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The number of people living paycheck to paycheck is rising, and not just among low-income workers. One-third of American families with an annual income of $100,000 or more say they are struggling to pay their bills and have no money left over for savings. Reasons for this include high housing costs, lack of financial literacy, and lifestyle creep.

So how do high earners end up living paycheck to paycheck, and what can they do to break the cycle?

What Does Living Paycheck to Paycheck Mean?

Most people expect to earn a “living wage.” The term refers to an income sufficient to afford life’s necessities, including housing, food, healthcare, and child care. That level of income does not typically allow you to save for an emergency, retirement, or other goals.

When a person lives paycheck to paycheck, they can barely pay basic bills and have nothing left over to save for a rainy day. In the event of a pricey emergency — like a big medical bill or major car repairs — low-income families are financially wiped out.

High earners have more wiggle room, as they are able to downsize their home or car and find other ways to cut back on expenses.

Understanding the Paycheck-to-Paycheck Situation

When you are living paycheck to paycheck, you cannot save. You may also go into debt and struggle to pay it down.

According to data from the World Population Review, in 2025, the state with the lowest living wage for a family of four (two working adults with two children) in the U.S. was Tennessee at $18.94 per hour ($23.71 in 2026), or $78,800 per year, before taxes, while the federal minimum wage in that same state was $7.25 per hour. Even in the District of Columbia, which had the highest minimum wage at $17.50, the living wage for an individual was $20.80 an hour or $43,258 per year, while for a family of four it was $112,551 a year.

But even households bringing in $200,000 or more say they are struggling. In fact, of those earning at least $200K, 60% report feeling like they’re in survival mode, while others have delayed paying bills or held off on medical care because it was too expensive. While they have the freedom to downsize their lifestyle, many people may not realize the precariousness of their financial situation until they’re running out of money and have locked into a mortgage and car payments they cannot afford.

Why Do Some Americans Live Paycheck to Paycheck?

The reasons why Americans live paycheck to paycheck vary. For lower-income workers, you can point to a higher cost of living and wages that have not kept up with inflation. For those with higher incomes, the issue is more about a lack of financial literacy and living beyond one’s means.

Rising Cost of Living

One reason people are spending more is that monthly expenses, such as rent, mortgage payments, food, and utilities, are constantly increasing.

Low Income

Low incomes are another reason some people live paycheck to paycheck. This is particularly the case for people earning the minimum wage or who live in areas with a high cost of living.

Poor Budgeting

Another reason some people are living paycheck to paycheck is that they lack basic financial knowledge and budgeting skills. It’s easy to overspend and accumulate credit card debt, but it’s more difficult to pay it down afterward.

💡 Quick Tip: When you have questions about what you can and can’t afford, a free budget app can show you the answer. With no guilt trip or hourly fee.

Lifestyle Creep

Also known as lifestyle inflation, lifestyle creep occurs when discretionary expenses increase while disposable income increases. In plain English: when you get a raise, the natural thing to do is treat yourself and your family to things that enhance your lifestyle, such as a fancy haircut or a weekend at a charming B&B in the countryside.

However, whether you can afford those extras is debatable. While you may be paying your credit card bill in full each month, you may not be saving or investing that money for the future or unexpected expenses.

Factors Driving Financial Insecurity for Six-Figure Earners

Because of inflation, it is increasingly hard to buy a home, car, and other nice-to-haves. However, people may still expect to be able to afford these things once they earn a certain amount. And if they have a taste for luxury items, they may struggle to maintain that standard of living and pay their bills.

It’s common for people to buy things on credit and then find that they cannot make the payments. Soon, they find themselves mired in high-interest debt.

How to Stop Living Paycheck to Paycheck

You can stop living paycheck to paycheck by living below your means rather than beyond your means. That requires earning more than you spend and saving the difference. The obvious steps are to increase your income and to live more frugally.

Once you have downsized your lifestyle, you can find relief quicker than you might think, and some changes may only be temporary. For example, you might have to work a part-time job for a short time until your debt is paid off.

Tips for Those Living Paycheck to Paycheck

Here are some changes you can make to get on the path to living below your means.

1. Create a Budget

You have to know where your money is going before you can cut back. By tracking your expenses, you can see what you’re spending and where you’re spending it. Automating your finances, such as paying bills and loan repayments, can make it much easier to stay on top of things and help you avoid late payment charges.

Once you know what you’re spending money on, you can create a budget where you subtract your non-negotiable expenses or needs, such as housing costs, utilities, food, and transportation, from your net income. Hopefully, you’ll have some money left over to allocate to savings. If not, it’s time to look at how you can make your life more affordable.

Here are a few budgeting strategies to try:

•   The line-item budgeting method

•   The 50/30/20 method

•   The envelope method

2. Cut Back on Nonessentials

Budgeting will help you find expenses that you can eliminate or reduce. Look closely at things that might seem insignificant to see if you are living beyond your means. For example, a large cold brew on your way to work every morning can add up, and eating out or spending $30 on takeout each week can add up to over $1,500 annually.

That being said, forgetting about an annual subscription or not being conscious of your spending doesn’t mean that you’re bad with money. More consequential changes might include downsizing your home, accepting a temporary roommate, or finding a part-time gig to supplement your income.

3. Pay Off Your Debt

Debt is expensive. High-interest credit card debt and buy-now-pay-later schemes can eat up your income as you struggle to pay the minimum while the interest mounts up. Consider using a personal loan to consolidate debt and reduce the interest you’re paying.

4. Save for Emergencies

If you are living paycheck to paycheck, just one unexpected expense can cause you to spiral into debt. It’s important to have enough cash on hand. Once you’ve paid off your debt, start an emergency fund so that you don’t have to rely on credit if you experience an unexpected financial emergency. If you’re wondering what percentage of your income you should save, a good rule of thumb is to have three to six months’ worth of expenses saved up.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

5. Hold Off on Big Purchases

While you are trying to reduce expenses and pay off debt, hold off on buying big-ticket items. For example, forgo an expensive vacation for a year and start saving toward next year instead. As much as you might like new furniture or a new car, try to economize for a while until you are in a better place financially.

6. Ask for a Raise

Asking for a raise is not easy, even when money is tight. However, it could be well worth it. According to Yale University, salary negotiations often lead to an increase in pay or additional benefits. You are in a particularly strong position if your skills are in demand and your employer values you.

The Takeaway

Many Americans are living paycheck to paycheck, even high earners. The reasons are linked to inflation, lifestyle expectations, and the ease with which people fall into debt. The remedy is to live below your means, and that often means making sacrifices.

If debt is a concern, temporary steps such as downsizing while you pay it off or finding additional sources of income are options. Identify where your money goes and stick to a budget to reduce unnecessary spending. Also, paying down high-interest debt and cutting back on eating out and other nonessentials can free up a significant amount of cash each month.

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.

See exactly how your money comes and goes at a glance.

FAQ

Does living paycheck to paycheck mean you’re poor?

Living paycheck to paycheck does not necessarily mean that you are poor, but it does mean that you are living beyond your means. Even high earners can find themselves in the position of living paycheck to paycheck, often due to mounting debt and lifestyle creep. People who earn $200,000 or more can also find themselves running out of money and not having enough to save.

Is living paycheck to paycheck stressful?

Living paycheck to paycheck can be extremely stressful. You may constantly worry about how you will afford to pay in the event of an emergency. It’s important to have an emergency fund to avoid using a loan or high-interest credit card to pay for something unexpected.

How many Americans are living paycheck to paycheck?

According to recent data, approximately half of Americans were living paycheck to paycheck at the end of 2025. That’s around 108 million people of working age who are struggling to make ends meet.

What percentage of low-income households live paycheck to paycheck?

Based on Bank of America internal data, 29% of low-income consumers, that’s those who earn below $50K a year, live paycheck to paycheck. However, the percentage falls only slowly as income increases.

Can high earners live paycheck to paycheck?

Yes. Many people earning $100K and over live paycheck to paycheck. Inflation, lifestyle expectations, and poor budgeting are some of the reasons high earners can’t always make ends meet.

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Photo credit: iStock/Jacob Wackerhausen

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Big life changes can bring both excitement and nerves. If you’re about to start college, it’s completely normal to feel both thrilled and anxious. Whether you are moving away from home for the first time, worried about making friends, or anxious about keeping up academically, you are not alone. Feeling nervous about college isn’t a sign of weakness. It’s actually a sign that you are invested in your future and want to succeed.

Fortunately, these seven essential strategies — covering emotional, academic, and financial wellness — can help you manage college nerves and step into your first semester with confidence.

Is It Normal to Feel Nervous About Starting College?

Yes — completely.

Starting college is one of the biggest transitions in a young adult’s life. You may be leaving your family, adjusting to a new environment, meeting new people, and taking on greater responsibility all at once. Even students who appear confident often have private worries about making friends, fitting in, handling harder coursework, managing money, and being away from home.

Nervousness is a natural response to change. Your brain is simply trying to process uncertainty. The key is not eliminating anxiety entirely — it’s learning how to manage it in a healthy, productive way.

1. Make a List and Pack Early

If you’re moving onto campus, packing can feel overwhelming. Not only are you imagining life away from home, but you may also be worried about forgetting something important.

Writing things down can give you clarity and a sense of control. You might start with a simple essentials checklist:

•  Important documents (ID, finance aid paperwork, health insurance card)

•  Dorm essentials (bedding, toiletries, laundry supplies)

•  School supplies and electronics

•  Prescriptions and medical information

•  Clothing

Many colleges provide useful packing guidelines and lists on their websites. Once you know what you need, you can start sorting through what you already have and decide what’s coming with you — and what’s staying behind.

You can also start packing clothes you won’t need in the next few weeks. For example, if it’s still warm, pack up your winter sweaters now. Getting ahead of the process can help build confidence and reduce last-minute stress.

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

2. Learn About Independent Living

For many students, college is the first time they are fully responsible for themselves. Some simple preparation can make this transition feel less intimidating and more manageable.

Before school starts, you might practice some basic life skills such as:

•  Doing your own laundry

•  Cooking simple meals

•  Scheduling appointments

•  Managing a weekly calendar

•  Tracking expenses

If you’ll be living on campus, it’s a good idea to review dorm rules and housing guidelines. If you’re living off-campus, you’ll want to read through your lease so you understand your basic responsibilities as a renter.

Independence is rarely an overnight achievement, but rather a gradual, step-by-step learning process. The more familiar these responsibilities feel before move-in day, the less overwhelming they will seem.

3. Develop Coping Skills

Even if you arrive well-prepared, college can still stir up stress, homesickness, or anxiety. That’s why it helps to develop some coping strategies even before the semester begins.

Build Healthy Routines Before School Starts

Student life often disrupts sleep, eating habits, and exercise routines. Establishing healthy patterns before you arrive on campus can help you stay on track and provide stability during transition. In the weeks or months before college, try to:

•  Establish a consistent sleep schedule

•  Get regular exercise

•  Eat balanced meals

•  Limit excessive screen time

•  Practice relaxation techniques

Simple tools like journaling, deep breathing, and short walks can lower stress levels significantly. The idea is to build habits that support your mental and physical health. When classes begin, these routines can serve as anchors in an otherwise changing environment.

Manage Academic and Social Stress

Two of the biggest sources of anxiety in college are academics and social life.

Some tools that can help keep academic stress to a minimum once classes start include:

•  Using a planner or digital calendar

•  Breaking larger assignments into smaller steps

•  Attending professor office hours

•  Joining study groups

To help tamp down social stress that can hit soon after you arrive on campus:

•  Remember that most students feel awkward at first

•  Attend orientation events

•  Introduce yourself even if it feels uncomfortable

•  Focus on quality friendships rather than popularity

You don’t need to be friends with everyone. Finding even one or two supportive people in the early weeks of college can make a huge difference.

4. Ask Questions

A lot of anxiety comes from the unknown. Generally, the more information you have, the less scary things tend to feel. A good policy is that any time you don’t understand something — ask. Colleges provide many support systems, such as:

•  Resident advisors (RAs)

•  Academic advisors

•  Professors and teaching assistants

•  Financial aid offices

•  Counseling centers

Asking questions shows maturity and helps prevent small uncertainties from growing into large worries.

5. Focus on the Positives

Yes, college will likely challenge you. Classes may be more demanding than high school, and there will certainly be an adjustment period. But there are also incredible opportunities ahead.

College is a chance to meet people from different backgrounds, discover new interests, get involved in clubs and organizations, grow more independent, and learn more about yourself. Rather than dwell on the things that are making you nervous, think about what aspects of going to college that excite you. This might include:

•  A major you are passionate about

•  A campus activity you want to try

•  A city or area you want to explore

•  The independence you are gaining

Write down at least three things you are looking forward to. Revisit that list whenever anxiety surfaces.

Practical Ways to Prepare Emotionally for College

Preparation is not only about packing and paperwork. Emotional readiness is equally important.

Build a Support System

Before heading to campus, identify the individuals who will form your support network, such as family, mentors, and close friends. Establishing clear communication expectations — whether it’s a weekly call or a daily text — can significantly ease the transition and mitigate homesickness.

Once you arrive, focus on expanding that network within your new environment. You can foster these connections by:

•  Joining student organizations.

•  Attending campus-wide events.

•  Engaging fully in orientation activities.

Ultimately, the more integrated you become in the campus community, the more you will feel at home.

Prepare for Academic Expectations

College coursework is often significantly more rigorous than high school. Professors generally expect students to demonstrate greater independence, manage their time effectively, and operate with fewer reminders.

To prepare effectively before the semester begins:

•  Review major requirements: Analyze your specific degree path and required courses.

•  Identify academic resources: Locate campus tutoring centers and academic support services.

•  Understand grading policies: Familiarize yourself with how different departments and professors evaluate performance.

•  Refine study techniques: Practice reading and note-taking strategies to handle increased workloads.

Get Comfortable With New Environments

Familiarity can go a long way toward reducing anxiety. If possible, visit campus before classes begin. This will give you an opportunity to walk around academic buildings, locate your classrooms, find the dining halls, and explore nearby stores.

If an in-person visit isn’t possible, use virtual campus tours and maps. The goal is to turn unknown space into a recognizable environment. Even a small amount of familiarity can make a big difference.

Manage Financial Anxiety Before College

Money is often one of the biggest sources of stress for students. Tuition, housing, books, and daily expenses can feel overwhelming. Facing financial concerns head on — rather than avoiding them — can help you feel more in control.

Understand Financial Aid Options

Many students use some form of financial assistance. This may include scholarships, grants, work-study programs, federal student loans, and private student loans. Review your financial aid award letter carefully to be sure you understand:

•  What is free money (scholarships and grants)

•  What must be earned (work-study)

•  What must be repaid (loans)

If anything is unclear, contact the financial aid office. They are there to help.

Federal vs Private Student Loans

If loans are part of your financial plan, it’s important to understand the difference between federal and private options.

Federal student loans are funded by the government and typically offer:

•  Fixed interest rates

•  Income-driven repayment

•  Deferment and forbearance options

•  Potential loan forgiveness programs

Private student loans are offered by banks, credit unions, and online lenders. They may:

•  Have fixed or variable interest rates

•  Require a credit check or loan cosigner

•  Offer fewer repayment protections

Many financial experts recommend exhaustion federal loan options before considering private loans because of their low, fixed rates and borrower protections.

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

Budget for College Expenses

You might set up a weekly or monthly spending budget then use a budgeting app (or simply the Notes app on your phone) to track your expenses as you go. This habit can help you avoid financial surprises and build your confidence in managing money.

Creating a basic student budget before the semester begins can be a great way to reduce financial stress. Start by listing your expected monthly expenses, such as:

•  Housing: Rent or on-campus housing fees

•  Food: Meal plans, groceries, and dining out

•  Academics: Textbooks, software, and school supplies

•  Transportation: Commuting costs, parking, or public transit

•  Personal: Self-care, entertainment, and miscellaneous needs

Compare those totals to your expected monthly income, which might include:

•  Financial aid: Grants, scholarships, and student loans

•  Employment: Income from a part-time job or work-study

•  Support: Contributions from family or personal savings

Once you have your numbers, consider using a budgeting app or even just the Notes app on your phone to track your spending as you go. Building this habit early can help you avoid financial surprises and gives you more confidence in managing your money.

The Takeaway

It’s normal to be nervous about attending college. It is a natural response to change, growth, and stepping into a new chapter of life. Strategies that can help ease that anxiety include getting organized and packing early, learning independent living skills, preparing emotionally and academically, and managing financial concerns proactively.

With the right mindset and practical planning, your nervousness can transform into confidence — and your first semester can become the beginning of an exciting and empowering journey.

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

Is it normal to feel nervous before college?

Yes, starting college is a major life transition that involves leaving home, adjusting to a new environment, meeting new people, and managing greater responsibilities. It’s normal to feel a mix of excitement and anxiety about these changes. Nervousness is a natural reaction to uncertainty and simply means you are invested in succeeding in this new chapter. Many students, even seemingly confident ones, feel worried about academics, making friends, and living independently.

How can I reduce anxiety about starting college?

To reduce anxiety about starting college, focus on preparation, connection, and self-care. Visit the campus early, attend orientation to familiarize yourself with the environment, and connect with future classmates online. Manage stress by establishing healthy routines (such as consistent sleep routine and a balanced diet) and reminding yourself of the exciting opportunities ahead.

How do I prepare emotionally for college?

You can prepare yourself emotionally by building self-care habits, increasing your independence, and establishing a support system before you leave. Key steps include:

•  Practicing stress-management techniques, such as journaling or exercise

•  Learning to budget and manage your time effectively

•  Setting realistic expectations and accepting that making mistakes is a normal part of growth

•  Fostering independence through daily tasks like doing your own laundry or scheduling your own appointments

What are common fears students have about college?

Common fears often revolve around three main areas:

•  Academic pressure: Worrying about keeping up with the challenging coursework, failing classes, or choosing the wrong major.

•  Social anxiety: Concerns about making new friends, fitting in, or dealing with roommates and feeling homesick or isolated.

•  Independent living/financial stress: Anxiety over managing money (tuition, budgeting), doing things like laundry and cooking for themselves, and being fully responsible for their own schedule and well-being away from home.

How can parents help students feel less nervous about college?

Parents can help by providing practical and emotional support. Encourage your student to get organized (such as making lists and starting to pack) and learn basic independent living skills (e.g., laundry, budgeting). It’s also important to validate their feelings, focus conversations on the positive opportunities ahead, and encourage them to attend orientation or visit campus to turn the unknown into the familiar.

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Pursuing a Doctor of Veterinary Medicine (DVM) degree can lead to a fulfilling career caring for animals, supporting public health, or advancing research. But like many professional degrees, vet school typically comes with a hefty price tag. Tuition, fees, and living expenses can add up quickly over four years.

Fortunately, there are a number of ways to lower your out-of-pocket costs and keep your debt manageable. Below, we explore seven practical ways to pay for vet school — plus tips for creating a smart financing plan.

How Much Vet School Costs and Why Planning Matters

The cost of veterinary school varies widely depending on whether you attend a public or private institution and whether you qualify for in-state tuition. Total costs for four years (including tuition, fees, books/equipment, and living expenses) can range anywhere from $275,000 to $397,000.

For example:

•   The total cost to earn a DVM at the Ohio State University College of Veterinary Medicine is about $274,800 for in-state residents and approximately $323,500 for out-of-state students.

•   The total cost to earn a DVM at Tufts University’s Cummings School of Veterinary Medicine is roughly $397,400.

Since most veterinary students take out student loans to finance their education, it’s important to plan ahead. The amount you borrow will directly affect your monthly payments after graduation and how long it takes to become debt-free. Building a financing strategy early can help minimize unnecessary debt. Every dollar you save in tuition — or secure through scholarships and grants — is a dollar you won’t pay interest on later.

1. Choose an Affordable School

One of the most important financial decisions you’ll make is where to attend veterinary school. Public universities typically offer lower tuition for in-state students. If you live in a state with a veterinary college, qualifying for residency can substantially reduce your total cost. Some states without vet schools participate in regional agreements that allow students to attend partner institutions at reduced rates.

While prestige and location matter, it’s important to compare total projected costs — not just first-year tuition. Even a difference of $10,000 per year adds up to $40,000 over a four-year program — not including student loan interest.

The American Association of Veterinary College (AAMC) offers a cost comparison tool that can help you compare tuition and other expenses at accredited veterinary schools across the U.S., including the average amount of institutional scholarship aid awarded to first-year students and the percentage of students who receive it.

2. Scholarships

Scholarships are one of the best ways to pay for vet school because they don’t need to be repaid. You can find scholarships from a variety of sources, including local veterinarian offices, kennel clubs, businesses, and professional organizations. For example, both the AAMC and the American Veterinary Medical Foundation (AVMF) offer scholarships for veterinary students.

Some private foundations may provide scholarships for students pursuing specialties such as large animal care, rural practice, or public health. These scholarships aim to reduce debt and encourage students to fill critical, high-need areas in the veterinary profession.

Many colleges of veterinary medicine also award institutional scholarships automatically based on your application, while others require separate applications. Ask your prospective school’s financial aid office for details.

Recommended: Scholarship Search Tool

3. Fellowships

Some vet schools offer research fellowships that provide tuition support and/or stipends in exchange for participating in faculty-led research projects. These programs not only provide financial support but also enhance your resume, particularly if you’re considering academia, non-clinical careers in industry and government, or a specialized practice.

Certain federal agencies and nonprofit organizations also offer fellowship programs tied to public health or research. While competitive, these opportunities can provide financial relief along with professional development.

4. Grants

Grants are another form of “free money” for college that does not require repayment. While grants are less common for graduate-level students than for undergraduates, some options may still be available based on financial need.

Certain state programs, nonprofit organizations, and veterinary associations may offer grants for students committed to rural or underserved communities or veterinary shortage areas.

Completing the Free Application for Federal Student Aid (FAFSA®) each year will determine your eligibility for any need-based grant funding. Even if grants only cover a small portion of your expenses, every dollar awarded reduces how much you may need to borrow.

5. Federal Loans for Health Profession Students

When scholarships and grants aren’t enough, federal student loans are typically the next step. Federal loans often offer borrower protections and repayment options not available with private student loans.

Direct Unsubsidized Loans for Veterinary Students

Veterinary students are generally eligible for Direct Unsubsidized Loans through the U.S. Education Department. These loans are not based on financial need, and interest begins accruing as soon as funds are dispersed.

Starting in July 2026, professional students may borrow up to $50,000 per year in Direct Unsubsidized Loans, with a lifetime cap of $200,000. While interest accrues during school, you don’t need to begin repayment until six months after you graduate, leave school, or drop below half-time enrollment.

Borrowers who take out loans after July 1, 2026, will have two repayment options — a standard plan that features fixed monthly payments over a 10- to 25-year term based on the total amount borrowed and an income-driven repayment plan.

Health Professional Student Loan (HPSL)

The Health Professional Student Loan (HPSL), administered by the U.S. Department of Health and Human Services, is a low-interest, need-based loan for students in dentistry, pharmacy, podiatric medicine, optometry, and veterinary medicine. These loans feature a fixed 5.0% interest rate that is subsidized until repayment begins 12 months after you complete your program.

Eligibility is determined by your FAFSA data and parental financial data (required regardless of dependency status). Unlike standard federal Direct Loans, HPSL borrowing limits vary by institution. Your school will notify you if you are eligible for an HPSL, provide your max borrowing amount, and tell you how to sign for your loan.

6. Graduate PLUS Loans

Federal Graduate PLUS loans have historically allowed graduate and professional students (including veterinary students) to borrow up to the full cost of attendance, minus other financial aid received. These loans required a credit check but did not have the same borrowing caps as Direct Unsubsidized Loans.

However, due to the One Big Beautiful Bill Act (OBBBA) signed into law in July 2025, the Federal Graduate PLUS Loan program is being discontinued for new borrowers effective July 1, 2026. As of that date, veterinary students will be limited to $50,000 per year in Direct Unsubsidized Loans, with a $200,000 aggregate cap.

If you are currently enrolled in vet school and borrowed a Grad PLUS loan before July 1, 2026, you may still be able to access these loans for up to three additional years or until your program ends — whichever comes first. Speak with your financial aid office to understand how these recent changes may affect your borrowing strategy.

7. Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. Some lenders even offer specialized loans for graduate school, including veterinary school loans.

Private student loans typically require a credit check and may necessitate a cosigner for students with limited credit history. Interest rates, which can be fixed or variable, are determined by the borrower’s creditworthiness. Unlike federal options, private loans lack income-driven repayment and federal forgiveness programs. For that reason, they are usually best considered after exhausting all your federal student loan options.

When comparing student loan offers, you’ll want to carefully evaluate interest rates (fixed vs. variable), repayment terms, deferment and forbearance policies, and cosigner release options.

Recommended: How Private Student Loans Work

Creating a Vet School Financing Strategy

Paying for veterinary school isn’t just about finding money — it’s also about building a sustainable plan that balances education costs with your future earning potential. These strategies can help you manage your vet school financing.

Exhaust Free Aid First

It’s a good idea to tap any and all sources of “free money” (grants, scholarships, and fellowships) first, as these do not need to be repaid and can significantly reduce the need for loans. Be sure to complete the FAFSA annually and monitor scholarships databases throughout your program — not just your first year.

Compare Federal vs Private Loan Benefits

Federal student loans generally offer:

•   Income-driven repayment

•   Deferment and forbearance protections

•   Potential loan forgiveness options

Private lenders may offer competitive interest rates on student loans for highly qualified borrowers but lack federal safety nets.

For students considering public service roles — such as working in nonprofit clinics or government agencies — federal loan programs may offer long-term advantages.

Consider Future Income and Debt

Before taking out student loans, it’s a good idea to estimate your:

•   Total projected debt at graduation

•   Expected starting salary

•   Monthly loan payments under various repayment plans

You generally want to avoid borrowing the maximum amount available if you don’t need it. Living modestly during school can significantly reduce your financial stress later.

Explore Vet Loan Forgiveness Programs

Veterinarians who go on to work for government agencies, universities, or certain non-profit veterinary clinics may qualify for Public Service Loan Forgiveness (PSLF), which forgives the remaining balance on federal Direct Loans after you make 120 qualifying monthly payments.

In addition, the USDA Veterinary Medicine Loan Repayment Program (VMLRP) helps pay down student debt for veterinarians who agree to work in designated shortage situations for at least three years. For qualified applicants, the program may repay up to $40,000 in student per year.

Many states operate their own, separate loan repayment or forgiveness programs tailored to local needs, often in conjunction with federal efforts to support rural, agricultural, or underserved areas.

How Much Can Veterinarians Make?

Veterinary salaries vary by location, experience, specialty, and practice type. According to the AVMA, the average annual income of a DVM graduate in the U.S. is around $154,000.

According to the AVMA’s 2025 Graduating Senior Survey, the average full-time starting salary for new veterinary graduates was $129,000. However, starting salaries vary significantly by specialty. Here’s a breakdown:

Veterinary Specialty	Average Starting Salary (2025)
Companion animal practice	$140,000
Mixed practice	$112,000
Equine practice	$95,000
Food animal practice	$100,000

The Takeaway

Becoming a DVM is a major investment, but the price tag doesn’t have to be a roadblock. To keep debt manageable, opt for an affordable program, prioritize “free money” (like scholarships, grants, and fellowships), and carefully compare federal student loans with private loan options. Finally, look ahead to relief: Programs like the Veterinary Medicine Loan Repayment Program (VMLRP) and Public Service Loan Forgiveness (PSLF) are available to help manage debt after graduation for those serving in high-need or public sectors.

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 you get scholarships for vet school?

Yes, you absolutely can get scholarships for vet school. These can come from several sources, including professional organizations like the American Veterinary Medical Foundation (AVMF) and the American Association of Veterinary College (AAMC). Individual colleges of veterinary medicine also offer institutional scholarships, sometimes automatically based on your application. In addition, some private foundations, local businesses, and kennel clubs offer vet school scholarships. Always check with your school’s financial aid office and use scholarship search tools.

Can FAFSA be used for vet school?

Yes, the Free Application for Federal Student Aid (FAFSA®) can be used for vet school. Completing the FAFSA is the essential first step to access federal, state, and institutional financial aid, including grants, work-study funds, and low-interest loans. You’ll want to complete the FAFSA annually for the years you plan to attend vet school.

How much can veterinarians expect to make?

According to the American Association of Veterinary Medical Colleges (AAVMC), the average annual income for a Doctor of Veterinary Medicine (DVM) in the U.S. is approximately $154,000. For the class of 2025, the average full-time starting salary was $129,000. These figures vary significantly by specialty; for instance, new practitioners in companion animal medicine averaged $140,000, whereas those entering equine practice started at approximately $95,000.

Are veterinary students eligible for loan forgiveness programs?

Yes, veterinary students are eligible for several loan forgiveness and repayment programs. The Public Service Loan Forgiveness (PSLF) program can forgive the remaining balance on federal Direct Loans after 120 qualifying payments for vets working for eligible government or non-profit employers. In addition, the USDA Veterinary Medicine Loan Repayment Program (VMLRP) offers up to $40,000 per year in student loan repayment for veterinarians who commit to working in designated veterinary shortage areas for at least three years. Many states also offer their own loan repayment programs.

Should you use private student loans for vet school?

While federal loans should typically be exhausted first, private student loans can be a useful tool to cover any remaining gap between the cost of attendance and other financial aid received (including scholarships, grants, and federal loans like Direct Unsubsidized Loans). Private loans for vet school typically require a credit check, and you may need a cosigner. Since they lack federal protections like income-driven repayment and forbearance programs, carefully compare rates, terms, and lender policies before borrowing.

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SOISL-Q126-070

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When something goes wrong with their car on the road, most people have two options: call an emergency towing service or contact their roadside assistance program. Those choices may sound like the same thing, but there are important differences.

Read on for a breakdown of what you can expect from each of these services, including their pros and cons and average costs.

What Is Roadside Assistance?

If you’re stranded on the road, roadside assistance will send a mechanic, a locksmith, or a tow truck to get your car up and running, to a repair shop, or to your home.

Roadside assistance packages vary from one provider to the next, but most include the following:

•  Flat tire change

•  Battery jump-starts

•  Fuel delivery

•  Lockout assistance

•  Winching/extrication

•  Quick-fix services

Any benefits you receive on top of these basics are determined by your roadside assistance plan. For example, some plans include trip interruption coverage or a guaranteed arrest bond if you’re charged with a traffic violation. Premium plans may also offer savings on car maintenance costs, car rentals, hotels, and other perks. Extra benefits may come at an extra cost, however, so it’s important to compare plans carefully.

There are a few different ways you can get a roadside assistance plan:

•  Many insurance companies offer some type of roadside assistance coverage, usually as an add-on to your auto insurance policy. If you’re concerned about cost, there are other ways to lower car insurance premiums.

•  Another option is to pay for an auto club membership separately from your auto insurance.

•  Your car manufacturer may include a roadside assistance package as part of your warranty or as a limited free trial for a service that you can later purchase.

•  Some credit card companies offer access to roadside assistance as a cardholder perk.

Recommended: Why Personal Insurance Planning Is Important

What Can You Expect When Calling Roadside Assistance?

One of the benefits of participating in a roadside assistance program is that you’ll know exactly who to contact if you need help with your car. You can program the customer assistance number into your phone, download the program’s app, or tuck your membership card into your wallet or glove compartment.

Here’s what to expect when you call roadside assistance.

Calling for Help

First things first: If your child is locked in the car or you’re in a situation where you feel unsafe, you may want to first call 911. The 911 dispatcher will determine whether to send an officer to help.

If you’re not in any danger but facing issues with your car, you can just call roadside assistance. You may be asked to verify that you have an account or that the car is yours, so have your license and registration, proof of insurance, and your roadside assistance plan’s membership card on hand.

Your roadside assistance dispatcher will send the appropriate help from a network of service providers to your location. A technician may try to fix your car on site. But if that isn’t possible, they can tow your vehicle to a repair shop or to your home if you prefer and it’s within your plan’s mileage limit.

Getting Home

If your car needs towing to a repair shop, you may be able to ride with the tow truck driver. However, whether you get a ride home after depends on the company’s policy.

If you’re out of town when your car breaks down, roadside assistance with optional trip interruption coverage may pay for an overnight stay in a hotel. (If you travel a lot, you may want to check if this benefit is available when you’re comparing plans.)

Wait Times

Many roadside assistance programs work with a network of providers, so when you call, there may be someone nearby who can get to you quickly and offer the services you need. Generally, you can expect help to arrive in less than an hour.

Several factors can impact your wait time, however. If there’s heavy rain, wind, or a snowstorm, for example, you may have a longer wait. It can also take a while to get help if you’re in a rural location that’s far from a locksmith, mechanic, or towing service — or if you’re in a big city during rush hour.

Some plans provide updates through texts or an app so callers can track their wait time in real time.

Payment

Payment to the service provider who comes to your aid depends on the plan you’re enrolled in. With some programs, if you use the toll-free number or an app and the dispatcher sends a technician to help, you may not have to pay anything upfront for covered services. But if you contact a tow service, mechanic, or locksmith directly, you’ll likely pay out of pocket and then submit receipts to your plan for reimbursement.

Some plans may not have a central dispatcher. In that case, you’d call a provider directly, pay for the services, and then file a reimbursement claim. No matter how your plan handles payments, it’s a good idea to have your credit card with you when driving.

There’s no deductible for roadside assistance, and most programs have very specific limits on what they’ll cover. For example, if a service technician delivers fuel to your car because you’ve run out of gas, the delivery may be free, but you may have to pay for the gas.

What Is the Average Cost of Roadside Assistance?

The price of a roadside assistance plan varies based on several factors, including:

•  How many vehicles or drivers do you want covered

•  Where you live

•  Whether coverage occurs through your auto insurance or another source

•  The level of coverage you choose

Some plans may charge less for annual coverage and more for services received or vice versa. It can be useful to compare online insurance benefits and quotes to get a sense of what’s available and at what cost.

Generally, you’ll pay less for a plan that’s an add-on to your auto policy compared with a stand-alone membership. Allstate, for example, offers a roadside assistance insurance add-on for as little as $59 per year for one vehicle. Without an Allstate policy, the cost of a roadside assistance membership starts at $73 for the first year.

If your insurer doesn’t offer 24-hour roadside assistance or if you don’t like your insurer’s plan, you may want to check out what other insurance companies are offering.

Pros and Cons of Roadside Assistance

One of the biggest pros of roadside assistance coverage is that you know you’ll have someone to contact whenever you run into car trouble for advice or hands-on assistance.

As noted above, some plans will post a bond if you’re charged with a traffic violation or reimburse you (within limits) if you need to stay in a hotel overnight. Plans may also include benefits that go beyond roadside breakdowns, such as discounts on travel and entertainment.

Even if you call roadside assistance only once, you may save enough on the services rendered to cover your cost for the year.

Still, no one likes the idea of paying for something they may never use. If you have a newish car that’s well-maintained or you seldom drive far from home, you may decide roadside assistance isn’t for you.

Coverage limits can also be disappointing. Enrolling in a roadside assistance plan doesn’t mean you’ve got a blank check that will cover any cost you incur. You may have to pay a certain amount to have your car towed if you go beyond the mileage limit, for example, or you may have to pay for a new battery or tire if yours needs replacing. There may also be an annual limit on the number of calls for service that you can make.

Also, not all costs are covered upfront. Your plan may require you to submit receipts for reimbursement in some or all instances. If you’re averse to paperwork, that may be something to consider.

What Is an Emergency Towing Service?

The main purpose of emergency towing services is to move a vehicle when the driver can’t get back on the road. Several circumstances might require an emergency tow, including:

•  When you’re in an accident and your car can’t be driven or you’re in no shape to drive

•  If your car isn’t running, and it’s blocking traffic or putting you and other drivers in danger

•  If the police pull you over and determine that you’re in no condition to drive

There are a couple of circumstances in which your car insurance may pay for towing, even if you don’t have roadside assistance coverage:

•  After an accident, if you have collision coverage

•  If your car is damaged in a flood, fire, etc., and you have comprehensive coverage

But in most cases, if you don’t have roadside assistance or towing and labor coverage through your auto insurance policy, an auto club membership, or a car warranty, you’ll be liable to pay for your vehicle’s towing.

What Can You Expect When Calling an Emergency Towing Service?

If your car breaks down close to home, you may be able to directly call a reliable repair shop or towing service you’ve worked with in the past. Having that connection can be a benefit if you want to choose a company that can quickly help you.

But if you’re far from home and unfamiliar with the service providers available, you may have to cross your fingers and hope for the best when you call a towing service.

Here’s what you can expect when you call for emergency towing without a roadside assistance plan.

Calling for Help

If your regular mechanic or garage has the right equipment for your needs (a tow truck, a flatbed trailer, a winch, etc.), you may be good to go. They can pick up your car and get you the help you need.

But if you can’t call your favorite repair shop — because you’re out of town or it’s after hours — you may have to make a few calls before you find the appropriate help.

Some companies don’t require a subscription to use their towing and roadside assistance network, so you can try contacting them for help. But if their network doesn’t include services where you are, you may have to try your luck dialing local tow truck companies.

When a tow truck comes to your location, the driver may be able to offer on-site assistance with a flat tire, dead battery, or other problem. But you can’t necessarily count on getting the same help you’d get with a roadside assistance plan. The driver may be equipped only to tow your car back to your house or to a repair shop, and you can expect to pay in full for every service you receive if you don’t have roadside assistance coverage.

No matter who you call, it’s important to be clear about what you need. And of course, if you are in an accident or feel you may be in danger, you should call 911 first.

Getting Home

You may be able to get a ride home from the tow truck driver after they take your car to the garage. But as with a roadside assistance plan, it will likely be up to the individual driver’s discretion or company rules. If you aren’t sure if there will be a cost for the ride, you may want to ask before you get in the truck. And if you’re far from home, you also may want to ask for hotel recommendations.

Wait Times

Response times for tow trucks generally are determined by availability. If you call a tow company directly and there’s a truck close to your location, you may be able to get faster service than you would by calling a roadside assistance plan because you’re eliminating the middleman.

But the factors that can hold up a truck coming through a roadside assistance dispatcher can also delay a company you call directly, including inclement weather, rush-hour traffic, and distance.

Payment

If you call a tow truck directly, you can expect to pay the bill out of pocket. Depending on why you’re calling and the type of insurance coverage you have, you might be reimbursed for some costs. But if you’re calling about an overheated engine, a dead battery, or a flat tire and you don’t have roadside assistance coverage, your insurance company typically won’t reimburse you for the costs.

What Is the Average Cost of Emergency Towing Services?

Towing rates in the U.S. can range between $2.50 and $7 per mile, and the average cost of a tow is about $109. Besides distance, several other factors can affect the overall cost of a tow.

It may cost less to have your car towed after a breakdown than if you’ve been in an accident. And if the tow company needs to use special equipment because your car is stuck in mud, snow, or a deep ditch, for example, the cost may increase.

Many tow companies also include a base charge or hook-up fee that can range from $35 to $100. Some tow companies have a list of basic charges on their website, but if you can’t find pricing, you may want to ask to avoid surprises.

Pros and Cons of Emergency Towing Services

One of the biggest upsides to using an emergency towing service may be that you’re eliminating the middleman. You don’t have to wait for the dispatcher to find a network-approved provider to come and get you; you can call any company you like.

Of course, this can also be a drawback if you’re far from your favorite mechanic or repair shop. You may have to make multiple calls to find a tow truck that can come to your rescue.

Another plus to consider is that you won’t have to worry about paying for roadside assistance coverage every year, whether you use it or not. You’ll only pay for services you actually use.

But if you end up calling a tow truck even once and you don’t have coverage, it could cost you a substantial amount. You can end up paying more for that one tow than you would for a year of roadside assistance coverage — and you won’t be getting the perks.

How to Decide Between Roadside Assistance and Emergency Towing Services

Because there are pros and cons to both roadside assistance coverage and emergency towing services, here are some things you may want to look at when you’re trying to decide between the two.

Your Comfort Level

Are you someone who likes planning for when things go wrong, or are you OK with winging it? If you want the security of knowing you’ll have just one call to make if you need help on the road, you may prefer roadside assistance coverage.

Your Car

If your car is new or it’s well-maintained and the chances of a breakdown are slim, you may decide you don’t need to pay for roadside assistance coverage.

If your car is still under warranty, it may cover the cost of some roadside repairs. And if you have collision or comprehensive coverage through your auto insurance policy, towing costs may be paid in some circumstances.

Your Family’s Needs

If your car is an older model that isn’t exactly reliable or you have some first-time drivers in the family, and you want to feel confident they’ll know who to call (besides you) if they run into trouble on the road, consider getting new drivers’ roadside assistance coverage for the whole family.

Value

You may want to compare the costs of having a roadside assistance plan with the potential out-of-pocket expenses for a tow or other services. Can you afford a plan that fits your needs and budget? Can you afford not to have coverage? Keep in mind that if you use your plan just once, it may pay for itself for the year.

Recommended: Auto Insurance Terms, Explained

The Takeaway

When the unexpected happens on the road, you can wing it and call for a tow truck. Or you can contact roadside assistance and feel confident that someone will come help you out as soon as possible. What’s more, some or all of the cost of getting your car back on the road could be covered under your plan.

Many drivers consider roadside assistance a good deal for the money: The cost of just one tow is often more than the annual cost of roadside assistance. If you travel a lot or have young children or new drivers in the family, roadside assistance may be what you need.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

What is emergency roadside assistance good for?

Roadside assistance coverage can help you deal with and pay for a range of unexpected costs you might run into while on the road. These can range from fixing a flat tire on site to towing you to a repair shop for major repairs.

Is emergency roadside assistance worth it?

No one likes paying for something they may never use. But if your car breaks down just once, the convenience and savings you get through your roadside assistance plan may make it worth paying the annual cost.

What is the difference between emergency towing and roadside assistance?

Roadside assistance coverage is meant to help you get the service you need when you have car trouble — on the road or at a repair shop. Depending on the problem, roadside assistance may cover all or a portion of the costs. On the other hand, emergency towing is meant to get your car off the road and to a repair shop where it can be fixed. Generally, you can expect to pay for all the costs related to this service.

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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.

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.

SOPRO-Q126-057

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Pursuing a graduate degree in a STEM field can help you level up your career prospects. A key consideration is how to pay for STEM master’s degrees. You’ll need to manage tuition, fees, and other expenses. The average cost of a master’s degree in science is $61,380, though your actual cost depends on where you attend school, how long it takes you to complete the program, and what types of aid or assistance you qualify for. Pursuing medicine or a health profession, for example, could be more costly. Federal financial aid, scholarships, and grants are all options to consider as you explore how to pay for a STEM master’s degree.

Unique Costs of STEM Graduate Programs

Typical STEM graduate program costs include tuition, fees, and books but there may be additional expenses you’ll need to factor into your budget. You may be expected to pay lab fees to conduct hands-on coursework, purchase specific hardware or software, and cover research-related expenses. If you anticipate completing an internship or fieldwork during your graduate program, that may require a placement fee.

Lab Fees and Technology Requirements

As a graduate student in a STEM field, you may be expected to pay lab and/or technology fees, which can add 10% or more to your total cost, even if you pursue a degree online. Lab fees help to cover the cost of materials required for hands-on experimentation or coursework. Technology fees typically cover maintenance and upgrades for required software systems and hardware used in lab settings.

Additionally, you may be expected to purchase hardware or software for use outside the lab. For instance, you may need to purchase a laptop or tablet, printer, or specialized software to complete work in a virtual lab. Some of these costs may be one-time only; for instance, your laptop may last for the duration of your enrollment. Others, such as lab fees, may be recurring and apply to each course you take that requires a lab component.

Research Expenses

STEM master’s degree students are typically expected to conduct research if they’re on a thesis track. Students who are enrolled in a non-thesis course of study may be expected to complete a capstone project in lieu of research.

Research costs typically depend on whether your efforts require labwork, fieldwork, or both; how long you plan to conduct the research; and any materials you may need. For example, if you’re a biochem STEM major you may need to purchase reagents and lab equipment to conduct your research. A mathematics major, on the other hand, may require access to computing equipment and data sets.

Recommended: 9 Tips to Manage Student Loan Debt

FAFSA’s Role in STEM Program Funding

If you’re seeking STEM graduate school funding, completing the Free Application for Federal Student Aid (FAFSA) is a key step. The FAFSA helps establish your eligibility to receive financial aid to pay for school. FAFSA STEM graduate programs include:

•   Direct Subsidized Loans: The federal government’s Direct Subsidized Loan program for students who demonstrate financial need offers up to $20,500 in funding annually for independent students who are enrolled in an eligible graduate program at least half time. Graduate students may receive an aggregate total of $138,500 in aid. The graduate aggregate limit includes all federal loans received for undergraduate study.

•   PLUS Loans: Grad PLUS Loans have historically helped to pay for master’s degree costs not covered by other types of financial aid. This program is being discontinued due to changes in federal financial aid programs generated by the One Big Beautiful Bill Act that passed in 2025. If you have a Federal Direct Loan prior to July 1, 2026, you are eligible to continue to borrow for three academic years or the remainder of the expected time to secure their degree, whichever is less.

•   TEACH Grants: TEACH Grants provide up to $4,000 per year for students who are pursuing a degree in an education-related field. You may qualify for a TEACH Grant to help pay for graduate school if you’re seeking a master’s in STEM education.

•   Work Study: Work study funding enables you to get paid for working while in school. You must have an approved job, which can be on-campus or off-campus, and your school must pay you at least once per month. Graduate students may be paid hourly or a salary, and earnings can’t exceed your award limit.

Federal graduate student loans must be paid back but they can offer some advantages over private student loans where STEM graduate school funding is concerned. Rates are fixed and won’t change unless you consolidate or refinance your loans. You get the benefit of grace periods, deferments, and forbearance periods if you can’t pay. Income-based repayment can help keep your payments reasonable once you graduate, and it’s sometimes possible to qualify for loan forgiveness.

Grants typically don’t need to be repaid, though the TEACH Grant program has a catch. You must agree to a work commitment after graduation; otherwise, you’ll have to repay the grant just like you would a federal loan. Work study’s biggest hitch is availability; funds are first-come, first-served so if you plan to apply for this type of aid, it’s better to get your FAFSA in sooner rather than later.

Additional Funding Sources

If you’ve exhausted federal financial aid or want to avoid loans, consider other options for how to pay for a STEM master’s. That includes assistantships and fellowships, private STEM scholarships, and grants, and employer-paid education benefits. These are all ways to pay for a STEM master’s without borrowing, if you qualify.

Assistantships and Fellowships

Assistantships and fellowships can both help pay for STEM master’s degrees, though they work differently.

•   Assistantships: Assistantships are essentially work-study awards that require a weekly commitment of a set number of working hours. You might work as a teaching assistant, research assistant, or administrative assistant. An assistantship is designed to help you gain hands-on experience in a STEM environment while helping you pay for school.

•   Fellowships: Fellowships provide STEM students with funds to cover research costs, tuition, and living expenses while in school. You’re not paid to work with a fellowship; you’re paid to excel in your studies. Compared to an assistantship, fellowship funding may be more competitive and/or merit-based.

Assistantships and fellowships may be offered through your school or privately. Keep in mind that receiving either one may reduce the amount of federal financial aid you qualify for.

Other Scholarships and Grants

Scholarships and grants can offer money for school that you typically don’t have to repay. In some cases, repayment may be expected unless you agree to a work commitment after graduation.

Some scholarships and grants are need-based while others are awarded based on merit. If you’re looking for scholarships and grant funding for a STEM master’s degree, you can talk to your school’s financial aid office to learn about opportunities, both internal and external. You may also try an online scholarship search to see what results turn up.

Application and eligibility requirements vary but you may be expected to offer multiple letters of reference and write one or more essays for consideration. The more scholarships and grants you apply for, the better your odds may be of winning some awards to pay for school.

Employer Tuition Benefits

If you’re going to graduate school while working full-time, or looking for a full-time role once you finish your degree, your employer may offer some benefits to help fund education costs. They may include tuition assistance or loan reimbursement.

Tuition assistance offers cash up front to pay for tuition, fees, and other school expenses. Loan reimbursement gives you money to repay your student loans after the fact. If you’re working or scouting out job offers, take a closer look at an employer’s benefits package to learn what may be available to reduce the cost of earning a degree.

Recommended: Student Loan Help Center

Building a Borrowing Strategy

If you plan to take out student loans to pay for graduate school, it helps to have a strategy. Here’s what that might look like for a typical STEM master’s student:

•   Complete the FAFSA to determine your eligibility for Direct Subsidized Loans, TEACH Grants, and work-study.

•   Review your estimated aid package to see how much of your expected cost of attendance it will cover.

•   Pursue a Grad PLUS Loan if you are eligible and your existing loan package isn’t enough.

•   Compare private graduate student loan rates and terms, if you’ve exhausted federal financial aid options.

It’s best to only borrow what you need to minimize the amount you have to repay with interest later. If you receive a student loan overage check, consider applying it to your principal loan amount to reduce what you owe.

If you take out both federal loans and private loans, think carefully before you combine them. Refinancing federal student loans into a private loan can reduce the number of payments you need to make. However, you’ll lose all of the built-in protections that may be included with federal loans, including income-based repayment and loan forgiveness eligibility.

Budgeting for Living Expenses

Living expenses can add to your total cost of earning a STEM master’s degree. How much you pay for living expenses can depend on your geographic area, your housing situation, and your basic needs.

You may be able to reduce living expenses while in grad school by:

•   Living with parents or other relatives who may let you stay for free or a minimal cost

•   Splitting housing costs with one or more roommates

•   Living closer to campus so you don’t need to have separate transportation to get to your classes

•   Reducing all unnecessary expenses in your monthly budget

You might also think about completing at least part of your graduate education online. There are STEM online and distance-learning options for graduate students. While you may sacrifice some of the social and networking benefits that go along with completing coursework on-campus, you could save some money on things like transportation, food, and housing if you can attend while living further away from school.

Of course, choosing a less expensive program may be the simplest way to keep the cost of a STEM master’s degree as low as possible. As you compare programs, consider how well the course of study aligns with your career goals, what types of research opportunities you might have, and how much financial aid the typical student qualifies for.

The Takeaway

Figuring out how to pay for a STEM master’s degree can feel overwhelming once you start adding up all the costs. Completing the FAFSA can help you gauge your eligibility for federal student aid. You can also explore STEM scholarships, grants, assistantships, fellowships, and employer education benefits to fill the gaps. If you still need to borrow, private graduate student loans may be an option for you.

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

FAQ

Do STEM students qualify for FAFSA?

STEM students are eligible to complete the FAFSA to learn which types of federal aid they may qualify for. That could include Direct Subsidized Loans, TEACH Grants, and work-study funding.

Are assistantships taxable?

Assistantships are generally taxable. The IRS considers any funds you receive for teaching, research, or other services required to get the assistantship as taxable income. Scholarships, grants, and fellowships, on the other hand, are tax-free if you only receive the funds to help pay for tuition, fees, and other education expenses while enrolled.

Should I borrow the full cost of grad-school attendance?

Borrowing the full cost of a graduate degree only makes sense if you need that amount to pay for school. It’s better to avoid borrowing money to pay for living expenses if you can get it through another means, like working part-time or full-time. Every penny you borrow, whether in federal or private student loans, must be repaid with interest, regardless of how you use it.

Can employer tuition benefits reduce loan needs?

Employer tuition benefits may reduce loan needs if you can get cash up front to pay for school through your job. If you’ve already taken out student loans, employer-sponsored loan reimbursement could reduce the amount you have to repay out of pocket.

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