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Remodeling a primary bathroom can provide a spa-like sanctuary while adding value to your home. With some design upgrades, including countertops, tile, fixtures, cabinetry, and bathtub, you can create a new look that really makes a splash.

The vast array of materials, colors, and design choices can be overwhelming. To help get you started, read on for 20 primary bathroom — formerly referred to as a “master bathroom” — remodel ideas.

How the Primary Bathroom Has Changed Over Time

In the 1960s and 1970s, people started migrating from the cities to suburbia. More space meant more square footage. Initially, a primary bath meant a bigger bathroom with a double sink.

In the 1980s, opulence was king. Primary bathrooms meant sunken jetted tubs, lavish fixtures, and expansive countertops for perfume bottles and dressing vanities.

Today, many real estate agents and developers use only the term “primary” bathroom or bedroom and have dropped “master” from the vernacular (even though the National Association of Realtors® has noted that a HUD opinion said “master” in this context is not related to race or gender and therefore does not violate fair housing laws).

While primary bathrooms are still spacious, style trends have taken a more subtle turn toward organic materials and earthier tones.

Regardless of trends, the primary bathroom is here to stay, and is considered a must-have for many first-time homebuyers and experienced buyers.

What Is the Average Size of a Primary Bathroom?

A primary bathroom is defined as the largest bathroom in the house, and is almost always connected to the primary bedroom. A suburban primary bath averages 100 square feet but may range from 75 to 210 square feet.

A primary bathroom typically features:

•   A double sink

•   A large shower

•   A toilet

A bathtub is not a requisite, but these days most homebuyers want a tub in the primary bathroom, especially if there is not another one in the house.

10 Standard Primary Bathroom Remodel Ideas

An average-size primary bathroom renovation may cost $10,000 to $30,000, depending on material types, labor costs (do you need to find a contractor?), and the scope of the project.

Here are 10 remodeling ideas for a standard primary bath that can offer panache for your cash.

1. Refresh Your Countertops

Replacing worn-out countertops in a primary bath can transform the feel of the space. Granite, marble, and quartz counters add a sense of contemporary elegance but cost more than laminate.

Granite can cost $180 to $330 per square foot; marble, $110 to $200; and quartz, $50 to $150. Laminate costs around $50 to $80 per square foot. That’s just the materials.

2. Go for the Hip, Hip Bidet

While common in Europe and Japan, bidets are finally gaining popularity in the United States. Because bidets limit the use of toilet paper, they are considered good for the environment and better for your skin.

A stand-alone bidet with installation can run between $500 and $2,000. An all-in-one bidet toilet can cost anywhere from $1,200 to $2,500.

3. Install a Walk-in Shower

Walk-in showers are usually partially enclosed with glass — devoid of doors, tubs, and shower curtains. The lack of barriers creates an open, contemporary look, almost like bathing in an outdoor shower.

Beyond being stylish, walk-in showers are accessible. With no steps or ledges to trip over, this type of shower remodel will age well with you and your home.

4. Consider Shower Speakers

As long as you’re redoing the shower, you might as well add some in-ceiling shower speakers. These advanced sound systems offer hands-free use, connecting to voice assistants like Siri or Alexa. Singing in the shower never sounded so good!

5. Install a Fan Timer Switch

A long, hot shower can generate a lot of steam. A smart-fan timer will sense the amount of steam and moisture in the air, turning on and staying on long after you’ve toweled off. This can prevent water damage, excess moisture, and potential mold.

6. Upgrade Outdated Fixtures

Switching out your old faucets, knobs, and light fixtures is a quick and cost-efficient way to spiff up your primary bathroom.

7. Tile an Accent Wall

Retiling the entire bathroom can take a big bite out of your wallet. Some homeowners are choosing to tile a single wall or focal area. You can energize the space by contrasting white subway tiles with a colorful wall of hexagonal tiles.

8. Elevate Your Look With Floating Shelves

Even a primary bathroom can use more storage. Floating shelves on the walls can help achieve a sleek, minimalist look and cost less than installing cabinets.

If the bathroom has a closet or you’d like to add one, a closet remodel might be in order.

9. Keep Things Cozy With Heated Floors & Towel Racks

If you’re renovating your primary bathroom floors, perhaps you could put in an electric or water-based heating system. This will ensure toasty toes without clunky radiators or exposed pipes.

Heated towel racks provide warmth in the winter and a quick-drying option for summer beach towels, all for about the same electric costs as flipping on a light switch.

10. Outlets in the Vanity Drawers

A primary bath typically has a lot of vanity drawers. Installing outlets inside the drawers will help keep hair dryers, electric razors, and other appliances from cluttering your countertop.

10 Small Primary Bathroom Remodel Ideas

Not every primary bathroom has enough space for a Jacuzzi tub. Here are some remodeling ideas for a small master bath.

1. Install a Pocket Door

Doors that open on hinges can take up a lot of space. A sliding pocket door to the bathroom can make the primary bath feel much roomier.

2. Add a Skylight

Adding a skylight in your primary bathroom can flood the space with natural light, making it feel more airy and spacious. So can recessed lighting.

3. Choose a Long Sink

Instead of the standard double sink, consider a long, troughlike sink for a primary bathroom vanity. It can provide a chic, modern look, and the elongated sink creates the illusion of more space.

4. Mount an Elongated Mirror

As with a long sink, stretching a mirror across a whole wall, instead of just over the vanity, can add depth and extra reflective light.

5. Opt for a Floating Vanity

A floating vanity is a cool design choice for a smaller primary bath. It can add openness and more space underneath the sink for storage.

6. Add Lights Under the Cabinets

Cabinets, vanities, and shelves can cast a shadow on the floor, darkening a master bathroom and making it feel smaller. Installing lights underneath countertops and storage units can cast a downward light to add dimension.

7. Stretch the Floor Tiles Into the Shower Stall

If you have a walk-in shower, consider extending the floor tiles into the shower stall floor. The continuity of design will give the illusion of a longer space.

8. Add Storage

Select bathroom pieces with a dual purpose: mirrors with built-in shelves, a vanity with multiple drawers. Containing your clutter will make the primary bath seem bigger and is one of the ways to refresh your home.

9. Consider a Freestanding Bathtub

Although a stand-alone tub can need more room for its fixtures, a clawfoot or modern oval bathtub can make a small primary bathroom feel grand.

10. Stick to Light Colors

Soft whites, blues, and greens reflect natural light from windows and skylights, making the primary bath seem more spacious. Choose light vs. dark colors for wall paint, shower curtains, and countertops.

Ways to Finance a Primary Bathroom Remodel

A primary bathroom renovation can add up. Here are several ways to finance the project.

HELOC

If you own your home and have sufficient equity, you may be able to open a home equity line of credit (HELOC), using your home as collateral. You’ll only make payments on the amount you borrow, the limit may be higher than a personal loan, and a HELOC usually has a lower interest rate than a credit card or personal loan.

But the rate is usually variable and can increase, and you could face closing costs and a minimum-withdrawal requirement. If you default on a HELOC, you risk losing your house.

Still, HELOCs tend to be hot when interest rates are rising.

Cash-Out Refinance

If you have sufficient home equity, you can apply for a cash-out refinance. You would refinance your home mortgage loan for more than you owe, take out part of the cash difference, and use the lump sum to build your new primary bathroom.

Expect mortgage refinancing costs of 2% to 6% of the loan amount.

Personal Loan

With a personal loan for home improvements, you can receive a lump sum and repay it with interest in monthly installments. These loans typically offer same-day funding with no collateral required. The rate is based on the loan term, the amount of credit requested, and your credit score.

Credit Card

If you have a 0% interest period on a credit card, it could be a smart way to pay for your primary bath reno. But unless you pay attention to the end of that introductory period, you could end up buried in interest charges. A missed payment will hurt your credit scores, and most of the time a late payment will stay on a credit report for seven years.

The Takeaway

Remodeling a primary bathroom will add value to your home and create a retreat where you can invest in some serious self-care. The cost to remodel has a wide range.

How to renovate so you can luxuriate? SoFi offers a personal loan of $5,000 to $100,000 with no fees, as well as a cash-out refinance.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

FAQ

Does remodeling a bathroom increase home value?

Yes. One study showed that the average full bathroom remodel cost of at least $25,000, and homeowners could expect a return on investment upon resale of more than 60%.

What is the biggest expense in a bathroom remodel?

Labor in general. Plumbing and tile work in particular. Want to move the toilet? That’s a complicated task.

What is trending in bathrooms?

Steam showers, towel and floor heaters, and spa-inspired decor. Vintage-inspired sinks, mirrors, light fixtures, and clawfoot tubs. Wet rooms, where the shower, tub, sink, and toilet are all in the same room at the same level. Earth tones and jewel tones. Smart devices.

What should you not do when remodeling a bathroom?

A downward-facing light centered over the mirror can cast a shadow. Other mistakes: not adding enough storage, buying fixtures made with plastic parts instead of metal, installing a hook out of reach from the shower, and not adding a hand shower, which will mean a tougher task cleaning the shower walls.

Photo credit: iStock/stocknroll

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SOHL-Q125-048

When applying for financial aid to fund their college educations, students and their parents are often introduced to words they’d never heard of before. To help you learn the lingo, here are definitions of important financial aid terms, plus information about different ways to pay for college.

Award Letter

A financial aid award letter goes by a few different names: merit letter, award letter, a financial aid offer, or a financial aid package. But no matter what you call it, once a student fills out a FAFSA, they’ll receive one of these letters from each college that accepts them. A typical letter will list a student’s cost of attendance, expected family contribution, awarded grants and scholarships, work-study details, and federal student loans. Many schools now provide this information electronically.

Bursar, Student Accounts, or Student Financial Services

The bursar is the office responsible for managing student billing and payments at a college or university. This department handles tuition, fees, and other charges, ensuring that students’ accounts are up to date.

The student accounts office oversees the financial records of enrolled students, including tuition payments, fees, and any outstanding balances. This office ensures that students meet their financial obligations and may assist with setting up payment plans, issuing statements, and explaining charges on a student’s account.

Student financial services is a broader department that combines financial aid, student accounts, and sometimes the bursar’s office to provide comprehensive support. This office helps students understand financial aid packages, manage tuition payments, and explore funding options such as scholarships, grants, and loans.

Cost of Attendance

A student’s cost of attendance (COA) is the total of all costs to attend college in a given year. This includes tuition, room and board, book and supplies, loan fees, costs associated with studying abroad or managing a disability, and more.

The COA is different from an invoice a college may send a student, which is more comprehensive. The COA figure is used to determine how much financial aid a student may be eligible to receive. Anyone who receives a form of financial assistance is not responsible for paying the full COA.

CSS Profile

The CSS Profile (College Scholarship Service Profile) is an online financial aid application used by many colleges, universities, and scholarship programs to determine a student’s eligibility for nonfederal financial aid. Unlike the FAFSA, which is used for federal aid, the CSS Profile provides a more detailed analysis of a family’s financial situation, including income, assets, and expenses. Administered by the College Board, the application helps institutions award need-based grants, scholarships, and institutional aid.

Demonstrated Need

Demonstrated need is the difference between the cost of attendance (COA) at a college or university and a student’s Student Aid Index (SAI), as determined by financial aid applications like the FAFSA or CSS Profile.

Schools use this figure to determine a student’s eligibility for need-based financial aid, including grants, scholarships, and subsidized loans. The higher the demonstrated need, the more financial assistance a student may qualify for, though the amount awarded varies by institution and available funding.

Enrollment Status

Enrollment status refers to a student’s classification based on the number of credit hours they are taking in a given academic term, which can affect financial aid eligibility, loan repayment, and other benefits.

Common statuses include full-time, half-time, and part-time, with full-time students typically taking at least 12 credit hours per semester.

FAFSA (Free Application for Federal Student Aid)

FAFSA is the official government form that students must fill out to be eligible for federal student loans and grants. Filling the FAFSA out does not guarantee that a student will receive aid, but it must be completed annually in order to be considered for the upcoming academic year. The information provided will be used to calculate a student’s Student Aid Index (below).

Recommended: Who Qualifies for FAFSA? Find Out if You Do

FAFSA Submission Summary

FAFSA submission summary (formerly known as the Student Aid Report or SAR) is a document provided to students after they submit the Free Application for Federal Student Aid (FAFSA). It summarizes the information reported on the FAFSA, includes the Student Aid Index (SAI), and indicates potential eligibility for federal financial aid.

Financial Aid

Financial aid refers to funding provided to students to help cover the cost of higher education, including tuition, fees, books, and living expenses. It can come from various sources, such as the federal government, state agencies, colleges, and private organizations.

Recommended: FAFSA Grants and Other Types of Financial Aid

Financial Aid Office

The financial aid office is a department within a college or university that assists students in understanding, applying for, and managing financial aid. It provides guidance on available aid options, including grants, scholarships, loans, and work-study programs. The office helps students complete required forms like the FAFSA and CSS Profile, determines eligibility for aid, and processes disbursements.

Financial Aid Officer

A financial aid officer is a professional at a college or university who helps students and families navigate the financial aid process. They assist with completing applications like the FAFSA and CSS Profile, determine eligibility for grants, scholarships, and loans, and provide guidance on payment options.

Financial aid officers also explain award packages, help students understand borrowing responsibilities, and offer advice on managing education costs.

529 Savings Plan

A 529 savings plan is a tax-advantaged investment account designed to help families save for future education expenses. Contributions grow tax-free, and withdrawals for qualified education costs — such as tuition, fees, books, and room and board — are also tax-free. These plans are sponsored by states, educational institutions, or agencies, but funds can typically be used at eligible schools nationwide.

Grant

Grants are used to help fund a qualifying student’s college education, and unlike loans, they typically don’t need to be paid back. They are often based on financial need and are available from private and public organizations. Some grants have criteria that a student must meet, such as maintaining a certain grade point average or declaring a certain major.

Loan

A student loan is a type of financial aid designed to help students cover the costs of higher education, including tuition, fees, books, and living expenses. These loans can come from federal or private lenders, with federal loans typically offering lower interest rates and more flexible repayment options.

Recommended: Private Student Loans

Merit Aid

Merit-based assistance is based upon a student’s abilities and accomplishments. This can include their grade point average, athletic achievements, or another skill. Financial need is not typically taken into account. Students generally receive merit-based aid directly from the college.

Need-Based Financial Aid

Need-based assistance is provided to students based on their financial needs, and is commonly offered by federal and state governments, colleges, and other organizations. There are three types of federally granted need-based financial aid: Pell Grants, work-study programs, and Subsidized Direct Student Loans.

To qualify for federal need-based aid, a student must fill out the FAFSA. Colleges may require additional information for non-federal aid. Simply applying for need-based aid does not mean a student will receive it, though applying early may potentially improve their chances.

Need-Blind Admission

Need-blind admission is a policy used by some colleges and universities where an applicant’s financial need is not considered during the admissions process. This means that students are admitted based on their academic qualifications and achievements, without regard to their ability to pay for tuition or other expenses.

Schools with a need-blind policy often provide financial aid packages to help cover the cost of attendance for admitted students, regardless of their financial background. This approach aims to ensure that all qualified applicants, regardless of financial resources, have equal access to higher education.

Net Price

The net price of college refers to the amount a student and their family will actually pay for college after accounting for financial aid, scholarships, and grants. Unlike the sticker price or listed tuition fees, the net price subtracts any aid offered by the school, making it a more accurate reflection of the cost a student will need to cover.

Net Price Calculator

A net price calculator is an online tool provided by colleges and universities to help prospective students estimate the amount they may need to pay for college after financial aid is applied. By inputting financial information, such as family income, assets, and other relevant details, students can receive an estimate of their net price, including tuition, fees, and potential financial assistance in the form of grants, scholarships, and work-study.

Outside Scholarship

An outside scholarship is a financial award for education that comes from sources other than the college or university a student plans to attend. These scholarships can be offered by private organizations, foundations, corporations, or government agencies and are typically based on criteria such as academic achievement, community service, or specific interests.

Recommended: SoFi’s Scholarship Search Tool

Priority Date

A priority date refers to the deadline set by colleges or financial aid programs for submitting the FAFSA or other required financial aid forms to receive maximum consideration for aid. Students who apply by the priority date are more likely to qualify for limited funding sources, such as grants, scholarships, or work-study opportunities.

Reserve Officers’ Training Corps (ROTC)

The Reserve Officers’ Training Corps (ROTC) is a college-based program that prepares students for military service as commissioned officers while allowing them to earn a degree. ROTC programs are available for the Army, Navy, and Air Force, and students typically commit to military service after graduation in exchange for financial assistance.

ROTC can significantly reduce or eliminate student loan debt by providing scholarships that cover tuition, fees, and sometimes room and board. Additionally, ROTC graduates who serve in the military may qualify for student loan repayment programs, where a portion of their loans is paid off in exchange for active-duty service.

Recommended: Does ROTC Pay for College?

Residency Requirements

Residency requirements refer to the criteria a student must meet to be considered a resident of a particular state for tuition and financial aid purposes. These requirements vary by state and typically include factors such as the length of time a student has lived in the state, proof of permanent residency (e.g., driver’s license, voter registration), and financial independence from out-of-state parents.

Scholarship

A scholarship is a type of funding awarded to students to help them pay for a college education. They are available through federal and state government sources, colleges, private and public organizations, and more.

Unlike loans, scholarships typically don’t need to be repaid. They can be based on need or merit, or a combination of the two. There is a wide range of scholarship possibilities, so it can be worthwhile for the student to research their options and apply for ones that seem to be a good match.

Recommended: Finding Scholarships for Current College Students

Student Aid Index (SAI)

The Student Aid Index (SAI), formerly Expected Family Contribution, is a number colleges use to determine a student’s eligibility for financial aid. It’s calculated using a formula that considers a family’s income, savings, investments, benefits, family size, and more.

Recommended: How the Middle Class Affords College

Transcript

A transcript is an official record of a student’s academic performance and coursework completed at a school, college, or university. It typically includes details such as courses taken, grades received, credit hours earned, and cumulative GPA.

There are two types of transcripts: Official and unofficial. An official transcript is a certified record of a student’s academic history, issued by the school with an official seal or signature, often sent directly to institutions or employers. An unofficial transcript contains the same information but lacks official authentication and is typically used for personal reference.

Undergraduate

An undergraduate is a student who is pursuing a postsecondary education program that leads to an associate or bachelor’s degree. Undergraduates typically complete general education courses along with coursework specific to their chosen major. Unlike graduate students, they have not yet earned a bachelor’s degree and are in the early stages of higher education.

Work-Study

The federal government’s work-study program provides college students who have demonstrable financial need with part-time jobs to help them earn money for their college education. The program attempts to match a student with work in their area of study or in jobs that benefit the community. Students who are interested in this program should check with their colleges of choice to see if they participate.

Private Student Loans at SoFi

When it comes to how to pay for college, it helps to understand all the available options and how they may be combined. Students and their parents may have money to contribute to help cover the expenses. Scholarships and grants can reduce the bill and typically don’t need to be paid back, while work-study opportunities allow students to earn money to cover some expenses while in college. And lastly, students can rely 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

What is a cosigner?

A cosigner helps assure lenders that someone will pay back the loan. Their income and financial history are factored into the loan decision, and their positive credit standing can benefit the student’s loan application.

What’s the difference between a student loan lender and a student loan servicer?

Lenders lend borrowers money to help cover school-related costs. Servicers send borrowers their monthly bill, process payments, field customer service requests, and handle other administrative tasks.

How do I calculate my college costs?

There are several online tools to help students estimate the potential cost of attending college. Net price calculators, for instance, are available on a school’s website and give cost estimates based on basic personal and financial information provided by the student.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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SOISL-Q125-016

All student loans are not alike. In fact, shopping around for a loan is not so different from buying a car. Some lenders offer better deals than others, and it helps if you know a little something about what’s “under the hood.”

Read on to find out what to look for when comparing student loans — from interest rates and fees to payback terms and special protections for borrowers. Soon, you’ll be able to choose a loan with confidence that it’s the right one for you.

Understanding Private Student Loans

Private student loans can help bridge the gap when federal aid and scholarships aren’t enough to cover the full cost of college. Unlike federal loans, which are backed by the government, private student loans are offered by banks, credit unions, and online lenders, each with its own terms, interest rates, and eligibility requirements.

What Are Private Student Loans?

Private student loans are education loans provided by private lenders to help students pay for tuition, books, and living expenses. They typically require a credit check and may have fixed or variable interest rates. Unlike federal loans, private loans do not offer benefits like income-driven repayment plans or loan forgiveness programs.

Recommended: A Complete Guide to Private Student Loans

Differences Between Private and Federal Student Loans

Private and federal student loans differ in several key ways, including eligibility requirements, interest rates, and repayment options.

Federal loans are funded by the government and typically offer fixed interest rates, income-driven repayment plans, and loan forgiveness programs, making them more flexible for borrowers. They do not require a credit check (except for PLUS loans) and often have lower interest rates.

In contrast, private student loans are provided by banks, credit unions, and online lenders, usually requiring a credit check and often a cosigner. These loans may have fixed or variable interest rates, fewer repayment options, and no federal borrower protections.

Undergraduate Student Loans

Undergraduate private student loans are designed for students pursuing a bachelor’s degree. These loans typically require a creditworthy cosigner since most undergraduates have limited credit history. Interest rates may be fixed or variable, and repayment options vary by lender.

Graduate Student Loans

Graduate student loans cater to students seeking advanced degrees, such as master’s, law, or medical degrees. Students can access federal loans, like Direct Unsubsidized Loans and Grad PLUS Loans, which typically offer fixed interest rates and flexible repayment options. Private lenders also provide graduate loans, often requiring a credit check or cosigner for approval.

Specialized Student Loans

Some private lenders offer specialized student loans for specific fields, such as medical, dental, law, or business school students. These loans may have unique benefits, like extended grace periods, higher borrowing limits, and flexible repayment options to accommodate the rigorous demands of certain professional programs.

Recommended: What You Need to Know About Student Loans, Grants, and Scholarships

4 Key Factors to Consider When Comparing Loans

When comparing private student loans, it’s important to evaluate several key factors to ensure you choose the best option for your financial needs. Weighing the factors below will help you choose the right lender and loan for you.

1. How Much Do You Need to Borrow?

When calculating how much you’ll need to borrow the first year, answer the following questions to the best of your knowledge:

•   Will you have an off-campus job?

•   Will you receive any tuition assistance from your family?

•   How is tuition structured at your institution? At some colleges, you may pay per credit. Other colleges have flat tuition, regardless of how many credits you take.

•   Living expenses should be a part of your calculations. Are there ways to trim those costs? For example, can you live at home or with roommates? Can you rely on public transportation instead of your own car?

•   How many years will it take to complete your course of study? Does it make sense to take an accelerated program and complete coursework in fewer years? On the flip side, can you stretch out coursework to make more time for a part-time job?

•   Do you need to spend all four years at your first-choice college? Some students minimize their overall tuition bill by spending a year or two at a state or community college before transferring to a pricier dream school.

You may even want to look at how well your future income will cover your bills after graduation. Search job listings and talk to recent grads in your potential field of study to get the scoop on entry-level salaries.

All this will give you a solid understanding of how much you’ll need to borrow. The next step is to compare the loans available from a variety of lenders.

2. Do You Need a Cosigner?

Private loan terms are mostly determined by the borrower’s financial history, employment status, and credit score. The longer your history and higher your score, the better your interest rate. Since most students have a minimal credit history, they often apply for student loans with a cosigner.

A cosigner is someone who agrees to pay the loan in case the main borrower is not able to. A cosigner needs to provide financial information (such as employment status) and agree to have their credit checked. Should there be any issues with repayment on the loan, both the borrower’s and the cosigner’s credit may be affected.

3. What Are the Loan Terms?

Your loan “terms” will determine the overall cost of your loan and your monthly payments. These terms include:

Interest Rate

Your interest rate will partly determine how much money you owe over the life of the loan. Many private lenders have an online tool that allows potential borrowers to see their estimated interest rate before they apply for the loan.

Interest rates may be either fixed or variable. A fixed rate means the rate won’t change during the life of the loan. A variable rate can fluctuate over time. Variable rates may start lower than fixed rates but can go higher in the future. Sometimes, a variable rate makes sense for people who plan to pay off the loan quickly. A fixed rate is a good idea for people who want to budget the same amount per month.

Length of Loan

A shorter loan term typically has higher monthly payments but is less expensive, since interest has less time to accrue. A longer repayment period usually has lower monthly payments, but will cost you more in interest overall.

Another factor to consider is prepayment penalties. This is when a lender charges you a fee for paying off your loan before the end of the loan term. Many private lenders allow prepayment without any fees, but make sure to check with any lenders you are considering.

Repayment Options

Repayment schedules vary by lender. Some may allow borrowers who are in school to defer payment until after they graduate. Others may allow student borrowers to make interest-only payments.

Find out whether or not the lender offers flexibility in switching repayment plans during the life of the loan.

Loan Fees

Lenders make money on loans by charging borrowers interest. Some student loan lenders also charge additional fees. Student loan fees may include:

•   Origination fees – charged by the lender for processing the loan

•   Late payment fees

•   Returned-check fees

•   Loan collection fees

•   Forbearance and deferment fees

Before you choose a private loan, find out what fees (if any) you may incur.

Recommended: How Do Student Loans Work?

4. How Good Is the Lender’s Customer Support?

The above three factors are what’s known as “loan terms.” The last factor has to do with how the lender will support you, the borrower, during the life of the loan. This includes:

Customer Service

If you have questions or concerns, how can you contact your lender? Can you call a live person, or must you deal with a chatbot?

Financial Tools

Some lenders offer financial resources and tools to their borrowers, such as webinars, articles, and calculators.

Factors Affecting Private Student Loan Rates

Private student loan interest rates are influenced by several factors, including the borrower’s creditworthiness, loan term, and whether the rate is fixed or variable. Lenders assess financial history, income, and the presence of a cosigner to determine risk. Additionally, market conditions and lender policies play a role in setting interest rates.

Credit Score

A borrower’s credit score is one of the most significant factors affecting private student loan rates. Higher credit scores typically qualify for lower interest rates, as they indicate responsible financial behavior and lower risk to lenders. Those with lower credit scores may face higher rates or require a cosigner to secure better terms.

Pros and Cons of Private Student Loans

Private student loans can be a useful option for borrowers who need additional funding beyond federal aid. While they offer flexibility and higher borrowing limits, they also come with potential downsides, such as varying interest rates and fewer borrower protections. Understanding the pros and cons can help determine if they are the right choice.

Benefits of Private Student Loans

Benefits of private student loans include:

•   Higher borrowing limits than federal loans

•   Competitive interest rates for borrowers with strong credit

•   Flexible repayment options, such as interest-only payments while in school or extended loan terms

Drawbacks of Private Student Loans

Cons of private student loans include:

•   Lack income-driven repayment plans and loan forgiveness options

•   Higher interest rates for those with lower credit scores

•   Often require a cosigner, which can put financial responsibility on someone else if the borrower struggles with repayment

The Takeaway

If you’re new to borrowing money — as most undergrads are — you may not know what to consider when choosing a student loan. Before you shop around, determine how much you need to borrow by creating a college budget that includes tuition and fees, books and supplies, and living expenses.

When comparing loans from different lenders, you’ll want to look at the interest rate, length of the loan, any fees and penalties, and the lender’s reputation for customer service. It all comes down to saving money over the life of the loan. If you’re careful, you won’t pay more than you need to.

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 factors should you consider when comparing student loan lenders?

When comparing lenders, consider interest rates, loan terms, fees, repayment options, and customer service reputation. Evaluating these factors ensures you choose a lender that offers the best financial flexibility and minimizes long-term borrowing costs.

How do interest rates impact the cost of a student loan?

Interest rates determine how much you’ll pay over the life of the loan. Fixed rates provide stable payments, while variable rates can change over time, potentially increasing costs. Choosing a lower rate can help reduce total repayment amounts.

What are some common repayment options offered by student loan lenders?

Many lenders offer options like deferment while in school, interest-only payments, and income-driven repayment plans. These flexible repayment options can help students manage their finances and avoid defaulting on their loans.

Photo credit: iStock/LSOphoto

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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

SOISL-Q125-015

You may have a debit card in your wallet and swipe, tap, or wave it over a terminal multiple times a day. But did you ever take a moment to think about what an impressive invention that little rectangle of plastic actually is?

Debit cards offer an extremely convenient payment method and are a relatively recent addition to banking services. To learn more about these handy payment cards, keep reading for 21 debit card facts.

21 Interesting Debit Card Facts

Want to learn some interesting facts about debit cards? These are debit card facts that may surprise you.

1. Over 90% of Americans Have a Debit Card

Recent surveys reveal that over 90% of Americans have a debit card that’s typically linked to their checking account. That’s a lot of plastic! Many people have multiple debit cards. One report noted that there were at least 1.2 billion debit cards in the U.S.

2. Most Debit Cards Have a Familiar Logo

Many debit cards feature the Mastercard or Visa logo, even if your bank sends you the card. This means those two familiar card issuers’ networks can help support the transaction.

Over 60% of debit card transactions are run on Visa-branded cards, making them the most popular of the players.

3. Debit Cards Followed Store Credit

Who came up with the ingenious idea for a debit card? Store cards likely sparked the idea. Before debit and credit cards launched, if someone didn’t want to make payments in cash (or couldn’t afford to), they often had the option to use store credit. U.S. banks actually got the idea for debit cards from the store credit system in the 1940s.

Recommended: How to Earn Passive Income

4. Magnetic Stripes Debuted in the Late 1960s

Magnetic stripes quickly became the preferred method for making plastic cards machine-readable in the late 1960s. In early 1971, the American Bankers Association (ABA) endorsed the magnetic stripe — also known as the magstripe — to make plastic debit cards readable on a machine. This helped usher in a new era of convenience, although debit cards were originally better suited for withdrawing cash from an ATM than shopping.

5. Magnetic Stripes Are on the Decline

Nowadays, magnetic stripes are becoming less popular as new technologies evolve. By 2033, Mastercard doesn’t plan to use magnetic stripes on their debit or credit cards at all anymore.

6. Kids Can Get Debit Cards

While 18 is usually the minimum age to open a bank account, some kids’ accounts come with debit cards. Chase offers a First Banking account with a debit card for those ages six to 17, and Greenlight and Acorn Early also offer debit cards for young customers.

7. Metal Debit Cards Exist

While many of us are accustomed to plastic debit cards, some issuers make them out of metal. For instance, N26, an online bank overseas, offers premium banking clients a card made of 18 grams of stainless steel, in three different metallic shades.

8. Some Debit Cards Are Going Green

Starting in 2023, Bank of America is beginning to use recycled plastic for all of its debit and credit cards. This move is aimed to help reduce the amount of single-use plastics by 235 tons. It’s a good example of green banking at work.

9. Most People Have Daily Debit-Card Spending Limits

There may be exceptions to the rule, but most debit cards come with limits about how much you can swipe per day. These limits are typically between $200 and $5,000 per day, or higher still. Check your agreement with your bank to find your financial ceiling.

Recommended: Guide to Paying Credit Cards With a Debit Card

10. The Public Resisted Debit Cards Initially

At first, people said a big “thanks, but no thanks” to debit cards. In 1972, a report commissioned by the Federal Reserve Bank in Atlanta found that the majority of the public didn’t support any kind of electronic payments system. Times have certainly changed.

11. You Can Customize the Photo on Your Debit Card

Do you like expressing yourself? Some financial institutions will let you put the photo of your choice on your debit card. For instance, Wells Fargo shows an example of putting an image of a furbaby on their debit card.

12. A West Coast Bank Released the First Debit Card

Debit cards made their debut in 1978, thanks to the First National Bank of Seattle. However, some say an early forerunner was introduced in the 1960s by the Bank of Delaware and should get credit as the true pioneer. Either way, it shows debit cards have been around for a while.

13. Debit Cards May Carry Fees

While you won’t rack up debt and charges the way you could with a credit card, not all debit card transactions are free. For instance, if you use your debit card to get cash at an out-of-network ATM, you might get hit with a charge. Or if you overdraw your account, you might get a fee similar to those incurred when you bounce a check. Check your account agreement or ask a bank rep for details. You may find that online banks charge no fees or lower fees than traditional ones.

14. UK Banned All Debit Card Surcharges

Originally, debit cards in the UK came with fees, such as processing charges. However, in 2018, the UK government banned any surcharges on debit cards which makes it possible to use them for a transaction of any size, even super small ones, without fees being added.

15. Chip Technology Leads to Contactless Payments

During the pandemic, contactless payments surged in popularity. This was made possible by chip technology. With chip technology, consumers can simply hold their debit card over a payment terminal to make a payment. There’s less risk of passing germs around via touch.

16. Chip Technology Doesn’t Require a PIN

Not only does chip technology make it possible to skip entering a debit card physically into the payment terminal, the use of a PIN may not be required.

17. You Can Be Liable for Charges on a Lost Debit Card

There’s a downside to the convenience of debit cards. If yours is lost or stolen, the Federal Trade Commission (FTC) you’ll be liable for:

•   $0 if reported immediately and before any unauthorized charges are made

•   Up to $50 if you notify the bank within two days

•   Up to $500 if you notify the bank within 60 days after your statement was issued showing unauthorized usage

•   Unlimited if you don’t notify the bank within 60 days of the statement showing unauthorized usage being issued.

Recommended: Savings Account Calculator

18. Some Debit Cards Can Be Used Worldwide

Having a debit card from a well-known issuer like Mastercard or Visa has some benefits. For example, because these two card issuers are so popular, they are accepted as a form of payment in most countries. This can make payments much easier for global travelers. That said, be wary of possible international conversion fees (possibly 1% to 3% of the amount you swipe) plus foreign ATM usage charges.

19. There Were Three Major Players Until 2002

Until 2002, there were three main players in the debit card space. Alongside Mastercard and Visa, Europay was the other big player. In 2002, Europay merged with Mastercard.

20. Debit Cards Are More Popular than Credit Cards

Consumers have the option to use debit cards or credit cards if they don’t want to have cash on them when shopping or if they are shopping online. In one recent study, debit cards were found to be used almost twice as often as credit cards.

21. People Spend Less With Debit Than Credit Cards

While people may use debit cards more often than credit cards, they tend to spend more when using credit cards (almost 30% more), whether purchasing in person or shopping online.

The Takeaway

There’s a whole array of interesting facts about debit cards, from how they were developed to how they are made to how they can be used. What may stand out most among these 21 debit card facts is just how far payment technology has come in recent years and how much more convenient purchasing has become. As a key part of a bank account’s features, debit cards have unlocked new ease when spending.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Are debit cards more popular than credit cards?

Debit cards tend to be more popular than credit cards for in-person purchases, while credit cards are used more often for online spending.

What is the difference between debit and prepaid cards?

The main difference between debit and prepaid cards is where the funds for payment come from. A debit card is linked to a bank account, but a prepaid card is not. Consumers need to load money onto a prepaid card before they can use it. Once they do so, that amount acts as their spending limit.

What debit card is the most popular?

Most banks offer their own debit card, but the majority of these are backed by one of two issuers, Visa or Mastercard. Currently, Visa is the more popular issuer.

What debit card fact is the most useful?

The most useful debit card fact to know could be either that you have a daily spending limit or that you must report a lost or stolen debit card ASAP to avoid being liable for any unauthorized usage. The longer you wait, the more you might owe.

Photo credit: iStock/Daisy-Daisy

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2025 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with Eligible Direct Deposit activity can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below).

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.

As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Eligible Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Eligible Direct Deposit or Qualifying Deposits until SoFi Bank recognizes Eligible Direct Deposit activity or receives $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Eligible Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Eligible Direct Deposit.

Separately, SoFi members who enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days can also earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. For additional details, see the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

Members without either Eligible Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, or who do not enroll in SoFi Plus by paying the SoFi Plus Subscription Fee every 30 days, will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.


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

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

SOBNK-Q125-030