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Introverts can succeed in almost any job that interests them. Contrary to what many people might think, introverts aren’t necessarily shy, but they do like working independently or in small groups. They typically are drawn to inner thoughts and ideas versus focusing on external matters. In addition, they may prefer having some quiet time to reflect and recharge instead of a job that requires nonstop meetings.

Thankfully, there are plenty of jobs that can suit this personality type and offer a challenging and fulfilling career path. Read on to learn more.

Self-employment or jobs offering flexible schedules can benefit introverts who prefer to manage their own workload.

What Makes the Ideal Job for an Introvert?

According to conventional psychology, introverts prefer to spend time with just one or two people, rather than larger groups or crowds. They’re not necessarily loners; in fact, many have highly developed social skills. However, they tend to gravitate toward situations and environments in which they feel less pressure to react or respond quickly or to engage with multiple people (such as constantly leading major team meetings).

An ideal job for an introvert may allow them to:

•   Work independently

•   Work alone or in quiet spaces that allow them to think and deploy their analytical and decision-making skills

•   Focus on one task at a time

•   Engage one-on-one (or one-on-a-few) instead of in large groups

•   Leverage their empathy and creativity

What Kind of Work Does Not Fit an Introvert?

As noted above, jobs that require a lot of collaboration with or presentations to large groups of people may not be a great fit for introverted people. Introverts are likely to be less comfortable with jobs that involve loads of group brainstorming sessions or that require them to regularly verbalize their thoughts and feelings to multiple people at once.

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30 Jobs for Introverts

Finding a rewarding job as an introvert means finding a career that suits your interests and caters to your inner-directed personality type, as described above. Some careers may particularly appeal to people who prefer independent work or minimal social interaction, similar to roles featured in this list of entry-level jobs with little human interaction.

Here are 30 jobs that can be a great match for introverts, with salary information from the Bureau of Labor Statistics.

1. Web Developer or Digital Designer

•   2024 median salary: $95,380

•   Primary duties: This career is all about the design, coding, and development of websites for optimal performance and user experience. This could be a job where an introvert works solo all day, or it might involve small team collaborations. With its union of creativity and analytical insights, web development can be a great option for introverts.

2. Farmer or Rancher

•   2024 median salary: $87,980

•   Primary duties: The image of farmers and ranchers working solo in wide open spaces is iconic. While that can be true, this career may involve some interaction with others on a work team. Primary duties are overseeing the production of crops, livestock, and dairy products.

3. Psychologist

•   2024 median salary: $94,310

•   Primary duties: Psychologists can work in a variety of settings, from a medical center to private practice, but the field involves assessing and supporting cognitive and emotional wellness. This can be a very rewarding career for introverts who want to channel their empathy and social skills.

4. Plumber, Pipefitter, or Steamfitter

•   2024 median salary: $62,970

•   Primary duties: This career is all about installing and repairing pipe fixtures. There aren’t many meetings or lots of large-group interactions. Introverts can enjoy the focus and problem-solving this job demands, and skilled trades such as plumbing are often among the high-paying trade jobs in demand.

5. Postal Service Worker

•   2024 median salary: $57,870

•   Primary duties: Typically, this work involves collecting, sorting, and delivering mail to businesses and private residences or helping post office customers. It can give introverts the opportunity to work alone or have small-scale interactions.

6. Social Worker

•   2024 median salary: $61,330

•   Primary duties: Social workers help people resolve problems in their lives. Introverts who are empathetic listeners, enjoy helping others, and find lots of one-on-one interaction satisfying will likely enjoy social work.

7. Heating, Ventilation, and Air Conditioning Technician

•   2024 median salary: $59,810

•   Primary duties: This job requires workers to assemble and repair heating, cooling, and ventilation systems. It can suit the mechanically inclined and those who like to be immersed in hands-on problem-solving.

8. Environmental Scientist

•   2024 median salary: $80,060

•   Primary duties: In this job, a person uses their knowledge of nature to improve the environment and human health. It can involve time outdoors and in a lab, with opportunities to analyze and interpret research data.

9. Delivery Truck Driver

•   2024 median salary: $42,770

•   Primary duties: For those who like lots of solo time and the feeling of being on the open road, being a delivery truck driver can be a dream job. Duties involve the pickup, transport, and delivery of packages or goods from one location to another.

10. Writer or Author

•   2024 median salary: $72,270

•   Primary Duties: Writing is a diverse career, ranging from writing fiction to composing technical manuals for manufacturers. It can allow an introvert to explore a particular passion in print and often involves a good amount of independent work. Many writers also work remotely, which means they may experience some of the benefits of working from home.

11. Librarian

•   2024 median salary: $64,320

•   Primary duties: This can be a fulfilling career for introverts; most interactions involve collaborating with individuals seeking help with research. Plus, it taps both creativity and problem-solving skills and usually has a steady pace. Bonus: Librarians tend to work in quiet environments.

12. Physician

•   2024 median salary: $239,200

•   Primary duties: This demanding career requires a high level of training. With a salary well into six figures, this is one of the highest-paying jobs on our list. It offers the rewarding work of interacting one-on-one with patients and other members of a medical team to treat illnesses and help people achieve optimal health.

13. Roofer

•   2023 median salary: $50,970

•   Primary duties: For introverts who value independence and enjoy problem-solving, being a roofer can be a good fit. Most of the workday is spent replacing, repairing, and installing roofs on buildings and houses. Many skilled or hands-on careers like this can also fall into the category of well-paying jobs without a college degree.

14. Surveying and Mapping Technician

•   2024 median salary: $51,940

•   Primary duties: Collecting data and taking land measurements in order to create maps of the Earth’s surface is a unique job, melding creative and analytical pursuits. It’s unlikely to involve many large meetings and can give introverts the think time they love.

15. Mechanic

•   2024 median salary: $49,670

•   Primary duties: This job can be a good fit for those who like to work with their hands and problem-solve with a small team as they troubleshoot and repair automobiles and other forms of transportation.

16. Bookkeeper

•   2024 median salary: $49,210

•   Primary Duties: Love a good spreadsheet and balancing finances? Being a bookkeeper can provide satisfying work for those who enjoy working with numbers. The role also has potential as a work-at-home job for retirees.

17. Interpreter or Translator

•   2024 median salary: $59,440

•   Primary duties: Provided you have deep knowledge of one or more foreign languages, this can be a solid job if you’re an introvert, collaborating one-on-one or in small groups to convert one language into another. It may involve translating texts or translating spoken language in real time.

18. Software Quality Assurance Analyst or Tester

•   2024 median salary: $131,450

•   Primary duties: Techies, this one’s for you; it typically involves testing software to identify and debug problems or to learn how the software works. This can offer plenty of focused work time.

19. Marketing Manager

•   2024 median salary: $159,660

•   Primary duties: This potentially high-earning career focuses on managing outreach to build a business or a brand. This can tap an introvert’s creativity and analytical skills. Small team meetings and travel to meet with clients may be part of the job. With this and other high-paying roles, professionals may benefit from understanding salary negotiation tactics and strategies.

20. Photographer

•   2024 median salary: $42,520

•   Primary duties: Photographers produce, shoot, and potentially edit (hello, Photoshop!) images for personal or professional use. It’s a highly creative pursuit that may suit an introvert’s personality. Some photographers build freelance businesses or side gigs that can become part of ways to make extra income from home.

21. Proofreader

•   2024 median salary: $51,100

•   Primary duties: This can be a satisfying job, tapping an introvert’s analytical abilities and giving them space to think as they read content and correct spelling, punctuation, and grammatical errors. Proofreading is usually a quiet, somewhat solitary profession.

22. Landscaper

•   2024 median salary: $38,740

•   Primary duties: There’s not too much large-group interaction if you’re a landscaper. Workdays are spent maintaining outdoor grounds by mowing, trimming, planting, watering, fertilizing, raking, and other methods.

23. Physician Assistant (PA)

•   2024 median salary: $133,260

•   Primary duties: Assisting both physicians and patients can put an introvert’s empathy and technical know-how to good use. It does require specialized training: A PA is similar to a nurse practitioner — one step below a doctor and a step above a nurse. With salaries well into six figures, professionals in roles like this may also want to understand how earnings change over time using a salary inflation calculator.

24. Animal Trainer

•   2024 median salary: $33,860

•   Primary duties: Dog, horse, and other animal lovers may find this to be an ideal career, with time spent teaching animals obedience, staying calm, and assisting people.

25. Medical Transcriptionist

•   2024 median salary: $37,550

•   Primary duties: Medical transcriptionists, as the name indicates, transcribe voice recordings from physicians and nurses and convert them into written reports. This can provide a career with plenty of quiet time for detail-oriented introverts.

26. Floral Designer

•   2024 median salary: $36,120

•   Primary duties: A floral designer can spend their days arranging decorative displays using live, dried, or silk flowers, which can be a creative endeavor without too many big meetings.

27. Data Scientist

•   2024 median salary: $112,590

•   Primary duties: Data scientists deploy analytical tools and techniques to pull valuable insights from data. This is listed as one of the fastest-growing jobs in today’s digital economy.

Recommended: How to Make a Personal Budget

28. Teacher

•   2024 median salary: $64,580

•   Primary duties: Teachers and instructors are responsible for helping students of different ages learn various topics and skills. The job may tap an introvert’s empathy, and it may involve small meetings with students or their parents. Bonus: Teaching can be one of those jobs that pays off student loans through the Public Student Loan Forgiveness program.

29. Hand Sewer

•   2024 median salary: $36,650

•   Primary duties: Technically speaking, this job is about sewing and finishing items with a needle and thread. It can suit craft-oriented, creative, and independent workers who like the mental space it provides.

30. Accountant

•   2024 median salary: $81,680

•   Primary duties: An accountant prepares or reviews financial records, tapping their analytical skills. This career can incorporate interactions with individual clients or businesses, which may suit introverts well.

The Takeaway

There are many challenging and satisfying jobs that can suit introverts, from writer to data scientist to physician. In fact, many high-paying and rewarding jobs are well-suited to the personality traits of introverted people.

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FAQ

What are good jobs for introverts?

There are many jobs that suit introverts well and leverage their empathy, creativity, and analytical skills. These can include a research librarian, a physician, or a landscaper, among others.

Is self-employment good for introverts with anxiety?

Self-employment can be a good fit for introverts who experience anxiety working with large teams or with multiple people. However, self-employment can also create stress if it requires you to search for clients or manage a large workload on your own.

What is a good job for someone with introverted qualities?

Any job that allows you to work independently and in a quiet environment at least some of the time is generally better if you’re an introvert. A floral designer and a proofreader are good examples of this.

What types of work environments do introverts typically prefer?

Introverts often do not desire large-group interaction and prefer focused work, small teams, and one-on-one communication to be productive. They generally tend to avoid the overstimulation of constant meetings or crowded workplaces.

Can introverts succeed in high-paying careers?

Yes. Many high-paying careers can suit introverted personality traits. Roles such as physician, software developer, and data scientist often involve analytical thinking, specialized expertise, and focused work that may appeal to introverts while offering strong salary potential.

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Photo credit: iStock/Wiphop Sathawirawong

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Certificate programs offer a flexible, focused, and often more affordable way for individuals to gain specialized skills and knowledge without committing to a full degree program. Whether you’re a student looking to supplement your education, a working professional seeking career advancement, or someone wanting to switch industries, certificate programs provide valuable credentials in a shorter time frame than a degree.

Keep reading to learn what certificate programs are, their benefits, and how to choose the right one to meet your personal and professional goals.

What Is a Certificate Program?

Certificate programs are courses or vocational training provided by colleges or professional associations that last less than two years, and they often last less than one year. They can prepare you for work in trade, technical, and vocational careers.

Trade schools prepare you for jobs such as a welder, electrician, and cosmetologist. Vocational schools focus on in-demand jobs that can be trained for in two years or less, such as a paralegal or a dental assistant. Technical schools teach skills for one trade and typically involve hands-on, practical training. Programs include HVAC, auto repair, and some nursing certifications.

Professional certifications are typically earned by passing an exam from a third-party professional group (and may need to be renewed). Licenses are awarded by government agencies and may require meeting certain requirements to work in a specific occupation. Certificates can also be career training programs for bachelor’s degree holders to expand their expertise without earning a degree. For instance, a marketing professional can enroll in a social media marketing course, a niche area of marketing, to broaden their skill set.

Certificate Programs vs College Degrees

Certificate programs and college degrees differ in curriculum, program length, cost, and program outcome.

Curriculum: Colleges integrate general education courses with specialized study, whereas certificates teach only the skills for a trade or subject and typically have no education requirements

Length: Certificate programs are shorter. College degrees require a minimum of two to four years for full-time students. Certification can sometimes take just one month but is typically three to four months for one-off courses. Training programs for certifications are usually one to two years.

Cost: A college education has a substantial price tag. The average college tuition and fees for 2025-2026 were $11,950 for full-time in-state students at public four-year colleges and $45,000 at private nonprofit four-year institutions, according to College Board. Certificate program costs vary, but they generally have lower program costs than degrees.

Program outcome: Program outcomes differ. Certificates train students for a specific skill and immediate placement in careers with those skills, while college programs provide an extensive and expansive education that can provide opportunities in multiple disciplines within a field. For instance, someone who earns a bachelor’s in economics can enter finance analytics, business consulting, and various disciplines in finance-related fields.

Recommended: A Guide to Choosing the Right College Major

How Long Are Certificate Programs?

Certificate programs can range from a few weeks to two years. The University of San Diego’s paralegal program can take four to eight months to complete, for example. A cosmetology program at Fullerton College in California requires 1,600 hours of instruction, so the program length depends on you and the field you are planning on studying.

Types of Certificate Programs

The two most common types of certificate programs are undergraduate and graduate. They follow compulsory education, and outside of a degree, provide education needed for specific fields such as business, administration, and healthcare.

Undergraduate

Undergraduate programs build technical skills and subject mastery via career training programs or one-off courses. Enrollees usually must have a high school diploma for certain courses. They can often be completed in one academic year or less.

Some programs, such as cosmetology, can lead to state licensure at the end of the program. Ensure your program is formally accredited by the state or professional organization and will prepare you for required licensing exams.

Graduate

Graduate courses enhance a college degree. Students test and earn a certificate to satisfy course completion without earning a degree. Some courses require prior knowledge of a topic. For example, students employed in computer engineering can earn a certificate in a new computer language.

They are offered by universities and colleges, and programs are credit-based. Some programs’ credits can be transferred to other colleges.

Online Certificate Programs

Online certificate programs offer multiple advantages, with convenience being at the top of the list. The online universe has a library of extensive certificate programs, and prestigious courses are accessible to everyday learners. For example, Coursera and edX offer online courses from university partners. Also, MOOCs (massive open online courses) offer free and paid programs from universities, nonprofits, and for-profit companies.

Online courses also offer flexibility. Asynchronous courses, those without a specific meeting time, allow students to take a course at their own pace. You can access pre-recorded content anytime and follow class discussion on comment boards. On the other hand, synchronous online programs are more restricted to a schedule. They work like in-person courses where students attend live online lectures, meet due dates, and engage in online class activities.

Finally, online courses may be less expensive than in-person ones. Cutting the commute and certain campus fees can result in lower overall prices than in-person learning.

Not all certificate programs offer online learning. Hands-on vocations, such as landscaping, plumbing, and electrical engineering, often require apprenticeships to demonstrate material understanding and to meet minimum requirements.

Is a Certificate Program Right for You?

Certificate programs might be a good fit if you want to try a trade career. They are a lower-cost way to test out vocations than a degree program. And college credits from some courses can be put toward a formal college degree if you decide to pursue a bachelor’s.

If you want to learn a new skill for work, graduate certificate courses are one alternative to a master’s or professional degree. For instance, some companies will pay employees to get a Project Management Professional (PMP) certificate to better equip their employees and improve workforce productivity.

Certificate programs are a great way to kick-start a career change. Some popular certificate programs for career changes include business analysis, law, human resources, and accounting. They are offered by professional organizations, such as the American Institute of Certified Public Accountants for accounting.

Program Type	Certificate Programs	Certification Programs	College Degrees
What do you gain?	Add skills with specific courses for your current job	Fast-track into trade careers or career advancement	Gain career opportunities not limited to trade vocations
How long do you study?	Programs last a few weeks to a few months	Programs last a few months and up to two years	Programs for full-time students last two to four years
How many credits are programs?	15-30 credits, though requirements may vary	4-30 credits, requirements may vary	60 for associate, 120-130 for bachelor’s, and 30-60 credits for graduate programs
This program is good for…	Kick-starting a career change; adding skills to your existing job	Starting a new career (usually in trade vocations); advancing careers into management	Starting a new career or changing a career

Benefits of a Certificate Program

Certificates can propel students directly into the workforce with in-demand skills. Future success in earnings depends on the trade field you choose. For instance, the median annual earnings for a dental hygienist were $94,260 in 2024, according to the Bureau of Labor Statistics (BLS). In comparison, the median wage for cosmetologists was $35,420 in 2024, according to the BLS.

Certificates can also complement a college degree or help a professional acquire skills to advance upward within a field. A marketing professional can expand their skillset with niche training. And it pays to learn. In Coursera’s 2025 Learner Outcomes Report, 91% of learners reported at least one positive career outcome after completing a course or program.

Certificate programs can also save time and money. Programs are fewer credits than full degrees and are shorter in length, so cost substantially less than a degree.

Drawbacks of a Certificate Program

Certificates alone can increase income value modestly — and the gains can be diminished in a rapidly evolving workplace. Some studies even show negative returns for certificate holders without a college degree, according to the nonprofit New America.

One BLS report shows bachelor’s degree holders earn median weekly earnings of $1,541, while “some college or associate degree” earners make $1,057 per week on average.

Furthermore, more vocations require a college degree. According to BLS, a bachelor’s degree is required for 178 occupations while an associate degree or a postsecondary nondegree award is required for only 99 occupations.

While certificate programs equip you with skills to land an entry-level job after a short time, they may not pay off in the long run.

What to Look for in a Certificate Program

Evaluate programs by accreditation: Quality courses are accredited by the U.S. Department of Education or the Council for Higher Education Accreditation. They might also be verified by certifying bodies within that industry, such as HRCI for Professional Human Resources certification.

Determine flexibility: Some learners might benefit more from in-person courses, while an online course can give busy learners an opportunity to gain valuable expertise and skills. Furthermore, an asynchronous program can provide further flexibility for students who have unpredictable schedules.

Look out for for-profit institutions: For-profit programs can be more expensive, and outcomes vary. Use tools such as the College Scorecard to compare costs, graduation rates, and typical earnings.

What Certificate Programs Are in Demand in 2026?

There’s no shortage of demand for certificate programs. The National Center for Education Statistics says the proportion of all certificates conferred by public institutions increased from 53% to 70% from 2011-12 to 2021-22.

Top certification categories in demand in 2024, according to the International Association of Career Coaches, included:

•   Information Systems and Cybersecurity: ($73K to $123K average salary)

•   Project Management: ($99K to $122K average salary)

•   Healthcare: ($41K to $203K average salary)

•   Finance and Accounting: ($72K to $111K average salary)

•   Human Resources: ($65K to $128K average salary)

The top-paying certifications included:

•   Certified Registered Nurse Anesthetist: $203K

•   Google Cloud Professional Data Engineer: $129K

•   Global Professional in Human Resources: $128K

•   AWS Certified Solutions Architect: $123K

•   Chartered Financial Analyst: $104K

•   Certified Professional in Healthcare Quality: $100K

Coursera offers Professional Certificate programs, including Google Cybersecurity, Google Data Analytics, Google IT Support, Google Project Management, Google UX Design, IBM Data Analyst, IBM Data Science, and Microsoft Power BI Data Analyst.

How to Pay for Certificate Programs

When deciding how to pay for certificate programs, it’s important to explore all your options. Some might include savings, student loans, and other forms of financial aid.

To get a student loan for a certificate program, you can fill out the Free Application for Federal Student Aid (FAFSA®). The FAFSA will tell you what you qualify for, including federal student loans, grants, and scholarships.

You can also look into private student loans. Private student loans are given by banks, credit unions, and online lenders. While they don’t offer the same benefits and protections as federal student loans, they can be a good option for students who need funding to pay for their certificate program.

Recommended: Guide to Student Loans for Certificate Programs

The Takeaway

Certificate programs can start, enhance, or change careers for learners. They can prepare students for immediate placement in a specific trade without a college degree. They can also boost your career by providing specialized skills, enhancing your qualifications, and demonstrating expertise to employers.

Certificate programs are less expensive and shorter in duration than college degrees. To pay for a certificate program, you can look into employer assistance programs, use cash savings, or rely on federal or private student loans.

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

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

FAQ

What does a certificate program mean?

A certificate program is a short-term educational course designed to provide specialized skills or knowledge in a certain field. It typically takes a few months to two years and is aimed at enhancing career opportunities, professional development, or gaining expertise in a particular subject.

Is a certificate program worth taking?

A certificate program can be valuable for gaining specialized knowledge quickly and affordably. However, it’s important to consider the program’s relevance to your field and potential return on investment.

What are the benefits of attending a certificate program?

Attending a certificate program offers three key benefits: It provides specialized skills and knowledge in a short time, enhances your qualifications to improve job prospects, and offers a flexible, cost-effective alternative to a degree, allowing you to advance your career or switch fields efficiently.

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

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

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There are so many upsides to investing in your education — the personal enrichment and possibility of a bright and fruitful future being the most obvious. But, there are also some potential downsides that are hard to ignore, one of the main ones being the debt you may accrue.

If you’re a student loan borrower, you’ve probably noticed that your loans have a language all their own. Getting a grasp on terms such as interest rate vs. annual percentage rate (APR), subsidized vs. unsubsidized loans, and fixed vs. variable interest rates can help you make more informed, confident decisions.

Instead of enrolling in “Student Loan Language 101,” you can use our quick reference guide to find some answers without information overload. Borrowing money can have long-term financial consequences, so it’s important to fully understand the fees and interest rates that will affect the amount of money you owe.

Common Student Loan Terminology

Here are a few of the most important terms to understand before you take out a private or federal student loan.

Academic Year

An academic year is one complete school year at the same school. If you transfer, it is considered two half-years at different schools.

Accrued Interest

Accrued interest is the amount of interest that has accumulated on a loan since your last payment. You can keep private or federal student loan accrued interest in check by making your payments on time each month. However, after a period of missed or reduced payments, accrued interest may be “capitalized,” which essentially means you have to pay interest on the interest.

Adjusted Gross Income

Adjusted gross income (AGI) is an individual’s gross income, less any payroll deductions or adjustments. Income includes wages, salary, any interest or dividends you may earn, and any other sources of income. You can find your AGI on your federal income tax returns.

Aggregate Loan Limit

The aggregate loan limit is the maximum amount of federal student loan debt a borrower can have when graduating from school. The aggregate loan limits vary depending on whether you are a dependent or an independent student.

Recommended: What Is the Maximum Student Loan Amount for a Lifetime?

Amortization

Amortization refers to the amount of loan principal and interest you pay off incrementally over your loan term. Each payment is a fixed amount that contributes to both interest and principal. Early in the life of the loan, the majority of each payment goes toward interest. But over time, as you pay down your loan balance, the ratio shifts, and most of the payment goes toward the principal.

Annual Percentage Rate

APR is the annual rate that is charged for borrowing, expressed as an annual percentage. APR is a standardized calculation that allows you to make a fairer comparison of different loans. Consider the difference between interest vs. APR — APR reflects the cost of any fees charged on the loan, in addition to the basic interest rate. Generally speaking, the lower your APR, the less you’ll spend on interest over the life of the loan.

Annual Loan Limit

The yearly borrowing limit set for federal student loans.

Automated Clearing House

An electronic funds transfer is sent through the Automated Clearing House (ACH) system. The ACH is an electronic funds transfer system that helps your loan payment transfer directly from your bank account to your lender or loan servicer each month.

The benefits of ACH are two-fold — not only can automatic payments keep you from forgetting to pay your bill, but many lenders also offer interest rate discounts for enrolling in an ACH program.

Award Letter

An award letter is sent from your school and details the types and amounts of financial aid you are eligible to receive. This will include information on grants, scholarships, federal student loans, and work-study. You will receive an award letter for each year you are in school and apply for financial aid.

Award Year

The academic year that financial aid is applied to.

Borrower

The borrower is the person who took out a loan. In doing so, they agreed to repay the loan.

Campus-Based Aid

Some financial aid programs are administered by specific financial institutions, such as the federal work-study program. Generally, schools receive a certain amount of campus-based aid annually from the federal government. The schools are then able to award these funds to students who demonstrate financial need.

Recommended: Am I Eligible for Work-Study?

Cancellation

This refers to the cancellation of a borrower’s requirement to repay all or a portion of their federal or private student loans. Loan forgiveness and discharge are two other types of loan cancellation.

Capitalization

Capitalization is when unpaid interest is added to the principal value of the private or federal student loan. This generally occurs after a period of nonpayment, such as forbearance. Moving forward, the interest will be calculated based on this new amount.

Capitalized Interest

Accrued interest is added to your loan’s principal balance, typically after a period of nonpayment, such as forbearance. When the interest is tacked onto your principal balance, your interest is now calculated on that new amount.

Most federal and private student loans begin accruing interest as soon as you borrow them. While you are often not responsible for repaying your student loans while you are in school or during a grace period or forbearance, interest will still accrue during these periods. At the end of said period, the interest is then capitalized, or added to the principal of the loan.

When interest is capitalized, it increases your loan’s principal. Since interest is charged as a percent of principal, the more often interest is capitalized, the more total interest you’ll pay. This is a good reason to use forbearance only in emergency situations and end the forbearance period as quickly as possible.

Cosigner

A cosigner is a third party, such as a parent, who contractually agrees to accept equal responsibility in repaying your loan(s). A federal or private student loan cosigner, also known as an endorser, can be valuable if your credit score or financial history is not sufficient to allow you to borrow on your own.

With a cosigner, you are still responsible for paying back the loan, but the cosigner must step in if you are unable to make payments. A co-borrower applies for the loan with you and is equally responsible for paying back the loan according to the loan terms on a month-to-month basis.

Consolidation (Through the Direct Loan Consolidation Program)

Private or federal student loan consolidation is the act of combining two or more loans into one loan with a single interest rate and term. The resulting interest rate is a weighted average of the original loan rates — rounded up to the nearest one-eighth of a percentage point.

Only certain federal loans are eligible for the Direct Consolidation Program. Consolidating can make your life simpler with one monthly bill, but it may not actually save you any money. You may be able to reduce your monthly payments by increasing the loan term, but this means you’ll pay more interest over the life of the loan.

Consolidation (Through a Private Lender)

Consolidation is the act of combining two or more loans into one single loan with a single interest rate and term. When you consolidate loans with a private lender, you do so through the act of refinancing, so you’re given a new (hopefully lower) interest rate or lower payments with a longer term.

By refinancing, you may be able to lower your monthly payments or shorten your payment term. Keep in mind that you may pay more interest over the life of the loan if you refinance with an extended term. And federal student loans come with a host of benefits and protections that are forfeited should you refinance.

Recommended: What Is a Direct Consolidation Loan?

Cost of Attendance

Cost of attendance is the estimated total cost for attending a college based on the cost of tuition, room and board, books, supplies, transportation, loan fees, and miscellaneous expenses. Schools are required to publish the cost of attendance.

Credit Report

Credit reports detail an individual’s bill payment history, loans, and other financial information. These reports are used by lenders to evaluate your creditworthiness.

Default

Default is the failure to repay a loan according to the terms agreed to in the promissory note. Defaulting on your private or federal student loans can have serious consequences, such as additional fees, wage garnishment, and a significant negative impact on your credit. It’s always better to talk to your lender about potential hardship repayment options, such as deferment or forbearance, before defaulting on a loan.

Deferment

Deferment is the temporary postponement of loan repayment, during which time you may not be responsible for paying interest that accrues (on certain types of loans). Federal student loan deferment can be useful if you think you’ll be in a better place to pay your loans at a later date. However, deferment is usually only available for certain federal loans. To potentially cut down on interest, it may be wise to weigh your deferment options.

Delinquency

When you miss a student loan payment, the loan becomes delinquent. The loan will be considered delinquent until a payment is made on the loan. If the loan remains in delinquency for a specified period of time (which varies for federal vs. private student loans), it may enter default.

Direct Loan

The Direct Loan Program is administered via the U.S. Department of Education. There are four main types of direct loans, including, Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

Direct PLUS Loan

Direct PLUS Loans are types of federal loans that are made to graduate or professional student borrowers or to the parents of undergraduate students. Direct PLUS Loans made to parents may be referred to as Parent PLUS Loans.

Note that, starting July 1, 2026, no new Direct PLUS loans will be offered to graduate and professional students. Any borrowers who received a Direct PLUS loan before that date can continue borrowing under the current terms through the 2028-29 academic school year.

Disbursement

When funds for a loan are paid out by the lender.

Discharge

Student loan discharge for private and federal loans occurs when you are no longer required to make payments on your loans. Typically, discharge occurs when there are extenuating circumstances, such as the borrower has experienced a total and permanent disability or the school at which you received your loans has closed.

Discretionary Income

Discretionary income is the money remaining after you pay for necessary expenses. An individual’s discretionary income is used to help determine their loan payments on an income-driven repayment plan.

Enrollment Status

Determined by the school you attend, your enrollment status is a reflection of where you stand with the school. It includes full-time, half-time, withdrawn, and graduated.

Expected Family Contribution

The expected family contribution was an estimation of the amount of money a student and their family were expected to pay out of pocket toward tuition and other college expenses. It is now known as the Student Aid Index (SAI).

Federal Work-Study

A type of financial aid, students who demonstrate financial need may qualify for the Federal Work-Study program, where they work part-time to earn funds to help pay for college expenses.

Financial Aid

Financial aid is funds to help pay for college. Financial aid includes grants, scholarships, work-study, and federal student loans.

Financial Aid Package

An overview of the types of financial aid you are eligible to receive for college, financial aid packages provide information on all types of federal financial aid and college-specific aid, such as scholarships, grants, work-study, and federal student loans.

Financial Need

Some types of financial aid are determined by financial need. Financial need is determined by the Free Application for Federal Student Aid (FAFSA®).

Fixed Interest Rate

Fixed interest rates remain the same for the life of the loan. The interest rate does not fluctuate.

Forbearance

Forbearance is the temporary postponement of loan repayment, during which time interest typically continues to accrue on all types of federal student loans. If your student loan is in forbearance, you can either pay off the interest as it accrues or allow it to accrue, and it will be capitalized at the end of your forbearance.

Use forbearance wisely, because interest that accrues during the forbearance period is typically capitalized, making your loan more expensive. If you can afford to make even small payments during forbearance, it can help keep interest costs down.

You will usually have to apply for student loan forbearance with your loan holder and will sometimes be required to provide documentation proving you meet the criteria for forbearance. For a loan to be eligible for forbearance, there must be some unexpected temporary financial difficulty.

Forgiveness

Loan forgiveness is another situation in which you are no longer responsible for repaying all or a portion of your federal student loans. Public Service Loan Forgiveness and Teacher Loan Forgiveness are two types of loan forgiveness programs in which your loans are forgiven after meeting specific requirements, such as working in a qualifying job and making qualifying loan payments.

Free Application for Federal Student Aid (FAFSA)

This is the application students use to apply for all types of federal student aid, including federal loans, work-study, grants, and scholarships. The FAFSA must be completed for each year a student wishes to apply for financial aid.

Recommended: FAFSA Guide

Grace Period

The grace period is a period of time after you graduate, leave school, or drop below half-time during which you’re not required to make payments on certain loans. Some loans continue to accumulate interest during the grace period, and that interest is typically capitalized, making your loan more expensive.

Grad PLUS Loans

Another term to refer to a Direct PLUS loan, specifically one borrowed by a graduate or professional student.

Graduate or Professional Student

A student who is pursuing educational opportunities beyond a bachelor’s degree. Graduate and professional programs include master’s and doctoral programs.

Graduated Repayment Plan

A type of repayment plan available for federal student loan borrowers. On this repayment plan, loan payments begin low and increase every two years. This plan may make sense for borrowers who expect their income to increase over time.

Grant

Grants are a type of financial aid that does not need to be repaid. Grants are often awarded based on financial need or merit.

Recommended: The Differences Between Grants, Scholarships, and Loans

In-School Deferment

Students who are enrolled at least half-time in school are eligible to defer their federal student loans. This type of deferment is generally automatic for federal student loans. Note that unless you have a subsidized student loan, interest will continue to accrue during in-school deferment.

Interest

Interest is the cost of borrowing money. It is money paid to the lender and is calculated as a percentage of the unpaid principal.

Interest Deduction

A tax deduction that allows you to deduct the student loan interest you paid on a qualified student loan for the tax year. Interest paid on both private and federal student loans qualifies for the student loan interest deduction.

Lender

The financial institution that lends funds to an individual borrower.

Loan Period

A loan period is the academic year for which a private or federal student loan is requested.

Loan Servicer

A loan servicer is a company your lender may partner with to administer your loan and collect payments. For questions about your private or federal student loan payments or administrative details such as account information, you should contact your student loan servicer.

Origination Fee

Some lenders charge an origination fee for processing a loan application, or in lieu of upfront interest. To minimize incremental costs on your loan, look for lenders that offer no or low fees.

Part-Time Enrollment

Students who are enrolled in school less than full-time are generally considered part-time students. The number of credit hours required for part-time enrollment is determined by your school.

Pell Grant

The Pell Grant is awarded by the federal government to undergraduate students who demonstrate exceptional financial need.

Perkins Loan

Perkins Loans were a type of federal loan available to undergraduate and graduate students who demonstrated exceptional financial need. The Perkins Loan program ended in 2017.

PLUS Loans

Another way to describe Direct PLUS Loans, PLUS Loans are federal loans available for graduate and professional students or the parents of undergraduate students.

Prepayment

Prepayment is paying off the loan early or making more than the minimum payment. All education loans, including private and federal loans, allow for penalty-free prepayment, which means you can pay more than the monthly minimum or make extra payments without incurring a fee. The faster you pay off your loan, the less you’ll spend on interest.

Prime Rate

The Prime rate is the interest rate that commercial banks charge their most creditworthy customers. The basis of the prime rate is the federal funds overnight rate. The federal funds overnight rate is the interest rate that banks use when lending to each other. The prime rate can be used as a benchmark for interest rates on other types of lending.

Principal

The Principal is the original loan amount you borrowed. For example, if you take out one $100,000 loan for grad school, that loan’s principal is $100,000.

Private Student Loan

A private student loan is lent by a private financial institution, such as a bank, credit union, or online lender. These loans can be used to pay for college and educational expenses, but are not a part of the Federal Direct Loan Program. These loans don’t offer the same borrower protections available to federal student loans — like income-driven repayment plans or deferment options.

Promissory Note

A promissory note is a contract that says you’ll repay a loan under certain agreed-upon terms. This document legally controls your borrowing arrangement, so read it carefully. If you don’t fully understand the agreement, contact your lender before you sign.

Repayment

Repayment is repaying a loan plus interest.

Repayment Period

The agreed-upon term in which loan repayment will take place.

Scholarship

A scholarship is a type of financial aid that typically doesn’t need to be repaid. Scholarships can be awarded based on merit.

Secured Overnight Financing Rate

The Secured Overnight Financing Rate (SOFR) is an interest rate benchmark that is commonly used by banks and other lenders to set interest rates for loans. The SOFR is the cost of borrowing money overnight collateralized by Treasury securities.

Stafford Loans

Stafford loans were a type of federal student loan made under the Federal Family Education Loan Program. Beginning in 2010, all federal student loans are now loaned directly through the William D. Ford Federal Direct Loan Program.

Standard Repayment Plan

The Standard Repayment Plan is one of the repayment plans available for federal student loan borrowers. This repayment plan consists of fixed payments made over a 10-year period.

Student Loan Refinancing

Student loan refinancing is using a new loan from a private lender to pay off existing federal or private student loans. This allows you to secure a new (ideally lower) interest rate or adjust your loan terms. You may pay more interest over the life of the loan if you refinance with an extended term.

Subsidized Loan

A Direct Subsidized Loan is a type of federal loan available to undergraduate students where the government covers the interest that accrues while the student is enrolled at least half-time, during the grace period, and other qualifying periods of deferment.

Term

The Term is the expected amount of time the loan will be in repayment. Generally speaking, a longer term will mean lower monthly payments but higher interest over the life of the loan, while a shorter term will mean the opposite. Loan terms vary by lender, and if you have a federal loan, you are usually able to select your federal student loan repayment plan.

Tuition

The cost of classes and instruction.

Undergraduate Student

A college student who is enrolled in a course of study, typically lasting four years, with the goal of receiving a bachelor’s degree.

Unsubsidized Loan

A Direct Unsubsidized Loan is a type of federal loan available to undergraduate or graduate students. The major difference between subsidized vs. unsubsidized loans is that the interest on unsubsidized loans is not paid for by the federal government.

Variable Interest Rate

Unlike a fixed interest rate, a variable interest rate fluctuates over the life of a loan. Changes in interest rates are tied to a prevailing interest rate.

The Takeaway

Understanding key terms is essential for navigating student borrowing. Prioritizing sources of financial aid that don’t need to be repaid, such as scholarships and grants, can be helpful. But these don’t always meet a student’s financial needs.

Federal student loans have low interest rates and, for the most part, don’t require a credit check. Plus, they have borrower protections in place, such as income-driven repayment plans and deferment options, which make them the first choice for most students looking to borrow money to pay for college.

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

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

FAQ

What are common student loan terms?

Common federal and private student loan terms include the principal (the original borrowed amount), interest rate (the cost of borrowing), and repayment term (the length of time to repay the loan). Other terms involve grace periods (time before payments start after graduation), deferment, forbearance (temporary relief from payments), and fixed or variable interest rates.

What are the most important loan terms to understand?

It’s important to understand terms associated with borrowing because you’ll be required to repay the loan. Understand the interest rate and any fees associated with the loan.

What does APR mean in relation to student loans?

APR is a reflection of the interest rate on the loan, in addition to any other fees associated with borrowing. APR helps make it easier to compare loans from different lenders.

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When something goes wrong with their car on the road, most people have two options: call an emergency towing service or contact their roadside assistance program. Those choices may sound like the same thing, but there are important differences.

Read on for a breakdown of what you can expect from each of these services, including their pros and cons and average costs.

What Is Roadside Assistance?

If you’re stranded on the road, roadside assistance will send a mechanic, a locksmith, or a tow truck to get your car up and running, to a repair shop, or to your home.

Roadside assistance packages vary from one provider to the next, but most include the following:

•  Flat tire change

•  Battery jump-starts

•  Fuel delivery

•  Lockout assistance

•  Winching/extrication

•  Quick-fix services

Any benefits you receive on top of these basics are determined by your roadside assistance plan. For example, some plans include trip interruption coverage or a guaranteed arrest bond if you’re charged with a traffic violation. Premium plans may also offer savings on car maintenance costs, car rentals, hotels, and other perks. Extra benefits may come at an extra cost, however, so it’s important to compare plans carefully.

There are a few different ways you can get a roadside assistance plan:

•  Many insurance companies offer some type of roadside assistance coverage, usually as an add-on to your auto insurance policy. If you’re concerned about cost, there are other ways to lower car insurance premiums.

•  Another option is to pay for an auto club membership separately from your auto insurance.

•  Your car manufacturer may include a roadside assistance package as part of your warranty or as a limited free trial for a service that you can later purchase.

•  Some credit card companies offer access to roadside assistance as a cardholder perk.

What Can You Expect When Calling Roadside Assistance?

One of the benefits of participating in a roadside assistance program is that you’ll know exactly who to contact if you need help with your car. You can program the customer assistance number into your phone, download the program’s app, or tuck your membership card into your wallet or glove compartment.

Here’s what to expect when you call roadside assistance.

Calling for Help

First things first: If your child is locked in the car or you’re in a situation where you feel unsafe, you may want to first call 911. The 911 dispatcher will determine whether to send an officer to help.

If you’re not in any danger but facing issues with your car, you can just call roadside assistance. You may be asked to verify that you have an account or that the car is yours, so have your license and registration, proof of insurance, and your roadside assistance plan’s membership card on hand.

Your roadside assistance dispatcher will send the appropriate help from a network of service providers to your location. A technician may try to fix your car on site. But if that isn’t possible, they can tow your vehicle to a repair shop or to your home if you prefer and it’s within your plan’s mileage limit.

Getting Home

If your car needs towing to a repair shop, you may be able to ride with the tow truck driver. However, whether you get a ride home after depends on the company’s policy.

If you’re out of town when your car breaks down, roadside assistance with optional trip interruption coverage may pay for an overnight stay in a hotel. (If you travel a lot, you may want to check if this benefit is available when you’re comparing plans.)

Wait Times

Many roadside assistance programs work with a network of providers, so when you call, there may be someone nearby who can get to you quickly and offer the services you need. Generally, you can expect help to arrive in less than an hour.

Several factors can impact your wait time, however. If there’s heavy rain, wind, or a snowstorm, for example, you may have a longer wait. It can also take a while to get help if you’re in a rural location that’s far from a locksmith, mechanic, or towing service — or if you’re in a big city during rush hour.

Some plans provide updates through texts or an app so callers can track their wait time in real time.

Payment

Payment to the service provider who comes to your aid depends on the plan you’re enrolled in. With some programs, if you use the toll-free number or an app and the dispatcher sends a technician to help, you may not have to pay anything upfront for covered services. But if you contact a tow service, mechanic, or locksmith directly, you’ll likely pay out of pocket and then submit receipts to your plan for reimbursement.

Some plans may not have a central dispatcher. In that case, you’d call a provider directly, pay for the services, and then file a reimbursement claim. No matter how your plan handles payments, it’s a good idea to have your credit card with you when driving.

There’s no deductible for roadside assistance, and most programs have very specific limits on what they’ll cover. For example, if a service technician delivers fuel to your car because you’ve run out of gas, the delivery may be free, but you may have to pay for the gas.

What Is the Average Cost of Roadside Assistance?

The price of a roadside assistance plan varies based on several factors, including:

•  How many vehicles or drivers do you want covered

•  Where you live

•  Whether coverage occurs through your auto insurance or another source

•  The level of coverage you choose

Some plans may charge less for annual coverage and more for services received or vice versa. It can be useful to compare online insurance benefits and quotes to get a sense of what’s available and at what cost.

Generally, you’ll pay less for a plan that’s an add-on to your auto policy compared with a stand-alone membership. Allstate, for example, offers a roadside assistance insurance add-on for as little as $59 per year for one vehicle. Without an Allstate policy, the cost of a roadside assistance membership starts at $73 for the first year.

If your insurer doesn’t offer 24-hour roadside assistance or if you don’t like your insurer’s plan, you may want to check out what other insurance companies are offering.

Pros and Cons of Roadside Assistance

One of the biggest pros of roadside assistance coverage is that you know you’ll have someone to contact whenever you run into car trouble for advice or hands-on assistance.

As noted above, some plans will post a bond if you’re charged with a traffic violation or reimburse you (within limits) if you need to stay in a hotel overnight. Plans may also include benefits that go beyond roadside breakdowns, such as discounts on travel and entertainment.

Even if you call roadside assistance only once, you may save enough on the services rendered to cover your cost for the year.

Still, no one likes the idea of paying for something they may never use. If you have a newish car that’s well-maintained or you seldom drive far from home, you may decide roadside assistance isn’t for you.

Coverage limits can also be disappointing. Enrolling in a roadside assistance plan doesn’t mean you’ve got a blank check that will cover any cost you incur. You may have to pay a certain amount to have your car towed if you go beyond the mileage limit, for example, or you may have to pay for a new battery or tire if yours needs replacing. There may also be an annual limit on the number of calls for service that you can make.

Also, not all costs are covered upfront. Your plan may require you to submit receipts for reimbursement in some or all instances. If you’re averse to paperwork, that may be something to consider.

What Is an Emergency Towing Service?

The main purpose of emergency towing services is to move a vehicle when the driver can’t get back on the road. Several circumstances might require an emergency tow, including:

•  When you’re in an accident and your car can’t be driven or you’re in no shape to drive

•  If your car isn’t running, and it’s blocking traffic or putting you and other drivers in danger

•  If the police pull you over and determine that you’re in no condition to drive

There are a couple of circumstances in which your car insurance may pay for towing, even if you don’t have roadside assistance coverage:

•  After an accident, if you have collision coverage

•  If your car is damaged in a flood, fire, etc., and you have comprehensive coverage

But in most cases, if you don’t have roadside assistance or towing and labor coverage through your auto insurance policy, an auto club membership, or a car warranty, you’ll be liable to pay for your vehicle’s towing.

What Can You Expect When Calling an Emergency Towing Service?

If your car breaks down close to home, you may be able to directly call a reliable repair shop or towing service you’ve worked with in the past. Having that connection can be a benefit if you want to choose a company that can quickly help you.

But if you’re far from home and unfamiliar with the service providers available, you may have to cross your fingers and hope for the best when you call a towing service.

Here’s what you can expect when you call for emergency towing without a roadside assistance plan.

Calling for Help

If your regular mechanic or garage has the right equipment for your needs (a tow truck, a flatbed trailer, a winch, etc.), you may be good to go. They can pick up your car and get you the help you need.

But if you can’t call your favorite repair shop — because you’re out of town or it’s after hours — you may have to make a few calls before you find the appropriate help.

Some companies don’t require a subscription to use their towing and roadside assistance network, so you can try contacting them for help. But if their network doesn’t include services where you are, you may have to try your luck dialing local tow truck companies.

When a tow truck comes to your location, the driver may be able to offer on-site assistance with a flat tire, dead battery, or other problem. But you can’t necessarily count on getting the same help you’d get with a roadside assistance plan. The driver may be equipped only to tow your car back to your house or to a repair shop, and you can expect to pay in full for every service you receive if you don’t have roadside assistance coverage.

No matter who you call, it’s important to be clear about what you need. And of course, if you are in an accident or feel you may be in danger, you should call 911 first.

Getting Home

You may be able to get a ride home from the tow truck driver after they take your car to the garage. But as with a roadside assistance plan, it will likely be up to the individual driver’s discretion or company rules. If you aren’t sure if there will be a cost for the ride, you may want to ask before you get in the truck. And if you’re far from home, you also may want to ask for hotel recommendations.

Wait Times

Response times for tow trucks generally are determined by availability. If you call a tow company directly and there’s a truck close to your location, you may be able to get faster service than you would by calling a roadside assistance plan because you’re eliminating the middleman.

But the factors that can hold up a truck coming through a roadside assistance dispatcher can also delay a company you call directly, including inclement weather, rush-hour traffic, and distance.

Payment

If you call a tow truck directly, you can expect to pay the bill out of pocket. Depending on why you’re calling and the type of insurance coverage you have, you might be reimbursed for some costs. But if you’re calling about an overheated engine, a dead battery, or a flat tire and you don’t have roadside assistance coverage, your insurance company typically won’t reimburse you for the costs.

What Is the Average Cost of Emergency Towing Services?

Towing rates in the U.S. can range between $2.50 and $7 per mile, and the average cost of a tow is about $109. Besides distance, several other factors can affect the overall cost of a tow.

It may cost less to have your car towed after a breakdown than if you’ve been in an accident. And if the tow company needs to use special equipment because your car is stuck in mud, snow, or a deep ditch, for example, the cost may increase.

Many tow companies also include a base charge or hook-up fee that can range from $35 to $100. Some tow companies have a list of basic charges on their website, but if you can’t find pricing, you may want to ask to avoid surprises.

Pros and Cons of Emergency Towing Services

One of the biggest upsides to using an emergency towing service may be that you’re eliminating the middleman. You don’t have to wait for the dispatcher to find a network-approved provider to come and get you; you can call any company you like.

Of course, this can also be a drawback if you’re far from your favorite mechanic or repair shop. You may have to make multiple calls to find a tow truck that can come to your rescue.

Another plus to consider is that you won’t have to worry about paying for roadside assistance coverage every year, whether you use it or not. You’ll only pay for services you actually use.

But if you end up calling a tow truck even once and you don’t have coverage, it could cost you a substantial amount. You can end up paying more for that one tow than you would for a year of roadside assistance coverage — and you won’t be getting the perks.

How to Decide Between Roadside Assistance and Emergency Towing Services

Because there are pros and cons to both roadside assistance coverage and emergency towing services, here are some things you may want to look at when you’re trying to decide between the two.

Your Comfort Level

Are you someone who likes planning for when things go wrong, or are you OK with winging it? If you want the security of knowing you’ll have just one call to make if you need help on the road, you may prefer roadside assistance coverage.

Your Car

If your car is new or it’s well-maintained and the chances of a breakdown are slim, you may decide you don’t need to pay for roadside assistance coverage.

If your car is still under warranty, it may cover the cost of some roadside repairs. And if you have collision or comprehensive coverage through your auto insurance policy, towing costs may be paid in some circumstances.

Your Family’s Needs

If your car is an older model that isn’t exactly reliable or you have some first-time drivers in the family, and you want to feel confident they’ll know who to call (besides you) if they run into trouble on the road, consider getting new drivers’ roadside assistance coverage for the whole family.

Value

You may want to compare the costs of having a roadside assistance plan with the potential out-of-pocket expenses for a tow or other services. Can you afford a plan that fits your needs and budget? Can you afford not to have coverage? Keep in mind that if you use your plan just once, it may pay for itself for the year.

Recommended: Auto Insurance Terms, Explained

The Takeaway

When the unexpected happens on the road, you can wing it and call for a tow truck. Or you can contact roadside assistance and feel confident that someone will come help you out as soon as possible. What’s more, some or all of the cost of getting your car back on the road could be covered under your plan.

Many drivers consider roadside assistance a good deal for the money: The cost of just one tow is often more than the annual cost of roadside assistance. If you travel a lot or have young children or new drivers in the family, roadside assistance may be what you need.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

What is emergency roadside assistance good for?

Roadside assistance coverage can help you deal with and pay for a range of unexpected costs you might run into while on the road. These can range from fixing a flat tire on site to towing you to a repair shop for major repairs.

Is emergency roadside assistance worth it?

No one likes paying for something they may never use. But if your car breaks down just once, the convenience and savings you get through your roadside assistance plan may make it worth paying the annual cost.

What is the difference between emergency towing and roadside assistance?

Roadside assistance coverage is meant to help you get the service you need when you have car trouble — on the road or at a repair shop. Depending on the problem, roadside assistance may cover all or a portion of the costs. On the other hand, emergency towing is meant to get your car off the road and to a repair shop where it can be fixed. Generally, you can expect to pay for all the costs related to this service.

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Photo credit: iStock/sefa ozel

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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.

SOPRO-Q126-057

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Flat tires are one of the top reasons motorists call roadside assistance. Even when you know how to change a tire yourself, calling roadside assistance can be a good move. If you’re stuck on a dark or busy road or you have kids in the car, roadside assistance is safe and fast.

Roadside assistance plans are available from your car insurance provider, car rental companies, and other sources. We’ll explain how roadside assistance works, how much it costs for it to change a tire, and what else the service covers.

What Is Roadside Assistance?

Roadside assistance coverage is designed to help motorists experiencing a range of problems, from a dead battery to an overheated engine. You can call a toll-free number or use an app to contact your provider, and a dispatcher will send a qualified technician to your location. Depending on the services you require, your plan may cover all or part of the costs involved in getting your car back on the road.

You may be able to get roadside assistance coverage as part of your auto insurance policy. There are also auto clubs that sell subscription plans, or you may have a plan through your car warranty, credit card, car rental company, or another source.

If you’re one of many people who sit down annually for a personal insurance planning session, discuss this option with your insurer.

Recommended: Car Insurance Terms Explained

What Are the Benefits of Roadside Assistance?

Having a specific point of contact anytime you’re in need is arguably the top benefit of having roadside assistance coverage. This is especially important for first-time drivers. Instead of making multiple calls to find help from a nearby mechanic or garage, you can program your provider’s number into your phone or store it in your glove compartment with other relevant papers. If your provider offers an app, you can take advantage of that convenience.

With one call, you can get useful advice on what to do next. After assessing your situation, the dispatcher will get the appropriate service person out to help you. If your car can’t be fixed on site, you can get a tow to a repair shop — and that cost may be covered as well.

Some plans offer benefits such as posting bond if you’re charged with a traffic violation or reimbursing you if you’re away from home and have to stay in a hotel overnight. Plans also may provide discounts on oil changes, car rentals, hotels, and other perks. However, extra benefits may come at an additional cost.

Recommended: How Much Does Insurance Go Up After an Accident?

What Does 24-Hour Roadside Assistance Cover?

All roadside assistance programs are not the same, so it’s important to understand the coverage details and limitations of each plan you may be considering.

A plan may offer free fuel delivery, for example, for drivers who run out of gas, but typically there will be a charge for the gasoline received. Similarly, a plan may offer free lockout assistance, but a driver can expect to be charged if the locksmith has to make a new key. And there is usually a limit on how many miles a car can be towed for free.

Some plans limit the number of service calls you can make in a year. Plans can also have different rules regarding when a driver is or isn’t covered. With some plans, for example, you must be driving your own car when you call for assistance. But some plans will cover you even if you’re the passenger or driver in someone else’s car.

Programs generally include some type of coverage for the following.

1. Changing a Flat Tire

If you have a usable spare tire, your service provider likely can change a flat or blown tire on site. If not, they can tow you to someone who can help.

2. Vehicle Towing

If your vehicle can’t be safely repaired or restarted on site, roadside assistance can tow it to a nearby repair shop.

3. Battery Jump-Start or Replacement

Roadside assistance can give your dead battery a jump-start and, if that doesn’t work, tow you to a repair shop to get a new battery installed.

4. Lockout Assistance

If you’ve locked your keys in your car, roadside assistance can get a locksmith to help. Even if you’ve lost your keys, the service may be able to get you back in your vehicle and back on the road.

5. Winching Service

Your service provider may bring in a winch to extricate your car if it’s stuck in mud, ice, or a ditch.

6. Fuel Delivery

If you run out of gas, your provider can deliver fuel to your location. And if the battery in your electric car needs a charge, you can ask for a tow to the nearest charging station.

7. Quick-Fix First Aid

If you have a minor mechanical problem that can be fixed quickly, it may be possible to do so on-site. If not, the service can tow your car to a nearby repair shop.

Recommended: How to Lower Your Car Insurance

Auto Insurance Companies That Offer Roadside Assistance

Insurance companies that provide roadside assistance typically offer these services as an add-on to an auto policy. If you aren’t sure whether you already have roadside protection, contact your agent or log in to your account on your insurer’s website to get information about your coverage. The information may also appear on your insurance card.

If your car is damaged after an accident or in a flood or fire, your auto policy’s collision or comprehensive coverage may apply to your towing costs. But this is not the same as having roadside assistance or towing and labor coverage.

Here are a few insurance companies that offer roadside assistance.

Allstate

Allstate offers its 24-hour roadside assistance programs to both policyholders and non-policyholders. Costs and coverage vary based on the plan you choose.

Geico

Geico’s roadside assistance program is available to policyholders as an add-on, and it covers most of the basics other plans offer. The cost is determined by the number of vehicles you want to cover.

Liberty Mutual

To access Liberty Mutual’s 24-hour assistance program, which offers basic roadside services, you must purchase optional towing and labor coverage as an add-on to your policy.

Nationwide

Nationwide offers roadside assistance as an optional add-on for policyholders. The plan covers the same basic services offered by other insurers, but optional features and other program details may vary by state.

Progressive

Emergency roadside assistance for flat tires is available as an optional add-on for Progressive auto insurance policyholders. Progressive’s program covers service basics such as towing, jump-starts, flat tires, and lockout assistance.

State Farm

State Farm’s roadside assistance program is an add-on for policyholders. If you have this coverage and need assistance, State Farm will be billed directly for any basic services you receive, so you may not have to worry about turning in your receipts and waiting to be reimbursed.

How Much Does Roadside Assistance Cost for a Flat Tire?

The cost to get your flat tire fixed may depend on if you have a usable spare tire and other factors. If you have a good spare tire available, the roadside assistance technician may be able to change your tire on site and get you right back on the road at no charge.

If, for some reason, the tire can’t be changed on site and your vehicle must be towed to a repair shop, the tow charge will be based on mileage. Many roadside assistance plans will go 15 miles or to the nearest qualified repair shop for free. But if you ask to be towed to a shop that’s farther away, you may have to pay for any extra mileage.

When your car arrives at the repair shop, you can expect to be charged if you need any parts, repairs, or a new tire.

How Much Does Roadside Assistance Cost Without Insurance?

The most inexpensive way to get roadside assistance coverage is usually to have it included as an add-on through your auto insurance policy. Allstate, for example, offers its Roadside Advantage plan membership without an Allstate auto policy, starting at $89 for the first year.

If your insurer doesn’t have 24-hour roadside assistance, or if you don’t like the plan your insurer is offering, you may want to check out online insurance companies to see what’s available based on your budget and needs.

How to Change a Flat Tire Yourself

Even if you have roadside assistance coverage, it can be a good idea to know how to fix a flat tire — just in case you forget your phone or can’t get cell service when you run into trouble.

If no one ever taught you how to change a tire, you might want to practice sometime when you’re in a safe place and you’re not in a hurry or wearing nice clothes. There are plenty of YouTube videos on the topic, or you can ask someone who knows their way around a car for a demonstration.

Here are a few tire-changing basics.

1. Drive Prepared

Make sure your spare is in good shape and your jack, lug wrench, and owner’s manual are always in your car. You might want to keep rain gear, work gloves, a flashlight, and wheel wedges in your trunk as well.

2. Safety First

If you suspect your tire is flat, turn on your hazard lights and pull off to the side of the road — as far as you can. Once you’ve stopped, you can put on your parking brake and get out to inspect your car. If you do indeed have a flat, secure your tires with wheel wedges or a couple of large stones.

To change a rear tire, place the wedges before the front tires. To change a front tire, place the wedges behind the rear tires.

3. Remove the Hubcap or Wheel Cover

Consult your owner’s manual for instructions on removing the hubcap or wheel cover.

4. Loosen the Lug Nuts

Turn the lug nuts counterclockwise with your lug wrench. Getting them started may require some effort. Loosen the lug nuts about a quarter- to half-turn, but don’t take them off completely.

5. Put the Jack in Place

Check your owner’s manual for specific placement instructions.

6. Use the Jack to Raise the Vehicle

Carefully raise your car until the flat tire is about 6 inches above the ground.

7. Unscrew the Lug Nuts and Take off the Tire

Remove the lug nuts completely and put them in a safe place (a cup, envelope, hat, purse, etc.). Pull the flat tire toward you until it comes free and place it on the ground on its side.

8. Put on the Spare

Grab the spare tire and place it on the hub by lining up the rim with the lug bolts. Push gently until you can see the lug bolts through the rim.

9. Put the Lug Nuts Back in Place

Put the lug nuts back on the lug bolts and tighten them by hand.

10. Lower the Car and Tighten the Lug Nuts Again (and Again)

Lower the vehicle until the tire is touching the ground, but don’t let it down all the way yet. Tighten the lug nuts with the wrench as tightly as you possibly can, then lower the car all the way to the ground and remove the jack. Tighten each lug nut again with the wrench to be sure they’re all as secure as possible. Replace the hubcap (only if you can and want to), or put it in the trunk with the flat tire.

11. Stow Your Stuff

Congratulate yourself for being prepared, and be sure you put everything back in the trunk before you pull away. If you have a tire gauge, check to see if the spare has plenty of air (temporary spares typically require 60 psi). If the pressure is low, drive with caution to the nearest repair shop.

12. Get Your Damaged Tire Repaired

Spare tires aren’t meant to be driven on for long. Get your car to a tire shop or garage as quickly as possible to buy new tires or get your old tire patched.

Should You File an Insurance Claim?

It can be convenient and less expensive to purchase roadside assistance coverage as an add-on to your car insurance policy. But keep in mind that when you use your insurer’s plan — even for a flat tire — it can count as an insurance claim.

Though occasional use likely won’t cause your insurer to drop you or raise your auto insurance rates, if you make several roadside assistance claims over a short period, it could affect your overall policy. You might want to ask your insurance agent if multiple roadside assistance claims could be a problem (and get it in writing if the answer is no).

Do Insurance Policy Deductibles Apply to Roadside Assistance Claims?

Even with roadside assistance coverage, you could end up having to pay some out-of-pocket costs. And if your auto insurance policy has a deductible that applies to roadside assistance claims, you might have to pay that amount as well. This could be another topic to cover with your insurance agent. Read more about the different types of deductibles.

The Takeaway

Roadside assistance can cover a range of problems you might have on the road — from fixing a flat tire to unlocking the car to jump-starting the battery.

Insurance companies typically offer roadside assistance as an add-on to an auto policy. Plans may look pretty much the same from one company to the next, but it can be a good idea to look beyond the basics to find the level of coverage and other benefits that are a good fit for your needs and budget.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

SoFi brings you real rates, with no bait and switch.

FAQ

What should I do if my tire is flat?

If you know how to change a tire and you can pull off the road to a safe place, you might want to tackle the job yourself. But if you aren’t prepared to DIY, you can call roadside assistance instead. A technician may be able to change your tire on site and get you back on the road as part of the service covered by your policy.

Will 911 help with a flat tire?

If your tire is flat and you’re in potential danger or blocking traffic, the safest move is to turn on your flashers and call 911 for assistance. The 911 dispatcher will then assess your situation and determine whether to send help. If you don’t feel you’re in danger or that your car has become a hazard to others, you can call your roadside assistance company’s toll-free number for help.

Can you drive a couple of miles on a flat tire?

Driving on a flat tire, even for a short distance, can further damage the tire and possibly the rim. If you can turn on your hazard lights and drive slowly to a safer location, that may be your best option, but you should try to limit the distance you travel.

How much does it cost to put on a spare tire?

If you have roadside assistance coverage, it may not cost you anything to have your flat tire replaced on site with your spare. Depending on your policy or coverage level, you may be charged for repairs or towing fees if the tire can’t be fixed on site.

Should you tip roadside assistance for a flat tire?

There’s no obligation to tip any service provider your roadside assistance plan sends to help you. However, just as with any service, if you feel that person went above and beyond, you may want to show your gratitude with a tip.

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Photo credit: iStock/okugawa

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

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.

SOPRO-Q126-061

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