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Yes, international students can get student loans to study in the U.S. However, international students have fewer financing options than American borrowers and may face some additional hurdles to securing a loan.

Going to college in the U.S. can help international students advance their education and professional goals. It’s also a big undertaking financially. For the 2023-24 academic year, tuition and fees averaged $38,421 at private colleges, $9,750 for in-state students at public colleges, and $28,386 for out-of-state students at public colleges.

Read on to learn what type of student loans you might qualify for as an international student, and how to evaluate and compare options.

Who Is Considered an International Student?

An international student is typically defined as a student who chooses to pursue education in a country other than their own. This status applies to students across various levels of education, including high school, undergraduate, graduate, and post-graduate studies. For undergraduate students, international students would include anyone who has graduated high school outside of the United States.

What Is an International Student Loan?

An international student loan is a type of private loan available to the nearly one million foreign students studying in the U.S.

The U.S. Department of Education does not issue international student loans, as federal student loans are only available to U.S. citizens and eligible non-residents.

There are many lenders to choose from for international student loans. Loan terms and eligibility requirements can vary by lender. It’s generally recommended to exhaust any opportunities for scholarships, grants, and school-based financial aid before applying for an international student loan.

U.S. citizens looking to get an education overseas have options for student loans for studying abroad, too.

Loan Options If You Are an Eligible Noncitizen

Are federal loans for international students possible? In some cases, yes. To be eligible, noncitizens must fall into one of several categories:

•   You are a U.S. national or green card holder.

•   You hold an Arrival-Departure Record (I-94) showing “Refugee,” “Asylum Granted,” “Cuban-Haitian Entrant,” “Conditional Entrant,” (if issued before April 1, 1980) or “Parolee” (with one year paroled minimum and proof that you’re in the U.S. for a non-temporary purpose and intended to become a U.S. citizen or permanent resident).

•   You or your parents hold a T-1 nonimmigrant status.

•   You or a parent are a battered immigrant-qualified alien.

Other noncitizens may be eligible for other forms of federal aid. For example, citizens from Palau can apply for Pell Grants, Federal Supplemental Educational Opportunity Grants, and Federal Work-Study.

There are additional student loan requirements that eligible noncitizens must satisfy to qualify for federal loans, such as completing the Free Application for Federal Student Aid (FAFSA^®) and attending school at least half-time.

Loan Options if You Are Not Eligible for Federal Student Loans

When federal loans aren’t an option, private student loans may be needed to cover the cost of attending college in the U.S.

Private student loans are offered by banks and financial institutions and are credit-based — meaning the borrower’s ability to repay the loan will be evaluated by the lender based on factors such as the individual’s credit score and income, among others.

Some lenders may require an international student to apply with a cosigner who is a U.S. citizen or permanent resident, though there are lenders who offer specialized student loans for international students.

International students might also explore parent loans to pay for college. Instead of the student, a parent, relative, or trusted individual takes out a loan for their student’s education expenses.

It could be beneficial to ask your school’s financial aid office for a list of lenders to begin your search. Browsing online may also be helpful for understanding your options as a borrower and comparing loans and lenders.

Do International Students Need a Cosigner to Get a Student Loan?

A cosigner is someone who takes on a legal obligation to pay back a loan if the borrower is unable to. Having a cosigner for a student loan reduces the risk for the lender and can help the borrower obtain financing with better terms.

With private student loans, lenders may require a cosigner if a borrower’s income and credit aren’t enough — which is often the case. According to the Enterval Private Student Loan report, during the 2025-2026 school year, 91% of undergraduate student loans had a cosigner while 69% of student loans made for graduate students had a cosigner.

As briefly mentioned, for international students, applying for student loans often requires having a U.S. cosigner. Generally, cosigners are a relative or close friend since they are on the hook for paying the loan if a borrower fails to make loan payments or defaults.

But can international students apply for student loans without a cosigner in the U.S.? Applying for a student loan without a cosigner is possible, but a no-cosigner loan will likely come with a higher interest rate.

After building up credit and making regular on-time payments post-graduation, borrowers may be able to get a cosigner release. This frees the cosigner from legal liability for the loan, which is especially important if another college-bound family member needs a cosigner.

Typical Requirements for International Student Loans

Many lenders require international students to have a cosigner and study at least half-time at an eligible college to obtain a loan. Here are some typical student loan requirements that could impact approval, as well as the loan amount and terms:

•   Personal credit history and score in the U.S.

•   Cosigner’s creditworthiness

•   Live in the U.S. while attending school

•   Qualify for a student or other temporary resident visa that does not expire within six months of graduation

•   Personal financial information, such as bank statements and tax returns

•   Estimated future earnings

•   Employment and education history

Can international students get student loans without meeting all these requirements? Student loans have varying requirements, so it’s possible to qualify with one lender and not another.

International Student Loan Repayment Terms

A loan’s repayment term stipulates how long the borrower has to pay back the loan, the monthly payment amount, and conditions for when payment starts.

A longer repayment term translates to smaller monthly payments, and vice versa. Keep in mind that the longer the term, the more interest you’ll pay over the life of the loan.

Private student loans don’t offer the same repayment options as federal loans. Whereas the standard repayment plan for federal loans has a 10-year repayment term, international student loan terms may vary depending on the lender and could range from five to 20 years.

International student loans may come with a grace period of up to six months after graduation as long as you’re enrolled at least half-time in college. Alternatively, interest-only payments could be required while enrolled in college, or repayment may begin as soon as the loan is disbursed.

International Student Loan Interest Rates

Interest is the amount charged by the lender on top of the original loan amount. With international student loans, your creditworthiness is a major factor for determining the interest rate you’ll pay.

Lenders may offer either fixed or variable interest rates. The former remains constant over the life of the loan, while the latter can fluctuate over time based on market conditions.

The main benefit of fixed-rate loans is the predictable monthly payments. The loan terms outline how much interest you’ll pay each month and over the entire life of the loan.

Later on, refinancing international student loans could help secure a lower fixed interest rate.

On the other hand, variable-rate student loans can be advantageous if you qualify for a low interest rate or expect to land a high-paying job after graduation. If you can make extra payments early on before variable rates rise, you could potentially reduce how much you pay in the long run.

Recommended: All About Interest Rates and How They Work

What Can You Use an International Student Loan For?

How much you can borrow is determined by the school’s cost of attendance minus any other financial aid you receive, such as scholarships and grants. If you have money left over after tuition, international student loans could be used for other education-related and living expenses, including:

•   Room and board or off-campus housing

•   Health insurance

•   Textbooks, laptop, and supplies

•   Equipment (e.g. lab equipment)

•   Transportation and commuting costs

Generally, lenders are not monitoring how borrowers spend their student loan funds once disbursed. The rationale to avoid using loans for unnecessary expenses is that you have to pay it back with interest.

Recommended: Using Student Loans for Living Expenses and Housing

Do International Students Have Other Financing Options?

Yes, international students have other financing options outside student loans. Options include scholarships and grants, sponsorships, assistantships and fellowships, getting a part-time job, asking family or friends, and crowdfunding.

Private Student Loans for International Students

As an international student, attending college in the U.S. can come with challenges. Besides adjusting to a new culture, foreign students can’t receive federal aid or loans unless they qualify as eligible noncitizens.

Still, international students have several options for paying for college in the U.S., including scholarships, grants, 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 international students get a student loan?

International students cannot get federal student loans unless they qualify as eligible noncitizens. They can, however, apply for scholarships, grants, and private student loans. Private student loans do not offer the same benefits as federal student loans, but they can be a solid way to help fund an education.

Photo credit: iStock/Anchiy

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).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Studying abroad can be a life-changing opportunity that will enrich your college experience. But that enrichment can come with a strain on your bank account. If you’ve always wanted to head overseas, your college years are a great time to do it. But can you afford it?

If you’re looking for how to get money to study abroad, there are a few different student loan options that may be worth exploring. Whether you’re about to head off to college, currently enrolled, or in graduate school, student loans may be available to help finance your trip. Read on to understand how student loans to study abroad work.

Can Student Loans Be Used for Studying Abroad?

As mentioned, studying abroad can be an outstanding opportunity for a college student to expand their cultural horizon, meet new friends, and maybe learn a new language. While this can be an incredibly enriching experience, it’s important to factor in both the pros and cons of studying abroad — it can also be expensive.

Costs for studying abroad vary depending on where you go, what you study, and how long you stay, but average costs can hover around $16,000 per semester as of 2023. Students can use a combination of savings, federal student loans, private student loans, and some scholarships or grants to pay for their study abroad experience.

Federal Student Loans for Studying Abroad

It’s possible to use federal student loans to pay for your study abroad experience. Federal student loans can be used to pay for any qualifying educational expense — you can even use student loans to pay for living expenses like rent or room and board.

To get federal financial aid — which includes grants and loans — you’ll need to complete the FAFSA® each year. The financial aid office at your domestic university should be able to tell you which forms of aid can be used to cover study abroad expenses. Be sure to file your FAFSA in plenty of time and check in with both your American school and the international school as additional paperwork may be required.

Recommended: How to Complete the FAFSA Step by Step

Private Student Loans for Studying Abroad

Federal financial aid may cover some expenses for certain study abroad programs, but there might not be enough cash to cover the whole experience. That’s where private student loans could come in handy.

Private student loans are available from private financial institutions and can be used to cover up to a school’s cost of attendance, less other forms of financial aid. Unlike most federal loans, private lenders will generally review information about the applicant including their credit score, among other factors, when making their lending decisions.

There are a few things to keep in mind before taking out a private student loan for study abroad, including:

•   Interest rate: A high interest rate can cause you to pay significantly more than you expected. Also, see if you’re signing up for variable or fixed interest rate loans, as variable rates fluctuate up and down depending on the markets.

•   Repayment: Review loan terms to see when you will start paying back your student loans. Federal loans usually start student loan repayment six months after graduation (or when you drop out or drop below part-time hours), but private loans can vary in their repayment schedule. Some may require you to start repayment even while you’re in school. At the very least, consider looking for loans that don’t require repayment until after you’ve graduated.

Private student loans can be a tool to help students pay for college and study abroad costs, but because they don’t necessarily offer the same protections (like income-driven repayment options or forgiveness) as federal student loans, they are generally borrowed after other options have been exhausted.

Recommended: Guide to Private Student Loans

Grants and Scholarships

Many grants and scholarships can be used to help students pay for studying abroad costs. Some scholarships may require students to participate in specific study abroad programs, so be sure to review the details of each application closely. Looking for study abroad scholarships? Check out SoFi’s scholarship search tool.

Depending on your school’s policies and the program you choose, you may be able to use the institutional or federal financial aid you receive to pay for study abroad costs. Some schools may require that you participate in a study abroad program affiliated with the school in order to apply institution-specific aid to the study abroad program. Check in with your school’s financial aid office to be sure.

Are Student Loans for Studying Abroad Different From Typical Student Loans?

Student loans for studying abroad are not different from the typical student loans used to pay for college. Federal student loans can be used to pay for study abroad costs so long as the program is offered through an eligible institution. As mentioned, you may be required to fill out additional paperwork for federal financial aid if you are studying abroad, so check in with your financial aid office to determine any requirements.

Determine How Much Your Study Abroad Will Cost

To determine how much you’ll need to borrow to pay for your study abroad experience, you’ll need to figure out how much the experience will cost in comparison to a typical semester. Continue reading for some of the study abroad costs to consider.

Tuition

Tuition costs vary depending on the program type and location. Some schools may offer affiliate programs for study abroad, which may have similar tuition costs to attending the university in-person.

Other programs may offer direct enrollment at a local institution in the destination country. Enrolling directly in a local school may allow you to secure a more affordable tuition, but you may be responsible for additional costs like health insurance or rent.

Living Expenses

Consider the living accommodations available in the program you have selected. If you are working with your school or another third-party provider, they may have living accommodations set up for you. If you are enrolling directly with a local university, you may need to find an apartment to rent or live in on-campus housing (if available). Review the options at your destination closely. This guide has more information on college money management that could help you build out your study abroad living expenses budget.

Travel Expenses

Factor in not only the expense to travel to your initial destination, but also any additional travel costs you may incur during your semester abroad. For example, if you are living in Paris for a semester, will you be taking any weekend trips elsewhere in Europe? Map out your other travel plans and estimated prices for flights, trains, hostels, and food. You could consider setting up a dedicated travel fund to save for your semester abroad.

Graduate Study Abroad Loans

If you’re in search of how to get money to study abroad, when you go can be just as important as where you go. Undergraduate degrees are usually less expensive than graduate ones (though this may depend on the field of study), which means studying abroad during undergrad may also be less expensive. Graduate student loans are a bit different from undergrad ones in a few ways, including:

•   Higher interest rates, higher limits. Since graduate degrees are more expensive than undergraduate ones, you can borrow more money with graduate loans. Unfortunately, graduate loans also tend to have higher interest rates.

•   Unsubsidized loans. Undergraduate students may qualify for Direct Subsidized Loans, or loans where the federal government pays your interest rate while you’re in school. Direct Unsubsidized Loans for graduate studies start accruing interest while you’re in school. This could be costly once you graduate.

Do your research on the different student loan options, and if you have flexibility in your timing, you may wish to consider going abroad as an undergraduate rather than as a graduate student. You could potentially save some money in the long run.

Private Student Loan From SoFi

Both federal and private student loans can be used to pay for costs associated with qualifying study abroad programs. The requirements for federal loans may vary depending on the program you are enrolling in, so check in with the financial aid office at your school.

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 I use student loans to receive a degree from an international school?

Yes, you can use student loans to receive a degree from an international school, but the availability and type of loans will depend on several factors, including the country and the specific institution. Many U.S. federal student loans can be applied to eligible foreign institutions that participate in the Federal Student Loan Program.

Additionally, private lenders may offer loans for studying abroad, often with different terms and requirements compared to federal loans. It’s crucial to research and confirm the eligibility of the international school for federal student loans and to explore various private loan options.

Can you get a federal student loan to study abroad?

Yes, federal student loans can be used to pay for study abroad expenses. There may be some additional requirements so check in directly with your college’s financial aid office.

However, if your school does not participate in the federal aid program, you likely will not be able to secure financial aid to study abroad either.

Are there special loans for studying abroad?

Both the federal and private student loans can be used to pay for study abroad expenses. It’s possible to apply for a private student loan specifically to study abroad, but these loans are generally the same as student loans used to pay for classes at your American school.

What are other ways to finance studying abroad aside from loans?

Students may also be able to use savings, scholarships, or grants to pay for study abroad 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. 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).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Returning to school can help you advance in your current job, open you up to new professional opportunities, and increase your salary. But those potential benefits don’t come without costs.

If you’re thinking about going back to school at 30 (or any age), it’s a good idea to consider what you hope to gain out of more education, and whether it may increase your earning potential or improve your job (and overall life) satisfaction. You’ll then want to factor in how much the program will cost and how you’ll pay for it.

There’s no one simple formula to determine whether or not going back to school is worth it, but these tips can help you make an informed decision.

Determining Whether Going Back to School Is Worth It

Once you’re clear about what program you’d like to pursue and have a list of schools to consider, you may want to ask yourself the following:

•   Will the degree help me in my career path?

•   Is this degree necessary to continue on my career path?

•   Will this degree increase my job and overall life satisfaction?

•   Will my investment in this degree be worth the cost?

Here’s a look at how you can answer each one of these questions.

Will This Degree Help Me in My Career Path?

When going back to school as an adult, it’s important to position yourself for continued growth based upon the career progress you’ve made to date. Sometimes, your continuing education of choice will take you further on the same career path you’ve already established. Other times, you will be broadening your education to branch out into complementary fields.

Talk to Trusted Colleagues

To make sure that the program you’re choosing will help you to accomplish your career goals, consider talking to people whose judgment you trust, including those who have pursued the path you’re considering.

Review Linkedin

Another resource that might be worth checking out is LinkedIn. You can search the profiles of people who work for companies you admire or who are in a job position you’d like for yourself. What educational credentials have they listed? If they have a graduate degree, which one? Does this mesh with what you have in mind?

Recommended: 6 Ways to Save Money for Grad School

Evaluate Career Opportunities

Sometimes, of course, obtaining additional education is necessary to fulfill your career goals. This is true if you want to become a doctor, dentist, nurse, or lawyer. In other cases, you may not necessarily need additional education to get a job in a particular field, but you might need further education to rise up the career ladder, get a significant increase in pay, or work for a particularly prestigious company.

Obtaining an MBA, for instance, can provide you with skills that will suit you well in various fields. It can also position you to take on new career positions and boost your overall pay.

Is This Degree Necessary to Continue on My Career Path?

Sometimes, of course, obtaining additional education is necessary in order to fulfill your career goals. This is true if you want to become a doctor or a dentist, a nurse or a lawyer. And, in other cases, you may not necessarily need additional education to get a job in a particular field, but you might aspire to work for a company that requires further education from its professionals.

Obtaining an MBA, for instance, can provide you with skills that will suit you well in various fields. And companies are very interested in hiring MBA graduates: After a hiring slump due to the Covid-19 pandemic, companies planning to hire MBAs in 2021 has rebounded to the same level as pre-pandemic, according to The Graduate Management Admission Council . In other words, not only can getting an MBA increase your skill set, it also may set you up for greater career and financial success down the line.

Will This Degree Increase My Job and Overall Life Satisfaction?

Any time you invest significant resources into a decision, such as going back to school, you probably have desired outcomes in mind. If you’re thinking about going to college to finish your degree (or for the first time) or going to grad school, you may be hoping to receive a promotion or get a better or more satisfying job, which is reasonable. But, it’s also important to consider whether those accomplishments will really make you happier.

A lot of the things in work that make us happy are intangible: a work culture and community that aligns with your values, work-life balance, or a boss you work well with. Having said that, you might need an advanced degree to get into companies and positions that provide these essentials.

Keep this in mind when deciding if going back to school is the right decision to make.

Will My Investment in This Degree Be Worth the Cost?

To determine the answer to this question, you’ll want to try to calculate what your financial return on education (ROEd) might be. To do this, you’ll first need to research the salary potential for someone with the degree you’re considering. You can then look at the costs involved to determine if, and when, the investment will likely pay off.

According to data from the National Center for Education Statistics, workers aged 25 to 34 with bachelor’s degrees earn, on average, 55% percent more than those who completed high school; those with master’s or higher degrees earn around 21% more than those with bachelor’s degrees.

How to Finance Going Back to School as an Adult

If you decide going back to school is worth the cost, the next step is to figure out how to pay for the program of your choice.

Explore Private Scholarships

First, you can conduct a scholarship search and explore foundations and organizations that may provide funding to you based upon your professional credentials, your community, religious affiliation, and/or ethnicity, etc. Also, you could check to see if your employer offers tuition reimbursement or any scholarship or grant programs that can benefit you.

Federal Financial Aid

It’s also a good idea to fill out the Free Application for Federal Student Aid (FAFSA®). This will give you access to financial aid, including grants, scholarships, work-study, and federal student loans. If you’re looking into grad school, keep in mind that graduate or professional students are typically considered independent students for the purposes of completing the FAFSA form. This means you generally are not required to provide parent information.

Grants and scholarships are a form of gift aid and do not need to be paid back. Federal student loans need to be repaid, but come with benefits such as income-driven repayment plans and forgiveness programs.

Private Student Loans

If financial aid isn’t enough to cover the cost of going back to school, you might look into getting a private student loan. These are available through private lenders, including banks, credit unions, and online lenders. Loan limits vary from lender to lender, but you can often get up to the total cost of attendance for an undergraduate or graduate program. Interest rates vary but borrowers who have strong credit generally qualify for the lowest rates.

Keep in mind, though, that private loans may not offer the borrower protections — like income-based repayment plans and deferment or forbearance — that automatically come with federal student loans.


💡 Quick Tip: Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

Refinancing Existing Student Loans

If you’re heading back to school and have existing student loans from your undergraduate degree, refinancing might allow you to qualify for a lower interest rate. This can either help you pay off the loan faster and/or decrease how much you pay each month. You can also lower your monthly payments by refinancing for a longer loan term. However, this will result in paying more interest overall.

You can refinance private or federal student loans. It’s important to note that when you refinance federal student loans with a private lender, you forfeit certain federal benefits, such as forbearance and forgiveness programs.

What Is Student Loan Entrance Counseling?

If you plan to go back to school as an adult and take out federal student loans, keep in mind that all federal borrowers must go through student loan entrance counseling. This is a short, online course that is designed to help ensure students understand the responsibilities and requirements that come with borrowing student loans. It highlights the terms and conditions of borrowing a loan, and also emphasizes borrower rights.

The federal government conducts student loan entrance counseling online. You can get details on the course by logging into your account on the Federal Student Aid website.

The Takeaway

When evaluating whether or not going back to school is worth the cost, you’ll want to factor in things like your career goals, the anticipated job market after graduation, typical program costs, and average salaries for the career you are pursuing with the degree.

Going back to school is a personal choice. While it typically comes with added expenses, you may decide that the potential returns make it well worth the investment.

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 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.

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

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Struggling to make your federal student loan payments? An income-based repayment plan may ease the burden. Previously, two of the primary income-based plans were Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). But the former is no longer taking new enrollees, and the latter has been replaced by a new program — the SAVE Plan. In all cases, the plans adjust your monthly loan payments based on your income and family size. In this article we’ll look at how SAVE compares to the old REPAYE, as well as to the PAYE Program.

PAYE vs REPAYE: An Overview

The former PAYE and REPAYE federal student loan payment plans were similar, but differed in a few key areas. Both plans had income-based repayment terms generally set at 10% of a borrower’s discretionary income.

Some borrowers didn’t qualify for PAYE because the initial enrollment step required partial financial hardship as determined by your annual discretionary income and family size. You couldn’t enroll into PAYE if your federal student loan monthly payment would be lower under the Standard Repayment Plan. You also cannot enroll into PAYE after June 30, 2025; however, current PAYE enrollees can remain on the plan after that date.

The 2023 debt ceiling bill officially ended the three-year Covid-19 forbearance, requiring federal student loan interest accrual to resume on Sept. 1, 2023, and payments to resume in October 2023 under any federal student loan repayment plan.

Here are the key differences between the former PAYE and REPAYE plans:

•   PAYE required partial financial hardship to sign up for first-time enrollment

•   No new PAYE enrollees are being accepted, but borrowers already enrolled in PAYE can continue repaying under that plan after July 1, 2025

•   REPAYE did not require low-income, moderate-income, or partial financial hardship to enroll

•   REPAYE no longer exists as a federal student loan repayment plan

SAVE vs REPAYE

Saving on a Valuable Education (SAVE) Plan is the federal income-driven repayment (IDR) plan that replaced REPAYE in July 2023. If you were enrolled on the REPAYE Plan at that time, you’ve been automatically enrolled into the SAVE Plan.

The SAVE Plan is essentially a major upgrade to the former REPAYE Plan, as shown in the table below:

SAVE vs PAYE

Both SAVE and PAYE are federal income-driven repayment plans not available to private student loan borrowers. New enrollments in PAYE ended in July 2025.

The below table highlights the key differences between SAVE and PAYE:

Depending on your original principal balance amount, student loan forgiveness on the SAVE Plan may occur after 10 to 25 years of monthly qualifying payments beginning in July 2025.

If you’re a federal student loan borrower working toward Public Service Loan Forgiveness, you may qualify for forgiveness of any remaining loan balance after 10 years of qualifying payments.

Recommended: Student Loan Forgiveness Programs


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

What Is the Interest Subsidy?

The SAVE Plan has a permanent interest subsidy, whereas the PAYE Plan offers a temporary interest subsidy to eligible borrowers.

If you’re on the SAVE Plan, 100% of your unpaid accrued interest is not charged if your monthly payment is less than the interest accruing. The effect of this permanent interest subsidy is that your loan balance won’t grow over time if your SAVE Plan monthly payment is less than the interest accruing.

Under the PAYE Plan, the U.S. Department of Education may provide an interest subsidy if your monthly payment is less than the interest accruing. This PAYE Plan interest subsidy is discontinued after the first three years of repayment and only applies to Direct Subsidized Loans and the subsidized portion of Direct Consolidation Loans.

Some borrowers on the PAYE Plan may see their loan balances grow over time. This can happen if you’re not covered by an interest subsidy when making a monthly payment that’s insufficient to pay the accrued interest. (Effective July 1, 2023, your unpaid accrued interest is not capitalized if you switch from PAYE to another repayment plan, fail to recertify your income, or no longer have a partial financial hardship.)

Recommended: Direct vs. Indirect Student Loans: What’s the Difference?

Answers to Common Questions

How do I apply for a federal IDR plan?

You only need to submit one application for any federal income-driven repayment plan and will need to supply financial information. It will take about 10 minutes. The Federal Student Aid Office also will recommend a repayment plan based on your input. Remember that private student loans are not eligible for federal IDR plans.

I want to apply for PAYE. How is partial financial hardship defined?

Unfortunately, there’s no option to apply for PAYE after July 1, 2025.

What if I’m in PAYE and no longer demonstrate hardship?

Your loan payments will stop being based on your income. Instead, your monthly payment will be based on the amount you would pay under the 10-year Standard Repayment Plan. Your maximum required payment in PAYE will never be higher than the 10-year standard payment amount.

What if I forget to recertify my income and family size?

If you’re on the SAVE Plan, failing to recertify your income and family size may switch you to an alternative repayment plan with a larger monthly payment.

If you’re on the PAYE Plan, failing to recertify by the annual deadline may give you a larger monthly payment resembling what you would pay under the Standard Repayment Plan.

Auto-recertification is available beginning in July 2025 if you agree to securely share your tax information with the U.S. Department of Education.

Does a Parent PLUS Loan qualify for SAVE?

No. Federal Parent PLUS Loans are not eligible for the SAVE plan.

Recommended: Types of Federal Student Loans

Income-Driven Repayment Alternatives

One of the alternatives to federal income-driven repayment is student loan refinancing. You can refinance your student loans — private and federal — with a private lender and potentially qualify for a lower interest rate. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

The federal Direct Consolidation Loan program combines federal student loans into a single federal loan, but the interest rate is the weighted average of the original loans’ rates rounded up to the nearest eighth of a percentage point, which means the borrower usually does not save any money. Lengthening the loan term can decrease the monthly payment, but that means you may spend more on total interest.

Federal IDR plans like SAVE offer federal protections and benefits, such as access to the Public Service Loan Forgiveness program. Any loans you refinance with a private lender will not be eligible for PSLF, Teacher Loan Forgiveness, or federal IDR plans. A student loan refinancing calculator can help you determine whether student loan refinancing is right for you.

💡 Quick Tip: When refinancing a student loan, you may shorten or extend the loan term. Shortening your loan term may result in higher monthly payments but significantly less total interest paid. A longer loan term typically results in lower monthly payments but more total interest paid.

The Takeaway

The SAVE Plan is generally the most affordable federal student loan repayment plan. It replaced the former REPAYE Plan and offers a permanent interest subsidy, among other perks that you couldn’t get with PAYE.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

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