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College is expensive, with tuition and fees currently averaging $41,540 for students at private universities — that’s $166,160 for all four years. Tuition and fees at public colleges were lower, but still steep — averaging $29,150 for out-of-state students and $11,260 for in-state students.

Keep in mind that these numbers don’t include all the other necessary expenses of college life, such as room and board, books, supplies, clothing, and entertainment. At the same time, it’s difficult for college students to earn a lot during these years, given the demands of school.

Fortunately, there are numerous options for financing the cost of higher education, plus ways to trim your expenses while you’re in college and save money. Read on to learn how.

Saving Money as a College Student

Luckily, once you adopt a money-conscious mindset, you’ll likely find there are many ways to save money in college. Plus, building the habit of budgeting now can serve you well as you move on to life and enter the real world. Here are some tips for how to save money in college.

1. Take Advantage of Student Discounts

Lots of businesses and service providers offer special deals to students. You can buy clothing, shoes, and furniture for your dorm or apartment for less at certain retailers with a valid student ID.

Entertainment is another area where you can save. Some movie theaters offer student discounts at some locations or on certain days. Some museums and sports events offer discounted access to students as well. You may also find discounts on certain music and video streaming sites. And you can save on travel with discounts at certain car rental and car insurance companies, as well as on trains and buses.

2. Buy Your Books (and Other Necessities) Used

Renting or buying used textbooks is a classic way to save money in college. You can find used books at many campus bookstores and through online retailers.

Used books often come at a fraction of the price of a brand new book, and many are in perfectly good condition. Plus once you’re done, you can try to resell the book.

You can save by buying other items second-hand as well. You might try looking for used clothing and furniture at thrift stores, garage sales, estate sales, flea markets, or on sites like Craigslist, OfferUp, and Facebook Marketplace.

Recommended: 33 Ideas for Saving Money While Dorm Shopping

3. Cook Meals at Home

Food can eat up a big chunk of your college budget, since students with limited cooking skills and small kitchen spaces may be tempted to eat out for every meal. But restaurant tabs can add up quickly.

Shopping wisely for your own ingredients and making simple meals in your living space can help you save a lot of money — and leftovers from one home-cooked meal can be lunch the next day, for even more savings.

4. Serve as an RA

Becoming a resident assistant (RA), can not only be rewarding but also help you cut down on living expenses. RAs are a sort of big brother or sister in dorms, organizing social events, advising younger students, enforcing rules, and mediating disagreements. Many RAs receive free or discounted housing and meals, and some also get a stipend.

5. Cut Out the Extras

One of the best tips to save money in college is to look for areas in your budget where you can trim by choosing a less expensive option.

If you frequent coffee shops, for example, perhaps you can brew your own java a few days a week, or find a less fancy option with free refills. Instead of always going out to bars with friends, maybe you can take turns hosting get-togethers in your on- or off-campus apartments. If you belong to a fancy gym, you might search for lower-cost options on campus, join a sports league, or jog/run outdoors to stay on budget.

Instead of a spring break trip to an all-inclusive resort a plane-ride away, consider a group camping trip or sharing a house at a nearby lake. Get creative — the trip will likely be just as fun.

6. Pay Your Bills on Time

When you pay all of your bills by the due date, you can avoid unnecessary fees and help keep interest from piling up. If you’re worried about forgetting, you may be able to set autopay through your credit card, the service provider itself, or your bank.

Staying on top of bills not only avoids added costs but may also help keep your credit report in good shape. That could help you qualify for better terms on loans and credit cards down the line.

7. Take Advantage of Family Discounts

You may have left home, but maybe don’t cut the cord completely just yet. Many phone and car insurance plans are cheaper if you sign up with family members, rather than as an individual. If your family is on board, this can be one of the easiest ways to go about saving money in college.

If you’re under age 26, you should be eligible to stay on your parents’ health insurance plan, which may be less expensive than purchasing your own. You might also see if your parents will unofficially keep you on various “family plans” by sharing their logins for things like video streaming services.

8. Sign Up for Cash Back Credit Cards

If you’ve decided to use a credit card, you might as well earn some cash back while you’re at it. As long as you pay your bill in full each month to avoid fees and interest, you may benefit from a reward credit card. You could earn points that can be applied as a statement credit, sent to you in check form, or put toward merchandise or gift cards.

When signing up for a cashback credit card, look for one with a low or no annual fee that offers the highest amount of cashback possible. And remember, any benefits will likely evaporate if you do not pay your balance in full every single month.

9. Frequent the Library

Instead of purchasing books, look for them at your local or on-campus library. Your library may also offer magazines and movies so you don’t have to spend money on those, either. Many public libraries now offer digital loans you can download and enjoy instantly on your favorite device.

You might also consider using the library as a free and quiet place to study instead of spending money at the local coffee shop. To make your library experience even more enjoyable, invite friends to form a study group.

10. Give Up Your Car

If you live on campus, you may not actually need a car and all its associated monthly costs (insurance, repairs, gas, and parking, to name a few). Look into free campus shuttles and public transportation to get you where you need to go.

If you need to use a taxi or rideshare service, you can comparison-shop to find the cheapest option, and if you’re looking to take a longer trip, split the cost of a rental car with friends.

11. Look Into Work-Study Options

Work-study is a need-based federal program that provides student-friendly, part-time jobs to help cover school expenses. As a bonus, the work experience may benefit you when it comes time to jump into the job market.

To apply for work-study, you must fill out the Free Application for Federal Student Aid (FAFSA) and indicate that you would like to be considered for work-study. Selecting this option, however, doesn’t automatically mean that you will receive work-study as part of your financial aid package. Acceptance depends on a few factors, including when you apply (earlier is generally better), your level of financial need, and the school’s funding level.

12. Look for Discounted Banking Products

Some banks offer college savings and student checking accounts that don’t charge the same types of fees or have the same balance requirements as normal accounts do.

It’s a good idea to shop around and look into different banks (including banks with local branches and online banks) and compare what kinds of benefits they are offering to college students before making your decision.

13. Take Advantage of Free Campus Activities

Colleges often host a number of different activities for students throughout the week. There might be dances, plays and musicals, sporting events and more, all for free.

By choosing these activities instead of going off-campus, you can save money without sacrificing on fun.

14. Stay Focused

Though college can be a lot of fun, you also need to keep your eye on the prize (graduation) and stay on top of your schoolwork.

Taking more than four years to graduate could blow your higher education budget and negatively impact your earning potential. Some hyper-focused students even graduate in fewer than four years.

Recommended: Return on Education for Bachelor’s Degrees

15. Buy in Bulk

This one requires a little price sleuthing, but for nonperishable items you use a lot of, you’ll typically save money buying in bulk. This is true whether you have access to a membership at a bulk goods store like Costco or Sam’s Club, or you’re choosing between package sizes at a superstore like Target or Walmart. If you can’t use or store an enormous quantity of, e.g. toilet paper, consider going shopping with a friend and splitting the goods.

16. Turn in the FAFSA Every Year

Every year, you need to fill out your FAFSA form to qualify for financial aid. If you don’t turn it in, you could be throwing away free money.

While in the past the form was long and somewhat complicated, a new, simplified FAFSA form recently debuted. There were also some changes in financial aid eligibility rules, making it easier for some families to qualify — so definitely don’t skip the FAFSA.

17. Sell Your Textbooks

Once you’ve completed your courses for the year, you can take the books you purchased and resell them to get some of your money back.

To get the best possible price, compare quotes from your campus bookstore against the going online sale rate. Websites like BookScouter help you compare prices before you list your books for sale.

18. Consider Printing Expenses

You may already pay for use of on-campus printers with your student fees. Don’t spend additional money on printers, ink, and paper if it’s cheaper to utilize the printing resources at the library or other places around your campus.

19. Look Into Local Restaurant Deals

To enjoy a nice meal out while saving money, keep your eye out for deals at local restaurants. Many establishments offer happy hour specials or special discount nights.

You may also be able to access valuable coupons by downloading the restaurant’s app, signing up for their emails, and/or filling out surveys printed at the bottom of your receipts. There are also sites that offer restaurant coupons, such as Restaurant.com.

20. Find the Free Food!

You can’t get cheaper than free. Departments and organizations on campus will often offer free food like pizza and sandwiches to entice students to attend their events.

Keep an eye out for signs around campus. You could score some free dinner and you might find some interesting people or a new hobby while you’re at it.

💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

Other Ways to Finance College

Saving can get you far. But you may still need help coming up with the full cost of attendance for college. Fortunately, by filling out the FAFSA, you will automatically be in the running for federal financial aid, which may include grants, scholarships, work-study, and subsidized federal loans.

It can also pay to research private scholarship opportunities online and apply for any you think you might qualify for. Though each award may be small, if you are able to get a few scholarships, it can add up to a significant sum.

You may then want to fill in any gaps in funding with different types of student loans, such as unsubsidized federal loans and, if necessary, private student loans.

Private student loans are available through banks, credit unions, and online lenders. Loan limits vary by lender, but you can often get up to the full cost of attendance, which is more than you can borrow from the federal government. Interest rates may be fixed or variable and are set by the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, however, that private student loans typically have higher interest rates than federal loans, and they lack the protections of federal loans, such as deferment, public service loan forgiveness, and forbearance.

The Takeaway

College can be a very expensive proposition, but you can do your part to minimize costs by saving money while pursuing your degree. Tactics can include using your student status to snag discounts, buying in bulk, and snagging cash back, among others. As you budget for college, it’s wise to look into funding via grants, scholarships, and federal and private student loans.

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

FAQ

What is the 50/30/20 budget rule in college?

The 50/30/20 budget rule can be applied to life in college and after. It says to put 50% of one’s cash toward the musts of life, 30% toward the wants, and 20% toward saving or additional debt payments.

How to save the most money while in college?

It’s possible to save money when in college using a variety of techniques. These can include using student discounts, cutting back on discretionary spending and finding free food and entertainment on or near campus, snagging cash back rewards, and exploring work-study options.

How can I get more help with college costs?

To save on college costs, file the FAFSA every year to see what grants and scholarships you may be eligible for; also check with the financial aid office. Consider work-study and RA opportunities as well. Look for discounted goods and services just for students, too, such as fee-free banking and reduced student prices at stores near campus.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

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.

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).

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

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

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

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOISL-Q325-138

When attending college, you may need to decide whether to pursue a Bachelor or Arts (B.A.) or a Bachelor of Science (B.S.) degree. Generally, a B.A. is more focused on the arts and humanities, while a B.S. is more centered around science and math.

Depending on the school and program, you may be limited to getting either a B.S. or a B.A. With some majors, however, you may have a choice. Whether you should go with a B.A. or B.S. will depend on both your educational and career goals. Read on for a closer look at a B.A. vs. a B.S., including how it can affect your coursework and future job options.

What’s the Difference Between a B.A. and a B.S.?

A Bachelor of Arts and a Bachelor of Science are both generally four-year undergraduate degree programs. Students completing either of these degrees will typically need to take similar general education requirements, such as courses in English, mathematics, natural science, writing, history, and social science.

A B.A. focuses on traditional liberal arts subjects like history, literature, art, philosophy, the social sciences, and other topics in humanities. It will provide a student with a more diverse course of study and may require fewer credits than a B.S. degree.

On the other hand, a B.S. program emphasizes science, engineering, technology, and math, and is more focused on one subject. When looking into a B.A. vs. B.S., you’ll want to decide what kind of job or graduate school program you want to pursue after graduation.

For instance, if you have a choice of earning either a B.A. or a B.S. in psychology and know you eventually want to go into one-on-one counseling with patients, you may want to choose a B.A. degree.

If, on the other hand, your plan is to earn a Ph.D. and pursue a career in research, then a B.S. may be a better choice. Keep in mind that some colleges offer students the opportunity to earn a B.A. or a B.S. in the same major, while other colleges don’t offer that choice.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

Which Degree Is Better?

When looking at a B.A. vs. a B.S., you may be wondering which one is better and more attractive to employers. In reality, it may not make much of a difference which one a student earns, as long as they have a bachelor’s degree in general.

Some employers may want graduates with a broader view of liberal arts topics, while others might prefer candidates who honed in on a particular subject. However, a candidate would probably not lose a job opportunity just because they had the “wrong” type of bachelor’s degree.

When prospective employers and graduate school admissions officers are looking at candidates, they generally care much more about factors like a student’s grades, the courses they took, the major they enrolled in, and which school they went to.

They may also care about whether or not a student completed internships and work-study programs related to their major.

Recommended: Return on Education for Bachelor’s Degrees

Finding a Good B.A. or B.S. Program

Instead of getting hung up on the difference between a Bachelor of Arts and a Bachelor of Science, you may want to instead dive into the content and quality of the curriculum you could be studying for the next four years. You can see if the curriculum sounds interesting to you and if it would be applicable to your future career.

You may also want to evaluate all the schools you want to apply to or have gotten into before making a decision.

It’s a good idea to research a school’s reputation through a site like College Board® to determine how hard it is to get into, who the alumni are, what kinds of opportunities their graduates have pursued, and the strength of their programs.

Of course, it’s critical to investigate the location, enrollment size, and cost of attendance as well. You may find it helpful to create a shortlist of potential colleges/bachelor’s programs and then rank what’s most important to you.

For example, if you want to go to a competitive grad school, you may want to emphasize selectivity for your undergraduate program.

If you’re concerned about how you’re going to pay for college, you may also want to look into programs that are less expensive or that tend to offer scholarships to students. You can also research your options for private and federal student loans to pay for school.

If it’s feasible, it can also be helpful to visit and tour potential schools. This gives you a chance to get a feel for the school and student body, and get all your questions answered. For example, you may want to ask about job and career support, including job fairs and on-campus interview opportunities, so you know you will have support and be set up for success after you graduate.

Recommended: How to Pay for College

Why Get a Bachelor’s Degree?

B.A. and B.S. degrees can be very similar. What matters in most cases is simply getting a bachelor’s degree. This can open you up to a broader range of professional opportunities, allowing you to fulfill your career goals as well as earn more money.

You can choose to go directly into the workforce following graduation and have an advantage over candidates who only have a high school diploma (or less), or you could choose to go to graduate school to earn an advanced degree.

Studies have shown that those with college degrees tend to earn significantly more than those with only a high school diploma, with the figure being as much as 86% higher in recent years.

There are a number of personal benefits as well. Many students find college to be very fulfilling because they gain valuable skills like teamwork and time management.

They also learn how to take on challenges, which can improve their self-esteem. Research suggests that people with college degrees are more likely to volunteer, donate to charitable organizations, vote, and contribute to their communities than those without college degrees. They also tend to report higher levels of happiness.

Making Your College Decision

A B.A. and a B.S. are both four-year undergraduate degrees that often require similar general education requirements, like math, English, and history. Broadly, B.A. degrees are more focused on liberal arts subjects, while B.S. degrees usually emphasize subjects like math and science.

Some schools may offer a B.A. and B.S. in the same subject, but with slightly different degree requirements, such as a B.A. or a B.S. in chemistry or computer science. The B.S. program typically has more required courses than the B.A. program.

Once you determine what degree you want to get and where you want to get it, you’ll likely also need to figure out how you’re going to pay for it. Fortunately, you have options, including financial aid (which may include grants, scholarships, work-study, and subsidized federal loans), as well as unsubsidized federal loans and private student loans. For federal financial aid, filling out the FAFSA is a smart first step.

Private student loans can be used to finance your education or fill any gaps in funding. Just keep in mind that the lowest interest rates typically go to those with higher credit scores, these loans generally have higher rates than federal loans, and private loans don’t offer the same benefits (such as forbearance or public service loan forgiveness) as federal loans.

The Takeaway

The difference between a B.A. and B.S. degree is typically that a B.A. is centered on liberal arts topics, while a B.S. is more focused on science, tech, and math. Both degrees are undergraduate and can help a student prepare for a career or a postgraduate degree. Whichever degree you choose to pursue, also think about how to fund your college education.

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

Which is better, a B.A. or B.S. degree?

Neither a B.A. nor a B.S. is better, in and of itself. It’s really a matter of figuring out which path is most interesting to you, will help you meet your goals, and will suit your circumstances.

Is a B.S. more respected than a B.A.?

When it comes to college degrees, it’s not a matter of either a B.S. or B.A. being more respected. Each has its strengths. If, say, you are applying to graduate school to pursue creative writing, a B.A. might be preferable. If you are looking for a job in engineering, a B.S. could be a great asset.

Do med schools prefer a B.A. or a B.S.?

Many med schools are open to students who have completed either a B.A. or a B.S. What’s most important is that they have completed whatever prerequisites the med school requires before starting its program.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

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.

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).

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

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

SOISL-Q325-133

If you’re facing a financial squeeze, you may be able to get a temporary break on repaying a student loan with student loan forbearance. The catch is you could end up owing more. That’s because interest accrues on nearly all federal student loans in forbearance and on all private student loans, if the private lender offers such a program.

Even though a payment reprieve through forbearance can bring short-term relief, it might be worth exploring alternatives, especially since the amount of time you can put your loans in forbearance will be shortened for loans issued after July 1, 2027 due to recent legislation.

Read on to learn how student loan forbearance works — and other options you may want to consider.

What Does Student Loan Forbearance Mean?

What is forbearance? It’s an approved period during which a borrower is allowed to temporarily suspend loan payments.

There are two main types of federal student loan forbearance: general and mandatory.

General Forbearance

With general forbearance, sometimes called discretionary forbearance, your loan servicer will decide whether or not to grant your request for forbearance if you are unable to afford your loan payments.

General forbearance is currently available for Direct Loans, Federal Family Education Loan (FFEL) Program loans, and Perkins Loans for up to 12 months at a time. Borrowers still experiencing hardship when the forbearance period expires can reapply and request another general forbearance.

If you borrow a loan after July 1, 2027, however, you can only use forbearance for up to nine months during any 24-month period.

Mandatory Forbearance

Your loan servicer is required to grant you forbearance if you meet certain criteria including:

•   You are serving in a medical or dental internship or residency program, and you meet certain requirements.

•   The total amount you owe each month for all federal student loans is 20% or more of your total monthly gross income, for up to three years.

•   You are serving in an AmeriCorps position for which you received a national service award.

•   You are performing a teaching service that would qualify you for teacher loan forgiveness.

•   You qualify for partial repayment of your loans under the Department of Defense Student Loan Repayment Program.

•   You are a member of the National Guard and have been activated by a governor, but you are not eligible for a military deferment.

Direct and FFEL loans qualify for mandatory forbearance for any of the above reasons. Perkins Loans also qualify if a borrower has a heavy student loan debt burden.

Mandatory forbearance is to be granted for no more than 12 months at a time, but it can be extended if you continue to meet eligibility requirements.

As mentioned, forbearance will be capped at nine months in any two-year period for loans issued after July 1, 2027.


💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi. Note that refinancing federal loans means losing access to federal programs. Also, you might pay more interest if you refinance with an extended term.

Private Student Loan Forbearance

What is forbearance for private student loans? Some private lenders offer this option.

If you’re having trouble making private student loans payments, contact your loan holder immediately. They might offer you interest-only payments, interest-free payments, or a change in interest rate. It’s important to get in touch with your loan provider before you miss a payment and risk your loan going into default.

Who Should Use Student Loan Forbearance?

Forbearance on federal student loans may be a good choice if you don’t qualify for deferment or an income-driven repayment plan, and your hardship is temporary.

What is student loan deferment? While both student loan deferment and forbearance offer the opportunity to press pause on your student loan payments, there’s a key difference: During deferment, you may not have to pay the interest that accrues on Direct Subsidized Loans, Federal Perkins Loans, and the subsidized portion of Direct Consolidation Loans or FFEL Consolidation Loans. For loans issued after July 1, 2027, deferment for economic hardship and unemployment will no longer be available.

With private student loans, borrowers anticipating trouble making payments would be wise to contact their loan servicer to seek a solution. Whether the lender calls it deferment or forbearance, interest typically accrues and it is the borrower’s responsibility.

Is Student Loan Forbearance Bad?

As a stopgap measure, no.

Student loan forbearance certainly beats having late payments or a loan default on your credit reports. Most federal student loans enter default when payments are 270 days past due, but federal Perkins Loans and private student loans can go into default after just one missed payment.

If you default on a student loan, the entire balance of a federal student loan (principal and interest) becomes immediately due.

If your federal student loan is in collections, and you do not enter into a repayment agreement or you renege on the agreement, the collection agency can garnish your wages — up to 15% of your disposable pay.

As if that weren’t enough of a deterrent, borrowers in default can expect to have part or all of their tax refund taken and applied automatically to federal student loan debt.

Private student loans typically go into default after 90 days. The lender may hire a collection agency or file a lawsuit. Any collection fees are stated in the loan agreement.

Recommended: Private Student Loans Guide

Pros and Cons of Student Loan Forbearance

Postponing your student loan payments has its advantages and disadvantages.

Pros

•   Forbearance can help you avoid the negative financial impact of going into default, including the risk of having your wages garnished.

•   It does not affect your credit scores because the missed payments are not reported on your credit reports.

•   It can give you a chance to catch your breath when money is tight.

Cons

•   Interest will accrue during forbearance, which means you’ll likely have a larger loan balance waiting for you when you resume repayment.

•   If you’re pursuing federal student loan forgiveness, any period of forbearance probably will not count toward your forgiveness requirements.

•   It’s a short-term solution, typically 12 months, though you can renew if you’re still struggling to pay your loans.

•   For loans issued after July 1, 2027, forbearance will be capped at nine months in any 24-month period.

Alternatives to Forbearance

Income-Driven Repayment

If you’re having trouble making student loan payments because of circumstances that may continue for an extended period, or if you’re unsure when you’ll be able to afford to resume payments, one option is an income-driven repayment plan.

Monthly payments are determined by your income and family size. After 20 or 25 years of regular, on-time payments on the Income-Based Repayment plan, any remaining loan balance may be forgiven.

Starting in the summer of 2026, borrowers will have a new option, called the Repayment Assistance Plan (RAP). On this plan, your payments are based on your adjusted gross income (AGI). RAP will forgive any remaining balance after 30 years of payments.

Student Loan Refinancing

Refinancing student loans with a private lender is another option to consider. You take out one new loan, hopefully with a lower interest rate, to pay off one or more old loans.

One of the other advantages of refinancing student loans is that you may also be able to change the length of the loan. However, you may pay more interest over the life of the loan if you refinance with an extended term.

Borrowers eligible for student loan refinancing typically have a solid financial history, including a good credit score. It’s important to note that if you refinance federal student loans with a private lender, you give up federal benefits like income-driven repayment, loan forgiveness, and federal forbearance.

Recommended: Student Loan Refinancing Calculator

The Takeaway

What is student loan forbearance? Student loan forbearance is an option to temporarily suspend loan payments when you’re struggling to make them. But in almost all cases, interest will accrue and be added to the loan. Student loan deferment, income-driven repayment, or refinancing could make more sense for you.

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.

FAQ

How does student loan forbearance work?

Student loan forbearance is a temporary suspension of loan payments due to financial hardship. It allows borrowers to pause payments for a specified period, currently up to 12 months. For loans issued after July 1, 2027, forbearance will be capped at 9 months in any two-year period.

How does interest accrue during forbearance?

Interest accrues on nearly all federal student loans and all private student loans during forbearance, potentially increasing the loan balance when payments resume.

What are the alternatives to student loan forbearance?

Alternatives include income-driven repayment, which bases monthly payments on income and family size, and student loan refinancing, which may offer lower interest rates but requires giving up federal benefits.

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.