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Taking, and doing well on, the Advanced Placement (AP) exam gives you the opportunity to save time and money by earning college credit, advanced placement, or both. It can also help you stand out to colleges and give you an edge in getting accepted to your dream school.

No matter what score you get, the experience of studying for and taking an AP exam can help you build skills you’ll need to succeed in college.

The question is, when should you start studying for AP exams? Generally, students begin studying for AP Exams some time between January and March. This gives you enough time to cover all the material, take AP prep courses (if desired), take practice tests, and develop an AP test strategy. Read on for a closer look at when and how to study for AP Exams.

Creating a Study Timeline

One smart way to prepare for your AP Exam is to create a timeline leading up to the test. Giving yourself a schedule you can (hopefully) stick to might help keep you organized while studying.

Here are some ideas to help you prepare for your upcoming AP Exams — all arranged in a timeline leading up to your AP tests.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

January (16 Weeks Out)

To first figure out how to study for AP Exams, you can evaluate how your current AP classes are going. One place to start is by checking your grades from last semester and, if you are struggling with a certain topic, contacting your teacher to see what help is available.

You might want to schedule some extra one-on-one time or join (or even start) a specific class study group. Of course, your grade isn’t necessarily an indication of the score you will get on your AP Exam. But if your teacher has been using AP practice questions on tests, that could still give you a sense of your early performance — and it may even boost your confidence going into the test if you’re acing those practice answers.

This is also a good time to start thinking about which AP Exams you want to take in May. Just because you are in an AP class doesn’t mean you have to take the AP exam in that subject. Consider which exams might help put you on a path toward college and career success.

The test schedule is always published well in advance of the exam days, so you may want to check when your exams will take place and block those dates out in your calendar now. If you have exams scheduled for the same date and time, this is a good time to ask your AP coordinator or teacher about taking one during an approved late-testing period .

January is when students with disabilities must request any accommodations during the exams. If you will need testing accommodation, you’d want to approach your AP teachers or AP coordinator ahead of the deadline.

February (12 Weeks Out)

A productive next step is to learn the format for each AP exam you plan to take. Paying attention to the structure of class tests might give you some insight into the types of questions you can expect.

There are a total of 38 AP Exams, and each has its own requirements. Most will be two to three hours long with a mix of multiple-choice and free-response questions, according to the College Board.

This can also be a good time to take your first practice exam. Since you’re past the midpoint of the year, you’ll have covered enough material in class that you will be able to answer a decent amount of practice questions and problems without getting frustrated. After reviewing your practice exam, you can come up with a study plan to go over your notes and materials for a few hours every week.

Recommended: Importance of Junior Year of High School

March (8 Weeks Out)

AP Exams cost $98 each, so this month can be a great time to start budgeting for how many exams you plan to take and how you will pay for them. Even if your parents are paying for your exams, you’re responsible for making sure they understand the cost and when to submit payment to your school.

The College Board, which oversees the AP, offers a $36 fee reduction per AP Exam if you have significant financial need. Some states offer additional funding to reduce your cost even more. Check with your AP coordinator to find out what support may be available to you.

This is also the month when you will want to really delve into your AP study regimen and continue taking practice tests.


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April (Four Weeks Out)

By April, you will probably be completely registered for all of your AP Exams. If you haven’t gotten a link from your school guidance counselor, you may want to check in with a school administrator. This is when you really should start to study in earnest, if you haven’t done so already.

Now’s the time to start taking more practice exams, in addition to your regular study and review. You can look up past free response questions (for exams that have them), real student responses, their scores, as well as scoring guidelines so you can see why a real exam taker got the score they did.

Once you’re four weeks out, it might be more efficient to study just the areas you feel less practiced and confident in, rather than trying to cram in all of the information from the past year. The practice exams and questions can help you sort out which topics just need a simple refresh, and which ones you might need to actually relearn.

Recommended: The ACT and SAT: Which Test is Right for You?

May (It’s Time!)

You can kick May off by taking another practice exam and focusing on the results compared to when you first began reviewing all those weeks ago. The focus is now on prepping for test day, which might include checking to make sure you have your test dates and times marked in your calendar and that you are using the correct, approved calculator for math and science exams.

On test day, you can start your day with a good breakfast. If you are taking multiple tests in one day, you may also want to pack some nutritious snacks. Hopefully all of the studying from the last few months will pay off when you sit down to take the AP Exam and you feel prepared.

Recommended: Do Your SAT Scores Really Matter for College?

AP Study Hacks and Habits

The habits you start honing as you study for AP Exams can not only help you do well on your exam, but also prepare you for college, when you’ll likely be managing a larger workload and juggling multiple assignments and deadlines. Here are some study hacks that can help now — and later.

•   Build in study breaks. Even if you feel you need to spend several hours studying in one sitting, it’s a good idea to work in a short break every hour, even if it’s just a five-minute walk around the block. This can help keep your mind sharp and your energy from sagging.

•   Incentivize yourself. You might hold off watching your favorite TV show or playing your favorite video game until after you have finished studying for the day. This delayed gratification could help keep you motivated to study efficiently.

•   Consolidate class notes at the end of every week. When you are reviewing your notes from your AP classes, try organizing the information as it relates to the sections on the exam. By grouping your notes into related “chunks,” you might find that it’s easier to remember (or refer back to) key points as you get further away from the lesson. An added bonus: Instead of having a year’s worth of scattered information to review as you start taking practice AP Exams, you’ll have clear, organized information with your note summaries.

Planning for Your Future

The College Board says that nearly all colleges and universities in the U.S. offer credit, advanced placement, or both based on your AP scores, typically with an AP score of 3 or higher.

In some cases, students are able to reduce their time in school by one, or even two, semesters, meaning that your AP Exams could end up saving you a lot of money in college. Of course, you will still need to find a way to pay for college, whether it is three, four, or more years.

Fortunately there are a number of ways to fund your college education, including college savings accounts, financial aid (which includes scholarships, grants, work-study, and federal student loans), as well as 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.

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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.

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).

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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College is expensive, with the yearly cost of attendance at private schools now topping $60,000 on average. Looking at these numbers, you may wonder how you will ever possibly afford to send your kids to college.

But before you get too disheartened, it’s important to understand that a college’s published “sticker price” is often very different from what you actually have to pay (known as the net price). What’s more, just putting a small amount of money aside each month in a college fund can add up to a significant sum over time, especially if you take advantage of a tax-advantaged college savings account.

Read on to learn key things about how to save for college — from estimating how much you need to set aside to picking the right college saving fund.

Determining the Cost of College for Your Children

Tuition costs vary widely, depending on the type of school your child wants to attend, the type of degree they’ll earn (bachelor’s or associate), and even geographic location.

According to the College Board, the average annual college tuition costs for the 2024-25 school year were:

•  $11,610: public four-year in-state (a 2.7% increase from 2023-24)

•  $30,780: public four-year out-of-state (a 3.2% increase from 2023-24)

•  $43,350: private nonprofit four-year (a 3.9% increase from 2023-24)

•  $4,050: public two-year in-district (a 2.5% increase from 2023-24)

The College Board also studied the annual, inflation-adjusted change in college tuition and fees over the last decade, which showed some declines:

•  -4%: four-year public schools for in-state students

•  -9%: two-year public schools for in-district students

•  +4%: four-year private (nonprofit) schools

If your kids are young, you may wonder how much college will cost when it’s time for them to head off. Fortunately, there are many online calculators that can help you figure this out, taking factors like your child’s age, the type of school you expect your child to attend, and the expected rise in the cost of college into account.

Net Price vs Sticker Price

Every college and university, private or public, lists a sticker price, which is also known as the cost of attendance (COA). This price includes tuition, fees, room and board, books, supplies, and miscellaneous expenses.

The net price, on the other hand, is what a student would actually pay, after factoring in any financial aid provided by the college and the federal government.

Financial aid is based on your family’s income, as well as the student’s academic achievement. Aid is offered in the form of grants, scholarships, work-study, and sometimes federal student loans. Schools offer aid based on financial need, a student’s “merit,” or a combination.

When you fill out the Free Application for Federal Student Aid (FAFSA), you will receive a Student Aid Index, or SAI. (Previously, this was called the Estimated Family Contribution, or EFC.) Colleges use this number to determine the amount of financial aid they award to accepted students. Typically, colleges come up with a financial aid package to help bridge the gap between the school’s sticker price and what your family can afford to pay.

Indeed, sometimes colleges with the highest sticker price end up costing less than a college with a much lower sticker price.

Recommended: How to Start Saving for Your Child’s College Tuition

Using a Net Price Calculator

Fortunately, you can get an idea of what the net price will be for a particular college before you apply by using the government’s net price calculator. This tool can help students and their families get a better idea of the cost of college, after subtracting scholarships, grants, and other financial aid.

Keep in mind, though, that the net price calculator is going to require specific details about your income and assets, so the more transparent you are regarding your personal finances, the more precise your calculation is likely to be.

When Is a Good Time to Start Saving for Your Child’s Education?

Generally, the sooner the better. In fact, it can be wise to set up and start making small monthly contributions to a college savings fund soon after your child is born.

For some familes, however, it may not be possible to start saving that early. It’s equally important to pay attention to your other expenses and family’s needs. For example, you may want to prioritize building an emergency and paying off expensive credit card debt over saving for college. It’s also a good idea to make sure you’re on track with retirement savings. At the end of the day, students are able to get loans for an education but it’s not possible to take out loans to fund retirement.

Some Options for Saving

When thinking about how to help finance your child’s college education, consider these alternatives.

529 Plan

A 529 education savings plan is an investment account that can be used to save for the beneficiary’s qualified education expenses. The funds can be used to pay for higher education or private elementary or high schools. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

All 529 plans are set up at the state level. However, you don’t have to be a resident of a particular state to enroll in its plan.

If your child decides not to go to school, it’s possible to roll the account over into the name of another family member. If the funds aren’t used for education-related expenses, there may be taxes and penalties.

Family members and friends can also contribute to a child’s college savings plan. They may choose to make deposits to an existing 529 account or set up one themselves, naming a beneficiary of their choice.

Some 529 savings plans offer an age-based investment option to automatically adjust the risk of the investment strategy as the beneficiary gets older. This type of investment approach might be similar to how a target date fund works in your retirement plan.

Regular Savings Accounts

You can also save for your child’s college tuition using a savings account at a traditional bank, credit union, or online bank. Just keep in mind that interest rates, even for high-yield savings accounts, tend to be relatively low. Plus, savings accounts don’t offer the tax advantages you can get with some other college savings vehicles.

It may be difficult to reach education financing goals through a traditional savings account alone since the interest rate might not keep pace with the inflation of college expenses.

Roth IRAs

Although generally used for retirement savings, a Roth IRA can be used to pay for the cost of college. Contributions to a Roth IRA are made with after-tax dollars but earnings grow tax-free.

Generally, to withdraw the earnings from an IRA without paying a penalty (or taxes), the account holder needs to be at least 59 ½ years old. However, if you made the first contribution to your Roth IRA at least five years before, you can also withdraw the growth penalty-free for qualified education expenses, including tuition, books, and supplies.

Keep in mind that, while there may not be an early withdrawal fee, the earnings withdrawn may still be subject to income tax.

Other Options to Pay for College

Sometimes saving alone isn’t enough to cover the cost of college. In that case, there are other funding options available that could help students and their families pay for college.

Private Scholarships

Scholarships are essential free money for college because you don’t have to pay them back. Scholarships are typically merit-based and are offered through a variety of organizations and institutions, including nonprofits, corporations, and even directly from universities and colleges. In some cases, scholarships are awarded on the basis of nationality, ethnicity, or economic need. There are a number of searchable scholarship databases that compile different scholarship opportunities.

Federal Financial Aid

When you complete the FAFSA each year, you will become eligible for federal financial aid. This can include scholarships, grants, work-study, and federal student loans (which may be subsidized or unsubsidized).

Private Student Loans

If savings and financial aid aren’t enough to cover the cost of college, you can fill in gaps using private student loans. These are available through private lenders, including banks, credit unions, and online lenders.

Loan limits vary from lender to lender, but you can often get up to the total cost of attendance, which gives you more borrowing power than with the federal government. Interest rates vary depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, though, that private student loans may not offer the borrower protections — like income-based repayment and deferment or forbearance — that automatically come with federal student loans.

The Takeaway

College tuition can be a daunting expense. Setting up a dedicated account to save for college tuition can help make the process much more manageable. There are accounts, like 529 plans, that are designed specifically to pay for educational expenses.

In addition to savings, students and their families may rely on scholarships, grants, federal student loans, or private student loans to pay for tuition and other educational expenses.

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 biggest downside of a 529 plan?

One of the biggest downsides of a 529 plan is that if you use your savings for nonqualified expenses (that is, not for approved educational expenses), you will be charged an additional 10% tax on earnings.

How much to save for college?

There are many variables when it comes to saving for college, such as whether the student will go to an in-state university or a private college. It can be wise to estimate costs and then aim to save a third of that amount, using grants, scholarships, and federal and private student loans to finance the rest.

How much does college tuition cost?

For the 2024-25 school year, tuition costs averaged $11,610 for students at public four-year in-state schools; $30,780 for those who are out-of-state students at public four-year universities; and $43,350 for students at private four-year nonprofit colleges. These figures do not include room and board and other expenses.

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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.

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).

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

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

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Those looking to save on the price of higher education may decide to pursue community college as a path forward. What is a community college?

Community colleges are public colleges designed to make the cost of attending college more affordable for local students. While community colleges don’t offer four-year degrees, they have two-year degree programs and classes that can transfer to other colleges where students can obtain a four-year degree.

Keep reading for more insight into what a community college is and how these schools work, as well as how they compare to four year universities.

What Are Community Colleges?

Community colleges are colleges designed to serve the local community. Students live off campus (often at home with their families if they are young) and can pursue an Associate of Arts (AA) or Associate of Science (AS) degree, which typically only take two years to complete. Students have the option of taking courses that can transfer credits to a four year university so they can pursue a Bachelor of Science (BS) or Bachelor of Arts (BA) degree.

Community colleges may also have vocational and technical programs for those looking to pursue careers that don’t require a four-year degree, but that do require technical knowledge. If you’re considering trade school vs community college, review factors such as the programs offered, time to complete programs, and any other opportunities (such as professional development opportunities) available at the schools.

How Do Community Colleges Work?

Community colleges provide a flexible learning opportunity that can help students reach a variety of goals. While some students attend community college with a goal to transfer after earning some lower division credits, some attend with the goal of earning an Associates degree.

Other students aim to earn technical certificates (similar or the same as what technical schools offer) and some simply attend because they love learning and want to pick up a new language, take a film history course, or brush up on a favorite subject. Students can choose to take one class or can enroll full-time.

Do They Accept Everyone?

Community colleges generally accept all students. For example, in California community colleges don’t have any testing requirements and students don’t need to have a certain GPA to be accepted. A high school diploma isn’t required either, but for students that want to apply for federal financial aid, usually a GED or high school diploma is required.

Why Are They Cheaper?

Community colleges are funded by the government in order to offer an affordable education for students. The average cost of attending community college for a year is $3,800, but in many states students who meet certain eligibility requirements can qualify for free tuition. Not to mention, there is generally no on-campus housing option for community college students and many choose to save money by living with a family member such as a parent.

What Kinds of Degrees Are Available?

What are community colleges for and what do community colleges offer? As noted previously, community colleges are designed to help students afford the cost of attending college locally. They offer AA and AS degrees, as well as technical and vocational programs. Attending a community college can also make it possible to transfer credits to a four year university so that the student can spend less time and money at a more expensive school.

Pros and Cons of Attending Community College

Before attending community college, there are some advantages and disadvantages worth keeping in mind.

Pros

Pros of community college include affordability, flexibility, and the opportunity to live at home while attending school.

More Affordable

On average, the annual community college tuition is $3,570 versus $9,970 for attending an in-state and public four-year college. Attending a public college out of state or a private college can cost even more.

Can Live at Home

Because community colleges are designed to serve local students, it’s usually possible to live at home with family while attending community college which helps keep education costs down.

Easier Acceptance

Community colleges don’t require a certain high school GPA or test scores in order to be accepted.

Flexible Course Scheduling

Community colleges may have flexible course schedules that allow students to work while attending classes. Some programs may also offer online or hybrid class models.

Cons

There are also some disadvantages, worth considering before attending a community college.

Credits Don’t Always Transfer

Certain course credits only transfer to select colleges which can make the transfer process confusing. Some community college students end up taking courses they don’t end up getting credit for when they transfer. It can help to work closely with your advisor to ensure the courses you complete at community college will transfer to the universities you are interested in transferring to.

Instructors May Not Be Full-Time

Some community college instructors teach at multiple colleges, which could make them less accessible when it comes to office hours.

Less Social or Extracurricular Opportunity

Community colleges have less of an emphasis on social life and activities since students commute and don’t live on campus. Many students also juggle work, parenthood, and other commitments outside of attending community college which leaves little time for socializing.

The table below outlines a recap of the pros and cons of attending a community college.

Pros	Cons
•   More affordable •   Can live at home •   Easier acceptance	•   Credits don’t always transfer •   Instructors aren’t full-time •   Less Social or Extracurricular Opportunity

Differences Between Community Colleges and Universities

When evaluating community colleges vs. universities, major differences include degree types available, cost, time commitment to complete a degree, and the application process.

Community Colleges	Universities
•   Lower cost •   AA and AS degrees •   Vocational and technical training •   Smaller class sizes •   May offer guaranteed acceptance •   Can’t obtain a four year degree	•   More expensive tuition •   BA and BS degrees •   On campus housing and meal plans available •   Competitive application process •   Specific admittance requirements •   Better athletic and extracurricular opportunities

What Are the Job Prospects for Community College Graduates?

Attending community college can lead to many different job opportunities in the business and labor sectors. From automotive technology to culinary arts to childcare to marketing to sales — the list goes on.

Additionally, community college graduates can continue their education if they are interested in a career path that requires a Bachelor’s degree or more.

How to Pay for Community College

Even though community college is one of the more affordable higher education options available to students, some may still need help affording the cost of tuition, fees, and books, which can cost thousands of dollars a year. Here’s a few options students can pursue for paying for community college.

FAFSA

Each year, students can fill out the free Federal Application for Federal Student Aid (FAFSA®) to find out what types of federal grants, scholarships, and federal student loans they qualify for. After seeing what grants they qualify for, students can better determine how much they actually need to spend and if they’ll need to borrow money to afford the costs of attending community college.

Grants

Speaking of grants, this is a form of gift aid that students don’t need to pay back. This is why it’s so important to fill out the FAFSA each year to see what grants are available.

Scholarships

Scholarships are another form of gift aid that students don’t have to worry about paying back. Each school’s financial aid office can help students learn more about what scholarships they have available, but students can also apply for scholarships with external organizations. There are a variety of online databases and scholarship search tools that students can use to learn more about scholarship opportunities.

Federal Student Loans

Federal student loans come from the U.S. Department of Education and as a result tend to have better interest rates and protections (like deferment and access to forgiveness programs) than private student loans for undergraduates offer. When students complete the FAFSA, they’ll learn more about which types of federal loans they qualify for and how much they qualify for.

Private Student Loans

Private student loans come from financial institutions like banks, credit unions, and loan lenders. These loans tend to cost more and how each lender handles repayment and fees, and the rates they charge can vary greatly. Generally, it’s best to exhaust federal student loan options before applying for private ones.

One important thing to know before applying for private student loans is that lenders will evaluate the applicants credit score and history, as well as their income are taken into account. The better someone’s credit history is, the better interest rates and loan terms they can qualify for. This is why many young students find it beneficial to add a cosigner to their private student loan application.

The Takeaway

Attending community college can lead students down many different paths, including transfering to a university that offers BA and BS degrees. Community college is typically a more affordable education option for students (unless they qualify for a full-ride scholarship to a four-year university) looking to pursue higher education.

That being said, some students may find they need to take out loans to afford the cost of community college. This is where private student loans can step in.

With SoFi Private Student Loans, borrowers can apply online with a cosigner in just a few minutes. While SoFi’s loans aren’t available to community college students, they may be an option for those transferring to a four-year university. There are no fees and graduates can enjoy a six month grace period before they have to start the repayment process.

Private student loans from SoFi have no fees, offer flexible repayment plans, and an easy online application.

FAQ

How are community colleges and regular colleges different?

Community colleges offer a variety of technical and vocational programs, as well as two year Associate degree programs. Regular colleges offer four-year Bachelor’s degrees, as well as graduate school degrees.

What purpose do community colleges serve?

Community colleges make achieving a post-high school education more accessible and affordable to students. Students can live at home with their families while attending a local community college so they can save money on housing while accessing affordable tuition.

Why are community colleges so much cheaper than 4-year universities?

Community colleges are funded by the government to help make pursuing a college education or vocational training more affordable. Community colleges also lack some of the expensive bells and whistles that large universities come with, like on-campus housing and dining halls.

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

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

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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.

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.
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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Pursuing a four-year degree can lead to a lot of great career opportunities, but there are also many lucrative career opportunities that require a more technical education that a university can’t provide. To pursue certain careers, it may be necessary to attend a technical school.

What are technical schools? In short, technical schools are postsecondary institutions that teach students specialized skills designed to prepare them for a specific profession or trade.

Continue reading for more insight into what technical school is and what the advantages and disadvantages of this education option are.

What Is Technical School?

As briefly mentioned, a technical schools meaning is a school that provides students with education and training in a practical and specialized trade or profession. Technical schools don’t lead to bachelor’s degrees like a university and instead result in earning diplomas or certificates that generally take less than two years to qualify for.

Technical schools are a good fit for students who know what career path they want to pursue, because when a student attends a technical school they choose a specific program designed to prepare them for a certain career. Students who attend technical school don’t take general education classes, which means they are not required to learn more about different disciplines before they choose where to focus their efforts.

Technical school courses include instruction and studying course materials, but also provide hands-on training that helps students build the skills they need to pursue their chosen career. Often, students who attend technical schools are connected to internship opportunities that help them gain real world work experience.

How Is Technical School Different From Trade School?

Trade schools typically focus on more hands-on careers that require having either a certain amount of on-the-job supervised hours in order to pursue a career or a certification of some sort. Trade schools offer hands-on education and prepare students for labor-focused jobs like working as an electrician or carpenter and similar to technical schools, trade school costs are generally less than university degrees.

Technical schools have more classroom lectures and simulated job training and can lead to more creative career paths like floral design, graphic design, and cosmetology, as well as more labor-focused jobs. A recap of the comparison between trade school and technical school is in the below table.

Trade School	Technical School
•   Hands-on education and training •   Prepares students for labor-focused jobs •   Helps students achieve certificates or supervised working hours	•   Classroom education and simulated job training •   Prepares students for labor-focused jobs and creative careers •   Can earn diplomas and certificates

How Is Technical School Different From Vocational Training?

A vocational school is generally the same thing as a technical school and people often use these names interchangeably. Some four-year universities offer vocational degree programs, such as becoming a paralegal, but some vocational programs like cosmetology can only be found at technical or vocational schools.

How Is Technical School Different From Community College?

Community colleges focus more on general education, but also offer technical training, whereas technical schools don’t teach general education at all.

Community College	Technical School
•   Students can pursue a general education •   Credits can transfer to four year universities •   Can prepare students for technical careers or to pursue further academic education	•   Only offers technical coursework •   Credits don’t transfer to universities •   Prepares students for technical careers

How Is Technical School Different From University?

Universities and technical schools are very different. They offer different degree programs, costs, time commitments and more. The table below provides an overview on the differences.

University	Technical School
•   Can pursue a bachelor’s, master’s, or doctorate degree •   On-campus dorm •   Intramural sports •   Clubs and student activities •   Four-year degrees	•   Technical focus •   Less classroom learning •   Hands-on training •   Shorter programs

How Does Technical School Work?

The way that technical school works is students choose a specific program to pursue and then complete the required coursework to finish the program or earn a certificate that enables them to work in the career of their choice. Technical school involves hands-on instruction so students can learn valuable technical skills.

Getting Into Technical School

Generally, students need to have a high school diploma, state-issued GED, or to have passed a state-authorized equivalency exam in order to qualify for technical school, but students don’t have to compete for acceptance like they would at a four-year university.

Cost of Technical School

The cost of technical school can vary quite a bit based on factors including the school, its location, the program type and the length of the program.

What Can You Study in Technical School

A few examples of career paths technical school can lead to include:

•  Computer technology

•  Healthcare support

•  HVAC technology

•  Electrical installation and maintenance

•  Welding or plumbing

•  Hospitality/hotel and restaurant management

•  Culinary arts

•  Cosmetology

•  Floral design

•  Auto mechanics

•  Graphic design

•  Visual arts

•  Office administration

•  HVAC technology

•  Carpentry or construction

Pros and Cons of Attending Technical School

Now let’s look at some advantages and disadvantages associated with attending technical schools.

Pros	Cons
•   Only requires a one to two year commitment •   Some programs only last a few weeks •   Hands-on training for students who have chosen a career path	•   Limited program and course offerings •   Funnels into specific career paths which could feel limiting •   Academic credits don’t transfer to four-year universities

Technical High Schools

There are also technical high schools that prepare high school students for technical career paths while providing them with a more traditional high school education at the same time.

Financing Technical School

Students who are having trouble affording the cost of technical school or who want to save some money can pursue these options for helping them finance their education.

FAFSA

Filling out the Free Application for Federal Student Aid (FAFSA®) each year while attending school, will allow technical school students to learn if they qualify for any grants, scholarships, or federal student loans. Check in with the financial aid office at your technical school if you have any questions about whether or not they participate in the federal aid program.

Grants

Grants are a form of financial aid that students don’t have to pay back. Essentially, a grant gives students free money to pay for their school tuition, fees, and supplies.

Scholarships

Scholarships are another form of gift aid that students don’t have to pay back. It can be a good idea to apply for scholarships to help lower the cost of attending vocational school.

Private Student Loans

Students who don’t qualify for enough gift aid or federal student loans to cover the costs of attending vocational school can apply for a private student loan through a private lender such as a credit union, bank, or loan lender. Unlike federal student loans, private lenders will often evaluate an applicant’s credit score and history, among other factors, when making lending decisions.

Recommended: A Guide to Private Student Loans

Usually, private student loans come with higher interest rates and less perks than federal student loans, so they are generally considered an option after federal options and other funding sources have been exhausted.

Employer Sponsorship

If someone’s employer would benefit from the skills they would gain by attending technical school, then their employer may be willing to pay for them to attend technical school by offering tuition reimbursement or some other form of financial aid. It can’t hurt for employed students to see what support programs their employer has in place.

Job Prospects for Technical School Graduates

Because different technical schools focus on different training programs, students need to choose one that has a program that aligns with their goals. For example, students who want to attend technical school may be doing so to pursue a career as an auto mechanic, electrician, hair stylist, or chef.

Is Technical School Right for You?

There’s no one right path to take after high school or when deciding to switch careers, but some may find that attending technical school can help them pursue the career of their choice.
Consider your career goals and the requirements for pursuing that career path. If that career path would benefit or require the training offered by a technical school, then it may benefit the student to explore attending a technical school. In some cases, another education option may help them reach that goal more effectively and efficiently than technical school.

The Takeaway

Attending technical school can be a great option for those who want to pursue a career that requires a specialized skill set, yet which doesn’t require a college degree. Technical school takes less time than pursuing a four-year degree and can lead to many great career opportunities.

Some students may find they can’t afford to pay cash for technical school and need to borrow money in order to finance their education. This is where private student loans could help.

SoFi’s private student loans aren’t available to technical school students, but may be worth considering for students transferring to a university. With SoFi private student loans, it’s easy to apply online and borrowers don’t have to worry about expensive fees. After graduation, they can enjoy a six month grace period to give them time to start their career before having to pay back their student loans.

It takes just a few minutes to find out if you pre-qualify for a no fee SoFi private student loan.

FAQ:

How are technical schools and trade schools different?

What’s a technical school and how does it differ from a trade school? The main difference between trade schools and technical schools, is that technical schools offer more classroom and instructional education, whereas trade schools do more hands-on training (although technical schools offer this type of training as well, just not as much).

How is college different from a technical school?

At a college, it’s possible to pursue a bachelor’s degree, which usually takes four years to complete, whereas technical school helps students work towards certificates that take two years or less to pursue. Students who attend college usually focus on more academic disciplines, whereas technical school teaches specialized skills.

What can you study at a technical school?

It’s possible to study many different subjects at technical schools and the subjects each school teaches can vary. For example, students can enroll in programs focused on computer technology, healthcare support, HVAC technology, electrical installation and maintenance, and plumbing.

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About the author

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Photo credit: iStock/Laurence Dutton

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.

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).

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.

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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While you have to be at least 18 years old to get your own credit card, you can become an authorized user on someone else’s credit card as a 16-year-old. This allows you to have a copy of a credit card with your name on it — though the adult will still be the account holder and be responsible for paying the bills.

Keep reading to learn more about how to get a credit card at 16, which will involve becoming an authorized user.

How Old Do You Have to Be to Get a Credit Card?

Generally, you must be 18 years old to get a credit card on your own. Even after turning 18, you usually must prove that you have independent income or get an older cosigner before the age of 21 in order to get a credit card, due to regulations that govern how credit cards work.

While getting a cosigner (usually a parent) can be doable, many teens may struggle to find a credit card issuer that is willing to accept a cosigner. More often than not, if a teen wants to gain access to a credit card, their best path forward is to become an authorized user on someone else’s credit card.

What Is an Authorized User?

An authorized user is someone who is added to a credit card account by the primary account holder. Becoming an authorized user on someone else’s credit card can make it possible for a 16-year old to have a credit card, as virtually all major credit card issuers accept authorized users who are 16.

If an adult — such as a parent — wants to, they can add a teenager as an authorized user to their credit card. The account holder can then request that the authorized user receive a copy of the credit card with their name on it. This credit card will share the same number as the card of the main account holder.

The teen can then make purchases with the credit card anywhere that accepts credit card payments, but they won’t be legally responsible for paying the bills. Because of this, it’s important that everyone works together to communicate and is aware of what’s being spent and who will pay it off. If the parent is going to put a big purchase on their credit card — such as paying taxes with a credit card — an authorized user’s added spending can drive up the credit utilization ratio.

Recommended: When Are Credit Card Payments Due

Becoming an Authorized User

Becoming an authorized user on a credit card can impact a teen’s credit score and build their credit history. That’s because when a teenager becomes an authorized user on a credit card, the credit card issuer will begin to report the account activity to the three major credit bureaus (TransUnion, Equifax, and Experian).

The primary account holder must contact their card issuer to add you. Then, here’s how being an authorized user can benefit you:

•   When the primary account holder makes on time payments and keeps their balance low in comparison to their credit card limit, the teen’s score should benefit. On the other hand, if the account holder is late on their payments, the teen’s credit score could suffer.

•   It’s important for both the account holder and authorized user to know how much they can afford to spend and how much they can manage to pay off each month. Ideally, you’ll be able to pay more than the credit card minimum payment to minimize the interest that accrues.

•   It’s also wise to double-check that the credit card issuer is reporting the behavior of the authorized user to the three main credit bureaus. Some credit card issuers, like Wells Fargo, accept authorized users who are under the age of 18 but don’t report their behavior to the credit bureaus until they come of legal age — which won’t help the teen build their credit history or credit score.

Credit Card Options for 16-Year-Olds

If becoming an authorized user isn’t a good fit, 16-year-olds have other options. Teens may find that a debit card or prepaid card can give them the convenience of using a card without actually having a credit card or borrowing any money.

•   Because debit cards are connected to bank accounts, a teen can use a debit card to make payments without physical cash on hand. However, they can’t spend more than they have in their bank account.

•   They also won’t have to worry about any potential impacts to their credit score when using a debit card.

Another option: prepaid cards, which can be purchased at grocery stores, gas stations, and pharmacies. These can be loaded with a set amount of money. The user can then spend as much as the prepaid card is worth.

Neither a debit card nor a prepaid card will help teens build their credit score, nor do they offer the protections a credit card does, like requesting a credit card chargeback if there’s an incorrect charge. However, these options can get teens used to the concept of not overspending when shopping with a card instead of cash.

Are There Advantages to Getting a Credit Card at 16?

There are some unique advantages that come with getting a credit card at the age of 16 by becoming an authorized user. In addition to the teen gaining a firm grasp on what a credit card is, these are the main benefits worth keeping in mind.

Building Credit Score

As we briefly mentioned earlier, using a credit card responsibly can help teens build their credit history and credit score. Building credit when you’re young can make it easier to qualify for better credit products as well as rates and terms down the road.

Learning Good Financial Habits Early

Another headstart that teens can get by using a credit card at age 16 is learning good financial habits. Using a credit card can help teenagers learn how to budget, pay bills on time, and spend less than they earn. They can also begin to learn about annual percentage rate, or APR, and understand why it’s so important to find a good APR for a credit card.

Access to Emergency Funds

As teenagers gain more and more independence, their parents won’t always be with them when they’re out and about. If an emergency were to arise, like running out of gas, a credit card can give a teen the ability to spend more than just the cash they have on hand.

Rewards for Card Holders

The fun part about credit cards is that it’s possible to earn rewards when you use them. Because the teen will be an authorized user on a credit card, the account holder will be the one to redeem any credit card rewards. Still, this serves as a good opportunity to teach a teenager the benefits of using credit responsibly when it comes time for them to apply for a credit card of their own.

If they want, the primary account holder can even share some of their cash back or other perks with the authorized user.

Convenience for Both Parents and Children

Parents may find that their teen having a credit card saves them a lot of fuss. Do they need money for a yearbook or to buy prom tickets? No worries, they can use their credit card as long as they have permission or know their spending limits. With their own credit card (and the help of a responsible adult when it comes time to pay the bill), teens can use a credit card to manage their college applications, pay for SAT prep classes, or pick up school supplies.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Common Pitfalls for 16-Year-Olds With a Credit Card

Of course, credit cards aren’t all fun and games. Here are some pitfalls that 16-year-olds should look out for when using a credit card.

Overspending

The biggest mistake any of us can make when it comes to credit cards is overspending and not being able to afford our bill. It’s important that parents or legal guardians have serious conversations with their teens about how credit works and what the consequences of overspending can be. This can include credit card interest, fees, and a bruised credit score.

Possibility of Credit Card Fraud

Credit cards come with fraud risks that teens who are used to paying in cash may not know what to look out for, such as credit card skimmers. While credit cards can be more secure than debit cards, it’s important to teach teens about how to use credit cards safely so their card isn’t lost or stolen and they don’t fall prey to identity theft.

The Takeaway

It is possible to get a credit card at 16 by becoming an authorized user on an adult’s credit card account. To get your own credit card, you’ll need to wait until you’re at least 18, and even then, you’ll need to prove you have independent income or get a cosigner. When it is time to get a credit card of your own, you’ll want to make sure you’re ready to manage it responsibly and that you take the time to select a credit card that fits your needs.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What is the minimum age to get a credit card?

You must be 18 years old to get your own credit card. Even then, you must prove that you have a steady source of income or else you’ll need to get a cosigner who is over the age of 21.

Can a 16 year old get a credit card with a cosigner?

No, you must be at least 18 years old to get a credit card — even if you have a cosigner. Those under the age of 18 can become an authorized user on an adult’s credit card account, but they can’t get a credit card of their own.

Can you use a credit card to build a good credit score?

When used responsibly, a credit card can help build a credit score. If a teen becomes an authorized user on a parent’s credit card, for instance, and that parent makes on-time payments and keeps their credit utilization low, they can build their credit score as well as the teen’s.

What payment card can you get at 16?

Before the age of 18, teens can get a debit card or a prepaid card on their own. Neither type of payment card will help build their credit score, but they are easier to obtain than a credit card. A teen can also become an authorized user and get a credit card of their own if approved by the main account holder, though this will not be their own credit card account.

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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.

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.

Photo credit: iStock/cyano66
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