mother with adult son

What Parents Should Know About Student Loans

Has your soon-to-be college student chosen the school they’d like to attend in the fall? Or, are they just starting to think about the application process? Either way, it’s never too early to research ways to pay for college.

Student loans, federal and private, are one common method that students and their families use to cover the cost of higher education. Typically, students are the ones who take out these loans (and are responsible for repaying them). However, there are also student loans, both federal and private, available for parents.

Also keep in mind that if your child takes out a private student loan, you will likely need to act as a cosigner, which means you will be responsible for repayment if your child is unable to make payments.

No matter who acts as borrower, it’s important for parents to be in the loop when it comes to student loans. Here’s what you need to know.

Not All Loans Are Created Equally

When it comes to student loans, there are two main options:

•   Federal loans (funded by the federal government)

•   Private student loans (funded by private lenders)

Federal Student Loans

Federal student loans are provided by the U.S. Department of Education and come in several forms:

•   Direct Subsidized Loans These are for undergraduate students and are awarded based on financial need. The government pays the interest on these loans while the student is in school and for six months after they graduate (known as the grace period).

•   Direct Unsubsidized Loans These are available to undergraduates, graduate students, and professional students and are not awarded based on need. The borrower is responsible for paying all interest that accrues on the loan.

•   Direct PLUS Loans These are for graduate and professional students and parents of dependent undergraduates. They are not based on financial need and a credit check is required.

•   Direct Consolidation Loans This option allows you to combine all your federal loans into one loan payment under a single loan servicer.

All federal loans come with fixed interest rates, which means the rate won’t change over the life of the loan. Interest rates are set by Congress each year on July 1st. For most students, federal loan repayment starts after the post-graduation grace period.

To apply for federal student loans, you need to submit the Free Application for Federal Student Aid (FAFSA).


💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

Private Student Loans

Private student loans are available through banks, credit unions, and online lenders. Many private student loans mirror the terms and repayment periods of federal student loans, but not always. Differences between federal versus private loans include:

•   Credit checks Most federal student loans don’t require a credit check (except PLUS loans) but it’s required for private student loans. To qualify for a private student loan, you’ll need to meet the lender’s credit and other eligibility requirements.

•   Repayment start date Some lenders might allow you to defer making payments until six months after you graduate, while others may require you to begin repayment while you’re still in school.

•   Interest rates Federal student loans have fixed interest rates that don’t change over the life of the loan; private student loans offer fixed or variable interest rates.

•   Repayment terms Federal loans have long repayment terms — from 10 to 30 years, depending on your plan. Private student loans also vary in term length, but might not be as long.

•   Loan forgiveness Some federal student loans offer forgiveness options for certain career paths, or after you’ve made a certain number of payments on an income-driven repayment plan. Private student loans aren’t required to offer this option to borrowers.

How Parents Can Help

If your student has tapped all available financial aid, including federal student loans, you might look into student loans for parents.

The federal government offers Direct PLUS Loans for parents. They have higher interest rates and fees and qualify for fewer repayment plans than federal direct subsidized and unsubsidized loans for students. The interest rate for federal direct PLUS loans is 8.05% for the 2023-24 academic year. There is also an origination fee of 4.228%, which is deducted from each loan disbursement.

To get a PLUS loan, you can’t have an adverse credit history (there may be exceptions to this rule if you meet other eligibility requirements) and you must complete the FAFSA with your child.

It’s important to note that a parent PLUS Loan will ultimately be your responsibility to repay. The only way to transfer parent loans is to have your child refinance the loan with a private lender in their name.

You also have the option of getting a parent student loan through a private lender, such as a bank or credit union.

If you have solid finances and expect to be able to work the entirety of your loan term, a private student loan may be a better deal. Private student loans often offer lower interest rates and typically don’t have origination fees. However, they generally don’t offer as many protections should you lose your income and have trouble repaying the loan.

You Can Use Loan Money Only for Certain Things

Typically, student loans are paid out directly to the school. The school will then apply your loan money to tuition, fees, and room and board (if your student lives on campus), and give any remainder to your student. They can then use the surplus funds but only for education-related expenses. This includes textbooks, computers/software, transportation to and from school, housing, meal plans or groceries, and housing supplies (e.g., sheets, towels, etc.).

Students can’t, however, use the proceeds of a student loan to pay for entertainment, going out to dinner, takeout meals, clothing, or vacations.

Federal Loans Offer More Forgiveness Options

Some student loan repayment plans, like income-driven plans, give graduates the opportunity to have their loans forgiven if they aren’t fully repaid at the end of the repayment period, which may be 20 or 25 years.

Depending on the field of work your student may enter, there may be other forgiveness options. For example, under Public Service Loan Forgiveness (PSLF), borrowers can have their loans forgiven after 120 monthly loan payments. To qualify, you must work for an eligible non-profit organization or government agency full-time while making those qualifying payments.

With the Teacher Loan Forgiveness Program, borrowers can qualify for up to $17,500 in loan forgiveness if they teach full-time for five full and consecutive academic years in a low-income elementary or secondary school or educational agency.

There are far fewer student loan forgiveness programs available for private student loans than federal loans. However, some private lenders offer loan modification or repayment assistance programs.


💡 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.

The Takeaway

You and your student will generally only want to look into student loans after you’ve tapped more cost-effective forms of funding, such as scholarships, fellowships, and grants — since that’s money you don’t have to pay back.

After that, you might consider federal student loans. You don’t need a credit history to qualify, and they come with low interest rates and programs, like income-driven repayment plans and loan forgiveness, that private loans don’t offer. If you still have gaps in funding, you might next look at private student loans.

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.


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 Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.


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.

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.

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.

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Is Credit Monitoring Worth It?

It’s no secret that identity theft has been an issue for consumers. In 2022, the Federal Trade Commission (FTC) received 1.1 million identity theft reports, and a similar number of complaints are expected in 2023. The financial toll of online fraud, which includes identity theft, can be substantial. The FTC estimates that it cost Americans $8.8 billion in 2022, with median losses around $650.

One tool that can help detect issues early on is credit monitoring. This service tracks your accounts and alerts you to any changes or suspicious activity, giving you time to start the process of undoing any damage that’s been done.

If you were involved in a data breach, you may receive credit monitoring at no cost. Otherwise, you can pay a nominal fee for the coverage — usually around $10 to $30 a month — or do most of the legwork yourself for free.

Why Is It Important to Monitor Your Credit?

Your credit history can have an impact on your ability to make big financial decisions, like purchasing a home or buying a new (or new-to-you) car.

If you have a spotless report, you could get better interest rates on new loans. On the other hand, if your score is what’s considered poor, you could be denied access to certain financial products altogether.

Even if you’re diligent about abiding by best credit practices, if someone has unauthorized use of your information, they can quickly sink your hard-earned credit score. That’s when credit monitoring comes in handy. If you see an alert corresponding to a change you didn’t make, you’ll know something’s up — and you can move quickly to repair any issues that might impact your creditworthiness.

Generally speaking, it’s a good idea to check your credit reports at least once a year. If you’re making a major purchase, consider monitor your credit for at least three months beforehand to ensure everything is in order.


💡 Quick Tip: Your credit score updates every 30-45 days. Free credit monitoring can help you learn about your score’s normal ups and downs — and when a dip is cause for concern.

Pros vs Cons of Credit Monitoring Services

Credit monitoring can be a useful tool, but there are some drawbacks you’ll want to consider. Here are pros and cons of credit monitoring services.

Pros of Credit Monitoring Services

Many credit monitoring services come with extra features that might help justify their cost. Common examples include:

•   Alerts when there are changes to your personal information, significant balance changes, account closures, or hard inquiries

•   Access to credit reports and scores from one or more of the three major credit bureaus

•   Dark web scans, which checks if your personal information has been compromised

•   Identity theft insurance, which can cover any costs you may incur as you’re dealing with identity theft

•   Identity recovery services, which can be useful as you repair any damage from identity theft

Cons of Credit Monitoring Service

Even the best credit monitoring service has its limits. Here are some potential drawbacks to consider:

•   Cost of a subscription

•   Can’t provide 100% protection from all fraud or identity theft

•   Can’t fix inaccuracies on your credit report (you’ll need to handle that)

•   Coverage may not include monitoring from all three major credit bureaus: Experian, TransUnion, and Equifax

•   You may not be alerted if someone uses your name to collect a tax refund or claim benefits from Medicare, Medicaid, Social Security, or unemployment insurance

How to Monitor Credit for Free

There are times when paying for a credit monitoring service makes sense. For example, you want more robust identity monitoring, prefer a program that monitors reports from the credit bureaus, or need help resolving disputes. It may also be a good move if you suspect your information has been exposed.

But it’s possible to do the job yourself (and avoid paying a subscription fee). Here’s how:

Request a Free Credit Report

By law, you’re entitled to a free credit report every 12 months from each of the three credit bureaus. Visit annualcreditreport.com to get started. While you can ask for the reports at any time, spacing out your requests every few months allows you to keep an eye on your accounts throughout the year.

Find Out If You’re Already Getting Coverage

Some accounts include some level of complimentary credit monitoring, so it’s worth a call to your bank or credit card company to find out if you qualify.

Put a Freeze on Your Credit Reports

There are instances when freezing your credit report might be a good move, such as when you believe your data has been breached or if your Social Security number or other sensitive information was stolen or made public.

A credit freeze allows only a limited number of entities to view your credit reports. This means the credit bureaus can’t provide your personal amount to new lenders, credit card companies, landlords, or hiring managers. While this freezes the renting, hiring, and lending process, it also prevents thieves from stealing your identity and opening a new account in your name.

There’s no charge to freeze or unfreeze your credit, and your credit score won’t be affected.

Request a Fraud Alert

If you think you may be the victim of fraud or identity theft, you may want to consider placing a fraud alert on your credit report. Once a fraud alert is placed, you’ll be asked to provide your phone number, which creditors will use to verify your identity whenever an application for credit is made.

There’s no charge to make the request with the credit bureaus, and the alert is active for one year. It has no impact on your credit score.


💡 Quick Tip: What is credit monitoring good for? For one, maintaining a high credit score can translate to lower interest rates on loans and credit card offers with more perks.

The Takeaway

Credit monitoring services can act like a watchdog over your accounts, flagging suspicious activity or changes so you can move quickly to correct inaccuracies or do damage control. You can take a DIY approach to keeping track of your accounts, which can include requesting a free credit report every year from the three credit bureaus. But if you’ve been the victim of identity theft or fraud — or need more robust monitoring — you may want to consider paying for a credit monitoring service.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi helps you stay on top of your finances.


SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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 .

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.

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9 Top Online MBA Programs

9 Top Online MBA Programs

If you’re interested in earning a master’s degree in business administration, an MBA program that is partially or totally online might suit your needs. These programs can give you the flexibility you need (in terms of the time you have available for your education, your geographic location, and your finances) to get the graduate diploma you’re seeking.

An MBA can unlock a fascinating and lucrative career path, but not everyone can turn up on a campus full-time for a couple of years. So in this guide, you’ll explore the top online MBA programs available. Equipped with this information, you can then move ahead with your plans, accommodating your particular set of needs and wants.

What Is an MBA Program?

MBA programs offer master’s degree level courses in a variety of business-related content, including economics, finance, marketing, accounting, entrepreneurship, and statistics. Many provide hands-on learning through capstones or client projects, and some also offer the opportunity to study abroad.

There are many types of MBA programs, just as there are many undergrad majors. Some details:

•   There are in-person one- or two-year programs as well as partially and fully online MBA programs.

•   In terms of e-learning opportunities, some programs are 100% online, while others require you to attend classes on the weekend once a month or so. Your willingness and ability to travel, if necessary, should be a part of which format you choose for your MBA studies.

•   There are also executive MBA programs, which are geared toward working professionals with a bit more professional experience than the average undergrad.

You can pay for an MBA program in several ways: paying out of pocket, taking out a student loan for your MBA, securing scholarships, or a combination of these.


💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

What Are the Benefits of an MBA Program?

You may wonder whether getting an MBA is worth the investment. Generally, studying topics like management, marketing, or finance can help make you a more knowledgeable employee, which may help you secure a job or a promotion in one of these fields.

And having a master’s degree can potentially make you more appealing to employers, helping you stand out from the sea of applicants. The degree may also help increase earning potential, which can be a good thing since you may have to finance your degree.

The top online MBA programs may also present networking opportunities, whether virtual or in-person, that can connect you with others in your field as well as employers looking to hire MBAs from your university.

Choosing the Best Online MBA Program for You

The program you ultimately choose will depend on factors like:

•   How much do you want to spend?

•   Are you willing to be on campus for classes occasionally?

•   What concentration are you interested in?

•   How quickly do you want to complete your coursework?

Each of the MBA programs on this list is ranked highly, but the choice will be personal based on your own criteria. Spend time speaking with admissions reps at each of the schools you’re interested in, as well as talking to grads to understand their experience.

Recommended: Which Debt to Pay Off First: Student Loan or Credit Card?

Top Online MBA Programs to Consider

What defines an MBA program as being one of the top online business schools will vary depending on your criteria. To give you a place to start, here are some of the top online MBA programs in several categories, culled from online reviews, ratings, and other lists.

Top Affordable Online MBA Programs

Online MBA programs can get fairly expensive. Consider an affordable MBA program with a smaller price tag, such as these three highly rated options.

Louisiana Tech University

This university, located near Ruston, Louisiana, has one of the best rated affordable MBA programs in the country, and is accredited by the Association to Advance Collegiate Schools of Business (AACSB). Courses can be taken wholly online, and the degree requires 30 credits. Its MBA program has been ranked highly by U.S. News & World Report.

Total tuition: $14,250

University of Texas Permian Basin

Another award-winning online MBA program comes from the University of Texas Permian Basin. This program is accredited, affordable, and ranks highly for services and technologies, as well as being a good option for military veterans. Between 30 and 36 credits are typically required.

Total tuition: $11,729.70 -14,075.64

Fitchburg State University

This Massachusetts-based program requires 30 credits and presents the same learning as in-person classes in the online studies, which are recorded and archived. The business administration-focused course doesn’t require graduate exam results with the application.

Total tuition: $13,080

Top Executive Online MBA Programs

If you’ve been in the workforce for several years and are looking to move up in your career, an executive online MBA program could be a good fit, as it’s typically flexible in how and when you do your coursework so it doesn’t interfere with your job. That said, these programs can be significant investments of time and money, with some programs approaching or topping the $200K mark. So research your financing options for graduate school as you determine your next steps. What follows are affordable options.

Washington State University

WSU’s Carson College of Business offers an EMBA that can be completed in as little as 16 months. This program offers perks like an option for international field study in a seven-day overseas program, an annual Leadership Conference, and professional coaching.

Total tuition: $57,162

Texas Southern University

Texas Southern University offers an online executive MBA program; it can be completed in 24 months. It has received recognition both for its reasonable costs and its academic excellence. Since it’s online, you can fit it in around your professional and personal obligations. While the degree can allow for growth in a variety of fields, there can be an emphasis on the energy sector.

Total tuition: $36,000

Southeastern Louisiana University

If you’re interested in combining online executive MBA curriculum with in-person learning, Southeastern Louisiana University offers that balance in its 17-month program. The program is 40% online and 60% face-to-face, with classes on Saturdays only. The program offers three options: general MBA with accounting and financing electives, general MBA with business electives, or MBA with a healthcare concentration. The MBA program has small classes, and is accredited by the AACSB.

Total tuition: $20,676

Top Overall Online MBA Programs

Maybe you just completed your undergraduate degree and want to move straight into your MBA program, and you’re looking for the cream of the crop. Here are some of the top online MBA programs for you to consider.

Yes, they may be more expensive than other options, but exploring scholarships, grants, and loans can help you afford this degree.

Arizona State University

Arizona State University’s W.P. Carey School of Business offers several different MBA programs, including full-time, online, executive, professional flex, and fast-track. The program offers diverse concentrations, including business data analytics, entrepreneurship, finance, and international business. The online MBA has been rated a top-ten program by U.S. News & World Reports.

Total tuition: $66,266

Pennsylvania State World Campus

PennState’s World Campus’ Smeal College of Business offers flexibility in how you build your personal MBA program. There are 20 possible concentrations with the program, including advanced accounting, international affairs, and strategic leadership. There is a three-day residency to kick off the program in person, as well as other sessions throughout.

Total tuition: $59,904

Rochester Institute of Technology

Rochester Institute of Technology’s Saunders College of Business offers a highly-recognized Executive Master of Business Administration degree. It’s designed to accelerate the careers of high-performing professionals. The program, which covers the same learning as the on-campus courses, has been recognized as a top-ten option by U.S. News & World Report.

Total tuition: $78,000

The Takeaway

Online MBA programs can be one way for students to gain skills desirable for a future career in business. They can offer more flexibility than traditional in-person MBA programs because lectures can generally be viewed on the student’s schedule.

But even paying for an online program can be costly. Some students may turn to student loans to finance all or a portion of the cost of tuition.

Some students may find that later refinancing their loans can help make their education costs more manageable. However, it’s worth noting that when you refinance federal loans with private loans, you forfeit federal benefits and protections. In addition, if you refinance for an extended term, you may pay more in interest over the life of the loan. For these reasons, it’s wise to think carefully to uncover the best fit for your debt repayment.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.


Photo credit: iStock/Miljan Živković

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.


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.

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College Visit Checklist for Parents

College visits can be an important part of the school selection process, as parents and high schoolers tour campuses of interest. These visits provide a glimpse of the campus grounds, dorms, classrooms, and more, which can be vital info when deciding whether a school is a good fit or not. Also, the tours are typically led by current students who have insights about what life at the college is like.

But what exactly should you, as a parent, look for? What questions should you ask? The checklist that follows can help you get the most out of the experience.

How to Visit Colleges on Your Lists

Sometimes, students visit college campuses to decide whether or not to apply there. In other cases, they already believe that a particular college is a perfect match for their major and they want to investigate further.

Schedule Visits Strategically

Perhaps your child has applied to — or is interested in applying to — eight colleges. At a basic level, you’ll want to make sure you have enough time to visit a good number of them. How far they are located from your home and from each other will help to dictate how much time these visits will take. As part of this scheduling, you might ask yourself these questions:

•   Which of these campuses are most important to visit? Prioritize appropriately.

•   Which of these colleges are located near (or relatively close to) one another?

•   Do I want to have an informal visit, or do I want to be part of an official open house? If the latter, check as early as possible to see when these events are being held. Are there scheduling conflicts?

•   How much time will each visit take?

•   How can I space out these visits so we can be efficient without rushing through them?

•   What is most important to see and do during each visit?

Pro tip: Once you know that you’ll be visiting a college, you can review its website and social media pages to gather intelligence ahead of time and gain key context.

When Do Virtual College Visits Make Sense?

Perhaps, as just one example, there is a college that is more challenging to visit than others on your list. Maybe it’s a significant distance from your home, or perhaps you have scheduling conflicts or financial pressure that means an in-person visit isn’t looking realistic. In that case, consider going on a virtual tour.

By doing so, you may discover that this college isn’t as appealing as you’d originally thought (which might cause it to drop on your priority list) or it may make you realize that, yes, you need to make a physical tour happen.

One option is to check the college admissions website. You may be surprised to see how many have interactive video tours available.

As a related resource, YouTube has plenty of videos if you search for such terms as “college tours,” “college tour TV,” and other similar words.

Another idea for gaining information without setting foot on campus: You can use the Rate My Professors tool, too, to find information about who teaches at a particular school, noting that ratings are subjective and can be used, as just one example, by students who aren’t happy with grades received.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

What to Bring to a College Visit

During college visits, you’ll likely be flooded with information and visual impressions, plus with thoughts, ideas, conversations, and more. So, it makes sense to bring something to help you capture all of this information to review later, as needed.

In this quest, your smartphone can be a real asset. You can use it to take pictures of intriguing places on campus or to remind you to ask questions about it. Take videos in the same way and/or record explanations given by college officials.

And, wonderful as technological devices are, don’t forget to bring old-fashioned pen and paper. You might also want to bring along a college visit planner, one where you can list crucial dates and deadlines.

Depending upon how long you’ll stay, make sure you bring enough comfortable, weather-appropriate clothing — and, perhaps most important of all, comfy shoes! You may be doing a whole lot of walking.

Also consider if you will need an umbrella. Or a warmer coat than what you would wear at home. Do you need gloves? Or will it be sunny and warm, requiring sunglasses and sunscreen? You’ll want to have these things on hand to make the visit as comfortable as possible. After all, you’re there to give your full attention to the tour, not your cold hands or soaked shoes.

Pro tip: Depending on your relationship with your child, you may want to take separate tours. You kid can go on one tour group and absorb information without your commentary swaying their opinion or without being embarrassed if you ask a lot of questions. Then you can compare notes after you’ve each seen the campus.

Key Questions to Ask

At some point during the tour, you’ll almost certainly be shown student housing options. Now is the time to ask about the range of dorm choices, how many students live on campus, what percentage of students live on campus versus off-campus, what apartment options exist for, say, juniors and seniors — and any other questions you or your child have about housing.

Other questions to consider:

•   How safe is this campus and the surrounding area?

•   What kind of security do you have?

•   What activities are available for students?

•   Who is allowed to have a car?

•   Where can they park?

•   What transportation options are available for students without a car?

What other questions to ask on a college tour? You can also ask about academics, ranging from sizes of classes, the use of teaching assistants, how much homework is assigned and how much time it typically takes to complete assignments, and more. How easy is it for students to get the classes they need? Is there an honors program? What kind of tutoring services are available?

You might also be curious about the following:

•   What college internship opportunities are available? How easy are they to obtain?

•   How many students study abroad? What opportunities are available?

•   What career services do you offer?

Recommended: What Can You Use Student Loans For?

Financial Issues to Explore

Of course, paying for college is often a key concern. This is an ideal time to get information about typical financial aid packages offered at each college. You might ask some questions of your tour guide or attend a financial aid session to inquire about:

•   What financial aid package can a typical freshman expect to receive at the college?

•   What mix of scholarships, grants, and loans can be expected, on average?

•   What work-study opportunities exist and how easy is it for a student to qualify?

•   If there is scholarship money set aside at a college for students, what are its parameters? Some, for example, may be set aside for female students or minority students.

•   What aid is available after freshman year?

•   Are enough classes offered at flexible times to help students graduate in under four years (and therefore potentially save significant sums of money)?

•   If your child doesn’t qualify for federal work-study, what other jobs are typically available on campus? Off-campus?


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Financing College

It isn’t unusual for students to need to borrow money to pay for their education. Scholarships and grants are available to help qualified students reduce college expenses and, sometimes, parents may help their children out financially.

Students can get jobs while in college and use their savings to help pay expenses, of course. But if that isn’t enough, many students typically end up borrowing money, with the two main sources being federal student loans (from the government) and private student loans (from private lenders).

To qualify for federal funding, you and your child must fill out the FAFSA®. It can be wise to explore all federal aid options before turning to private student loans.

Recommended: Guide to Parent Student Loans

Parent Student Loans With SoFi

If private loans seem to be a potential path for you, see what SoFi offers. Parents should consider their own financial situation and needs (like retirement) as they consider such options as borrowing a parent student loan.

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.


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 Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.


Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

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How to Get Tiny House Financing

Many Americans are finding tiny houses, or those that measure several hundred square feet in size, are a welcome way to live. They can be both economical and eco-friendly, and some people say they simplify life, which can bring many benefits.

If you’re curious about tiny houses or are currently contemplating one, it’s important to know that financing these dwellings may be different than securing a traditional mortgage. Here’s a guide to tiny houses and how to secure funds to buy or build one.

What Is a Tiny House?

A tiny house is often defined as a home that is between 100 and 400 square feet. In contrast, the median size of a single-family American home is currently 2,014 square feet. That’s five times bigger than the biggest tiny home. Here are some other facts to know about this kind of dwelling.

•   Owners live in their tiny homes themselves, rent them out, use them as a small vacation home or even build them as an accessory dwelling unit (ADU) on the same lot as their primary residence. Tiny homes may be on wheels, or they may sit on a fixed foundation.

•   Prefab homes can be delivered complete to the site, or there are modular homes that require some assembly on site. Those who would rather build their own house can hire an architect or draw up plans to their own specifications. There are small homes in all kinds of styles, from a classic Colonial or Victorian to a ranch style or A-frame or ultra-modern design.

•   Local zoning rules will determine whether or not a person can build or move into a tiny home. And building codes will determine things like ceiling height.

•   Tiny houses may not have good resale value since they are such a specific type of home and are often highly customized. Before buying a tiny house as an investment property, it might be wise to consult a real estate investment professional.


💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

Tiny House Pricing

In 2023, the average sales price for a single-family home was about $430,300. Tiny homes cost quite a bit less, with an average of $45,000. That price can vary up and down depending on the size of the home, materials used, and amenities (yes, some tiny homes have luxe, spa-style bathrooms, for example). The price of the building is not the only thing to consider.

Buyers of tiny homes must factor in the price of buying or leasing land on which to place the home if they don’t already own it, as well as the cost of hooking it up to utilities.

If the tiny home is on a foundation, there may be state and local property taxes to pay. If the tiny house is on wheels, though, there likely won’t be property tax assessed.

Recommended: Is Buying a House a Good Investment?

Financing the Land

If property needs to be purchased to have a place to put a tiny home, an option for financing is a land loan. There are three types of land loans: raw land loans, unimproved land loans, and improved loans.

•   Raw land loans are for land that’s completely undeveloped with no electricity, roads, or sewer access.

•   Unimproved land loans are for properties that have more access to amenities like utilities, but lack utility meters.

•   Improved land loans are for land with access to roads, water, and electricity.

The size of the down payment and the interest rate of the loan will depend on what type of loan is needed. For example, lenders may consider raw land to be a riskier option than improved land and require a bigger down payment and higher interest rates.

Mortgages for Tiny Homes

Qualifying for a home loan for a tiny home may be tricky. Some lenders may not be willing to offer first or second mortgages for tiny home financing. However, if a tiny home has a foundation and complies with local building codes, it may qualify for certain mortgages.

Tiny homes may also qualify for what is known as a “chattel mortgage,” a mortgage for moveable personal property. The tiny home acts as security for the loan, and the lender effectively becomes the owner of the tiny home until the loan is paid off and ownership is transferred back to the borrower.

This differs from traditional mortgages that are secured by a lien on the property. Because the size of the loans are typically small, chattel mortgages may have relatively short terms, though interest rates may be relatively high.

Personal Loans

A personal loan can allow individuals access to money that they can use for any personal, family, or household purpose, from paying off credit cards to an effective tiny house loan. Depending on the lender, loan amounts can range from a few thousand dollars to $100,000. When the applicant is approved for a personal loan, they’ll receive the loan amount in a lump sum and pay it back in installments with interest.

Personal loans may be secured or unsecured. Unsecured loans are not backed with any collateral, and the interest rates currently range from about 6% to 36%, depending largely on the borrower’s credit score.

Secured loans are backed by collateral, such as personal savings, a car, or another home owned by the same borrower. They typically come with a lower interest rate than their unsecured counterparts. However, it’s important to note that if a personal loan is defaulted on, the borrower’s assets could be seized by the lender to repay the debt.

Home Equity Loans

The equity someone may have built up in a home they already own can be tapped to finance a tiny home for use as a vacation home, rental property, or ADU. A home equity loan is a fixed amount of money secured by a borrower’s home.

Usually, up to 85% of the equity accumulated in a home can be borrowed, though actual loan amounts will also depend on the applicant’s income and credit history. The home equity loan is repaid with monthly payments over a fixed term. And if the borrower fails to repay, the lender can foreclose on the house.

A home equity line of credit (HELOC) may be another option to finance a tiny home. HELOCs differ from home equity loans in that the borrower doesn’t receive a single lump-sum payment from the lender.

Rather, a HELOC gives the borrower access to a line of credit that can be drawn down, paid back, and drawn down again, if need be, within a certain time period. The HELOC is secured by the borrower’s home, so as with a home equity loan if the debt is not paid, the lender can use the home as collateral.

Loans From Tiny House Builders

A tiny house builder or contractor may be able to help secure financing through unsecured loans based on an applicant’s credit score, or secured loans backed by the value of the tiny home. These tiny-house loans may have longer terms and lower starting interest rates than personal loans, but they may require a downpayment.

RV Loans

If the tiny house has wheels and is certified as an RV by the Recreational Vehicle Industry Association, an RV loan may be another option for financing. Online lenders, banks, and credit unions may all offer RV loans. In many cases, the tiny house will serve as collateral for the loan, the same way a car would serve as collateral in an automobile loan.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

If you’re in the market for a tiny house, you may need to think beyond traditional mortgages. Home equity, HELOC, and personal loans, among other options, may be available forms of financing that can set you on your way to owning the tiny house of your dreams.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.


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.


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 .

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.

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