student_loan Archives

Dec

2025

Can Private Student Loans Be Discharged in Bankruptcy?

By Rebecca Safier | Student Loans, student_loan | Comments Off

Private student loans can be discharged in bankruptcy (meaning you are released from your debt obligation), but the process is notoriously difficult. Not only does the bankruptcy filing require an additional step called an adversary proceeding, but you’ll also need to prove your student loans cause undue hardship by passing certain tests. The process can be expensive and damage your credit for years to come.

However, successful applicants may see their private student loan debt discharged or temporarily restructured with more affordable payments. Read on for a closer look at bankruptcy and private student loans so you have a clear understanding of your options.

Table of Contents

Private vs Federal Student Loans
Private Student Loans and Bankruptcy Laws
Understanding the Bankruptcy Process
What Is the Brunner Test?
The Takeaway

Key Points

• Private student loans can be discharged in bankruptcy, but only under strict conditions, as borrowers must prove the debt causes “undue hardship.”

• You must file an adversary proceeding — a separate lawsuit within the bankruptcy case — which makes the discharge process more complex and costly.

• Courts typically use the “Brunner Test” to evaluate undue hardship.

• The Brunner Test requires proof that repaying the loan would prevent you from maintaining a basic standard of living, that financial hardship is likely to continue, and that you’ve made good-faith efforts to repay.

• Bankruptcy discharge of private student loans is risky and can hurt your credit long-term.

Private vs Federal Student Loans

Student loans can help pay for the cost of higher education. According to Education Data Initiative, the average cost of a year at college is currently $38,270, including books and daily living expenses.

There are two types of student loans: federal student loans and private student loans.

• Federal student loans are issued by the Department of Education. Federal loans have some benefits and protections that private loans don’t have. These can include deferment and student loan forbearance (a temporary postponement or reduction of your student loan payments).

• Private student loans come from private lenders, such as banks, credit unions, and online loan providers. They do not offer the same protections and benefits as federal student loans.

Student Loans and Bankruptcy

There are different paths for student loans to potentially be discharged in bankruptcy. In the past, federal student loan discharge through bankruptcy was even more difficult than private loan discharge. However, the Department of Justice announced changes to the process in November 2022 that simplified the process for federal loan borrowers.

Under the new rules, borrowers can complete a 15-page Attestation Form to show that their student loans cause undue hardship. The Department of Justice also introduced new guidelines for undue hardship to make them more fair and consistent for debtors.

Private student loans don’t qualify for this new process, but it’s still possible to include them in a bankruptcy proceeding. It may be best to consult a student loan lawyer who can help guide you through the process.

Key Differences in Protections and Repayment Options

Federal and private student loans differ significantly in the protections and repayment flexibility they offer. Federal loans provide built-in safety nets — such as income-driven repayment, deferment, forbearance, and forgiveness programs — while private loans rely on lender-specific policies that are often more limited.

Key differences include:

• Federal loans offer income-driven repayment plans; private loans typically do not.

• Federal loans may qualify for forgiveness programs like PSLF.

• Private lenders set their own deferment and forbearance rules.

• Federal loans usually have fixed interest rates; private loans may have variable rates.

• Credit checks are required for most private loans, but not for federal Direct Subsidized and Unsubsidized Loans.

Recommended: Private Student Loan Refinance

Private Student Loans and Bankruptcy Laws

Private student loan discharge is available under section 523(a)(8) of the Bankruptcy Code — if the debtor can prove that their student loans cause undue hardship. While undue hardship has historically not been clearly defined, most courts use what’s known as the Brunner Test to make this determination (more on this below).

Whether or not student loans are discharged also depends on the type of bankruptcy you file for, meaning whether it’s Chapter 7 or Chapter 13.

• Chapter 7 bankruptcy: Chapter 7 bankruptcy can discharge your debts after liquidating your assets. This type of bankruptcy stays on your credit report for 10 years.

• Chapter 13 bankruptcy: Chapter 13 bankruptcy reorganizes your debts with a new repayment plan that spans three to five years. Some unsecured debts (such as credit card debt or personal loans) may be discharged at the end of the plan, but take note: You’ll still be responsible for your student loans — the remaining balance, plus interest. Collections will be paused during this time, but your loans will accrue interest. Chapter 13 bankruptcy stays on your credit report for seven years.

There are a few other circumstances where private student loans can be discharged, according to the Consumer Financial Protection Bureau. For instance, you may qualify for private student loan discharge if:

• You borrowed more than your school’s cost of attendance.

• You got loans for a school that wasn’t eligible for Title IV funding, such as an unaccredited college or trade certificate program.

• Your loans were used to cover fees and living expenses while you studied for a professional exam, such as the bar exam.

• Your loans were used to cover fees, living expenses, or moving costs while you were in medical or dental residency.

• Your loans were made while you were attending school less than half-time.

If any of the above scenarios apply, you may be able to discharge your private student loans in bankruptcy without having to meet the more difficult standard of the Brunner Test.

Recent Legal Changes Affecting Private Loan Dischargeability

In 2025, the Private Student Loan Bankruptcy Fairness Act of 2025 was introduced in Congress, proposing that private student loans be discharged in bankruptcy without requiring borrowers to prove “undue hardship.” While this has yet to pass, current shifts suggest better prospects ahead. Anyone considering bankruptcy as an option should stay informed of evolving laws and recent rulings.

Recommended: Student Loan Refinancing Calculator

Understanding the Bankruptcy Process

Your first step in declaring bankruptcy is filing for bankruptcy and paying the associated fees.

• The initial filing fee for Chapter 7 bankruptcy (which focuses on unsecured debt, such as credit card debt and personal loans) is usually around $338.

• The filing fee for Chapter 13 bankruptcy (which typically involves discharging unsecured debt while catching up on secured debt, such as a mortgage) is likely to be around $313.

In addition, attorney costs can vary and may add up to thousands of dollars. While this can be a steep expense, an experienced attorney or student loan lawyer can help you navigate the process, as well as help you determine which type of bankruptcy fits your financial circumstances.

What Is the Process of Getting Student Loans Discharged?

To get private student loans discharged through bankruptcy, you’ll need to take the extra step of filing an adversary proceeding. This is basically a lawsuit within the bankruptcy. Essentially, the adversary proceeding means that you’re suing your student loan lender or servicer. The fee to file an adversary proceeding is often around $350.

After filing this adversary proceeding and outlining your case, a judge will determine whether you qualify for private student loan discharge through bankruptcy.

Chapter 7 vs. Chapter 13 Bankruptcy

Chapter 7 and Chapter 13 bankruptcy offer two very different paths for borrowers seeking student loan discharge, each with its own implications.

Chapter 7, often known as liquidation bankruptcy, is designed for individuals with limited income and few assets. It eliminates many forms of unsecured debt, but student loans are only discharged if the borrower files an adversary proceeding and proves undue hardship. This route is generally faster — usually a few months — but borrowers must meet strict income requirements to qualify.

Chapter 13, on the other hand, reorganizes debt rather than eliminating it outright. Borrowers enter a three- to five-year repayment plan based on their income, during which collection efforts pause. While student loans are typically not discharged at the end of the plan without an adversary proceeding, Chapter 13 can make payments more manageable in the meantime and provide temporary relief.

Role of Adversary Proceedings in Student Loan Discharge

An adversary proceeding functions like a separate lawsuit within the bankruptcy case, where the borrower must formally sue the student loan lender or servicer and present evidence that repaying the loans would cause “undue hardship.” This process includes filing a complaint, exchanging documents, and potentially testifying in court.

While it adds time and complexity to the bankruptcy process, the adversary proceeding is the mechanism that allows a judge to review the borrower’s circumstances in detail and determine whether a full or partial discharge is justified.

Recommended: Student Loans and Chapter 13 Bankruptcy

What Is the Brunner Test?

The Brunner Test is a legal standard used in many bankruptcy courts to determine whether a borrower can discharge their student loans by proving “undue hardship.”

The Three Prongs of the Brunner Standard

The Brunner Test requires meeting three main guidelines:

1. Repaying your student loans would make it impossible for you to maintain a minimal standard of living.

2. Your financial difficulties are likely to persist throughout a significant portion of your student loan repayment period.

3. You’ve shown a good-faith effort to pay back your student loans in the past.

Criticisms and Alternatives to the Brunner Test

Critics argue that the Brunner Test is outdated, overly strict, and inconsistently applied across courts. Many say the “minimal standard of living” requirement sets an unreasonably high bar, making it nearly impossible for struggling borrowers to qualify for relief. Others contend that proving long-term hardship is unrealistic and that the “good-faith effort” standard is vague and subjective, often leading to unpredictable outcomes.

Some courts use an alternative test called the totality of circumstances test. With this test, the court considers your past, present, and future financial resources, along with your living expenses and other relevant circumstances. Basically, they look at your entire financial picture to determine whether your student loans cause undue hardship and would qualify for discharge through bankruptcy.

Recommended: Finding Student Loans and Scholarships

The Takeaway

Discharging private student loans through bankruptcy is difficult, but not impossible if you can prove they cause undue financial hardship in your life. Filing and qualifying for bankruptcy is complex, however, so you’ll likely need to hire an attorney to help you navigate the process. It’s also a last resort, as it can be expensive and can negatively impact your credit for years to come.

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

Can private student loans be discharged through bankruptcy?

Private student loans can be discharged through bankruptcy if you can prove they cause undue hardship. When filing for bankruptcy, you’ll have to take the extra step of filing an adversary proceeding, which is essentially an additional lawsuit against your student loan lender or servicing company.

Are private student loans treated differently in bankruptcy?

Private student loans are treated differently than other types of debt in bankruptcy. You’ll have to meet a higher standard to have them discharged, typically the Brunner Test or totality of circumstances test. Plus, student loans aren’t discharged at the end of a Chapter 13 repayment plan — you’ll still owe your remaining balance, plus interest.

What are the requirements to prove undue hardship?

The requirements to prove undue hardship vary, but you typically must show the following: repaying your student loans would prevent you from maintaining a minimal standard of living, your financial situation is likely to persist throughout your repayment period, and you’ve made a good-faith effort to pay back your student loans.

What is an adversary proceeding in student loan bankruptcy cases?

An adversary proceeding in student loan bankruptcy cases is a separate lawsuit within the bankruptcy process where the borrower asks the court to determine whether their student loans can be discharged. It typically requires proving “undue hardship,” making it a more complex and evidence-based step than standard bankruptcy filings.

Have there been recent updates to bankruptcy laws for student loans?

The Student Loan Bankruptcy Improvement Act of 2025 has been introduced to Congress. It would reform discharge standards to make it easier for borrowers to have student loans eliminated without the previously strict undue-hardship requirement. The Private Student Loan Bankruptcy Fairness Act of 2025 was also introduced to Congress and aims to allow private student loans to be discharged more easily.

Photo credit: iStock/damircudic

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.

SOSLR-Q425-063

Dec

2025

How to Pay for College With No Money Saved

Paying for College With No Money in Your Savings

By Jennifer Calonia | Budgeting & Goals, Going to College, Student Loans, student_loan | Comments Off

Table of Contents

Average Cost of College
How to Pay for College With No Money
Is College Right for You?
SoFi Private Student Loans

With the high cost of a college education, affording college with no money set aside might feel impossible. However, there are many forms of financial aid — whether from federal, state, school, or private organizations — that can help you pay for your college degree.

Learning how to pay for college with no money might require approaching your higher education costs from different angles. This includes cutting your college expenses, finding alternate financial aid sources, or both. Keep reading for specific ways to pay for college with no money saved.

Key Points

• To pay for college with no savings, start by submitting the Free Application for Federal Student Aid (FAFSA®), which can unlock grants, work-study, and federal loans.

• Grants and scholarships offer “free money.” They generally don’t have to be repaid, making them the most cost-effective way to earn a degree without debt.

• Consider lower-cost education options, such as starting at a community college or opting for in-state public schools.

• Explore work-study, part-time jobs, and family help to cover living expenses while enrolled — these strategies can make school affordable even without cash savings.

• You can use private student loans as a last resort, as their terms and protections are generally less favorable than federal student loans.

Average Cost of College

How much you can expect to pay for college varies, depending on the school you choose, your degree level, whether you’re an in-state resident, and other factors.

According to the College Board, the average cost of tuition and fees for a full-time, in-state undergraduate student attending a public four-year school in 2025-26 is $11,950. Out-of-state students can expect to pay an average of $31,880 in tuition and fees for the same academic year. And students attending a nonprofit four-year private institution are charged an average $45,000 in tuition and fees.

Institution Type	Average Annual Tuition and Fees
Public Four-Year College, In-State Student	$11,950
Public Four-Year College, Out-of-State Student	$31,880
Private Four-Year College, Nonprofit	$45,000

Keep in mind that these figures are exclusively for tuition and fees. This cost doesn’t account for additional expenses that college students often face, like textbooks, school supplies, housing, and transportation.

Understanding the Total Cost of Attendance

Cost of attendance (COA) includes more than just tuition — it also encompasses fees, textbooks, housing, transportation, and personal expenses. By looking at the full picture, students will have a clearer idea of what they’ll actually need to cover each semester.

Many colleges publish estimated COA figures on their websites to help students plan, but it’s still important to review your own lifestyle, commute, and academic program to get the most accurate estimate.

How to Pay for College With No Money

The cost of being a college student can seem overwhelming when you don’t have savings available to directly pay for school.

If you want to go to college but have no money or you’re a parent who’s helping your child pay for college, here are a few ideas on how to go to college with no money saved.

Fill Out FAFSA® to See if You Qualify for Financial Aid

If you’re paying for college with no money saved, the first thing you’ll want to do is submit a Free Application for Federal Student Aid, also known as the FAFSA®.

The FAFSA determines if you qualify for federal financial aid. You can see if you’re eligible for the Pell Grant, Federal Work-Study, and Direct Loans. The information on your FAFSA is also commonly used to determine your eligibility for state, school, and other privately sponsored aid.

Grants

In addition to federal grants for college, search for grants from your state and school for additional funding. Grant funds generally don’t need to be repaid as long as you meet the grant program’s requirements.

Some organizations — nonprofit and for-profit — also host their own need- or merit-based grant programs for college students.

Scholarships

Scholarships are considered gift aid, meaning they typically don’t need to be repaid. There are a multitude of scholarship opportunities that are awarded due to financial need or merit.

You can search for scholarships online from various companies, organizations, community groups, and more. Ask your school’s financial aid office for help finding these advantageous sources of aid.

Negotiate With the College for More Aid

If your financial circumstances have changed since you submitted your FAFSA, request a professional judgment to have your school reevaluate your financial aid package.

Not all schools accept this request, but if yours does, this process gives you a chance to provide additional documentation that’s used to recalculate your financial need.

Start With Community College and Transfer

If you want to go to college but have no money, one option is to attend a community college for the first two years of your college education. According to the same College Board report, the average 2025-26 cost for tuition and fees at a local two-year college is $4,150 for a full-time undergraduate student.

After completing your general education courses at a junior college, you can then transfer to a four-year school.

Choose a Less Expensive University

The type of school you choose can also help you afford college if you don’t have money saved. As mentioned earlier, the cost of college varies widely between a public versus private institution.

Additionally, choosing a public school in your home state generally costs less than attending an out-of-state school. When reviewing cost, be sure to factor in the scholarships and grants you may qualify for.

Live at Home

Room and board is one of the largest expenses facing students. Instead of having to account for costs toward a dorm room or off-campus housing, living at home and commuting to school can help you keep expenses lower.

Talk with your parents about whether living at home while you earn your degree is an option.

Study Abroad

Some students may explore pursuing their degree abroad as one solution to cut expenses. Thanks to government subsidies in some countries, attending university abroad can be less expensive than staying in the U.S. In some cases, American students may even qualify for free tuition.

Work-Study

The Federal Work-Study program allows you to earn financial aid with part-time work through an employer partner. These jobs are often on campus and offer flexible hours that fit around a student’s class schedule.

Federal Student Loans

If you need to borrow money for college, a federal student loan is typically the first choice for students. The Department of Education offers subsidized and unsubsidized federal loans to students. These loans need to be repaid.

Undergraduate students might be eligible for subsidized federal loans in which the government pays for accrued interest while you’re enrolled in school, during your grace period, and while in deferment. These are awarded based on financial need.

Recommended: Types of Federal Student Loans

Private Student Loans

After exhausting all of your federal student aid opportunities, students may apply for a private student loan if they need additional cash to pay for college.

Private student loan rates and terms differ from federal loans. Generally, private student loans don’t offer borrowers income-driven repayment plans or flexible deferment or forbearance terms when you’re having trouble repaying your loan.

Also, loan details differ between lenders. To find a competitive private student loan, compare rates from a handful of lenders before choosing one.

Working Part-Time

To supplement the financial aid you’ve received, consider working part-time while you’re enrolled in school. Funds from a part-time job can help you pay for day-to-day costs as a student, like groceries, transportation, or general living expenses while you’re studying for your degree.

Borrowing From Family Members

If you have a money gap between the financial aid you’ve received and your college expenses, you could consider asking a close family member if they’re willing to offer you a family loan.

Depending on your family’s financial resources and your relationship with your parents or relatives, you might have access to this alternative low-interest financing option. When borrowing money from family, be clear about how much you need, how the funds will be used, and expectations regarding repayment after you leave school.

Look Into Tuition Reimbursement From Employers

Tuition reimbursement from employers can be a valuable way to reduce college costs if you’re working while pursuing your degree. Many companies offer financial assistance for approved courses or degree programs, often covering a portion of your tuition.

In exchange, you may need to maintain a certain GPA or agree to stay with the employer for a set period after completing your studies.

Explore State-Specific Financial Aid Programs

Many states offer their own financial aid programs to help residents afford college. These programs may include need-based grants, merit scholarships, tuition waivers, and specialized aid for high-demand fields. Because eligibility rules and award amounts vary widely by state, it’s essential to review your state’s higher education agency website and apply early.

Is College Right for You?

Attending a degree-granting, four-year college isn’t the only choice you have for furthering your education and career prospects. Enrolling in a trade school, seeking vocational training, or getting an apprenticeship can help you advance your skills for more job-focused opportunities.

Trade School

A trade school offers programs that teach students the hands-on skills for a technical or labor-based profession. Programs are typically shorter than traditional college degrees — often ranging from a few months to two years — and focus on practical skills needed for fields like plumbing, welding, automotive repair, healthcare, or cosmetology.

Vocational Training

Vocational schools provide students with the education to earn a certification or formal training quickly for service-oriented professions. Programs are typically shorter and more affordable, allowing students to enter the workforce quickly with specialized certifications or diplomas.

Apprenticeships and On-the-Job Training Options

Apprenticeships and on-the-job training programs provide a practical pathway to learn a trade or profession while earning a paycheck. Participants gain hands-on experience under the supervision of experienced professionals, often combining workplace training with classroom instruction.

These programs can lead to industry-recognized certifications or credentials, helping individuals build skills and advance their careers without accumulating traditional student debt.

SoFi Private Student Loans

If you’ve decided that a traditional college education is for you, you might still need additional funds, despite exploring alternatives to afford college with no money.

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 any way to go to college entirely for free?

Yes, but financial aid is highly variable and is determined based on your unique situation. Students might be eligible to enroll in college at no cost, depending on their financial need. Similarly, some students might be able to attend college for free based on merit, like with a full academic or athletic scholarship.

Is relying completely on student loans for college a good idea?

No, relying completely on student loans for college isn’t a good idea. To keep your student loan debt out of college as low as possible, it’s generally wise to seek out a mix of financial aid options. Prioritize aid that you don’t have to repay, like grants and scholarships, and use student loans as a last option when funding your college education.

Why is the cost of college so high in the US?

The high cost of college in the U.S. can be attributed to various factors. An increased demand for higher education and unrestrained administrative and facility costs have been cited as reasons for the ongoing rise of college costs.

What are the best options for paying for college with no savings?

The best options for paying for college with no savings include applying for federal aid via FAFSA, seeking grants and scholarships, participating in work-study programs, exploring state-specific financial aid, considering employer tuition reimbursement, and using affordable alternatives like community colleges, trade schools, or apprenticeships to reduce overall costs.

Can I get financial aid if my parents didn’t save for college?

Yes, you can still qualify for financial aid even if your parents didn’t save for college. Federal aid, state grants, and need-based scholarships consider income and financial circumstances, not just savings. Completing the FAFSA accurately helps determine eligibility for grants, work-study, and low-interest federal loans.

Photo credit: iStock/Passakorn Prothien

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).

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

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

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

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SOISL-Q425-050

Dec

2025

Full-time vs Part-time Student

By Kevin Brouillard | Going to College, Student Loans, student_loan | Comments Off

Once you’ve been accepted to college, an important decision you’ll need to make is whether to attend full-time or part-time. Status is determined by the number of credits you take during a term, but you may want to consider more than just academic workload. Your enrollment status can also impact your financial aid, cost of attendance, taxes, and college experience.

Below, we’ll explain key differences between going to school full-time vs part-time. We’ll also look at the implications of both to help you determine what makes sense for you.

Table of Contents

What Is a Full-Time Student?
How Many Credit Hours Is Considered Full-Time?
What Is a Part-Time Student?
How Many Classes Do You Need to Be Part-Time?
Difference Between Full-Time and Part-Time Students
Choosing Between Full-Time vs. Part-Time
The Takeaway

Key Points

• Full-time students typically take 12+ credits (9+ for grad students), while part-time students take fewer; thresholds vary by institution.

• Tuition structures differ — full-time often pays a flat rate (12–18 credits), while part-time pays per credit, which can spread costs but extend graduation.

• Financial aid and scholarships may require at least half-time enrollment (6+ credits), and Pell Grant awards scale with course load.

• Loan repayment rules generally allow deferment while enrolled half-time or more; dropping below can trigger repayment.

• Enrollment status impacts the college experience — full-time students have higher retention, broader access to housing and activities, and meet NCAA eligibility requirements.

What Is a Full-Time Student?

Undergraduate students are typically considered to be full-time when they’re enrolled in 12 or more credits during a term. Graduate students may take as few as nine credits to be considered full-time. However, every institution sets its own threshold, so check your school’s policies and requirements.

How Many Credit Hours Is Considered Full-Time?

Full-time enrollment typically means taking a minimum number of credit hours each semester, which varies slightly by program and institution. Most classes are worth three credits. To be considered full-time, undergraduate students usually take at least four classes per semester, or 12 credit hours, and graduate students enroll in at least three classes, or nine credit hours.

What Is a Part-Time Student?

In general, part-time undergraduate students take fewer than 12 credit hours. Graduate students attending school part-time often enroll in fewer than nine credits. As with full-time enrollment, thresholds for part-time status can vary by institution, so consult your school’s policies.

How Many Classes Do You Need to Be Part-Time?

Part-time undergraduate students typically take three or fewer classes per semester, or less than 12 credit hours. Graduate students studying part-time may enroll in one or two classes, or less than nine credits.

Recommended: How Do You Change Your Major?

Difference Between Full-Time and Part-Time Students

The difference between full-time and part-time students comes down to the number of credits they take during a term. Enrollment status can impact how students pay for their education. Here are some other differences between full- and part-time students.

	Full-Time Students	Part-Time Students
Tuition Cost	Full-time rate for 12-18 credits per semester	Pay per credit hour
Time Commitment	Greater; harder to work	Smaller; more flexibility to work
Financial Aid	Qualify for financial aid	Qualify for financial aid
Student Loan Repayment	Six months after graduating or dropping below half-time	Six months after graduating or dropping below half-time
Scholarships	Eligible for majority of scholarships	May not be eligible for all scholarships
Tax Credit Eligibility	Eligible	Eligible
College Experience	Typically more immersive	Less campus-centered
Graduation Timeline	Faster	Slower
Career Planning / Internship Opportunities	Greater access due to being on campus full-time	May face challenges and scheduling constraints
Access to Campus Resources and Support	Broader and more consistent access	Have access to resources, but may need to adjust schedule for desired support

Tuition Cost

Part-time students generally pay per credit hour. This allows them to spread out the cost of their education over a longer period of time.

Full-time tuition is capped once a student reaches the credit threshold. This means a student may be able to pay the same in tuition for taking anywhere between 12 to 18 credits in a term. Because of this, full-time students may be interested in maximizing credit hours to reduce education costs. While this can help students stay on track or even graduate early, they may be charged an additional fee per credit hour if they enroll in more than 18 hours per term.

Time Commitment

For many, the choice to be a part-time vs full-time student can often come down to scheduling.

As a general rule of thumb, students can expect between two and three hours of work per week for each credit they’re taking. This means that a three-credit course would require approximately six to nine hours of student engagement, including class time, homework, readings, and studying.

Many full- and part-time students work while completing their degrees to help pay for education and living expenses, according to information from the Bureau of Labor Statistics. In October 2023, 39.6% of full-time students had some type of employment while 77.7% of part-time students were employed.

To make their schedule more feasible, part-time students may consider taking online classes while working to reduce commute times and have access to a wider selection of academic programs.

Taking night classes is another option for students to study while working.

Financial Aid

Enrollment status can affect a student’s financial aid options. For instance, some types of federal student aid require students to be enrolled at least half-time (six or more credits) to qualify.

Pell Grants, which are awarded based on a student’s financial need, vary according to enrollment status. Full-time students may receive up to $7,395 for the 2025-2026 academic year. Awards for part-time students are proportional to the number of credit hours a student takes. For example, a student taking nine credits would be eligible for 75% of the maximum award. Part-time students should keep in mind that eligibility for Pell Grants can’t exceed 12 academic terms.

Both full-time and part-time students can qualify for federal Direct Loans and, if they attend a participating university, the federal work-study program. Interested students must indicate that they’d like to be considered for work-study on the Free Application for Federal Student Aid (FAFSA®).

Since financial aid awards can vary by institution. Consider checking with your school to determine how enrollment status could impact your overall financial aid package.

Recommended: Types of Federal Student Loans

Student Loan Repayment

Whether studying part-time or full-time, many students take out an undergraduate loan to pay for their education expenses. Most federal student loans do not require repayment while the student is enrolled in school at least half-time. Part-time students have to repay loans once they drop below half-time enrollment.

Borrowers with Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loans will also have a six-month grace period after graduation before loan payments are due. And if you return to half-time or full-time enrollment prior to the end of the grace period, you will be eligible for the full six-month period upon graduation. Interest on Direct Subsidized Loans is covered by the U.S. Education Department while students are enrolled and during certain periods of deferment.

Graduate and professional students with PLUS Loans may also receive a six-month deferment on repayment when falling below half-time status.

Borrowers with private student loans and certain federal loans may be expected to begin repayment immediately.

Scholarships

Scholarships can help pay for tuition and related educational expenses. Organizations may use a variety of criteria when awarding scholarships, including academic merit, financial need, quality of application responses, and enrollment status.

Some scholarships have eligibility requirements that require recipients to be full-time students. Still, opportunities exist for part-time students to secure financial help, including unclaimed scholarships and grants.

Tax Credit Eligibility

Enrollment status can have implications for your or your parents’ taxes. There are two main programs — the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) — that can give tax credits for out-of-pocket education expenses.

The AOTC can provide an annual credit up to $2,500 per student, given they are enrolled at least half-time.

Meanwhile, the LLC is open to all students regardless of enrollment status. The maximum credit per return is 20% of eligible education expenses up to $10,000, or $2,000 total.

College Experience

Financial considerations are only part of the picture when deciding whether to go to school full- or part-time. Your overall college experience is another piece. Students carrying a full course load tend to have better continuing and graduation rates. For Fall 2023 starters, 53.2% of part-time students continued school the following fall, compared with 84.4% of full-time students.

Enrollment status could influence aspects of campus life and extracurricular activities as well. For instance, some schools may only allow full-time students to live in on-campus housing. And student-athletes must abide by NCAA regulations, which include minimum coursework requirements, to be eligible to play.

Graduation Timeline

Full-time students typically follow a faster and more predictable path to graduation because they take the standard course load of 12-15 credit hours per semester. This pace allows them to complete degree requirements within the traditional two-year (associate) or four-year (bachelor’s) timeline, assuming they stay on track and pass all required courses.

Part-time students, on the other hand, usually take fewer than 12 credit hours per semester, which naturally extends the time it takes to earn a degree. Because they’re often balancing school with work, caregiving, or other commitments, their progress may be slower and more variable from term to term.

Career Planning and Internship Opportunities

Full-time students often have greater access to career planning resources and internship opportunities because their schedules allow them to participate in on-campus recruiting events, career fairs, and networking programs. Being enrolled full-time can also make it easier to take internships during the academic year or over the summer.

Part-time students may face more challenges in pursuing internships and structured career programs due to scheduling constraints, particularly if they are balancing work or family responsibilities. However, part-time students can still benefit from flexible, remote, or part-time summer internship opportunities, evening networking events, and online career services.

Recommended: Jobs That Pay for Your College Degree

Access to Campus Resources and Support Services

Full-time students generally have broader and more consistent access to campus resources and support services. These can include academic advising, tutoring centers, libraries, counseling services, health facilities, and extracurricular activities. Being on campus regularly makes it easier to take advantage of these resources, engage with faculty, and participate in student organizations.

Part-time students can still access many campus resources, but scheduling and availability may be more limited. Evening or weekend services, online tutoring, and virtual counseling can help part-time learners, but they may need to plan carefully to make full use of what’s offered.

Choosing Between Full-Time vs. Part-Time

When deciding whether to enroll as a full-time or part-time student, it’s important to weigh factors such as your academic goals, financial situation, and personal commitments. Answer the following questions to help you decide:

• How quickly do I want to complete my degree?

• Can I manage a heavier course load each semester?

• What is my current work or family schedule, and how much time can I commit to school?

• How will full-time or part-time status affect my financial aid eligibility?

• Do I want to participate in on-campus activities, clubs, or organizations?

• How important is access to internships or career-building opportunities during school?

• Will I have enough time for studying and academic success in a full-time schedule?

• How flexible do I need my education to be to balance personal or professional commitments?

The Takeaway

The difference between going to college full-time or part-time comes down to how many credits are taken during a term. In general, full-time students take 12 or more credits, while part-time students take 11 or fewer credits.

When deciding whether to be a full-time vs. part-time student, you may want to consider more than courseload. Enrollment status can impact tuition costs, taxes, and financial aid options.

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

What are some benefits of being a full-time student?

Students who go to school full time are often able to focus completely on their studies, and a full course load means they can complete their degree faster. Full-time enrollment is also required for some scholarships, grants, and financial aid.

What are some benefits of being a part-time student?

Studying part time gives you the chance to work while going to school, which can make tuition and fees easier to manage. Plus, some employers will help pay for a portion of the cost.

What factors should I think about when weighing whether to enroll full time or part time?

Deciding whether to be a full-time vs. part-time student is a personal decision. As you’re weighing your options, consider factors like how much time you have in your schedule for school; any work or family commitments; your financial situation and available financial aid options; and your goals after graduation and their time frames.

Is it cheaper to be a part-time student?

Being a part-time student can be cheaper in terms of tuition costs per semester since you are paying for fewer courses at a time. However, part-time status may extend the overall duration of your studies, potentially leading to higher total costs due to prolonged living expenses and delayed entry into the full-time workforce. Also, part-time students might have limited access to certain financial aid options, scholarships, and campus resources, which could offset some of the immediate savings on tuition.

Can you work and be a full-time student?

Yes, you can work and be a full-time student, but it requires strong time management and organizational skills to balance academic responsibilities with job commitments. Many students successfully juggle both by taking advantage of flexible work hours, on-campus employment opportunities, and jobs that offer part-time or weekend shifts.

How long does graduate school take for part-time students?

Graduate school for part-time students typically takes longer than the standard duration for full-time students, often extending to about 3 to 6 years or more, depending on the program and the student’s course load each semester.

Photo credit: iStock/Drazen Zigic

SOISL-Q425-049

Dec

2025

A female student in a letterman jacket and glasses studies intensely with a tablet, perhaps trying to figure out how her student loan interest works while in school.

How Does Student Loan Interest Work While You’re in School?

By Janet Siroto | Student Loans, student_loan | No Comments

Table of Contents

Understanding How Federal Student Loan Interest Works
Understanding How Private Student Loan Interest Works
Can You Minimize Student Loan Interest Accrual While in School?
The Takeaway

While in school, most student loans accrue interest. The main exception to this rule is for those who hold federal Direct Subsidized Loans. While a student is taking classes, the interest on these loans is covered by the U.S. government.

It can be important to understand exactly what type of student loan you have to make sure you understand the terms of the loan and when interest accrues. This, as you might guess, impacts how much you will be paying back.

Read on for a guide to how student loan interest works while you are still in school.

Key Points

• Interest generally accrues during school, except for federal Direct Subsidized Loans, where the government pays the interest while you’re enrolled.

• Unsubsidized federal loans still charge interest, even in school, and that accrued interest can be capitalized (added to your principal).

• PLUS Loans accrue immediately, with interest beginning as soon as the loan is disbursed and continuing during enrollment.

• Private loans usually accrue interest in school, and many lenders will capitalize that interest if you defer payments until after graduation.

• Making interest-only payments during school helps, because it limits capitalization and reduces the total cost of the loan.

Understanding How Federal Student Loan Interest Works

Some federal student loans accrue interest while you’re in school, but others do not. To understand how your interest works, it’s essential to know exactly what type of student loan you have. Each loan type follows its own rules for when interest begins accruing and how it’s handled during enrollment.

Subsidized vs. Unsubsidized Loans

Federal student loans may be subsidized or unsubsidized. The accrued interest on Direct Subsidized Loans is covered by the government while a student is enrolled at least half-time. Direct Subsidized Loans are only available to undergraduate students.

For Direct Unsubsidized Loans, students are responsible for paying the interest that accrues on their student loans. Interest begins accruing as soon as the loan is disbursed, or paid out to the borrower.

You won’t be required to make payments while in-school, but be aware that if you don’t, you may graduate with a higher balance than when you started. That’s because the accrued interest is capitalized on the original balance of the loan. Direct Unsubsidized Loans are available to undergraduate and graduate students.

Direct PLUS Loans are available for graduate students (Grad PLUS Loans) or their parents (Parent PLUS Loans). The interest on these loans begins accruing when the loan is disbursed and continues accruing while the student is enrolled in school. Keep in mind that as of July 1, 2026, Grad PLUS Loans will no longer be available (Parent PLUS Loans will still be available, however).

How Does the Grace Period Impact Interest Accrual?

Both Direct Unsubsidized and Subsidized Loans have a six-month grace period after the borrower graduates. On subsidized loans, the borrower is not responsible for paying interest during the grace period. On an unsubsidized loan, interest continues to accrue during the six-month grace period.

Direct PLUS Loans do not have a grace period. Graduate students do receive an automatic deferment after graduation and interest does accrue during this time period.

How Does Capitalized Interest Work?

While payments are not required on most federal student loans while the student is enrolled in school, students with Direct Unsubsidized or PLUS Loans have the option of making interest-only payments. This can be helpful because, as mentioned previously, after the grace period and at the end of periods of deferment or forbearance, the accrued interest is capitalized on the loan.

Capitalized interest on student loans occurs when the accrued interest is added to the principal balance of the loan (the amount that was originally borrowed). This becomes the new balance of the loan, and interest will continue to accrue based on that new balance.

Think of all that accumulating interest like a snowball rolling down a mountain. You might be able to stay ahead of it for a while, but it also might catch up with you.

Interest Accrual During Deferment and Forbearance

During student loan deferment, interest accrual depends on the type of student loan you hold. Federal Direct Subsidized Loans typically do not accrue interest during approved deferment periods, as the government covers these costs. However, unsubsidized loans, PLUS Loans, and most private loans continue accruing interest even while payments are paused. If this unpaid interest is not addressed, it may capitalize once deferment ends, increasing your overall loan balance and the amount you’ll pay over time.

Forbearance, on the other hand, almost always results in interest accruing regardless of loan type. Whether you have subsidized, unsubsidized, or private loans, interest continues to build during a forbearance period. Interest typically does not capitalize at the end of a forbearance, though.

Understanding How Private Student Loan Interest Works

When thinking about private vs. federal student loans, know that private loans are not subject to the same rules as federal student loans. They’re offered by private companies, and each lender will likely have its own terms and conditions.

The majority of private student loans will start to accrue interest while the student is enrolled in school. Some lenders may allow borrowers to defer payments until after they graduate. In this case, the accrued interest from when the borrower was in school will likely be capitalized on the loan. To be sure of the terms on your loan, review the loan agreement or check in with the lender directly.

Keep in mind that, as mentioned, private student loans don’t always offer the same benefits or borrower protections (things like income-driven repayment options) that federal loans do. Because of this, they are generally considered after all other sources of financing, including federal student loans, have been exhausted.

This table provides an overview of how interest accrues on the various types of loans discussed in this article.

Type of Loan	Does Interest Accrue While In School?	Grace Period and Interest
Federal Direct Subsidized Loans	Interest does not accrue while the borrower is enrolled in school at least half-time	Interest does not accrue during the six month grace period
Federal Direct Unsubsidized Loans	Interest accrues while the borrower is in school	Interest does accrue during the six month grace period
Federal Direct PLUS Loans	Interest accrues while the borrower is in school	Do not have a grace period
Private Student Loans	Varies by lender; it is likely that interest will accrue	Varies by lender; some lenders may offer a grace period and interest may accrue

Recommended: How to Calculate Student Loan Interest

Can You Minimize Student Loan Interest Accrual While in School?

One way to limit accrued interest is to limit what you borrow in the first place. When it comes to student loans, aim to borrow only what you really need. Perhaps get a part-time job to help cover some of your expenses, make interest-only payments on your loans, and/or consider refinancing your loans after you graduate.

Work-Study or a Part-Time Job

Work-study, for those eligible, or a part-time job can help you take out less in student loans. You can use the money earned to help pay for tuition, books, and living expenses. Minimizing your total student loan amount is one of the best ways to minimize student loan interest accrual. The less you owe in loans, the less you’ll pay in interest.

Make Interest Only Payments

Making student loan payments while in school isn’t likely to be a requirement, but as mentioned earlier, many loans allow borrowers to make interest-only payments while they’re in school. While this won’t eliminate accrued interest, it can reduce the total amount you pay over the life of the loan because the interest won’t capitalize if you’re paying it as it accrues.

Compare and Refinance Loans with Better Terms

Once you begin repaying your student loans, refinancing your student loans can be an effective way to manage interest accrual and reduce overall costs. By comparing lenders and securing a lower interest rate, you may be able to decrease both your monthly payments and the total amount of interest you’ll pay over the life of the loan.

You may also choose to extend the term of your loan, which can decrease your monthly payment. Keep in mind, though, that extending the term will most likely mean you’ll pay more in interest over the life of the loan.

And remember that refinancing federal loans means giving up federal protections and benefits, such as income-driven repayment plans and student loan forgiveness. It can still be a valuable strategy, though, for lowering long-term expenses if the new terms align with your financial goals.

Recommended: Applying for No Interest Student Loans

The Takeaway

Interest on many types of student loans accrues while the student is in school. Federal Direct Subsidized Loans are an exception, as the accrued interest is paid for by the government while the student is enrolled in school and during the grace period.

Generally speaking, interest on other types of student loans, including Direct Unsubsidized and PLUS Loans, begins accruing interest when they are disbursed, and continue accruing interest while the student is enrolled. For private student loans, each lender will likely have its own terms and conditions.

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

FAQ

When does student loan interest start accruing?

Student loan interest typically begins accruing as soon as the loan is disbursed. For federal subsidized loans, the government covers the interest while you’re in school and during certain periods. For unsubsidized federal and most private loans, interest starts accruing immediately, even while you’re still enrolled.

Is it better to pay interest while still in school?

Yes, it’s better to pay interest while still in school because it can save you money in the long run. Paying interest while still in school prevents that interest from capitalizing and adding to your loan balance. Even small payments can reduce overall costs.

How is capitalized interest different from regular interest?

Regular interest accrues on your current loan balance, increasing what you owe over time. Capitalized interest, however, is unpaid interest that gets added to your principal balance. Once it capitalizes, future interest is charged on this higher principal, making your total loan cost grow more quickly.

Do private student loans always accrue interest while in school?

Yes, private student loans almost always accrue interest while you’re in school, regardless of your enrollment status. Unlike some federal loans, private lenders rarely offer subsidized options. Interest typically starts accruing at disbursement, and if you don’t make in-school payments, it will continue to grow and may capitalize later.

What’s the difference between subsidized and unsubsidized interest?

Subsidized loans don’t accrue interest while you’re in school or during deferment — the government pays it for you. Unsubsidized loans accrue interest from the moment they’re disbursed, and you’re responsible for all of it. If unpaid, that interest may capitalize, increasing your total loan balance and long-term cost.

SOSL1123004

Dec

2025

Finding & Applying to Scholarships for Grad School

By Kayla McCormack | Student Loans, student_loan | No Comments

Scholarships can be a helpful resource to pay for grad school and are available through many different avenues, including states, organizations, nonprofits, companies, and more.

Grants and scholarships are similar in that they’re both gift aid that typically doesn’t need to be repaid after graduation. The main difference is that scholarships are usually merit-based, while grants are need-based.

Let’s look at some common scholarships and grants for prospective graduate students.

Table of Contents

State Scholarships & Grants
Federal Scholarships & Grants
Private Graduate Scholarships & Grants
Fellowships
How to Qualify for Graduate School Scholarships
Where to Find Scholarships for Graduate Students
When to Apply for Graduate School Scholarships
Factors to Consider When Applying for Graduate School Scholarships
Using Student Loans to Cover Grad School
Alternative Funding for Graduate School
The Takeaway

Key Points

• You can find graduate school scholarships at the state level, the federal level, through your university, through your community, and through your employer.

• Customize each master degree scholarship application to match the specific criteria of the scholarship, such as academic achievements, leadership skills, or field of study.

• Keep track of deadlines and submit applications well in advance. Late submissions are often disqualified automatically.

• Work with academic advisors or mentors to identify the best scholarship opportunities and ensure applications are complete and compelling.

• In addition to graduate scholarships, students can pay for graduate school with cash savings, grants, federal student loans, and private student loans.

State Scholarships & Grants

To find scholarships and grants at the state level, you can try contacting your state’s Education Department for assistance and resources. Scholarships and grants vary state by state, but here are 11 options you may want to consider:

Graduate Tuition Assistance Grant (Colorado)

Provides financial support to graduate students enrolled at participating Colorado public universities. Awards are need-based and subject to fund availability.

Kansas Comprehensive Grant (Kansas)

Offers need-based grants to Kansas residents attending state universities, private colleges, or community colleges for graduate programs.

Massachusetts Gilbert Matching Student Grant (Massachusetts)

Supports financially needy graduate students attending participating colleges in Massachusetts.

Texas Public Education Grant (TPEG) (Texas)

Available to graduate students with demonstrated financial need attending Texas public colleges or universities.

Florida Student Assistance Grant (Florida)

Offers need-based aid to graduate students enrolled in eligible Florida postsecondary institutions.

New York State TAP for Graduate Studies (New York)

Provides financial aid for eligible New York residents pursuing graduate degrees at participating institutions within the state.

Oregon Chafee Education and Training Grant (Oregon)

Supports former foster youth pursuing graduate studies in Oregon with financial need.

North Carolina Education Lottery Scholarship (North Carolina)

Available to graduate students who demonstrate financial need and meet residency requirements.

Georgia Tuition Equalization Grant (Georgia)

Offers financial assistance to graduate students attending private colleges in Georgia, encouraging participation in higher education.

Maine State Grant Program for Graduate Students (Maine)

Provides financial aid to graduate students with financial need attending eligible institutions in or out of Maine.

California Graduate Equity Fellowship Program (California)

Provides financial support to economically or educationally disadvantaged graduate students at participating California State University (CSU) campuses.

Federal Scholarships & Grants

To apply for federal grants and scholarships, students will need to fill out the Free Application for Federal Student Aid, or FAFSA®, each year. There are several types of federal grants available, including:

Teacher Education Assistance for College and Higher Education (TEACH) Grants

Teacher Education Assistance for College and Higher Education (TEACH) Grants provide up to $4,000 per year for students preparing to become teachers in high-need fields. In exchange, recipients must agree to teach for four years at an eligible low-income school.

Fulbright Grants

The U.S. Education Department provides Fulbright Grants for graduate students to study and research in designated countries abroad.

When you visit the Fulbright website, click on your country of interest to view the details. For example, in Germany, there are 70 study/research grants available, the program lasts for 10 months, and its recommended participants speak German at the beginner level. In Iceland, there are only seven grants available, the program lasts nine months, and there is no foreign language requirement.

Finding Additional Federal Grants

To find additional federal grants for graduate school, take a look at Grants.gov or the U.S. Department of Labor’s database. On these sites, students can specify their search by things like their program, field of study, or other qualifiers.

National Science Foundation (NSF) Graduate Research Fellowship

The National Science Foundation (NSF) Graduate Research Fellowship Program (GRFP) provides generous funding to outstanding graduate students pursuing research-based master’s or doctoral degrees in STEM fields. Fellows receive a multi-year stipend and cost-of-education allowance, giving them financial support and research flexibility early in their careers.

Private Graduate Scholarships & Grants

When it comes to paying for grad school, there are plenty of organizations, companies, and nonprofits that offer scholarship opportunities. The scholarships could be merit-based, need-based, or simply granted based on your affiliation or application. Some scholarships are on the smaller side, others much larger, but any amount of aid can help. You may want to consider these elements while you’re on the hunt for private scholarships for graduate school:

Your College or University

Your school might offer merit-based scholarships or grants for college. To see what your school offers, connect with the office of financial aid to see if you qualify for any scholarships from the school and what additional steps you may need to take to apply.

Your Course of Study

You may be able to find scholarships related to your field of study. To find scholarships in your area of study, search national foundations or companies that might provide a scholarship. This might be especially helpful in STEM fields and other careers where there’s a high need for employees in the workforce.

Recommended: Scholarships for STEM Students

Your Neighborhood

Another way to find scholarships as a grad student is to see if your religious organization, local civic group, or other community organizations you belong to offer scholarships. You could reach out to see what may be available and perhaps complete the necessary applications.

Your Background

Based on your ethnicity or cultural heritage, you may be able to qualify for several scholarships or grants. Reach out to national foundations or local community groups to see what they offer.

Some specific private scholarships and grants include:

Greek Life Scholarships

Contrary to what society may think, enrolling in a fraternity, sorority, or other Greek organization has more benefits than the wild parties. Many Greek organizations reward their high-achieving members and alumni who pursue master’s degrees.

For example, members of Alpha Chi Rho could receive up to $3,000 for their graduate studies.

The Harry S. Truman Scholarship

The Truman Scholarship is for students who want to make a difference in society. If you’re pursuing a degree, such as Master of Public Administration, Master of Education, or Master of Social Work, and you have significant community service experience, you could qualify for the Truman Scholarship.

To apply, you must be pursuing any major that could lead to a career in public service and interested in a graduate degree. Between 55 and 65 students receive the Truman Scholarship per year, each receiving up to $30,000.

Government Finance Officers Association (GFOA) Scholarships

GFOA Scholarships are for graduate students intending to pursue a career in state or local finance. The association offers 11 scholarships ranging from $5,000 to $30,000.
The four kinds of graduate school scholarships are as follows:

• The Goldberg-Miller Public Finance Scholarship for full-time students. Award amount is $30,000.

• The Frank L. Greathouse Government Accounting Scholarship for full-time accounting students. Award amount is $10,000.

• The Clark Burrus Public Service Academic Scholarship for minority students studying for a career in state or local government finance. Award amount is $10,000.

• The Betty Jo Harker Professional Development Scholarship for part-time graduate students. Award amount is $10,000.

NCAA Postgraduate Scholarship

The NCAA Postgraduate Scholarship is for athletes who have attended an NCAA member institution for their undergraduate studies. Students must be in their final year of undergraduate athletics to apply.

The distribution of graduate school scholarships is unique. Three times per year (autumn, winter, spring), the NCAA gives scholarships to 21 men and 21 women per each sports season, for a total of 126 scholarships per year. This timeline splits up candidates based on the sport they play. Each scholarship is $10,000.

American Association of University Women

The American Association of University Women (AAUW) Fellowships and Grants program provides substantial financial support to women pursuing graduate study, research, and professional development across a wide range of fields. These awards help recipients cover tuition, living expenses, and project costs, with specific programs dedicated to career changers, international scholars, and women advancing in male-dominated disciplines.

The Career Development Grant recipients will receive up to $8,000 for graduate school.

The Geological Society of America Grant

If you’re going into geological research, joining the Geological Society of America (GSA) and applying for their Graduate Student Research Grant may open up some opportunities. The GSA awarded 354 students money in 2025, with roughly 52% of students that applied receiving aid. The average grant amount was $2,688.

These are only a few avenues to consider when looking for private graduate school scholarships. Databases and search engines can help, but don’t be afraid to get creative.

Fellowships

Unlike a grant or scholarship, graduate fellowships are money typically tied to an opportunity. Those who get a fellowship likely have to meet requirements to study, research, or work in a field for a short period. Not only will fellowships help students pay for graduate school, but they can also be a valuable opportunity to gain relevant experience.

Finding a fellowship will be specific to your field of study. One place to start your search process is by talking to your academic department for assistance or finding a nonprofit institution specializing in your field of study. Applicants should be aware that fellowships typically require a fairly rigorous application process.

The Paul & Daisy Soros Fellowships for New Americans

The Paul & Daisy Soros Fellowships for New Americans is a prestigious program that supports immigrants and children of immigrants pursuing graduate education in the United States. Each year, the fellowship provides generous funding for tuition and living expenses, empowering recipients to fully focus on their academic and professional goals.

Since 1998, the program has awarded over $80 million to 805 Fellows from 103 countries, supporting graduate studies in a wide range of fields — from screenwriting and painting to medicine and neuroscience.

How to Qualify for Graduate School Scholarships

Qualifying for graduate school scholarships involves careful planning and preparation. Below are tips to help you qualify:

• Start by researching types of scholarships specific to your field of study, location, or demographics.

• Maintain a strong academic record, as many scholarships prioritize academic excellence.

• Demonstrate leadership, community involvement, and unique skills, which can set you apart from other applicants.

• Craft a compelling personal statement that highlights your achievements, goals, and passion for your field.

• Submit all required materials, such as transcripts, letters of recommendation, and essays, by the deadlines.

• Make sure to apply for multiple scholarships to increase your chances of success, ensuring you meet the specific eligibility criteria for each opportunity.

Academic Achievement and Professional Goals

Graduate school scholarships often prioritize students who demonstrate strong academic achievement and clear professional goals. High GPAs, test scores, and a record of academic excellence can make applicants more competitive, while well-defined career objectives show scholarship committees that you have a purposeful plan for applying your education.

Recommended: What Is a Pell Grant?

Where to Find Scholarships for Graduate Students

When looking for scholarships for grad school, filling out the FAFSA is the first step. Just like undergraduates, the FAFSA is required for graduate students interested in federal student aid, including scholarships, grants, and student loans. Some schools may also use the FAFSA to determine aid awards.

Community organizations can be another source of scholarships. Some career or professional organizations may also offer scholarships.

Scholarship Databases and University Financial Aid Offices

From there, you can check in with your school’s financial aid office. They may have more information on the scholarship opportunities and requirements available at your school.

Scholarship databases compile thousands of scholarships in one place, allowing students to filter by field of study, eligibility, and award amount. SoFi’s scholarship search tool, for example, helps students quickly identify relevant scholarships, making it easier to find both school-specific and external awards that align with their academic and professional goals.

When to Apply for Graduate School Scholarships

Fill out the FAFSA as early as possible. Some aid may be awarded on a first come, first served basis, so completing the application early could potentially improve your chances of qualifying for some aid.

For private scholarships, be sure to track all relevant deadlines. Each scholarship may have its own deadline, so it may help to put together a spreadsheet so you can see a high level overview of important deadlines and application requirements.

Application Timing for Fall vs. Spring Admissions

Application timing can significantly impact your chances of receiving graduate school scholarships, depending on whether you’re applying for fall or spring admissions. Many scholarship deadlines align with fall entry, so students aiming for a spring start may have fewer opportunities or tighter timelines. Planning ahead and submitting materials early ensures you meet all deadlines and remain competitive for available funding, regardless of your intended start term.

Recommended: FAFSA Guide

Factors to Consider When Applying for Graduate School Scholarships

Applying for scholarships is a time commitment, but it may be time well spent if you can secure money to help pay for your graduate school program. Consider the following factors when applying to graduate school scholarships:

Eligibility Requirements

Review eligibility requirements closely. Do you need to be enrolled in a specific school or program of study? Be sure you understand and meet the eligibility requirements so you don’t waste time applying for grad school scholarships you aren’t actually eligible for.

Application Requirements

Some applications may require an essay and letters of recommendation. Think carefully about who you want to ask to write a letter of recommendation on your behalf. Be mindful of deadlines and ask with enough advance notice to give them enough time to write a letter.

Deadlines

Each scholarship may have its own deadlines. Track these closely. Many scholarships won’t accept late submissions.

Some scholarships may go unclaimed when the school year starts. Consider checking in with your financial aid office to see if there are any unclaimed scholarship funds available. For more information on appealing for these awards, take a look at SoFi’s guide to unclaimed scholarships.

Renewal Terms and Conditions

Many scholarships are only awarded for one year or require recipients to meet specific criteria to maintain funding, so it’s important to read the renewal terms and conditions of the scholarships you receive. Students may need to maintain a minimum GPA, be enrolled full-time, or continue in a particular field of study. Understanding these requirements upfront helps students plan academically and financially, avoid losing their award unexpectedly, and ensures long-term support throughout their graduate program.

Using Student Loans to Cover Grad School

Scholarships and grants aren’t the only options for paying for graduate school. You may also choose to take out graduate student loans.

Consider focusing on scholarships and grants before student loans, as those don’t need to be repaid. Student loans, on the other hand, will have to be paid back. If you’re applying for graduate federal or private loans, it’s worth noting that you can borrow more as a graduate student, but you might be looking at higher interest rates.

If you don’t receive enough financial aid through federal loans, you can consider private student loans. Rather than being provided by the government, these loans come from private businesses, banks, and online lenders. Students should focus on private student loans as a last resort, as private student loans lack the borrower protections afforded to federal student loans.

Alternative Funding for Graduate School

Other than taking on student loans, there are several alternatives to funding your graduate degree. If you’re able to work while attending school, you can save and budget to cover a portion or all of your tuition.

Employer Tuition Assistance

If you are working, you can speak with your employer to see if they offer a tuition reimbursement program. Employee tuition reimbursement might require you to stay at the company for a number of years or pursue a specific degree. Program requirements will vary by company.

Graduate Assistantships and Teaching Roles

Graduate assistantships and teaching roles offer graduate students a valuable way to fund their education while gaining professional experience. In exchange for assisting with research, teaching undergraduate courses, or supporting academic departments, students often receive tuition waivers, stipends, or both. Speak with your particular university for specific details.

The Takeaway

There are a wide array of grants and scholarships available for students pursuing graduate school. These include those offered by federal and state governments, individual schools, and other interest groups like nonprofit organizations. To find grants and scholarships, students can review online databases, speak with the financial aid office at their school, and fill out the FAFSA each year.

In addition to scholarships, students can pay for graduate school with cash savings, grants, and federal and private student loans.

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

How do I get a full scholarship to graduate school?

It’s possible to get a scholarship that will pay for all of your graduate school costs. It can be very competitive to qualify for full-ride scholarships, so it may help to complete an application and make sure you meet all the requirements. If an essay is required, be sure to allocate enough time for writing and editing so that you are submitting a strong application. Some schools may offer full-ride scholarships to the top students.

Do master’s programs give scholarships?

Yes, many master’s programs offer scholarships to help offset tuition costs. These can include merit-based awards, need-based scholarships, and funding for specific fields of study. Additionally, universities, private organizations, and government programs often provide scholarships tailored to graduate students pursuing advanced degrees in various disciplines.

Are scholarships available for graduate school?

Yes, scholarships are available for graduate school. Fill out the Free Application for Federal Student Aid if you are interested in federal scholarships or grants. Check in with your school’s financial aid office for more resources.

Can I apply for scholarships if I’m already enrolled in grad school?

Yes. Many scholarships allow applications from students already enrolled in graduate programs. Schools, professional organizations, and private foundations often offer awards for current students to help cover ongoing tuition, fees, or living expenses. Always check eligibility requirements, as some scholarships target specific years, fields, or academic progress.

How can you find scholarships for graduate students?

Graduate students can find scholarships by checking their university’s financial aid office, searching online scholarship databases, and exploring awards from professional associations in their field. Local nonprofits, employers, and community organizations also offer funding.

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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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