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You may already know that credit cards offer an easy and convenient way to make purchases, but that’s just one of many potential credit card benefits. From rewards offerings like cash back, travel points, and one-time bonuses, to financial benefits like payment security, the opportunity to build credit, and a grace period, there are a number of reasons to keep a credit card in your wallet.

Read on to learn 10 advantages of using a credit card, as well as some tips to ensure you use your card responsibly.

Recommended: Tips for Using a Credit Card Responsibly

1. Cash Back

Many credit cards allow you to earn cash back on everyday purchases, such as gas or groceries, a reward introduced long ago in the history of credit cards. Essentially, with cash back, you get a small amount back in cash that’s a percentage of how much you spent.

With cash-back cards, you can usually put any cash you receive towards your credit card balance, or you can opt to receive the money through a direct deposit to your bank account, as a check or gift card, or put it towards other purchases.

2. One-Time Bonuses

Credit cards sometimes will offer a one-time, introductory bonus that allows you to earn enhanced rewards as long as you spend a certain amount on your card within the first months your account is open. For instance, you might be able to earn a bonus of 100,000 reward points if you spend $6,000 within the first six months of opening your card. These rewards can be a great way to get something extra out of opening a new credit card.

3. Reward Points

Reward points are similar to cash-back rewards in that they offer an incentive for you to use your card. You’ll earn points for every dollar you spend on your card, such as 1 cent for every dollar spent. You can then redeem those points to put towards travel, gift cards, merchandise, charitable donations, or statement credits.

4. Safety

Another one of the many perks of how credit cards work is the built-in security and safety features they offer. Many major credit card issuers offer a zero-liability policy for fraud, meaning you won’t be responsible if any fraudulent purchases are charged to your account. Other credit card safety features include encryption and chip-and-pin technology, which keeps your account information safe when using your card for in-store transactions. Plus, many credit cards offer fraud and credit monitoring services to allow you to easily keep tabs on your account.

Compared to debit cards, credit card security tends to be much more robust and the protections against fraud are more consumer-friendly.

Recommended: What is a Charge Card

5. Grace Period

This usually isn’t the first advantage of a credit card that comes to mind, but it’s a major one and a key part of what a credit card is. A credit card’s grace period between when your billing period ends and when your payment is due. During this grace period, no interest accrues. So if you are able to pay your balance in full during the grace period, you won’t owe any interest.

6. Insurance

Many credit cards come with insurance. For instance, travel credit cards might come with travel insurance, trip cancellation insurance, trip delay insurance, or rental car collision insurance. Cards may also offer price protection, extended warranties, purchase protection, or phone protection.

7. Universal Acceptance

Credit cards are pretty much accepted anywhere, and you can use one whether you’re paying a bill via snail mail or making a purchase in store, online, or over the phone. A credit card can be used to pay for most things, including paying taxes with a credit card.

Breaking it down by credit card network, Visa and Mastercard are accepted in over 200 countries, American Express cards are accepted in over 160 countries, and Discover cards are accepted in over 185 countries. This comes in handy when you’re traveling and don’t want to fret about converting your U.S. dollars into foreign currency.

If you’re running a business, accepting credit card payments can help prevent fraudulent activity, such as someone trying to pay with counterfeit bills. It can also make it easier to keep track of transactions and purchases related to your business.

Recommended: When Are Credit Card Payments Due

8. Building Credit

Another major perk of using a credit card is that it can help you build credit. Credit card issuers report your activity to the three main credit card bureaus — Transunion, Equifax, and Experian — which is then used to calculate your credit score.

If you maintain a continuous streak of on-time payments, it will help with your payment history, which makes up 35% of your credit score. Plus, the longer you keep a credit card open, the more it helps with your length of credit, which is 15% of your score. A credit card can also help you build credit because it helps with your credit mix, which makes up 10% of your score.

9. Increased Purchasing Power

Having a credit card can increase your purchasing power, as you’ll have access to a line of credit that can make it easier to buy big-ticket items. For instance, if you’re down to $1,000 in the bank, you won’t be able to purchase that $2,000 laptop. But if you have a credit line of $3,000 (and know you have a big paycheck en route), you can purchase that laptop you’ve been wanting when it’s on sale and then pay it off when the funds hit your bank account.

Take this credit card advantage with a grain of salt though — using your credit card to cover more than you can immediately afford to pay off can lead you to get into credit card debt.

10. Keeping Vendors Honest

Unscrupulous behavior from vendors does happen, unfortunately. If you pay a vendor through another means, such as cash, Venmo, or by writing a check, the vendor will have an easier time getting away with not providing the goods or services they promised.

But if you pay a vendor using a credit card, the credit card issuer has an incentive to get to the bottom of the issue and prevent fraud. And if you dispute a credit card charge, the issuer will withhold funds from the vendor. In turn, the transaction won’t go through, and you may be able to get your money back.

What to Look for in a Credit Card

Before applying for a credit card, do some comparison shopping first. Think about what kind of credit card you might need. Depending on your needs, preferences, and lifestyle, a travel credit card or cash-back card might be the best fit for you. Or, if you’re after a card with a low APR and minimal fees, a solid everyday card might be a better fit. If you’re working to rebuild your credit, you might consider a secured card.

Besides any credit card perks, look at the card’s interest rate. Your annual percentage rate (APR) will vary depending on your creditworthiness and the type of card you’re applying for (top rewards cards tend to have higher APRs than more basic cards). In general, however, a good APR for a credit card is one that’s below the current average credit card interest rate, which is 14.56% as of May 2022.

Additionally, it’s important to check whether a card has an annual fee. If it does, look at its perks and how much you anticipate putting on the card in a given year to see if that fee is worth it. Also take into consideration any other fees a credit card may charge, such as late payment fees, foreign transaction fees, and balance transfer fees.

Using a Credit Card Responsibly

To use a credit card responsibly, it’s crucial to make on-time payments of at least the minimum payment due each billing cycle. This ties in with not spending more than you can afford to pay back, or running up a high balance on multiple cards, both of which could lead you into credit card debt.

Another rule of thumb to use your credit card responsibly is to keep your credit utilization ratio — the total amount you owe divided by your total available credit — under 30%. The average credit card limit in the U.S. in 2020 was $30,365, according to data published by the credit bureau Experian. So, to maintain a 30% credit utilization ratio, you’d need to keep your balances below $9,109.50.

When Not to Use a Credit Card

If you’re spending more than you can afford to pay back, or can pay back within a reasonable amount of time, then it’s best to avoid using a credit card. The advantages of a credit card aren’t worth it if using credit cards is causing you to get into debt.

You’ll rack up interest charges on any remaining balances each month, and those costs can start to add up fast. While there are options like credit card debt forgiveness, they aren’t necessarily easy to get, and you can damage your credit score in the process.

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

Apply for a Sofi Credit Card Online and Earn 2% Cash Back

As you can see, there are a number of potential advantages of credit cards, from rewards to payment security to an interest-free grace period. Enjoying credit card benefits requires using your credit card responsibly though. If you’re racking up more charges than you can afford to pay back, the interest and other implications could quickly outweigh the credit card advantages.

If you are in the market for a new credit card, the SoFi credit card is worth considering given the perks it offers. SoFi cardholders earn 2% unlimited cash back when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back when redeemed for a statement credit.1

The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.¹

Take advantage of this offer by applying for a SoFi credit card today.

FAQ

How secure are credit cards?

Credit cards come with many security features, such as pin-and-chip technology, fraud and credit monitoring, and zero-liability fraud protection. Plus, there are usually features like two-factor authentication or biometrics at login, and you can temporarily freeze your credit card if you suspect fraudulent activity.

How can I protect myself from credit card fraud?

You can protect yourself from credit card fraud by reviewing your credit card statement each billing, storing your cards safely in your wallet or purse, keeping your passwords protected, and being vigilant when using your credit card. You can also set security alerts whenever there’s a transaction that’s over a certain dollar amount, or for in-person, online, or over-the-phone purchases. If you suspect fraudulent activity, block your card from further usage and report the suspicious activity immediately.

Do credit cards allow you to save more?

Credit cards usually enable you to spend more. However, if used smartly and responsibly, they can help you save through credit card rewards and other advantages, such as insurance and discounts. For a credit card to help you save, however, you’ll want to stay on top of payments and ideally pay your balance in full. Otherwise, the interest charges might outweigh any perks of credit cards.

Should I use a credit card if I have a poor credit score?

If you have a poor credit score, it could be a good idea to use a credit card to rebuild your score — as long as you can use it responsibly and manage on-time payments. Keep in mind that those with poor scores likely won’t get approved for the cards with the most competitive rewards, and they may face a higher APR and fees.

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Photo credit: iStock/Suphansa Subruayying

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

The SoFi Credit Card 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.

¹See Rewards Details at SoFi.com/card/rewards.

¹Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

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

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

Average Cost of College

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

According to the CollegeBoard’s 2021 Trends in College Pricing and Student Aid report, the average tuition and fees for a full-time, in-state undergraduate student attending a public four-year school in 2021-22 is $10,780. Out-of-state students can expect to pay an average of $27,560 in tuition and fees for the same academic year. And students attending a nonprofit four-year private institution are charged an average $38,070 in tuition and fees.

Institution Type	Average Annual Tuition and Fees
Public Four-Year College, In-State Student	$10,740
Public Four-Year College, Out-of-State Student	$27,560
Private Four-Year College, Nonprofit	$38,070

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

Ways to Pay for College

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

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

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

The best way to pay for college with no money — and really, the first step you should always take — is submitting a Free Application for Federal Student Aid, also known as the FAFSA.

The FAFSA is the first step in finding out if you qualify for a federal financial aid program. For example, you can see if you’re eligible for the Pell Grant, Federal Work-Study, and Direct Loans. The information on your FAFSA is also commonly used to determine your eligibility for state, school, and other privately sponsored aid.

Grants

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

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

Scholarships

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

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

Negotiate With the College for More Aid

If your financial circumstances have changed since you submitted your FAFSA, request a professional judgment to have your school reevaluate your financial aid package.
Not all schools accept this request, but if yours does, this process gives you a chance to provide additional documentation that’s used to recalculate your financial need.

Start With Community College and Transfer

If you want to go to college but have no money, one option is to attend a community college for the first two years of your college education. According to the same CollegeBoard report, the average 2020-21 cost for tuition and fees at a local two-year college is $3,800 for a full-time undergraduate student.

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

Choose a Less Expensive University

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

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

Live at Home

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

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

Study Abroad

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

Work-Study

The Federal Work-Study program allows you to earn financial aid with part-time work through an employer partner.

Federal Student Loans

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

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

Private Student Loans

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

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

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

Working Part-Time

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

Borrowing From Family Members

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

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

Is College Right for You?

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

Trade School

A trade school offers programs that teach students the hands-on skills for a technical or labor-based profession.

Vocational Training

Vocational schools provide students with the education to earn a certification or formal training quickly for service-oriented professions.

SoFi Private Student Loans

If you’ve decided that a traditional college education is for you, you might still need additional funds, despite exploring alternatives to afford college with no money. A SoFi private student loan can help by offering easy financing through a fast online process.

It provides competitive rates and flexible terms to suit your repayment needs. Plus, checking your rates can be done in just three minutes.

Interested in seeing how a private student loan from SoFi can help you pay for college? Learn more and find out if you pre-qualify in a few minutes.^*

FAQ

Is there any way to go to college entirely for free?

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

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

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

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

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

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^*Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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.

Photo credit: iStock/Passakorn Prothien
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PT school costs in the U.S. can range between around $10,000 and $30,000 per year, depending on whether you live in the same state as the program you attend.

And when it comes to how to pay for PT school, there are several funding options for prospective students — from grants and scholarships to federal financial aid, work study programs, private student loans and more.

Keep reading to find out how much PT school costs and how to pay for physical therapy school.

Cost of Physical Therapy School

The cost of physical therapy school can vary vastly depending on the program you attend, your location, among other factors.

With that said, the average tuition and fees for PT programs in the U.S are $9,629 for in-state residents and $29,730 for out-of-state students for the academic year 2021-2022.

7 Ways to Pay for PT School

Now that you have an idea of how much PT school might cost, your next priority is likely figuring out how to pay for PT school once you’ve been accepted.

Below are seven different options you can look into to help cover the costs of attending PT school.

1. Grants

Physical therapists are in high demand these days, and there’s been a corresponding increase in the number of grants available to students who are pursuing a career in PT.

Grant funding that helps students with PT school costs is sponsored by a variety of sources, from the federal government to public and private colleges and universities, professional organizations and corporations.

It’s wise to kick off your search for grant funding with federally-backed programs that target PT majors. If you’re enrolled in a PT program from an accredited college or university, you may be eligible for the following federal grants.

The Federal Pell Grant

The Federal Pell Grant is available to undergraduate students with demonstrated financial need. The amount of awarded funding maxes out at $6,895 for the 2022-23 school year. The amount awarded can change yearly and is based on the student’s level of financial need, attendance status (full time or part time), and the cost of the program itself.

The Federal Supplemental Educational Opportunity Grant

The Federal Supplemental Educational Opportunity Grant (FSEOG) is available to eligible undergraduate students who have already qualified for a Pell Grant, still demonstrate financial need, and are enrolled in a participating college or university.

To apply for an FSEOG, you can work with your college’s financial aid office and learn if you’re eligible to receive anywhere from $100 – $4,000.

U.S. Department of Health and Human Services Aid

The U.S Department of Health and Human Services offers a variety of financial aid opportunities that are designed to assist students entering into the healthcare profession. One example is the The HRSA Scholarship for Disadvantaged Students , which is a campus-based grant program that provides financial assistance to students from disadvantaged backgrounds. Eligible recipients must be pursuing a degree in an approved healthcare field (PT being one of them) and the college or university the student is attending determines the eligibility and award amount.

Colleges and Universities

There are several campus-based grants and payment programs available to PT students to help cover PT school costs. Once you’ve whittled down a list of preferred PT programs, you can search for these grants and scholarships on the schools’ websites or speak to someone in their financial aid departments to get started.

Private Organizations

Private and professional organizations can be solid sources for grants, scholarships and fellowships that help aspiring physical therapists with how to pay for PT school.

In many cases, the funding is extended on a regional basis, so searching for state or local organizations is a great way to seek financial aid that’s relevant to PT in your particular area.

Here are a couple of examples of private and professional organizations that offer financial aid opportunities to physical therapy students. The American Physical Therapy Association (APTA) sponsors several grants and scholarships for PT students, including the Outstanding PT Student and PTA Student Awards or Orthopedic Section Outstanding PT/PTA Student Award, among others.

The Foundation for Physical Therapy (FTP) administers research grants for graduate level PT students in a variety of rehabilitation techniques, including pediatric and geriatric physical therapy. In addition, the FTP offers $5,000 in award funds from their Florence P. Kendall Doctoral Scholarship for high performing PTs and PT assistants pursuing doctoral studies at an accredited college or university.

2. Scholarships

When considering how to pay for physical therapy school with a scholarship, consider searching scholarship databases for “physical therapy” scholarships. Websites such as CollegeScholarships, Scholarships 360 or Scholarships.com all offer comprehensive lists of scholarships available specifically to students studying physical therapy.

In addition to course of study, factor in other talents or qualities that may help you qualify for a scholarship, such as where you grew up, your ethnicity, or gender.

Review the scholarships available at your specific school as well.

Recommended: Find Financial Aid Options for All 50 States

3. Federal Student Loans

To help physical therapy students offset their PT school costs, federal student loans are another prime way to secure financial aid.

Federal financial aid for physical therapy students can come in the form of various federal student loans . They cover the cost of attendance, living expenses, fees and more to help you pay for your physical therapy education.

On top of that, federal student loans offer specific perks and protections such as:

•   Deferment

•   Forbearance

•   Student Loan Forgiveness options

•   A six-month grace period for new grads

Most federal student loans (aside from PLUS loans), don’t require a credit check, so borrowers won’t need to add a cosigner to the loan. Undergraduate students may also qualify for Direct Subsidized Loans, which are awarded based on financial need. Students are not responsible for paying the interest that accrues on subsidized loans while they are actively enrolled or during qualifying periods of deferment, such as the grace period.

4. Private Student Loans

Private student loans can be obtained from private lenders like banks, credit unions or other financial institutions and can help bridge the gap when federal student loans aren’t enough to pay for physical therapy school. That said, it may be tricky for physical therapy students to qualify for private student loans without a cosigner, especially if they have a lower credit score or no credit at all.

In some cases, aspiring PT students may need to ask someone to cosign for a private student loan to help them obtain a lower interest rate and more favorable loan terms.

While private student loan borrowers aren’t afforded the same perks and protections as they are with federal student loans, there are still benefits to using private student loans to pay for PT school.

Here’s a guide to private student loans that can help you learn more about the available options.

5. Part-Time Work

Whether it’s a side-hustle or a sanctioned work-study program, there are other ways to pay for PT school that don’t involve a loan, grant or scholarship.

On Campus

An on-campus work-study program is typically offered by the college or university where a student is attending PT school.

In the case of the Federal Work-Study Program , students are eligible for part-time employment while enrolled in PT school if their college is a participating member of the program and the student meets the program’s eligibility requirements. Checking with the school’s financial aid office is the best way to determine whether or not they offer a Federal Work-Study Program.

Off Campus

The Federal Work-Study Program also offers off-campus employment for a private nonprofit organization or a public agency, typically for work that’s performed in the public interest.

That said, finding your own job on or off campus (that’s not tied to federal aid) is also a possibility. Whether it’s a part-time job at a local cafe, waiting tables at a restaurant, or becoming a nanny for a nearby family — there are other options for figuring out how to pay for physical therapy school.

6. FAFSA

If you’re thinking about using federal student aid to pay for PT school, the first step is filling out the Free Application for Federal Student Aid (FAFSA®) .

The FAFSA is a free form that’s completed by current and prospective PT students to determine their eligibility for federal financial aid like some of the loans, scholarships and programs mentioned above.

Take a look at this FAFSA guide for more information about what the FAFSA is, which types of financial aid you may be eligible for, the criteria that can be expected in order to receive funds, and important dates to know.

7. PSLF

Public Student Loan Forgiveness (PSLF) is a federally-backed program that forgives the remaining balance on a borrower’s Direct Loans after:

•   They’ve made 120 qualifying monthly payments

•   Under a qualifying repayment plan

•   While working full-time for a qualifying employer

The requirements for receiving PSLF are strict, so if you are pursuing this option be sure to read all the program instructions and paperwork closely.

When deciding how to pay for PT school, this is one reason many prospective students turn first to federal financial aid.

It’s Student Loan Forgiveness programs like these that are among the many perks and protections of federal student loans that can’t be accessed through private student loans.

How Much Can Physical Therapists Make?

While PT school costs can seem a bit steep, the compensation for recent PT grads can potentially justify the price tag for today’s typical physical therapy program.

Data from PayScale, Inc. indicates that an entry-level physical therapist can expect to bring in $68,025 a year on average.

And, in 2020, physical therapists made a median salary of $91,010, with the best-paid 25% bringing in $106,060 and the lowest-paid 25% making $75,360.

The Takeaway

When it comes to how to pay for physical therapy school, there are several ways aspiring students can receive financial aid — including grants, scholarships, work study programs, federal student loans through FAFSA and private student loans.

If you’re looking for PT school funding that’s flexible and free from fees, SoFi’s private student loans may be a solution for you. You can easily check your rate online, find a payment plan that fits your budget, and even get exclusive benefits that can help you with your classwork — so you can focus on the PT program that works for you.

Find out more about SoFi’s private student loans.

FAQ

What is the average student debt for a physical therapist after graduating?

According to a 2020 survey from APTA, the average debt for physical therapists is $116,183.

How much can PTs expect to make after graduating?

An entry-level physical therapist can expect to make nearly $67,000 per year on average and the median salary among all physical therapists was around $91,000 in 2020.

Will the military pay for physical therapy school?

Each branch of the U.S. Armed Forces has different programs and requirements for receiving financial assistance for physical therapy school. Visiting their individual websites is the best way to determine eligibility.

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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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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.

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There are many different types of college financial aid available to college-bound students, with student loans being an option that many students consider. According to StudentAid.gov, 43.4 million students have outstanding federal student loans.

Students who need additional financial aid can choose between federal student loans or private student loans. However, there are many benefits of federal student loans that private loans don’t always guarantee.

Main Benefits of Federal Student Loans

1. No Credit History Is Required

A significant advantage of federal student loans is that many government-owned student loans don’t require a credit history or credit check. The only federal student loan that requires a credit check to determine eligibility is a Direct PLUS Loan.

To see if you’re eligible for federal student loans, you’ll need to submit a completed Free Application for Federal Student Aid (FAFSA®).

Recommended: How Credit History can Impact Student Loans

2. No Cosigner Required

Private student loan lenders might require a cosigner for student borrowers who don’t have a credit history or credit score. However, students who haven’t established their credit are still eligible to apply for a federal loan without a cosigner.

Having no cosigner requirement is an additional step to lending that federal student loan borrowers can avoid.

3. Fixed Interest Rates

Fixed interest rates are among the notable benefits of student loans owned by the Department of Education.

Generally, private student loans allow borrowers to choose between fixed or variable interest rates. A fixed rate doesn’t increase or decrease throughout the loan term, making monthly payment amounts easier to anticipate.

Variable student loan rates can be advantageous during a low-rate environment, but borrowers risk their interest rate changing at any point during the repayment term. This variable feature can make it more challenging to predict how much money to budget toward monthly payments during repayment.

4. Low Interest Rates

A higher interest rate increases how much you’ll pay toward your college education overall. Generally, federal student loan rates are lower than private student loans or when using high-interest credit cards to pay for college expenses.

5. Interest Doesn’t Accrue During College

Federal Direct Subsidized Loans are designed so that borrowers aren’t responsible for paying back interest that accrues while in school.

Interest that accrues on loans from this federal program is paid by the government while the student is enrolled at an eligible school at least half-time. When you leave school, any interest that accrues on Direct Subsidized Loans is the borrower’s responsibility to repay. Students who borrow Direct Unsubsidized or PLUS Loans are responsible for repaying interest that accrues while they are in school. Subsidized federal loans are only available to undergraduates.

6. Forbearance and Deferment Options

Some private loan lenders offer forbearance and deferment options to borrowers who need to temporarily pause their student debt repayment. However, these options vary between lenders while some might not offer forbearance and deferment at all.

An advantage of federal student loans is that they offer extensive forbearance and deferment options for different situations. For example, eligible borrowers can request deferment while undergoing cancer treatment, during economic hardship, while enrolled in school, during unemployment, and more.

Federal student loans offer general or mandatory forbearance, depending on your situation. Borrowers who are eligible for forbearance can request it if they need to pause or reduce their monthly payment for a short period.

7. Repayment Grace Period

Another benefit of federal student loans is that they come with an automatic six-month grace period. The grace period kicks in when the student graduates, leaves school or drops below half-time enrollment.

This time frame gives federal loan borrowers additional time to get their financial situation ready, like securing an income or a job, in preparation for repayment.

8. Income-Driven Repayment Options

Borrowers who are unable to afford their monthly student loan payment may be able to enroll in an income-driven repayment plan.

Eligible federal student loan borrowers can choose among one of four income-driven repayment plans: Income-Based Repayment, Income-Contingent Repayment, Pay As You Earn Repayment, or Revised Pay As You Earn programs.

These repayment plans offer 20- or 25-year terms. Payment amounts are limited to 10% to 15% of a borrower’s discretionary income. Depending on a borrower’s situation, their payments might be as low as $0 per month.

9. Student Loans Can Be Discharged

Borrowers of federal student loans might not be required to repay their federal loans in certain circumstances. A federal loan discharge might apply when:

•   The school closes while the borrower is enrolled.

•   A borrower experiences total and permanent disability.

•   The borrower dies.

•   The borrower of a Perkins Loan works as a teacher or other eligible professional.

•   The borrower’s school affected the loan or the borrower’s education in some way.

•   A school falsely certifies the borrower’s loan eligibility.

•   The borrower who has withdrawn from school doesn’t receive a refund of the student loan funds from their servicer.

10. Student Loan Forgiveness

Access to student loan forgiveness is another advantage of federal student loans. Unlike student loan discharge which requires borrowers to have experienced an extraneous situation to qualify, student loan forgiveness is more accessible to borrowers.

The Department of Education offers loan forgiveness through Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and loan forgiveness under an income-driven repayment plan.

For example, PSLF requires participants with Direct Loans to make 120 qualifying monthly payments under an income-driven repayment plan. Borrowers must be working at a qualifying employer, full-time. Qualifying employers include nonprofit organizations or government entities during the time the required payments were made.

After the required payments are made, their remaining Direct Loan balance can be forgiven. Note that the forgiven balance may be considered taxable income by the IRS under certain situations.

Alternatives to Student Loans

Although federal loans offer borrowers many benefits, there are limits that mean not all students are able to finance their education entirely with student loans. Student loans are one type of financial aid, there are other financial aid alternatives for students who are looking for options pay for their education.

Grants

Grants can be need- or merit-based. They’re provided through the federal or state government, by the student’s school, or third-party organizations. Pell Grants and Teacher Education Assistance for College and Higher Education (TEACH) Grants are a couple types of federal grants.

Unlike student loans, recipients aren’t generally required to pay back grants for college.

Scholarships

Scholarships, like grants, aren’t repaid by the student after leaving school. Scholarships can be found through schools, private and nonprofit organizations, community groups, employers, and professional associations.

This aid option might be available based on students’ merit or need.

Private Student Loans

Federal student loans offer many benefits, but as briefly mentioned, there are annual and aggregate borrowing limits. For students who either don’t qualify for federal loans or have reached the maximum limit, applying for private student loans is another option.

Private student loans are available from state organizations, banks, credit unions, and online lenders. Borrowers must have qualifying credit, and loan features and terms of private student loans vary by lender. Again, it’s important to note that private student loans are not required to offer the same borrower benefits as federal student loans.

Applying for Private Student Loans

Federal student loans offer a variety of borrower benefits, including no credit score requirements, competitive, fixed-interest rates, and deferment and forbearance options for borrowers who face financial difficulty during repayment. However, students may need to rely on a variety of different finding sources to pay for college.

If you’re looking for a private student loan, consider a no fee SoFi private student loan. It offers competitive rates and up to four repayment terms so you have access to flexible repayment options. Checking your rate is easy and takes as little as three minutes online.

Learn more about SoFi’s private student loans. Check your private student loan rates.^*

FAQ

What is the average student loan debt amount?

In 2021, the CollegeBoard reported that college graduates who pursued a four-year degree at a public institution borrowed an average of $26,700 in student loans.

Are student loans bad for your credit score?

Borrowers’ student loan payment status is reported to credit bureaus. Student loans can be advantageous toward building a credit history when payments are made on-time and in full.

However, making late payments or missing payments can adversely affect a borrower’s credit score.

What are the key advantages of federal over private student loans?

There are numerous benefits of student loans from the federal government, compared to private student loans. The main advantage being that federal loans offer multiple repayment options, including income-driven plans that can bring monthly payments as low as $0, and most federal student loans do not have a credit score or credit history requirement.

Additionally, federal borrowers receive automatic deferment during school, and an automatic grace period after leaving school.

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^*Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

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

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 nursing program can lead to a rewarding career, but as the cost of higher education grows, paying for nursing school might just cause your blood pressure to rise.

Financial aid, including nursing student loans, can help fill the gap between money on hand and education costs, but it’s good to think about your future pay compared with the debt you’re willing to take on.

What Are Nursing School Loans?

Nursing school student loans are a type of financial aid available to eligible college students who are enrolled in a program for licensed practical or vocational nurses, registered nurses, nurse practitioners, or nurse anesthetists.

Depending on the loan program, federal student loans for nursing degrees can either be need-based or not. Another option to fill in gaps in need: private student loans.

Unlike grants and scholarships, nursing school loans must be repaid, though special programs like the Nurse Corps Loan Repayment Program and National Health Service Corps Loan Repayment Program offer loan forgiveness.

Most loan programs, federal and private, have a grace period during school and after graduation before repayment must begin.

Types of Loans Available for Nursing School Students

The Department of Education provides options for federal nursing student loans under the William D. Ford Federal Direct Loan Program.

Eligible borrowers can also explore private student loans for additional funding, if needed.

If you do borrow, you’ll be in good company. Take a guess at how many people have student loans. The answer is about 45 million Americans; the vast majority have federal student loans.

And the cost of nursing school? It varies by institution and length of study. Getting a Bachelor of Science in Nursing generally costs the same as most bachelor’s degrees.

Direct Subsidized Loans

A Federal Direct Subsidized Loan is available to undergraduate students who are enrolled at least half-time at a participating school. Students are required to demonstrate financial need to qualify.

If a nursing student qualifies for a Direct Subsidized Loan, the school determines how much they can receive for that academic year. The government pays the interest that accrues on the loan while the student is enrolled at least half-time, during a six-month grace period after leaving school, and during any deferment granted for economic hardship, cancer treatment, or a few other reasons.

In comparing subsidized vs. unsubsidized loans, the first type favors borrowers more, thanks to how accrued interest is paid.

Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are available to undergraduate and graduate students. These loans are not based on financial need, but schools still decide how much students can borrow toward an academic year.

The key difference with this nursing loan option is that students are responsible for interest charges as soon as the loan funds are disbursed.

Direct PLUS Loans

Another federal option for nursing student loans is the Direct PLUS Loan. Grad PLUS Loans are available to graduate students who are pursuing an advanced degree like a Master of Science in Nursing.

Parents of an undergraduate student can help fund their child’s education through a parent PLUS Loan; undergrads don’t have direct access to this loan option.

Direct PLUS Loans are non-need based and require a credit check. Borrowers are responsible for all interest that accrues. They can receive up to the school’s cost of attendance minus any other financial aid received.

Private Student Loans

Nursing students who need funding beyond federal student loans can consider private student loans. Private student loans are offered by private financial institutions like banks, credit unions, and online lenders.

Each lender has its own eligibility requirements, interest rates, and loan terms. If you’re eligible for a private student loan, your interest rate and loan details will depend on various factors, including your credit score. Most lenders welcome your bringing a solid cosigner aboard.

Pros and Cons of Loans for Nursing School

The average student loan debt among all health care professionals can be eye-opening, yet healers usually feel the need to heed the call, no matter the cost.

Nursing student loans can be a fast way to finance your college education. However, before jumping in, weigh the benefits of student loans against their disadvantages.

Pros	Cons
Quick financing for college costs	Will make years of payments after leaving school
Some student loans let you borrow up to the cost of attendance	Can cause borrowers to postpone other life goals during repayment
Can make paying for higher education possible for those who are ineligible for other types of financial aid	You may need a cosigner to qualify
Repaying student loans on time can help build your credit history	Defaulting on student loans can harm your credit and result in additional financial hardship

Applying for Nursing Student Loans

The process to apply for nursing student loans depends on the loan option chosen.

Comparing Loans

If you’re thinking about taking out student loans, you might want to compare federal student loans you might be offered in your aid package, as well as private student loans.

Prioritizing federal student loans before private student loans can be a good idea, since federal loans offer advantages like income-driven repayment plans and Public Service Loan Forgiveness, which forgives any remaining federal student loan balance after certain borrowers make 120 qualifying payments.

If private nursing student loans are still needed to pay for college, check offers across multiple private lenders. Comparing a handful of private student loan offers can help you find competitive rates and terms.

Applying for Loans

Federal nursing student loans and private student loans have distinct application processes. You must submit a Free Application for Federal Student Aid (FAFSA®) before the academic year to see if you’re eligible for federal aid.

Private student loans don’t require the FAFSA. Instead, private nursing student loan applications can be submitted online, in person, or by mail, depending on the lender. They require the would-be borrower, or a cosigner, to meet credit and income requirements.

After Applying

It’s a good idea to start the process early when seeking federal student loans for your nursing education. The time between submitting the FAFSA and disbursement of the loan funds to your school can be months.

The turnaround time after applying to receive private student loan funds can be notably shorter. Getting pre-qualified for a loan can take just minutes.

In general, if you’re approved for a private nursing student loan, you can expect to wait up to 10 weeks after your loan is approved to receive the funds.

Alternative Financing Options for Nursing Students

Securing nursing school student loans is only one of many ways to finance your higher education.

Personal Loans

Personal loans are a general-purpose loan option that can be used toward nursing school. A credit check is required.

Repayment begins as soon as funds are disbursed. Check your rate and decide if a personal loan makes sense. One good thing is, you may get your loan funds the day your loan is approved.

Grants

Grants are provided through the federal government, state, your school, nonprofit entities, and private organizations. Since grant funding doesn’t need to be paid back, this aid alternative lets nursing students leave school with less student debt.

Employer Sponsorship

If you plan on working while you’re enrolled in nursing school, you can ask if your company has a sponsorship program. Generally in this situation, your employer will send funds directly to your school.

Private Student Loans From SoFi

If federal student loans for nursing school don’t quite go the distance, consider a private student loan from SoFi.

There are no loan fees. Choose a fixed or variable rate, and add a cosigner if needed.

It’s fast and easy to check your rate.

FAQ

How do nursing students get loans?

Nursing students can see if they’re eligible for federal student loans by submitting the FAFSA. Private nursing student loans are also available through various private lenders.

Can nursing school loans be forgiven?

Nursing professionals might be eligible for loan forgiveness through federal programs like Public Service Loan Forgiveness and the Nurse Corps Loan Repayment Program.

What is the average student loan amount for a nurse?

The median student loan debt among nurses ranges from $40,000 to $55,000, according to the most recent report by the American Association of Colleges of Nursing. Those who pursue a Master of Science in Nursing are often left with more than $47,000 in student loan debt, according to NurseJournal.

For perspective, in terms of educational investment and earnings, registered nurses earned a median annual wage of $77,600 in 2021, according to the Bureau of Labor Statistics. RNs usually have earned an associate’s or bachelor’s degree in nursing or a diploma from an approved nursing program.

Licensed practical and licensed vocational nurses, who complete a state-approved educational program that typically takes about one year, had median pay of $48,070 per year.

Nurse anesthetists, nurse midwives, and nurse practitioners, who must earn at least a master’s degree, had median pay of $123,780 per year.

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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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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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