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Federal PLUS Loans are an accessible option for graduate students and parents of college students.

Parent PLUS Loans are federal loans for parents of undergraduate students. They offer flexible repayment options, fixed interest rates, and higher borrowing limits.

Direct PLUS Loans, also known as grad PLUS Loans, are available to graduate and professional degree students. Both parent and grad loans fall under the Direct Loan Program operated by the federal government.

What Is a Parent PLUS Loan?

Parent PLUS Loans can be borrowed by parents of undergraduate students in order to help their child pay for college. These loans are funded by the U.S. Department of Education and are part of the Direct Loan Program.

Unlike other types of federal student loans, Parent PLUS Loans do require a credit check. If an applicant has an adverse credit history, they may not be approved to borrow a Parent PLUS Loan.

💡 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.

How Do Parent PLUS Loans Work?

As noted previously, Parent PLUS Loans are available to all qualifying parents of undergraduate students. Borrowers with poor credit history can ask an “endorser” to cosign the loan, or borrowers can send a report clarifying their credit history to be considered.

The loan amount is limited to your child’s cost of attendance (COA), less any other aid awarded to the student. The interest rate is fixed for both loan types, and interest accrues the moment it’s released, even during deferment. For the 2024-25 academic year, PLUS Loans have an interest rate of 9.08% and an origination fee of 4.228%.

Like other loans in the Direct Loan program, a third party company called a “loan servicer” manages customer service around general billing requests such as repayment and deferment.

Parent PLUS Loan Application Process

The first step in borrowing a Parent PLUS Loan is to have your child fill out the FAFSA or Free Application for Federal Student Aid. This is required before a parent can request a PLUS Loan. After the FAFSA® is taken care of, parents can submit an online application for a PLUS Loan.

Before applying for a PLUS Loan, remove any security freezes on your credit bureau files. Any active credit freezes will prevent an application from being processed.

It may take upwards of 20 minutes to complete the application, and you’ll generally need the following information:

•   Verified FSA ID (your StudentAid.gov login)

•   School Name

•   Student Information

•   Personal Information

•   Employer’s Information (such as the employer’s name, address, and phone)

A verified FSA ID is a unique ID that acts as a legal electronic signature. It should only be used by that applicant.

After being approved for the PLUS Loan, borrowers will be required to fill out the Master Promissory Note (MPN). This indicates that you agree to the terms of the loan.

Recommended: Do You Have to Apply for a Parent Plus Loan Every Year?

Filling Out the FAFSA

The FAFSA is required for all forms of federal student aid, including grants, work-study, and federal loans. Some state and school-specific aid may also be awarded based on information included on a student’s FAFSA form.

Applicants who submit a FAFSA get a Student Aid Report (SAR) that summarizes the form’s information. It will include your Student Aid Index (SAI) and your eligibility for federal grants and loans, among other details. Schools listed on your FAFSA get a copy of this report to determine aid.

Recommended: FAFSA Guide

Determining Your Eligibility

Borrowers must fulfill the following basic requirements:

•   Be the legal guardian of an undergraduate enrolled in a higher ed program part-time or full-time

•   Fulfill general federal student aid requirements, such as citizenship

•   Not have an adverse credit history

How Much Can You Borrow?

Parent PLUS Loan borrowers can take out the total cost of attendance of the program their child is enrolled in, less the amount in scholarships or other forms of aid.

How Much Do You Want to Borrow?

It can be tempting to borrow to make paying for college easier, but be cautious of overborrowing. Parent PLUS Loans have costlier fees and rates, with the latest interest rate at 9.05%, combined with a 4.228% origination fee.

For income-earning parents, it may be easier to measure the amount of student debt you should take on. As a general rule of thumb, all debt, including student loans, should not exceed more than 20% of your annual or projected annual take-home pay.

Filling Out Your Parent PLUS Loan Application

Prospective students and parents of prospective undergraduates fill out a Parent PLUS Loan application online. Grad PLUS Loan applications are separate online forms.

Enrollees will have the option to sign up for in-school deferment and get a credit check on the spot. Borrowers can also view a demo to see what the application entails before applying.

Recommended: Grad PLUS Loans, Explained

Signing a Promissory Note

Once you complete the PLUS Loan application, you’ll be directed to complete a Master Promissory Note (MPN). An MPN spells out a borrower’s rights and responsibilities in the loan agreement.

Loans will not be awarded until an MPN is completed.

You’ll be asked to fill out personal information and provide two references as future contacts in case you’re unreachable.

What to Expect After Applying

Approved loans will be disbursed to the school you’re enrolled in and they’ll apply the loan to outstanding fees, tuition, and/or room and board. If there are funds left over, you can cancel the remainder or choose to keep it for discretionary expenses related to higher ed day-to-day living.

What If You Are Denied?

If you are denied a loan, you may be able to add an endorser, or cosigner, to your application. An endorser is someone who agrees to pay your loan if you are unable. If you were denied for having an adverse credit history, you will likely need to complete an online PLUS Credit Counseling course.

Recommended: Guide to Grad PLUS Loan Credit Score Requirements

How Long Until the Loan Is Disbursed?

Each school pays out loans on a different schedule. Once the federal government has processed your paperwork and released funds, schools handle the process afterwards. If you have questions about when your loan will be disbursed, contact the financial aid office at your child’s school.

When Do You Need to Begin Repayment?

Repayment for Parent PLUS Loans begins immediately upon the last disbursement of the loan or after deferment, depending on the repayment plan you select.

If you request a deferment, you are able to pause payments until six months after your child graduates from college. If you are interested in this option, you can make this selection on the PLUS Loan application or request it directly with the loan servicer. Interest will accrue even while the loan is in deferment.

Income-Driven Repayment Options for Parent PLUS Loans

Parent PLUS Loan borrowers are able to enroll in an income-driven repayment plan if they first consolidate the loan through the Direct Consolidation Loan Program. Income-driven repayment plans tie the monthly payments to your income and repayment takes place over a period of 20 to 25 years.

On these plans, your loan payment may fluctuate each year depending on your income and family size. At the end of your repayment period, any outstanding balance is forgiven, but under certain circumstances, this forgiven amount may be considered taxable income by the IRS.

The Takeaway

PLUS Loans are federally funded loans available to graduate students and parents of undergraduate students. Applying for a PLUS Loan is a straightforward process when you understand the key steps and requirements. By ensuring you meet the eligibility criteria, gathering the necessary documentation, and completing the application accurately, you can secure funding for education expenses efficiently.

Other ways to pay for college include cash savings, scholarships, grants, and private student loans. Federal loans, including PLUS Loans, come with certain benefits and protections, and should be used prior to looking into 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.

FAQ

How long does it take for approval for a Parent PLUS Loan for college?

Loan applications are preliminarily approved or denied on submission and schools are notified within 24 hours. Applicants must pass eligibility requirements after completing the application. A Master Promissory Note and the FAFSA also must be completed prior to loan awards. Disbursement processing times differ with each school.

Can you be denied a Parent PLUS student loan?

Yes, if you have an adverse credit history you may be denied a PLUS Loan. You can get a PLUS Loan with an endorser or documentation proving extenuating circumstances around your history. Examples include foreclosure or bankruptcy.

What is the maximum borrowable amount for a Parent PLUS Loan?

The maximum borrowable amount allowed is the cost of attendance (COA), which is determined by schools.

Photo credit: iStock/solidcolours

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.

SOISL-Q324-060

A college education is an investment in the future. But as with any investment, it’s important to consider what you’ll get in return — your ROI — to determine if the cost is worth it. And so college students and their parents are weighing the cost of college against future earning potential, as well as intangibles like friendships, network building, and soft skills.

This guide explores the “return on education” for bachelor’s degrees, and offers insights into how to maximize the value of your college education.

Average Cost of a Degree

Choosing the right college is a multifaceted decision. Considerations include where the school is located, whether it has programs that meet your interests, what student culture is like, and of course price.

The price tag for college can be jaw dropping. The average cost of college for an in-state student attending a four-year university is $27,146 per year (including living expenses). Students that attend private, nonprofit universities spend an average of $58,628 per year living on campus.

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

Return on Investment by Education Level

You can determine your ROI by education level by looking at the ratio of the cost of your degree to your expected income once you graduate. Your return on education is much like a traditional ROI calculation, which looks at the ratio between net profit and cost from investing resources.

In this case, time and money are the resources you’re investing, and your future income is the profit. The ROI for your education will depend largely on how much you spend on your schooling, what type of job you get after school, and to a certain extent what you major in.

Median 40-year ROI for a College Degree, per Education Data Initiative

Associate Degree Return on Investment

Associate degrees can typically be completed in one to two years and often at a community college, which can make them more affordable than four-year degrees. According to data from the Education Data Initiative, the ROI for an associate degree is 363.5% after 20 years.

Bachelor’s Degree Return on Investment

Bachelor’s degrees typically take students four years to complete. According to Education Data Initiative, the ROI for a bachelor’s degree is 38.1% after 20 years. Keep in mind, though, that this estimated return on investment can vary greatly based on the major you pursue. For example, computer science degrees offer an ROI of 716.6%.

Master’s Degree Return on Investment

A master’s degree can be completed after a student receives their bachelor’s degree. This degree allows the student to specialize in a specific area of interest, such as those who pursue a Master in Business Administration, or MBA. The ROI for a master’s degree is 90.1% after 20 years, according to Education Data Initiative.

Doctoral Degree Return on Investment

A doctoral degree is generally the most advanced degree one can get in a particular field. Doctorates can take up to eight years to complete, though the exact timing will vary depending on factors like the program type, structure, and research being completed by the doctoral candidate. The estimated ROI for doctorate degrees is 84.0% after 20 years, according to Education Data Initiative.

Professional Degree Return on Investment

Professional degrees are advanced degrees that prepare a student to work in a particular field, such as law or pharmacy. After 20 years, the ROI for a professional degree is 60.4%, according to Education Data Initiative.

Highest Earning Degrees

The return on education will vary depending on the degree program you choose. For example, a student with a computer science degree may earn more than an English major. There are exceptions, but it’s a good idea to understand the norm for particular fields. These are some of the highest-earning degree programs.

Associate Degree

As mentioned, an associate degree takes about two years to complete and can often be finished at a community college for significantly less than it may cost to get a four-year degree. Associate degrees often allow students to specialize in a specific trade or field, and in some cases, this specialization can lead to a high-earning career.

One of the top-earning post-associate degrees is air traffic controllers. According to the Bureau of Labor Statistics (BLS), air traffic controllers earn a median income of $137,380.

Dental hygienists, MRI technicians, and funeral service managers all earn an average salary of $70,000 or higher, making them top associate degrees based on earning potential, as well.

Bachelor’s Degree

According to Best Colleges, some of the bachelor’s degrees with the highest earning potential include chemical engineering, computer engineering, computer science, finance, and business analytics.

For example, in 2023, chemical engineers earned a median salary of $112,100. Financial analysts earned a median salary of $99,890 per year, according to the BLS.

Certifications

Some people may consider adding a certification to their resume in order to boost their earning potential. Professional organizations often award certifications for specific skill sets. Some top earning and in-demand certifications include those for project management and data engineering.

Recommended: Guide to Student Loans for Certificate Programs

Bachelor’s Degree ROI by Major

The ROI can vary quite a bit based on the type of bachelor degree pursued. As mentioned, computer science degrees have some of the best ROI for bachelor’s degrees — about 716.6% over 40 years, according to Education Data Initiative. Take a look below at a list of majors and their estimated ROI after 40 years, according to Education Data Initiative:

•     Business finance — 710.2%

•     Business accounting — 547.2%

•     Electrical engineering — 517.8%

•     Biology — 225.0%

•     Communications — 209.3%

•     Architecture — 188.6%

•     Fine Art — 70.5%

Consider What Can’t Be Measured by Money

Yes, going to college or pursuing other higher education opportunities can be expensive. But in addition to the cost and potential boost in earning potential, there are a variety of intangible benefits that can’t be measured by a dollar. For example, college students living on campus are gaining a newfound independence and developing life skills they’ll carry with them.

Plus, many colleges have strong alumni networks that can help when a student is looking for a job post-grad. Students have the chance to not only get to know themselves better, but in the process they may make lifelong friends.

Recommended: How to Budget as a College Student

Controlling Costs

One way to improve ROI is to lower the amount of money you are paying for school. This could be particularly useful if you already know you want to pursue a career in a relatively low paying field.

Scholarships

You can help offset the cost of tuition by looking for scholarship programs that help pay your tuition and other college expenses. Many schools offer need-based financial aid to families who might otherwise struggle to pay tuition costs. In some cases, you could even get a full ride.

You can find scholarships by looking at your school’s financial aid website, connecting with your guidance counselor, or reviewing databases or online scholarship search tools.

In some cases, you may be able to apply for unclaimed scholarships to help supplement the aid you have already received.

Grants

Students may qualify for grants directly from their school or through federal financial aid. Grants typically do not require repayment, so they can be an incredibly helpful addition to a student’s financial toolkit when it comes to paying for college. Pell Grants are one type of grant awarded by the federal government to students who demonstrate exceptional financial need.

Pell Grants are available to undergraduate students. In order to maintain eligibility for a Pell Grant, undergrads will also be required to meet satisfactory academic progress requirements.

Student Loan Forgiveness Programs

If you need to take out student loans to help pay for college, keep an eye on your terms and interest rates to help keep costs down. If you take out federal loans and plan to work for certain non-profits or government organizations, you may be eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program. After making 10 years’ worth of qualifying monthly payments, the remaining balance of your loan may be forgiven through this program.

Private Student Loans

Private student loans don’t qualify for federal benefits like PSLF, but they can be helpful tools for students who have exhausted their federal financial aid.

If you are interested in paying for college or another higher education degree with a private student loan, take the time to shop around and review interest rates, terms, and other fees or benefits offered by lenders. 

Employer Support After Graduation

Finally, some employers may also help you pay back your student loans as part of a benefits package. Consider working for an employer who offers these benefits.

Recommended: Finding Jobs That Pay Off Student Loans

The Takeaway

College students can estimate the return on their educational investment by looking at how much they’ll pay for their degree and comparing it to their lifetime earnings. Though important, the money you’ll eventually earn isn’t the only thing you should consider when choosing a college. Getting a bachelor’s degree can help you acquire skills and expand your horizons in ways that aren’t directly related to your degree or job prospects.

When you decide on the right school for you, take the time to consider all your options — including scholarships, grants, federal and private student loans, post-graduation repayment programs, and other sources of public and private funding — to help you achieve your education and career goals.

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 average return on investment for a college degree?

The average return on investment (ROI) for a college degree varies by field, but generally, bachelor’s degree holders earn significantly more over their lifetime than those with only a high school diploma. On average, the ROI for a college degree ranges from 9% to 10%, but can be higher depending on the major and institution.

Which degree has the highest return on investment?

Degrees in fields like engineering, computer science, and technology typically have the highest return on investment (ROI). These degrees often lead to high-paying jobs with strong job security and growth prospects, resulting in a significant lifetime earning advantage compared to the cost of education, making them highly valuable investments.

Is a bachelor’s degree a good investment?

A bachelor’s degree is generally a good investment as it can lead to higher lifetime earnings, greater job stability, and more career opportunities compared to having only a high school diploma. However, the return on investment depends on the chosen field, the cost of education, and individual career goals and outcomes.

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.

SOISL-Q324-052

Undergraduate students who have financial need can apply for the federal Pell Grant each year to receive aid for their education. If you meet the Department of Education’s (DOE) requirement for the grant program, be aware that there is a Pell Grant lifetime limit. Eligible students can receive a Pell Grant for about six years, or 12 terms of school.

Once you’ve reached the maximum number of times you can get a Pell Grant, you’ll be ineligible for future awards.

Keep reading to learn more on what the Pell Grant is, how to qualify, how the lifetime Pell Grant limit works, and other ways to pay for college.

What Is a Pell Grant?

A Pell Grant is a government-sponsored program that offers aid to undergraduate students who demonstrate exceptional financial need. The grant is not available to graduate and professional students. In general, students who have previously earned a bachelor’s degree or higher are not eligible for a Pell Grant.

Students applying for Pell Grant funds for the 2024-25 academic school year can receive up to $7,395.

How many Pell Grants you can get depends on factors including your financial need, your school’s confirmed cost of attendance, whether your enrollment status is part-time or full-time, and how long you plan to attend school each year.

Upon completing your degree program, Pell Grants generally do not need to be repaid.

FAFSA

To learn if you’re eligible for a Pell Grant, you need to complete a Free Application for Federal Student Aid (FAFSA®). The information on this application is used to determine your eligibility for the Pell Grant as well as other federal, state, and school-provided financial aid.

You can submit the FAFSA as early as October 1 before the academic year for which you’re applying for aid. The deadline to submit your FAFSA for the 2024-2025 school year is June 30, 2025. (Note that many students may not get access to the 2025-2026 FAFSA until December 1, 2024.) Some aid is awarded on a first-come-first-served basis, so it can behoove you to fill out your FAFSA earlier rather than later.

Recommended: Pell Grant vs FAFSA: What Are the Differences?

Eligibility

The government determines whether an undergraduate student meets the financial need requirement for a Pell Grant by evaluating the student’s Student Aid Index (formerly Expected Family Contribution). This is an estimation of how much a student and their family can be expected to pay toward college, and it is calculated using information provided on the FAFSA.

For the 2024-25 school year, the maximum SAI for Pell Grant eligibility is $4,730 or 35% of parents’ combined income from work, whichever is less. Students who are at or below this threshold might be able to receive Pell Grant aid.

How Many Pell Grants Can You Get?

You can apply for a Pell Grant for multiple academic years as long as you maintain your eligibility. As previously mentioned, students can receive the Pell Grant for up to 12 semesters or terms, or approximately six years.

How Lifetime Eligibility Works

Each award year is from July 1 of a calendar year to June 30 of the following year. In an award year, you can receive up to 100% of your eligible Pell Grant award; the Pell Grant lifetime limit that you can use is 600%.

In some situations, you might receive up to 150% of your Pell Grant aid (e.g., if you’re enrolled in fall, spring, and summer terms, full-time). Similarly, you might not always use 100% of your Pell Grant for an award year. This might come up if your enrollment dropped from full-time to part-time, for example.

Calculating Your Pell Grant Usage

To determine the Lifetime Eligibility Used (LEU) on your financial aid account, the DOE looks at how much Pell Grant funding you’ve received in a given award year compared to your total available award for that year to arrive at a use percentage.

It then adds your used Pell Grants for each award year to determine whether you’ve reached the lifetime limit for the grant program. If you’d like to track your own LEU percentage, log into your StudentAid.gov account and view the “My Aid” overview.

Alternatives to the Pell Grant

If you’ve reached your Pell Grant lifetime limit, or don’t qualify for the Pell Grant but still need financial assistance for school, there are other options to consider.

Other Grants

Pell Grants are just one of a handful of grants for college offered by the federal government. The DOE also provides:

•   Federal Supplemental Educational Opportunity Grants

•   Iraq and Afghanistan Service Grants

•   Teacher Education Assistance for College and Higher Education (TEACH) Grants

For the most part, grants don’t need to be repaid. Additionally, non-federal grants are provided to students based on need or merit. These grants are provided by some states and schools, as well as private organizations like nonprofits, businesses, community groups, and professional associations.

Recommended: FAFSA Grants & Other Types of Financial Aid

Scholarships

Another financial aid option that you won’t have to repay after graduating are scholarships. Scholarships are earned on merit or are provided to students who are in financial need. They are often one-time awards that are given by similar entities as grants.

In some cases, there may even be unclaimed scholarships that students may be able to apply for in order to bolster the money they have to pay for college.

Recommended: The Differences Between Grants, Scholarships, and Loans

Work-Study

Participating in a federal work-study program allows students to earn income that can go toward college costs. Employers that participate in the program might be on campus or off campus, and jobs offer part-time hours.

Your school provides your payment directly unless you request otherwise. How much you can earn through the program depends on your financial need, your school’s available funding, and when you apply.

Eligibility for the program is determined by information provided on the student’s FAFSA.

Federal Student Loans

The FAFSA is also used to determine borrower eligibility for Federal Direct Loans. The DOE offers undergraduate students loans that are Direct Subsidized or Unsubsidized Loans. The government covers interest on subsidized loans while the borrower is enrolled in school and during qualifying periods of deferment. With an unsubsidized loan, borrowers are responsible for paying accrued interest.

Graduate students are able to borrow Direct Unsubsidized Loans and PLUS Loans. PLUS Loans are also available to parents of dependent students.

Federal loans must be paid back with interest, but they offer low, fixed rates. They also offer student borrowers invaluable benefits, like income-driven repayment plans and generous deferment and forbearance options.

Private Student Loans

Some students find that they still need additional funds for school despite receiving federal financial aid. If you’ve exhausted your federal aid options and already applied to private scholarships and grants, you may want to look into private student loans.

A private student loan must be repaid, plus interest charges, and is provided by nonfederal lenders, like banks, credit unions, and online lenders. Lenders require applicants to undergo a credit check, which determines your eligibility, interest rate, and loan terms.

Borrowing requirements and offers often vary between lenders, so always shop around to find competitive rates and terms for undergraduate private student loans.

The Takeaway

Generally, if you maintain Pell Grant eligibility throughout your college career, you have can receive a maximum Pell Grant lifetime limit of six years to receive aid. However, you might reach this limit in a shorter or longer time depending on your level of enrollment each award year.

Other options to pay for college include cash savings, scholarships, work-study, 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.

FAQ

Can you hit your Pell Grant lifetime limit early?

Yes, it’s possible to reach your Pell Grant lifetime limit before the typical six-year timeline if you take on additional academic terms during an award year. For example, if you enrolled in summer courses and received Pell Grant aid for that period, you may hit your max sooner.

Is the Pell Grant disbursed every semester or every year?

Your school will typically disburse Pell Grant awards in a minimum of two disbursements at scheduled intervals throughout the award year.

Is there an age limit for filling out FAFSA?

No, there is no age limit to submit a FAFSA. Some financial aid programs, like the Pell Grant, have restrictions on the academic status of aid recipients, such as whether they’re enrolled as an undergraduate or post baccalaureate student.

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.

SOISL-Q324-062

Grants, scholarships, and student loans can all help you pay for your education. But there are key differences between the three — namely, how they award funds and whether you need to repay those funds. Grants and student loans often depend on financial eligibility and need, while scholarships tend to be merit-based. And while both grants and scholarships don’t need to be repaid, student loans do.

Here’s a breakdown of how student loans and grants vs. scholarships work, as well as some of their key differences.

What Is a Student Loan?

A student loan is money borrowed for educational expenses that has to be paid back (usually with interest). You can take out a loan from a bank, an online lender, a college or university, or the state or federal government. If you’re wondering about grants vs. loans, both are based on financial need, but what sets them apart is that grants don’t need to be repaid and student loans do.

So, how do student loans work? Loan terms for college can vary based on a few different factors: whether they’re federal (offered by the government) or private (offered by a financial institution), whether you choose fixed or variable interest rates, how long it takes to pay the loan back, and how much can be borrowed. Loans offered to you could be based on your credit score or the personal financial information you supply on the Free Application for Federal Student Aid (FAFSA®).

How to Apply for Student Loans

To determine your eligibility for a student loan from the federal government, you must fill out the FAFSA. States and colleges may use information from your FAFSA to determine state and school-specific aid, as will some private financial aid providers.

To fill out the FAFSA form, you’ll need a few pieces of information, including:

•   Your Social Security number or alien registration number (if you are not a U.S. citizen)

•   Your driver’s license number (if you have one)

•   Federal income tax returns, W-2s, and other records of money earned

•   Bank statements and records

•   Records of untaxed income (if applicable)

•   Information on account balances, investments, and assets

•   FSA ID for electronic signature (this is your username and password needed to access and submit your FAFSA online)

If you are applying as a dependent student, you will need all of the above information from your parent(s) as well.

What Is the Difference Between Unsubsidized and Subsidized Loans?

There are two primary types of federal student loans: subsidized loans and unsubsidized loans. The main difference between unsubsidized and subsidized loans is how the interest accumulates through the life of the loan.

Unsubsidized loans are available to undergraduate and graduate students, regardless of any financial need. An unsubsidized loan starts accruing interest as soon as the loan is dispersed. That means if you accept an unsubsidized loan during your freshman year of college, the loan will accumulate interest throughout the rest of your time in school.

You are responsible for starting to pay back an unsubsidized loan six months from when you graduate or if you drop below half-time enrollment. Because of the interest capitalizing on your unsubsidized loan from the day it’s disbursed, your loan balance will likely be more than what you originally borrowed if you don’t make interest payments while you’re in school.

A subsidized loan, on the other hand, is a need-based loan available to undergraduate students on which interest accumulates only after you begin repayment. The government will pay the interest while you’re in school at least half-time or until you graduate and for the first six months after, as well as during a period of deferment.

Like unsubsidized loans, repayment for a subsidized loan typically occurs after a six-month grace period from when you graduate or drop below half-time enrollment. You are responsible for paying back the total outstanding balance, plus interest. There are plenty of ways to pay off federal loans, from the standard 10-year repayment plan to income-based repayment plans.

Pros and Cons of Loans

Pros of student loans include:

•   Access to education: Enables students to attend college who otherwise might not be able to afford it.

•   Flexible repayment options: Federal student loans offer flexible repayment options, including income-based repayment plans.

•   Credit building: Paying back student loans on time each month can help establish and build credit history.

•   Fixed interest rates: Federal student loans (and some private student loans) offer fixed interest rates, making monthly payments predictable each month.

Cons of student loans include:

•   Debt burden: Student loans increase debt load and debt-to-income ratio, which can lead to financial strain and/or make it hard to qualify for other loans in the future.

•   Interest accumulation: Interest starts accumulating immediately on unsubsidized loans and private loans. This increases the overall amount that needs to be repaid.

•   Stress and anxiety: Debt of any kind, including student loans, can cause significant stress and anxiety, which could impact your overall well-being.

What Is a College Grant?

A grant can be beneficial to students because it is financial aid that does not have to be repaid. That’s one main difference between a grant vs. a loan. Grants may be obtained directly from your university, the federal government, state government, or a private or nonprofit organization. It is important to note that you may be required to meet certain financial eligibility criteria, depending on the grant.

When it comes to a grant vs. a scholarship, grants are typically awarded based on need, not on academic achievement or merit. Scholarships are based on merit.

One popular type of college grant is the Pell Grant. Pell Grants are given to undergraduate students with significant financial need, which means they are typically awarded to low-income students.

Do You Have to Pay Back Grants?

In most cases, you do not need to pay back grants as long as you maintain eligibility. If, for example, you decide to drop out of school, you might be required to pay back certain grants.

You might also need to pay back grants if you withdraw early from a program in which the grant was awarded, or if you did not meet a service obligation, as is required for the Teacher Education Assistance for College and Higher Education (TEACH) Grant, for example.

How to Apply for Grants

To apply for grants, start by researching and identifying grants for which you qualify, focusing on those specific to your field of study, background, or needs. Visit the official websites of grant providers, such as federal and state governments, educational institutions, and private organizations, and carefully review their eligibility requirements and application deadlines. Prepare all necessary documents, which may include academic transcripts, letters of recommendation, a personal statement, and financial information.

Also, you’ll need to fill out the FAFSA if you are in the United States, as it is often required for federal and state grants.

Pros and Cons of Grants

Pros of grants include:

•   No repayment required: Grants are essentially free money that does not need to be repaid, making them highly beneficial for students.

•   Financial relief: Provide significant financial assistance, reducing the amount of student loans needed and easing the financial burden of education.

•   Encourages academic excellence: Some grants are merit-based, encouraging students to maintain high academic performance.

Cons of grants include:

•   Highly competitive: Grants are often limited in number and highly sought after, making them difficult to obtain.

•   Strict eligibility requirements: Many grants have specific criteria that must be met, which can exclude a significant number of applicants.

What Is a Scholarship?

Scholarships are a great way to finance higher education, simply because there are thousands of available scholarships based on financial need or merit. That’s the main difference between scholarship and grant: Scholarships are often merit-based. Scholarships can come from a variety of sources and typically do not need to be repaid.

How to Apply for Scholarships

It can be easy to feel overwhelmed with the amount of time it takes to hunt for scholarships — here are a few tips to help you find scholarships to apply for:

•   Start by combing scholarship databases for any scholarship that may align with your interests or background. Don’t be afraid to tell people you know that you are looking for scholarships either — your best friend or neighbor may have heard of a scholarship you could be eligible for.

•   Take a look at your academic achievements. Have you maintained a certain GPA or did you make the Dean’s List? There could be a scholarship for that. List out your community involvements and start researching whether your softball league, for example, offers scholarships.

•   Make a list of all the things that make you who you are. List out your heritage and things that your family members have been involved with over time. Perhaps your grandmother belongs to the National Corvette Club or your grandfather was a veteran, both of which could present scholarship opportunities.

Once you have your list, it helps to stay organized by adhering to deadlines and application requirements. Stick to what feels doable so you can knock out several applications in a row. Scholarship application formats vary from essay writing to creating a video to simply filling out a form.

Important documents you might need when applying for scholarships include birth certificates, SAT/ACT scores, academic transcripts, certifications, or ID cards. Be sure you have those handy prior to hitting search engines and applying for the next available scholarship you find.

Pros and Cons of Scholarships

Pros of scholarships include:

•   No repayment needed: Scholarships provide financial assistance that does not need to be repaid, reducing the overall cost of education.

•   Merit recognition: Often awarded based on academic, athletic, or other achievements, recognizing and rewarding students for their talents and hard work.

•   Boosts resume: Being awarded a scholarship can enhance a student’s resume, showcasing their achievements and dedication.

•   Encourages academic excellence: Incentivizes students to maintain high academic standards and strive for excellence in their endeavors.

Cons of scholarships include:

•   Highly competitive: Scholarships can be very competitive, with many applicants vying for a limited number of awards.

•   Strict criteria to qualify: Strict eligibility criteria may exclude many students from qualifying for certain scholarships.

Grants vs Scholarships vs Loans

Now that you have a grasp on all three forms of financial aid, let’s examine the main difference between scholarships, grants, and student loans.

What Is the Difference Between a Loan and a Grant?

Here’s what makes grants vs. loans different: A student loan — whether it is unsubsidized or subsidized, federal or private — must be repaid with interest. A grant typically does not need to be repaid as long as you maintain eligibility requirements.

What Is the Difference Between a Grant and a Scholarship?

When looking at a grant vs. scholarship, the primary difference between the two is that a grant is typically need-based while a scholarship is usually merit-based. You might receive a scholarship for a number of things, such as high academic achievement, organization or club involvement, or ancestry. A grant is typically awarded based on financial need and can be specific to certain degrees, students, and programs.

How Is a Student Loan Different from a Scholarship?

A student loan is different from a scholarship primarily in that a student loan must be repaid and a scholarship does not need to be repaid. Scholarships can come from a variety of sources, including nonprofit organizations, private companies, universities and colleges, and professional and social organizations. Student loans may come from private lenders, federal or state governments, or colleges and universities.

The two types of student loans are federal student loans and private student loans. Federal student loans should be utilized first, as they typically come with better interest rates and borrower protections, such as income-driven repayment plans and student loan deferment. Private student loans can help fill in the gaps between federal loans, grants, and scholarships.

The Takeaway

With a good understanding of scholarships vs. grants vs. student loans under your belt, you can better determine which form of financial aid is right for your situation. Remember that you don’t necessarily have to choose just one.

Once you’ve maximized the money you can get from grants or scholarships that you likely won’t have to pay back, you may consider bridging the remaining gap by taking out a student loan.

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.

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.

SOIS-Q224-1920923-V1

When it comes to financing a college education, there are several very different options, and it’s important to understand the pros and cons of each.

Depending on your academic qualifications, you may have been awarded scholarships or grants, which is funding that won’t (typically) need to be repaid. Any expenses not covered by a scholarship will need to be financed, often through a combination of work-study, personal funds, and student loans.

It is fairly common for college students to take out student loans to finance their education. There are two main types of student loans — private student loans and federal student loans. We’ll compare and contrast some of the more popular features of both private and federal student loans and explore some features that can help you determine what makes the most sense for your financial situation.

Types of Federal Student Loans

Federal student loans are funded by the federal government. In order to qualify, you must fill out the Free Application for Federal Student Aid (FAFSA^®) every year that you want to receive federal student loans. We’ll delve more into the FAFSA soon — but first, here are some important distinctions to consider.

Subsidized vs Unsubsidized Loans

Federal loans can be subsidized or unsubsidized. If you’re an undergraduate student in financial need, you may qualify for a subsidized loan. The amount of money you qualify for will be determined by your school.

With subsidized loans, the U.S. government covers the interest that accrues while you are a full- or half-time student, during a six-month grace period after graduation, and for any periods of loan deferment.

If you receive an unsubsidized federal loan, you don’t need to demonstrate financial need when applying. Interest begins accruing from the day your loan is disbursed — though borrowers are not required to make payments until six months after graduation. As with subsidized loans, your school will determine the amount you can receive, based on your cost of attendance.

Direct PLUS Loans for Parents and Graduate Students

Direct PLUS Loans are another source of federal student loan funding. To qualify for graduate PLUS Loans, you need to be a graduate-level or professional student in a program that offers degrees or certifications, and attend college at least half-time.

Parents can also apply for a Parent PLUS loan if their dependent undergraduate student attends an eligible school at least half-time. “Parent” is defined as biological, adoptive, or sometimes a stepparent.

To obtain a Direct PLUS loan, you cannot have an adverse credit history. And you and your dependent child must meet the general eligibility requirements for federal student aid.

Recommended: How Do Student Loans Work? Guide to Student Loans

More About the FAFSA

If you plan to apply for any of these types of federal loans, you’ll need to fill out the FAFSA form. Be aware of your state’s FAFSA deadline — FAFSA funding is determined on a rolling basis, so the sooner you can apply, the sooner you may qualify.

The new FAFSA application typically is available on October 1 of the prior year. The 2025-26 FAFSA form is expected to be released on October 1, 2024.

Benefits of Federal Student Loans

First off, you won’t be responsible for making student loan payments while you are actively enrolled in school. Your repayment will typically begin after you graduate, leave school, or are enrolled less than half-time.

Another perk is that your credit history doesn’t factor into a federal loan application. One exception is Direct PLUS Loans for grad students and parents.

Interest rates on federal student loans are fixed and typically lower than interest rates on private student loans. Depending on the type of federal loans you have, the interest you pay could be tax-deductible.

When it comes to federal student loan repayment, there are several options to choose from, including several income-driven repayment plans.

If you run into difficulty repaying your federal student loans after graduation, or if you drop below half-time enrollment, deferment and forbearance options are available. These programs allow qualifying borrowers to temporarily pause payments on their loans should they run into financial issues — but interest may still accrue. The loan type will inform whether a borrower qualifies for deferment or forbearance. Borrowers can contact their student loan servicer for more information on these programs.

Qualifying borrowers can also enroll in certain forgiveness programs, such as Public Service Loan Forgiveness (PSLF). These programs have strict requirements, so borrowers who are pursuing forgiveness should review program details closely.

Federal Student Loan Pros and Cons

Here is a recap of some of the pros and cons of federal student loans.

The CARES Act and Federal Student Loans

The CARES Act, passed in March 2020 in response to COVID-19, temporarily paused payments on most federal student loans and set interest at 0%. With the signing of the debt ceiling bill in June 2023, the three-year pause came to an end. Interest on federal student loans resumed on September 1, 2023, and the first post-pause payments were due shortly after. To ease the transition, borrowers won’t be reported as delinquent if they are late with payments through September 2024.

The CARES Act and the payment pause did not apply to private student loans.

Private Student Loans

Private student loans are not funded by the government. To apply for them, you can check with individual lenders (banks, credit unions, and online lenders), with the college or university you’ll be attending, or with state loan agencies.

Because these loans are available from multiple sources, each will come with its own terms and conditions. So when applying for private student loans, it’s important to clearly understand annual percentage rates (APRs) and repayment terms before signing, as well as the differences between private vs. federal student loans.

Since private student loans are not associated with the federal government, their repayment terms and benefits vary from lender to lender. Some private loans require payments while you’re still attending college. Unlike federal loans, interest rates could be fixed or variable. If you are applying for a variable-rate loan, it’s a good idea to check how often the interest rate can change, plus how much it can change each time and what the maximum interest rate can be.

When applying for a private loan, the lender typically reviews your financial history and credit score, which means it may be beneficial to have a cosigner.

Be sure to ask your lender about repayment options in addition to any deferment or forbearance options. These will all vary by lender, so it’s important to understand the terms of the particular loan you are applying for.

Benefits of Private Student Loans

Private student loans offer several benefits that can make them an attractive option for some students. One significant advantage is their ability to cover the full cost of attendance, including tuition, fees, and living expenses, which can be particularly helpful if federal loan limits are insufficient.

Additionally, private lenders often provide a variety of loan options with different repayment terms and interest rates, allowing borrowers to choose a plan that best fits their financial situation and future income expectations. Some private loans offer competitive interest rates, especially for borrowers with excellent credit or those who have a creditworthy cosigner, potentially resulting in lower overall borrowing costs compared to federal PLUS loans.

Another benefit of private student loans is the potential for customization and flexibility in loan features. Many private lenders offer interest rate discounts for autopay enrollment, loyalty discounts for existing customers, and even the option to release a cosigner after a certain period of on-time payments.

Private loans can also be accessed more quickly than federal loans, which can be advantageous in time-sensitive situations.

Private Student Loans Pros and Cons

Here is a recap of some of the pros and cons of private student loans.

Private loans can help fill the monetary gap between what you’re able to cover with grants, scholarships, federal loans, and the like, and what you owe to attend college. It’s never a bad idea to take the time to do your research, shop around, and find the best loan options for your personal financial situation. For a full overview, take a look at SoFi’s private student loan guide.

Determining Whether a Student Loan Is Federal or Private

To find out if the student loan you have is a federal student loan, one option is to check the National Student Loan Data System (NSLDS). This database, run by the Department of Education, is a collection of information on student loans, aggregating data from universities, federal loan programs, and more.

Borrowers with federal student loans can also log into My Federal Student Aid to find information about their student loan including the federal loan servicer.

Private student loans are administered by private companies. To confirm the information on a private student loan, one option is to look at your loan statements and contact your loan servicer.

💡 Recommended: Refinance Federal Student Loans

Options for After Graduation: Consolidation vs Refinancing

After graduation, depending on one’s student loan situation, borrowers may wish to consider consolidation or refinancing options to combine their various loans into a single loan.

The federal government offers the Direct Consolidation Loan program that allows borrowers to combine all of their federal loans into one consolidated loan.

Loans consolidated in this program receive a new interest rate that is the weighted average of the interest rates of all loans being consolidated — rounded up to the nearest one-eighth of a percent. This means that the actual interest rate isn’t necessarily reduced when consolidated. If monthly payments are reduced, it is most likely because the repayment term has been lengthened. Additionally, only federal student loans are eligible for consolidation in the Direct Consolidation Loan program.

Student loan refinancing, on the other hand, means taking out a new loan and using it to pay off all the other student loans. Depending upon individual financial situations, applicants could qualify for a lower interest rate through refinancing.

When an individual applies to refinance with a private lender, there is typically a credit check of some kind. Each lender reviews specific borrower criteria that influences the rate and terms an applicant may qualify for.

Recommended: The SoFi Guide to Student Loan Refinancing

Combining Federal and Private Student Loans

Refinancing federal loans with a private lender is the only option that allows borrowers to combine both federal and private student loans into a single loan. While refinancing may allow borrowers to secure a competitive interest rate or preferable terms, it’s very important to understand that when you refinance federal student loans, they no longer qualify for federal benefits or borrower protections.

Refinancing may make sense for federal student loan holders who do not plan to take advantage of any federal programs or payment plans, but it won’t make sense for everyone. When you are evaluating whether you should refinance student loan debt, reflect realistically on your professional and financial situation. For example, borrowers who are enrolled in income-driven repayment plans or are pursuing Public Service Loan Forgiveness, may find that refinancing their federal student loans doesn’t make sense for their personal goals.

The Takeaway

Federal student loans differ from private student loans in key ways. You must fill out the FAFSA every year to qualify for federal loans. With subsidized federal loans, interest doesn’t accrue until after graduation and a six month grace period. Federal loans also offer special protections to borrowers, such as deferment and Public Service Loan Forgiveness. The same protections are not available on private student loans. You may or may not qualify for a lower interest rate on a private student loan, depending on your credit history, whereas your credit score doesn’t affect your ability to qualify for 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.

FAQ

What is the difference between a federal and private student loan?

Federal student loans are issued by the U.S. government with fixed interest rates, more flexible repayment options, and benefits like income-driven repayment plans and loan forgiveness programs. Private student loans are offered by private financial institutions with rates and terms based on creditworthiness, often requiring a cosigner, and generally lacking the same level of repayment flexibility and borrower protections. However, private student loans are a good option once federal student loans have been exhausted.

What is the downside to using private student loans instead of federal student loans?

The downside to using private student loans instead of federal student loans includes higher and potentially variable interest rates, less flexible repayment options, and fewer borrower protections. Private loans often require a good credit score or a cosigner, lack income-driven repayment plans and loan forgiveness programs, and generally offer limited deferment and forbearance options compared to federal loans.

How much student loan debt is federal vs private?

According to the Education Data Initiative, federal student loan debt significantly outweighs private student loan debt in the United States, with federal loans comprising approximately 92% of the total student loan debt, amounting to around $1.6 trillion, while private loans account for the remaining 8%, or roughly $140 billion.

Is it better to get a federal or private student loan?

It is generally better to get a federal student loan due to its lower interest rates, flexible repayment options, and robust borrower protections. However, private student loans can be a good option once federal student loans have been exhausted.

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.