SoFi

When it comes to selecting a college, one big consideration is whether to attend a private vs. public institution. A key difference between private and public colleges lies in how they are funded and operated. Public colleges get much of their funding from local and state governments, while private ones are largely sustained with tuition, fees, and donations.

Going the public route is the most common scenario. In 2025, a little over 73% of college students at all education levels attended public institutions, according to the National Center for Education Statistics.

Students who are debating between private and public colleges may want to consider factors like cost, quality of education, campus life, and how they plan to pay for college. Below, we take a closer look at the pros and cons of each choice.

Public vs Private Colleges: Factors to Consider

Choosing a college is a personal decision, so it’s important to factor in your individual goals and needs as you compare private vs. public colleges. In addition to the factors below, things like what you hope to study and how close you’d like to be to home will influence how you choose a college.

Now, let’s dig into more about potential advantages and drawbacks of public vs private colleges.

The Cost of Public vs Private Colleges

Many students wonder if they should choose a college based on price. One reason that attending public colleges is the more popular route is that they tend to be less expensive than private institutions. Public institutions are often especially affordable for in-state students, who typically get a break on tuition.

According to research by the College Board, the average cost of tuition and fees at a public college during the 2025-2026 school year was $11,950 for in-state students and $31,880 for out-of-state students. At private colleges, the average tuition and fees was $45,000.

That said, private colleges and universities may also offer scholarships, fellowships, and other kinds of need- or merit-based financial aid. And even some top-tier universities have virtually done away with tuition for students whose families have incomes below a certain level. So high-achieving students might actually get a better or comparable deal at a private institution depending on their family’s financial situation.

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

Differences in Educational Quality

According to U.S. News, the highest ranking public schools in the country include UCLA, UC Berkeley, the University of Virginia, the University of Michigan Ann Arbor, and the University of North Carolina at Chapel Hill. At these schools (and many others), students can get a top-notch education at a fair price if they qualify for in-state tuition.

However, many public schools have enormous student populations, which can mean large class sizes, difficulty getting into your most desired classes, and less personal attention from faculty and administrators. For example, the University of Central Florida has just over 59,000 undergraduates, resulting in a student-to-faculty ratio of 28 to 1. By contrast, Pomona College, a private school in Southern California, has a population of just under 1,800 students and a student-to-faculty ratio of just seven students to one faculty member.

While not every private school offers a standout education, the top ten “Best Colleges” in the country, as ranked by U.S. News, are private schools.

Specific Majors or Programs of Study Available

Private colleges, particularly smaller liberal arts colleges, may have fewer majors or programs available to students than larger public universities. As you are evaluating schools, consider the field(s) of study you are most interested in and understand the options available at the schools you are considering.

In some cases, students interested in pursuing research opportunities may have a better chance of conducting research at a larger university. However, private universities conduct research, too. It’s best to consider the programs you are specifically interested in and ask an admissions counselor what research opportunities are available to undergraduates in that field or major.

Campus Life

For some students, the large size of many public institutions is a factor in the pro column. This environment typically means there are a great variety of potential groups to join, activities to participate in, or classmates to become friends with.

A large school also generally offers a wide variety of classes and majors to choose from, which could expand your network and make your college experience much more interesting. However, many private schools also have vibrant campuses with numerous clubs and activities available for students, too, though it may be on a smaller scale.

Both public and private schools can be a great choice for students interested in athletics. Public schools may offer more options when it comes to participating in or watching sports. They also tend to have the strongest sports teams nationally due to their ability to spend more on athletics and large talent pool.

However, many private universities also have successful teams. If it’s important to you, or you’re a student athlete yourself, you could check out the strength of specific sports programs at the colleges you’re considering.

Financing Your Education

Some students and their families cover tuition costs (or a portion of costs) with savings, but there are a variety of other sources of funding to help students pay for college. While the cost of tuition and fees is typically higher at private colleges than public ones, private schools may offer more financial aid to students. So don’t rule out a private school based on its sticker price because it may not reflect the true cost after financial aid.

To apply for federal student aid, the first step is filling out the Free Application for Federal Student Aid (FAFSA®). Colleges will use this information to help determine how much aid, and what types, a student qualifies for. Federal aid includes things like Pell Grants for low-income students, work-study, and federal student loans. Both private and public schools may offer scholarships to students, as well.

Federal Student Loans

Federal loan options include Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

For the 2025-2026 school year, the federal student loan interest rate is 6.39% for Direct Subsidized and Unsubsidized Loans for undergraduates, 7.94% for Direct Unsubsidized Loans for graduate and professional students, and 8.94% for Direct PLUS loans for parents and graduate or professional students.

💡 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.

Private Student Loans

For students who still need additional funding, a variety of lenders offer private student loans. Private student loans typically take the borrower’s (or their cosigner’s) credit history into consideration. And while federal student loan interest rates are always fixed, private student loan interest rates can be fixed or variable.

Keep in mind, though, that private student loans do not offer the same benefits as federal student loans, such as income-driven repayment and forgiveness programs. If possible, it’s wise to exhaust all federal aid options before seeking private student loans.

The Takeaway

Both public and private colleges and universities can offer an excellent education to students. Differences to consider when deciding between a private or public school include the cost, the programs of study available to students, the quality of education, campus life, and sources of funding for school. Depending on individual preferences and circumstances, students may find a public school better suits their needs or vice versa.

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

FAQ

Is it better to go to public or private college?

Choosing between a public and private college depends on your individual needs and circumstances. Neither is inherently better than the other, as both can provide an excellent education. The decision should be guided by factors like cost (especially after financial aid), desired class size and student-to-faculty ratio, the availability of your major or program of study, and the type of campus environment you prefer. For some, the lower sticker price of a public, in-state university is the best fit, while others may find that a private school offers a superior financial aid package or a more specialized, smaller learning environment that aligns with their goals.

What are the disadvantages of private universities?

Private universities typically come with a higher sticker price for tuition and fees compared to public colleges, which can be a major drawback for many students. While private schools often offer generous financial aid and scholarships that can significantly reduce the actual cost, the initial price tag can still be a deterrent. In addition, some smaller private institutions may offer fewer majors or programs of study compared to large public universities. Finally, while private schools can offer a smaller, more intimate learning environment with a lower student-to-faculty ratio, the campus community and social scene might be smaller in scale. That could be a disadvantage for students seeking a large, bustling environment with extensive athletic programs and a wide variety of clubs.

Is private college better than public university?

Not necessarily. Whether private college or public university is the better choice depends entirely on an individual student’s priorities, financial situation, and academic goals. Private institutions often boast smaller class sizes and lower student-to-faculty ratios, which can lead to more personalized attention and a potentially better overall educational experience. However, this often comes with a much higher sticker price tag. Conversely, public universities are typically more affordable, especially for in-state residents, and offer a wider range of majors, programs, and a larger, more diverse campus life and social scene. While public schools may have larger classes, top-tier public universities still provide a world-class education. Ultimately, the decision should hinge on a careful evaluation of the net cost after financial aid, the specific programs available, and the desired learning environment and campus culture.

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

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

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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

SOISL-Q425-037

The chance to study abroad offers unique opportunities and experiences you simply can’t get at home. Taking some time to attend a college or university in another country can be personally and professionally enriching, and even life-changing. These factors can make studying abroad absolutely worth it.

But going to school in a foreign country isn’t for everyone. Being away from home and loved ones can lead to homesickness and the feeling you’re missing out (FOMO) on important family or college events back on your home turf. Depending on where you study, there could be a language barrier that can be frustrating and the cost could be higher than staying at your home university.

If you’re thinking of attending school in another country, there are numerous factors to consider. Read on to learn about how studying abroad works, its benefits and costs, and how to decide whether or not it’s worth it.

What Does It Mean to Study Abroad?

College study abroad programs allow a student to pursue undergraduate or graduate study in another country. Each year, more than 300,000 American students study, engage in internships, or volunteer abroad for academic credits, according to the U.S. Department of State. Study abroad college programs typically last one semester or a full year, but can be as short as a couple of weeks.

You may be able to study abroad through your home university’s study abroad program. This is often the most straightforward route, since it will be easy to earn credits that will directly apply to your degree requirements.

However, there are other ways you can spend a semester or year attending college in a foreign country. One is by directly enrolling at a foreign university where you may be able to use those course credits towards your degree at your home college or university. Another option is to go through a third-party study abroad provider such as Academic Programs International (API), the Council on International Education Exchange (CIEE), or the American Institute for Foreign Study.

💡 Quick Tip: You can fund your education with a competitive-rate, no-fees-required private student loan that covers up to 100% of school-certified costs.

Why Study Abroad Is Worth It

Going to school in another part of the world can be an incredible opportunity. Here’s a look at some of the benefits of studying abroad.

It Can Change the Way You See the World

Studying in another country allows you to become a more well-rounded and worldly individual. Immersing yourself in a different culture, set of customs, and traditions can broaden your horizons and expand your worldview. Meeting and interacting with an international mix of people can help you gain other perspectives and a deeper understanding of global issues. It also helps foster tolerance, empathy, and more open-mindedness.

Learn a Foreign Language

There’s only so much of a second language you can learn in a classroom. A great way to gain fluency in a foreign language is by living in that country and conversing with the locals. Even if your abroad program offers classes in English, living in a foreign country can help you become proficient or fluent in another language. This, in turn, can expand your employment possibilities and attractiveness to employers, and might allow you to work abroad after college.

Broaden Your Social Network

Even if you participate in a study abroad program run by your home university, you’ll have an opportunity to meet new people — both from the U.S. and abroad. The connections you make can turn into life-long friendships and provide social contacts who may be helpful for networking after graduation.

Increase Your Self-Confidence

Living on your own in a foreign country, where you don’t have a built-in safety net, can foster more independence and self-reliance. Navigating everyday life somewhere unfamiliar gets you out of your comfort zone and you’ll most likely have to learn to problem-solve and make decisions on your own. Choosing to study abroad can result in more self-confidence than if you had stayed at your home school all four years.

Recommended: Guide to Student Loans for Studying Abroad

Costs Could Be The Same Or Lower

Depending on the type of program and location you choose, the cost of study abroad could be comparable to your home university. If you choose your school’s study abroad program, the tuition may be the same as if you stayed stateside. If the cost of living is lower (or the exchange rate is favorable to the U.S.dollar) where you travel to, you could potentially end up spending less.

Generally, directly enrolling in a foreign institution is cheaper than study abroad programs run by American universities or third-party providers. In many cases, you can also use your financial aid package to study abroad.

When Study Abroad Isn’t Worth It

While studying abroad offers numerous perks, there are also some drawbacks. When mulling over whether or not you should study abroad, here’s some potential cons to keep in mind.

Risk of Homesickness

Living and studying in another part of the world can result in feeling intensely homesick. Even though you might have new friends and be surrounded by others, being far from your loved ones and long-time friends may cause you to feel lonely and depressed. If you’re especially close to your family, you may experience FOMO because you’re not able to get home for events, like birthdays, weddings, or family gatherings that occur while you’re abroad.

Language and Culture Barriers

In a foreign country, everything will likely be different — the food, the language, the architecture. Even the local customs and social norms may be different. While this can be a positive (and a reason to go), you might find it hard to acclimate and constantly feel like a stranger in a strange land.

Costs May Be High

While studying abroad may seem like a priceless opportunity, it can come with a hefty price tag. Semester abroad programs through a third-party provider can run between $15,000 and $22,000 depending on location. These programs usually include housing and sometimes meals.

Aside from tuition, you will need to budget for other expenses like housing (if it’s not included), meals, airfare, transportation, entertainment, and books and supplies.

If your financial aid package, including federal student loans, isn’t enough to cover the tab, some private student loans can help fill in funding gaps. However, private loans don’t offer the same borrower protections (like income-driven repayment and forgiveness programs) as their federal counterparts.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.

International Credits May Not Transfer

If you go on a study abroad program run by your college or a major third-party provider, you likely won’t have any issues transferring credits, but this could be a problem if you enroll directly in a foreign university. Non-transferring credits could make it harder to graduate on time.

What to Know About Academics When Studying Abroad

Academically, studying alongside international students can offer a more diverse educational experience by exposing you to new insights, viewpoints, and ideas.

Studying abroad also gives you the opportunity to learn from professors who may use different teaching methods than American professors, such as greater use of group discussions or project-based learning. Plus, you may have the chance to take field trips to historical sights and museums as part of the curriculum.

Studying abroad also comes with some academic limitations. All majors may not be available as part of a study abroad program, even if your home school has an affiliation with a foreign university. For some students (particularly those with STEM majors), studying abroad could make it harder to complete all of their degree requirements within four years, leading to higher education costs.

The Takeaway

There’s a lot to take into consideration when thinking about whether or not you should study abroad, including cost, whether or not course credits are transferable, and how it will feel to be far from home for an extended period of time.

For many students, studying abroad is definitely worth it. Plus, there are scholarships, grants, and other financial aid options available to help offset the expenses. Ultimately, whether study abroad is worth the cost depends on your individual circumstances, goals, and priorities.

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

FAQ

Is it a good idea to study abroad?

Studying abroad can be a great opportunity for personal, academic, and professional growth. It allows you to immerse yourself in a new culture, gain a broader perspective, and develop valuable skills, such as independence and adaptability. It can also enhance your resume, making you more competitive in the job market.

However, it’s important to consider language barriers, cultural differences, and potential homesickness. Overall, if you’re open to new experiences and willing to step out of your comfort zone, studying abroad can be a life-changing experience.

Is study abroad worth the cost?

Studying abroad can be worth the cost if you carefully research programs and choose one that aligns with your financial situation and academic goals.

Costs can vary widely; some programs may be comparable to or even cheaper than staying at your home university, especially if you directly enroll in a foreign institution with lower tuition or a favorable exchange rate. However, third-party programs can be expensive, and you must also factor in expenses like airfare, housing (if not included), and daily living costs.

To help cover the expense, look into scholarships, grants, and federal or private student loans. Ultimately, the value often extends beyond dollars to include personal growth, enhanced career prospects, and a broader worldview.

What are the pros and cons of studying abroad?

Studying abroad offers numerous advantages, such as experiencing a new culture, gaining independence, expanding your network, and improving language skills. It can also enhance your academic and career prospects, as employers often value the skills and experiences gained from studying abroad.

But there are challenges as well, including language barriers, cultural differences, homesickness, and the financial cost. It’s essential to weigh these pros and cons carefully and consider how studying abroad aligns with your personal and academic goals.

Photo credit: iStock/AlexSecret

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

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

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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

SOISL-Q425-036