InvestPar Archives

Apr

2025

Tips for Teaching Your Kids About Investing

By Kim Franke-Folstad | Family Finances, Growing Wealth, Investing | No Comments

Many parents are thinking about financial literacy in a new light. Money has always been complicated, but the world of digital transactions and ready credit has made it even more so. But because personal finance classes in schools may not be required, it’s largely up to parents to help their kids become money savvy.

Parents can try to set their kids on the right path by teaching them the investment basics you wish you’d learned when you were young. Here are some actionable, age-appropriate tips for teaching your kids about investing.

Key Points

• Financial literacy primarily falls on parents, as few states mandate personal finance education in schools.

• Savings accounts offer safety but limited growth; investments are higher risk but may grow faster.

• Diversification involves spreading money across different investment types to manage risk.

• Online games and apps can educate and engage children in investing without using real money.

• Compound returns can be illustrated using calculators and the Rule of 72.

Set the Stage: From Saving to Investing

If your children have their own savings accounts, or even a piggy bank, you’re off to a good start. But at some point, you can start introducing more advanced financial topics (with examples whenever possible). Every kid is different, so you’ll have to gauge your children’s interest and comprehension. These are some concepts to discuss.

Risk vs Reward

Conventional wisdom says that the riskier the investment, the higher the payout. But the opposite is also true. The riskier the investment, the more you can lose.

Explain to kids that unlike a savings account, which is safe but grows money slowly, an investment account usually carries more risk, so it may grow faster but it also may lose money.

Diversifying Investments

Even a young child should be able to understand diversification by the phrase “Don’t put all your eggs in one basket.” When teaching older kids, you can give examples of different types of investments — stocks, bonds, mutual funds, real estate, and other investments — and explain the role each might play in a portfolio.

Supply and Demand

The stock market is generally driven by supply and demand. If more investors demand to own stocks, the market rises. If there are more sellers than buyers, the market falls. As an example, you might be able to talk about how the price of a hard-to-get toy drops over time, or how clothes get cheaper when they’re out of season.

Researching Investments

If you have children who love to look up things online, why not make the most of that interest and skill set? Ask them about the companies they think might be a good investment, and then check out the reality. (Some of their favorite brands may be privately traded, so that’s another conversation you can have.)

Older kids can look for news stories that summarize analysts’ reports.

Gaming and the Market

Another way to get older kids interested in investing? Let them learn and practice trading with an online game or app. There are many options out there, including animated games that give kids a goal and ask them to make investment choices about getting there.

Play Follow the Market

Once your kids understand a little bit about how the stock market works, you can begin following the markets together and track how they’d do if they were actually invested in a particular stock, for example. Older kids might like to create an online watch list of their favorites on finance sites where they can watch market movements without risking actual cash.

Go Buy the Book

It might sound like a pretty old-school way to explain investing to kids, but there are books out there that include plenty of illustrations, fun language, and important lessons, including these:

What All Kids (and Adults Too) Should Know About … Savings and Investing, by Rob Pivnick, covers saving, budgeting and investing.

Go! Stock! Go!: A Stock Market Guide for Enterprising Children and Their Curious Parents, by Bennett Zimmerman, follows the Johnson family as they learn the fundamentals of stocks and bonds, the mechanics of investing, and the ups and downs of risk and reward.

I’m a Shareholder Kit: The Basics About Stocks — For Kids/Teens, by Rick Roman, is a spiral-bound book that was last updated in May 2018 and is designed to appeal to kids who want to know about investing and managing their money.

💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.

Make It Real With a Custodial Account

If you want to give kids a taste of what investing is like, you can open a custodial account and either make some picks yourself or let your children do the choosing.

Custodial accounts give kids financial visibility but limited responsibility because they are not allowed access to the account’s money or assets. In almost all cases, the parent is responsible for managing the money until their child reaches adulthood.

Many discount brokers offer investment accounts for kids online. Some brokers have also introduced hybrid products for teens that allow them to save money, spend, and invest all in one place with the supervision of their parents.

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What to Invest in

One way to make the lesson more meaningful might be to think about the things that are important to the kids at each stage of life and pick a stock that represents it. (The company that makes their favorite snacks, for example, a top toy brand, or a clothing label.)

As your children get older, they can have more input, and you can talk about how dividends work, the power of compounding returns, and what it means to buy and hold. If your kids can’t decide between two companies, they can work together to research the better choice.

Recommended: What Does Buy & Hold Mean?

It’s important to note that there are pros and cons to creating investing portfolios for minors, so you’ll likely want to check out any consequences related to future taxes and when the child applies for financial aid for college.

Discuss Compounding Returns

Want to show your kids the magic of compounding interest? The Compound Interest Calculator on the Securities and Exchange Commission’s Investor.gov website is easy to use and understand. Just plug in an initial amount, how much you expect to add each month, and the interest rate you expect to earn. The calculator will chart out an estimate of how much your child’s initial deposit would grow over time.

To take it a step further, you can teach your children to use the “Rule of 72” to compare different types of investments. According to this rule, money doubles at a rate where 72 is divided by the percentage gain. So, if your child is looking at an investment that returns 4% annually, it will double in 18 years, or 72 divided by 4.

Share Your Own Family’s Adventures in Investing

Whether it’s a success story or a cautionary tale, kids can learn a lot from their family history. For example, in a conversation about the value of investing and goal-setting, you could talk about how your parents and grandparents made and saved their money vs. how it’s done today. Focus on storytelling instead of lecturing, and encourage questions to keep kids involved.

The Takeaway

There are many ways to introduce kids of all ages to the concept of investing. The simplest one is to share with them your own investing history and perspectives. Beyond that, use websites, videos, books, and other tools — including a custodial account, if you want — to illustrate the how-tos, dos, and don’ts of investing.

Keep it fun, and don’t forget to share some of your own goals and financial plans with your kids. Kids learn by participating in real life. Someday your adult children might be telling tales around the dinner table about how your lessons helped advance their financial savvy.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

¹Opening and funding an Active Invest account gives you the opportunity to get up to $3,000 in the stock of your choice.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

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.

¹Claw Promotion: Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.

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Apr

2025

Paying Off Student Loans as a Single Parent

By Melissa Brock | Family Finances, Student Loans, student_loan | Comments Off

Beginning August 1, federal student loan holders who are enrolled in the SAVE Plan will see interest accrue on their student loans, but payments are still suspended. Eligible borrowers can apply for and recertify under the Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE) Repayment Plans, as well as Direct Consolidation Loans. Many changes to student loans are expected to take effect July 1, 2026. We will update this page as information becomes available. To learn the latest, go to StudentAid.gov.

Almost one quarter of American children are being raised in a single-parent household, according to the US Census Bureau, Almost 80% are headed by single mothers.

As you might guess, single-parent households may have less financial resources than those with two parents. And if you’re trying to make ends meet for yourself and your child (or kids), it can be hard to stick to your student loan payment plan.

So how can you pay off your student loans as a single parent? This guide can help. You’ll learn about many of the options available. The information you’re about to read can help you make the best choice for handling student loans.

What Are Student Loans?

A student loan is money you borrow for educational expenses, which you must pay back with interest. Loans are unlike scholarships, which are “free money” that you don’t have to pay back.

There are two main types of student loans: federal and private loans.

• Federal loans: Federal student loans are loans that you borrow from the federal government, or the Department of Education, to pay for college.

◦ Subsidized student loans are awarded on the basis of student need. The government absorbs some of the interest payments on the loan, making it a better deal for students. Typically, the borrower begins to pay these loans back after a six-month grace period post-graduation.

◦ Unsubsidized loans, on the other hand, don’t involve the government shouldering some of the interest payments, and interest can begin to accrue while the student is in school.

• Private loans: Private loans come from private organizations, such as banks or credit unions. Interest rates are often determined by creditworthiness, which can make them more or less affordable than federal loans depending on your situation.

💡 Quick Tip: Often, the main goal of student loan refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing makes sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections.

Student Loan Solutions for Single Parents

The most important thing to remember is that you have several options as a single parent when deciding how to handle student loans. Below, you’ll get details on parent loan forgiveness, deferral and forbearance, increasing your income, public assistance, scholarships, and refinancing your student loans.

This advice can also be helpful if you’re thinking about paying student loans and starting a family at the same time.

1. Single Parent Loan Forgiveness

While there’s no program that exists explicitly called “single parent student loan forgiveness,” there are some income-driven repayment (IDR) plan options. You won’t have to pay your remaining balance under all four plans if your loans aren’t fully repaid at the end of the indicated repayment period.

There are four different IDR plans (only for federal loans) you can apply for give you a monthly payment based on your income and family size:

• Saving on a Valuable Education (SAVE) Plan: The new SAVE Plan considers your income and family size to determine your monthly payment. Your payments may be based on a smaller portion of your adjusted gross income (AGI) and are typically designed so that no one with an undergraduate loan has to pay more than 5% of their discretionary income towards their student debt. The government may cover the interest accrued monthly and can keep your balance from growing. The plan typically lasts 20 years for loans received for undergraduate study and 25 years for loans received for graduate or professional study.

• Pay As You Earn (PAYE) Repayment Plan: The PAYE Plan is a repayment plan with monthly payments about equal to 10% of your discretionary income, divided by 12. Typically, those who can use this plan will never pay more than the 10-year Standard Repayment amount. The term is usually 20 years with PAYE.

• Income-Based Repayment (IBR) Plan: The IBR Plan is a repayment plan with monthly payments equal to about 15% or 10% (after July 1, 2014) of your discretionary income, divided by 12. With this plan, a student pays loans 20 years if they’re a new borrower on or after July 1, 2014, or 25 years if they’re not a new borrower on or after July 1, 2014.

• Income-Contingent Repayment (ICR) Plan: You’ll pay for 25 years with the ICR Plan. The ICR Plan assigns monthly payments based on the lesser of:

◦ Your repayment plan payment with a fixed monthly payment over 12 years, adjusted based on your income, or

◦ Twenty percent of 20% of your discretionary income, divided by 12.

• You may also take advantage of the Public Service Loan Forgiveness (PSLF) Program, which means that if you work for an eligible nonprofit or government organization, you may qualify the remaining balance on Direct Loans after 10 years — 120 monthly payments — under a repayment plan like the ones above for single mom student loan forgiveness.

On the topic of forgiveness, note that President Biden’s targeted student loan forgiveness plan was struck down by the US Supreme Court in June of 2023 and therefore does not offer an avenue to reduce student loan debt.

2. Student Loan Deferral and Forbearance

Single parents may consider applying for student loan forbearance or deferral, meaning that you temporarily qualify for a suspension of your loans. But what’s the difference between the two?

• In deferment, interest doesn’t accrue on certain loans.

• Interest does accrue on all loans during a forbearance.

It’s worth mentioning that forbearance changes went into effect in fall of 2023, after there had been a pause since March 2020, as the pandemic unfolded. Student loan interest accrual restarted on September 1, 2023, and payments were once again due starting on October 1, 2023.

In addition to economic hardship, single parents may be able to get a deferment for reasons related to:

• Cancer treatment

• Graduate fellowship programs or half-time school enrollment

• Military service or post-active duty service

• Parent PLUS borrower with a student enrolled in school

• Rehabilitation training program

• Unemployment.

Note that you can only apply deferral and forbearance toward federal student loans, not private student loans. Log in to the Federal Student Aid website to learn more about and apply for various plans under the Department of Education.

3. Increase Your Income

Single parents may consider adding to their income to help make student loan payments or to have extra income on hand. Beyond picking up extra hours at your current job or asking for a raise, you may want to consider picking up a side hustle, renting out an extra room in your house, going back to school to get a better job, or looking for a new job. There are myriad ways to increase your income, especially since you only have one income stream.

Also consider various ways to budget as a single parent.

4. Public Assistance

Public assistance may be one way to help you reserve a pool of money specifically to pay for necessities, including student loan payments.

Public assistance can come in many forms, including food benefits (SNAP, D-SNAP, and WIC for women, infants, and children), home benefits (rental, home buying, and home repair assistance programs), help with utility bills, Temporary Assistance for Needy Families (TANF), health insurance, and disability benefits.

Every state has specific rules about who can qualify for various benefits. Learn more about benefits from your
state social service agencies.

5. Scholarships

If you’re thinking about returning to school as a single parent to increase your income, consider applying for scholarships. This free source of money for college keeps you from having to borrow money for college.

Where do scholarships come from? They can come from the college or institution where you plan to attend, clubs and organizations, your employer, and other sources. Also consider asking your current employer whether they can help you pay for college through educational benefits, such as an employee tuition reimbursement program.

6. Refinance Your Student Loans

When you refinance your student loans, you “repackage” your private and/or federal student loans with a private lender with the goal of lowering the interest rate or accessing a lower monthly payment via an extended repayment term. (Note that if you do extend the term of the loan, you may pay more interest over the life of the loan.)

Also note that you cannot refinance your student loans under the federal student loan program. If you do refinance with a private loan, you will forfeit benefits and protections of federal loans, like IDR payments. To qualify for the best refinance rates, you’ll typically need to have a solid credit history and stable income.

If you currently have private student loans or are thinking of refinancing, shop around to see what offers best suit your situation and your needs.

Helping Pay Student Loans for Single Parents

Certain websites highlight ways single parents can pay for education, including grants and scholarships. For instance, the website SingleMothersGrants.org mentions such resources as:

• Soroptimist International

• The Amber Foundation

• Kickass Single Mom Grant from Wealthy Single Mommy

• Idea Cafe

• Halstead Grant

• Wal-Mart Foundation’s Community Grant Program

• The Andy Warhol Foundation for the Visual Arts.

Be cautious that you don’t fall prey to fake scholarships; sadly, they do exist. You should never have to pay money to enter a scholarship competition, for example. Nobody intentionally wades into the financial mistakes parents make, so do be wary when looking into ways to finance educational expenses and avoid scammers.

Refinancing Student Loans With SoFi

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.

FAQ

Do single moms qualify for student loan forgiveness?

Yes, single moms can qualify for student loan forgiveness through two main programs: Public Service Loan Forgiveness (PSLF) and income-driven repayment programs. To find out if you qualify for either one of these programs, apply or contact your loan servicer directly for more information.

How do single moms pay off student loans?

If single moms can’t make their student loan payments, they can access various programs through the Federal Student Aid program for federal loans. They can also ask their private lender for more options available to them. Refinancing of both federal and existing student loans is also possible; just know that if you refinance a federal loan with a private loan, you forfeit federal benefits and protections. Also, if you extend the period of loan repayment when refinancing, you may pay more interest over the life of the loan.

Is paying off a student loan considered a gift?

If someone else pays off your student loans, yes, it is considered a gift. This type of gift would churn out a gift tax for any gift above $17,000, the gift exclusion cutoff for 2023. In other words, both parents can contribute $34,000 per calendar year toward a child’s student loans without getting charged a gift tax.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/Drazen Zigic

SoFi Student Loan Refinance
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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.

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Apr

2025

6 Scholarships for Moms: How Can Moms Pay for College?

By Melissa Brock | Family Finances, Student Loans, student_loan | Comments Off

When you want to improve your income potential or change your career to offer your kids more opportunities, you’ll have to manage a myriad of responsibilities — possibly with a full course load to boot. Going back to college can demand a lot from moms physically, mentally, and financially.

The financial impact of going back to school as a mom can seem staggering, so consider scholarships for moms as one way to make an impact.

Keep reading to learn more on scholarships for moms, scholarships for single moms, and scholarships for working moms. We’ll also walk through how to find these scholarships and look into other ways of paying for college.

Key Points

• Scholarships are available specifically for moms, including single and working mothers, to help alleviate the financial burden of returning to school.

• Eligibility for scholarships often includes being an independent student, which may require meeting specific criteria such as age, marital status, and having dependents.

• Various scholarships exist, such as the Soroptimist’s Live Your Dream Award and the Patsy Takemoto Mink Education Foundation, targeting low-income mothers pursuing education.

• Companies may offer educational benefits such as scholarships or reimbursement for employees, making it worthwhile for working moms to inquire about available opportunities.

• In addition to scholarships, completing the FAFSA can open doors to federal grants, loans, and work-study options to further assist in funding education.

Who Is Eligible for Scholarships?

Almost anyone can get a scholarship, but you must meet the eligibility requirements set forth by the scholarship guidelines. Some scholarships will require students to be independent students. Independent students are defined by the U.S. Department of Education as those who are:

• At least 24 years old

• Married

• Graduate or professional students

• Veterans of the U.S. armed forces

• Active duty members of the armed forces

• Orphans, those in foster care, or wards of the court

• People who have legal dependents other than a spouse

• Emancipated minors

• Homeless or at risk of becoming homeless

However, non-governmental organizations may have other requirements. Therefore, it’s important to take a look at the qualifications for each individual scholarship.

Types of Scholarships for Moms

Nontraditional students interested in receiving financial aid should first submit the Free Application for Federal Student Aid (FAFSA®). Colleges and universities will receive the results of the FAFSA and use that information to inform their aid decisions. The FAFSA is the first step in applying for federal financial aid, including grants, federal student loans, work-study, and other institutional aid. These could help you offset the cost of tuition and other education-related expenses. The FAFSA must be filled out each year the student is enrolled in school.

Other scholarships may require you to apply independent of the FAFSA — that is, the results of the FAFSA may not matter. However, many mom scholarships may require you to prove that you earn a low income. (Low-income thresholds depend on the size of your family and number of children, according to the United States Census Bureau.)

You can tap into many types of scholarships for moms, including single mom scholarships, scholarships for working moms, and other types of scholarships for women going back to college, as outlined below.

Single Mom Scholarships

Yes, organizations offer scholarships for single moms! Take a look:

Soroptimist’s Live Your Dream Award

If you provide the primary financial support for yourself and your dependents, you can qualify for the Soroptimist’s Live Your Dream Award, as long as you show evidence of financial need. You must also enroll or be accepted into a vocational/vocational skills training program or undergraduate degree program and be motivated to achieve your education and career goals.

Applicants must live in one of the following Soroptomist territory countries: Argentina, Bolivia, Brazil, Canada, Chile, Colombia, Ecuador, Guam, Japan, Korea, Mexico, Northern Mariana Islands, Palau, Panama, Paraguay, Peru, Philippines, Taiwan, United States of America, or Venezuela.

Award amount: $1,000 to $10,000
Deadline: Application open from August 1 to November 15

Patsy Takemoto Mink Education Foundation for Low-Income Women and Children Education Support Awards

The Patsy Takemoto Mink Educational Foundation for Low-Income Women and Children
Education Support awards offer college scholarships for single moms to low-income women with children who are pursuing education or training.

The criteria for the award state that you must:

• Be a woman at least 17 years of age.

• Be a mother with minor children.

• Pursue your first degree at a post-secondary education level (vocational, associate’s, bachelor’s, master’s, or doctoral degree) — this degree must add to the level of education accomplished (such as a bachelor’s degree after an associate’s degree or an advanced degree after a bachelor’s degree).

• Pursue a degree or credential at an institution that does not discriminate on the basis of sex/gender, LGBTQ+ status or identity, race or ethnicity, religion, disability, or immigration status.

• Enrolled in a nonprofit, accredited institution or program in the U.S.

• Be low-income (earn less than $20,000 total in family income for a family of 2, less than $24,000 for a family of 3, or less than $28,000 for a family of 4).

Awardees are selected based on financial need, personal circumstances, educational path, vocational and occupational goals, service/activist, and/or civic goals.

Award amount: $5,000
Deadline: Information about the 2024-25 application will appear in May 2024.

Rosenfeld Injury Lawyers LLC Single Mother Scholarship

Rosenfield Injury Lawyers LLC offers two scholarships to single mothers returning to school, one for a single mother who will attend an undergraduate or community college program and another for a single mother who will attend accredited law school.

To qualify, you must write a 500+-word essay about the advantages of returning to school while raising children and how motherhood has prepared you for the challenges of becoming a student. You must also:

• Submit a copy of your transcript that displays your grade point average (GPA) — unofficial transcripts are accepted.

• Authorize Rosenfeld Injury Lawyers LLC to post the material on its website and social media channels.

You may use the scholarship money for education-related expenses, including tuition and registration, textbooks, and other fees and supplies.

Award amount: $1,000
Deadline: TBD for the 2024-25 academic year

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

Scholarships for Working Moms

If you’re a working mom, you may want to first consider your current job’s scholarship opportunities. Some companies offer scholarships and/or education reimbursement for their employees.

Company foundations usually create scholarship programs for employees, employees’ children or relatives, or the children of deceased or retired employees. While not necessarily just geared toward working moms, they can still provide a major financial benefit of working and going to school. Visit your company’s human resources for more information about scholarships or other educational assistance you can qualify for. Note that some companies allow employees to take advantage of their education benefits right away, but yours may require you to work at your company for a specified length of time.

Take a look at the scholarship below, geared specifically for working moms.

Job-Applications.com Working Parent College Scholarship Award

Working parents currently in college or another accredited postsecondary educational institution can qualify for the Job-Applications.com scholarship by meeting specific criteria. You must:

• Be enrolled as a part-time student who is in an accredited U.S. post-secondary educational institution (college, university, or trade school, or a similarly accredited program).

• Have a current cumulative grade point average of 3.0 or higher at that institution.

• Have worked an average of at least 12 hours for each of the previous four weeks during the application process.

• Be a residential parent of at least one minor child.

• Be a legal U.S. resident.

• Be at least 18 years of age or older.

You must also submit a 600- to 1,000-word essay about the keys for balancing parenthood, working, and succeeding in college.

Award amount: $1,000
Deadline: TBD for the 2024-25 academic year

Scholarships for Moms Going Back to College

Moms pursuing graduate work may also need help finding grad school scholarships.

Society of Women Engineers Scholarship Program

Those who identify as a female/woman and who study at a community college, bachelor’s or graduate degree program with the intention of preparing for a career in engineering, engineering technology, or computer science may qualify for the Society of Women Engineers Scholarship Program .

To qualify, you must:

• Plan to study at an undergraduate/community college or plan to get your master’s or Ph.D. at an ABET-accredited program.

• Major in engineering, technology, or computing.

• Must attend full time (though exceptions are made for reentry and nontraditional applicants).

• Not be fully funded for tuition, fees, books, or the equivalent.

Award amount: $1,000 to $10,000
Deadline: TBD for the 2024-25 academic year

Chrysalis Scholarship

The Chrysalis Scholarship , funded by the Association for Women Geoscientists, helps women who experienced an interruption in their education due to raising children or other life circumstances and need financial help to obtain their graduate degrees in a geoscience-related field thesis or dissertation. The scholarship may cover drafting expenses, child care, defense travel, late-stage research and analyses, and more.

To qualify, you must:

• Be a graduate student who has had an educational interruption due to life circumstances.

• Approach the completion of your geoscience degree.

• Plan to contribute to the geosciences and the larger world community.

Application materials include a letter of application in which you describe your background, career goals, and objectives, how you plan to use the scholarship, and the nature and length of the education interruption. You must provide letters of reference from your thesis/dissertation advisor and another scientist of your choice.

Award amount: $2,000
Deadline: TBD for the 2024-25 academic year

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.

Applying for Scholarships for Moms

When you’re applying for scholarships, it’s important to get organized. Make a list of due dates on your calendar and estimate how much time it’ll take you to complete each application. Research scholarships early so you don’t miss out on scholarship opportunities.

Read the eligibility guidelines carefully. Contact the organization sponsoring the scholarship if you have specific questions related to eligibility. Some scholarships may not get many applicants, so if you meet almost all the requirements, ask if you can apply anyway. You might be pleasantly surprised to find that the committee or organization will allow you to apply.

Finally, follow all the instructions. Stick to the word limit for the essay and send supporting materials as requested.

Finding Other College Scholarships for Moms

Put your feelers out for every type of scholarship that might apply to you — they don’t even need to be strictly “mom-related.” If you qualify in another way, such as for your interest in zoology or criminology, keep those options open. Look into the following sources for scholarships, as well:

• Colleges and universities: Colleges and universities offer many different types of scholarships and grants. Make an appointment with an admission counselor and/or the financial aid office to learn more about scholarships you can apply for at each institution you’re interested in attending.

• Charity organizations: Look into organizations in your community, such as the local Rotary Club. You just might scoop up a few scholarships based on the organizations you know. Ask around!

• Professional organizations: What do you plan to major in? Check to see if professional organizations of your chosen industry offer scholarships and grants. It’s also possible to get internships and careers from these professional organizations right out of the gate after graduation.

Recommended: How to Pay for College

Other College Financing Methods

You might need other sources of financial aid to close the cost gap after scholarships for college are factored in. Generally, the first step, as mentioned, is filling out the FAFSA. The FAFSA is completely free and offers other financial aid beyond scholarships, including need-based and non-need-based federal financial aid.

Other options for paying for college include:

• Federal grants: Students who demonstrate financial need may qualify for federal grants. You do not need to pay these back. For example, you could qualify for a Federal Pell Grant or the Teacher Education Assistance for College and Higher Education (TEACH) Grant. Take a look at the eligibility requirements to determine whether you qualify.

• Federal student loans: You may qualify for federal student loans through the U.S. Department of Education and through the William D. Ford Federal Direct Loan Program. Direct Unsubsidized Loans are non-need-based, while Direct Subsidized Loans are awarded to students who demonstrate financial need.

• Private student loans: Federal student loans, scholarships, and other funding sources may not fully cover the cost of attendance for students. In that case, students may tap into private student loans. However, private student loans do not have the same benefits or borrower protections as federal student loans (like deferment options or the ability to pursue certain federal loan forgiveness programs). For this reason, private student loans are generally pursued only after all other options have been thoroughly considered.

Recommended: Types of Federal Student Loans

The Takeaway

Scholarships for moms going back to college is one way to help fund your degree. You can find scholarships by asking your college or university about their options, looking into your local community, asking professional organizations in your field, and using an online scholarship search tool. Other options for paying for college include federal student loans, grants, and work-study.

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

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

About the author

Melissa Brock

Photo credit: iStock/Portra

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

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

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

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

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

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

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Apr

2025

Student Loans: Refinance vs. Income Driven Repayment

Refinancing Student Loans vs Income Driven Repayment Plans

By Melissa Brock | Debt Payoff, Fresh Out of School, Student Loans, student_loan | Comments Off

If you’re having trouble making your student loan payments or just want to know if you can make a change to your payments, it’s worth looking into the options, such as refinancing student loans or an income-driven repayment plan.

Student loan refinancing is available for both private and federal student loans, while income-driven repayment plans are an option only for federal student loans. Recent changes to income-driven repayment lower monthly payments and curtail interest accrual, making the plans a better deal for borrowers. Here’s what to know about both options as well as the pros and cons of each.

What Is Student Loan Refinancing?

When you refinance a student loan, a private lender pays off your student loans and gives you a new loan with new terms. For example, the interest rate and/or the loan term may change. You can’t refinance loans through the federal government, however. You can only refinance federal student loans (or private student loans) through a private lender.

If you’re a graduate with high-interest Direct Unsubsidized Loans, Graduate PLUS loans, and/or private loans, a refinance can change how quickly you pay off your loans and/or the amount you pay each month.

💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

Pros of Student Loan Refinancing

When considering refinancing your student loans, there are several benefits. You can:

• Lower your monthly payments: Lowering your monthly payment means you can save money or spend more in other areas of your life instead of putting that cash toward paying student loans. (Depending on the length of the loan term, however, you may end up paying more in total interest.)

• Get a lower interest rate than your federal student loan interest rates: This can result in paying less interest over the life of the loan (as long as you don’t extend your loan to a longer term). A student loan refinance calculator can show you the interest rate you qualify for.

• Decrease your debt-to-income ratio (DTI): Your DTI compares your debt payments to your income. So if you lower your monthly payments, you could be lowering your DTI ratio — and a lower DTI can help when applying for a mortgage or other type of loan.

• Remove a cosigner. Many borrowers who took out undergraduate loans did so with a parent or other cosigner. Refinancing without a cosigner allows you to regain some financial independence and privacy, provided you have a strong credit history.

Cons of Student Loan Refinancing

That said, refinancing federal loans can have some drawbacks as well. They include:

• No longer being able to take advantage of federal forbearance: When you refinance your student loans through a private lender, you no longer qualify for federal student loan forbearance, such as the Covid-19-related payment holiday. However, it’s worth noting that some private lenders offer their own benefits and protections after you refinance.

• No longer being able to tap into income-driven repayment plans, forgiveness programs, or other federal benefits: Refinancing federal student loans means replacing them with private loans — and forfeiting the protections and programs that come with them.

• Possibly seeing your credit score get dinged: Your lender may do a hard credit history inquiry (or pull), which can affect your credit score.

For a deeper dive into the topic, check out our Student Loan Refinancing Guide.

What Are Income Driven Repayment Plans?

Put simply, income-driven repayment plans are plans that base your monthly payment amount on what you can afford to pay. Under the Standard Repayment Plan, you’ll pay fixed monthly payments of at least $50 per month for up to 10 years. On the other hand, an income-driven repayment plan considers your income and family size and allows you to pay accordingly based on those factors — for longer than 10 years and with smaller loan payments. Income-driven repayment plans are based on a percentage of your discretionary income.

You can only use an income-driven repayment plan for federal student loans. If you qualify, you could take advantage of four types of income-driven repayment plans:

• Saving on a Valuable Education (SAVE) Plan: You typically pay 5% of your discretionary income over the course of 20 years (on loans for undergraduate study) or 10% of your discretionary income for 25 years (on loans for graduate or professional school).

• Income-Based Repayment Plan (IBR Plan): As a new borrower, you typically pay 10% of your discretionary but never more than the 10-year Standard Repayment Plan amount over the course of 20 years. If you’re not a new borrower, you’ll pay 15% of your discretionary income but never more than the 10-year Standard Repayment Plan amount over the course of 25 years.

Two other plans, PAYE and Income-Contingent Repayment, stopped accepting new enrollments as of July 1, 2024.

How do you know which option fits your needs? Your loan servicer can give you a rundown of the program that may fit your circumstances. You must apply for an income-driven repayment plan through a free application from the U.S. Department of Education.

Note: Every income-driven plan payment counts toward the Public Service Loan Forgiveness Program (PSLF). So if you qualify for this program, you may want to choose the plan that offers you the smallest payment.

Pros of Income Driven Repayment Plans

The benefits of income-driven repayment plans include the following:

• Affordable student loan payments: If you can’t make your loan payments under the Standard Repayment Plan, an income-driven repayment plan allows you to make a lower monthly loan payment.

• Potential for forgiveness: Making payments through an income-driven repayment plan and working through loan forgiveness under the PSLF program means you may qualify for forgiveness of your remaining loan balance after you’ve made 10 years of qualifying payments instead of 20 or 25 years.

• Won’t affect your credit score: This may be one question you’re wondering, whether income-based repayment affects your credit score? The answer is: no. Since you’re not changing your total loan balance or opening another credit account, lenders have no reason to check your credit score.

Cons of Income Driven Repayment Plans

Now, let’s take a look at the potential downsides to income-driven repayment plans:

• Payment could change later: The Department of Education asks you to recertify your annual income and family size for payment, which is recalculated every 12 months. If your income changes, your payments would also change.

• Balance may increase: Borrowers under the IBR plan receive a three-year interest subsidy from the government. However, after the subsidy expires, borrowers are responsible for paying the interest that accrues on subsidized and unsubsidized loans.

• There are many eligibility factors: Your eligibility could be affected by several things, including when your loans were disbursed, your marital status, year-to-year changing income, and more.

Refinancing vs Income Driven Repayment Plans

Here are the factors related to refinancing and income-driven repayment plans in a side-by-side comparison.

	Refinancing	Income-Driven Repayment Plan
Lowers your monthly payments	Possibly	Possibly
Changes your loan term	Possibly	Yes
Increases your balance	Possibly	Possibly
Is eventually forgiven if you still haven’t paid off your loan after the repayment term	No	Yes
Requires an application	Yes	Yes
Requires yearly repayment calculations	No	Yes

Choosing What Is Right for You

When you’re considering whether to refinance or choose an income-driven repayment plan, it’s important to take into account the interest you’ll be paying over time. It could be that you will pay more interest because you lengthened your loan term. If that’s the case, just make sure you are comfortable with this before making any changes. Many people who refinance their student loans do so because they want to decrease the amount of interest they pay over time — and many want to pay off their loans sooner.

That said, if you’re wondering whether you should refinance your federal student loans, you’ll also want to make sure you are comfortable forfeiting your access to federal student loan benefits and protections.

Refinancing Student Loans With SoFi

Refinancing your student loans with SoFi means getting a competitive interest rate. You can choose between a fixed or variable rate — and you won’t pay origination fees or prepayment penalties.

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

FAQ

Is income-contingent repayment a good idea?

This plan may be a good idea for some borrowers because the repayment terms are based on the lesser of these two: 20% of your discretionary income or a fixed payment over the course of 12 years, adjusted according to your income over the course of 25 years. Any remaining balance will be forgiven if you haven’t repaid your loan in full after 25 years. Because of the longer repayment timeline, the drawback is borrowers may pay more over time. It also won’t provide payments as low as the SAVE Plan.

What are the disadvantages of income based repayment?

The biggest disadvantage of income-based repayment is that you stretch out your loan term from the standard repayment plan of 10 years to longer — up to 25 years. This means that more interest will accrue on your loans and you could end up paying more on your loan before your loan term ends.

Does income based repayment get forgiven?

Yes! Through the Public Service Loan Forgiveness (PSLF) program, student loans can be forgiven after making 10 years of qualifying, consecutive payments. Additionally, borrowers with an income-driven repayment plan may have the remaining balances on their loans forgiven after 20 or 25 years.

About the author

Melissa Brock

Photo credit: iStock/m-imagephotography

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Apr

2025

Is the Average College Tuition Rising? 2024 Price of College

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

Between 2000 and 2021, the average published tuition and fees increased from the following amounts, after adjusting for inflation, according to Best Colleges:

• $2,146 to $3,564 at public two-year schools

• $5,638 to $9,596 at public four-year schools

• $25,468 to $37,222 at private nonprofit four-year institutions

This article will cover the average cost of college tuition and fees in 2024, the increase in college tuition costs, the reasons for the rise of average college tuition, and college tuition options you may want to consider for yourself.

Key Points

• College tuition continues to rise, with the 2023–24 average hitting $11,260 for public in-state, $29,150 for public out-of-state, and $41,540 for private four-year schools — all up from the prior year.

• Key drivers of rising tuition include reduced state funding, growing administrative costs, expansion of campus facilities, increasing faculty salaries, and greater demand for student services.

• Total college costs have climbed across all school types, increasing 135% since the 1960s, with private institutions seeing the largest spike (187%). Room, board, books, and supplies have also become significantly more expensive.

• Students finance college through a mix of aid, including scholarships, grants, federal and private loans, work-study, and personal or family savings.

• Private loans may help bridge funding gaps, but students are encouraged to exhaust federal aid options first due to the loss of protections like income-driven repayment and loan forgiveness with private loans.

Average Cost of College in 2023-24

In 2023-24, the average published price for tuition and fees for full-time undergraduate students were as follows, according to the College Board’s Trends in College Pricing and Student Aid:

• $11,260 for public four-year in-state institutions, $270 higher than in 2022-2023

• $29,150 for public four-year out-of-state institutions, $850 higher than in 2022-2023

• $3,990 for public two-year in-district institutions (including average community college tuition), $100 higher than in 2022-2023

• $41,540 for private nonprofit four-year institutions, $1,600 higher than in 2022-2023

Recommended: Average Cost of College Tuition

Increase in College Tuition Cost Over the Last 10 Years

Generally speaking, tuition has increased in the past decade. According to data from the College Board, the average published tuition price at a four-year nonprofit university during the 2013-2014 school year was $30,094, while in 2023-2024 that number jumped to $41,540.

Reasons for the Rise of Average College Tuition

The rise of college tuition over the past few decades can be attributed to several key factors, including:

Reduced State Funding

One of the primary reasons for rising tuition costs, especially at public institutions, is the decline in state funding for higher education. As states allocate less money to colleges and universities, these institutions often compensate by increasing tuition to cover budget shortfalls.

Increased Administrative Costs

Colleges have expanded administrative staff and services, including student support, campus amenities, and compliance with federal regulations. This growth in administrative functions adds to overall expenses, which are often passed on to students in the form of higher tuition.

Expansion of Campus Facilities

Many colleges invest in new buildings, state-of-the-art facilities, and upgraded dormitories to attract prospective students and remain competitive. These capital expenditures are expensive and often lead to increased tuition to help finance the construction and maintenance of these facilities.

Rising Faculty Salaries and Benefits

The cost of faculty salaries and benefits, including health care and retirement plans, has risen steadily. As colleges strive to attract and retain top talent, these increased personnel costs contribute to higher tuition.

Student Demand for More Services

There is a growing demand from students for more comprehensive services, such as mental health counseling, career advising, and extracurricular activities. Providing these additional services requires funding, which often results in tuition hikes to cover these enhanced offerings.

Together, these factors create a complex landscape where college tuition continues to rise, making affordability a significant concern for many students and families.

Recommended: How to Pay for College

Total Cost of College Over Time

While the cost of tuition has increased over the years, the prices of room and board, books, school supplies, and other necessities have also risen. The cost of room and board has almost doubled since the 1960s, going from $6,700 to more than $12,000, according to Best Colleges.

On Campus vs. Off Campus

How much you spend on college will vary depending on whether you live at home, on campus, or off campus. The College Board found that the cost of living on campus has increased slightly faster than the cost of living off campus, such as in an apartment or house with friends.

Total Cost of College Over Time by School Type

Of course, the type of school you attend (public or private) will also affect the total cost of attendance. Over the last nearly 60 years, the average cost across all institutions has increased 135%. It increased the most at private institutions at 187% and the least at two-year colleges, at 69%.

College Financing Options

Numerous college financing options exist for students. Students can tap into various options to pay for costs. Undergraduate students received an average of $15,480 of financial aid 2022-2023, according to the College Board’s Trends in College Pricing and Student Aid.

Students may rely on scholarships, grants, work-study, and student loans, in addition to personal savings to pay for their education.

Scholarships

Scholarships refer to money received from colleges or other organizations that students don’t have to pay back. Only about 7% of students receive scholarships, with the average student who receives one getting $14,890 annually at a four-year institution.

Student Loans

Students can take advantage of federal or private loans. Federal loans are provided by the U.S. Department of Education. To apply for a federal student loan, students need to fill out the Free Application for Federal Student Aid (FAFSA®) each year.

Private student loans are provided by banks, credit unions, and other financial institutions. These are separate from any sort of federal aid, and as a result, lack the protections afforded to federal student loans — like income-driven repayment options or the ability to apply for Public Service Loan Forgiveness. For this reason, private student loans are generally considered by students only after they have reviewed and exhausted all other options for financing.

Recommended: How to Complete the FAFSA Step by Step

Grants

Students can tap into federal, state, or institutional grants. Grants can also come from employers or private sources. Like scholarships, grants typically do not need to be repaid. They are mostly awarded based on financial need, and students will generally need to complete the FAFSA to qualify for them.

Work-Study

Students can get a work-study award, which is money they must earn when they attend college. They must file the FAFSA in order to qualify for work-study and must work a job on campus to receive the money.

Personal Savings

According to Sallie Mae’s annual How America Pays for College 2024 report, 37% of students receive help from their parents to pay for college, and 11% use their own income and savings. Strategies for parents paying for college include things like setting up an account designed to help parents save for college or other educational expenses, putting work bonuses or tax refunds into savings, and setting aside funds each month to put toward college.

The Takeaway

The average college tuition continues to increase. In 2000, the college tuition at a private four-year institution was $15,470, and now in 2024 it’s $38,421. There are a number of reasons for increasing tuition rates, including factors like a decrease in state funding, lack of regulation, and an increase in operating costs at colleges and universities.

Many students rely on financial aid to pay for college. Financial aid includes federal student loans, certain grants and scholarships, and work-study programs.

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

How much has college tuition increased since 2000?

Since 2000, college tuition has significantly increased, jumping about 65% between 2000 and 2021. This surge reflects growing education costs, which have outpaced inflation and wage growth, making higher education increasingly expensive and contributing to the student loan debt crisis faced by many graduates.

How much has the total cost of college increased over the last decade?

Over the last decade, the total cost of college, including tuition, fees, room, and board, has increased by about 10% at public institutions and around 19% at private institutions. This rise reflects growing expenses in education and living costs, making college significantly more expensive for students and families.

How much has college tuition increased in 2024?

In 2024, college tuition increased by 1.6% over the last 12 months. However, this number will vary depending on the institution and whether it is public or private. These increases are consistent with the ongoing trend of rising education costs, impacting students’ financial planning and contributing to higher student loan borrowing.

About the author

Melissa Brock

Photo credit: iStock/MicroStockHub

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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