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As your child enters the “getting into college” phase of their lives, there’s a lot to talk about, from whether it’s better to take the SAT or ACT to how many schools they should apply to. At the same time, it’s important to discuss how your family is going to pay for college and, if debt will be part of the equation, how student loans work.

For one reason, the topic is pretty complicated. For another, even if you plan to help repay any student loans, most qualified education loans are taken out in the student’s name, which means they are personally on the hook for repayment. Maybe your student-athlete or scholar is counting on a full ride. While confidence is a wonderful thing, full rides are exceedingly rare.

Here are six student loan concepts you can discuss with your aspiring college student.

1. Here’s What We Think We Can Contribute

It might be uncomfortable to talk frankly about your family finances, but they almost always determine the amount and types of financial aid your child may qualify for.

It can be important for parents to discuss what they’re able to contribute in order to help their young adults wrap their heads around the numbers, too. How much debt they may need to take on to pay for college could impact where they choose to apply to school, since tuition costs vary widely.


💡 Quick Tip: When shopping for a private student loan lender, look for benefits that help lower your monthly payment.

2. Let’s Forge Ahead With the FAFSA

The first step to hunt for financial aid is to complete the Free Application for Federal Student Aid (FAFSA). While this form has a reputation for being long and complex, a new streamlined FAFSA is being released for the 2024-25 academic year. The new form is scheduled to become available by Dec. 31, 2023 — a delay from the typical Oct. 1 release date.

Based on financial need, a college’s cost of attendance, and FAFSA information, schools put together a financial aid package that may be composed of scholarships and grants, federal student loans, and/or work-study.

Awards based on merit (scholarships) or need (grants) are considered “free money” for college. When they don’t cover the full cost of college, that’s where student loans can come in.

If your income is high, should you bother with the FAFSA? Sure, because there’s no income cutoff for federal student aid. And even if your student is not eligible for federal aid, most colleges and states use FAFSA information to award non-federal aid.

3. Interest Rates: Fixed or Variable

Your soon-to-be college student may not know that there are two types of interest rates for student loans: fixed and variable.

Fixed interest rates stay the same for the life of the loan. Variable rates go up or down based on market fluctuations.

You can explain that all federal student loans have fixed interest rates, which are set each year by the federal government, and that private student loan interest rates may be variable or fixed.

4. Federal vs Private Student Loans

Around now your young person is restless. But press on.

Anyone taking out student loans should learn that there are two main types: federal and private. All federal student loans are funded by the federal government. Private student loans are funded by banks, credit unions, and online lenders.

If your child is going to borrow money for college, it’s generally advised to start with federal student loans. Since federal student loans are issued by the government, they have benefits, including low fixed interest rates, forbearance and deferment eligibility, and income-based repayment options.

Private student loans have terms and conditions set by private lenders, and don’t offer the generous repayment options or loan forgiveness programs of federal loans, but some private lenders do offer specific deferment options.

Private student loans can be used to fill gaps in need, up to the cost of attendance, which includes tuition, books and supplies, room and board, transportation, and personal expenses. A student applicant often will need a cosigner.

5. Another Wrinkle: Subsidized vs Unsubsidized

Financial need will determine whether your undergraduate is eligible for federal Direct Subsidized Loans. Your child’s school determines the amount you can borrow, which can’t exceed your need.

The government pays the interest on Direct Subsidized Loans while your child is in college, during the grace period (the first six months after graduation or when dropping below half-time enrollment), and in deferment (postponing repayment).

With federal Direct Unsubsidized Loans, interest begins accruing when the funds are disbursed and continues during grace periods, and the borrower is responsible for paying it. Direct Unsubsidized Loans are available to both undergraduate and graduate students, and there is no requirement of financial need.

Borrowers are not required to pay the interest while in school, during grace periods, or during deferment (although they can choose to), but any accrued interest will be added to the principal balance when repayment begins.

There are annual and aggregate limits for subsidized and unsubsidized loans. Most dependent freshmen, for example, can borrow no more than $5,500, and no more than $3,500 of this amount may be in subsidized loans.


💡 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.

6. Soothing Words: Scholarships and Grants

It’s important to not overlook the non-loan elements of the financial aid package. They can (hooray) reduce the amount your student needs to borrow.

Scholarships and grants are essentially free money, since you are not required to pay the money back. While some schools automatically consider your student for scholarships based on merit or other qualifications, many scholarships and grants require applications.

You may want to assign a research project to your college-bound young adult to look into all of the scholarship options they may qualify for. There are numerous scholarship finders available online. They may also want to talk to their guidance counselor and the financial aid office of their chosen school to learn about opportunities.

The Takeaway

Debt isn’t the most thrilling parent-child topic, but college students who will need to borrow should know the ins and outs of student loans: interest rates, federal vs. private, subsidized vs. unsubsidized, and repayment options.

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

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

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SoFi 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.

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

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Whether you’re attending college for the first time or returning to finish your degree, you may have the opportunity to choose online vs. in-person classes. Though online college has been a niche offering in higher education for over a decade, it’s become more popular and commonplace in recent years. This is in part due to the COVID-19 pandemic, when many institutions were forced to shut down and adapt to distance learning. Though campuses have since opened back up, many students are opting to continue their studies online.

Online school offers benefits like flexibility and convenience. On the other hand, online learning can make it difficult for students to connect with their peers. It can also make it harder to grasp concepts that require more hands-on learning. What follows is a closer look at the pros and cons of online school.

What is Online School?

Online school is a format of education where classes are conducted virtually. Some colleges are designed specifically for online learning. Other colleges and universities may offer both in-person and remote learning options for students. Depending on the program, classes may be offered synchronously, where students attend via an online forum at a specific time; asynchronously, where lectures are recorded and can be viewed at a student’s leisure; or a hybrid model of the two.

While detractors of online learning say that it can be a pale imitation of in-person learning, there are several key advantages, including convenience and cost.


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

Pros of Online School

When schools pivoted to online learning due to the COVID-19 pandemic, the experience was generally set up ad-hoc and created to ride out the crisis. But many online programs have been constructed with online learning at the front of mind. This means that they may be thoughtfully designed in a way that supports distance learning.

When considering online schools, you’ll want to make sure that the program is accredited by an organization recognized by either the U.S. Department of Education or the Council for Higher Education Accredited. This can help students avoid any online scams.

Part of analyzing whether online school will be successful for you is knowing yourself. The pandemic allowed a lot of people to obtain deep insight into whether working remotely — either at work or school — was productive or even enjoyable. It has also given some people confidence that, even if in-person is preferred, online is doable and may not be as challenging as they may have thought in the past. That said, if you think online school might be right for you, here are some other factors to consider.

Cost May Be Lower

No buildings and no in-person instruction means less expensive tuition, right? Not necessarily. While some institutions that specifically invest in online learning may be less expensive, you may find that online tuition is commensurate whether or not you go in person, depending on the program.

If cost is the primary factor in pursuing online education, it may be a good idea to look at universities and degree programs that specialize in online learning, as they may create pricing based on an online-first business model.

Recommended: How to Pay For Online College

More Convenient

A huge benefit to online school is that many programs are structured knowing that students may also be juggling career and family responsibilities. This can translate into asynchronous learning — lesson modules that can be done on your own time — rather than a mandatory lecture you need to attend at a set time and place.

Still, the time commitment required to attend online school can be challenging when you’re going to school and working at the same time. Even if you don’t need to be in class at a certain time, there will still be due dates, studying, and exams to contend with.

Self-Directed Course of Study

On a similar note, many fans of online courses like that the course can be more self-directed, allowing you to take control of your education on your own timeline. This may mean you need to be more proactive about scheduling office hours with professors, blocking out time to study, and making sure that assignments are turned in on time.

Cons of Online School

While some people thrive in an online environment, others may prefer to have in-person interaction. Here’s a look at some of the disadvantages of online school.

Limited Hands-On Experience

Some degree programs that have a lab component may be harder to mimic online. Some degrees accept virtual labs, while other degrees may require a “wet lab” (a.k.a. a hands-on lab). You’ll want to check what your degree needs, and confirm that all coursework can be done entirely online. It can also be helpful to speak with current students in the program to hear any of their frustrations.

Lack of Community

Some people find it hard to connect with classmates and may find group projects or virtual small groups to be much less engaging than they might otherwise have been if they had been in person.

Harder to Connect with Professors

Some professors maximize online interaction, while some may be harder to pin down and connect with. Heading to office hours, even if they are virtual, can help you build a connection and get to know the professor.

Limited Access to On-Campus Resources

If the online school you’re attending also has a brick-and-mortar campus, there may be resources for career development as well as on-campus events related to your department. It may be worth assessing how virtual students can tap into these resources and what resources are accessible to them.

Longer Timeframe

The flip side of a more convenient schedule means that courses may be more spread out. What could be a one- or two-year program in a full-time setting could potentially take several years if done virtually.

Recommended: Can You Get Student Loans for Community College?

Additional Considerations for Online School

Being able to pursue higher education remotely can open up possibilities for many individuals. But it can be a good idea to consider how online school will mesh with your life. Here are some tips that can help you find your best fit.

Talk with Other Students

It can be helpful to speak with current students who are in a similar position as you. Talking with a student who is also juggling family or a career can help you see how the process plays out in real life.

Sit in on a Lecture

Will the program allow you to virtually sit in on the lecture or see some course materials? Doing so can help you see how the program plays out in real life.

Take an Online Course

In some cases, online school can be an expensive undertaking. Prior to applying to an official degree program, consider taking a virtual course, either for fun or for credit hours. Taking a virtual course without the pressure of a degree can help you take stock of the pros and cons for yourself, and assess whether or not online learning is right for you.

Consider How You’ll Cover the Cost

If you are planning to do a degree program alongside working, you may want to speak with your employer. It may be possible that they can subsidize the cost of the degree if it is relevant to your career.

If your employer won’t cover the cost, you may want to consider the potential salary advancement you might get out of the program, which could offset your out-of-pocket expenses. It’s also a good idea to fill out the Free Application for Federal Student Aid (FAFSA®) to find out what financial aid (including scholarships, grants, and federal student loans) you may qualify for.

You may then be able to fill in gaps in funding using private student loans. These are available through banks, credit unions, and online lenders. Loan limits vary from lender to lender, but you can often get up to the total cost of attendance, which gives you more borrowing power than with the federal government. Interest rates vary depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Just keep in mind that private loans may not offer the borrower protections — like deferment or forbearance — that automatically come with federal student loans.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

Going to school — whether it’s online or in-person — is a major decision. It’s important to consider pros and cons, including cost, as you assess whether it’s right for you. Speaking with people who’ve done the degree or work in your chosen career field can help you assess whether or not the program could help you achieve your goals and aspirations.

Taking the time to do the research, and potentially dipping your toe into online learning with one or two courses, can help you decide how online school may fit into your life and future plans.

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

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

Photo credit: iStock/insta_photos

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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.

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Think that internships are just for students? Think again. College grads can also snag internships. An internship can be a good way to gain work experience when a full-time job is hard to find. It can also provide a good opportunity to test-drive a field you are interested in but not sure is right for you.

Getting an internship after graduation can help you gain exposure to the work world, add to your resume, and build professional experience.

Here, you’ll learn more about internships for recent graduates, what a postgraduate internship is like, and how to find one.

Benefits of a Postgraduate Internship

Can you get an internship after college? Yes, indeed. There are a lot of reasons why college graduates might consider doing a postgrad internship. Aiming to go right into a full-time job after graduating may be the right choice for some people, but there are some benefits to completing an internship first.

•   Doing a postgraduate internship can allow graduates to explore their career options before making a long-term commitment.

Not every student is going to have an exact goal in mind for what job they’d like to have after graduating, and most degrees will give students more than one option to consider. Starting an internship after graduation can give you the ability to test out a variety of jobs and also allow you to live in different locations and see what suits you.

•   Another benefit to applying for internships instead of full-time jobs is that it may limit some of the stress of transitioning to postgrad life. Applying for full-time jobs could feel like a big commitment for graduates who are coping with the end of their college experience. Internships can make for a great in-between, stepping stone for graduates to use to get their feet wet and hopefully experience less stress during their final semester of college.

•   Internships also provide graduates with valuable hands-on experience and potentially a connection to their first full-time job. Getting a degree is important, but it isn’t the same as having previous experience in the field.

Doing a postgrad internship can help recent graduates bulk up their skills and fill out their resume. Some internships will even transition into full-time jobs with the same company. For employers, it can be easier to hire someone they’ve already seen in action.

•   Getting an internship can also help recent graduates build up their network outside of college. Developing relationships within the field of interest can benefit students when they start their job search after completing their internship.


💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

So, What are Internships Like?

What postgraduate internships are like will vary tremendously from position to position, industry to industry. An internship for recent graduates at, say, an animal clinic vs. an investment bank could be the proverbial “night and day.”

There are, of course, some common concerns and questions about these gigs. If you’re considering applying for postgraduate internships, the first question most people are going to have is: Is it paid?

The answer to this question will vary by internship and by industry. For example, internships in banking, accounting, and government are often paid.

The determination for whether or not an internship will be paid can depend on how much the student is benefitting from the experience vs. the company.

•   An unpaid internship is usually more learning-based and it’s expected that the recent grad will be gaining more from the internship than the company does.

•   A paid internship usually involves the company benefiting more from the grad’s efforts than the person does.

Another way to look at the position is that if it’s paid, the postgraduate can do the same tasks as employees and get hands-on knowledge that way. If the recent grad is not paid, they may only be able to observe what the paid employees are doing and perform adjacent tasks. This can, however, still be useful.

Because internships are usually short-term commitments, most of them won’t provide the same benefits that full-time employees have. There may be other perks though, such as social events, vacation days off. What’s more, some internships may cover the cost of housing and other expenses, such as transportation.

Another point to recognize is that a graduate internship will give you experience in the world of work, which can boost your confidence as you job hunt. You get used to how businesses function, how colleagues interact, and how employees prioritize competing responsibilities. All good intel!

Recommended: How Student Loans Affect Your Credit Score

How to Get an Internship

Getting an internship will require some effort, and it’s often better to start before you get your diploma as things can be competitive. Here are some ways to start your hunt for a graduate internship:

•   One place to start is networking with professors and alumni and utilizing the school’s career center.

•   Graduates can use platforms like LinkedIn or their school’s alumni database to find people in their chosen career fields to reach out to. Grads should get comfortable communicating with these people and being clear about what types of internships they’re looking for. These conversations can help open doors that otherwise may have been hard to find.

•   Internships (paid and unpaid) are increasingly posted on online job sites. Take a look using “internship” as a keyword, and you may be surprised to find a good number of opportunities.

Get Your Resume Ready

It’s also key to have a resume and cover letter ready to go. These may have to be tweaked for each internship. If a recent graduate is searching for an internship in a specific field, then they might be able to get away with making minimal changes.

If you haven’t already honed yours, check in with career services, or look at the many templates and examples online. Experiment with them, and have a trusted family member or mentor review it from the perspective of, “Would I interview this person based on this resume?”

Grads should be creative (but not untruthful) when listing their skills and experiences on their resume. Even if you haven’t had a full-time job yet, you’ve probably picked up valuable skills at part-time jobs and in college that merits inclusion. Holding a job of any sort can show that you are a responsible, hard-working individual.

Practice Your Interview Skills

Preparing for interviews will also help recent graduates snag an internship. A few pointers:

•   It’s vital to do research on the company before the interview for a postgrad internship. Review things like the company’s mission, what their current projects are, and what the company culture is like. Having knowledge of the company can highlight that the applicant has done their research and is excited about potentially joining the company.

•   Preparation for interviews also includes studying common internship interview questions and prepping for those. You can find them online, from friends’ experience, and likely from your school’s career services office. The interview will be less nerve-racking when you know what to expect. It’s also helpful to prepare a couple of your own questions to ask the interviewer. This shows an interest in the company and commitment to learning more.

•   Many interviews take place by video meetings today. Get familiar with the possible ways these are conducted (Zoom vs. Microsoft Teams, say). It can also be wise to check your connectivity in advance and log in early.

•   Thank your interviewer, always. And if you are offered an internship, research how to accept a job offer.


💡 Quick Tip: When rates are low, refinancing student loans could make a lot of sense. How much could you save? Find out using our student loan refi calculator.

Repaying Your Student Loans

In addition to job (or internship) hunting, graduates will also have to face the reality of paying back their student loans. The exact timing for when repayments start will vary by the type of loan. Graduates should keep this in mind when applying for internships and full-time jobs and develop a budget for their postgrad life.

For federal loans, there are a couple of different times that repayment may begin.

•   Students who borrowed a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, have a six month grace period after graduation before they’re required to make payments.

•   When it comes to the PLUS loan, it depends on the type of student who’s taken one out. Undergraduates will be required to start repayment as soon as the loan is paid out.

•   Graduate and professional students with PLUS loans will be on automatic deferment while they’re in school and up to six months after graduating or after you drop below half-time enrollment status.

With the repayment period coming up, graduates may consider refinancing their student loans. What does that mean? Refinancing student loans occurs when a lender pays off the existing loan with another loan, typically at a lower rate or for a longer term, which can help lower payments. However, it’s important to know that when you refinance with an extended term, you may pay more interest over the life of the loan.

Also, while both federal and private student loans can be refinanced, when federal student loans are refinanced by a private lender, they’ll forfeit their federal benefits and protections. Graduates will want to consider this before deciding to refinance any federal loans.

Recommended: Student Loan Consolidation Rates: What to Expect

The Takeaway

Postgrad internships can help students build their resume, expand their networks, and gain valuable job experience. Depending on factors like the company and industry involved, postgraduate internships may or may not be paid. Students still exploring their career options may find value in pursuing a postgraduate internship, whether or not it brings in income.

After graduation, students will likely begin repayment on their student loans. Some students may consider refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

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

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SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

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

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

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

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

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