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Scholarships are a type of financial aid that you don’t need to pay back. Students may find scholarships that are need-based or merit-based, as well as scholarships for minorities that are historically underrepresented on college campuses.

College scholarships for minorities are available for both undergraduate and graduate students. We’ve outlined a list of scholarships for minority students below, plus some tips for applying and what to expect for eligibility requirements.

Eligibility Requirements

It’s important to check the eligibility requirements before applying for scholarships and grants. There are multiple types of scholarships that students could qualify for based on where they live, their chosen field of study, or being recruited as a student athlete.

Minority scholarships are often based on financial need, academic merit, or a combination of the two. Competitive merit scholarships can involve GPA minimums, community service experience, or proficiency in the arts or a specific academic discipline.

Need-based scholarships, which are based on a student’s financial need, can help make college more affordable for students from low-income backgrounds. Whether applying for federal grants or private scholarships, students need to fill out the Free Application for Federal Student Aid (FAFSA).

💡 Recommended: Balancing Being a Student Athlete & Academics in College

How to Find Minority Scholarships

There are many scholarship options for students from underrepresented populations. Finding minority scholarships begins with completing the FAFSA to determine eligibility for need-based awards, such as Pell Grants.

Searching for scholarships online is a common approach. The Department of Labor maintains a scholarship database, known as CareerOneStop.

SoFi’s scholarship finder is another resource to find free money to help pay for college, graduate school, or trade school. Users can filter results by residency, field of study, ethnicity, and other criteria.

Scholarships for Minority Students

Below are some scholarships for minority students to begin their search.

•   AICPA Scholarship for Minority Accounting Students: Financial assistance to minority students pursuing a degree as an accounting major.

•   Diversity Advancement Scholarship: Awards for minority students planning to enroll in a NAAB-accredited architecture degree program.

•   Government Finance Professional Development Scholarship: Multiple scholarships for minority students enrolled in a course of study preparing for a career in state or local government.

•   Robert Noyce Teacher Scholarship Program: Scholarships to support undergraduate science, technology, engineering, and mathematics (STEM) majors become effective K-12 STEM teachers.

For a chance to win SoFi’s monthly $2,500 Scholarship Sweepstakes, simply let us know your name, email address, and school.

Types of Scholarships Available for Minorities

Scholarships for minorities can be specific to certain ethnicities and heritages, rather than open to all minority groups.

Minority students may also use grants for college expenses. Like scholarships, grants typically don’t need to be repaid. A couple distinctions to note: Grants are usually based on financial need versus academic merit, and funds are often from federal and state government instead of private and non-profit entities.

Here’s a look at college scholarship opportunities for several different minority groups.

Recommended: Grants, Scholarships, and Loans: Differences

Scholarships for African American Students

Black and African American students can apply for specific minority scholarships and grants to help minimize college debt. Scholarship eligibility may be based on a student’s major, location, and the type of institution.

•   CBC Spouses Education Scholarship: Scholarships for African American or Black students who demonstrate leadership through community service, pursuing an undergraduate, graduate, or doctoral degree.

•   HBCU Sustainable Communities Initiative Scholarship: Awards for students attending Historically Black Colleges and Universities (HBCU) and majoring in STEM, business, or sustainability-related disciplines.

•   Historically Black Law School Scholarship Program: Awards a scholarship to one student at each historically black law school in the U.S.

•   National Forum for Black Public Administrators Scholarships: Awards for African American students enrolled in a four-year degree program, preferably at an HBCU, who demonstrate leadership related to public service.

•   NSBE Scholarship Program: Multiple scholarships for African-American undergraduate and graduate students majoring in engineering.

Scholarships for Hispanic/Latino Students

Hispanic and Latino students have unique funding opportunities to apply for among the list of scholarships and minority grants for college. Eligibility may depend on the institution type and location, as well as a student’s location and financial need.

•   Café Bustelo® El Café Del Futuro Scholarship: Scholarships for college students with a passion for community involvement and enrolled at a Hispanic Association of Colleges and Universities member institution.

•   Dr. Juan Andrade Jr. Scholarship for Young Hispanic Leaders: Need-based awards for full-time students of Hispanic ancestry enrolled at a two- or four-year institution.

•   Hispanic Heritage Foundation Youth Awards: Scholarships for students of Hispanic heritage enrolled at an accredited higher education institution.

•   HSF Scholar Program: Merit-based awards for U.S. citizens, permanent residents, eligible non-citizens or DACA of Hispanic heritage enrolling in undergraduate or graduate school.

•   Latinos in Technology Scholarship: Scholarships and summer internship opportunities for Latino and Hispanic students enrolled in a STEM program in their junior or senior year at a college in Northern California or a graduate of a high school in Northern California.

Scholarships for Native American Students

Some minority scholarships are available to Native American students exclusively. Tribal enrollment and field of study are two eligibility requirements to be mindful of.

•   American Indian Education Fund Scholarships: Awards for Native American, Alaska Native, and Native Hawaiian students pursuing undergraduate and graduate degrees.

•   Catching the Dream Scholarship: Awards for Native American and Alaska Native students to study business administration, economic development, and related subjects.

•   Full Circle and Tribal College Scholarships: Awards for Native American and Alaska Native students seeking technical, undergraduate, and graduate degrees at tribal colleges or accredited non-profit schools.

•   NativeVision Scholarship: Scholarships for Native American students to help fund their first year of college.

•   Wells Fargo American Indian Scholarship: Awards for enrolled members of a U.S. federally recognized American Indian or Alaska Native tribe pursuing a degree in banking, management, or a related field.

Scholarships for Native Hawaiian Students

There are a variety of scholarships for Native Hawaiian students to help pay for the cost of college. Eligibility for scholarships may vary based on the field of study and a student’s residency.

•   AIANTA Tourism & Hospitality Scholarship: Financial assistance for Native Hawaiian, Alaska Native, and Native American students toward a degree or certificate in hospitality, culinary arts, or related fields.

•   AISES Scholarships: Scholarships for Native Hawaiian and Native American undergraduate and graduate students pursuing STEM degrees.

•   CCAPW Scholarships: Assistance for American Native Hawaiian and Pacific Islander women from specific central California communities.

•   Clem Judd Jr. Memorial Scholarship: Awards for Hawaiian residents of Hawaiian ancestry enrolled in hotel management degree programs.

•   Native Hawaiian Health Scholarship Program: Scholarships for Native Hawaiians pursuing careers in primary and behavioral health disciplines.

Scholarships for Asian American Students

There are minority scholarships designated for Asian American students. Note that scholarship eligibility may be specific to certain ethnic groups and ancestry.

•   ESASID Scholarship: Scholarship for students of South Asian Indian heritage attending medical school full time in Pennsylvania.

•   Kimbo Foundation Scholarship: Multiple awards for Korean-American college students.

•   NSRCF Scholarships: Multiple awards for high school seniors of Southeast Asian ancestry living in designated areas of the United States.

•   Taiwanese American Scholarship Fund: Need-based scholarships for Taiwanese American college students of all majors.

•   Upakar Foundation Scholarships: Merit- and need-based scholarships for Indian American college students.

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Tips for Applying

Applying for scholarships can be made easier with some prior planning. After identifying scholarship options, making note of application deadlines is a useful place to start.

If a scholarship requires an essay or personal statement, double check that you’re following the prompts and word limit requirements. Highlighting your personal experience, strengths, and achievements can help you stand out as an applicant.

Letters of recommendation are a common application requirement. Think about which teachers or employers would be best suited to write a recommendation — and give plenty of notice if asking them to do so.

Applying for scholarships isn’t a one-and-done scenario. Students can apply for scholarships every year of their education, and it may be necessary to reapply for a scholarship award if it doesn’t renew year-to-year.

Recommended: 8 Tips for Asking a Professor for a Letter of Recommendation

The Takeaway

Scholarships and grants are a great way for minority students to pay for college and reduce student debt. But many students require additional financing, such as federal and private student loans, to fund their education.

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

FAQ

Are there scholarships for multi-racial students?

Yes, multi-racial students can access minority scholarships that relate to any part of their multicultural heritage or ancestry. Eligibility requirements for minority status or specific ethnic groups are typically outlined in the scholarship description.

Do minority scholarships consider financial need?

Entities offering minority scholarships may consider a student’s financial need, academic merit, or a combination of the two.

What documents are required for minority scholarships?

To apply for minority scholarships, students may need to submit their transcripts, letters of recommendation, standardized test scores, essays, and the FAFSA®.

Photo credit: iStock/Maca and Naca

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

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.

SOISL-Q324-037

Pursuing a college education as a single mom can be both challenging and rewarding. With the added responsibilities of parenting, managing finances, and balancing schoolwork, finding the necessary resources to fund your education is essential. Fortunately, there are numerous scholarships specifically designed to support single mothers in achieving their academic goals.

Keep reading to learn various types of scholarships for single moms, their eligibility requirements, and how to apply, empowering you to pursue your educational dreams.

Eligibility Requirements

Eligibility requirements for scholarships for single moms differ from scholarship to scholarship. Carefully review the qualifications for each scholarship so you understand whether you’ll qualift. Beyond being a single parent, scholarship committees may impose other requirements, such as:

•   Citizenship

•   Where you live

•   Academic qualifications (grade point average/test scores)

•   Major in college

•   Credit hours in college

•   Financial qualifications; may require filing the Free Application for Federal Student Aid (FAFSA)

•   Essay requirement

•   High school or college transcripts

•   Letters of recommendation

•   Extracurricular activities

It can be tricky to keep all the eligibility requirements organized for each scholarship, so you may want to create a spreadsheet to keep it all straight.

How to Find Scholarships for Single Moms

Scholarship databases can help you find scholarships specifically geared toward single moms, and you can also look for scholarships based on keywords specific to your area, major, and more. For example, you may want to use the keywords “scholarships for single moms in medical school” or other criteria that will allow you to find scholarships for your situation.

Furthermore, you can also file the FAFSA to learn more about the types of scholarships you can apply for based on the school you want to attend.

Scholarships for Single Moms

Below is a list of scholarships for single mothers. Make sure to check out the requirements and deadlines for each.

•   The Colwell Law Group, LLC Single Parent Scholarship: To qualify for this $1,000 award, you must be enrolled in an undergraduate, graduate, or law program within the U.S., have a minimum GPA of a 3.0 on a 4.0 scale, and submit an up-to-date resume, current official or unofficial transcripts, and a 750-word essay about how being a single parent has impacted your life.

•   Women-in-Transition Scholarship: This scholarship offers $8,000 over two years to students pursuing a bachelor’s degree at a four-year college or university or $4,000 over two years for students pursuing an associate’s degree. Students must maintain a 3.0 GPA, enroll in an accredited school in the U.S., commit to an accounting or finance degree, and demonstrate financial need.

•   Patsy Takemoto Mink Education Foundation: The Patsy Takemoto Mink Education Foundation offers up to $5,000 for students at least 17 years of age pursuing a first degree at an accredited postsecondary institution. Individuals must demonstrate financial need to qualify for this scholarship.

•   ANSWER Scholarship: The ANSWER Scholarship, which typically ranges from $2,750 per year for associate’s degrees to $5,500 per year for bachelor’s degrees, goes to primary female caregivers with at least one school-age child. Applicants must be U.S. citizens and legal residents of Mecklenburg, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Rowan, Stanly, or Union County in North Carolina or Lancaster or York County in South Carolina. They must also attend accredited institutions in those counties and plan to achieve specific degrees. Recipients must also participate in the Mentors for Mom Program, maintain satisfactory academic performance, as well as attend ANSWER luncheons and fundraisers.

•   Jeannette Rankin National Scholar Grant: National Scholar Grant applicants must be 35 or older, demonstrate financial need, and have a plan for reaching their goals. They must also be pursuing a technical or vocational education degree, an associate’s degree, or a first bachelor’s degree at an accredited institution. The award is worth up to $2,000 per year for up to five years.

•   Judith McManus Price Scholarship for Women and Minorities in Planning: This $5,000 scholarship is for women and minority students enrolled in Planning Accreditation Board (PAB)-approved programs who are citizens of the U.S. and who demonstrate need.

•   Beatrice F. Kroesche Memorial Scholarship: Applicants for this $1,000 to $2,000 scholarship for single parents must enroll in the College of Education or Department of English at the University of Utah. Applicants must carry at least 12 hours of study and maintain a 3.0 GPA or better.

•   Women With Promise Scholarship: Full- or part-time students who are residents of north Texas and plan to attend accredited institutions can apply for this scholarship. Students can receive between $250 and $5,000 for tuition, books, and fees.

These aren’t the only scholarships available. Search for other scholarships as well, and check for potential scholarships at your intended college or university.

Types of Scholarships Available for Single Moms

Single moms can tap into two main types of scholarships for moms: need-based and merit-based scholarships. What’s the difference between the two? Let’s dive into it below.

Need-Based Scholarships

Need-based scholarships are scholarships for women given to students based on financial need. In most cases, students qualify for financial need if they have a low income. Need-based aid often comes from the government, though nonprofit organizations and businesses may prioritize giving scholarships and awards to low-income students.

In many cases, students may also qualify for grants, which do not need to be repaid. For example, a student with high financial need might receive the Pell Grant after filing the FAFSA. For the 2024-25 school year, students can potentially receive a maximum Pell Grant award of $7,395. The Pell Grant amount adjusts every year.

Merit-Based Scholarships

Merit-based scholarships are not based on need, but rather a multitude of other factors, such as:

•   Academic achievements (such as GPA or test scores)

•   Extracurricular activities

•   Leadership

•   Community service

•   Talents and skills

They come from a wide variety of sources, such as colleges and universities, private organizations, and businesses. Check with the college or university you plan to attend to learn more about merit-based scholarships. In most cases, you’ll have to submit your application materials to the college or university to qualify for merit-based scholarships, which could include:

•   Transcripts

•   Recommendation letters

•   Resume

•   Essays

•   Interviews

•   Performance or display (such as in the case of theater, music, or art merit-based scholarships)

What happens if you don’t qualify for need-based or merit-based scholarships or grants? You can tap into private student loans or student loans for single parents.

Tips for Applying

To successfully apply for scholarships and increase your chances of getting selected, consider the following tips:

•   Meet application deadlines. One of the most important things you can do is to meet your application deadlines. Make sure to give yourself plenty of time to gather materials — including letters of recommendation — so the application doesn’t look rushed or messy.

•   Apply for everything. Apply for everything that fits your situation, even if the award amount is small. Smaller awards ($250 to $500) usually have less competition, so your odds are greater when it comes to being selected.

•   Write a good essay. The essay is your opportunity to showcase your situation and qualifications. If needed, hire a proofreader to ensure your essay is error-free.

•   Don’t get discouraged. If you get declined for a scholarship, there are thousands of others available. Consider all your qualifications, not just the ones that have to do with your single parent status.

•   Use our scholarship search tool. Our scholarship search tool, arranged in order of closest deadline, helps you see scholarships by keyword, award type, location, study level, and more. Learn more about our monthly $2,500 Scholarship Sweepstakes.

The Takeaway

Securing a scholarship can be a transformative experience for single moms pursuing higher education, providing both financial support and motivation to achieve academic and career goals. By understanding the various scholarships available, carefully reviewing eligibility requirements, and submitting strong applications, single moms can significantly reduce the cost of their education and focus more on their studies.

If scholarships aren’t enough to pay for the cost of college, you can rely on cash savings or 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

Is there a limit on how many scholarships you can apply for?

No, you can apply for as many scholarships as you want, but keep in mind that the college or university that you apply to may revoke some awards if you earn more in outside scholarships than the allowable limit. For example, if you receive a $10,000 outside scholarship, it may affect your financial aid award. Get in touch with the college or university of your choice to learn more.

Are there scholarships for single dads, too?

Absolutely! Use Google to search for scholarships for single dads, just like you would for scholarships or grants for single mothers. Ask your college or university for information about other scholarships and awards (including merit-based scholarships) you can apply for, as well.

Do I need to be a full-time student for single mom scholarships?

No, not necessarily. You can get grants and scholarships for single moms whether you are a part-time or full-time student. However, check the scholarship requirements. If it’s not clear, check with the scholarship committee for more information.

Photo credit: iStock/miniseries

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

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.

SOISL-Q324-035

Distance learning can offer students the flexibility to balance coursework with working, taking care of family, and other responsibilities. The cheapest online colleges can help you minimize student loan debt while working toward a degree and career advancement.

Online colleges offer degrees across a wide range of academic disciplines. In 2022, around 26% of college students were taking online classes exclusively.

This guide will explore online college costs, the least expensive online colleges, and strategies to pay for an online degree.

Overview of Online College Costs

Whether studying in-person or online, college costs typically include more than just tuition.

Students taking online classes may have to pay technology fees and purchase books and materials depending on their area of study. The cost of an online degree can also vary by institution and in-state vs. out-of-state residency.

Here’s a closer look at the main cost considerations for online colleges.

Recommended: Guide to Paying for College

Tuition and Fees for Online Programs

Like traditional college, tuition and fees account for most of the cost of attending online college.

Tuition usually varies based on enrollment status or, in other words, whether you’re a full-time vs. part-time student. Part-time students pay per credit hour, whereas full-time students taking 12 to 18 credits per semester may pay a flat rate.

Online programs may also include fees on top of tuition, such as a technology or distance learning fee, to access virtual resources and technical support services.

Cost Comparison: Online vs. On-Campus

Students considering studying online vs. on-campus may ask which is cheaper. In short, it depends on the institution, degree program, and location, but studying on campus tends to be more expensive.

For example, a first-year, in-state undergrad at Penn State’s University Park campus would pay $19,672 in tuition and fees for the 2024-2025 academic year. Meanwhile, an online undergraduate student would be charged $7,678 per semester, or $15,356 for the academic year.

Looking at tuition and fees is just part of the cost comparison. The total cost of attendance for studying on campus could include transportation expenses, room and board, and a meal plan — all costs that may not be incurred with the cheapest online colleges.

In-State vs. Out-of-State Online Tuition

The cost of online college can vary based on where you live.

At public institutions, students with in-state residency may benefit from subsidized tuition, even for online degree programs. However, most private schools do not differentiate tuition costs between in-state and out-of-state students.

Recommended: In-State Tuition: A Look at Establishing Residency

10 Affordable Online Colleges to Consider

Looking for the cheapest accredited online colleges? Here’s a short list of affordable online colleges to consider.

Factors Contributing to Lower Online College Costs

Why are online colleges cheapest for earning a degree? For starters, traditional colleges with in-person learning offer a range of experiences and infrastructure for students that online colleges don’t.

With online college, students have a much wider range of institutions and degree programs to choose from, increasing their options for an affordable education. Taking classes from home also avoids having to relocate and pay for moving costs.

Here are some additional factors contributing to lower online college costs.

No Campus Facilities or Housing

Dormitories, campus quads, athletic facilities, and many other facilities that define a quintessential college campus require a considerable budget to maintain. Besides tuition, students taking classes in-person may be required to pay for on-campus housing and meal plans for a portion of the full duration of their enrollment.

Meanwhile, students enrolled in online college are typically spared from paying housing and campus facility costs, including parking and recreation fees.

Recommended: Cheapest States to Go to College in the United States

Lower Administrative Overhead

Besides teaching faculty, traditional colleges require onsite staff to support student life on campus. This may include health services, campus events, dining services, and other areas related to student well-being.

With less support staff, online colleges have comparatively less overhead cost to meet the needs of their students.

Technology and Course Delivery Methods

Online colleges may charge additional technology fees for students enrolled in distance learning. However, online students could save on the cost of books and materials if primarily using digital resources for their coursework.

Taking classes online vs. in-person lectures can save on transportation costs, too, which average $1,360 annually for students who commute to college.

Flexible Scheduling and Self-Paced Options

Self-paced online programs allow students to watch lectures and complete assignments at their own speed. This approach can make it possible to take online classes while working or juggling family commitments, helping to pay for school and save on childcare costs.

Additional Cost-Saving Strategies

Though online college can be more affordable, students might consider other options for lowering costs.

Wondering how to pay for college? Here are some additional ways to reduce the cost of going to online college.

Transfer Credits and Prior Learning

Students who previously attended another institution could save on their online education by transferring credits. Transferring college credits usually involves an application fee or enrollment fee, but that’s still cheaper than taking the credit hours anew.

Financial Aid and Scholarships

Around 87% of college students receive some form of financial aid. Most colleges with free tuition or income-based tuition are in-person institutions, though students enrolled in online programs may qualify for financial aid and scholarships to help cover the cost of tuition.

When browsing online programs, keep in mind that colleges and universities must be accredited for students to be eligible for federal student aid, such as Pell Grants and federal student loans. Online students may also leverage private student loans and state and institutional financial aid in the form of scholarships or grants.

Already in the workforce? There are jobs that pay for your degree through scholarships or tuition reimbursement that could be a fit for your academic and professional goals.

Recommended: How to Complete the FAFSA Step by Step

Accelerated or Competency-Based Programs

An online competency-based or accelerated program is another option for students to learn at their own pace instead of following a set semester schedule.

Generally, students can choose when to take an assessment to demonstrate they’ve mastered a competency, potentially earning their degree faster and at a reduced cost.

The Takeaway

The cheapest online colleges can make earning a college degree more affordable. Besides the cost of tuition and fees, financial aid and long-term career goals are important considerations when comparing schools and degree programs.

To pay for your online education, you can use cash savings, grants, scholarships, and 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 cheapest accredited online college?

The cheapest accredited online college on our list is University of North Carolina at Pembroke. Note that the cheapest online college can differ based on a student’s chosen program, credit hours, and residency status.

Are cheap online degrees worth it?

A cheap online degree can offer a flexible and affordable path to higher education and career advancement. When evaluating online degrees, consider the program’s cost, curriculum, and reputation.

How can I maximize cost savings for an online degree?

You can save on online college by enrolling in a program offering cheaper in-state tuition or self-paced learning to earn a degree in less time.

Do employers value cheap online degrees?

Employers will value a cheap online degree the same as a traditional degree if it’s from an accredited institution and meets the same academic standards. Earning an online degree while working also demonstrates time management skills to potential employers.

Photo credit: iStock/DisobeyArt

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

SOISL-Q324-033

While some fluctuations in your credit score are normal, that may not be much comfort if yours drops by 30 points. Take a deep breath, and remember that there are several possible reasons for a dip. Perhaps a few of your loan payments have been late, or you’ve recently had to charge a lot on your credit card. Or maybe it’s because of factors outside of your control, like an error on your credit report or identity theft.

In any case, it’s a good idea to investigate why your credit score dropped 30 points so you can help get your finances back on track. Here’s what to know.

Why Did Your Credit Score Drop 30 Points?

You may be thinking, Why did my credit score drop 30 points when nothing changed? The truth is, something triggered the dip, so it’s time to start digging. The first step is to review your credit report from each of the three national credit reporting agencies: TransUnion, Equifax, and Experian. You can check your credit report for free once a week; visit AnnualCreditReport.com to get started.

Review each report carefully, starting with the most recent activity and working your way back. There may be discrepancies between reports, so give each one a thorough read. If you spot inaccuracies, you can take steps to dispute them.

Should You Be Worried About Your Credit Score Dropping?

An occasional, slight drop in your credit score is probably not worth losing sleep over. After all, small dips tend to be temporary. However, a 30-point drop could be enough to bump you to a different credit score range, such as going from “fair” to “poor.” And that could affect whether you’re able to get approved or receive favorable terms for a loan or credit card.

Reasons Your Credit Score Went Down

Here are some of the most common reasons why credit scores fall.

Increased Credit Utilization Ratio

If you’ve been racking up purchases on your credit cards lately, you may have increased your credit utilization ratio — or the amount of available credit you’re using. Fortunately, there are a few ways to lower your credit utilization, such as paying down your debts.

Missed Monthly Payment

Go 30 or more days without making a payment, and the lender may report your delinquency to the credit bureaus.

Disputed Credit Report

Formal credit disputes can cause your report to be under dispute, which can cause a temporary drop.

Multiple Credit Applications

Each time you apply for credit, the lender performs a hard inquiry, which can knock a few points off your score. To help protect your score from getting dinged, avoid applying for multiple credit cards within a short time frame.

Credit Report Error

Mistakes happen, and sometimes another person’s late payment gets logged on your account. If you do find any errors, dispute them.

Identity Theft

Someone else may have opened a credit account in your name and run up charges. The more debt you have to your name, the lower your score may be.

Closed Credit Card Account

When you close out an account you’ve had for a long time, you run the risk of lowering the average age of your accounts. And that accounts for 15% of your credit score.

Bankruptcy or Foreclosure

Bankruptcy and foreclosures can deliver a major blow to your credit score and stay on your credit report for seven to 10 years.

What Can You Do If Your Credit Score Dropped by 30 Points?

If your credit score fell by 30 points, there are steps you can take to start building it back. One of the most important things you can do is ensure you’re paying your bills on time, every time. A spending app can help you manage bills. Other strategies include paying down debts, managing how much available credit you use, and maintaining a diverse credit mix.

Recommended: Why Do I Have Different Credit Scores?

Examples of Credit Score Dropping

Let’s take a look at some scenarios when you may see your credit score fall.

One example is sending in a payment 30 days after the due date. Even if you have an otherwise perfect track record, a late payment could shave as many as 100 points off your credit score, depending on your score.

Another situation when your score might drop is when you apply for a loan or new credit card and the lender performs a hard inquiry. Each inquiry could cause your score to fall by five points or more, and it may stay on your credit report for up to two years. However, when FICO™ calculates your score, it considers only credit inquiries made within the last 12 months.

How to Build Credit

As we mentioned, paying bills on time, diversifying your credit mix, whittling down debt, and managing your credit utilization ratio are all ways to help build your credit score. But there are other steps you can take to boost your numbers.

One strategy is to be added as an authorized user on someone else’s credit card. Just be sure that person is someone you trust, has a good credit score, and responsibly manages the account.

Another option is to open a secured credit card. With secured credit cards, you put down a certain amount of money that acts as a security deposit. You get that same amount to spend as a line of credit. You can rebuild credit by making on-time payments each month.

You may also be able to help improve your credit score when you take out an installment loan, such as a personal loan or car loan. Besides giving you the opportunity to make regular, on-time payments, a loan can diversify your credit mix and lower your overall credit utilization.

Recommended: How Long Does It Take to Build Credit?

Allow Some Time Before Checking Your Score

It’s understandable to expect your credit score to tick upward right after you start taking positive actions. But change won’t happen overnight. In fact, it can take 30 days or more for your credit score to update and reflect payments you’ve made.

Closing a Credit Card Account Can Hurt Your Score

Sometimes the reason why your credit score drops by 30 points is because you closed a credit card you’ve had for a long time. After you’ve consistently paid your bills on time and knocked out the balance, consider keeping the card open. The length of your credit history impacts your score, and closing a card can bring down the average age of your accounts.

What Factors Impact Credit Scores?

What affects your credit score? Many factors, but let’s take a look at the five biggest ones and how much they impact your FICO score. (It’s used in 90% of lending decisions.)

•   Payment history (35%)

•   Amounts owed (30%)

•   Length of credit history (15%)

•   New credit (10%)

•   Credit mix (10%)

Pros and Cons of Tracking Your Credit Score

Except for the time it takes to get your credit report, there aren’t many reasons why you wouldn’t want to keep tabs on your credit score. The benefits, however, are many. You can spot errors or issues early on and start taking the appropriate steps to remedy the situation. You’ll also have a better idea of your current credit status and what potential lenders will see on your credit report.

How to Monitor Your Credit Score

One of the easiest ways to get credit score updates is to sign up for a service online. There are numerous companies offering safe, reliable credit score monitoring.

It’s also worth noting that you can check your report without paying. Banks, credit unions, and credit cards often offer free credit score updates to customers.

The Takeaway

If your credit score dropped 30 points, it’s a good idea to investigate why. Changes in your credit utilization or credit mix, applying for multiple lines of credit at once, late payments, errors, and identity theft could all cause a dip.

A good first step is to check your credit report and dispute any errors. At the same time, you can practice sound financial habits, like paying bills on time, monitoring how much of your available credit you’re using, and keeping older accounts open.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Why is my credit score going down if I pay everything on time?

There are multiple reasons your credit score could go down even if you’ve paid your bills on time. For example, has your credit utilization ratio gone up? If you just used your cards for some big transactions and increased the amount of debt you carry, that may be the reason your score dropped.

Why did my credit score drop 30 points when nothing changed?

Your credit score can drop 30 points for a variety of reasons. A good first move is to check your credit reports; you can receive them for free each week. Look for any unfamiliar activity, and dispute errors with the credit bureau.

Why did my FICO score go down for no reason?

Any change to the factors that go into your FICO score could prompt a drop. That said, one common reason is a change in your credit utilization ratio. Even if you pay your bills on time, a rise in debt could cause your score to fall.

Photo credit: iStock/MStudioImages

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

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.

SORL-Q324-007

Divorce brings about many challenges, one of which is figuring out how to finance your child’s college education. College tuition is a significant expense — approaching $40,000 per year, on average — and the financial dynamics between divorced parents can add complexity to an already difficult decision-making process.

Understanding your options, obligations, and available resources is crucial for ensuring your child’s educational future is secure. Here, we’ll explore how divorced parents can approach paying for college tuition, including understanding legal obligations, navigating financial aid, and collaborating together to achieve the best outcome for their child.

Understanding Legal Obligations for College Payment

It’s important to understand your legal obligations when it comes to paying for college, particularly in connection with child support and divorce decrees. It’s also important to note that the FAFSA® guidelines for divorced parents have changed. Rather than using the financial information of who the child lived with the most, the FAFSA will use the information from the parent who provided the most financial support. Let’s take a look.

Child Support and College Expenses

Divorce settlement agreements often address who will pay for college, which is separate from child support.

What exactly is child support? When parents get divorced, it’s common for the parent who does not have custody to pay child support, which usually translates to financial support for minor children. Parents can stop making child support payments when a child turns 18 and the child graduates from high school (unless the child is still in high school and cannot support themselves).

In some cases, one parent may also be required to pay for college, as well. Educational expenses typically get addressed during the divorce process, so you’ll know your exact responsibilities regarding your child’s college education. However, your obligation will depend on your state’s laws.

Some states may order divorced parents to help pay for college-related expenses, while others view them as conditional expenses. The following states allow courts to order non-custodial parents to help pay for college:

•   Alabama

•   Arizona

•   Colorado

•   Connecticut

•   Florida

•   Georgia

•   Hawaii

•   Illinois

•   Indiana

•   Iowa

•   Maryland

•   Massachusetts

•   Mississippi

•   Missouri

•   Montana

•   New Jersey

•   New York

•   North Dakota

•   Oregon

•   South Carolina

•   South Dakota

•   Utah

•   West Virginia

•   Washington

•   Washington, D.C.

Divorce Decrees and Education Provisions

A divorce decree refers to the legal paperwork that formalizes the end of a marriage and outlines the binding terms after a divorce. It outlines child support and other factors, including education provisions. A divorce decree should also identify who will pay for college preparation and college itself, which can include:

•   Standardized tests

•   Admission applications

•   College visits

•   Tuition

•   Room and board

•   Required college fees

For example, one parent may be required to pay for room and board, while the other parent may pay tuition. You may also want to consider an appropriate cap on these expenses, considering the rising costs of college and the length of time it can take students to complete their degrees.

Keep in mind, too, that parents are not required to pay for their child’s college education. College students can rely on cash savings, scholarships, and both federal and private student loans to cover the cost of college.

Recommended: Examining the Different Types of Student Loans

Strategies for Tuition Cost-Sharing Between Parents

Let’s take a look at some strategies for how to pay for college for divorced parents, from negotiating contributions to making proportional payments based on income.

Negotiating Contributions

It’s important to review your financial situation together, consider the resources each parent can draw from, and figure out which types of expenses to cover. It’s best to create a written plan using an attorney or mediator to outline how you’ll manage college costs. The financial situation of each party should dictate a customized plan.

It’s important to note that when splitting costs, you may not be able to divide costs right down the middle (though splitting it 50/50 might make sense if both parents have a similar income and educational values). For example, your ex may not agree on the necessity of studying abroad or expensive curtains for a dorm room. Since those expenses aren’t “necessary,” either the parent who wants to pay for them can, or the student can be responsible for paying for non-essential expenses on their own.

Proportional Payments Based on Income

Those undergoing divorce often agree to split college expenses based on income. If one partner has a significantly smaller income than the other, the income disparity may be taken into account. For example, if one parent makes 80% of the combined income, that parent would be responsible for 80% of college costs and expenses.

Maximizing Financial Aid Eligibility

To qualify for financial aid, students must fill out the Free Application for Federal Student Aid, or FAFSA. For divorced or separated parents, the FAFSA process may differ from that of married parents.

Reporting Divorced Parent Information

The FAFSA is a free application that students can use to apply for federal, state, and institutional aid. Every family should file the FAFSA, and how you fill it out depends on whether you and your ex live together or not.

You answer questions on the FAFSA about the parent who provided more financial support that year. If that parent has remarried, the stepparent’s financial information will also be required.

The parent’s income and assets are used to calculate the Student Aid Index (formerly the Expected Family Contribution), which determines the student’s eligibility for federal financial aid. The parent who provided the least financial support is not required to put their financial information on the FAFSA, but it may be needed for other financial aid applications, such as the CSS Profile, which some private colleges require.

If you’re divorced and live together, you’ll add “unmarried and both legal parents living together” and answer questions about both of them on the FAFSA. Note that if you are separated from your spouse but still live together, you’ll indicate your marital status as “married or remarried,” not “divorced or separated.”

Special Circumstances Considerations

If you get divorced during the middle of a school year, you may want to submit a special circumstances form through the financial aid office of the school your child attends. The financial aid office may take a divorce into consideration and readjust your child’s aid award due to your financial situation. Anytime you experience a change in income or assets, notify the admissions office immediately.

Loans and Financing Options for Divorced Parents

Even with financial aid, scholarships, and savings, many families find they still need additional funds to cover college costs. Several financing options are available to help bridge the gap, including:

•   Federal Parent PLUS Loans: Parent PLUS Loans are available to parents of dependent undergraduate students. They offer a fixed interest rate and flexible repayment options. However, they require a credit check, and parents are responsible for repayment.

•   Private Student Loans: These loans are offered by private lenders and can be used to pay for college costs not covered by financial aid. Interest rates and terms vary, and a cosigner may be required.

•   Home Equity Loans or Lines of Credit: If you own a home, you may be able to tap into your home’s equity to help pay for college. These loans often have lower interest rates than other types of loans, but they put your home at risk if you can’t repay.

•   Payment Plans: Many colleges offer payment plans that allow you to spread tuition payments over the course of the year. This can make payments more manageable without accruing interest.

Tax Implications and Benefits

Fortunately, there are tax benefits to paying for college, beginning with claiming your student as a dependent.

Claiming the Student as a Dependent

Claiming a student as a dependent can save you thousands on your taxes. You can claim a college student as a dependent on your tax return as long as the student is younger than you, under age 24, and a full-time student for at least five months of the year.

Education Tax Credits and Deductions

Worried you can’t afford a child’s college bills? Don’t forget that tax credits and other tax benefits can offset the qualified costs of college or career school (tuition, fees, books, supplies, equipment). These benefits include:

•   American Opportunity Credit: The American Opportunity Credit allows you to claim up to $2,500 per student per year for the first four years of school your child is in school.

•   Lifetime Learning Credit: The Lifetime Learning Credit allows you to claim up to $2,000 per student per year for tuition and fees, books, supplies, and equipment.

•   QTP/529 Plan: If you contribute to a QTP/529 plan to prepay or save for education expenses, you can withdraw the money you put in, tax-free.

•   IRA Withdrawals: If you take money from an individual retirement account (IRA), you owe federal income tax on the amount you withdraw, but not the withdrawal penalty.

Communicating and Collaborating with Your Ex

Effective communication with your ex-spouse is key to successfully navigating college financing. Even if your divorce was contentious, it’s important to set aside differences and focus on what’s best for your child. This includes discussing financial responsibilities, coordinating on financial aid applications, and agreeing on a plan for covering any remaining costs.

It’s also important to involve your child in discussions about financing their education. Be open about the costs, what you and your ex-spouse can contribute, and what they may need to cover through scholarships, work-study programs, or student loans. This helps set realistic expectations and encourages your child to take an active role in their financial future.

The Takeaway

Paying for college can be a daunting task for divorced parents, but with careful planning, communication, and collaboration, it’s possible to navigate the challenges successfully.

You should start by understanding the legal obligations and exploring all available financial aid options. Work together with your ex-spouse to create a plan that works for both of you, and involve your child in discussions about financing their education.

Options for paying for college as a divorced parent include splitting the cost with your ex based on each of your incomes, having your student apply for scholarships, and relying on both 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

How is the expected family contribution calculated for divorced parents?

The expected family contribution (EFC) has been revamped to become the Student Aid Index (SAI) through the FAFSA Simplification Act. The SAI evaluates the financial resources that a student may contribute toward educational expenses. Because of the FAFSA Simplification Act, the parent who provided the most financial support during the year is the income that will be used to determine the SAI.

What if one parent refuses to pay for college?

Parents — married or divorced — are not obligated to pay for college. Child support might terminate when the child reaches the age of majority (such as 18 or 21), and students enrolled in a postsecondary educational institution might have to access financial support through college. Check with a family law attorney licensed in your state to give you guidance about who may be obligated to pay for college.

Can stepparents be required to pay for college tuition?

Stepparents are usually not required to financially support stepchildren, but in a few instances, family court may require a stepparent to pay financial support for a stepchild. Various factors may come into play, including the length of the marriage, relationship between stepparent and stepchild, existing financial support, and more.

Photo credit: iStock/FG Trade

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOISL-Q324-031