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If you’re a parent hoping to send your child to college someday, you’re probably well aware that higher education costs have skyrocketed over the past 10-plus years.

Tuition and fees for the 2024-25 academic year averaged $11,610 at public colleges for in-state residents, $30,780 at public colleges for out-of-state residents, and a whopping $43,350 at private colleges. And the price tag for an undergraduate degree typically goes up every year. Any way you look at it, college is a huge expense for families.

The good news, however, is there are a number of ways to make college more affordable for parents, everything from tax-advantaged college savings accounts to merit- and need-based scholarships to federal student loans.

Smart Ways to Pay for College

What follows are four key strategies that can help you cover the cost of a child’s college education — without going broke.

1. Starting Early With a Savings Plan

There are a variety of accounts to help parents save for child’s college tuition. While you can simply put money aside each month (or year) in a regular savings account, there are advantages to using a savings vehicle that is specifically designed for college savings. Here are two to consider.

529 Savings Plans

A 529 savings plan is a tax-advantaged investment account designed to help save for future education expenses. Your contributions to the account are made with post-tax dollars but, as long as the money stays in the account, no income taxes will be due on earnings. When you take money out to pay for qualified education expenses, those withdrawals may be federal income tax-free — and, in many cases, free of state tax, too.

While 529 plans used to be limited to higher education, the funds can now be used for kindergarten through grade 12, as well as certified apprenticeship programs and qualified student loan repayments.

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

Coverdell Education Savings Account

Like a 529, a Coverdell Education Savings Account (ESA) is a tax-advantaged account designed to help save for a child’s future education expenses. Contributions are made on an after-tax basis, but earnings aren’t taxed. When you withdraw the money and use it for qualified education expenses, the investment profits are tax-free.

However, Coverdell accounts come with income and contribution caps. Contributions are capped at $2,000 per year, and you can only make them until your child turns 18. To open and contribute to a Coverdell ESA, your income must be below a certain limit ($110,000 for single filers; $220,000 for married couples).

Coverdell ESA funds must be withdrawn when the beneficiary turns 30, or rolled over to another eligible beneficiary in the family.

2. Looking for Ways to Get Free Money

When figuring out how to pay for college, there are numerous resources available, including scholarships, grants, and other forms of financial aid. These sources of “free money” can provide significant assistance to students based on academic merit, extracurricular achievements, or financial need.

Your Free Application for Federal Student Aid (FAFSA®) will automatically match you with any federal scholarships and grants you’re eligible for, but there are other types available.

You can look for additional funding options on your own using a search engine like SoFi’s Scholarship Search Tool. You can also research various scholarships offered by corporations, foundations, and non-profit organizations related to your child’s interests and intended field of study.

In addition, your child also can check out the high school guidance department for any information, and you may want to make an appointment with a school counselor to get any tips that might help your search.

If your child has a college selected, funding information is usually available on that school’s website, as well.

Recommended: How Do You Find Non-Academic Scholarships for College?

3. Considering an After-School Job

Encouraging your child to work part-time during high school or college can contribute to funding their education and teach valuable life skills. A part-time job provides them with their own income, reducing their dependence on student loans and parental contributions.

Many colleges offer work-study programs where students can work on campus or in community service roles while earning money for their education expenses. In addition, summer jobs or internships can be an excellent way for students to save for college during their break.

4. Researching Student Loan Options

With the high cost of getting a degree these days, you may not be able to avoid taking on at least some student loan debt. You and your child may want to take some time to research and understand all the student loan options out there — both federal and private — and how they work well-ahead of senior year.

Federal Student Loans

The amount a student can borrow in federal loans will depend on their year in college, status as dependent or independent, and the type of loan or loans they take out.

Parents of dependent undergraduate students can apply for Direct PLUS Loans to help pay for education expenses that aren’t covered by other federal financial aid.

Federal student loans usually have more benefits than loans from banks or other private lenders, so be sure to compare the benefits of each private student loan program, as well as the interest rates and terms.

For example, federal loans offer deferment and forbearance along with programs like Public Service Loan Forgiveness (PSLF) and income-driven repayment plans. Private lenders don’t usually offer such perks and protections. It’s generally recommended that students exhaust all federal loan options prior to borrowing private student loans.

Private Student Loans

Private student loans are loans offered by private lenders — such as banks, credit unions, and online financial institutions — to help students pay for educational expenses not covered by federal aid. These loans typically require a credit check and may need a cosigner, especially for students without established credit.

There are, of course, pros and cons to both of those options, so it’s important to do your due diligence on the private lenders you may be considering. What benefits do they offer? What are their rates and terms? Is there any fine print?

If your child doesn’t qualify for enough federal student aid to cover the cost of attending college, private student loans may be a viable option to look into to close the gap.

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

The Takeaway

There’s no one-size-fits-all way to pay for college. Students and their families may end up using a blend of savings, scholarships, grants, work-study, and different types of student loans to finance their education.

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

FAQ

What are 529 savings plans and how can they help with college expenses?

A 529 savings plan is a tax-advantaged investment account designed to help save for future education expenses. Contributions are made with after-tax dollars, but earnings grow tax-free, and withdrawals for qualified education expenses are also tax-free. Funds can be used for K–12 tuition, certified apprenticeship programs, and student loan repayments.

What types of financial aid are considered “free money” for college?

Scholarships and grants are forms of financial aid that don’t need to be repaid. They can be awarded based on academic merit, extracurricular achievements, or financial need. Completing the Free Application for Federal Student Aid (FAFSA) is essential to access federal scholarships and grants.

When might private student loans be a suitable option for covering college costs?

Private student loans can help fill funding gaps after exhausting federal aid options. They are offered by banks, credit unions, and online lenders, and terms vary based on creditworthiness. It’s important to compare interest rates, repayment terms, and borrower protections before choosing a private loan.

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

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

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

SOISL-Q225-048

Paying for college is one of the biggest expenses a parent plans for, and it can seem overwhelming. At times, you might find yourself saving up for your kid’s future education while also trying to save for your own retirement, fund a house down payment, and pay off your own debt.

With the average cost of college tuition and fees for the 2024-25 school year at $11,610 for public in-state students, $30,780 for public out-of-state students, and $43,350 for private school students, it’s no wonder parents are taking out loans to help pay for their child’s undergraduate education.

Parents can rely on both Parent PLUS Loans and private student loans to help pay for college. Keep reading to learn the differences between the two and how to determine which type of loan may be best for you.

What Are the Different Loans for College?

There are four types of federal Loans offered by the U.S. Department of Education:

•   Direct Subsidized Loans are loans offered directly to the student, where the interest on the loan is paid by the U.S. Department of Education while the student is in school and during a six-month grace period after graduation. Thus, they are subsidized.

•   Direct Unsubsidized Loans are also offered directly to the student, but the interest is not paid by the federal government and it accrues while the student is in school.

•   Direct PLUS Loans are loans for professional or graduate students, or for parents of undergraduate students.

•   Direct Consolidation Loans allow you to consolidate all federal loans into one loan with an interest rate that’s a weighted average of all your federal loans’ interest rates, rounded up to the nearest eighth of a percent.

The main difference between student loans offered to undergraduates and Direct PLUS Loans offered to parents is that certain Direct Loans (Direct Subsidized Loans) for undergraduates are awarded based on financial need, whereas PLUS Loans are not awarded based on financial need, but do require a credit check when applying.

In addition to federal loans, there are also private student loans available both for students and parents. Private student loans are loans from banks or private lenders, which set their own interest rates and terms.


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

What Can These Loans Be Used For?

When a student’s financial aid package and other sources of funding aren’t enough to cover the cost of college and other educational expenses, Parent PLUS Loans and private student loans can help fill in the gaps. They can be used to cover expenses like tuition, room and board, books, and other supplies related to the total cost of attendance.

While they can both be used to cover the same expenses, they each have different benefits and terms, so it’s worth considering your options as you determine how to pay for your child’s college education.

Parent PLUS Loans vs Private Student Loans Compared

Beyond the major difference that Parent PLUS Loans are federal student loans and private student loans are borrowed from individual lenders, there are other similarities and differences to consider.

Similarities

Here’s an overview of the major similarities between these two types of loans.

Primary Borrower

Both Parent PLUS Loans and private student loans can be borrowed by parents of undergraduate students to help them pay for their education. On both a Parent PLUS Loan and a private student loan borrowed by a parent, the parent will be considered the primary borrower on the loan.

Interest Accrual

While the application processes for these loans will be different, both loan types will accrue interest. The interest rates for Parent PLUS Loans are set annually by congress. Interest rates on private student loans are set by the lender based on factors including the applicant’s credit score, income, and financial history, among other factors.

Loan Disbursement

Regardless of loan type, most student loans are disbursed directly to the school where they pay for the cost of tuition and room and board. Any leftover money from Parent PLUS Loans is given to the parent, not the student.

Differences

Here’s an overview of the major differences between Parent PLUS Loans and private student loans.

Application Process

One of the major differences between these loans is the application process. Because Parent PLUS Loans are a type of federal student loan, students must first fill out the FAFSA®. Then, parents are able to apply for a Parent PLUS Loan through the Federal Student Aid website.

Private student loans are administered by private lenders. To apply for a private student loan, parents will need to review the application requirements at their chosen lender.

Recommended: FAFSA Guide

Interest Rate

While both PLUS Loans and private student loans will require a credit check during the application process, it will not impact the interest rate available for PLUS Loans. Applicants with a strong credit history could potentially qualify for a more competitive interest rate with a private student loan than with a Parent PLUS Loan, which, as mentioned, has an interest rate that is set annually by Congress.

Repayment Plans

Parent PLUS Loans are eligible for federal repayment plans. The repayment plan for a private student loan will be set by the lender.

Pros and Cons of Parent PLUS Loans

Parent PLUS Loans can help parents finance their child’s college education when other aid options fall short. However, it’s important to weigh the advantages and disadvantages before committing to this type of federal loan.

Pros of a Parent PLUS Loan

From high borrowing limits to flexible repayment options, these federal loans provide key advantages for parents who qualify. Pros of Parent PLUS Loans include:

•   High borrowing limit: Parents can borrow up to the full cost of attendance (minus other financial aid), making it easier to cover tuition, housing, and other college expenses.

•   Fixed interest rate: These loans come with a fixed interest rate set by the federal government, providing predictable monthly payments.

•   Flexible repayment options: Repayment plans, including Income-Contingent Repayment (ICR) when consolidated, can help make monthly payments more manageable.

•   Deferment while student is in school: Parents can defer loan payments while their child is enrolled at least half-time, easing financial pressure.

•   Federal loan protections: Parent PLUS Loans are eligible for certain federal protections, like deferment, forbearance, and potential loan forgiveness under specific programs.

Cons of a Parent PLUS Loan

While Parent PLUS Loans can help families bridge the financial gap in paying for college, they also come with several drawbacks that are important to consider. Cons of Parent PLUS Loans include:

•  Credit check required: Unlike most federal student loans, Parent PLUS Loans require a credit check, which may limit eligibility for some borrowers.

•  Higher interest rates and fees: These loans typically have higher interest rates and origination fees compared to other federal student loans.

•  Parents are solely responsible: The parent, not the student, is legally responsible for repaying the loan, which could impact the parent’s long-term financial goals.

•  Limited income-driven repayment options: Parent PLUS Loans don’t qualify for most income-driven repayment plans unless they are consolidated into a Direct Consolidation Loan.

•  No subsidized interest: Interest accrues from the time the loan is disbursed, even if payments are deferred while the student is in school.

Pros and Cons of Private Student Loans

Private student loans can be a helpful resource when federal aid and other funding sources fall short. However, it’s important to weigh both the benefits and drawbacks before deciding if a private loan is the right choice for your college financing needs.

Pros of Private Student Loans

Here are some potential benefits of private student loans to consider:

•  Higher borrowing limits: Private lenders may allow you to borrow up to the full cost of attendance, helping to bridge large funding gaps.

•  Competitive interest rates: Borrowers with strong credit — or a creditworthy cosigner — may qualify for lower interest rates than those offered by federal loans.

•  Flexible loan terms: Private lenders often provide a range of repayment terms, allowing you to choose a plan that fits your financial goals.

•  Fast approval process: Many private student loans offer quick application and approval timelines, which can be helpful for meeting urgent tuition deadlines.

•  Choice of fixed or variable rates: Borrowers can typically choose between fixed rates for stability or variable rates for potential savings if interest rates drop.

Cons of Private Student Loans

While private student loans can help fill funding gaps, they also come with potential drawbacks that are important to understand before borrowing. These include:

•  No federal protections: Private loans do not offer income-driven repayment plans, federal forbearance, or loan forgiveness programs.

•  Credit and cosigner requirements: Approval often depends on the borrower’s or cosigner’s credit history, which can be a barrier for some students.

•  Variable interest rates: Some loans come with variable interest rates that can increase over time, making payments less predictable.

•  Limited repayment flexibility: Repayment terms are set by the lender and may not offer as much flexibility if financial circumstances change.

•  Interest accrual during school: Unlike subsidized federal loans, interest on private student loans often begins accruing as soon as the funds are disbursed.

The chart below illustrates some more general comparisons between Parent PLUS Loans and private parent student loans:

The Takeaway

Choosing between Parent PLUS Loans and private parent student loans depends on your financial situation and priorities. Parent PLUS Loans, as federal loans, offer fixed interest rates and access to federal repayment plans, including options for deferment and forbearance. However, they come with origination fees and may have higher interest rates compared to some private loans.

On the other hand, private parent student loans, offered by private lenders, may provide lower interest rates for borrowers with strong credit profiles and often have no origination fees. Nevertheless, they lack the flexible repayment options and protections associated with federal loans.

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

FAQ

Can Parent PLUS Loans be forgiven?

Parent PLUS Loans can be forgiven through certain federal programs, such as Public Service Loan Forgiveness (PSLF), but only after the loans are consolidated into a Direct Consolidation Loan. Eligibility requires meeting specific criteria, including working for a qualifying employer and making 120 qualifying payments under an eligible repayment plan.

Can a student pay off a Parent PLUS Loan?

Yes, a student can help pay off a Parent PLUS Loan, even though the parent is legally responsible for repayment. Families can arrange informal agreements where the student makes payments directly to the loan servicer or reimburses the parent, but the loan remains in the parent’s name and credit history.

Is a Parent PLUS Loan considered a federal student loan?

Yes, a Parent PLUS Loan is considered a federal student loan. It is offered through the U.S. Department of Education to help parents pay for their child’s college education. Unlike federal student loans for students, Parent PLUS Loans require a credit check and are solely the responsibility of the parent borrower.

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

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

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

SOISL-Q225-049

If you’re like many people today, one of your main modes of shopping is online. It’s quick, it’s convenient, and it’s sometimes even one-click easy. But, like purchasing in any other manner, you’ll want to make sure you are getting the best deals online. Why pay more than you have to?

Read on to learn some clever hacks that will help you get the best possible deals when shopping online.

Ways to Find Deals Online

1. Finding the Right Coupon Codes

Coupon codes are lurking all over the internet to help people find the best deals at their favorite retailers. For example, many online retailers will give customers a little discount for a newsletter signup or for their first purchase. In certain cases, a simple Google search can yield great results for coupon hunters.

An easier way to dig up coupons to online retailers may be to search on coupon websites like RetailMeNot or Coupons.com.

Digital shoppers also can try downloading browser extensions like Honey, which automatically searches the internet for the best discount codes and applies them at checkout.

Recommended: 7 Budgeting Methods to Try

2. Earning Cash Back for Purchases

Similar to coupon codes, some services offer rebates for purchases made. For example, in addition to providing coupon codes, RetailMeNot lists cash-back offers for various retailers daily on its website. Rakuten is a popular cash-back (and coupon) service, as well. Consumers that have its browser extension enabled can activate cash back and coupon offers automatically when shopping at participating retailer sites, or they can choose retailers with rebate offers through the Rakuten website or app.

If you’re not interested in doing any legwork to get a good deal while shopping online, there is another option: Use a credit card that gives you cash back. You may even be able to bundle and increase the credit card reward if you shop online at specific retailers at certain periods of time.

3. Using Free Shipping or In-Store Pickup

Online shopping tips don’t stop at coupons. Another way to save is to find free shipping options. If you don’t need an item ASAP, free shipping is often an option at checkout.

Many online retailers also offer free shipping with a minimum order amount. To find free shipping deals and codes, check out websites like FreeShipping.com, though there may be a fee involved, so you’ll need to ensure benefits outstrip any costs.

Another option may be to order an item online and then pick it up at the store for free. If it’s close enough to grab in person, it may be worth it to avoid shipping costs altogether.

4. Giving a Price Watcher a Go

Consumers who aren’t in a rush to purchase an item may be able to take advantage of price tracking tools. Price tracking tools help shoppers stay informed about price drops and sales so they can click “buy” at just the right time. These might even be able to help you be more patient if you are an impulsive shopper. Knowing that a better price may be in the offing could help you slow down.

Apps like Honey have tools like Droplist that allow consumers to save items for later and be informed when an item on the list has a price drop.

Other apps like CamelCamelCamel track prices on Amazon, and PriceBlink will find deals at multiple retailers across the Web, too. It works by showing how much an item costs at several online stores so shoppers can pick the best one.

5. Trying Online Price Matching

Many larger retailers participate in price matching programs, which means if you find a price at one retailer you may be able to get it at another. Target, for example, will match prices for qualifying, identical items found at Amazon or Walmart.

This used to mean bringing in a printed coupon or proof that the product was on sale for a lower price at a different retailer, but now, it can often be done online or by phone. All a shopper needs to do is reach out to customer service, which may be able to help out.

6. Checking Reviews

To get the best deal when shopping online, you’ll want to be sure you are getting the best product. And one way to do that is to check online reviews. Customers all over the internet leave reviews on products they’ve purchased, alerting others to potential issues or potential great buys.

On websites like Amazon, search for “verified purchase” to know that the review is legit. While online reviews should be taken with a grain of salt, they are one more tool to add to your decision-making arsenal for online shopping.

Before purchasing a product, is it really something you want or need, or will bring joy? If so, check reviews to make sure it’s the perfect fit before clicking “buy.”

💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.

7. Waiting for Bigger Sales

Throughout the year, larger retailers will likely host online shopping sales. These sales are known to occur around the holidays, specifically on Black Friday, the day after Thanksgiving, and Cyber Monday, the following Monday, a day that’s packed with online deals.

Other major sales usually occur around holidays like Presidents’ Day, Memorial Day, and Labor Day, as well as midsummer. During this time, you may be able to score major discounts, so if you can wait for a purchase, try to hold off until then. Knowing that deep discounts are coming could help you avoid shopping out of boredom. It gives you an incentive to wait.

One more “holiday” to keep an eye out for is Amazon Prime Day. During the sale, retailers across the website offer steep discounts on products.

However, to get in on the deal, you must be an Amazon Prime member, which comes with a subscription. But Amazon Prime members get free shipping on most products, which can add up in the long run.

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

8. Following Favorite Brands on Social Media

One more way to potentially find the best deals online is to follow brands and retailers on social media. Brands love to give their loyal customers something special, so they may share insider discounts and offers on their social media pages and newsletters before anywhere else.

Give your favorite brands a follow on Twitter, Instagram, or Facebook to stay aware of when sales may be happening, and maybe get inspired about new things to buy along the way, too. Just be sure when you are purchasing that you are on the verified account of the brand. There are some scams out there that you’ll want to avoid.

The Takeaway

Shopping online is already, as you undoubtedly know, quick and easy. But there are ways to make it even more affordable, by tracking prices, using coupon sites, and knowing when to purchase to get the lowest possible price. By deploying these and other hacks, you can get the goods you want at the most budget-friendly price.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What are some key strategies for finding the best deals when shopping online?

To find the best deals online, try searching for retailers’ coupon and promo codes on Google or coupon platforms. Some services, such as Honey and Rakuten, offer browser extensions that apply discounts and cash-back offers at checkout. You can utilize price tracking tools to monitor price drops, and also consider following favorite brands on social media for exclusive discounts.

What are effective ways to find and use coupon codes for online discounts?

Look for coupon codes on retailer websites, dedicated coupon sites, or through a simple Google search. Browser extensions provided by some services can also automatically find and apply coupon codes as well as cash-back offers at checkout. Following brands on social media might also provide access to special discounts.

How can timing my online purchases help me get better deals?

Timing your purchases around major sales events may increase savings significantly. Retailers often offer substantial discounts during holidays like Black Friday (the day after Thanksgiving) and Cyber Monday. Other key sales periods include Presidents’ Day, Memorial Day, Labor Day, and Amazon Prime Day.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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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SOBNK-Q225-008

College students often use a combination of funding including grants, scholarships, student loans, and savings to pay for their college education. Scholarships and grants are helpful because they typically don’t have to be repaid. In many cases, though, students rely on borrowed funds to help pay for some college costs.

Student borrowers have two major options available to them — private and federal student loans. While both types can be used by students to help pay for college, there are big differences in how a student will apply for them.

Continue reading for more details on the differences between private and federal student loans and their application process.

Federal Student Loans vs Private Student Loans

Federal student loans are provided by the federal government. Private student loans are issued by institutions such as banks, some schools, and other private lenders. In order to make an educated borrowing decision, it’s important to understand the major differences between federal vs private student loans. These differences include:

Repayment Terms

Federal student loans have a standardized set of repayment options. Borrowers can choose any of the federal plans and can adjust their repayment plan at any time without incurring any costs by contacting their loan servicer.

These repayments include income-driven repayment options, which aim to make repaying student loans more affordable by linking monthly payments to your income.

The repayment terms on private student loans are set by the lender at the time the loan is borrowed. Some lenders may offer flexible repayment terms, but they are not required to do so. Thoroughly review the loan terms before borrowing.

Interest Rates

All federal student loans have fixed interest rates, which are determined annually by Congress.

Private student loans may have either fixed or variable interest rates. With variable rates, the starting rate depends on factors such as your credit score, income, and employment history, and it can change as the economy fluctuates. Lenders determine the interest rate on a loan based on reviewing borrower information such as income, credit history, and score, among other factors.

In-School Deferment Options

Your choice between federal and private student loans may also determine when you start paying back your loans.

If you have a federal student loan, you generally aren’t required to start making payments until you graduate, leave college altogether, or reduce your course load below half-time. Many federal loans offer a six-month grace period after you leave school or cut back to below half-time, meaning you don’t have to make student loan payments during this time.

Certain private lenders allow you to wait to make payments on your private student loans just as you would with federal loans, but others require you to start paying them while you’re still in school full-time. This varies depending on the lender, so it’s important to check the specifics before taking out a loan.

Recommended: Using In-School Deferment as a Student

Which Type of Student Loan Should You Apply for First?

Federal student loans tend to be more flexible in regards to repayment options and loan forgiveness, and sometimes offer lower interest rates than private student loans. Because private loans are awarded based on borrower criteria, including credit history, undergraduate students with limited credit history may need to add a cosigner to strengthen their chances of being approved for a private student loan.

Generally speaking, federal loans are prioritized over private student loans. But, in situations where borrowers have exhausted their federal borrowing options, private student loans can help fill financing gaps.

Application Process of Federal and Private Student Loans

Navigating the application process for student loans is an important step in financing your college education. Whether you’re considering federal or private student loans, understanding how each process works can help you make informed decisions and avoid unnecessary delays.

But first, we’re looking at student loan deadlines for both federal and private loans.

How Does the Application Process Differ Between Federal and Private Student Loans?

We’ll dive into an overview of how to apply for student loans, broken down by federal and private loans. But you should know that there are two main differences in the processes: where to apply and when to apply.

Federal Student Loan Deadlines

For federal student loans, you’ll fill out the Free Application for Federal Student Aid, better known as the FAFSA®. You will need to fill out the FAFSA each year you are in school.

When it comes to timing, there are important FAFSA deadlines set by the state and sometimes your individual college. Some states offer aid on a first-come, first-served basis, so procrastinating may not be in your best interest. Jumping on the FAFSA early could make a difference in how much aid you receive.

Private Student Loan Deadlines

To apply for a private student loan, you’ll fill out an application directly with an individual lender. While private student loans are known for being more stringent with their terms and requirements, they can actually be more flexible when it comes to application timing. There’s no universal private student loan deadline. That’s one reason you may prefer to apply for federal student loans before private ones — to see how much federal financial aid you receive first, then, if needed, you can fill in the gaps with private loans.

Recommended: When to Apply for Student Loans: Student Loan Deadlines

Applying for Federal Student Loans

To apply for federal student loans, the first step is to fill out the FAFSA.

Filling out the FAFSA

You can fill out the FAFSA online at the Student Aid website. You can list up to 10 colleges on your FAFSA form. If you want to list more than 10, you just have to follow a couple of extra steps.

The FAFSA form will ask for personal and financial information about the student and their parents (if the student is a dependent). These questions cover your age, marital status, level of degree you’re acquiring, military status, and your own dependents.

You’ll provide the necessary financial information. This includes your federal income tax returns and tax documents (and/or your parents’ returns and documents, if you’re considered a dependent). The website includes an IRS Data Retrieval Tool, and once you enter the relevant information, it should be able to pull up you and/or your parent’s tax return(s).

Just a heads up — you won’t submit the most recent tax return. For example, if you’re applying for aid for the 2024-25 school year, you’ll attach your 2022 tax returns.

Last but not least, you and/or your parents will provide bank statements. These statements should be current at the time you fill out the application, not from the year of the tax documents you submitted.

Recommended: SoFi’s FAFSA Guide

Completing FAFSA Follow-up Steps

After receiving your Student Aid Report, you may want to double-check with the schools you listed on the FAFSA® to make sure they received your information and to ask if they need you to fill out any more documents. Some schools require different documents, so it may be beneficial to contact each one.

Once a school has processed your information, you’ll receive an award letter from the institution that officially reports how much aid you’ll be receiving. Colleges differ in how long they wait to send out award letters, so if you’re feeling antsy, you can call to inquire about their reward deadline.

Now for a huge follow-up step: applying for private student loans if scholarships, grants, and federal loans don’t cover everything.

Types of Federal Student Loans

There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans for graduate and professional students, and Direct PLUS Loans for parents.

Direct Subsidized vs Unsubsidized Loans

Direct Subsidized Loans are available for undergraduate students. These loans are for students in financial need, and you don’t have to pay the interest until six months after you’ve graduated, left school, or dropped below half-time enrollment. These six months are referred to as the “grace period.” Interest will still accrue while you’re in school, but the government covers interest while you’re enrolled and during the grace period.

Direct Unsubsidized Loans for graduate and undergraduate students, but they aren’t disbursed based on your financial situation. The government doesn’t cover the cost of interest while you’re in school, so interest will accumulate throughout your time in college.

Direct PLUS Loans

The third type of federal student loan is a Direct PLUS Loan for graduate or professional students. The student takes out the loan, which is unsubsidized.

The fourth type is the Direct PLUS Loan for parents. This loan is for the parents of undergraduate students, so the parents would apply for and are held responsible for paying back the loan. Parent PLUS Loans are also unsubsidized.

Direct PLUS Loans require a credit check, unlike Direct Subsidized and Unsubsidized Loans.

Applying for Private Student Loans

As mentioned above, you can typically apply for private student loans directly on the lenders’ websites. If you’re having trouble deciding where to apply for private loans, but have already narrowed down your top schools, you can contact those institutions. Some colleges have “preferred lender” lists.

However, you aren’t necessarily bound by those lender lists. You may still want to research private student loans to find the right interest rates, interest rate types (fixed or variable), payment schedules, and included fees for your specific needs. Remember, private student loans tend to vary in their terms, so a little research can’t hurt.

Lender Requirements

Make sure you meet the requirements to receive a private student loan. For example, will you be enrolled in school at least half-time?

You should also make sure you’re attending a school that’s eligible for private student loans. If you’re attending a community college or trade school, you may or may not be able to receive a private loan.

Keep in mind that private student loan lenders tend to check things like your credit, income, and job history when you apply. This step will affect everyone differently, but if you’re fresh out of high school, this step could throw you for a loop. What if you’ve never had a job? What if you didn’t even know credit scores were a thing before this moment?

Considering a Cosigner

One thing that may help in this predicament is finding a student loan cosigner. Your options for a cosigner are fairly flexible, but many borrowers choose someone they trust, such as a parent, close relative, or trusted friend.

A cosigner agrees to take equal responsibility for the loan. If the student borrower cannot make payments, the cosigner is legally obligated to repay the debt, which can help the student qualify for better loan terms.

Still, it may be possible to get a private loan without a cosigner if you have low credit and/or income. Just be prepared to possibly pay more in interest!

Other Ways to Finance Your Education

While federal and private student loans are tools for receiving money to pay for college, there are other options. These include scholarships, grants, and Federal Work-Study.

Scholarships and Grants

Scholarships are gift aid, which means they don’t usually need to be repaid, and are typically merit-based. You can search for scholarships based on skill, such as academic, athletic, or music scholarships.

There are also scholarships available for people of certain demographics, such as ones for minorities or for women. You could even find scholarships for people of a certain religion/denomination or for those who’ve engaged in community service.

Grants are gift aid awarded based on your financial need. Some grants are provided by the government (state or federal), while others may be offered by your school or a private company.

Recommended: SoFi’s Scholarships Search Tool

Work-Study Program

The Federal Work-Study Program awards students with financial need the option to work part-time jobs to help pay for college. If you are interested in participating in the work-study program, you can indicate your interest when you fill out the FAFSA.

If you do not qualify for work-study, you may consider getting a part-time job.

The Takeaway

To apply for a federal student loan and other forms of federal financial aid, students will fill out the FAFSA annually. Students interested in private student loans will fill out applications directly with private lenders.

Other ways to pay for college include cash savings, scholarships, grants, and Federal Work-Study.

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

FAQ

What is the first step in applying for federal student loans?

The initial step is completing the Free Application for Federal Student Aid (FAFSA), which determines eligibility for federal student loans and other financial aid.

How does the application process differ between federal and private student loans?

Federal student loans require completing the FAFSA annually, with specific deadlines set by the federal government, states, and individual colleges. Private student loans are applied for directly through individual lenders and typically have more flexible application timelines.

When should I apply for private student loans?

While private student loans don’t have strict deadlines, it’s advisable to apply after determining your federal aid eligibility and once you’ve decided on a school. Applying early ensures funds are available when tuition payments are due.

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.

SOISL-Q225-040

If you’re living paycheck to paycheck or just wish there were more wiggle room in your finances, you may want to consider some money-wise tips like budgeting, negotiating your bills, and lowering your debt.

Making your dollars go further may also involve finding ways to help grow the money you do have in the bank (and there may soon be more of that). You’ll learn a dozen smart and simple tactics here.

Simple Ways to Stretch Your Money Further

Read on for money-stretching strategies that can help you make ends meet, plus have a little bit of extra.

1. Tracking Your Money

If you want to do more with your money, it helps to first figure out what you are currently doing with your money.

You may have a good sense of your fixed monthly expenses (such as rent/mortgage, car payments, groceries, student loans), but smaller everyday expenses have a tendency to slip through the cracks — yet, nevertheless, add up, slowly depleting your checking account.

A good exercise is to track how much you’re actually spending each day (that includes every cash/debit/credit purchase you make, plus every bill you pay) for a month or so. You can do this by carrying around a notebook or saving all of your receipts and putting them into a spreadsheet on your computer. There are also a number of apps that can make the process of tracking your daily spending easy.

This can be an eye-opening exercise. Spending is so frictionless these days, many of us really don’t have a handle on how much money we are actually spending. Seeing it all in black and white can help you think twice before buying something nonessential, and help you start becoming much more intentional with every dollar.

2. Setting up a Budget

Once you’ve done the work of tracking your monthly expenses, you may next want to compare this to how much money (after taxes) is coming in each month. If you find you are consistently spending more than you are bringing in, you may want to set up a budget to help you get these two numbers better aligned.

Creating a budget isn’t hard. The process simply requires grouping all of your spending into categories, seeing where you may be able to cut back, and then setting up some monthly spending parameters.

There are a number of tools and apps that can help you create — and stick with — a household budget, but even just keeping a ledger or a basic spreadsheet can help you gain more control over where money is going each month.

While the idea of living on a budget may sound like a drag, the truth is that planning how you want to spend your money can often lead to having more money to spend on the things you want. Plus, there are many types of budgets, and one of them probably suits your personal and financial style well.

A budget can also help guide your money toward short- and long-term financial goals like an emergency fund, a down payment for a house, and retirement savings.

3. Paying Bills on Time

Knowing when your bills are due and paying them on schedule could save you money in a few different ways.

First, it can help you to avoid paying interest and late-payment fees.

Second, it can help you maintain good credit. A good credit score is important because it can help you qualify for the best interest rates on credit cards and loans. And the less money you have to pay in interest, the faster you’ll be able to pay off debts – and the more money you’ll have to spend on other things.

4. Negotiating a Better Deal

Some of those recurring bills (like cable, internet, your cellphone, car insurance) may not be set in stone. It might take some research — and a little nerve — but you may be able to negotiate for a lower rate from some of your service providers, especially if you’re dealing with a company that’s in a competitive market.

Before you call or email a business or provider, it can help to know exactly how much you’re paying for a service, what you’re getting for your money, and how much the competition is charging for the same or similar service.

It’s also a good idea to make sure you are communicating with someone who actually has the power to lower your rate and, if not, ask to speak with someone who does. It may also be helpful to let a provider know that if they can’t do better, you may decide to switch to another company (and you might).

You can also try to talk your way to a better deal with other expenses, such as negotiating medical bills.

5. Ditching Expensive Debt

Another way to help make your money go further is to spend less on interest payments on debt.

If you can pay down that debt, you could use the money you’re now throwing away on interest to pay other bills, build an emergency fund, invest for the future, or save for a vacation or some other goal.

Reducing debt is easier said than done, of course — but choosing the right debt reduction strategy may help.

•   Since credit card debt typically costs the most in interest, you might consider chipping away at these debts first or, if possible, wiping them out completely. You could then move on to the debt with the next-highest interest rate, and so on.

•   Another approach to reducing debt is to pay the minimum toward all your accounts, and then pay any extra you can toward the debt with the smallest balance. When that debt is paid off, you can move on to the next smallest balance, and so on.

•   If you can qualify for a lower interest rate, another option might be to take out a personal loan that consolidates all those high-interest debts into one more manageable payment.

Getting rid of that damaging debt can have long-range consequences as well.

If you can lower your credit utilization ratio, which shows the amount of available credit you have, you could build your credit. And that, in turn, could make it easier to qualify for lower-interest loans and credit cards in the future.

6. Balking at Bank Fees

Unless you’re vigilant about checking your statements, you might not even notice the fees your bank may be charging every month for your checking and savings accounts.

They might include service fees, maintenance fees, ATM fees (if you don’t use in-network machines), minimum balance fees, overdraft or non-sufficient funds fees, and/or transaction fees. And all those little nips can take a toll over time and could even leave you with a negative bank balance.

If you see that your bank is hitting you with one or more monthly fees, you may want to consider shopping around for a less expensive bank, which might involve switching banks to an online-only financial institution. Because online financial institutions typically don’t have the same overhead costs banks with physical branches do, they generally offer low or no fees

7. Pressing Pause on Impulse Purchases

If impulse purchases are your downfall, consider trying a temporary spending freeze, during which you avoid buying anything that isn’t a must. Or, if that seems too drastic, you might pick a single category (shoes, wine, concerts) or a specific store to stay away from for a certain period of time.

Or maybe pick a single category (shoes, wine, concerts) or a specific store to stay away from for a certain period of time.

To help keep you motivated, you might track the money you didn’t spend during your freeze and then put it to use paying down debt, starting an emergency fund, or saving for a down payment on a home or other short-term financial goal.

Once you start seeing the benefits of saying no to impulse purchases, you may find yourself spending less even after the freeze is over.

8. Making Lists

Another way you may be able to make your money stretch is to create a list any time you’re going to shop, keep it in your pocket or on your phone, and then stick with it in the store.

And lists aren’t just for grocery shopping. You could make one before you hit the pharmacy, the mall, the local coffee shop, the sporting goods store, or just about anywhere you might wander off course.

Keeping a list close at hand can help avoid having to go back to the store because you forgot something (keeping store visits to a minimum), and you might be less tempted by items that aren’t on your list.

9. Clicking “Unsubscribe”

If your favorite retailers tend to bombard you with emails alerting you to their latest and greatest sale, you may want to think about getting off their e-mailing lists. Sales and great deals are happening all the time, and generally the best time to purchase something is when you really need it.

Even if you don’t find that needed item at its lowest-ever sale price, you will likely end up spending less than buying more things simply because they are on sale.

If the bait to buy doesn’t constantly land in your inbox, you’ll be less likely to take it (and won’t even know what you are missing out on). This move could quickly translate into more cash or one less bill at the end of the month.

10. Maximizing the Money You Save

Another way to stretch your dollars is to consider how you might get a higher return on any money that is sitting in the bank earning little to no interest. Higher-yield savings options you might consider include an online savings account, certificate of deposit (CD), or a money market account.

For a longer-term payoff (and potentially higher rate of return), you might also consider putting more money into your 401(k) or other retirement fund, as well as starting or adding to a non-retirement brokerage account.

11. Keeping the Change

Loose change may seem fairly worthless, but over time it actually can add up, and might help you help you pay a bill or buy a nice dinner.

Instead of letting coins live indefinitely in the bottom of your bag or the cup holder in your car, consider setting up one money jar in your home to collect it all. Then, every month or so, you might sort and roll the coins to take to the bank. (You can also use a coin-counting machine, available in some stores, but keep in mind that some deduct a fee, or percentage of your change.)

Then, every month or so, you might sort and roll the coins to take to the bank. (You can also use a coin-counting machine, available in some stores, but keep in mind that some deduct a fee, or percentage of your change.)

If you rarely use cash anymore, you may still be able to make good use of virtual change. Many mobile apps (perhaps the one your bank provides) and credit/debit card accounts offer users the opportunity to automatically round up purchases to the nearest dollar and have that money transferred into a savings account.

So, for example, if you bought a doughnut for $1.25, the purchase would be rounded up to $2, and the extra 75 cents would be sent to your account to go toward a savings goal.

12. Using Windfalls Wisely

It can be incredibly tempting to use a tax refund or a work bonus to buy something fabulous. And there’s nothing wrong with an occasional splurge.

But you may also want to consider using that money to pay down a high-interest credit card, make an extra payment on a loan, or start (or add to) a high-yield savings vehicle or other investment.

Any of these moves can help you stretch those dollars, either by cutting the amount of interest you’ll owe over time or adding to the interest you’ll earn.

The Takeaway

With a few smart savings strategies, you might be surprised at how much further you can stretch your money each month. Getting started is simply a matter of tracking your spending so you can then find ways to save.

Some money-stretching moves might include negotiating with (or switching) service providers, putting a bit more money towards debt reduction, knocking down (or eliminating) monthly bank fees, reducing the temptation to make impulse purchases, and finding ways to make your savings grow faster.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How can I stretch my income?

To stretch your income, create a detailed budget and look for ways to cut back on non-essential spending (such as dining out and subscriptions). You can also make your paycheck go further by shopping smarter (e.g., using coupons, buying in bulk, and choosing generic brands), negotiating with (or switching) service providers, paying off high-interest debt, and avoiding new debt. Regularly review and adjust your budget to maximize savings. Also consider increasing your income through side gigs or freelance work.

What is the 50/30/20 rule of money?

The 50/30/20 rule is a budgeting guideline that suggests dividing your take-home income into three categories: 50% for needs (like rent and groceries), 30% for wants (like dining out and hobbies), and 20% for savings and debt repayment beyond the minimum. This helps ensure you cover essentials, enjoy life, and build financial security. It’s a flexible and simple way to manage your money effectively.

What does it mean to stretch your money?

Stretching your money means making your income go further by managing it wisely. This involves budgeting, reducing unnecessary expenses, and finding cost-effective alternatives. It’s about prioritizing essential needs, avoiding debt, and saving for the future. Stretching your money ensures you can cover your bills, afford necessities, and still have some left for unexpected expenses or goals.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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