Serving the country could serve your bottom line. The Army, Navy, Air Force, Coast Guard, and National Guard offer programs for repaying part or all of your student loans, if you qualify.
In this guide, you’ll learn about military student loan forgiveness and other repayment relief options.
• Military branches offer student loan repayment assistance programs that can cover significant portions of student loans for eligible members who commit to specific service terms.
• The Army, Navy, Air Force, Coast Guard, and National Guard have distinct programs, with potential repayments reaching up to $65,000 depending on the branch and commitment length.
• Various programs exist specifically for health professionals and certain military roles, providing substantial repayment assistance, sometimes exceeding $40,000 annually.
• Additional benefits for service members include interest rate caps and waivers on student loans while deployed in hazardous areas, enhancing financial relief during active duty.
• While military forgiveness options exist, some programs require careful navigation of eligibility criteria, and refinancing may impact access to federal repayment benefits.
Does the Military Pay Off Your Student Loans?
It might, but you must choose to work in specific military specialties, score at least 50 on the Armed Services Vocational Aptitude Battery, and commit to years of duty.
Here are repayment programs offered by the different military branches.
Military College Loan Repayment Program
Military enlistees, and some already enrolled members, can receive student loan repayment (LRP) assistance of up to $65,000 for a three- or six-year commitment. Federal student loans and even some private student loans may be forgiven.
To qualify for the LRP programs, you cannot have previous military experience. You must choose to work in one of the military occupational specialties that the military branch is seeking. And many of the programs will require withdrawal from the GI Bill program.
Army Student Loan Repayment: Active Duty
The Army’s Loan Repayment Program is offered to highly qualified applicants enlisting for at least three years. If you meet the eligibility requirements, the Army will pay up to 33.33% of your current principal balance, or $1,500, whichever is greater, per year served. The maximum in loan assistance is $65,000.
Army Reserve College Loan Repayment Program
For this Reserve repayment program, you must enlist for at least six years. The Army will repay 15% of your outstanding principal balance or $1,500, whichever is greater, after each year of service. The total can’t exceed $20,000.
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National Guard Student Loan Repayment Program
To qualify for the National Guard Student Loan Repayment Program, you must enlist for at least six years. You could earn up to $7,500 each year of the incentive term, or up to $50,000 in total student loan repayment.
Navy Student Loan Repayment Program
The Navy will pay 33.33% of the principal balance of a borrower’s federal student loans or $1,500, whichever is higher, for each year of service, up to three years.
The Coast Guard offers new members who commit to three years of service up to $10,000 in loan repayment each year after the first year of active service. The maximum assistance is $60,000.
Health Professions Student Loan Repayment Program
This Army program eases the student debt of doctors, dentists, and other health care professionals who are on active duty or in the Army Reserve. Borrowers can get up to $40,000 of their student loans repaid annually. The maximum assistance is $120,000.
Then there’s the Air Force Financial Assistance Program, for medical and dental residencies. You may receive more than $45,000 for every year you participate in the program plus a stipend of more than $2,000 per month to cover living expenses. Upon completion of your residency, you will have a one-year obligation for each year of participation, plus one extra year.
Prior Service Soldier Loan Repayment Program
Members of the Army Reserve with prior military service who re-enlist in the Army National Guard may receive up to $50,000 for student loan repayment.
Air Force Judge Advocate General’s Corps Loan Repayment Program
Eligible judge advocate generals (JAGs) can apply for up to $65,000 in student loan repayment. After you have completed the first year as a JAG officer, payments are made directly to lenders for three years.
💡 Quick Tip: When rates are low, refinancing student loans could make a lot of sense. How much could you save? Find out using our student loan refi calculator.
Other Loan Forgiveness Programs for Military Personnel
National Defense Student Loan Discharge
Active-duty soldiers who have served in hostile fire or imminent danger pay areas for at least one year are eligible for cancellation of their federal Perkins Loans.
A borrower may see 100% of their loan principal, plus interest, canceled for a five-year term of service that began on or after Aug. 14, 2008.
Veterans Total and Permanent Disability Discharge (TPD)
Veterans can qualify by providing documentation from the VA that shows they received a VA disability determination.
Public Service Loan Forgiveness
In the Public Service Loan Forgiveness program, borrowers who serve full time in the military or who have gone on to other types of public service, including in government agencies, nonprofits, and public health organizations, may have federal student loan balance discharged after making 120 qualifying payments).
To be eligible, you must work for a qualifying employer and have eligible loans, including most federal Direct loans.
Other Student Loan Benefits for People in the Military
Interest Rate Cap
Under the Servicemembers Civil Relief Act, the interest rate on any debt incurred before enlisting in the military, including both federal and private student loans, is capped at 6% while you’re on active duty.
Interest Waiver for Those at Dangerous Posts
The Department of Education announced in late 2021 that Under the Higher Education Act, service members deployed to areas that qualify them for imminent danger or hostile fire pay would have no interest accrual on certain federal student loans that were first disbursed on or after Oct. 1, 2008.
The Takeaway
Military student loan forgiveness is possible if you clear a number of hurdles. But you might still need to pay at least a portion of your loans while you’re enlisted and after you resume civilian life.
For many people, refinancing student loans can be a way to get a lower interest rate or a lower monthly payment, especially with a solid credit and employment history. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)
Refinancing allows you to take out a new loan, with new terms, and use it to pay off your existing federal or private student loans. While doing so can have advantages, if you refinance federal; loans you lose access to federal programs like Public Service Loan Forgiveness and income-driven repayment plans, and some of the military-specific loan repayment assistance.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
Does the VA forgive student loans?
The Department of Veterans Affairs has a student loan repayment program for employees in certain occupations. You may be eligible to receive up to $10,000 per year, with a maximum of $60,000, toward the debt.
The VA also offers the Education Debt Reduction Program for health care providers who serve veterans. Up to $200,000 in student loan repayment is offered over a five-year period.
How much student loan debt will the military pay?
The exact amount the military will pay in student loan debt depends on the military branch a borrower is serving in. The Army and Navy repay up to $65,000. The Coast Guard pays up to $60,000 in student loan debt, while the National Guard pays up to $50,000.
Do 100% disabled veterans pay student loans?
A veteran who is declared totally and permanently disabled may be able to qualify for a TPD discharge with the proper documentation from the VA. After receiving the discharge, the borrower is typically not required to repay federal student loans.
SoFi Student Loan Refinance Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
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.
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.
Jobs that help pay off a portion of student loans have become more common and for a good reason. The average federal student loan borrower has over $38,000 in student loan debt, while borrowers with private student loans owe more than 41,000, on average, according to the Education Data Initiative.
Companies that help to repay a portion of student loans are still in the minority, however, so you may have to do some research to get student loan assistance as a benefit. To help you, here’s what to know about jobs that help pay off student loans, companies that offer this perk, and what you can do to try and negotiate for it.
• More and more companies in the U.S. are offering student loan assistance programs
• Some careers, such as healthcare, law, public service, and education offer repayment assistance programs or student loan forgiveness programs, typically in return for service commitments.
• A number of major companies offer employees help in repaying their student loans, including Hulu, New York Life, and SoFi.
• Student loan borrowers who receive student loan assistance may owe taxes on some canceled debt.
• When interviewing for a job that doesn’t offer student loan repayment assistance, individuals can try to negotiate the benefit into their total compensation.
Types of Job-Based Student Loan Assistance Programs
There are two types of student loan assistance you may receive through an employer: repayment assistance programs where your employer is a participant and repayment assistance benefits your employer offers funds to the employee or the employee’s loan servicer directly.
Repayment Assistance Programs
Depending on your career field, you may be eligible to receive student loan assistance or student loan forgiveness through a federal or state program. There are several programs for those working in public service careers, like the Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness programs, which cancel existing balances for eligible borrowers who meet certain requirements.
That said, these programs typically require you to commit to working in a specific job or a certain area (such as medicine, law, or military service, for example) for a set number of years, which can be challenging if you don’t enjoy the job or want to pursue a different career path somewhere else.
But if you fulfill your service obligation, you may get as much as your full student loan balance forgiven.
According to data from the International Foundation of Employee Benefit Plans, 14% of employers in the U.S. offered student loan repayment assistance as a benefit in 2024 — up from 4% in 2019.
The terms of repayment assistance benefits can vary by employer. For example, some may offer to match a portion of the employee’s payments and others may simply pay a set amount toward an employee’s loan balance each month.
The amount you receive from a repayment assistance benefit may be less than what you might get through a government repayment assistance program. But you may not need to commit to a service obligation to qualify, and you may be able to negotiate how much you’ll receive.
Types of Jobs That Offer Student Loan Forgiveness
In order to qualify for certain types of loan forgiveness, borrowers may need to meet certain employment requirements. Here are some of the jobs that could potentially allow someone to qualify for federal student loan forgiveness programs.
1. Federal Agency Employee
The federal student loan repayment program exists for employees of the federal government, and allows a portion of their federal student loans to be paid off each year. The benefit permits for up to $10,000 in payments each calendar year, not to exceed a total of $60,000 for any one employee.
In order to qualify for this student loan repayment assistance, the employee is required to sign onto a minimum three-year contract with the agency. If they leave the agency early, they’ll need to repay any benefits received.
2. Public Service Worker
If you work full-time in the public service sector for a qualifying organization, such as the government or a non-profit, you may qualify for Public Service Loan Forgiveness (PSLF).
To pursue PSLF, borrowers need to have Direct loans and be enrolled in an income-driven repayment plan. (If you have other types of federal loans, such as Perkins loans, you’ll need to consolidate them into a Direct Consolidation Loan to qualify.) Forgiveness is awarded after making 120 qualifying payments and certifying all employers.
3. Medical Field
The Association of American Medical Colleges maintains a database with information on loan assistance programs for doctors by state.
Medical professionals who work in certain underserved areas may also qualify for loan forgiveness through the National Health Service Corps Loan Repayment Program. In this program, medical professionals must commit to working for at least two years at an NHSC-approved site in a Health Professional Shortage Area (HPSA).
Refinancing medical school student loans may be another option to consider for medical professionals who are not pursuing any loan forgiveness programs. Refinancing could potentially allow borrowers to secure a more competitive interest rate, if they qualify. Just be aware that refinancing federal loans makes them ineligible for federal forgiveness programs and other programs and protections.
4. Automotive Professionals
Professionals in the automotive industry may qualify for loan forgiveness through the Specialty Equipment Market Association (SEMA) Loan Forgiveness Program. To be eligible, you must work for a SEMA member business and have at least $2,000 in outstanding debt, among other qualifications.
5. Lawyer
In addition to PSLF, there are other lawyer-specific programs that provide assistance to lawyers paying off student loan debt. These include the Department of Justice Attorney Student Loan Repayment Program and the John R. Justice (JRJ) Program.
6. Teacher
Student loan forgiveness for teachers is available. Teachers who work in special education are considered highly qualified teachers or work in underserved areas may qualify for the Teacher Loan Forgiveness Program. The amount of loan forgiveness available is dependent on the teacher’s area of specialty and can be either up to $17,500 or up to $5,000.
7. Peace Corps
Peace Corps volunteers may be eligible to defer their loans or pursue PSLF. Additionally, while on a qualifying repayment plan, payments could be as low as $0 per month while volunteering.
8. Veterinarian
Veterinarians who work in underserved areas may qualify for up to $40,000 in student loan repayment assistance through the U.S. Department of Agriculture’s Veterinary Medicine Loan Repayment Program. Eligible veterinarians must agree to serve in a NIFA-designated veterinarian shortage situation for a period of three years to qualify.
15 Major Companies that Repay Student Loans
Hundreds of large and small employers offer jobs that pay off student loans, but it’s not always easy to find out which ones provide the benefit. To help you get started, here are 15 well-known companies that repay student loans.
1. Abbott Laboratories
The company’s Freedom 2 Save program functions a bit differently than other repayment assistance benefits in that it combines efforts to pay off student loan debt and save for retirement.
Full- and part-time employees who qualify for the company’s 401(k) plan and contribute at least 2% of their eligible pay toward student loan repayment will receive a 5% contribution to their 401(k) account. Employees aren’t required to contribute to their 401(k) to receive these funds.
2. Aetna
In addition to a tuition reimbursement program, healthcare company Aetna also matches student loan payments for eligible employees who meet certain requirements. For full-time employees, the program matches student loan payments up to $2,000 per year, with a lifetime maximum of up to $10,000 for qualifying loans.
3. Ally Financial
Financial services company Ally provides $100 per month toward student loan payments, with a lifetime maximum cap of $10,000. Employees also receive a monthly $100 contribution to a 529 plan with a $10,000 lifetime maximum.
4. Chegg
Education company Chegg has paid out more than $1 million toward employee student loan debt through its Equity for Education benefit. For entry-level employees through manager level, those who have worked at the company for at least 2 years receive up to $5,000 annually. Employees at the director or vice-president level can receive up to $3,000 annually.
5. Estee Lauder
The beauty company provides employees with $100 per month in student loan assistance, up to a lifetime maximum of $10,000.
6. Fidelity
As a full-time employee of the investment brokerage firm, you may be eligible to receive up to $15,000 toward your student loan payments.
7. Google
Google matches up to $2,500 in loan payments per employee each year.
8. Hulu
Streaming service Hulu pays up to $1,200 a year per employee who has been at the company for at least one year to help pay off their student loans, up to $6,000.
9. Live Nation
Entertainment company Live Nation Live Nation matches employee contributions of up to $100 per month, or $1,200 a year. The lifetime maximum is $6,000 in benefits. Employees must be employed with the company for at least six months to qualify.
10. New York Life
New York Life’s student loan assistance program contributes $170 per month toward student loans that are in good standing. Employees can receive up to $10,000 while enrolled in the program.
11. Nvidia
As a Nvidia employee, you can receive up to $350 a month toward your student loan payments. The lifetime cap is $30,000 in assistance. To be eligible, you must be a full-time or part-time U.S. employee working 20 hours or more per week.
12. Penguin Random House
Penguin Random House offers eligible employees $100 a month toward their student loans.
13. PricewaterhouseCoopers (PwC)
As a participating associate or senior associate, you can receive $1,200 in student loan payments each year with a maximum benefit of $7,200.
14. SoFi
As an employee with SoFi, you’ll get $200 each month in student loan repayment assistance.
15. Staples
Eligible employees for the Staples student loan assistance program include active, full-time U.S. associates with at least one outstanding loan obligation. Participants must also have obtained or are in the process of receiving a degree from an accredited institution. The company pays $100 per month toward loan principal for 36 months.
How Is Student Loan Assistance Taxed?
If you receive student loan assistance or cancellation, it’s important to understand the tax consequences. Depending on the situation, you could be responsible for a tax bill.
The IRS typically considers canceled debt to be taxable income. That includes most student loan debt forgiveness or discharge, except for PSLF. However, the American Rescue Plan Act of 2021 exempts borrowers who are working toward loan forgiveness from having their forgiven balances taxed if their loans were discharged between January 1, 2021, and December 31, 2025. This only applies to federal taxes, though, and some states may still require forgiven student loans to be taxed as income.
As for employer-sponsored assistance programs, a temporary pandemic-era provision allows employers to contribute up to $5,250 per year in tax-free funds toward qualified education costs for employees. Any contributions above that amount are considered taxable income for the employee. However, this special tax treatment expires December 31, 2025, after which any amount of employer payments or reimbursements for education expenses or student loan repayment will be taxed as income.
Negotiating a Student Loan Repayment Benefit
If you’re looking for a job, keep an eye out for companies that repay student loans as an employee benefit. If you can’t find one, you can still try to negotiate the benefit into your total compensation. Here are some ways to do it.
Doing Your Research
Resources such as Payscale and Glassdoor can help give you an idea of the salary and benefits that may be available from various companies. Look at what the company you’re interested in typically offers as well as what you might get with a similar position somewhere else.
If anything, this process can give you a better idea of what you’re worth. But it will also give you a benchmark that you can use to negotiate for student loan repayment benefits, along with other aspects of your compensation.
Making Your Interests Clear
Helping a potential employer understand why student loan repayment is important to you can help set the stage for the entire conversation.
In addition to salary, employers can consider several other factors to make up your total compensation. So knowing what’s most important to you can help them make a more attractive offer.
Asking for a Signing Bonus Instead of Monthly Payments
While a signing bonus isn’t specifically designed as a student loan repayment benefit, you can use it that way. In fact, making a lump sum payment toward your student loans could help you accelerate your student loan debt repayment timeline.
Asking for the Opportunity to Revisit the Request in the Future
If you can’t manage to persuade a potential employer to provide you with student loan assistance, that may not be the end of it. You could ask for the chance to talk about your compensation again in six months or a year.
During that time, you may be able to prove to your employer that it’s worth the investment on their part. Or you may have planted a seed for the employer to create a student loan repayment benefit for all employees.
Making Student Loan Repayment a Priority
Whether or not you can find jobs that pay off student loans, you can still make it a priority to eliminate your student debt as quickly as possible. A student loan repayment assistance benefit can help you achieve that goal, but it can’t do it on its own.
As such, it’s essential to consider other options to save money, such as refinancing your student loans. While refinancing can be a helpful option for some borrowers, it won’t make sense for everyone, however. If federal student loans are refinanced, they’ll lose eligibility for federal programs and benefits, such as PSLF or income-driven repayment plans.
If you qualify, you may be able to reduce your interest rate or your monthly payment. With a lower interest rate you could potentially save money over the life of your loan.
The Takeaway
Many companies offer student loan repayment assistance as a part of their employee benefits package. Some jobs might also offer the opportunity for the borrower to apply for student loan forgiveness. For example, there are programs available for medical professionals, teachers, and those that work in the government or non-profit sector.
Another opportunity for managing student loans is refinancing, which could allow qualifying borrowers to lower their interest rates — making the loan more affordable in the long run. If you’re interested in refinancing, consider the options available at 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
What careers pay off student loans fastest?
High-paying jobs may help borrowers repay their student loans quickly. However, some jobs may allow borrowers to pursue a loan forgiveness program. While these programs may not expedite the repayment process, they could help make student loan repayment more manageable.
What companies pay off student loans?
Companies including SoFi, Fidelity, Penguin Random House, and Nvidia all offer student loan repayment assistance programs. Specific benefits vary by company.
What kind of jobs qualify for student loan forgiveness?
The type of job that qualifies for student loan forgiveness may vary depending on the program. Jobs in the government or non-profit sector may qualify a borrower for Public Service Loan Forgiveness. Teachers may qualify for Teacher Student Loan Forgiveness programs. Some medical professionals may qualify for programs such as the National Health Service Corps Loan Repayment Program.
SoFi Student Loan Refinance Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
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.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
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If you’re getting ready to apply to college, look on the bright side: It can be a good way to apply the skills you’ve learned in school to get organized and nail this project. It’s also a time to shine and show off your achievements over the past few years.
That said, like any big project, applying to college has many moving parts and can feel intimidating at times. To help you break it down, it can be wise to use a college application checklist. Doing so can help you stay on track as you move ahead with navigating the next step in your education.
What follows is just that: a college application checklist and details on how to apply to the schools you’re interested in. As you’ll see, it can all boil down to five key steps.
• Organizing a college application system is essential for staying on top of deadlines and requirements, including setting up folders for each school.
• Standardized test scores may not be required by many colleges; however, checking individual school requirements is necessary before deciding to take them.
• Collecting letters of recommendation should begin early, allowing ample time for writers to craft personalized letters that reflect the student’s achievements.
• Completing the FAFSA is crucial for accessing federal financial aid and scholarships, and it should be submitted as early as possible to maximize funding opportunities.
• Staying engaged in school and maintaining good grades during the application process is important, as colleges will review final transcripts before making admissions decisions.
Tips for Getting Organized
Before you dive into your to-do list, take some time to get organized. Applying for college can definitely be complicated and time-intensive. Creating a system, including a college application checklist, can help prevent important details and dates from slipping through the cracks.
Before you start printing out forms and stashing brochures, label a folder for each school and list important information on the front, such as:
Choose a single system to monitor all submissions and deadlines, and make sure your parents can also access the information.
One method of organization could be to file the folders by deadline dates rather than school names to ensure you get all documents to each school on time.
Keep copies of important documents, such as recommendation letters and student housing information, in each folder. Most early decision or early action deadlines are in November, while regular decision applications are usually due in January.
Make a note of any schools that have extra forms or a particular department within the college that has its own set of requirements. The university likely has a list of scholarship deadlines, which may be different from its application deadline.
College application deadlines tend to be set in stone, and admission officers may even frown upon those who wait till the last minute to submit their applications. It can be helpful to set reminders on your phone, computer, or the kitchen calendar.
Schedule reminders for at least a month before the real deadline so there’s plenty of time to ask questions, make adjustments, and get your application in well before the deadline. This can help you avoid that night-before-the-deadline discovery that you are missing a form.
Consolidate tasks whenever possible. If you need a recommendation for an extracurricular activity for two different schools, don’t ask the softball coach and the band conductor. Pick one and ask for a reference letter that can be easily customized for both schools.
Even the simplest college application is typically made up of multiple forms. You can use a physical filing system or cloud-based storage to store forms, recommendation letters, and more. As you gather materials, divide everything into folders for each college and label PDFs with short, descriptive names (MusicRecommendation, not “scan008877605.pdf”).
💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
College Application Checklist
Your college application checklist should look similar to what follows:
• Create a filing system for schools organized by the application deadline
• Set reminders for application deadlines
• Gather test scores (SAT®, ACT®, etc.) if prospective schools require them
First on your college application process checklist is to consider whether you need standardized test scores. A majority of colleges and universities no longer require standardized tests like the SAT and ACT for school applications — check with the schools you plan to apply to. If you want to play it safe and you have the time, you may want to take the test just in case.
Generally, students must register for tests about a month in advance. It will take a couple of weeks for scores to be distributed, and colleges receive scores about 10 days after students. So if your college application deadline is in January, you should schedule your test by October. Perhaps you’ll want to take it earlier if you want to give yourself enough time to retake the test if you’d like to try to get a higher score.
2. Request Letters of Recommendation
Next on your college application requirement checklist: Many colleges request two to three letters of recommendation. According to the College Board, these should be “written by someone who can describe your skills, accomplishments, and personality.” It’s wise to ask people who know you well and are enthusiastic about this prospect. Consider requesting an extra letter or two in case a recommender misses the deadline or backs out at the last minute.
When asking for a recommendation letter, keep in mind that teachers and coaches are usually very busy and likely being asked by multiple students. If possible, give them at least a month to write a reference letter. Really, the earlier the better. Some schools require recommendations from teachers in specific subjects, so be mindful of specific requirements.
3. Check for Special Deadlines
You’ll want to consider other deadlines as well, such as applications for special dorms, department-level scholarships, registering for summer activities, and more. These things can end up coloring the college experience just as much as which university you get accepted to.
In many cases, dorms are available on a first-come, first-served basis. Applying early can help you get the specific type of dorm you want, such as co-ed, separated by gender, or substance-free.
4. Fill Out the FAFSA
While you’re gathering all the information for college, you’ll probably be thinking about how to pay for college. For this item on your college admission checklist, you’ll likely want to start with the FAFSA, the form that parents and students must complete to be eligible for federal student loans and aid. Many colleges also use the FAFSA to decide if a student qualifies for its own grants and scholarships.
A university may offer both need-based and merit-based aid. Need-based aid is determined by a family’s income and circumstances, while merit-based aid is determined by academics, athletics, and other talents. The FAFSA helps colleges determine how much need-based federal aid a student qualifies for.
The FAFSA application is generally available starting in October. Try to apply as early as possible because some financial aid is awarded on a first-come, first-served basis.
A common misconception is that the FAFSA is a one-time deal. In reality, the FAFSA must be filled out every year to account for any changes in income or other circumstances. For example, if one of your parents gets laid off from their job, you might qualify for more need-based aid.
For some students, federal aid (including federal student loans) isn’t enough to cover the full cost of attendance. If that’s the case, it may be time to look into some additional sources of funding.
Some families are able to fill the gap between tuition costs and student aid with savings. Parents may take out loans in their own name to help children pay for college, as well.
Other students are able to pay for a portion of their tuition with scholarships or grants. Scholarships and grants may require applicants to invest some time writing an essay or meeting other requirements. Any funds that are received can be a useful way to cover education costs since they don’t need to be repaid.
There are quite a few scholarship databases you can search to find those that fit your background and interests.
If you’ve exhausted your aid opportunities and are still looking to fill a gap, private student loans are an option to consider. While they don’t come with the same benefits as federal student loans (such as income-driven repayment plans and loan forgiveness options), they can be used to help pay for education expenses.
Unlike most federal student loans, the private student loan application process generally requires a credit check. Some students may find they need a student loan cosigner, which is someone who would be held responsible for the loan in the event the primary borrower fails to make payments.
💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
Stay Engaged in School
Once you’ve completed your college application checklist and your college applications are on their way, your last semester in high school can feel kind of pointless. Not true! Colleges will want to see those grades and know what you’ve been up to. If you’ve lost motivation, are cutting class, or let your grades slide, they’ll know it. And if you’re still taking AP exams, those results can determine whether you get credit for certain college courses.
Stay involved with your classes and send a follow-up letter listing any additional awards and achievements. This is your chance to show off what you’re capable of even when the pressure’s off.
Speaking of pressure, take time to relax — before, during, and after the application process. Plan some fun activities that don’t involve watching your inbox for acceptance letters. And congratulate yourself on making it this far.
The Takeaway
Navigating the college application process can be daunting, but with a well-organized checklist, you can stay on top of all the necessary tasks and deadlines. From gathering transcripts and standardized test scores to crafting compelling essays and securing letters of recommendation, each step plays a crucial role in presenting your best self to prospective colleges.
When it comes time to pay for college, most students rely on a combination of cash savings, grants, scholarships, federal student loans, and 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 are the things needed for a college application?
For a college application, you typically need transcripts, standardized test scores (if required), essays, letters of recommendation, a resume or activity list, and the completed application form. Some colleges may also require interviews or additional supplements.
Are SAT or ACT scores mandatory for college applications?
Not all colleges require SAT or ACT scores for applications. Many institutions have adopted test-optional policies, allowing students to decide whether to submit their scores. However, some schools still mandate these tests, so it’s important to check each college’s specific requirements.
When should students complete the FAFSA?
Students should complete the FAFSA as soon as possible after October 1st of the year before they plan to attend college. Early submission can maximize eligibility for financial aid, including grants and scholarships.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
Tuition-free college sounds like a fantasy. But at some colleges and universities, it is possible for students to qualify to attend without paying tuition costs.
Not all colleges offer free tuition, and some may require students who are receiving free tuition to maintain certain academic standards or meet other requirements. Other colleges may offer a reduced-tuition option for eligible students.
When considering that attending a four-year college can cost tens of thousands of dollars, the appeal of free tuition is obvious. Read on for more details about how free-tuition programs work and an overview of colleges that offer free or reduced tuition.
• Some colleges and universities offer free tuition, often requiring students to meet specific academic standards or other criteria.
• Tuition-free programs may not cover other costs like books, fees, or room and board.
• Service academies provide free education with commitments to serve in the military post-graduation.
• Certain institutions offer free tuition based on family income, with varying thresholds and conditions.
• Exploring tuition-free colleges can significantly reduce educational expenses, though options and eligibility criteria may be limited.
What Is Tuition-Free?
Tuition-free college is where the cost of tuition is covered for eligible students, often through government funding or institutional aid. This can apply to community colleges, public universities, or specific programs, reducing financial barriers to higher education.
There are a limited number of schools that offer free college tuition to students. There are also schools that offer free tuition if your parents earn less than a certain amount of money per year.
Keep in mind that offers of free college tuition often may not include other costs like books, fees, transportation, or room and board. Researching the total cost of attendance at your chosen institution will give you a complete picture of your financial obligation.
Still, tuition is, generally speaking, a huge cost — so not having to pay it could mean huge savings.
Repay your way. Find the monthly
payment & rate that fits your budget.
Why We Need Tuition-Free College
For many families, college is prohibitively expensive. Parents who want to foot the bill for their kids may feel stressed and guilty when they find they can’t afford the cost of college out of pocket, and students themselves may feel the repercussions of the exorbitant cost of school for decades.
Still, there are both pros and cons to consider when deciding whether a tuition-free university is right for you. Here are some things to consider.
💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.
Pros of Free College Tuition
The main pro of free college tuition is saving money. Maybe you had planned on taking out student loans to pay for school. Think of the financial freedom you could enjoy if you didn’t have to spend years paying off student loans after graduation.
Second, free tuition can help make college more accessible for low-income students. If your family can’t financially contribute to your education, and you aren’t willing or able to accumulate educational loan debt, free tuition programs can make college a possibility.
Few colleges offer free tuition to all students, which means your options for schools may be more limited. Some tuition-free programs are competitive. A few of these programs are connected with the U.S. Military and require students to serve after graduation.
Many tuition-free colleges are small, private schools, and a good amount are religion-based. You may want to consider whether these are environments you would enjoy for four years.
Because there are so few schools offering free tuition, attending school may require you to move further away from home. Depending on the student, this could be a pro or con.
Some schools have certain requirements for those who attend and/or receive free tuition, such as participating in a work-study program, maintaining a certain GPA, or living on campus.
Before you apply to a tuition-free program, you’ll want to consider all the pros and cons to decide if the program is right for you.
Schools That Offer Free College Tuition to All Students
Here are 31 tuition-free colleges in the U.S. Fifteen offer free tuition for all students, and 16 offer free tuition to students from low-income families.
The Air Force Academy provides free tuition, room, board, and medical and dental benefits. Students must serve as an officer in the Air Force for at least eight years, and at least five of those years must be in active duty.
The Coast Guard Academy offers students free tuition, room, and board. Students must serve as a Coast Guard officer for at least five years after graduation.
Midshipmen receive free tuition, uniforms, books, room, and board. Basic medical and dental care are also provided by the Academy’s Office of Health Services. However, any healthcare expenses that exceed the provided health plan will need to be covered. Students are also responsible for transportation during leave periods. The Academy recommends applying for student loans if you need help with these expenses. Service obligations after graduation may vary between five and eight years.
Tuition, room, board, and medical and dental insurance are free for West Point students, and they also receive a monthly stipend. Incoming Plebes, as new students are called, have to pay a one-time fee of $8,400 to cover uniforms, books, and other equipment. Graduates are commissioned as Second Lieutenants in the Army. You must serve a minimum of eight years, though that obligation is a combination of Active Duty and Reserve.
The Navy covers students’ tuition, room, board, and medical and dental costs. In return, they must serve in active duty for at least five years after graduation.
This liberal arts college provides free tuition to residents of Central Appalachia, which spans five states including Kentucky, Ohio, Tennessee, Virginia, and West Virginia. Students are required to participate in the Student Work Program , which involves at least 10 hours per week and 160 hours per semester. They must cover expenses other than tuition.
This Christian school provides a scholarship equal to the amount of tuition to students who live on campus. Students must cover the cost of room, board, or other fees.
Berea is a liberal arts school that provides free tuition to all students. In order to qualify, students must come from families with limited resources. The average annual family income of Berea students is less than $32,000. Students, however, pay some costs , including room, board, health and dental care, which add up to about $4,000 per semester. Almost all Berea students (96%) receive Pell Grants to cover those costs.
This Christian liberal arts college provides free tuition for full-time students, provided they participate in the work-study program, which involves 15 hours per week and two 40-hour workweeks per year. Room, board, fees, or books are not included.
The conservatory provides free tuition to undergraduate and graduate students through merit-based scholarships. If students need financial assistance for other fees and living expenses, they can participate in the work-study program.
The highly selective honors college is part of the City University of New York. It provides free tuition to New York state residents who are admitted to the program. Students must maintain a certain GPA during their time at Macaulay, and they are responsible for additional fees including covering room and board.
Warren Wilson is a small, private liberal arts college in North Carolina. Students who qualify for federal and/or North Carolina state-based aid receive free tuition. You must be a North Carolina resident, enroll as a full-time student, live on campus, and participate in the work-study program. If you don’t qualify for free tuition at Warren Wilson, the school is known for providing generous scholarships.
This engineering college provides free tuition to all students and financial aid opportunities to cover additional fees. The school offers only one undergraduate degree: a dual Bachelor of Science in Naval Architecture and Marine Engineering.
This unique two-year college is located on a remote cattle ranch in California. Only 12 to 15 students are admitted each year, and tuition, room, and board are free. Students can apply for additional scholarships if they need help covering other expenses.
This men’s vocational college teaches trades such as carpentry, power plant technology, and masonry. Each student receives the Williamson Scholarship, which is need-based and can be as high as $38,900, which is $140 shy of the school’s estimated costs for tuition, room, board, and annual fees.
Schools That Offer Free or Reduced Income-Based College Tuition
The following schools offer varying amounts of tuition assistance depending on a student’s family income level. Based on the information a student provides on the yearly Free Application for Federal Student Aid (FAFSA®), schools take into account both parent contributions and student contributions to determine financial need.
Offers of free tuition may sometimes mean that the parent contribution is equal to zero, but there may still be an expected student contribution.
Brown fully covers tuition for families earning $125,000 or less. In addition, students of families making less than $60,000 a year will receive scholarships that cover all expenses including tuition, room, board, and books. Students can apply for additional scholarships to help support other expenses.
Students qualify to attend tuition-free if their parents earn less than $150,000 annually and have typical assets. For students coming from families who earn less than $66,000 annually, there is no expectation of parental financial contribution. All incoming first-year students are expected to pay $2,400, which is the minimum student contribution as part of their financial aid award.
Cornell guarantees no parental contribution and no loans for students whose families earn less than $60,000 per year and typical assets. For students from families with total annual income up to $75,000, the annual aid offers include grants and work-study only — students are not expected to need to take out loans.
For students whose families earn less than $65,000 per year with typical assets, there’s no expectation of parental contribution, and the aid award does not include any loans. Students are expected to contribute toward their own expenses, but they can choose to take a loan if needed. The Dartmouth Scholarship provides free tuition for students from families with total incomes of $125,000 or less who possess typical assets.
Harvard University has announced that, beginning in the 2025-26 academic year, students from families with annual incomes of $200,000 or less will receive free tuition, while those from households earning $100,000 or less will have all billed expenses — including tuition, housing, food, health insurance, and travel — fully covered.
Princeton offers full tuition, room, and board for students whose parents earn less than $100,000 per year. Families above that threshold still receive substantial aid depending on assets and number of children in college.
Students from families with incomes less than $200,000 (and typical assets) receive financial aid packages that cover tuition, fees, room, and board. UPenn states they are also eligible for additional benefits, like laptop funding and summer opportunity funds. This builds on Penn’s long-standing no-loan policy and its earlier Penn First Plus program, which fully covered tuition, fees, housing, and dining for families earning up to $75,000.
Yale expects zero parent contribution for students whose families earn less than $75,000 per year and have typical assets. Students from families who earn between $75,000 and $200,000 (with typical assets) contribute a percentage of their annual income towards their child’s education, on a sliding scale that begins at 1% and moves toward 20%.
Beginning with the fall 2023 semester, Duke will provide full tuition grants for undergraduate students from North Carolina and South Carolina whose family incomes are $150,000 or less. For North and South Carolina residents, students whose families earn $65,000 or less will receive full tuition, plus financial assistance for housing, meals, and other campus expenses, and there’s no expectation they will need to take out loans.
MIT ensures scholarship funding for students whose family income is less than $200,000 (plus typical assets) so most can attend tuition-free. Furthermore, families earning under $100,000 can expect zero parental contribution toward their student’s total cost of attendance — including tuition, housing, dining, fees, and an allowance for books and personal expenses.
Students from families who earn less than $75,000 annually can attend Rice with an aid package that covers tuition, fees, and room and board. Students from families with annual incomes between $75,000 and $140,000 are awarded full-tuition scholarships, and students from families earning between $140,000 and $200,000 will receive scholarships covering at least half of their tuition.
Stanford does not expect parental contribution toward educational costs for students whose parents earn a total annual income below $100,000 and typical assets. Students are expected to contribute toward their own expenses — usually around $5,000 — from their summer income, part-time work during the school year, and their own savings. Students from families who earn less than $150,000 per year plus typical assets can typically attend Stanford tuition-free.
Texas A&M covers both tuition and fees for students whose family income is $60,000 or less. Tuition support grants, ranging from $500-$1,500, are awarded based on income and financial need.
If your family’s adjusted gross income is less than $125,000, you’re eligible to receive free tuition to the University of Chicago. If your family’s AGI is less than $60,000, the school will also cover room, board, and other fees.
As of fall 2024, UNC covers tuition and mandatory fees for North Carolina students whose families earn less than $80,000 annually and have typical assets. Students from families with a total income that is at or below 200% of the poverty guideline and who meet additional economic criteria to qualify can attend UNC debt-free thanks to the Carolina Covenant aid program.
Vanderbilt’s Opportunity Vanderbilt initiative, expanded in February 2024, guarantees a full‑tuition scholarship — without loans — for all U.S. undergraduate students from families earning $150,000 or less (assuming typical assets), and often extends additional grant support for living expenses beyond tuition.In practice, families in lower income brackets often receive awards surpassing full tuition — measured median aid ranges from about $75,000 to $95,000, depending on income tier.
Financing Your Education If You Don’t Qualify For Free Tuition
Not all students will qualify for or attend a school that offers free tuition. There are several options for financing college.
Tuition Payment Plans
Students and their parents may be able to take advantage of a tuition payment plan, which allows you to break up the cost of tuition, room, and board, over the course of a semester or year.
Scholarships and Grants
Scholarships and grants are often referred to as “gift aid,” because you don’t typically have to pay back scholarships or grant money after graduation as you do with student loans.
Scholarships are often offered based on merit, while grants are typically based on financial need. Gift aid can come from different types of institutions — from your college to local community organizations to large corporations.
Unlike scholarships and grants, you do have to repay student loans upon leaving school or graduating. Student loans are split into two broad categories: federal and private loans.
Federal student loans are disbursed by the government, which sets fixed rules about repayment and interest rates. You apply for these loans by filling out the FAFSA.
Private financial institutions may provide private student loans. Each private loan company sets its own repayment requirements and determines their own interest rates. You apply for these loans directly through the lender.
Private student loans are generally considered as an option only after all other sources of aid have been exhausted. This is because they lack the same borrower protections as federal student loans, such as income-driven repayment plans or the option to pursue Public Service Loan Forgiveness.
💡 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. You can submit it as early as Oct. 1.
The Takeaway
There are a number of schools that offer free tuition plans or substantial financial assistance to students. Free tuition programs can make higher education more accessible to lower-income students. As mentioned, some schools may have requirements around work-study, academics, or living on campus for students to qualify for free or reduced tuition.
Students who aren’t enrolled in a school that offers free tuition have a few options for financing their education. This includes savings, federal financial aid, scholarships, and federal 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
Do any states have free college tuition?
Several states offer free college tuition programs, including New York, Tennessee, Oregon, and Rhode Island. These programs typically have specific eligibility criteria, such as income limits or residency requirements, and may cover community college or public university tuition.
How can you go to college with no money?
To attend college with no money, explore options like scholarships, grants, federal work-study programs, and community college. Consider applying for financial aid, seeking part-time jobs, or enrolling in free tuition programs offered by some states.
Do any Ivy League schools have free tuition?
Harvard recently announced that tuition will be free for students from families making less than $200,000 per year. Several other Ivy League schools provide significant financial aid to eligible students, covering full tuition for those with low family incomes. Princeton and Yale are among the institutions with generous need-based aid programs.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
Americans now hold a total of $1.77 trillion in student debt (including federal and private loans). For many people, educational loans are the biggest debt burden they’ll ever face, and the prospect of having to pay them off can seem overwhelming.
Figuring all this out can be hard on your own. Fortunately, there are counseling services available to help you navigate student debt no matter what stage of the process you are in.
Here’s a look at how student loan counseling works and how to determine the best path for managing student loan debt.
• Student loan counseling can help you understand the various repayment plans, including income-driven options, and how they affect your monthly payments and total repayment amount.
• Counseling can provide strategies to avoid default, which can have severe consequences like wage garnishment and damage to your credit score.
• Professional counselors can offer personalized advice tailored to your financial situation, helping you make informed decisions about your loans.
• Counselors can inform you about potential loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF), and guide you through the application process.
• Student loan counseling can assist in creating a budget that accommodates your loan payments, helping you manage your finances more effectively and avoid financial stress.
What Not to Do If You Need Student Loan Help
The worst thing you can do if you need help with your student loans is to stop making payments on them. Not making payments can lead to student loan default.
Defaulting has serious consequences, including a major hit to your credit score, possible wage garnishment, loss of eligibility for federal benefits, and more.
Instead, regardless of your current situation, a solid plan can help you tackle your student loans in a way that fits your circumstances and goals.
💡 Quick Tip: Some lenders help you pay down your student loans sooner with reward points you earn along the way.
What Is Student Loan Entrance Counseling?
Student loan entrance counseling is a mandatory exercise designed to inform federal loan recipients of their loan terms and responsibilities as borrowers. More specifically, the session covers student loan interest rates, repayment options, and the repercussions for default.
The Department of Education’s online module includes five sections with a range of loan-specific and financial topics, while schools have some discretion in how they deliver counseling sessions.
This requirement has been in place since the Federal Direct Loan program was created in 1992 with the goal of reducing delinquency.
When Do I Go For Student Loan Counseling?
If you’re borrowing federal student loans for the first time, student loan entrance counseling is a prerequisite for accessing funds. Therefore, it’s important to complete the session before the first loan disbursement.
Borrowers with Direct Subsidized and Unsubsidized Loans, as well as graduate students taking out Direct PLUS Loans, are required to participate in student loan entrance counseling. Students may be obligated to take additional entrance counseling at their chosen school, too, so be sure to check with the financial aid office.
Where Do I Go for Student Loan Counseling?
Whether you have federal or private student loans, there are services available to help you with financial wellness, budgeting, and understanding your loans. You can access student loan counseling at the following servicers:
Federal Student Loan Counseling
Before federal loans are disbursed, the government requires borrowers to complete student loan entrance counseling to understand their rights and what’s expected of them. The process is automated and online, and it takes up to half an hour to complete.
Similarly, when students graduate or are enrolled less than half-time, they must complete exit counseling online. Don’t just do this to check the box. Student loan exit counseling is designed to help you establish a solid foundation for dealing with student loans.
Loan Servicers
The government contracts with several loan servicers to handle federal student loans. It should be relatively easy to get in touch with a servicer by phone, email, or even online chat. It’s in the companies’ best interest to make sure you make payments.
Their agents typically work with borrowers to help them understand their debt, figure out the best repayment plan, and process requests for deferment or forbearance. The quality of advice can vary, but this can be a helpful first step for getting answers to questions or getting on track with repayment.
National Foundation for Credit Counseling
Founded in 1951, the National Foundation for Credit Counseling (NFCC) offers financial counseling on various issues, including student loan debt. The group’s certified credit counselors work with people to help them understand the benefits and drawbacks of various student loan repayment plans, how to make payments affordable, whether consolidation makes sense for you, and how to reduce the overall interest you pay.
Counselors offer to provide a comprehensive plan for managing student debt, taking an individual’s entire financial situation into account, rather than looking at student loans in a vacuum. Though NFCC doesn’t provide services for free, fees are typically low or based on how much you afford.
Clearpoint
Clearpoint, a division of Money Management International, is a nonprofit agency that offers student loan counseling. Their counselors examine your overall financial situation and discuss the best way forward, including repayment plans, consolidation, or rehabilitation.
They say they may suggest a debt management program if you are also having difficulty with credit card debt. The debt management program has relatively low fees, and the group says it will remove or reduce fees for clients with financial hardship.
GreenPath
GreenPath, another nonprofit, offers to review all your loans and provide an “unbiased assessment” and a customized plan based on your situation.
The initial consultation is free, but they also offer a higher tier of service if you want more in-depth analysis. If you want them to serve as your advocate by contacting the loan servicer on your behalf, you’ll be charged a fee.
Why Is Student Loan Entrance Counseling Important?
Figuring out how to get a student loan is just the beginning. Repaying loans is a long-term responsibility not to be taken lightly. In fact, the average borrower takes around 20 years to pay off their student loans.
If you’re in the process of taking out student loans, you’ll want to make sure you fully understand what the total cost of the loan will be and what repayment will look like, including what your payments will be, when they will start, and how long they will last.
Student loan entrance counseling unpacks how interest accrues over time and best practices for managing repayment. This can help you minimize the total interest paid over the life of the loan and steer clear of late fees or default.
💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, Federal Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans, and more.
The Takeaway
Student loan entrance (and exit) counseling is required for all federal student loan borrowers and is designed to inform borrowers of how student loans work, with the goal of minimizing the number of students who default on their student loans.
In addition, there are a number of nonprofit agencies that offer student loan counseling to borrowers who would like help navigating the student loan repayment process. Many of these organizations will offer some general student loan counseling for free, while more in-depth help typically carries a fee. Many private lenders will also offer guidance on repayment free or charge.
If you’re still in the process of financing for your education, you may want to explore tapping a variety of options, including federal financial aid and federal and 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
Can credit counseling help with student loans?
Credit counseling can provide general financial advice and help you manage debt, but it typically doesn’t offer specific solutions for student loans. For specialized assistance, consider student loan counseling or contacting your loan servicer directly.
What happens if I don’t do student loan exit counseling?
If you skip student loan exit counseling, you might miss important information about repayment options, grace periods, and deferment. This could lead to misunderstandings, missed payments, and potential default, affecting your credit score and financial future.
What are the cons of student loan counseling?
Student loan counseling can be time-consuming and may not always provide personalized advice. Some students might find the information overwhelming or confusing, and there’s no guarantee it will prevent default or reduce debt significantly.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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