Oct
31
2025
A man in a green shirt and ripped jeans researches student loans at a small table in a bright room.

Are Student Loans Worth It?

By | Student Loans, student_loan | No Comments

If you’re thinking about taking out student loans to pay for college, you’re in good company: More than half of college graduates leave school with debt. Like most loans, student loans charge interest, which is the cost of borrowing money from a lender. Whether you take out federal or private student loans, you’ll end up paying back more than your original borrowed.

Is it worth it?

The answer depends on your degree, major, and the type and size of your debt. Read on to learn more about whether the current cost of college is worth it, different ways to pay for school, and when it makes sense to take out student loans.

Key Points

•  Whether student loans are worth it depends on your major, career path, and total debt, since some fields offer higher income potential than others.

•  College costs vary: public in-state averages ~$27K per year, while private nonprofit schools average ~$58K+.

•  A good rule of thumb is to borrow no more than your expected first-year salary to keep repayment manageable.

•  Federal loans offer fixed rates and protections like income-driven repayment, while private loans may have higher or variable rates and fewer safeguards.

•  Interest accrues and capitalizes on loans, so repayment length and strategy greatly affect total cost.

College Costs Vary By School

It’s no secret that college costs have gone up over the years, causing more students to take on debt as a means to afford a college education. Indeed, student debt has more than doubled over the last two decades. As of August 2025, about 42.5 million U.S. borrowers collectively owed more than $1.8 trillion in federal and private student loans.

But not all schools cost the same amount. In fact, some colleges cost considerably less than others. According to Educationdata.org, the average cost of attendance for a student living on campus at a public four-year in-state college is $27,146 per year. The average cost of attending a private, nonprofit university and living on campus, by contrast, is $58,628 per year.

💡 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.

Factoring in Financial Aid

Financial aid is another factor that affects the cost of going to college. Some schools may have a high sticker price but offer a variety of need- and merit-based aid options to students, which can lower the actual cost of attendance.

Colleges and universities will frequently publish what percentage of their students receive financial aid and will sometimes also publish the average award amount. This can be helpful information for students applying to colleges.

When deciding where to apply and attend school, keep in mind that even if the sticker price for College A is higher than College B, the financial aid package at College A may make it a more affordable option in the end.

Not All Majors Have the Same Income Potential

Another consideration when evaluating whether borrowing student loans is worth it is to factor in the earning potential based on your selected major, keeping in mind that not all majors offer the same income potential.

For example, students who graduate with degrees in software engineering earn an average starting salary of $104,863. Other majors, such as dance or drama, generally don’t offer the same earning potential to graduates.

It’s a good idea to do some research on the future income potential for the major and field you hope to pursue. This can be helpful in understanding how much you’d realistically stand to earn and, therefore, how long it may take to pay back student loans. Resources like the Payscale College Salary Report or the Bureau of Labor Statistics are two places to start.

How Much Should I Borrow for College?

A general rule of thumb is that students should limit what they borrow to what their potential career will reasonably allow them to repay. As a rough guideline, you may want to avoid borrowing anything more than you will likely be able to earn in your first year out of college.

Keep in mind that just because your financial aid package may include a certain amount in federal student loans, you are not required to borrow the maximum. Consider reviewing other sources of financial aid like private scholarships and grants, which are essentially “free money” for college. It can also be worth setting up an annual budget with anticipated costs for tuition, fees, room and board, and other expenses so you have an idea of how much you may actually want or need to borrow to pay for school.

College Graduates May Have More Financial Stability

In the long term, a college degree can lead to more financial stability. Research suggests that people with bachelor’s degrees have both a higher median income than those without a college degree and earn more over their lifetimes.

Another factor, based on unemployment rates, is that people with a college degree tend to have greater career stability than those without a college degree.

This isn’t always true, however. As some recent studies suggest, certain career paths that don’t require a degree — such as construction inspectors or cardiovascular technicians — also offer significant earning potential.

Here’s What You Might Consider if You Choose to Take Out Student Loans

There are a number of factors to consider when deciding what type of student loan will best suit your particular needs, so it’s important to do your research beforehand.

Things like whether the loan is federal or private, what the current interest rates are, and how long it will take to pay off the loan could all contribute to how much student loan debt you ultimately find yourself in and are important considerations before taking out a loan.

Federal Loans vs Private Loans

There are two main types of student loans — federal loans and private loans. Federal loans are borrowed directly from the government, whereas private loans are borrowed from private lenders like banks, credit unions, and other financial institutions.

While the two loans serve the same purpose, there are some important distinctions. Because federal loans are made by the government directly, the terms and conditions are set by law. These loans also come with certain perks and protections, such as low fixed interest rates and income-driven repayment, that may not be offered with private loans.

Private loans are less standardized, since the terms and conditions are set by the lenders themselves. For example, some may offer higher interest rates than federal loans, and interest rates may be fixed or variable. It’s important to understand the specific terms and conditions set by a private lender. Since private student loans may lack the borrower protections and benefits offered by federal loans, you generally want to tap financial aid and federal student loans first, then consider filling in any gaps with private student loans.

💡 Quick Tip: New to private student loans? Visit the Private Student Loans Glossary to get familiar with key terms you will see during the process.

Understanding Interest Rates

Sometimes people fail to consider the interest rate on the student loan and how it will affect the amount of money they will end up owing.

Interest is calculated as a percentage of the unpaid principal amount (total sum of money borrowed plus any interest that has been capitalized).

Capitalization is when unpaid interest is added to the principal balance of a loan, and interest is calculated using this new, higher amount. You might have interest capitalization if, for example, you decide not to make interest payments on an unsubsidized federal loan or private student loan while you are in school. This unpaid interest will be added to your loan balance and interest will be charged on this new, higher balance.

For all federal student loans, interest rates are set by the government and are fixed, which means they won’t change over the life of the loan. With private student loans, it’s up to the lender to set the rate and terms. Generally, students (or their parent cosigners) who have strong credit qualify for the best rates. If you are interested in borrowing private student loans, it’s a good idea to do some research and shop around so you can find the loan that best meets your needs.

💡 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.

How Long Will it Take to Repay Your Loan?

Paying more money sooner can significantly reduce the amount of time it takes you to pay off a loan (as well as lower the cost). But that may not always be a feasible option. It’s important to consider the implications of different kinds of repayment plans when you take out a loan.

Currently, the standard term to repay a federal student loan is 10 years. But you can also choose an extended repayment plan (that gives you up to 25 years to pay off your loans) and one of several income-driven repayment (IDR) plans, which base your monthly payment amount on how much money you make. For those that take out federal student loans on or after July 1, 2026, there will only be two repayment options: the standard repayment plan and an IDR plan called the Repayment Assistance Plan (or RAP). The standard repayment plan will also change, offering borrowers 10- to 25-year repayment terms depending on the amount borrowed.

When choosing your loan term, keep in mind that a longer repayment term will lead to lower payments but a higher overall cost, since you’ll be paying interest for a longer period of time.

The Takeaway

Student loans can help open up doors to higher education for students, but borrowing responsibly is important. When deciding if student loans are worth it for you — and how much you should borrow — you’ll want to consider multiple factors, including your choice of major, future career path and earning potential, and the cost of the school you hope to attend after factoring in financial aid.

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 a good idea to take a student loan?

Whether taking out a student loan is a “good” idea depends on your individual circumstances. Student loans can be a valuable tool to pursue higher education, which often leads to increased earning potential and career stability. However, it’s crucial to borrow responsibly. Consider your chosen major’s earning potential, the total cost of your education after financial aid, and your ability to repay the loan. Research different loan types, interest rates, and repayment plans to make an informed decision that aligns with your financial goals.

Is $70,000 in student loans a lot?

Whether $70,000 in student loans is “a lot” depends on your individual circumstances, including your expected income after graduation, your living expenses, and the interest rates and repayment terms of your loans.

For some career paths with high earning potential, $70,000 might be manageable, while for others, it could be a significant burden. It’s generally recommended to keep your total student loan debt below your expected first-year salary to help ensure manageable repayment. You might research the average salaries in your chosen field to determine if this amount of debt is sustainable for you.

How much is a $30,000 student loan per month?

The monthly payment on a $30,000 student loan can vary significantly based on the interest rate and repayment term. For instance, with a 10-year repayment plan and a 5.00% interest rate, your monthly payment would be approximately $318. With a 20-year term and 7.00% interest rate, your monthly payments would be around $232. Keep in mind that longer terms can result in lower monthly payments but more total interest paid.

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.


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

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOISL-Q425-014

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Oct
28
2025
Woman sitting in front of her laptop and also checking her phone to research postbaccalaureate programs.

Pros and Cons of Postbaccalaureate Programs

By | Debt Payoff, Student Loans, student_loan | Comments Off on Pros and Cons of Postbaccalaureate Programs

Often seen as a stepping stone between an undergraduate and graduate program, postbaccalaureate programs can help prepare students for a new or different area of study. But a postbaccalaureate program can also be a major financial commitment. The average cost of a post-bacc program is $20,000 to $40,000 or more.

So, just what is this program, and how can it benefit students? Read on to learn the benefits, drawbacks, and financing behind a postbaccalaureate degree.

Key Points

•   Postbaccalaureate programs offer additional study beyond a bachelor’s degree, and are popular with students hoping to go to medical school.

•   These programs may offer prerequisites students need or give them an opportunity to strengthen their grades.

•   Programs often link with medical schools, which could enhance application prospects.

•   They may offer students MCAT preparation and tutoring.

•   Introduction to medical school without long-term commitment is a key feature of postbacc programs.

What Is a Postbaccalaureate Degree?

A postbaccalaureate degree or program is typically one or two years of study beyond a bachelor’s degree. Students may enroll in a postbaccalaureate program for a variety of reasons, including:

•   Completing a second bachelor’s degree.

•   Working towards a graduate certificate.

•   Taking prerequisite courses required for admission into a graduate program.

A postbaccalaureate program isn’t a graduate degree, but students may enroll in the one to two-year programs before heading off to a grad program.

Applying to a postbaccalaureate program will differ from school to school, but students can generally expect to submit their transcripts, as well as test scores, recommendations, and an essay.

Sometimes called post-bacc, these programs are popular among college graduates who hope to enroll in medical school. According to the American Association of Medical Colleges, postbaccalaureate medical programs focus on science, biology, and other subjects required before med school. They are used to enhance an applicant’s application and hopefully increase their chances of getting accepted.

Here’s why post-bacc programs might help a student hoping to apply to medical school:

•   It offers the appropriate prerequisites. If a student wasn’t on a pre-med track undergrad, but they decide they want to pursue a graduate program in medicine, a post-bacc program makes it easier to take all the required courses before applying to med school.

•   It gives them an opportunity to improve their grades. If a pre-med student graduated with a low GPA, they might elect to retake some of the courses in a post-bacc program to boost their numbers. It gives them not only a chance to review material they might’ve missed, but also a way to enhance their application with better grades.

•   It can help strengthen an application. If a student is reapplying to medical school, they might first attend a post-bacc program to get an edge up on the competition.

•   It can be a supporting supplement for students with weaker MCAT scores. If a student has taken the MCAT multiple times with borderline scores, getting strong marks in a post-bacc program can be a helpful ace up their sleeve in the application. It can show a commitment to the area of study, despite low test scores.

Going to a post-bacc program might be the right fit for some students looking to enter a medical graduate program, but is by no means a requirement.

Recommended: How Much Does Medical School Cost?

Pros of a Postbaccalaureate Program

A postbaccalaureate program can offer potential benefits for the right student. Here are some of the pros they might expect on their way to a graduate program:

•   Flexible studying. Postbaccalaureate students have a lot of flexibility in the program. They can usually choose to study full-time or part-time, based on their availability and schedule. Full-time programs are typically a year long and part-time programs take closer to two years.

•   Linkage programs. A number of postbaccalaureate programs are housed within a medical school. While participating in the school’s postbaccalaureate program won’t guarantee admission in its medical program, it could give a student a leg up in the application process.

•   MCAT prep. Some, but not all, postbaccalaureate programs include MCAT tutoring and prep in admission and pricing. For some students, this can be a great opportunity to raise test scores.

•   Networking and experience. In addition to courses, some postbaccalaureate programs will also offer speciality programming and networking opportunities for students. This can be an opportunity to learn more about medical specialties from events and network with fellow students.

•   An introduction, without the long term commitment. A postbaccalaureate program can give students a taste of what medical school might be like. However, instead of studying for years, it could be just a couple months or two years at most. If a student decides med school just isn’t for them during a postbaccalaureate program, it’s less time and money spent.

Cons of a Postbaccalaureate

While a post-bacc program will offer benefits, these programs do have their fair share of drawbacks. Consider these cons before attending a postbaccalaureate program:

•  Not all programs offer federal aid. Postbaccalaureate programs can be pricey, and when it comes to financial aid, some students will be on their own to find a way to pay.

Some, but not all, post-bacc programs will have federal aid packages for students to consider. Prospective students may need to rely on private student loans to pay for their program.

In addition, students may already have student loans to repay from their undergraduate degree. Depending on a student’s loan structure, some students may be expected to make loan payments while enrolled in a post-bacc program. If that’s the case, they may want to consider student loan refinancing, which could result in lower monthly loan payments if they qualify for a lower interest rate. However, it’s important to be aware that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment and forgiveness.

•  A post-bacc could be overkill. While postbaccalaureates can be a great refresher on subjects for students, the demanding curriculum could be too demanding academically and financially. In some cases, students might choose simply to take a few prerequisite courses at a community college instead of paying for a post-bacc program.

•  Losing out on experience. Postbaccalaureate programs offer their own benefits and experience, but enrolling could mean missing out on real-world experiences or work experiences.

•  Post-bacc programs aren’t all built the same. Students shouldn’t expect the same experience from every post-bacc program. Different schools will offer different focuses and programs. Some are more geared towards enhancing a student’s academic record, while others are actively seeking to engage economically disadvantaged or underrepresented students.

•  It doesn’t guarantee admission. Post-bacc medical programs can give students a leg up when it comes to boosting their GPAs and MCAT prep, but they are not a guarantee that a student will gain admission to medical school. If a student is considering enrolling in a postbaccalaureate program solely for admissions purposes, they might want to rethink their motivation.

Recommended: Refinancing Student Loans During Medical School

The Takeaway

Postbaccalaureate programs are completed after a student earns an undergraduate degree. They are often used as a stepping stone for people who are making a career transition or are interested in pursuing higher education, such as medical school.

The choice to enroll in a post-bacc program is deeply personal, just like how a student decides to pay for school. Whether or not a person chooses to head straight into a postbaccalaureate program immediately after undergrad or not, keeping an eye on their current student loans is important.

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


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

FAQ

Is a postbaccalaureate a degree?

A postbaccalaureate is not a degree but rather a one- to two-year program students can enroll in after completing their undergraduate degree. These programs can be a transition for those interested in medical school or another professional type of school, or students who want to pursue a new career or area of study. A post-bacc might give students prerequisites they need, for example.

Is a postbaccalaureate higher than a bachelor’s degree?

A postbaccalaureate is a program and not a traditional degree. It is more advanced than a bachelor’s degree, however, because it’s taken after a student graduates with a bachelor’s degree and wants to pursue further education, such as medical school, or transition to a different career or area of study.

Is a post-bacc worth it?

Whether a post-bacc is worth it depends on the individual student and their goals. For someone hoping to get into medical school who needs certain prerequisites or to strengthen their grades, a post-bacc might be worth it. However, these programs can be expensive and they may not offer federal financial aid, so they aren’t right for everyone.

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

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

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

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


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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOSLR-Q425-004

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Oct
28
2025
A graduation cap and tassel are shown to illustrate the concept of a student loan payoff letter.

When Would You Need a Student Loan Payoff Letter?

By | Debt Payoff, Student Loans, student_loan | Comments Off on When Would You Need a Student Loan Payoff Letter?

A student loan payoff letter may be needed to get a mortgage, refinance your student loans, or acquire other forms of debt. While the name implies you’ve paid off the loan, a student loan payoff letter actually just shows the details of your student loan — including the payoff amount and monthly amount due.

Some people may want or need to take out more than one loan at the same time. For those who took out student loans for college, a student loan payoff letter may come into play. In this guide, we’ll run through what these letters are and some of the commonly navigated steps in understanding their use in managing loans.

Key Points

•   A student loan payoff letter provides the current loan balance, monthly payment amounts, and total payoff amount.

•   This letter can be necessary for mortgage applications, refinancing, or securing other loans.

•   The letter includes a forecast of future interest costs on the loan based on when it is due to be repaid.

•   Managing and paying off student loans may involve earning extra income, using an employer’s student loan repayment assistance program, or refinancing.

•   Selecting the right repayment plan is also an important way to pay off student loans.

What Is a Student Loan Payoff Letter?

Despite what it sounds like, a student loan payoff letter is not a document proving a student loan has been paid in full. Rather, it’s a document generated by the loan servicer stating the current loan balance, monthly payments, and other account information.

Note that a loan payoff letter is not the same thing as a monthly statement. It’s a tool for other lending institutions to weigh how a borrower manages debt on an existing loan that also forecasts future interest costs based on when the loan is due to be repaid.

There is generally a time limit placed on payoff letters — a “good-through date” — after which the amount of interest due on the loan would change.

A student loan payoff letter may be needed when the borrower is still paying off student debt and also applying for a mortgage, refinancing an existing loan, or when they’re planning to pay off the loan.

The payoff letter will play a part in determining an applicant’s debt-to-income (DTI) ratio, which many lenders look at to determine whether the applicant can afford potential future payments on a loan.

A high student loan balance, in relation to income, could limit a person’s loan options. So it pays to pay your debt down as much as you can.

Getting a Student Loan Payoff Letter

A loan payoff letter can be requested from the lender at any stage of a loan’s term, whether the borrower hasn’t yet made an initial payment or they’re close to making their last. Obtaining a loan payoff letter can be done by contacting the lender and simply requesting it.

Lenders’ websites may have an option for requesting these letters via an online form. If that option isn’t available, the borrower may need to call the lender’s customer service line to request the letter.

There may be a fee charged for requesting a payoff letter. If there is one, it should be explained in the loan agreement. The lender’s customer service representative should also be able to verify whether there is a fee for the letter.

Recommended: Student Loan Payoff Calculator

Managing Student Loans

An important factor in determining a student loan payoff strategy is figuring out when the first payment is due, information that the loan servicer will provide.

For most federal student loans, there is a period of time after you graduate, leave school, or drop below half-time enrollment before you need to begin making student loan payments. This period of time is known as a grace period.

The grace period is typically six months, but could be as long as nine months depending on which type of federal student loan a borrower has. It may help to think ahead about how best to take advantage of the grace period.

While it might be tempting to view the grace period as a time to sink extra money into things you want or need, borrowers may want to consider instead saving up for when student loan payments will start coming due.

Interest on Direct Subsidized Loans is paid by the U.S. Department of Education while the borrower is in school at least half-time, during the grace period, or in a deferment period. This might make paying the loan off, in the long run, a little less burdensome.

Borrowers of Direct Unsubsidized Loans are responsible for paying interest during the entire term of the loan. Interest accrues from the time the loan is disbursed to the borrower.

Strategies for paying off student loans quickly may include looking into ways to make money outside your day job, asking if there is a student loan repayment assistance program at your company, and paying down other debt during the grace period.

Borrowers might also want to consider student loan refinancing. With refinancing, you replace your existing loans with a new loan that ideally has a lower interest rate, which could help lower your monthly payment. Just be aware that refinancing federal student loans makes them ineligible for federal programs and protections such as deferment and forgiveness.

Selecting the Right Repayment Plan

There are currently several student loan repayment options for eligible borrowers of federal student loans, depending on the type of loan. However, as a result of the big domestic policy bill recently signed into law, as of July 1, 2026, there will be just two student loan repayment plans for new borrowers.

Here are the plans borrowers can consider until then.

Standard Repayment Plan

For Federal Direct Loans and Federal Family Education Loans (FFEL), loan servicers will automatically place borrowers on the Standard Repayment Plan unless they choose a different repayment plan.

The Standard Repayment Plan gives the borrower up to 10 years (between 10 and 30 years for consolidation loans) to repay, with fixed monthly payments of at least $50 during that time. This repayment plan may not be the best option for borrowers who are considering seeking Public Service Loan Forgiveness (PSLF).

Graduated Repayment Plan

Eligible Direct Loan and FFEL borrowers who expect their income to increase gradually over time may opt for a Graduated Repayment Plan. This plan has the same 10-year term (between 10 and 30 years for consolidation loans) that the Standard Repayment Plan does, but the payment amount differs.

Monthly payments start low and increase generally every two years, will always be at least the amount of accrued interest since the last payment, and will be limited to no more than three times the amount of any previous payment.

Extended Repayment Plan

Borrowers who need to make lower monthly payments over an extended time may want to consider the Extended Repayment Plan, which allows for a 25-year repayment term. This plan is for eligible Direct or FFEL borrowers who have outstanding loan balances of $30,000 or more on each loan.

Monthly payments on this plan can be either fixed or graduated and are generally lower than those made under the Standard or Graduated plans. However, you should expect to pay more in interest over the life of the loan.

Income-Driven Repayment Plans

There are currently a few options for borrowers who might be having trouble making their payments: Income-Based Repayment, Income-Contingent Repayment, and Pay As You Earn (PAYE). Income-driven repayment (IDR) plans allow eligible borrowers to responsibly manage their debt while remaining on track to pay it off.

The plans take into account a borrower’s income, discretionary income, family size, and/or eligible federal student loan balance. Borrowers under an IDR must recertify their income and family size each year or risk losing their eligibility for the plan.

The Takeaway

A student loan payoff letter details the specifics of your student loan, including the amount you owe, your monthly payments, and the payoff amount. A student loan payoff letter may be needed to secure a mortgage, refinance your student loans, or acquire another form of debt, such as a personal loan.

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


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

FAQ

Do you need a student loan payoff letter?

You typically need a student loan payoff letter if you are applying for a mortgage, refinancing your student loans, or taking out another type of loan such as a personal loan. A payoff letter states your current student loan balance, monthly payments, and other account information.

Where do I get a payoff letter?

You can get a payoff letter from your loan servicer. You may be able to request a letter through a form on the servicer’s website. If not, you can call the loan servicer’s customer service number to ask for one.

Do I get a letter when I finish paying off my student loans?

Yes, you should receive a letter when you finish paying off your student loans, stating that the loans have been paid in full. Most loan servicers send out such a letter within a month to 45 days of your final payment. If you don’t receive a final payoff letter, call the servicer to ask for one. It’s a good idea to keep this letter for your records.

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

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


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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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27
2025
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Should Parents Pay for College?

By | Student Loans, student_loan | No Comments

The question of whether parents should pay for their children’s college education is complex and multifaceted. It involves not only financial issues (namely, can you afford to?) but also ethical and personal considerations. While many parents aspire to pay 100% of their children’s college expenses to allow them to graduate debt-free, others feel that it’s important for kids to have some skin in the game.

If you’re weighing this issue, you’ll want to consider both the reasons for and against paying for your kid’s college education. Here’s a closer look at both sides of the argument.

Key Points

•  Whether parents should pay for college depends on their financial situation and personal values.

•  Parental support can give students a head start on their professional and financial goals.

•  Student financial contributions can build a sense of responsibility and financial accountability.

•  Paying for a child’s college education may risk parents’ retirement and financial security.

•  College financing options include savings, grants, scholarships, part-time jobs, and loans.

Why Parents Pay for College

Some parents feel it’s their duty to cover the cost of their child’s college education. Here’s a look at some arguments in support of that viewpoint.

Giving Your Child a Head Start

The average student borrows over $30,000 to pursue a bachelor’s degree, according to the Education Data Initiative. That’s no small sum. Students who graduate debt-free generally have a leg-up on achieving their professional and financial goals. They can consider taking a job based on their career aspirations, rather than the one that pays the most. They also have the freedom to put all of their financial resources into other goals, such as building an emergency fund or buying a home.

Helping Your Child Stay in School

When you send your child off to college, you likely expect them to emerge with a bachelor’s degree. But the national college graduation rate is only around 61%. Among those who leave school, a significant number cite financial reasons for their decision. Taking the college bill off your child’s plate may help them stick to the program.

Allowing Your Child to Focus

Getting a job can help your student cover some of their tuition costs, but if they have to work too many hours, it can make it difficult for them to focus on their studies. Paying for their education may give them a better chance of getting good grades and possibly qualifying for academic scholarships. They might even be able to take on a bigger course load every semester and graduate early.

💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs

Why Parents Don’t Pay for College

While many parents believe they should pay for college, others feel that students should be responsible for investing in their own education. Here’s a look at some reasons why some parents decide not to pay for college.

It Could Threaten Your Retirement

If you can afford to save for a healthy retirement and pay for college, you’re in good shape. But if you feel like you have to choose between the two, paying for college and not saving for retirement could force you to work longer or leave the workforce with less money than you might need.

It Builds Responsibility and Accountability

Having your child contribute to their education through part-time jobs and loans can help foster a sense of responsibility and ownership. They may value their education all the more — and work as hard as they can — knowing how much this opportunity costs.

It’s a Good Teaching Moment

Helping your child figure out their college financing and teaching them good financial habits now can help them continue those habits after they graduate. If you cover everything for them, they may have a difficult time transitioning to life after college and may end up coming back to you for help.

How Parents Paying for College Can Get Financing

If you’re interested in footing some or all of the bill for your child’s college education, you have a few different funding options. Here are some to consider.

Savings

One way to help students pay for college is to put some money aside each month in a 529 plan. Even if your child is already in high school, you can still open a 529 plan and take advantage of the federal (and sometimes state) tax benefits. Money in a 529 account grows tax-deferred and withdrawals are tax-free when used for eligible educational expenses. Any amount saved for college can reduce your child’s future student loan debt.

Parent PLUS Loans

The U.S. Department of Education offers PLUS Loans for parents that you can qualify for as long as you don’t have an adverse credit history. Parent PLUS Loans give you access to certain benefits, including the option to defer repayment while your child is enrolled at least half-time and for an additional six months after your child graduates. However, these loans also charge relatively high interest rates and upfront loan fees.

Recommended: Should You or Your Child Take Out a Loan for College?

Private Student Loans

If you have excellent credit and a strong, steady income (and your child doesn’t get enough federal aid), you may want to explore getting a student loan for parents with a private lender. Typically, you can get prequalified with a soft credit check with many lenders online to see what rate you qualify for and compare it to other lenders and Parent PLUS Loan options.

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

Financing Options for Your Child

If you’ve decided that you can’t or don’t want to fully pay for your child’s college education, here are some ways that your child can get the funding they need.

Grants and Scholarships

By completing the Free Application for Federal Student Aid (FAFSA®), your child will automatically be considered for many federal, state, and institutional grants and scholarships. Scholarships are also available through private organizations and companies. To apply for these, your student will likely need to fill out a separate application for each one. To find more “free money” for school, your student may want to use an online scholarship search tool.

Part-Time Job

One good way to pay for school, especially if your child has a full or partial scholarship lined up, is to work part-time while in school. This can help pay for living expenses, books, or possibly even tuition. Working full-time during the summers can help to pay for the next year’s worth of expenses.

Student Loans

College students have a choice between federal and private student loans. In general, federal loans are better-suited for undergraduate students because they don’t require a credit check, have relatively low-interest rates, and offer access to income-driven repayment and loan forgiveness programs. Your child can apply for federal student loans by completing the FAFSA.

If federal student loans and other aid isn’t enough to cover your child’s full cost of attendance, however, private student loans may be another option. Just keep in mind that you may need to cosign the loan application to help them get approved.

The Takeaway

The question of whether parents should pay for college is a personal one with valid arguments on both sides. Ultimately, the decision depends on your individual financial situation, retirement goals, and philosophical beliefs about your child’s responsibility.

Many parents choose to contribute to give their child a head start and allow them to focus on their studies, while others prioritize their own financial security and believe it’s important for their child to have “skin in the game.” There are various financing options available for both parents and students to help cover college costs, so it’s important to explore all avenues and create a plan that works best for your family.

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


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Are parents supposed to pay for college?

There’s no universal “yes” or “no” answer to this question. Whether parents pay for college depends on many factors, including their financial situation, retirement goals, the child’s academic performance, and personal beliefs about financial responsibility. Some parents feel a strong obligation to cover college costs to help their children avoid debt and focus on studies, while others believe contributing to education builds responsibility.

Do parents who make $120,000 still qualify for FAFSA?

Yes, parents making $120,000 may still qualify for financial aid, as there is no income cutoff for the FAFSA®. Financial aid eligibility is based on the Student Aid Index (SAI), which takes into account a variety of factors beyond just income, such as family size and assets. While a higher income can make it harder to get need-based aid, a student can still qualify for federal student loans and merit-based programs. Completing the FAFSA is always recommended to explore all available financial aid options. federal

Is it worth paying off your child’s student loan?

Paying off your child’s student loan can be worthwhile if you’re financially secure and it won’t impact your retirement or emergency savings. It can relieve your child’s financial stress and help them build a stronger financial future. However, if it strains your budget and limits your ability to meet personal goals, it may be better to offer partial help — like contributing to monthly payments — rather than paying off the entire balance.

How does a middle class family pay for college?

Middle-class families often combine several strategies to pay for college. These include applying for federal and state financial aid by completing the FAFSA®, seeking out scholarships and grants based on academic merit, talents, or specific backgrounds, utilizing 529 college savings plans, and having students work part-time jobs. Many also consider federal student loans, and sometimes private student loans, to cover remaining costs. It’s often a blend of savings, financial aid, and loans that makes college affordable.

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.


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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Oct
16
2025
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When to Apply for Student Loans: Student Loan Deadlines

By | Going to College, Student Loans, student_loan | Comments Off on When to Apply for Student Loans: Student Loan Deadlines

If you need funding for college, you may be wondering whether a student loan is the right choice for you. And once you’ve made the decision to take out a student loan, you might want to know the differences between federal vs. private student loans and the deadlines associated with each.

Keep reading to learn all that information and more, so you can determine how and when to apply for student loans.

Key Points

•  Federal student loans require filling out the FAFSA®.

•  Three deadlines exist for FAFSA: college, state, and federal.

•  Federal loans provide fixed interest rates, deferment options, and forgiveness programs.

•  Private loans offer flexible terms but may lack protections found in federal loans.

•  Apply for federal loans first, then consider private loans if more funding is needed.

What Are Federal Student Loans?

Federal student loans are offered by the U.S. government and are designed to help students pay for higher education. Interest rates are fixed for the life of the loan and are set annually by the U.S. Education Department. Borrowers with financial need can qualify for subsidized loans. With these loans, the federal government pays the interest while you are in school, during your six-month grace period, and during any deferment periods. With an unsubsidized loan, you are responsible for all the interest that accrues.

Federal student loans are generally considered a better option than private loans because they offer more borrower protections, such as income-driven repayment and potential forgiveness programs. However, the amount you can borrow each year is limited.

To apply for a federal student loan, you must first complete the Free Application for Federal Student Aid (FAFSA®).

What Are Private Student Loans?

Private student loans are student loans that are offered by private lenders like banks or credit unions to help people pay for the costs associated with college. Similar to applying for an auto loan or mortgage, private student loans require a loan application and approval from the lender.

You can often get a private student loan for up to the full cost of attendance minus any other financial aid. The amount a private lender will grant you, however, will depend on financial factors like your income, credit score, and the credit history of yourself or your cosigner (if applicable).

Unlike federal student loans with fixed interest rates and terms, the fees, repayment plans, and interest rates for private student loans are set by the individual lender. Because of this, it’s important to “shop around” with private lenders until you find rates and terms that meet your financial needs.

Private student loans can help pay for tuition, books and supplies, transportation, and fees. Using your student loan for housing or room and board expenses is also an option.

Recommended: Examining the Different Types of Student Loans

Private vs Federal Student Loans

When it comes to private vs. federal student loans, there are a few features and specifics that can help you make your decision:

Federal Student Loans Private Student Loans
Funded by the federal government. Terms and conditions are set by law. Funded by private student loan lenders like banks, credit unions, state agencies, or online lenders. Terms and conditions are set by the lender.
Payments aren’t due until after you graduate, leave school, or change your enrollment status to less than half-time. Payments can be due while you’re still in school, but deferment is sometimes possible.
The interest rate is fixed, based on the federal interest rate at the time, and often lower than private loans. The interest rate can be fixed or variable and is based on your individual financial circumstances.
No credit check is required to qualify, except for Direct PLUS Parent Loans. Established credit and/or a cosigner may be required to qualify.
Interest may be tax deductible. Interest may be tax deductible.
Loans can be consolidated. Loans cannot be consolidated, but can be refinanced.
You may be able to postpone or lower your payments. You need to check with your lender to see if you can postpone or lower your payments.
There are several different repayment plans. You need to check with your lender about repayment plans (if any).
There is no prepayment penalty fee. There could be a prepayment penalty fee.
You may be eligible for loan forgiveness if you work in public service. Many private lenders don’t offer loan forgiveness.

Should I Get a Student Loan?

The question of whether or not you should get a student loan is personal and depends on your unique financial situation.

For starters, when deciding whether it’s a good idea to take on college debt, it helps to ask whether a degree would be valued in your desired career.

In addition, there are a few other steps you can take to see if taking out a student loan will be worth it in the long run:

•   Look up the tuition, room, board, and other costs of attending your desired college(s).

•   Create a budget to determine whether you can afford those costs after factoring in financial alternatives like scholarships, savings, family help, etc.

•   Use a student loan payment calculator to assess how much you can expect to pay in student loan debt when you graduate.

•   Research salary levels in your desired field to see if the expected compensation will cover the cost of student loan payments over time.

•   Assess how comfortably you can live at your expected income level, factoring in payment estimates from the student loan calculator.

Once you’ve whittled down this information, you should have a better idea of whether taking out student loans is aligned with your long-term financial goals.

Other Steps to Take Before Securing Student Loans

Exploring ways to pay for school without taking on student loan debt is the first line of defense in college financial planning.

Since this isn’t always an option, you can minimize your reliance on loans by taking the following steps:

1.    Pull funds from a 529 college savings plan that you or your guardians may have set up for future college costs.

2.    Apply for scholarships and grants to offset the cost of tuition, room, board and other expenses.

3.    Fill out a Free Application for Federal Student Aid (FAFSA®) form to start the process of securing federal grants or federal student loans and use this money to cover as much of your tuition as possible.

4.   Opt for Federal Direct Subsidized Loans if you qualify.

5.    Offset your remaining college costs with unsubsidized federal loans.

Finally, once you’ve exhausted the five options above, you might turn to a private student loan to cover any remaining costs associated with your college education.

When Is a Private Student Loan a Good Option?

There are some instances where a private student loan might be an option worth considering:

•   You’d like to cover the gap between your financial aid package/scholarships and your college expenses.

•   You don’t have specific financial need requirements, but still want help subsidizing the cost of college.

•   You’re looking to shop around with lenders to compare multiple loan options before selecting.

•   You have strong credit or a cosigner with a strong credit score who could potentially help you qualify for a more competitive interest rate.

•   You’re looking to consolidate or refinance your student loans and already have private student loans or a mix of private and federal loans.

Deadlines for Federal Student Loans

To apply for federal student loans, students must fill out the FAFSA. There are three separate deadlines to consider:

1. The College or University Deadline

College deadlines for filling out the FAFSA will vary based on the school itself, but typically occur before the academic year begins. Each college will have its own FAFSA deadline, so visiting its financial aid website for this information is an important first step.

2. The State Deadline

Your home state sets the second deadline when it comes to FAFSA applications. The deadlines are listed on the FAFSA form itself, or you can visit the state deadline list on StudentAid.gov.

3. The Federal Deadline

The U.S. Education Department sets the final deadline on the list. The federal deadline for the 2026–27 FAFSA is June 30, 2027.

Federal student aid programs have a limited amount of funds available, so the sooner you can submit your application and avoid encroaching on the hard deadlines, the better.

Deadlines for Private Student Loans

When applying for student loans from a private lender, there isn’t typically a set deadline in place. Still, this doesn’t necessarily mean you want to wait until the last minute, since you’ll need plenty of time before tuition, housing, and other fees are due to secure the funds from your student loan.

You can apply for a private student loan directly from the desired lender’s website. It’s wise to apply after you’ve made your final school decision and once you know how much you need to borrow. This prevents you from having to submit multiple student loan applications for all the schools you’re considering.

Some private student loan lenders can approve your application in a few minutes after you apply online, but it can sometimes take up to two weeks for full approval. That’s why it’s smart to keep your eyes on your school’s payment deadlines and ensure your funds will be disbursed on time.

Named a Best Private Student Loans
Company by U.S. News & World Report.

What Type of Private Student Loan May Be Right for You?

Considering the following factors can help you determine which type of private student loan makes the most sense for your personal situation:

•   Interest rates and fees

•   Payment flexibility

•   Lender credibility

•   Ability to refinance or release a cosigner

•   Whether the lender sells their loans

•   Repayment benefits

•   If the lender is a preferred partner of your college or university of choice (this information is usually found on the school’s website)

Because the rates and terms on a private student loan are determined by the individual lender and are impacted based on the borrower’s personal financial history, finding a private student loan that fits your needs and budget may require a bit of shopping around.

The Takeaway

There are several factors that determine whether you should get a student loan — from what you can afford after factoring in financial alternatives like scholarships, savings, family help, etc. to how comfortably you can live with your student loan payments after graduation.

Generally speaking, it’s wise to apply for federal student loans first and turn to private student loans once you’ve exhausted other alternatives. This is because private student loans are not required to follow the same rules as federal student loans, and may lack benefits like income-driven repayment or the option to apply for Public Service Loan Forgiveness.

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 there a deadline to apply for student loans?

There is a deadline to apply for federal student loans, which requires you to complete the Free Application for Federal Student Aid (FAFSA). There are three deadlines to be aware of: the college/university deadline, the state deadline, and the federal deadline. Private student loans typically do not have a set deadline, but it’s advisable to apply well in advance of tuition and other fees being due.

When should I apply for student loans for fall 2026?

For federal student loans, you should aim to complete the 2026–27 Free Application for Federal Student Aid, known as the FAFSA®, as soon as possible (it is already available online at StudentAid.gov.). This can help maximize your eligibility for federal aid. While private student loans don’t have a strict deadline, it’s advisable to apply several months before fall 2026 tuition and other fees are due to ensure the funds are disbursed on time.

What date are student loans due?

Most federal student loans have a grace period of six months after you graduate, leave school, or drop below half-time enrollment before you have to start making payments. The specific due date for your first payment will be provided by your loan servicer. For private student loans, the due date can vary by lender; some may require payments while you’re still in school, while others offer deferment options. Always check with your private lender for your specific repayment terms.

Do parents who make $120,000 still qualify for FAFSA?

There is no income cut-off for applying for the Free Application for Federal Student Aid (FAFSA), so parents making $120,000 are eligible to apply. A student’s eligibility for aid depends on a comprehensive calculation of need, which factors in the cost of attendance at your chosen college and family size, not just income.

Even if you don’t think you’ll qualify for federal financial aid, it’s important to fill out the FAFSA, as some colleges and universities require this form to qualify for institutional aid, including merit-based scholarships.

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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.


External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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