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Cosmetology scholarships can be a game-changer for students who want to pursue their passion for cosmetology (hair, makeup, and skincare) but worry about the cost. Scholarships can help pay for your education, and you don’t need to pay them back.

Cosmetology school costs can vary widely, but most programs are under $20,000. That’s still a significant amount of money, especially if you’re just starting out. Fortunately, cosmetology scholarships are available to help lighten the financial load.

Here are some of the top cosmetology scholarships in 2026 and where to find them.

How to Find Scholarships for Cosmetology Students

When searching for scholarships for cosmetology school, there are plenty of resources available, including:

•   Free scholarship search tools, such as SoFi’s Scholarship Search Tool

•   High school guidance counselors

•   The financial aid office at your college or career school

•   Local resources, including libraries, businesses, and community groups

•   Nonprofits like the Professional Beauty Association

•   Your employer or your parents’ workplace

•   Professional organizations in your field of interest

How to Qualify for Cosmetology Scholarships

Every cosmetology scholarship has unique eligibility requirements, so make sure to review them carefully before applying.

Requirements might include:

•   Maintaining a minimum GPA

•   Completing a certain amount of community service

•   Being a U.S. citizen

•   Planning to enroll (or being enrolled) in an accredited cosmetology program

•   Demonstrating leadership skills or potential

•   Providing letters of recommendation

•   Submitting your resume

•   Submitting the Free Application for Federal Student Aid (FAFSA®)

Top Cosmetology Scholarships

Here are some top cosmetology scholarships to help you fund your education so you can kick-start your beauty career.

Buy-Rite’s Annual Beauty School Scholarship

Scholarship amount: $1,000

Application deadline: November 1

Buy-Rite’s Annual Beauty School Scholarship is a $1,000 scholarship for cosmetology and barber students who best embody Buy-Rite Beauty’s core values. To apply, you must submit an essay detailing your most meaningful achievement and explaining how it relates to your future career in cosmetology.

Great Clips Great Scholarship Program

Scholarship amount: Up to $5,000

Application deadline: March 1

The Great Clips Great Scholarships Program is for future stylists and barbers in the U.S. and Canada, offering up to $5,000 to help launch their careers. To apply, answer the question, “What is exciting to you about a career in the cosmetology or barbering industry? Why?”

Beauty & Wellness Professionals Scholarship

Scholarship amount: $2,500

Application deadline: March 2

BeautySchoolDirectory.com offers a $2,500 Beauty & Wellness Professionals Scholarship twice a year to students and professionals passionate about making a difference in beauty and wellness. It’s open to both U.S. residents and legal residents over 18. To be considered, you must submit a three-minute video answering one of the prompts on the application.

The Rosy Rewards Scholarship

Scholarship amount: $250

Application deadline: October 1

The Rosy Rewards Scholarship, offered by Rosy Salon Software, awards two $250 scholarships each year to cosmetology students who are passionate about the industry. To qualify, you must be enrolled in a cosmetology, barber, or esthetics program and submit a letter of recommendation, your resume, and two of your best pictures to showcase your skills.

The Joe Francis Haircare Scholarship

Scholarship amount: $3,000 or more

Application deadline: June 1

The Joe Francis Haircare Scholarship is a scholarship worth $3,000 (or more) that supports students pursuing a career in the beauty industry. To apply, you must fill out the application and submit two letters of recommendation.

Elevate Your Education Scholarship

Scholarship amount: $1,400 value

Application deadlines: March 1, July 1, November 1

Elevate Your Education with Dermalogica offers scholarships to support passionate and talented new skincare professionals. These scholarships cover the cost of either the Expert Program or the Product Expert Program workshops, valued at over $1,400.

Sallie Mae Scholarship

Scholarship amount: $2,000

Application deadline: December 31

The Sallie Mae Scholarship Sweepstakes awards $2,000 to U.S. beauty students over 17 years of age. A sweepstakes scholarship is a random drawing in which winners are picked by chance, giving every eligible student an equal shot at the award.

SoFi Scholarship Giveaway

Scholarship amount: $2,500

Application deadline: Monthly

The SoFi Scholarship offers students a chance to win $2,500 every month through a sweepstakes. It’s a simple drawing that can provide some extra financial support for your education.

Recommended: How to Pay for College

Can You Get a Federal Student Loan for Cosmetology School?

Yes, as long as your cosmetology program is accredited, you can apply for federal student loans and other types of aid. To check if your school is accredited, you can use the Database of Accredited Postsecondary Institutions and Programs or just call the school directly.

Federal aid includes grants, work-study, and federal student loans. To find out what aid you qualify for, complete the FAFSA®. The FAFSA for the 2026-27 academic year became available to all students on September 24, 2025.

How to Make Money While in Cosmetology School

While it’s important to prioritize your schoolwork, you can still find money-making opportunities that fit into your busy schedule. Options for making money while in cosmetology school include:

•   Finding a full-time or part-time job. There are numerous jobs for cosmetology students to make money during school. For example, you may consider working at a salon as an assistant or receptionist. By choosing a job within your field of study, you can earn money and gain hands-on experience.

•   Starting a side hustle. If a flexible gig is more your style, think about ways to generate income in your free time, like driving for Uber, delivering food, or offering freelance beauty services for events. With a side hustle, you can usually set your own hours, allowing you to work around your cosmetology school schedule.

•   Offering your services to friends and family. Providing haircuts, manicures, and makeup services to people you know is another good way to make money and build your experience.

•   Starting a beauty YouTube channel. If you love sharing beauty tips, consider starting a blog or YouTube channel. You can create tutorials, conduct product reviews, and feature other content so you can grow your audience and earn money through sponsorships and ads.

Recommended: Best Side Hustle Ideas

The Takeaway

If you’re looking for ways to pay for cosmetology school, applying for cosmetology scholarships can be a good option. While some scholarships are competitive, many others go unclaimed each year. It’s always worth applying since it doesn’t cost anything, and it may help you significantly lower your out-of-pocket expenses for school.

You can also consider exploring other ways to cover college costs, such as cash savings, grants, federal student loans, 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.

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

When should I start applying for cosmetology scholarships?

When it comes to applying for cosmetology scholarships, the earlier you start, the better. Applying early gives you access to more opportunities and helps you avoid that last-minute rush. It might feel a bit overwhelming at first, but starting early makes the whole process more straightforward.

Can I get a scholarship for cosmetology school?

There are many scholarship opportunities available for students pursuing a career in the beauty industry. Whether you’re just starting or are already enrolled, you can find scholarships tailored to support aspiring cosmetologists, estheticians, and other beauty professionals.

Does the FAFSA cover cosmetology?

If you’re enrolled in an accredited cosmetology school, you might qualify for federal financial aid by filling out the Free Application for Federal Student Aid (FAFSA). This can help cover tuition, fees, and other expenses, so it’s worth applying to see what kind of funding you can receive.

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Photo credit: iStock/Sergey Pakulin

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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.

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.

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High school is a pivotal time for students, filled with academic and personal growth. Among the four years, junior year is often considered the most challenging.

Many students find junior year particularly tough due to increased academic demands, the pressure to score high on standardized tests, and the time needed to spend researching and applying to college.

Keep reading to learn more about why junior year is often considered the hardest year in high school.

Why Every Year Matters

While many say junior year is the hardest year of high school, that’s not an excuse to cruise through the other three years.

Freshman and sophomore year are building opportunities. In these two years, many students will take prerequisite courses and join extracurricular activities they’ll carry out the rest of their high school career.

As a freshman, students will have to adjust to high school and its academic rigor. Getting good grades and getting involved in activities during the first two years of high school can help set the pattern for the next two years.

Many students may claim that senior year is the time to sit back and take it easy, but letting your grades slide can spell trouble for plans post-graduation. Admission to college, even if already granted, could be rescinded if a senior underperforms in their final year.

Recommended: 11 Ways to Prepare for High School Graduation

Why Junior Year Can Be the Most Challenging

A student’s junior year has its own set of unique challenges and hardships. Here’s what can make junior year tougher than the rest:

Course Load

Junior year is the time to shine before students apply to college. It’s the last full academic year of grades a university will receive before deciding to accept or reject a student. Students may elect to take their most challenging course load during their junior year to show colleges that they’re capable of academic rigor.

Some students may enroll in AP courses. These classes give high school students the chance to prepare for college by tackling college-level material while still in high school. At the end of an AP course, students can choose to take the AP exams. Scores from those tests may grant students college credits so they can skip basic courses in their first years on campus.

Junior year can be an academic step-up for high school students if they decide to take AP classes. In addition to the classes being more difficult, there’s more pressure to achieve good grades because they indicate academic capability to colleges.

Tests

On top of AP tests, juniors have more key tests to prepare for. Each test comes with its own strategies and approaches, which require specialized study and prep. A junior might prepare for and take the following tests during the year:

•   AP tests: As mentioned above, if a student decides to take an AP course, they can choose to take the corresponding AP test, as well.

•   PSAT/NMSQT: Students can take the Preliminary SAT (PSAT) or National Merit Scholarship Qualifying Test (NMSQT) as early as their sophomore year of school, but many take it during junior year. The PSAT/NMSQT has two sections: math and reading/writing. Scores for each section fall between 160 and 760. Offered in October each year, the PSAT doesn’t impact college admissions like the SAT, but it can help students qualify for National Merit Scholarships if they receive a certain score. Students are not required to take the PSAT test, but it can be one way to prepare for the SATs and potentially qualify for scholarships.

•   SAT/ACT: Scores from either the SAT or ACT test are required by many colleges for admission. However, even if they’re not required by a college, a strong SAT or ACT score can help give a student a leg up in the application process.

Most high school students choose to take the SAT or ACT tests in the spring of their junior year or the fall of senior year. Both tests have certain quirks and strategies associated with them, so the key to getting a great score may mean months of preparation.

College Prep

Juniors not only face greater academic pressure due to tests, but many also begin preparing for college. Whether that means spending weekends touring campuses or researching schools at night, finding a school that’s the right fit can take up a considerable amount of time.

Choosing a college can be difficult, as there’s no one way to ensure the right fit for all students. Some may choose a campus based on their desired degree, whereas others choose a campus for proximity to home or budget. No matter the motivator, finding the right school can take time.

Exploring Financial Aid

Taking time to learn about the Free Application for Student Aid (FAFSA) and student loans can help give juniors a better sense of what lies ahead of them. Even with financial aid, they might need to evaluate additional options to pay for their tuition. That could mean saving for college by picking up a part-time or summer job or researching scholarships and grants that can help pay tuition.

It’s important that a student understands what options are available to help them pay for school before committing to any single strategy. Using a student loan calculator can help you estimate your college costs.

Recommended: College vs University

The Takeaway

Junior year challenges students to juggle their extracurricular activities, rigorous academic classes, and standardized testing on top of applying for college. Figuring out a way to pay for college shouldn’t be another challenge. As early as junior year, students can start considering the cost of college and how to pay for it.

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

What is the most crucial year in high school?

Junior year (11th grade) is often considered the most crucial year in high school. It’s when students take standardized tests, maintain grades for college applications, and start researching and visiting colleges. Strong academic performance during this year significantly impacts college admissions decisions.

Why is junior year the hardest year in high school?

Junior year is often the hardest in high school due to increased academic demands, including advanced courses and standardized testing such as the SAT or ACT. Students face pressure to maintain high grades for college applications while balancing extracurricular activities, leadership roles, and planning for their future.

What is the easiest year in high school?

Freshman year is generally considered the easiest year in high school because students are adjusting to the new environment and typically take introductory-level courses. The academic and extracurricular pressures are usually lighter compared to later years, allowing students to gradually acclimate to the increased expectations of high school life.

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

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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.

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

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

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All college students are required to declare a major, but what about a minor? This is a question many students find themselves asking halfway through their college curriculum.

Knowing what a minor is, what it entails, and if it can bolster your career can help determine if it’s really right for you.

Keep reading to learn more about what a college minor is, how it differs from a major, and its pros and cons.

Defining a College Minor

A college minor, sometimes referred to as a “mini major,” is a group of courses you take in a certain discipline. Minors in college can complement your chosen college major or be totally unrelated.

While most colleges don’t require a student to declare a minor, some do. Schools may have a definitive criterion for your choice of minor. For instance, you may not be able to pursue a minor in the same department as your major.

For the most part, a college minor is voluntary, and a student may not feel it’s important enough to take on the additional coursework alongside their main area of study. Instead, they may want to have complete freedom to use those class credits for electives that may not be as labor-intensive.

Differences Between a Major and Minor

Your major is the main area of specialty that determines the type of bachelor’s degree you’ll earn. It’s the field of study you’ve chosen based on your professional aspirations. One way to think of it is that your major is your primary job, and your minor is more of a side gig.

When you finally earn your college diploma, it will be for your major, not your minor. That’s because a college minor is typically considered optional and not a requirement for your core curriculum. Even if your school does require you to choose a minor, it won’t be reflected on your degree unless your school is one of the exceptions to that rule. However, it will most likely appear on your college transcript.

Another key distinction between a college major and a minor is the amount of coursework you have to complete and how much it counts toward your final credits. Depending on your school, a major will make up one-third to one-half of the school’s credits needed to graduate, which is typically 120 credits for a four-year program.

In general, a college major will require you to complete at least 10 courses compared to five to seven classes for a minor. A minor typically requires 16 to 30 credits.

Recommended: Credit Hours: What Are They & Why They Matter

Benefits of Pursuing a College Minor

There are many upsides to tacking on a college minor. If you’re wondering whether or not it’s worth pursuing, consider these pros:

Explore Complementary Interests

A college minor related to your major allows you to expand your expertise in that related field. For instance, if you’re a biology major and decide to minor in chemistry, you’re already familiar with the basics of science and look at things from a scientific perspective. There are similar analytical skills you can apply.

But even if your minor is in a different area, it can still positively impact your major. For example, if you’re majoring in political science, you may want to minor in public speaking, which can be helpful if you have ambitions to run for elected office. You may even find your minor more exciting and decide to change your major to that field.

However, before making any big changes, such as combining the two disciplines and pursuing a double major, it’s a good idea to talk to your academic advisor.

Depending on when you decide to make a change, it could add extra time toward getting your degree. This can translate into additional costs and more student debt.

Develop Secondary Skill Sets

Regardless of whether your minor directly corresponds to your major, you’re acquiring and polishing both hard and soft skills. You can apply these more technical hard skills directly to the type of work your career requires. Soft skills, on the other hand, are more social and interpersonal in nature. Both are important to employers and offer skills they want their prospective employees to have under their belt.

Enhance Marketability and Job Prospects

Homing in on a subject offers you the opportunity to develop more in-depth knowledge and expertise. A minor shows your well-roundedness, flexibility, and the ability to take on different roles. For example, a marketing major who minors in communications can be an asset in the areas of advertising, journalism, and public relations.

A complementary minor can also give you a more solid base and a deeper understanding of some issues you may deal with in your occupation. If a nursing major chooses to minor in psychology, it can help them better understand patient behavior.

Overall, a minor shows a level of seriousness and willingness to challenge oneself. These are qualities that can go a long way and put you at an advantage when applying for your first job out of school or graduate school.

That edge can also help when you’re competing for a college internship.

Recommended: 6 Ways to Save Money for Grad School

Popular College Minor Options

Certain college minors attract more students than others. Here are some popular ones:

STEM Minors

Science, technology, engineering, and math (STEM) consists of natural, physical, and life sciences; computers; electronics and other types of tech; all kinds of engineering; mathematics; and areas that rely on the principles of math. Examples of STEM minors include computer science, kinesiology or exercise science, civil engineering, and statistics.

Deciding on a STEM subject for your minor can give you a leg up in the job market. According to the U.S. Bureau of Labor Statistics, job opportunities in the STEM field are expected to grow 8.1% by 2034, compared to 3.1% for all occupations.

Business Minors

With a business minor, you can take classes in accounting, marketing, human resources, and e-commerce. Choosing business as a minor allows you to learn the fundamentals of business, which can be extremely valuable and practical in the real world and may help you stay on top of paying for college.

Knowing more about how business is conducted and becoming more savvy about finance benefits you both professionally and personally. Career-wise, it can come in handy if you’re applying for a job that may require a deeper understanding of certain business practices. In your own life, you may even get a better handle on your own financial situation when it comes to managing private student loans.

Recommended: 4 Student Loan Repayment Options and How to Choose the Right One for You

Liberal Arts Minors

Liberal arts is a field with a broad range of disciplines, including creative arts, social sciences, humanities, and more. People who decide to minor in liberal arts may choose sub-studies in English, psychology, sociology, anthropology, philosophy, or communication.

For someone with a very demanding major, a liberal arts minor can offer a less taxing curriculum. Instead of being geared toward technical skills, liberal arts classes give students the opportunity to focus on critical thinking, collaboration, creativity, and verbal and written communication skills.

Language and Cultural Minors

Minors specializing in different aspects of cultural heritage and language can expose students to different worldviews, beliefs, and practices.

A foreign language minor allows you to become bilingual or multilingual, which is a huge asset in the workforce where there’s an increasing demand for people who speak other languages. You may want to expand on your high school language classes or minor in a completely new one.

A language minor may also be one in linguistics, which is the study of language structure, including phonetics, syntax, semantics, and the history of how language has changed over time. Students may also find that their college offers a minor in American Sign Language.

Cultural studies minors are designed to study all types of cultures, their histories, and perspectives. These can include groups based on class, gender, ethnicity, race, religion, and geographical location. Classes in popular culture, women’s studies, world religions, and African-American or Asian studies are some examples of cultural studies minors.

Choosing a Complementary College Minor

Picking a minor in general adds extra knowledge and allows you to build more expertise in another subject. Minoring in a complementary course of study, however, shows you’re serious about exploring an area that closely aligns with your major.

Regardless of whether your minor directly corresponds to your major, you’ve decided to use a portion of your credits toward another group of required classes, which indicates a commendable level of focus and commitment.

Potential Drawbacks of a College Minor

There are some drawbacks to declaring a minor. First, a minor can take up a lot of time, so you’ll want to make sure it’s an area you’re genuinely curious about and have a real interest in. Consider the amount of work you’ll have to do, such as writing papers, studying, and taking exams. These additional classes could end up adding unnecessary stress to your major’s workload.

A minor could also end up costing you more money, especially if you declare a minor late in the game. You may not be able to get all the necessary classes before graduation, which means you may have to extend your education by a semester or more.

The Takeaway

A minor, in most cases, is an optional supplementary course of study that can broaden your knowledge, expand your skill set, and open up more career options after graduation. Having a college minor can also make your undergraduate studies a lot more fun, especially if it’s a topic where you have a strong personal interest.

Ways to finance your minor include cash savings, scholarships, grants, and both 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.

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’s the difference between a minor and a concentration?

A minor can be a secondary course of study in any area, while a concentration is a subgroup of structured classes that directly relate to your major. For example, if you’re an English major, your concentration may be in creative writing, made up of poetry, fiction, nonfiction prose, and dramatic writing classes.

Do minors appear on your diploma or transcript?

Minors will appear on your transcript, but the vast majority of colleges and universities don’t include them on your diploma. The standard practice is to list only the student’s major on their bachelor’s degree.

How late in your college career can you add a minor?

Most colleges ask students to choose their major by the end of their sophomore year or the beginning of their junior year, which can also be an ideal time to choose a minor. You could declare it before you start your senior year, but it’s important to consider the fact that you’ll have to cram all of that minor’s classes into one year. This could impact your graduation date if you need to carry your studies over to another semester to fulfill your minor’s requirements.

Do minors impact financial aid eligibility?

It depends. Federal financial aid rules mandate that only courses required for your major and degree program are eligible. However, classes required for a minor may be eligible for financial aid if they also satisfy major, core, or elective requirements for your degree. Otherwise, financial aid will be reconfigured or removed to reflect eligibility based on qualifying courses.

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Photo credit: iStock/Drazen Zigic

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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

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

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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There are several options for financing a college education, each with its own pros and cons.

Depending on your academic qualifications, you may have been awarded scholarships or grants, which are funds that typically won’t require repayment. Any expenses not covered by a scholarship will need to be financed, often through a combination of work-study, personal funds, and student loans.

It’s fairly common for college students to take out student loans to finance their education. There are two main types of student loans — private student loans and federal student loans. This article compares and contrasts some of the more popular features of both, exploring features that can help you determine what makes the most sense for your financial situation.

Types of Federal Student Loans

Federal student loans are funded by the federal government. In order to qualify, you must fill out the Free Application for Federal Student Aid (FAFSA®) every year that you want to receive federal student loans. Here are some important distinctions to consider.

Subsidized vs Unsubsidized Loans

Federal loans can be subsidized or unsubsidized. If you’re an undergraduate student in financial need, you may qualify for a subsidized loan. Your school will determine the amount of money you qualify for.

With subsidized loans, the U.S. government covers the interest that accrues while you are a full- or half-time student, during a six-month grace period after graduation, and for any periods of loan deferment.

If you receive an unsubsidized federal loan, you don’t need to demonstrate financial need when applying. Interest begins accruing from the day your lender disburses funds for your loan, though borrowers are not required to make payments until six months after graduation. As with subsidized loans, your school will determine the amount you can receive, based on your cost of attendance.

Direct PLUS Loans for Parents and Graduate Students

Direct PLUS Loans are another source of federal student loan funding. To qualify for graduate PLUS Loans, you need to be a graduate-level or professional student in a program that offers degrees or certifications, and attend college at least half-time.

Note that, beginning July 1, 2026, no new Direct PLUS Loans will be offered for graduate and professional students. For students who receive a Direct PLUS Loan before this date, they can continue borrowing under the current terms through the 2028-29 school year.

Parents can also apply for a Parent PLUS Loan if their dependent undergraduate student attends an eligible school at least half-time. “Parent” is defined as biological, adoptive, or, in some cases, stepparent.

To obtain a Direct PLUS Loan, you cannot have an adverse credit history, and you and your dependent child must meet the general eligibility requirements for federal student aid.

Recommended: How Do Student Loans Work? Guide to Student Loans

More About the FAFSA

You’ll need to complete the FAFSA form if you plan to apply for any of these types of federal loans. Be aware of your state’s FAFSA deadline — FAFSA funding is determined on a rolling basis, so the sooner you can apply, the sooner you may qualify.

The new FAFSA application typically becomes available on October 1 of the prior year, so the 2026-27 FAFSA form became accessible on October 1, 2025.

Benefits of Federal Student Loans

First off, you won’t be responsible for making student loan payments while you’re actively enrolled in school. Your repayment will typically begin after you graduate, leave school, or are enrolled less than half-time.

Another perk is that your credit history doesn’t factor into a federal loan application. One exception is Direct PLUS Loans for grad students and parents.

Interest rates on federal student loans are fixed and typically lower than interest rates on private student loans. Depending on the type of federal loans you have, the interest you pay could be tax-deductible.

There are several federal student loan repayment options, including income-driven repayment plans.

Deferment and forbearance options are available if you run into difficulty repaying your federal student loans after graduation or if you drop below half-time enrollment. These programs allow qualifying borrowers to temporarily pause payments on their loans should they run into financial issues, but interest may still accrue. The loan type will inform whether a borrower qualifies for deferment or forbearance. Borrowers can contact their student loan servicer for more information on these programs.

Qualifying borrowers can also enroll in certain forgiveness programs, such as the Public Service Loan Forgiveness (PSLF) program. These programs have strict requirements, so borrowers pursuing forgiveness should review the program details closely.

Federal Student Loan Pros and Cons

Here’s a recap of some of the pros and cons of federal student loans.

Pros	Cons
Federal student loans do not require a credit check, except for PLUS Loans.	Federal borrowing limits may mean that students aren’t able to borrow enough funds to cover their entire cost of attendance.
Undergraduates may apply for Direct Subsidized Student Loans. Interest does not accrue while students are enrolled at least half-time, during the grace period, and during qualifying periods of deferment or forbearance.	Not all students qualify for Direct Subsidized student loans, which are need-based. Borrowing limits also apply.
Deferment and forbearance options are available to borrowers who experience financial difficulties during repayment.	Depending on the type of loan, interest may accrue during periods of deferment or forbearance.
Borrowers have access to federal repayment plans, including income-driven repayment plans.
Fixed interest rates are generally lower than interest rates on private student loans.
Borrowers may pursue federal loan forgiveness through programs such as the Public Service Loan Forgiveness program.

The CARES Act and Federal Student Loans

The CARES Act, passed in March 2020 in response to COVID-19, temporarily paused payments on most federal student loans and set the interest rate to 0%. With the signing of the debt ceiling bill in June 2023, the three-year pause ended. Interest on federal student loans resumed on September 1, 2023, and the first post-pause payments were due shortly after. To ease the transition, lenders said they would not report borrowers as delinquent if they were late with payments through September 2024.

The CARES Act and the payment pause did not apply to private student loans.

Private Student Loans

The government does not fund private student loans. To apply for them, you can check with individual lenders (banks, credit unions, and online lenders), the college or university you’ll be attending, or loan agencies.

Because these loans are available from multiple sources, each comes with its own terms and conditions. When applying for private student loans, it’s important to clearly understand annual percentage rates and repayment terms before signing, as well as the differences between private and federal student loans.

Private student loans are not associated with the federal government, so their repayment terms and benefits vary from lender to lender. Some private loans require payments while you’re still attending college. Unlike federal loans, interest rates could be fixed or variable. If you’re applying for a variable-rate loan, it’s a good idea to check how often the interest rate can change, plus how much it can change each time and what the maximum interest rate can be.

When applying for a private loan, the lender typically reviews your financial history and credit score, which means it may be beneficial to have a cosigner.

Be sure to ask your lender about repayment options in addition to any deferment or forbearance options. These will all vary by lender, so it’s important to understand the terms of the particular loan you are applying for.

Benefits of Private Student Loans

Private student loans offer several benefits that can make them an attractive option for some students. One significant advantage is their ability to cover the full cost of attendance, including tuition, fees, and living expenses, which can be particularly helpful if federal loan limits are insufficient.

Private lenders often provide a variety of loan options with different repayment terms and interest rates, allowing borrowers to choose a plan that best fits their financial situation and future income expectations. Some private loans offer competitive interest rates, especially for borrowers with excellent credit or a creditworthy cosigner, potentially resulting in lower overall borrowing costs than federal PLUS loans.

Another benefit of private student loans is the potential for customization and flexibility in loan features. Many private lenders offer interest rate discounts for autopay enrollment, loyalty discounts for existing customers, and even the option to release a cosigner after a certain period of on-time payments.

You can also access private loans more quickly than federal loans, which can be advantageous in time-sensitive situations.

Private Student Loans Pros and Cons

Here’s a review of some of the pros and cons of private student loans.

Pros	Cons
Higher loan limits that can cover the cost of tuition, fees, and living expenses	Generally, higher and potentially variable interest rates compared to federal student loans, especially for borrowers with lower credit scores
Competitive interest rates for borrowers with excellent credit	Require a good credit score or a creditworthy cosigner, making them less accessible for some students
Flexible repayment terms and interest rate options (fixed and variable)	Limited repayment plans and fewer options for deferment and forbearance compared to federal loans
No loan origination fees	No access to federal loan benefits such as income-driven repayment plans, forgiveness programs, and forbearance options
Interest rate discounts for autopay, loyalty discounts for existing customers, and tailored loans for specific professional programs	If opting for a variable rate loan, the interest rate can increase over time, leading to higher payments.
Option to release a cosigner after a period of on-time payments, reducing the financial obligation on the cosigner

Private loans can help fill the monetary gap between what you’re able to cover with grants, scholarships, federal loans, and the like, and what you owe to attend college. It’s always a good idea to take the time to do your research, shop around, and find the best loan options for your personal financial situation. For a full overview, take a look at SoFi’s private student loan guide.

Determining Whether a Student Loan Is Federal or Private

To find out if the student loan you have is a federal student loan, one option is to check the National Student Loan Data System. This database, run by the Department of Education, collects information on student loans, aggregating data from universities, federal loan programs, and more.

Borrowers with federal student loans can also log in to My Federal Student Aid to find information about their student loans, including the federal loan servicer.

Private companies administer private student loans. To confirm information about a private student loan, you can review your loan statements and contact your loan servicer.

Recommended: Refinance Federal Student Loans

Options for After Graduation: Consolidation vs Refinancing

After graduation, depending on your student loan situation, you may wish to consider consolidating or refinancing options to combine your various loans into a single loan.

The federal government offers the Direct Consolidation Loan program, which allows borrowers to combine all their federal loans into a single loan.

Loans consolidated in this program receive a new interest rate that is the weighted average of the interest rates of all loans you are consolidating, rounded up to the nearest one-eighth of a percent. This means that the actual interest rate isn’t necessarily reduced when consolidated. If consolidation reduces your monthly payments, it’s most likely because it has lengthened the repayment term. Additionally, only federal student loans are eligible for consolidation in the Direct Consolidation Loan program.

Student loan refinancing, on the other hand, means taking out a new loan to pay off all the other student loans. Depending upon your individual financial situation, you could qualify for a lower interest rate through refinancing.

There’s typically a credit check of some kind when you apply to refinance with a private lender. Each lender reviews specific borrower criteria that influence the rate and terms an applicant may qualify for.

Recommended: The SoFi Guide to Student Loan Refinancing

Combining Federal and Private Student Loans

Refinancing federal loans with a private lender is the only option that allows borrowers to combine both federal and private student loans into a single loan. It’s very important to understand that while refinancing may allow you to secure a competitive interest rate or preferable terms, your loan no longer qualifies for federal benefits or borrower protections.

Refinancing may make sense for federal student loan holders who don’t plan to use any federal programs or payment plans, but it won’t work for everyone. When evaluating whether you should refinance student loan debt, reflect realistically on your professional and financial situation. For example, borrowers enrolled in income-driven repayment plans or pursuing PSLF may find that refinancing their federal student loans doesn’t make sense for their personal goals.

The Takeaway

Federal student loans differ from private student loans in key ways. You must complete the FAFSA each year to qualify for federal loans. With subsidized federal loans, interest doesn’t accrue until after graduation and a six-month grace period. Federal loans also offer special protections to borrowers, such as deferment and PSLF. The same protections are not available for private student loans. You may or may not qualify for a lower interest rate on a private student loan, depending on your credit history, but your credit score doesn’t affect your ability to qualify for federal 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.

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 is the difference between a federal and private student loan?

Federal student loans are issued by the U.S. government with fixed interest rates, more flexible repayment options, and benefits such as income-driven repayment plans and loan forgiveness programs. Private student loans are offered by private financial institutions with rates and terms based on creditworthiness, often requiring a cosigner and generally lacking the same level of repayment flexibility and borrower protections. However, private student loans are a good option once federal student loans have been exhausted.

What is the downside to using private student loans instead of federal student loans?

The downside to using private student loans instead of federal student loans includes higher and potentially variable interest rates, less flexible repayment options, and fewer borrower protections. Private loans often require a good credit score or a cosigner, lack income-driven repayment plans and loan forgiveness programs, and generally offer fewer deferment and forbearance options than federal loans.

How much student loan debt is federal vs private?

According to the Education Data Initiative, federal student loan debt significantly outweighs private student loan debt in the United States, with federal loans comprising approximately 92% of the total student loan debt, amounting to around $1.6 trillion, while private loans account for the remaining 8%, or roughly $140 billion.

Is it better to get a federal or private student loan?

It is generally preferable to get a federal student loan due to its lower interest rates, flexible repayment options, and robust borrower protections. However, private student loans can be a good choice once federal student loans have been exhausted.

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

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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