It’s no secret that college is pricey these days. However, there are colleges that will pay you to attend. Some of these schools cover the full cost of attendance, others waive tuition fees, and some offer substantial scholarships to a large number of students each year.
If you’re looking for a college that pays you to attend, read on for our list of colleges that help students afford their higher education goals.
• Some colleges offer full-ride scholarships that cover tuition, fees, and room and board, effectively paying students to attend without out-of-pocket expenses.
• Certain colleges, particularly smaller institutions, offer financial incentives or stipends to attract talented students.
• Online colleges may also offer tuition assistance to those who qualify and are accepted into the program.
• Students can pay for college with merit-based scholarships, need-based grants, federal student loans, and private student loans.
• Other tuition-free college options include military service incentives and employee benefit programs.
What It Means for a College to Pay You
Many students struggle to figure out how to pay for college. Luckily, there are colleges that are sympathetic to how challenging it is to afford the cost of higher education.
There’s no specific formula that colleges follow to cover the cost of attendance for students. While some colleges cover the entire cost of attendance, others may choose just to cover some of the more substantial costs, such as tuition. Online colleges can cover tuition while also helping students save money by living at home with their parents.
Paying for college with no savings — or even with savings — can be difficult. You’ll need to do some digging to find a college that offers the program you’re looking for, is in the right location, and makes attendance affordable. To help you kickstart your research, these are some colleges that take part or all of the financial strain off students hoping to earn a degree.
Curtis Institute of Music
If you’re musically inclined, you’ll appreciate that all students at the Curtis Institute of Music qualify for merit-based, full-tuition scholarships. Located in Philadelphia, Pennsylvania, this is a tricky school to get into — it has only a 4% acceptance rate — but those who get in will enjoy a 4:3 student-to-faculty ratio.
Mizzou University of Missouri
If you’re an undergraduate with Pell Grant eligibility and have an interest in attending the University of Missouri, home to the world’s first school of journalism, you may be able to attend tuition-free. During the 2023-24 academic year alone, the University of Missouri spent $207 million on scholarships and other forms of gift aid.
Deep Springs College
Deep Springs College is a two-year liberal arts college near Big Pine, California. Each student offered admission receives a full scholarship, valued at over $50,000, that covers both the cost of tuition and room and board.
Davidson College
If you earn the Belk Scholarship as a Davidson College attendee, it fully covers tuition, fees, housing, and meals, along with stipends for exploring opportunities on and off campus. Thanks to the John M. Belk Endowment, 32 Belk Scholars are enrolled, with eight new students chosen each year. Davidson College is located in Davidson, North Carolina, just outside of Charlotte.
Since 1892, all Berea College students have paid $0 in tuition. In addition to saving on tuition, during the fall 2025 semester, 85% of incoming students attended at no cost, with Berea covering tuition, housing, meals, and fees. The catch? You need to demonstrate strong academic potential to earn acceptance to Berea College. Students need a minimum ACT score of 19 and must rank in the top three-fifths of their high school class.
Online Colleges That Will Pay You to Attend
While many students are eager to attend college in person to enjoy all that campus life has to offer, some prefer the convenience of online college. The good news is there are online colleges that pay you to attend — some of which also offer in-person learning opportunities.
Before you commit to all the expenses that come with a dorm room, check out these colleges that pay you to attend online. Who doesn’t love a college with free tuition and classes you can attend in your pajamas?
Barclay College
If you want to live in a dorm but are struggling to afford the costs of both tuition and room and board, Barclay College may be the right fit for you. If you choose to live on campus full-time at Barclay College, located in Haviland, Kansas, you qualify for a $20,000 scholarship that balances out the cost of the tuition. Barclay College also offers scholarship and grant opportunities for its online students, including a $600-per-semester scholarship for full-time students, so you don’t necessarily have to live on campus to benefit from Barclay’s financial aid opportunities.
University of the People
University of the People advertises its school as the “world’s first tuition-free accredited, 100% online university.” Its tuition-free model makes earning a college degree more affordable, but you will need to budget for some minimal fees. However, you may qualify for a scholarship to cover those costs.
Before going to college, you need to do some serious research on how you will pay for it. One way to avoid taking on high-interest private student loans at any school is to apply for financial aid packages (both need-based and merit-based).
Need-Based Aid
If you can demonstrate financial need, you may qualify for need-based aid such as grants. College grants don’t need to be paid back. So unlike a loan, you can enjoy the money completely free of charge and can use it to pay for school.
Merit-Based Scholarships
Unlike grants, scholarships aren’t typically based on need but are merit-based instead. Time to get organized and start applying for scholarships. Like grants, you don’t need to pay scholarship money back.
Tuition-Free College Options
If you’re looking to attend college for free, joining the military can be a great way to give back to your country while also avoiding taking on student loan debt. Some employers also cover the cost of employee education.
Military Service Incentives
Each branch of the military provides college scholarships to qualified students, covering tuition, books, and fees, along with offering stipends. In exchange for the scholarship, students commit to serving in the military. After graduating, they begin their careers as commissioned officers.
The military also offers various programs to help veterans pay for college. The Post-9/11 GI Bill covers tuition, housing, and supplies, while the Montgomery GI Bill and Tuition Assistance programs offer additional funding. Some programs also support dependents, making higher education accessible for veterans and their families.
If you work for a large company, you may be surprised by the education benefits that are available, such as tuition assistance programs. Why would an employer be willing to pay for your degree? Companies offer tuition assistance because college courses help employees gain valuable general and specialized skills, such as communication and data analysis, that increase their market value and earning potential. Although this investment can be costly for employers, it allows workers to obtain degrees or credentials that benefit both the employee and the company by improving job performance and career prospects.
The Takeaway
When searching for the right college, money matters. Between tuition, room and board, transportation, and books and supplies, attending college can be expensive. It can take quite a bit of research and effort to find the perfect fit, but there are colleges out there that do their best to make attending more affordable. Between tuition-free programs, grants, and scholarships, there are ways you can avoid taking on too much debt as you earn a college degree.
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.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
What are the requirements to receive pay at college?
A variety of colleges — both in-person and online — pay students to study. You can contact the admissions and financial aid offices at the schools you apply for to learn more about how you can receive financial support.
Are there tax implications for pay from colleges?
If you earn a scholarship or fellowship to pay for college, you won’t have to worry about paying taxes on that money as long as you meet two criteria. You must be a candidate for a degree at an eligible educational institution and use those funds to pay qualified education expenses.
Are there limits on how much colleges will pay?
Yes, there are limits on how much colleges will pay through financial aid. Federal student loans, grants, and scholarships have annual and lifetime caps. Colleges may also limit institutional aid based on financial need or merit. Students may need to seek additional private loans or funding sources.
About the author
Jacqueline DeMarco
Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.
photocredits: iStock/ferrantraite
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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
There are so many upsides to investing in your education — the personal enrichment and possibility of a bright and fruitful future being the most obvious. But, there are also some potential downsides that are hard to ignore, one of the main ones being the debt you may accrue.
If you’re a student loan borrower, you’ve probably noticed that your loans have a language all their own. Getting a grasp on terms such as interest rate vs. annual percentage rate (APR), subsidized vs. unsubsidized loans, and fixed vs. variable interest rates can help you make more informed, confident decisions.
Instead of enrolling in “Student Loan Language 101,” you can use our quick reference guide to find some answers without information overload. Borrowing money can have long-term financial consequences, so it’s important to fully understand the fees and interest rates that will affect the amount of money you owe.
• Understanding the specific vocabulary used in student borrowing is important for making informed financial decisions and managing educational debt effectively.
• Key concepts, such as interest rates, subsidized vs. unsubsidized borrowing, and repayment terms can impact the total amount owed.
• Understanding how interest accrues — and when it can be capitalized — can help borrowers estimate a student loan’s total cost.
• Federal borrowing options often offer lower interest rates and borrower protections, such as income-driven repayment plans and deferment, which are not typically available with private lenders.
• Knowing the differences between grants, scholarships, and various types of borrowing can help students prioritize sources of educational funding that do not require repayment.
Common Student Loan Terminology
Here are a few of the most important terms to understand before you take out a private or federal student loan.
Academic Year
An academic year is one complete school year at the same school. If you transfer, it is considered two half-years at different schools.
Accrued Interest
Accrued interest is the amount of interest that has accumulated on a loan since your last payment. You can keep private or federal student loan accrued interest in check by making your payments on time each month. However, after a period of missed or reduced payments, accrued interest may be “capitalized,” which essentially means you have to pay interest on the interest.
Adjusted Gross Income
Adjusted gross income (AGI) is an individual’s gross income, less any payroll deductions or adjustments. Income includes wages, salary, any interest or dividends you may earn, and any other sources of income. You can find your AGI on your federal income tax returns.
Aggregate Loan Limit
The aggregate loan limit is the maximum amount of federal student loan debt a borrower can have when graduating from school. The aggregate loan limits vary depending on whether you are a dependent or an independent student.
Amortization refers to the amount of loan principal and interest you pay off incrementally over your loan term. Each payment is a fixed amount that contributes to both interest and principal. Early in the life of the loan, the majority of each payment goes toward interest. But over time, as you pay down your loan balance, the ratio shifts, and most of the payment goes toward the principal.
Annual Percentage Rate
APR is the annual rate that is charged for borrowing, expressed as an annual percentage. APR is a standardized calculation that allows you to make a fairer comparison of different loans. Consider the difference between interest vs. APR — APR reflects the cost of any fees charged on the loan, in addition to the basic interest rate. Generally speaking, the lower your APR, the less you’ll spend on interest over the life of the loan.
Annual Loan Limit
The yearly borrowing limit set for federal student loans.
Automated Clearing House
An electronic funds transfer is sent through the Automated Clearing House (ACH) system. The ACH is an electronic funds transfer system that helps your loan payment transfer directly from your bank account to your lender or loan servicer each month.
The benefits of ACH are two-fold — not only can automatic payments keep you from forgetting to pay your bill, but many lenders also offer interest rate discounts for enrolling in an ACH program.
Award Letter
An award letter is sent from your school and details the types and amounts of financial aid you are eligible to receive. This will include information on grants, scholarships, federal student loans, and work-study. You will receive an award letter for each year you are in school and apply for financial aid.
Award Year
The academic year that financial aid is applied to.
Borrower
The borrower is the person who took out a loan. In doing so, they agreed to repay the loan.
Campus-Based Aid
Some financial aid programs are administered by specific financial institutions, such as the federal work-study program. Generally, schools receive a certain amount of campus-based aid annually from the federal government. The schools are then able to award these funds to students who demonstrate financial need.
This refers to the cancellation of a borrower’s requirement to repay all or a portion of their federal or private student loans. Loan forgiveness and discharge are two other types of loan cancellation.
Capitalization
Capitalization is when unpaid interest is added to the principal value of the private or federal student loan. This generally occurs after a period of nonpayment, such as forbearance. Moving forward, the interest will be calculated based on this new amount.
Capitalized Interest
Accrued interest is added to your loan’s principal balance, typically after a period of nonpayment, such as forbearance. When the interest is tacked onto your principal balance, your interest is now calculated on that new amount.
Most federal and private student loans begin accruing interest as soon as you borrow them. While you are often not responsible for repaying your student loans while you are in school or during a grace period or forbearance, interest will still accrue during these periods. At the end of said period, the interest is then capitalized, or added to the principal of the loan.
When interest is capitalized, it increases your loan’s principal. Since interest is charged as a percent of principal, the more often interest is capitalized, the more total interest you’ll pay. This is a good reason to use forbearance only in emergency situations and end the forbearance period as quickly as possible.
Cosigner
A cosigner is a third party, such as a parent, who contractually agrees to accept equal responsibility in repaying your loan(s). A federal or private student loan cosigner, also known as an endorser, can be valuable if your credit score or financial history is not sufficient to allow you to borrow on your own.
With a cosigner, you are still responsible for paying back the loan, but the cosigner must step in if you are unable to make payments. A co-borrower applies for the loan with you and is equally responsible for paying back the loan according to the loan terms on a month-to-month basis.
Consolidation (Through the Direct Loan Consolidation Program)
Private or federal student loan consolidation is the act of combining two or more loans into one loan with a single interest rate and term. The resulting interest rate is a weighted average of the original loan rates — rounded up to the nearest one-eighth of a percentage point.
Only certain federal loans are eligible for the Direct Consolidation Program. Consolidating can make your life simpler with one monthly bill, but it may not actually save you any money. You may be able to reduce your monthly payments by increasing the loan term, but this means you’ll pay more interest over the life of the loan.
Consolidation (Through a Private Lender)
Consolidation is the act of combining two or more loans into one single loan with a single interest rate and term. When you consolidate loans with a private lender, you do so through the act of refinancing, so you’re given a new (hopefully lower) interest rate or lower payments with a longer term.
By refinancing, you may be able to lower your monthly payments or shorten your payment term. Keep in mind that you may pay more interest over the life of the loan if you refinance with an extended term. And federal student loans come with a host of benefits and protections that are forfeited should you refinance.
Cost of attendance is the estimated total cost for attending a college based on the cost of tuition, room and board, books, supplies, transportation, loan fees, and miscellaneous expenses. Schools are required to publish the cost of attendance.
Credit Report
Credit reports detail an individual’s bill payment history, loans, and other financial information. These reports are used by lenders to evaluate your creditworthiness.
Default
Default is the failure to repay a loan according to the terms agreed to in the promissory note. Defaulting on your private or federal student loans can have serious consequences, such as additional fees, wage garnishment, and a significant negative impact on your credit. It’s always better to talk to your lender about potential hardship repayment options, such as deferment or forbearance, before defaulting on a loan.
Deferment
Deferment is the temporary postponement of loan repayment, during which time you may not be responsible for paying interest that accrues (on certain types of loans). Federal student loan deferment can be useful if you think you’ll be in a better place to pay your loans at a later date. However, deferment is usually only available for certain federal loans. To potentially cut down on interest, it may be wise to weigh your deferment options.
Delinquency
When you miss a student loan payment, the loan becomes delinquent. The loan will be considered delinquent until a payment is made on the loan. If the loan remains in delinquency for a specified period of time (which varies for federal vs. private student loans), it may enter default.
Direct Loan
The Direct Loan Program is administered via the U.S. Department of Education. There are four main types of direct loans, including, Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.
Direct PLUS Loan
Direct PLUS Loans are types of federal loans that are made to graduate or professional student borrowers or to the parents of undergraduate students. Direct PLUS Loans made to parents may be referred to as Parent PLUS Loans.
Note that, starting July 1, 2026, no new Direct PLUS loans will be offered to graduate and professional students. Any borrowers who received a Direct PLUS loan before that date can continue borrowing under the current terms through the 2028-29 academic school year.
Disbursement
When funds for a loan are paid out by the lender.
Discharge
Student loan discharge for private and federal loans occurs when you are no longer required to make payments on your loans. Typically, discharge occurs when there are extenuating circumstances, such as the borrower has experienced a total and permanent disability or the school at which you received your loans has closed.
Discretionary Income
Discretionary income is the money remaining after you pay for necessary expenses. An individual’s discretionary income is used to help determine their loan payments on an income-driven repayment plan.
Enrollment Status
Determined by the school you attend, your enrollment status is a reflection of where you stand with the school. It includes full-time, half-time, withdrawn, and graduated.
Expected Family Contribution
The expected family contribution was an estimation of the amount of money a student and their family were expected to pay out of pocket toward tuition and other college expenses. It is now known as the Student Aid Index (SAI).
Federal Work-Study
A type of financial aid, students who demonstrate financial need may qualify for the Federal Work-Study program, where they work part-time to earn funds to help pay for college expenses.
Financial Aid
Financial aid is funds to help pay for college. Financial aid includes grants, scholarships, work-study, and federal student loans.
Financial Aid Package
An overview of the types of financial aid you are eligible to receive for college, financial aid packages provide information on all types of federal financial aid and college-specific aid, such as scholarships, grants, work-study, and federal student loans.
Fixed interest rates remain the same for the life of the loan. The interest rate does not fluctuate.
Forbearance
Forbearance is the temporary postponement of loan repayment, during which time interest typically continues to accrue on all types of federal student loans. If your student loan is in forbearance, you can either pay off the interest as it accrues or allow it to accrue, and it will be capitalized at the end of your forbearance.
Use forbearance wisely, because interest that accrues during the forbearance period is typically capitalized, making your loan more expensive. If you can afford to make even small payments during forbearance, it can help keep interest costs down.
You will usually have to apply for student loan forbearance with your loan holder and will sometimes be required to provide documentation proving you meet the criteria for forbearance. For a loan to be eligible for forbearance, there must be some unexpected temporary financial difficulty.
Forgiveness
Loan forgiveness is another situation in which you are no longer responsible for repaying all or a portion of your federal student loans. Public Service Loan Forgiveness and Teacher Loan Forgiveness are two types of loan forgiveness programs in which your loans are forgiven after meeting specific requirements, such as working in a qualifying job and making qualifying loan payments.
Free Application for Federal Student Aid (FAFSA)
This is the application students use to apply for all types of federal student aid, including federal loans, work-study, grants, and scholarships. The FAFSA must be completed for each year a student wishes to apply for financial aid.
The grace period is a period of time after you graduate, leave school, or drop below half-time during which you’re not required to make payments on certain loans. Some loans continue to accumulate interest during the grace period, and that interest is typically capitalized, making your loan more expensive.
Grad PLUS Loans
Another term to refer to a Direct PLUS loan, specifically one borrowed by a graduate or professional student.
Graduate or Professional Student
A student who is pursuing educational opportunities beyond a bachelor’s degree. Graduate and professional programs include master’s and doctoral programs.
Graduated Repayment Plan
A type of repayment plan available for federal student loan borrowers. On this repayment plan, loan payments begin low and increase every two years. This plan may make sense for borrowers who expect their income to increase over time.
Students who are enrolled at least half-time in school are eligible to defer their federal student loans. This type of deferment is generally automatic for federal student loans. Note that unless you have a subsidized student loan, interest will continue to accrue during in-school deferment.
Interest
Interest is the cost of borrowing money. It is money paid to the lender and is calculated as a percentage of the unpaid principal.
Interest Deduction
A tax deduction that allows you to deduct the student loan interest you paid on a qualified student loan for the tax year. Interest paid on both private and federal student loans qualifies for the student loan interest deduction.
Lender
The financial institution that lends funds to an individual borrower.
Loan Period
A loan period is the academic year for which a private or federal student loan is requested.
Loan Servicer
A loan servicer is a company your lender may partner with to administer your loan and collect payments. For questions about your private or federal student loan payments or administrative details such as account information, you should contact your student loan servicer.
Origination Fee
Some lenders charge an origination fee for processing a loan application, or in lieu of upfront interest. To minimize incremental costs on your loan, look for lenders that offer no or low fees.
Part-Time Enrollment
Students who are enrolled in school less than full-time are generally considered part-time students. The number of credit hours required for part-time enrollment is determined by your school.
Pell Grant
The Pell Grant is awarded by the federal government to undergraduate students who demonstrate exceptional financial need.
Perkins Loan
Perkins Loans were a type of federal loan available to undergraduate and graduate students who demonstrated exceptional financial need. The Perkins Loan program ended in 2017.
PLUS Loans
Another way to describe Direct PLUS Loans, PLUS Loans are federal loans available for graduate and professional students or the parents of undergraduate students.
Prepayment
Prepayment is paying off the loan early or making more than the minimum payment. All education loans, including private and federal loans, allow for penalty-free prepayment, which means you can pay more than the monthly minimum or make extra payments without incurring a fee. The faster you pay off your loan, the less you’ll spend on interest.
Prime Rate
The Prime rate is the interest rate that commercial banks charge their most creditworthy customers. The basis of the prime rate is the federal funds overnight rate. The federal funds overnight rate is the interest rate that banks use when lending to each other. The prime rate can be used as a benchmark for interest rates on other types of lending.
Principal
The Principal is the original loan amount you borrowed. For example, if you take out one $100,000 loan for grad school, that loan’s principal is $100,000.
Private Student Loan
A private student loan is lent by a private financial institution, such as a bank, credit union, or online lender. These loans can be used to pay for college and educational expenses, but are not a part of the Federal Direct Loan Program. These loans don’t offer the same borrower protections available to federal student loans — like income-driven repayment plans or deferment options.
Promissory Note
A promissory note is a contract that says you’ll repay a loan under certain agreed-upon terms. This document legally controls your borrowing arrangement, so read it carefully. If you don’t fully understand the agreement, contact your lender before you sign.
Repayment
Repayment is repaying a loan plus interest.
Repayment Period
The agreed-upon term in which loan repayment will take place.
The Secured Overnight Financing Rate (SOFR) is an interest rate benchmark that is commonly used by banks and other lenders to set interest rates for loans. The SOFR is the cost of borrowing money overnight collateralized by Treasury securities.
Stafford Loans
Stafford loans were a type of federal student loan made under the Federal Family Education Loan Program. Beginning in 2010, all federal student loans are now loaned directly through the William D. Ford Federal Direct Loan Program.
Standard Repayment Plan
The Standard Repayment Plan is one of the repayment plans available for federal student loan borrowers. This repayment plan consists of fixed payments made over a 10-year period.
Student Loan Refinancing
Student loan refinancing is using a new loan from a private lender to pay off existing federal or private student loans. This allows you to secure a new (ideally lower) interest rate or adjust your loan terms. You may pay more interest over the life of the loan if you refinance with an extended term.
Subsidized Loan
A Direct Subsidized Loan is a type of federal loan available to undergraduate students where the government covers the interest that accrues while the student is enrolled at least half-time, during the grace period, and other qualifying periods of deferment.
Term
The Term is the expected amount of time the loan will be in repayment. Generally speaking, a longer term will mean lower monthly payments but higher interest over the life of the loan, while a shorter term will mean the opposite. Loan terms vary by lender, and if you have a federal loan, you are usually able to select your federal student loan repayment plan.
Tuition
The cost of classes and instruction.
Undergraduate Student
A college student who is enrolled in a course of study, typically lasting four years, with the goal of receiving a bachelor’s degree.
Unsubsidized Loan
A Direct Unsubsidized Loan is a type of federal loan available to undergraduate or graduate students. The major difference between subsidized vs. unsubsidized loans is that the interest on unsubsidized loans is not paid for by the federal government.
Variable Interest Rate
Unlike a fixed interest rate, a variable interest rate fluctuates over the life of a loan. Changes in interest rates are tied to a prevailing interest rate.
The Takeaway
Understanding key terms is essential for navigating student borrowing. Prioritizing sources of financial aid that don’t need to be repaid, such as scholarships and grants, can be helpful. But these don’t always meet a student’s financial needs.
Federal student loans have low interest rates and, for the most part, don’t require a credit check. Plus, they have borrower protections in place, such as income-driven repayment plans and deferment options, which make them the first choice for most students looking to borrow money to pay for college.
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.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
What are common student loan terms?
Common federal and private student loan terms include the principal (the original borrowed amount), interest rate (the cost of borrowing), and repayment term (the length of time to repay the loan). Other terms involve grace periods (time before payments start after graduation), deferment, forbearance (temporary relief from payments), and fixed or variable interest rates.
What are the most important loan terms to understand?
It’s important to understand terms associated with borrowing because you’ll be required to repay the loan. Understand the interest rate and any fees associated with the loan.
What does APR mean in relation to student loans?
APR is a reflection of the interest rate on the loan, in addition to any other fees associated with borrowing. APR helps make it easier to compare loans from different lenders.
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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Real estate investments make money through appreciation and rental income. Real estate can diversify a portfolio and act as a hedge against inflation, since landlords can pass rising costs to tenants. But the down payment on multifamily investment properties? At least 20%, or 25% to get a better rate.
It’s true that eligible borrowers may use a 0% down U.S. Department of Veterans Affairs (VA) loan for a property with up to four units as long as they live there. However, those loans serve a relatively small number of people and are considered residential financing. Properties with more than four units are considered commercial.
So how can a cash-poor but curiosity-rich person tap the potential of multifamily properties? By not footing the entire bill themselves.
Key Points
• Real estate investments offer potential income through appreciation and rental income, providing a hedge against inflation.
• Eligible borrowers can use a 0% down VA loan for properties with up to four units.
• Various financing strategies enable purchasing multifamily properties with little to no personal money upfront.
• Options such as finding a co-borrower, securing hard money loans, or obtaining seller financing can facilitate the acquisition.
• Indirect investment methods include crowdfunding and real estate investment trusts (REITs), allowing participation without direct landlord responsibilities.
Can You Buy a Multifamily Property With No Money?
When you buy real estate, you typically have two options: Buy with cash or finance your purchase with a mortgage loan.
There are various types of mortgages. If you take out a home loan, you’ll likely need to pay a portion of the purchase price in cash in the form of a down payment. The minimum down payment you make will depend on the type of mortgage you choose — the average down payment on a house is well under 20% — and it will help determine what terms and interest rates lenders will offer you.
This money needs to come from somewhere, but it doesn’t necessarily need to come from your own savings account. When investors buy multifamily properties with “no money down,” they use little or no personal money to cover the upfront costs.
If you don’t have much cash of your own, there are several ways that you can fund the purchase of a multifamily investment property.
💡 Quick Tip: Jumbo mortgage loans are the answer for borrowers who need to borrow more than the conforming loan limit values set by the Federal Housing Finance Agency ($832,750 in most places, and up to $1,249,125 in high-cost areas). If you have your eye on a pricier property, a jumbo loan could be a good solution.
6 Ways to Pay for a Multifamily Property
Find a Co-Borrower
If you don’t have the money to front the costs of a property yourself, you can consider partnering with a family member, friend, or business partner. They may have the money to cover the down payment, while you pull your weight by researching properties or managing them.
When you co-borrow with someone, you’ll each be responsible for the monthly mortgage payments. You’ll also share profits in the form of rents or capital gains if you sell the property.
Give an Equity Share
You may give an equity investor a share in the property to cover the down payment. Say a multifamily property costs $750,000 and you need a 20% down payment. An equity investor could give you $150,000 in exchange for 20% of the monthly rental income and 20% of the profit when the property is sold.
Borrow From a Hard Money Lender
Hard money loans are offered by private lenders or investors, not banks. The mortgage underwriting process tends to be less strict than that of traditional mortgages. Depending on the property you want to buy, you may not need a down payment.
These loans (also called bridge loans) have high interest rates and short terms — typically one to three years — with interest-only payments the norm. For this reason, they may be used by investors looking to flip the property in short order, allowing them to make a profit and pay off the loan quickly.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
Questions? Call (888)-541-0398.
House Hack
House hacking refers to leveraging property you already own to generate income. For example, you might rent out an in-law suite or list your property on Airbnb.
Another option: You could rent out your primary residence and move into one of the units in a multifamily property you buy. This way, you’d probably generate more income than if you had rented out the unit to a tenant.
Finally, you could hop on the accessory dwelling unit (ADU) bandwagon if you own a single-family home. ADUs can take the form of a converted garage, an attached or detached unit, or an interior conversion. The rental income can be sizable. To fund a new ADU, homeowners may tap home equity, consider cash-out refinancing, or even take out a personal loan.
Seek Seller Financing
If you don’t have the cash for a down payment on a property, you may be able to forgo financing from a lending institution and get help from the seller instead.
With owner financing, there are no minimum down payment requirements. Several types of seller financing arrangements exist:
• All-inclusive mortgage: The seller extends credit for the entire purchase price of the home, less any down payment.
• Junior mortgage: The buyer finances a portion of the sales price through a lending institution, while the seller finances the difference.
• Land contracts: The buyer and seller share ownership until the buyer makes the final payment on the property and receives the deed.
• Lease purchase: The buyer leases the property from the seller for a set period of time, after which the owner agrees to sell the property at previously agreed-upon terms. Lease payments may count toward the purchase price.
• Assumable mortgage: A buyer may be able to take over a seller’s mortgage if the lender approves and the buyer qualifies. Federal Housing Administration (FHA), VA, and USDA loans are assumable mortgages.
Invest Indirectly
Not everyone wants to become a landlord in order to add real estate to their portfolio. Luckily, they can invest indirectly in REITs and through crowdfunding sites, for example.
The Jumpstart Our Business Startups Act of 2013 allows real estate investors to pool their money through online real estate crowdfunding platforms to buy multifamily and other types of properties. The platforms give average investors access to real estate options previously available only to the very wealthy.
REITs are companies that own various types of real estate, including apartment buildings. Investors can buy shares on the open market, and the company passes along the profits generated by rent. To qualify as a REIT, the company must pass along at least 90% of its taxable income to shareholders each year.
As far as investment opportunities go, REITs can be a good choice for passive-income investors.
💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.
The Takeaway
Buying a multifamily property with no money down is possible if you take roads less traveled, such as leveraging other people’s money. And if you have the means to make a down payment on a property, your first step is to research possible home mortgage loans.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
FAQ
Can I buy a multifamily home with an FHA loan?
It is possible to buy a property with up to four units with a standard FHA-backed mortgage if the buyer plans to live in one of the units for at least a year. The FHA considers homes with up to four units to be single-family housing. The down payment could be as low as 3.5%. There are loan limits.
A rarer product, an FHA multifamily loan, can be used to purchase a property with five or more units. The down payment is higher, and you’ll pay mortgage insurance premiums upfront and annually for any FHA loan.
Is a multifamily property considered a commercial property?
Properties with five or more units are generally considered commercial real estate. Commercial real estate loans usually have shorter terms, higher interest rates, and different down payment requirements than residential loans. They almost always include a prepayment penalty.
How can I buy a property without a down payment?
You can borrow the full purchase price of a property without having to put down a deposit of your own, or you could find a partner to put up the money. This could be a family member, a friend, a business partner, or even an equity investor.
Photo credit: iStock/jsmith
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.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Reserve Officers’ Training Corps (ROTC) offers college scholarships to students who commit to serving in the U.S. Armed Forces after graduation. ROTC college scholarships can cover significant college costs, including tuition and other fees. While in college, you get to experience campus life just like any other student. However, once you graduate, you step into a role in the U.S. Armed Forces.
Keep reading to learn about ROTC eligibility requirements, service commitments, and how to apply.
• ROTC scholarships prepare students to become military officers after college.
• They cover tuition, fees, and room and board. They also provide stipends and book allowances.
• Recipients must serve 3-10 years in the military after graduation.
• ROTC provides leadership training, field exercises, and military experience.
• Junior Reserve Officers’ Training Corps (JROTC) provides scholarships and leadership experience and helps students qualify for ROTC.
What Are ROTC College Scholarships?
In 1916, Congress passed the National Defense Act to strengthen the military reserve and National Guard. This led to the creation of ROTC scholarships, encouraging more students to join and introducing many young people to military opportunities.
Today, the ROTC program stands as a unique educational path, blending military science courses with traditional college classes and preparing students to become officers in the U.S. military after graduation. ROTC scholarships may cover college costs, such as room and board, fees, and tuition, but they aren’t guaranteed upon joining. Like other scholarships, they’re competitive and require students to earn them.
If you get an ROTC college scholarship, you’re committing to serve in the military after college — for at least 3-10 years, depending on the program. Some candidates might even have the chance to serve part-time in the U.S. Army Reserve or Army National Guard while kick-starting their civilian careers.
ROTC offers scholarships lasting 2-4 years, depending on your remaining time until graduation. Eligible students can receive up to full coverage for tuition, room and board, and fees.
Types of ROTC Scholarships
Here’s a breakdown of the scholarship options and the qualifications you need to meet.
Army ROTC Scholarships
The Army ROTC Scholarship program offers financial support for students who want to become U.S. Army, Army Reserve, or Army National Guard officers after earning their bachelor’s degree. Scholarships are available for two, three, or four years, depending on how much time you have left in school.
These scholarships cover full tuition and provide additional financial support. You’ll receive up to $420 monthly during the school year to help with living expenses and $1,200 annually for books.
You’re not required to commit to serving as an Army officer until your junior year. When you sign a contract, you can serve part-time in the Army Reserve for eight years or full-time on active duty for 3-4 years, depending on whether you receive an ROTC scholarship.
Army ROTC also offers a nursing program for candidates considering a nursing degree.
Navy and Marine Corps Scholarships
The Navy ROTC (NROTC) college scholarship program is designed to help you become a strong leader and successful Navy or Marine Corps officer. With this program, you’ll have the chance to participate in three summer training cruises with Navy surface ships, aviation squadrons, and submarines. You can use your scholarship money to cover tuition and fees or room and board, and you’ll receive a monthly stipend starting at $250, which increases each year.
The program allows you to explore a variety of career paths, including nursing, aviation, surface warfare, submarine warfare, and special warfare, all while enjoying a traditional college experience.
For those on an NROTC scholarship, the service obligations are pretty straightforward. Navy midshipmen must serve at least five years of active duty, with additional requirements for certain roles. The Marine Corps and Navy Nurse Corps must serve at least four years on active duty.
Air Force ROTC Scholarships
The Air Force ROTC (AFROTC) program can cover full college tuition and authorized fees at any qualifying institution, setting you up to become a leader in the U.S. Air Force or Space Force. Depending on your scholarship, you may also receive a monthly stipend for living expenses and a $900 annual book stipend. The monthly stipend ranges from $300-$500 during the academic year.
If you’re a high school scholarship recipient, your travel expenses from home to college are covered, with reimbursement typically arriving about 30 days after school starts. However, the scholarship doesn’t cover room and board.
After completing the AFROTC program and earning your degree, you’ll be commissioned as a second lieutenant in the Air Force or Space Force. Service commitments vary by career — most officers serve four years, pilots serve 10, and combat system officers and air battle managers serve six years.
JROTC Scholarships
If you’re interested in starting a military career early, consider joining the JROTC while still in high school. Eligible cadets can begin earning school-specific scholarships as early as 9th grade.
Some schools offer up to $6,000 per year for JROTC participants, with additional funds of up to $3,375 annually for cadets in leadership roles. It’s a great way to kick-start your path toward a military education and leadership experience.
Many cadets may use the JROTC program as a springboard to qualify for the ROTC scholarship. However, it’s not a requirement.
Eligibility Requirements and Service Commitment
To qualify for an ROTC college scholarship, you need to:
• Be a U.S. citizen
• Be at least 17 years old
• Have a high school diploma or equivalent
Each ROTC program has specific qualifications, requirements, and service commitments. Here’s an overview of what each scholarship program requires.
ROTC Program
Army ROTC
Navy and Marine Corps ROTC
Air Force ROTC
Eligibility Requirements
Pass the Army Combat Fitness Test (ACFT)
Complete one Army ROTC elective and lab each semester
Pass Navy ROTC Applicant Fitness Assessment (AFA)
Pass the Physical Fitness Assessment
Complete Physical Fitness Test within your first semester of college
Service Commitment
Complete 3-8 years depending on program
Complete 4-5 years depending on program
Complete 4-10 years depending on the program
Academic requirements
GPA of at least 2.5
Must take the SAT or ACT
GPA of at least 2.5
SAT scores of 550 EBRW, 540 Math, combined 1100, or the minimum ACT scores of 21 Math, 22 English (44 combined)
GPA of at least 2.5
SAT score of 1310 or ACT score of 28 or higher
How to Apply for ROTC
Once you confirm your eligibility, you can begin the application process with a few straightforward steps:
• Create an account to get started with your application.
• Complete the online application.
• Submit required materials and documentation, such as your work history, extracurricular activities or achievements, planned college major, and a few scholarship application essays.
If you receive a scholarship, you might have to undergo a medical exam and a test to make sure you meet ROTC physical standards.
For all the details and to ensure you’ve got everything you need, it’s best to visit the official websites of the Army ROTC, AFROTC, and NROTC programs. That’s also where you’ll find the online application.
Pros of ROTC
Here are some of the benefits of qualifying for an ROTC scholarship and completing the program.
• Leadership Development: As an ROTC cadet, you’ll learn essential leadership skills, such as setting examples, counseling, strategizing, and motivating others. These leadership skills are valuable in many career paths, including corporate management roles.
• Military Training: ROTC gives you hands-on training in leadership, military skills, and exciting activities. You’ll learn in classrooms and out in the field while managing your college life.
• Financial Aid: Whether you’re getting ready for college or already there, ROTC scholarships provide financial help. This support lets you pursue your education and career goals without taking on a lot of student debt.
Cons of ROTC
Here are some drawbacks worth considering before you apply for an ROTC program.
• Scholarship Commitment: When you accept an ROTC scholarship, you’re committing to serve in the U.S. Armed Forces for a specified number of years after graduation. If you can’t fulfill this commitment, you might have to repay the scholarship funds you received, which could put a strain on your finances.
• Service Obligation: ROTC prepares you to become an officer in the Armed Forces, so you’ll have a service commitment of 4-10 years, depending on your scholarship. This could affect your plans after college and limit your flexibility in choosing a career path.
• Extra Academic Requirements: In addition to regular classes, ROTC programs often include extra coursework, labs, and leadership training. These can be demanding and require good time management to balance your studies and personal life.
Alternative Options
If you don’t qualify for an ROTC scholarship, there are other options available.
GI Bill
The GI Bill provides financial well-being programs for military members, veterans, and their families. Eligible individuals can receive financial support covering college tuition, fees, housing, books, supplies, and relocation costs for rural residents.
To find out the benefits you may qualify for, you can use the GI Bill Comparison Tool from the U.S. Department of Veterans Affairs. It helps you estimate what you qualify for based on your military background, the type of school you plan to attend, and whether you’ll be studying in-person or online. It’s a helpful resource for understanding the range of support available to you.
Student Loans
The U.S. Department of Education administers various types of federal student loans. For undergraduates, subsidized loans are based on financial need, with the Department covering interest during school and certain periods afterward. Unsubsidized loans are also available, where interest accrues from the beginning.
If federal loans don’t cover your needs, look into private student loans from banks, credit unions, or online lenders. These loans aren’t need-based and may require a credit check or cosigner. Compare rates and terms carefully before deciding.
If you’ve been saving for college, now’s the time to make those savings count. You might have a 529 savings plan in your name, which is a special account designed for college expenses and comes with tax benefits. When you contribute money to this plan, it gets invested, and you can withdraw it later without paying taxes as long as it’s used for education-related costs. It’s a smart way to make your college savings work for you.
The Takeaway
Qualifying for an ROTC scholarship can help with college costs, tuition, and more. Just keep in mind that it also means you’re signing up for military service after college, which could be 3-10 years, depending on which program you choose. It’s a significant commitment, but it comes with valuable leadership training and sets you up for a career as a military officer.
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.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
Can I join ROTC after starting college?
Yes, undergraduate students with at least three years remaining in their studies can typically join the Reserve Officers’ Training Corps (ROTC) program. This includes second-semester freshmen, sophomores, and other eligible students.
What GPA is required for an ROTC college scholarship?
The GPA requirement depends on the type of Reserve Officers’ Training Corps (ROTC) scholarship you are applying for. You must generally maintain a GPA of 2.5 for most of the college scholarships.
How many years of service are required after ROTC?
The service requirements depend on the Reserve Officers’ Training Corps (ROTC) program you join. The requirement usually ranges from 3-10 years.
About the author
Ashley Kilroy
Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.
Photo credit: iStock/SDI Productions
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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Scholarships for African American and Black students can help them cover a portion or all of their college costs and give them more opportunities. Unlike student loans, scholarships allow students to focus on their goals without worrying about repaying the money.
Keep reading to find out what the best scholarships for African American students are, get tips for applying, and learn about different types of scholarships available.
• Scholarships for African American students help increase college access by providing financial assistance, making higher education more affordable and achievable.
• Scholarships are available based on various factors, including academic achievement, financial need, leadership, community service, and specific career interests.
• Many scholarships prioritize students attending historically Black colleges and universities (HBCUs) to promote and preserve the unique legacy of these institutions.
• The two main types of scholarships available for African American students are need-based and merit-based scholarships.
• Scholarships are free money given to students, reducing the amount of federal and private student loans they may need to take out.
Eligibility Requirements
Before you start applying for African American scholarships, it’s important to understand the qualifications you need to receive this gift aid. Every scholarship has its own specific requirements, but here are a few common ones you might see:
• Strong academic performance
• Involvement in community service
• U.S. citizenship or residency status
• Demonstrated leadership skills
• Enrollment at an accredited college or university
With so many scholarship opportunities available for African American students, there are plenty of resources to help you find ones you may qualify for. Here are some great places to start your search:
• The U.S. Department of Labor’s scholarship search tool
• Professional associations tied to your career interests
• Nonprofit organizations, neighborhood associations, small businesses, and clubs
Types of Scholarships Available for African Americans
There are many types of scholarships available to African American students, ranging from those based on athletic achievements to extracurricular activities. However, the two most common types are need-based and merit-based scholarships.
Need-Based Scholarships
Need-based scholarships help students who can’t cover the full cost of their education. To qualify, students typically need to show that their family’s income is below a certain amount.
Scholarship committees review factors such as family income, assets, and household size to figure out how much financial help a student needs. They might ask for proof of income or Free Application for Federal Student Aid (FAFSA) details. This process ensures that scholarships go to those who need them most, making education more affordable. You can explore more about how to complete the FAFSA step by step to prepare better.
Merit-Based Scholarships
Merit-based scholarships, commonly called academic scholarships, are offered to students who perform exceptionally well in academics or possess distinct skills, often determined by grade point average (GPA) or talent. Schools, federal agencies, and local organizations often offer these scholarships to high-achieving students.
Scholarships for African American Students
Here are some scholarships for African American students to consider:
The Sphinx Competition
Scholarship amount: $3,000 to $50,000
Application deadline: October 20, 2026, for 2027
The Sphinx Competition is an annual national event in Detroit, MI, for Black and Latino string musicians, offering career opportunities and addressing barriers in these communities. Finalists get the chance to perform with the Sphinx Symphony Orchestra and compete for over $100,000 in prizes, including the top Robert Frederick Smith Prize. To apply for this scholarship, you need to submit a video audition, a biography, and a headshot.
Scholarship for Diversity in Media
Scholarship amount: $10,000
Application deadline: January 15, 2026 (closed)
The Chronicle of Higher Education’s Scholarship for Diversity in Media is for students from HBCUs and minority serving institutions who are interested in a media career. Besides the $10,000 award, winners also have the chance to join the Chronicle’s Summer Editorial Reporting Internship.
Jackie Robinson Foundation Scholarship
Scholarship amount: Up to $35,000
Application deadline: January 7, 2026 (closed)
The Jackie Robinson Foundation Scholarship honors the first African American to play in Major League Baseball by offering four-year scholarships and support services to motivated college students who need financial help. This scholarship aims to ensure award winners succeed in school and grow as leaders.
Diversity Advancement Scholarship
Scholarship amount: Up to $20,000
Application deadline: January 10, 2026 (closed)
The Diversity Advancement Scholarship is geared toward students striving to make a big difference in architecture through creativity, hard work, and support from others. To apply, you need to write an essay explaining how you think architecture can help improve communities and why this makes you excited to become an architect. You must also be planning to attend a National Architectural Accrediting Board-accredited architecture program.
Minority Natural Resource Scholarship
Scholarship amount: $1,000
Application deadline: January 31, 2026 (closed)
The Conservation Foundation’s Minority Natural Resource Scholarship offers $1,000 to minority students interested in careers like wildlife, forestry, and water conservation. It aims to increase diversity in Missouri’s natural resource agencies. To be eligible, you must be enrolled in a Missouri college and majoring in a natural resource field.
The NAACP x Society Awards Scholarship
Scholarship amount: $1,000 and $2,000
Application deadline: Spring 2026
The NAACP x Society Awards Scholarship is for students who want to pursue careers in fields such as film, theater, fashion, photography, graphic design, dance, music, journalism, or mass communications. To qualify, you must be a National Association for the Advancement of Colored People member and have a GPA of 3.0 or higher.
Frank M. Snowden Jr. Undergraduate Scholarships
Scholarship amount: $4,500
Application deadline: February 23, 2026
The Society for Classical Studies is offering scholarships for summer 2026 to undergraduate students from groups that have seen underrepresentation in the past. These scholarships offer award money to students studying classics or classical archaeology through summer programs and language training. To apply, you must be enrolled in a degree program.
Applying for scholarships can feel overwhelming, but with a bit of preparation and organization, it becomes much more manageable. The key is to start early and stay organized. Additionally, a guide to unclaimed scholarships and grants can help you explore all your options. Here are some simple tips to help you through the process and increase your chances of success.
• Check who can apply: Each scholarship has different eligibility requirements. Make sure you meet all the criteria before you apply.
• Explore all your options: There are many scholarships out there, including scholarships for current college students, and the more research you do, the more opportunities you’ll find. In fact, nearly $100 million in scholarships goes unclaimed each year because of a lack of applicants.
• Start applying early: It’s never too early to start applying. Some scholarships are even available as early as grade school. Also, understanding how grades affect financial aid can help you prepare in advance to get your desired scholarship.
• Take the time to prepare: Many scholarship applications require essays, transcripts, letters of recommendation, and FAFSA® information. It’s best to gather these materials ahead of time and understand how to fill out the FAFSA form so you don’t rush at the last minute and risk missing an important deadline.
• Get (and stay) organized: Try sorting your applications by deadline so you can focus on the ones with upcoming due dates. Also, double-check that your essays meet the requirements if they’re part of the application. Scholarship workshops are available to help your application stand out.
The Takeaway
If you need extra money to pay for college as an African American student, there are many scholarships that you can apply for. Even if you’re still in high school, it’s a good idea to start looking for scholarships now. Remember that the earlier you begin, the more chances you’ll have to find the right scholarships to help with your college expenses.
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.
.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
FAQ
Are there scholarships for specific African American groups?
Yes, there are scholarships for different African American groups. For example, the Diversity Advancement Scholarship is ideal for students who want to become architects, while the Conservation Foundation’s Minority Natural Resource Scholarship provides aid to students interested in environmental conservation.
Do I need to have a certain GPA for a scholarship?
Some scholarships require you to have a certain GPA, but there are others that give money to students who require financial help, are active in their community, or belong to a specific group. There are also sweepstakes scholarships you can enter simply by filling out a few basic details about yourself.
Can I apply for multiple scholarships?
Yes, you can apply for as many scholarships as you like. The more you apply for, the better your chances of receiving money to help pay for your college education. Just make sure you check the eligibility requirements of each scholarship and take your time with each application.
About the author
Ashley Kilroy
Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.
photocredits: iStock/dragana991
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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.
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.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
