child, relative, or friend.

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-Q325-007

Inflation indirectly causes student loan interest rates to rise. That’s because the government tends to increase interest rates to combat rising prices, which typically raises the cost of borrowing.

Student loan interest rates did in fact rise when the Federal Reserve began raising interest rates to combat inflation during the Covid-19 economic recovery. The fixed interest rate on newly disbursed federal student loans for undergraduates went from 2.75% in July 2020 to 6.93% for the 2025-26 academic year.

The fixed interest rate on newly disbursed federal student loans is largely determined by the high yield of the final 10-year Treasury note auction held each year in May. Bond yields are typically higher when interest rates go up.

High inflation is bad news for people seeking new student loans and those with variable interest rate loans, though people with fixed-rate loans won’t see their rates go up.

What Exactly Is Inflation?

Inflation — the rising cost of everyday items — is an important economic factor to everyone from investors to policymakers to borrowers. The reason it matters to borrowers is that inflation can lead to higher interest rates on every kind of debt, including student loans.

Put simply, inflation means that the price of bread will be higher tomorrow than it is today and that here is Consumer Price Index (CPI) growth. So lenders may increase their interest rates during times of high inflation, given that borrowers will be paying the money back when those dollars will buy less. That’s one reason inflation and many interest rates have typically risen or fallen in step with each other.

The Federal Reserve is another reason. The country’s central bank plays a major role in managing the economy, especially with factors like interest rates and inflation.

The Fed began its rate-hiking campaign in March 2022 to combat high inflation and continued raising rates into 2023. Increases to the federal funds rate have prompted commercial banks to raise the price of consumer loans and other financial products, including private student loans. In 2024, as inflation cooled, the Fed began lowering rates.

What Does Inflation Mean for Student Loans?

To someone with student loan debt, inflation may not always be bad news. That’s because price inflation may influence wage inflation.

Inflation typically drives up the price of everything, including wages. As a result, some borrowers are paying back certain fixed-rate loans, for example, with dollars that have less value than the ones they borrowed.

There are exceptions. If a borrower took out a variable rate private student loan, it’s likely that inflation will lead to higher interest rates, which will translate into higher interest rates that the borrower has to pay. But if the borrower has a fixed-rate private student loan and their salary keeps up with the pace of inflation, then inflation can be helpful.

With the Federal Reserve holding steady on interest rates as of June 2025 to help keep inflation down, but the possibility that there may be a rate change later in the year, it’s worth checking to see whether your private student loan has a fixed or variable rate.

As a quick primer, fixed-rate loans have the same interest rate from when borrowers take out the loan to when they pay it off. Variable-rate loans change the interest they charge, which is influenced by Federal Reserve rate changes.

All federal student loans disbursed since July 2006 have fixed interest rates. Meanwhile, banks and other private lenders may offer fixed-rate and variable-rate private student loans.

When Does Refinancing Make Sense?

Student loan refinancing may be right for you if you qualify for a lower interest rate. The first step is to check the interest rates on your existing student loans against the rates offered by other lenders. If they offer a better rate, then it may be possible to pay off that student loan debt faster or reduce your monthly payments with refinancing.

A student loan refinancing calculator may come in handy as you weigh your options.

Some lenders refinance both federal student loans and private student loans. However, if you choose to refinance federal student loans with a private lender, you will give up federal benefits and protections like federal income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).

If you qualify for a lower interest rate, student loan refinancing may reduce your borrowing costs. Refinancing for a longer term, however, may increase your total interest costs.

The Takeaway

Borrowers with variable-rate student loans may see their borrowing costs go up during times of rising inflation. Whether your student loans have a fixed or variable interest rate, the impact of consumer price inflation across the economy may impact your ability to make ends meet.

If you find student loan refinancing is right for you, SoFi can help. SoFi refinances federal student loans, parent PLUS loans, and private student loans with no origination or prepayment fees.

FAQ

How does inflation affect student loans?

Inflation affects student loans because the government typically raises interest rates in an attempt to help tame rising inflation. That, in turn, raises the cost of borrowing money — including for student loans. The interest rate on federal student loans has climbed from 3.73% in 2021 to 6.93% for the 2025-26 academic year.

How does inflation affect interest rates on loans?

When inflation rises, the cost of goods and services rises as well. Because borrowers are then repaying their loans with dollars that buy less, lenders may increase their interest rates on loans. In addition, the Federal Reserve typically raises the federal funds rate to help tame rising inflation, which can lead to an increase in interest rates for loans.

Why is my student loan interest rate going up?

Federal student loan interest rates are determined by federal law. On July 1 each year, the fixed interest rate for each type of loan resets. The interest rate is determined based on the high yield of 10-year Treasury notes plus a fixed interest rate increase. The interest rate on federal student loans are fixed, so they will remain the same over the life of your loan.

With private student loans, lenders set the interest rates and they may raise them if inflation is rising. Lenders typically offer a range of rates, and the rate a borrower gets generally depends on their credit history.

Photo credit: iStock/MicroStockHub

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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.