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Paying for medical school can be a significant financial challenge, with tuition, fees, and living expenses adding up quickly. Fortunately, there are several options available to help future doctors finance their education.

Keep reading for more insight into how to pay for medical school.

What Is Medical School?

Medical school is typically a four-year educational program that leads to graduating students receiving an M.D., D.O., or N.D. degree. After medical school, graduates will generally continue onto a medical residency in the specialty of their choice.

Different Types of Medical School

There are three main types of medical school: allopathic, osteopathic, and naturopathic. All of these programs prepare students for careers as doctors, but they have different academic credentials. Let’s take a closer look at each of these programs.

Allopathic Medical School

Allopathic medicine is also known as conventional or traditional medicine. Allopathic medical schools provide students with a traditional curriculum and approach to medicine. Allopathic doctors rely on traditional methods such as x-rays, prescription medications, and surgery to treat and diagnose an illness or medical issue. If a student graduates from an allopathic program, they’ll receive a Doctor of Medicine (M.D.) degree.

Osteopathic Medical School

Osteopathic schools also cover standard medical sciences and practices but supplement those lessons with training on providing touch-based diagnosis and treatment of different health problems. Osteopathic doctors often take a more holistic approach to patient wellness and treatment. Students who attend an osteopathic medical school will end up with a Doctor of Osteopathic Medicine (D.O.) degree.

Naturopathic Medicine School

Naturopathic medicine school is a graduate-level program that trains students to become naturopathic doctors (NDs). These schools focus on natural and holistic approaches to health and healing, combining traditional medical sciences with therapies such as herbal medicine, nutrition, acupuncture, homeopathy, and lifestyle counseling. The curriculum typically includes both classroom instruction and clinical training, and it usually takes four years to complete after earning a bachelor’s degree.

Recommended: Average Cost of Medical School

Financing Medical School

The cost of medical school is on the rise and finding a way to finance medical school can be a daunting task. There are quite a few options for medical students to get help doing so. From taking out student loans for medical school to gift aid, students have options.

Scholarships & Grants

Scholarships and grants are considered a form of gift aid because they typically do not need to be repaid. Students can apply for need-based grants and merit scholarships through their medical school or outside sources. Their school’s financial aid office can walk them through their options.

Medical associations and nonprofit organizations also tend to have financial aid, grants, and scholarships that medical students can apply for. Again, a school’s financial aid office can help point medical students in the right direction, but they won’t know of every gift aid opportunity available outside of their school, so students may want to do their own research.

The following associations generally offer scholarships and grants for medical students.

•   American Medical Association. This professional group provides financial support through scholarship opportunities, as well as general support for medical students looking to learn more about how to pay for medical school and to prepare for residency.

•   American Medical Women’s Association. Medical students can peruse this association’s list of more than a dozen different scholarships, awards, and grants that they may be eligible to apply to.

•   American Podiatric Medical Association. Every year, the American Podiatric Medical Association gives out more than $200,000 worth of grants and scholarships.

Federal Student Loans

Medical students can apply for federal financial aid, including federal student loans, by completing the Free Application for Federal Student Aid (FAFSA®). Medical students may qualify for three types of federal loans after they complete the FAFSA. The FAFSA may also qualify students for financial aid such as scholarships and grants from their state or school (if available).

•   Federal Direct Unsubsidized Loans. Also known as Stafford Loans, Federal Direct Unsubsidized Loans allow students to borrow money unsubsidized. When a loan is unsubsidized, this means that the borrower is responsible for paying all of the interest on the loan.

•   Federal Direct Graduate PLUS Loans. If a student still needs help financing medical school after taking out a Federal Direct Unsubsidized Loan, they can take out a Federal Direct Graduate PLUS Loan, which is also unsubsidized. These loans tend to have a higher interest rate than Federal Direct Unsubsidized Loans do and are credit-based.

•   Health Resources and Services Administration (HRSA) Primary Care Loan. Medical students with financial need, and who can demonstrate it, may qualify for this school-based program that offers a few different types of loans for medical students. Not all medical schools participate in this program, but students can check with their school’s financial aid office to see if their school does take part in it.

Recommended: Types of Federal Student Loans

Private Student Loans

After applying for federal student loans, students may be interested in supplementing their federal support with private medical school loans. Generally, private student loans for medical school are available through banks or credit unions. How much a student will pay in interest for a private student loan will depend on what their credit history is, amongst other factors. There are private student loans available at fixed and variable interest rates.

While private student loans can be a helpful option for borrowers, they don’t always offer the same borrower protections as federal student loans — such as income-driven repayment plans or the opportunity to pursue Public Service Loan Forgiveness. Because of this, students generally resort to private student loans only after depleting all other financing resources.

Recommended: Private Students Loans vs Federal Student Loans 

The Takeaway

Between scholarships, grants, and medical school student loans, medical students have some decent options at their disposal for financing medical school. While there’s no denying that medical school can be a stressful time in a person’s life, hopefully all of the hard work and sacrifices will lead to a fulfilling and rewarding career.

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.

FAQ

What is the best way to pay for medical school?

If a student can secure scholarships and grants, that’s the best way to pay for medical school. Unlike student loans which must be paid back, gift aid is free money that medical students won’t have to pay back after graduation.

How do you get medical school paid for?

Medical students can apply for scholarships and grants to help cover the cost of medical school. After applying gift aid, students can take out federal or private student loans to cover the remaining costs of attending medical school. Paying in cash is also an option, but one that is understandably not within reach for many people.

Is it hard to get loans for medical school?

There are both federal and private student loans available to medical students, so they generally have plenty of options that make it possible to get a loan for medical school.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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SOISL-Q225-039

For the 2024-25 school year, the average cost of tuition and fees for a four-year private college was $43,350, $30,780 for a public four-year college (out-of-state), and $11,610 for a public four-year college (in-state), according to the College Board.

Add in other living expenses and it’s no surprise that students and their families often rely on a combination of funding sources to pay for their education. Students may turn to savings, scholarships, grants, and student loans to find enough money to pay for college.

11 Ways to Pay for College and Other Expenses

Paying for college, plus living expenses, often requires a hodgepodge of funding sources. As mentioned, students rely on things like scholarships, grants, and student loans.

Students attending trade school or community college may also be able to use these sources of funding to pay for their education. Continue reading for details on different ways to pay for college.

1. Fill Out FAFSA and See What Aid You Qualify For

The Free Application for Federal Student Aid, better known as FAFSA®, is the application students will fill out if they are interested in securing any form of federal financial aid. This includes federal scholarships, grants, work-study, and loans. Many schools will also use information provided on the FAFSA to determine school-specific scholarships or grants.

Completing the FAFSA is free — it requires a bit of time, but that’s worth it if you qualify for much-needed funding to pay for schools.

Be sure to compare financial aid packages from each college to understand the net cost at each. Some colleges may have more expensive sticker prices, but offer more aid.

2. Applying for Scholarships

Many colleges and private organizations offer merit-based scholarships. This means money is awarded based on academic or athletic ability, not financial need. There are plenty of databases and scholarship search tools that can help students find scholarships.

Scholarships often have specific requirements, so read the criteria carefully. For instance, you might need to live in a certain state or major in a particular subject to qualify. If you’re unsure whether you qualify, contact the scholarship sponsor.

It may also benefit you to start researching scholarships early. Gather required documents and information to apply so that you are ready to meet any early deadlines. Many scholarships require you to submit a high school transcript, your standardized test scores, a financial aid form, and information about your family’s finances, including your parent’s tax returns from the previous year.

Many scholarships also require you to write an essay and provide at least one letter of recommendation. Be sure to follow all the directions carefully and to keep copies of your application.

Recommended: What Is a Scholarship & How to Get One?

3. Applying for Grants

Unlike scholarships, most grants are based on financial need, not academic achievement. The largest source of need-based grants is the federal government’s Pell Grant program, but there are other federal student grants available.

To qualify for a Pell Grant, you must be a U.S. citizen attending either a two- or four-year undergraduate program. If you have already earned a baccalaureate or professional degree, you won’t be eligible for a federal grant.

Pell Grant amounts are based on financial need, the cost to attend your college, and your enrollment status. The amount awarded will vary based on those factors, but the current maximum award is $7,395 for the 2024-25 academic year.

Many states also distribute grants. Check out SoFi’s financial aid database with state-by-state guides.

4. Asking the College for More Money

While it may seem like a bold move, one strategy for obtaining additional student aid might be asking the college to provide a larger financial aid package. Appealing a financial aid decision is a possibility, but there are no guarantees. Financial aid awards are usually based on information provided on the FAFSA, but in some cases, changes in financial circumstances can lead to an amended financial aid award. Some colleges and universities might also be willing to match a more competitive financial aid offer from a comparable school.

The appeals process might vary based on the school’s policies, so check in with the financial aid office or review the school’s website to determine the exact process.

Many schools will require a letter of explanation. Depending on the circumstances, documentation might be necessary to supplement the information detailed in the appeals letter.

5. Getting a Part-Time Job

Another way to pay for college is to look for a part-time job, either on or off campus. Campus career services offices may also have resources for students looking for part-time work and may even help with resume writing.

Students looking for part-time jobs may want to consider the following types:

Student Research Positions

Bolster your resume while working as a lab assistant or teaching assistant. Some colleges and universities may have research positions available for undergraduate students.

Jobs with Tuition Reimbursement

Some companies may offer tuition reimbursement or support to part-time employees. This means you could earn money to boost your income and also gain some extra funding to pay for your tuition. For example, at Starbucks, part-time employees may qualify for the company’s education assistance program.

Applying for Internships

Internships can be a good way to help you gain work experience and round out your resume. While some internships are unpaid, if you can secure a paid internship it could allow you to earn some extra money and build skills directly applicable to your future career.

Recommended: Top 20 On-campus Jobs for Students

6. Applying for a Tax Credit

Qualifying students — or their parents, if the student is a dependent — may claim the American Opportunity Tax Credit (AOTC) for up to $2,500 for each eligible child attending college. To be eligible, the student must:

•   Be enrolled in a degree program at least half time for one academic period.

•   Have not finished the first four years of higher education at the beginning of the tax year.

•   Have not claimed the AOTC (or the former Hope credit) for more than four tax years.

•   Have not had a felony drug conviction at the end of the tax year.

Another tax credit, the Lifetime Learning Credit (LLC), is also available for qualifying students, but cannot be claimed for the same student on an individual tax return. The maximum benefit of the LLC is $2,000 per tax return, and there is no limit on the number of tax years the credit can be claimed.

Requirements for either of these tax credits may change from year to year, so it’s recommended to check the most recent information before claiming the credit.

7. Federal Student Loans

The U.S. Department of Education oversees the Federal Direct Loan Program which offers a few different types of student loans. Undergraduate students may qualify for subsidized or unsubsidized loans.

Subsidized loans are awarded based on financial need. The interest accrued on a subsidized loan is covered by the Department of Education while the borrower is enrolled at least half-time, during the grace period, and during periods of deferment.

Unsubsidized loans don’t have a financial need requirement, and borrowers are responsible for paying the interest on an unsubsidized loan once it’s disbursed.

Parents of undergraduate students may also qualify for Direct PLUS Loans. Unlike other types of federal loans, a credit check is required for a Direct PLUS Loan.

8. Work-Study

Some students may have been awarded Federal Work-Study as part of their federal student financial aid package. This program is administered by individual colleges or universities, so check with the financial aid office to see if the school participates in the program.

If you are awarded work-study, you’ll still need to find a job that qualifies for the program. Many schools will run an on-campus job database for this sort of thing. Based on your financial aid award, you’ll be allowed to work a certain number of hours each week.

9. Private Student Loans

If you aren’t awarded a scholarship or grant and have exhausted your federal loan options, there are a variety of private student loans you can apply for to help pay for college.

Private loans are offered by banks, credit unions, and other financial institutions. They are not need-based or subsidized, and the lender will often review your credit score among other financial factors. In some cases, you may need to add a cosigner to your application to be approved.

Interest rates and terms vary from lender to lender, so compare loan options before committing.

💡 Quick Tip: New to private student loans? Visit the Private Student Loans Glossary to get familiar with key terms you will see during the process.

10. Use Your Savings

If you’re lucky enough to have money saved away for college, put it to work! Some students may have a 529 savings plan set up in their name. A 529 savings plan is a dedicated college fund that offers certain tax advantages. Money contributed to the plan is invested and can be withdrawn tax-free if it is used for qualified education expenses.

Using money saved up could help you take on less student loans or make it so you can work fewer hours at a part-time gig.

Recommended: Guide to Paying for College for Parents

11. Income-Share Agreements

Income share agreements are made between a student and the school they attend. The college or university lends the student money required to pay for their educational costs, and in exchange the student agrees to pay a share of their future earnings for a fixed amount of time after graduation.

Unlike a student loan where the amount you repay is determined by the interest rate on the loan, the amount you repay for an income share agreement can fluctuate based on how much you earn after you graduate.

Income share agreements can be helpful for students who have exhausted their federal loan options. A potential negative is that students who are high-earners after graduation may end up repaying more than they would if they had borrowed a more traditional loan.

The Takeaway

One place to start figuring out how to pay for college is by speaking with a guidance counselor and doing some research about financing college costs. Understanding the options available can help you and your family figure out what types of funding work best for your situation. Students can use a combination of funding — from student loans to grants and scholarships — to pay for their education.

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.

FAQ

Does anyone actually pay full price for college?

Some students pay the full sticker price for college. According to the Education Data Initiative, roughly 87% of first-time degree seeking students at four year universities received some form of financial aid.

Can you borrow from a 401(k) to pay for your child’s college?

It is possible to borrow a loan against your 401(k) to pay for your child’s college education. However, when you borrow against your 401(k), it can potentially limit growth in your retirement fund. There are also Parent PLUS Loans available from the federal government or private student loans for parents that could be considered to help pay for your child’s college education without requiring you to withdraw from or borrow against your 401(k). Consider speaking with a qualified financial professional for personalized advice.

Do student loans go away after 7 years or a set amount of time?

Repayment terms for federal student loans range from 10 to 25 years. Private student loan repayment terms may vary by lender.

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.

SOISL-Q225-032

The Free Application for Federal Student Aid (FAFSA®) is the first step in the process of obtaining government-provided student aid, including the Pell Grant, which is a need-based award that does not need to be repaid.

Although the Pell Grant vs. FAFSA serve different functions, they both have a role under the broader federal student aid program. The FAFSA provides students access to the Pell Grant, and Pell Grant eligibility is determined by the FAFSA.

What Is FAFSA?

The Free Application for Federal Student Aid is an all-in-one formal application to see if you’re eligible for federal financial aid. Through the FAFSA, students are able to apply for federal grants for college, like the Pell Grant, as well as scholarships, work-study opportunities, and federal student loans from the Department of Education.

As the name indicates, there is no cost to submit a FAFSA. Students will need to complete and submit a new FAFSA for every academic year they are requesting federal aid.

The FAFSA is generally available as early as October 1 for the upcoming academic year. The federal deadline to file the FAFSA is June 30 following the academic year. However, schools and states might have their own FAFSA deadlines to qualify for non-federal aid. Ask your school about its FAFSA deadline and be aware of your state’s deadline on StudentAid.gov.

Recommended: FAFSA Guide

How FAFSA Works

Each FAFSA is applicable to the upcoming academic year. To receive federal financial aid for multiple years of college, as mentioned, you’ll need to complete the FAFSA each year by the deadline.

A Federal Student Aid (FSA) ID is required to manage your federal student aid account, which includes signing your FAFSA digitally. You can create your FSA ID on StudentAid.gov.

Shortly after submitting the FAFSA, either digitally or a paper application, you’ll receive a Student Aid Report. This report is an overview of all the information you’ve provided on your FAFSA (e.g. your and your parents’ personal and financial information), and includes your Student Aid Index number (SAI; formerly called your Expected Family Contribution). At this stage, you’ll need to make any necessary corrections to your FAFSA by the deadline.

Your selected schools will then process your FAFSA and provide you with its financial aid offer. This notice will outline the types of aid you’re eligible for and the amount. It will also provide instructions on how to accept the aid offers you want. The accepted aid will then be sent automatically to your school.

Recommended: How College Financial Aid Works

What Is the Pell Grant?

A Pell Grant is a federal grant program that offers aid to students who show financial need on their FAFSA. Students are typically not required to repay money awarded in the form of the Pell Grant.

It’s generally available to undergraduate students who have not yet earned a bachelors, graduate, or professional degree. This grant program is not available to students who have been incarcerated in a federal or state institution.

When used for qualified educational expenses, Pell Grants are generally not considered taxable income.

How Pell Grants Work

The maximum Pell Grant award a student can receive may vary from year to year, and the amount you qualify to receive depends on your SAI. For the 2025-26 academic year, the maximum award is $7,395.

Pell Grant awards are also limited to 12 semesters (or the equivalent of six years) per student. For example, if you received a Pell Grant award for four years of your undergraduate degree, and return to school to complete a graduate program, you’ll only have two years of lifetime eligibility left to receive Pell Grant funding.

In certain situations, students may be required to repay all or a portion of their Pell Grant. One circumstance that may require repayment is a change in enrollment that may impact your eligibility, such as withdrawing from school. If you are required to repay all or a portion of your Pell Grant, you will be notified by your school.

Pell Grant vs FAFSA

When comparing the differences and similarities between the federal pell grant vs. FAFSA, you’ll find they share some broad attributes, but have significant differences.

The first notable difference is that the FAFSA isn’t a type of financial aid; instead, it’s a general application for multiple federal aid programs. A Pell Grant, on the other hand, is a type of federal aid program that uses the FAFSA to determine if a student is eligible.

Neither the Pell Grant or FAFSA have defined income limits for eligibility. Anyone can submit a FAFSA, regardless of their household income. However, only students who demonstrate financial need are eligible for certain federal aid programs, like the Pell Grant.

The government uses students’ SAI — which is calculated based on a number of factors — to decide Pell Grant eligibility. If your SAI is zero or less, you’ll receive the maximum Pell Grant amount.

Also, both undergraduate- and graduate-level students can submit a FAFSA, but Pell Grants are typically restricted to undergraduate students only.

Which Forms of Financial Aid Should You Prioritize?

If your financial aid award includes a Pell Grant and other types of aid offers, carefully decide which aid you want to accept, and how much.

To avoid graduating school with excessive student debt, consider prioritizing financial aid as follows:

•   Scholarships and grants, like the Pell Grant, which don’t need to be repaid after you graduate.

•   Earned financial aid, like participating in work-study opportunities. You can also consider taking on a part-time job while you’re enrolled in school.

•   Borrowed financial aid, like federal student loans. Federal student loans offer low, fixed rates and protections, like income-driven repayment plans and extended deferment and forbearance. Prioritize federal loans before borrowing private student loans, which don’t guarantee the same benefits.

Recommended: FAFSA Grants & Other Types of Financial Aid

What If You Don’t Qualify for Financial Aid?

Students who don’t qualify for federal financial aid still have options to help finance their college education.

Scholarships

Scholarships are a type of financial aid that doesn’t need to be repaid. They can be need- or merit-based, and are sponsored by nonprofit and private organizations, businesses, professional associations, and more.

Other Grants

Like scholarships, non-federal grants are provided to students based on need or merit. They don’t have to be repaid after graduation making them a good financial aid choice.

Recommended: The Differences Between Grants, Scholarships, and Loans

Private Student Loans

Students can also apply for private student loans. This form of aid must be repaid in full, plus interest. You can find them from private financial institutions, like online lenders, banks, and credit unions. Your school or state might also offer private student loan options.

One thing to know about private student loans, though, is that they lack borrower benefits afforded to federal student loans, and are therefore generally only considered as a last resort option.

Recommended: Guide to Private Student Loans 

The Takeaway

The FAFSA is an application that students must fill out if they are interested in applying for any federal student aid. This includes scholarships, work-study, grants, and federal student loans. A Pell Grant is a type of aid awarded to students who demonstrate exceptional financial need.

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.

FAQ

Can you get a Pell Grant without FAFSA?

No. Completing and submitting a FAFSA is a requirement to apply for a federal Pell Grant. The FAFSA is used by your school to determine your eligibility for Pell Grant aid, and the amount you can receive under this grant program.

Can you get a Pell Grant and other forms of financial aid?

Students who are eligible for a Pell Grant might also be offered other types of financial aid. If you’re eligible, you’ll receive the full Pell Grant amount you’re eligible for, regardless of other existing financial aid.

Do you have to repay a Pell Grant if you don’t graduate?

You might have to repay a portion of your “unearned” Pell Grant if you withdraw from school during the same academic year. Your school will calculate how much of your Pell Grant award you’ve earned based on your scheduled attendance, and tell you the amount you owe.

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.

Photo credit: iStock/Ridofranz
SOISL-Q225-033

Paying for college without your parents’ financial support can feel overwhelming, but it’s entirely possible with the right resources and planning. Whether your family is unable or unwilling to contribute, there are several options available — from scholarships and grants to work-study programs and student loans — that can help you fund your education.

Keep reading to learn more on how to pay for college without your parents’ help, including tips on cutting costs while in school.

Strategies to Help Pay for College Without Parental Support

Finding the resources to pay for college can be a challenge, and if you’re embarking on this journey alone, it can be stressful. Here are some tips that can help you navigate the process and make it feel less overwhelming.

Choosing the Right College

The best college for your situation will likely be one that provides the programs you need to achieve your career goals and has a price tag that you can afford.

Decisions you’ll need to make include:

•   Living at home or in a dormitory or other housing by the college

•   Choosing between a public or private college

•   Picking between in-state and out-of-state colleges

Living at Home

If you can live near the college rent-free, or at low cost, then this is likely the most cost-effective choice. Perhaps you have family members who live near a college and will allow you to live with them while you pursue your education. Or, maybe you could rent a low-cost apartment near a community college or other school that doesn’t require freshmen to live in a dorm.

Considering Private vs Public Colleges

Public colleges are, generally speaking, less expensive than private colleges. Tuition and fees for the 2024-25 academic year averaged $43,350 at private nonprofit colleges and $30,780 at public colleges (for out-of-state residents). Prices get even more reasonable if you attend school in your home state and receive in-state tuition — the average cost of in-state tuition and fees was $11,610.

Generally, in-state universities are more affordable than going out of state. But the difference between tuition for out-of-state and in-state students can vary widely, so check into your colleges of choice for confirmation. You’ll also want to factor in traveling costs for out-of-state options and consider online college programs where you can take classes no matter where you are located.

Starting at a Community College

Completing your first two years of study at a community college is another option that could dramatically reduce the overall cost of college. In addition to less expensive courses, it may be possible for you to live at home, which can cut costs even more. You might then transfer to a four-year college, allowing you to get a degree from that school without paying for the cost for all four years.

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

Applying for Relevant Scholarships

Because scholarships don’t typically need to be repaid, they are a valuable tool to help fund your college education. If you’re finishing high school, talk to your guidance counselor about possibilities. There are often local scholarships provided by businesses and civic groups that you can apply for.

These days, you can also find scholarship opportunities online. There are often major-specific opportunities and more general offerings. It’s worth investing a bit of time in researching and applying for scholarships — a couple hours could really be worth it when those scholarship offers start rolling in.

When you find a college scholarship of interest, check the guidelines carefully to ensure you qualify. Also be sure to follow the application instructions carefully, and submit your forms as early as possible within the timeline. Although you can often reuse parts of one scholarship application to complete another, each opportunity typically has unique requirements, formats, and deadlines.

Recommended: What Is a Merit Scholarship & How to Get One

Obtaining Grants to Help Pay for College

Grants for college can come from multiple sources, including state agencies, local organizations, corporations, and more. And as with scholarships, this is money you don’t typically need to pay back. The biggest source of college grant funding comes from the federal government, and one of the best known is the Pell Grant.

Federal grants come in different categories, including:

•   Need-based grants which are based upon financial hardship.

•   Merit-based grants awarded to students who exhibit exceptional scholarship and/or community involvement.

•   Grants awarded to specific groups, including students with disabilities, those from underrepresented groups, veterans, National Guard members, foster care youth, and those who select certain careers.

Obtaining federal grant funding without help from your parents can be challenging, though. That’s because most federal grants require students to fill out the Free Application for Federal Student Aid (FAFSA), which, if you are a dependent student, will be considered incomplete without parental information. In the event that your parents are unable to fill out their portion of the FAFSA, you’ll have to contact your college’s financial aid office and show appropriate documentation that verifies that your parents cannot fill out the form.

In certain circumstances, you can obtain independent student status and complete the FAFSA yourself, but parental refusal to help with FAFSA completion might not be enough to gain this status.

Even if you fully support yourself financially and are no longer claimed as a dependent on your parents’ tax forms, this status may not necessarily be granted. See your guidance counselor if you want to explore obtaining this status.

💡 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.

Applying for Student Loans

As mentioned, students that fund their college educations without assistance from their parents often need to craft a financial aid plan that consists of funding from multiple sources. This may include funding from both the federal government and private lenders.

Applying for Federal Student Loans

Federal and private student loans are available, but most federal loans require a portion of your FAFSA to be completed with parental information, unless you have independent student status.

Effective with the Higher Education Opportunity Act of 2008, college financial aid departments can offer students unsubsidized Stafford loans even if their parental section on their FAFSA isn’t completed, as long as they confirm that parents are not willing to financially help the student or fill out the FAFSA.

Applying for Private Student Loans

You can also apply for private student loans, although, if you don’t have much or any credit history, you may need a cosigner. Private lenders generally evaluate a potential borrower’s credit history, among other factors, as they make their lending decisions.

Adding a cosigner with a strong credit history could potentially help secure a more competitive interest rate. If you aren’t able to find a cosigner, it is possible to apply for a student loan without a cosigner.

Another important note is that private student loans may not offer borrower protections like those offered to federal student loan borrowers, such as the option to apply for Public Services Loan Forgiveness. For this reason, private student loans are generally borrowed as a last resort option.

With determination and a willingness to seek out and accept help, students do find ways to fund their college educations without assistance from their parents.

Recommended: What Percentage of Parents Pay for College?

Cutting Costs While Attending College

Smart budgeting and careful spending can help you stay in line with your means as you pay for college. Cutting costs when possible could allow you to save or funnel more money toward college tuition.

If, for example, you plan to rent a room in a house near your college of choice, you can furnish it in funky, eclectic ways using stylish and affordable finds from thrift stores and garage sales. ​If you’re handy, you can even build your own loft bed and other furniture, with plenty of instructions available online.

Food gets expensive quickly. If you’ll be on a college meal plan, choose one that doesn’t include waste. Or if you’re living somewhere where you can cook your own food, plan thrifty meals in advance and shop in bulk. Watch for a slow cooker at rummage sales, and you can cook plenty of delicious soups and more.

To cut costs on textbooks, shop around to see if there are any used options you can purchase at a discounted rate. If the book you are buying is directly related to your college major, and you plan on saving it for reference in the future, it could be worthwhile to buy the book. If it’s a textbook for an elective class, you could consider renting the textbook which can often be cheaper than buying it brand new.

Working While Attending School

In addition to potentially helping you qualify for financial aid, your FAFSA may qualify you for federal work-study programs. Of course, finding a part-time job that isn’t associated with work-study is also an option.

You will need to determine how many hours per week you can work and still do well in school. And you’ll also need to find a job that is willing to accommodate the work-school balance you require. For example, it’s important to find an employer who will offer flexibility in scheduling during midterms and final exams.

The Takeaway

Students who are planning on paying for college without their parents’ help can choose an affordable college option, apply for scholarships, get a part-time job, and apply for federal student aid. As a dependent student, applying for federal aid may be challenging without your parent’s support, because the FAFSA may be considered incomplete without their information.

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.

FAQ

What are some cost-effective college options for students without parental financial support?

Students can reduce expenses by attending in-state public colleges or starting at a community college before transferring to a four-year institution.

Are there student loan options available for those without parental assistance?

Yes, students can apply for federal unsubsidized loans and, if necessary, private student loans, though the latter may require a cosigner and often come with fewer borrower protections.

What strategies can help students minimize college-related expenses?

Implementing budgeting techniques, such as purchasing used textbooks, cooking meals at home, and seeking affordable housing options, can significantly reduce overall college costs.

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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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With the cost of higher education at an all-time high, many students need financial assistance to pay for tuition, room and board, books, and more. In fact, in the U.S. alone, nearly 43 million borrowers are carrying over $1.7 trillion in student loan debt.

Taking out student loans may be the first major financial commitment you make, and it’s a decision that has the potential to affect your financial situation for years to come. So it’s crucial to understand the terms you’re signing up for and all the options available.

To help you get started, here’s a quick guide to student loans. We’ll break down the basics of how loans work, how to apply for both federal and private student loans, and what to expect after you graduate.

What Is a Student Loan?

Student loans let young people borrow the money they need to pay for their education. Like other types of loans, this money must be repaid in the future, with interest.

Student loans can be borrowed by the student or, in some cases, by their parents. When a student loan is borrowed by a parent to pay for their child’s education, it may be called a parent loan.

The way student loans work is similar to other loans, but the application process is different, especially when it comes to federal student loans (more on that below). Federal student loans are funded by the federal government.

With private student loans, the application process is similar to other types of loans. Potential borrowers will file an application directly with the bank of their choice.

What Can Student Loans Be Used For?

Student loans can be used to pay for a student’s qualified educational expenses. These include things like tuition, books and supplies for classes, and fees charged by the school.

They can also be used to pay for room and board, living expenses, commuting to school, and a laptop or computer used for school.

Private student loans can even be used to pay off an outstanding tuition balance. Each lender determines how far in the past a loan can be used to pay an overdue balance, but many will allow loans to cover past-due balances that are 6-12 months outstanding. Also, keep in mind that you can apply for a private student loan at any time, and paying before the bill is due is preferable so you don’t have any interruptions in enrollment or class scheduling.

Graduate students are also eligible for federal aid and are encouraged to complete a grad school FAFSA.

Recommended: What Can You Use Student Loans For?

The Two Main Student Loan Categories

Student loans fall into two main categories, federal and private. Federal loans, which are funded by the federal government, offer some advantages and protections for borrowers. These special features, which are not common with regular loans, include:

•   Lower, fixed interest rates (what you pay the lender for loaning you the money) that offer a better deal than private student loans.

•   Income-driven repayment plans, which base your monthly payment after graduation on your salary.

•   Temporary relief programs for graduates who are facing unemployment or other hardship.

Federal Student Loans

Federal student loans are provided by the government. However, your payments and loan management are usually handled through an independent company called a student loan servicer.

To see if you qualify for a federal loan and other federal student aid, you need to fill out the Free Application for Federal Student Aid, commonly referred to as the FAFSA®. The application must be filled out every year you want to apply for federal student aid.

There are a few different types of federal student loans. The main federal student loans are:

•   Direct Subsidized Loans: Direct Subsidized Loans are available to eligible undergraduates with financial need. The interest that accrues while students are enrolled in school and during the grace period is covered by the U.S. Department of Education.

•   Direct Unsubsidized Loans: Direct Unsubsidized Loans are available to eligible undergraduates and graduate students regardless of financial need.

•   Direct PLUS Loans: Direct PLUS Loans are available to parents of undergraduate students and to graduate or professional students for expenses not covered by financial aid.

Check out our breakdown of the different types of federal student loans for details on how these loans work and the distinctions between them.

Private Student Loans

Private student loans are issued by non-government lenders, such as banks, credit unions, or other financial service companies. A potential borrower’s eligibility and terms will depend on their credit history (their financial track record) and other factors.

Parents or even family friends can cosign with a student who may not be able to qualify for a private student loan on their own. Unlike federal loans, repayment on private student loans may start while the borrower is still enrolled in school.

Unlike their federal counterparts, private student loan lenders may not offer the same safety-net protections in cases of financial hardship or unemployment. So be sure to understand the terms before taking a private student loan. Private loans tend to be the last option for paying for college after all other methods of financial aid have been exhausted.

Recommended: Guide to Private Student Loans

Understanding How Student Loans Work

Understanding the difference between federal and private student loans is the first step in navigating how college loans work. Here is other essential information:

Student Loan Application Process

Applying for federal student loans requires students to complete the FAFSA every year they attend college. Some people assume they won’t meet the requirements for FAFSA federal aid because of their parents’ income or a low GPA, but that’s usually not the case.

Everyone who might need help paying for college should fill out the FAFSA. Aside from federal student loans, there are state and school-based scholarships, grants, and work-study programs that you may qualify for. The FAFSA form is generally available on October 1 for the following school year and can be completed online.

If you’re opting for private student loans, find a reputable lender and make sure your school and program are eligible for their offerings. The application process may or may not have a fee, depending on the lender.

Private lenders typically want applicants to provide basic personal and financial details, and may also consider credit history. As mentioned above, lenders may allow potential borrowers to apply for a private student loan with a cosigner, such as a parent.

Recommended: High-Income Financial Aid

Student Loan Interest Rates and Fees

Interest is a percentage of the unpaid principal loan amount that is paid to the lender in exchange for borrowing money. Federal student loans have fixed interest rates, and interest is accrued on a daily basis.

The interest rate on federal direct subsidized and unsubsidized loans for undergraduates for the 2024-2025 school year is 6.53%. Interest rates on federal student loans are set annually by Congress.

Fixed-rate student loans have an interest rate that stays the same over the life of the loan. Although the rate might start off higher than on variable-rate loans, it won’t change as general interest rates fluctuate.

The way interest on private student loans works is different. Private student loans may have either fixed or variable interest rates. Variable-rate loans, also called floating-rate loans, have an interest rate that can vary every month, quarter, or year. Rates usually start off lower than a fixed-rate loan, but can fluctuate dramatically over the life of the loan.

If you expect to pay off your student loans quickly, you may consider a variable-rate loan. But if you’re not sure how much you’ll be making after you graduate or you don’t think you’ll be able to pay your student loans off fast, a fixed-rate loan might be a better choice.

Private student loans will have different interest rates depending on the lender and the borrower’s credit history.

Repaying Your Loan

As long as you’re still in school at least part-time, students aren’t required to make payments on federal loans. The exception for federal student loans is PLUS Loans, which require borrowers to start making payments as soon as they receive the entire loan amount.

Your federal loan servicer should give you a student loan repayment schedule that tells you when your first payment is due and how much you owe. There are a few different repayment plans available for federal student loans. Borrowers can change their repayment plan at any time without incurring fees.

Most federal student loans have a six-month grace period, which gives you a break after you leave school before you have to start paying your loans back. Some private lenders also offer grace periods, but it’s not a guarantee. Unless the loan is a federal unsubsidized loan, it will likely accrue interest during the grace period.

Private lenders determine when repayment begins on a private student loan, so review your student loan agreement closely before signing.

The Takeaway

Student loans can make it possible for young people to attend college, but just like other types of loans, student borrowers are charged interest. Federal loans have fixed interest rates and generally have a six-month grace period following a student’s departure from school. They also come with borrower protections and benefits like income-driven repayment plans.

Private student loans can be helpful if a student did not receive enough federal aid in the form of federal student loans, scholarships, grants, and work-study. Lenders determine the interest rate and terms partly based on the borrower’s credit history. Interest rates may be either fixed or variable. Private student loans do not carry the same federal borrower benefits.

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.

FAQ

What is the difference between federal and private student loans?

Federal student loans are provided by the government and typically offer fixed interest rates and flexible repayment options, while private student loans come from banks or lenders and may have variable rates and stricter terms.

How does interest work on student loans?

Interest on student loans is the cost of borrowing money, calculated as a percentage of the loan amount. Federal loans typically have fixed interest rates set by the government, while private loans may have fixed or variable rates. Interest begins accruing immediately on most loans (except Direct Subsidized Loans) and adds to the total repayment amount.

How are student loans paid out?

According to the Federal Student Aid website (StudentAid.gov), your school will give out your loan and grant money in at least two payments, called disbursements. Usually, you’ll receive a payment once per term (semester, quarter, etc.). If you accept a work-study job, you’ll be paid at least once a month.

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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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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