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Mental health professionals often face significant student loan debt, which can be a barrier to entering and thriving in their field. The average student loan debt of mental health counselors is $78,000, and those with an advanced degree in psychology may have more than $200,000 in debt.

The good news is that there are multiple programs that offer student loan forgiveness or relief for mental health professionals, including counselors and therapists. Forgiveness programs for mental health professionals are designed to encourage individuals to enter and stay in the profession.

Read on to learn about programs and strategies that can help you repay any student loans you have taken out (or plan to take out) to become a mental health professional.

Student Loan Debt as a Mental Health Professional

Whether you take out private student loans or federal student loans to pay for your education in the mental health field, you’ll need to consider how you will eventually repay those loans.

It can be helpful to talk to graduates and see how they paid off student loans. One big crossroads can be whether to take a higher paying job in the private sector or work in a nonprofit role that could give you an avenue toward loan forgiveness through a program like the Public Service Loan Forgiveness Program (PSLF).

There may also be programs unique to your career. For example, the Health Resources and Services Administration (HRSA), a government branch, offers loan repayment programs for mental health professionals who meet certain criteria, such as serving in a health professional shortage area. Speaking with your supervisor, your colleagues, and keeping abreast of news within professional organizations can help alert you to unique repayment opportunities.

What Is a Student Loan Forgiveness Program?

A student loan forgiveness program operates the way it sounds: Student loans can be forgiven if certain criteria within the program are met, but each student loan forgiveness program has different criteria. It’s important to completely understand the scope of the forgiveness program.

When student loans are forgiven, usually after a set amount of payments, the balance is forgiven. However, that balance may be taxed, depending on the program.

There may also be loan repayment assistance programs (LRAPs) for your profession or field, as well as state-sponsored loan forgiveness programs.

Recommended: Student Loan Forgiveness Guide

Will Student Loans be Forgiven After 10 Years?

Loans are not automatically forgiven after 10 years, but one potential avenue for mental health student loan forgiveness is the federal Public Service and Loan Forgiveness (PSLF) program. This program requires eligible candidates to work with a qualifying organization and make 120 qualifying monthly payments. It also requires that the loans you hold be federal Direct Loans (or that the federal loans you currently have are consolidated into a Direct Loan).

Qualifying for PSLF can be challenging and requires borrowers to certify their employment to be sure their payments count toward the program. In addition to making 120 payments while working at a qualifying employer, you have to be working for a qualifying employer when you submit the forgiveness application and when the loan is forgiven.

Consult with your loan servicer if you have any questions and be sure to read all of the details about the program.

Typical Requirements for Student Loan Forgiveness

In general, forgiveness programs have criteria. These may include:

•  A history of payments, with no payments skipped

•  Working at a qualifying organization, in a qualifying capacity (ie, full-time instead of part-time)

•  Correctly filling out paperwork for forgiveness

•  Potentially paying taxes on the amount forgiven

Understanding the criteria, reading the fine print, and researching any points of confusion can be helpful in ensuring that your application is processed successfully. The eligibility and forgiveness requirements may vary depending on the forgiveness program, so be sure to fully understand the criteria for the loan forgiveness option you are pursuing.

Difference Between Loan Forgiveness, Loan Cancellation, and Loan Discharge

These three terms are sometimes used interchangeably, and all three terms mean you’re no longer required to pay some or all of your loan. But there are no “easy” ways to get out of paying student loans.

Usually, forgiveness and cancellation mean that, due to either a forgiveness application or your current job, you no longer have to pay loans. Student loan discharge refers to a situation beyond your control, such as total and permanent disability or the closure of your school. In very rare cases, student loans are discharged due to bankruptcy. You will likely have to apply for cancellation, forgiveness, or discharge and will likely need to continue making payments while the application is processed.

Recommended: Bankruptcy and Student Loans, Explained

Student Loan Forgiveness Options For Mental Health Workers

Depending on your place of employment, you may have other options for forgiveness through specific mental health worker programs. There also may be scholarships and grants available in your field of study.

Also something to consider: Some private employers offer student loan repayment as part of their packages. This can be worth asking potential employers as you look for jobs. There are also other federal programs to know about, including:

PPACA and HERA Student Loan Programs for Counselors

As part of the Patient Protection and Affordable Care Act, legislation expanded opportunities for student loan forgiveness for healthcare professionals, including mental health counselors. While many of these forgiveness programs are state-run, this act did ensure that any forgiven funds would not be considered taxable income for people seeking forgiveness through programs supporting health care professionals working in underserved areas.

Under the Higher Education Reconciliation Act (HERA), certain federal loans, including Stafford Loans and Direct Loans, are eligible for a graduated repayment plan. Under this plan, your federal loan repayments start low and gradually increase every two years. This can be an option if you expect your income to increase over the years.

Note that for loans issued after July 1, 2026, only two repayment plans will be available: a standard fixed-term plan (10–25 years, based on balance) or the new Repayment Assistance Plan (income-based). The graduated repayment plan will no longer be an option.

National Health Services Corps Loan Repayment Program

The National Health Services Corps offers loan repayment programs through your state. Each state has different eligibility requirements, including eligible disciplines. These state-run programs also may differ in terms of service commitments but usually, the commitments start at two years for an eligible position. These will generally be at centers funded by the Health Resources and Services Administration.

Mental Health Loan Forgiveness Alternatives

The criteria and requirements for some forgiveness programs can be challenging to fit, but that doesn’t mean there’s no way to pay down your loans. Understanding all your options can help you navigate the best potential avenue for you.

Refinance Your Mental Health Student Loans

Refinancing your student loans could potentially help save you money in the long term, and might give you more flexibility in your budget.

When you refinance, you take all your loans and consolidate them into one loan. For qualifying borrowers, this loan may have a lower interest rate, which could reduce the amount of money you owe in interest over the life of the loan. It also may have a different payment term, so that you are paying the loan off over a longer (or shorter) period of time. Keep in mind that while a longer loan term may result in lower monthly payments, it might also mean paying more in interest over the life of the loan.

You can often check your loan refinance rate without affecting your credit score and choose terms that work for you.

Scholarships and Grants

There may be scholarships and grants either from your institution or your place of work. This can help pay down student loan debt. It’s also worth remembering that some private-sector employers may offer student loan repayment as a perk.
Talking with colleagues, supervisors, and the financial aid office at your school may help you find programs that may be specific to your field or your school.

Pay Off Student Loan Debt

In some cases, it may make sense to prioritize paying down student loan debt. This may include taking on part-time work, decreasing living expenses, and trying to carve out opportunities to pay more than the monthly student loan payment. These strategies can help you pay off your student loans faster and, in turn, could lower the total cost of the loans.

The Takeaway

Working as a mental health professional can be rewarding, but might require you to borrow money to pay for your education. There are numerous options both for taking out and paying back student loans for mental health counselors and therapists.

It can be helpful to talk to colleagues about their student loan pathway, join professional organizations, and keep an ear to the ground regarding grants, scholarships, and employer-sponsored loan repayment programs.

Also keep in mind that you can use a private student loan to help pay for your undergraduate or graduate education in the mental health field (or to refinance loans you already have). While private loans don’t come with government-sponsored protections like PSLF, some private lenders offer hardship and deferment programs of their own.

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 on Mental Health Forgiveness

How do counselors and mental health professionals plan for the future with student loan debt?

Understanding options for paying back loans can be helpful for mental health professionals. Depending on what type of loan you have and what type of mental health work you do, your loan repayment options might include Public Service Loan Forgiveness (PSLF), income-based repayment plans, and refinancing your student loans. You might also consider taking a job in the private sector, which may pay more and allow you to comfortably cover loan payments.

Do healthcare workers qualify for loan forgiveness?

In some cases, healthcare workers qualify for eligible forgiveness programs. This depends on the state the healthcare worker resides, as well as their place of employment.

What are some student loan forgiveness options for mental health workers?

Mental health workers can explore forgiveness options like the Public Service Loan Forgiveness (PSLF) program, state-specific initiatives, and employer-based repayment assistance. PSLF requires 120 qualifying payments while working in a public service job. Some states offer forgiveness for those working in underserved areas.

Photo credit: iStock/Vertigo3d

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

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

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

SOISL-Q325-051

Car payments can take a significant bite out of your monthly budget. According to Experian®, the average monthly car payment in the first quarter of 2025 was $745 for a new vehicle and $521 for a used vehicle.

While knowing the average car payment can be helpful, keep in mind that the actual amount you’ll pay on a car loan will depend on multiple factors, including the loan amount, interest rate, type of car you buy, your credit score, and the length of the loan. Learn more about average car payments and what to do if you’re paying more than you can currently afford.

What Is a Good APR on a Car?

Every auto loan has an annual percentage rate (APR), which is the annual cost you’re charged by the lender for borrowing money. A loan’s APR includes the loan’s base interest rate plus any added fees, so it represents the true cost of the loan.

In the first quarter of 2025, the overall average auto loan APR was 6.73% for new cars and 11.87% for used cars.

The actual APR you receive for an auto loan will be based on several factors, including your income, credit history, and credit score. Typically, your credit score will have the greatest influence over the rate you’ll get, since lenders use it to gauge how likely you are to repay the loan. Generally speaking, the higher your credit score, the lower your car loan APR will be.

For example, the average APR for someone with a credit score between 781 to 850 is 5.18%, whereas the average rate for someone with a credit score between 300 and 500 is 15.81%.

What to Do If Your Car Payments Are Too High?

If you’re paying more than the average car loan payment, or simply more than you can comfortably afford, here are some ways you may be able to lower your payment.

•   Refinancing When you refinance a car loan, you replace your current loan with a new one and hopefully lower your car payment in the process. You may be able to qualify for a lower APR on a new loan and/or extend your loan term, which can lead to a lower monthly payment. Keep in mind, though, that if you extend your loan term, you may end up paying more in total interest over the life of the loan.

•   Selling or trading in your car If your car is beyond your budget, you might consider selling it and then buying a cheaper car. Trading it in at a dealership can be the simplest option, though you might get a better price with a private sale. Just keep in mind that selling a car that has a loan attached to it can be complicated. You‘ll want to check with your lender to make sure you aren’t breaking any terms of your loan contract.

•   Making extra payments whenever you can Consider putting the occasional money windfall (such as a tax refund, bonus at work, or cash gift) toward your loan principal. This will reduce the total amount that you owe, which, in turn, can lower your monthly payments. Before you try this tactic, however, make sure your lender will apply extra payments directly to your loan’s principal and not to interest.

Recommended: Smarter Ways to Get a Car Loan

What If Your Car Payment is Lower Than Average?

If your car payment is lower than the average, that doesn’t necessarily mean you won’t benefit from refinancing. This is especially true. If your credit has been positively impacted or rates have dropped since you originally took out your car loan.

You might also be able to lower your monthly car payments if you initially received your loan from the dealer. APRs offered by car dealers tend to be higher than those offered by banks and credit unions. If you took out your initial loan through dealer-arranged financing, refinancing with a different lender could potentially get you a lower rate, and a lower monthly payment.

If your budget is stretched and you really need to lower your payments, refinancing to a longer repayment term can help lower your payments, even if you don’t get a lower interest rate. Just be aware that you’ll pay more in total interest because you are extending the length of the loan.

Using a Personal Loan to Refinance an Auto Loan

Many people assume that the only way to refinance an auto loan is with another auto loan. But that’s not necessarily the case. In fact, taking out a personal loan can be an option worth considering, particularly if you have excellent credit and can qualify for low APRs.

Personal loans are available through banks, credit unions, and online lenders and can be used for virtually any use, including debt consolidation, home repairs, and other large purchases. This makes it different from an auto loan, which can only be used to pay for a car.

If your auto loan rate is higher than the rate you can receive on a personal loan, using a personal loan to refinance your auto loan may be a way to lower your car payments.

Another reason you might refinance with an unsecured personal loan is that these loans don’t require that you use your car as collateral. That means if you’re unable to make your payments, you won’t lose your vehicle (though your credit score will likely take a significant hit).

Also, if you plan to sell your car, it can be complicated to sell a car with an auto loan attached. If you use a personal loan to pay off your car, you’ll receive the title from your auto lender, which enables you to sell it more easily.

The Takeaway

Currently, the average car payment is $745 for a new car and $521 for a used car. However, that doesn’t mean that’s how much you should pay. Interest rates vary (with your credit score being a factor), and the amount of your loan and term can differ from another person’s. Finding the right payment means fitting into your budget and not causing too much money stress. If a car loan is straining your finances, you might consider paying it off with a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How much of my paycheck should a car payment be?

Many financial experts advise that a car payment be 10% to 15% of your monthly take-home pay. However, each person’s financial situation is unique.

What is too high a car payment?

While each person’s financial situation is different, some experts would say that allocating more than 10% to 15% of your take-home pay for a car payment is too much. Others might say if you are accruing credit card debt or have had to reduce your ability to save, you are paying too much.

Is it smart to do a 72-month car loan?

A 72-month car loan is considered a relatively long car loan. This means your monthly payments will be lower than if you had a shorter term, and you may therefore be able to get a pricier car. However, keep in mind that you will pay more interest over the life of the loan vs. taking a shorter-term loan. Think carefully about whether this is the right move for your financial situation.

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SOPL-Q325-045

A physician assistant (PA) is a medical professional who handles a variety of key responsibilities, including diagnosing illnesses, developing treatment plans, prescribing medications, and serving as the principal healthcare provider for many patients.

Gaining the skills necessary to take on these medical responsibilities involves a master’s degree level of education, as well as a bachelor’s degree, an average of 3,000+ hours of direct patient contact, and more than 2,000 hours of clinical rotations (beyond classroom instruction).

The cost of a physician assistant program can range from $20,000 to over $100,000 per year, with the average cost of the entire program sitting at just over $98,000. Keep reading to learn more on the cost of PA school and how to pay for it.

PA Program Cost

The Physician Assistant Life collated information from three key resources to arrive at average costs for the 2025-2026 application cycle: The American Academy of Physician Assistants (AAPA), The Physician Assistant Education Association (PAEA), and a recent NCCPA Statistical Report. Here’s what they found:

•   The average cost of a 27-month resident PA program (including public and private) is $98,075.

•   The average cost of a 27-month PA program (including public and private) for nonresident students is $107,288.

•   The average total resident tuition and nonresident tuition were higher for PA programs from private institutions than for those from public institutions.

•   There was a 5.33% increase in the average total resident tuition for public and private institutions, and a 3.5% increase in nonresident tuition over the last five years.

Paying Physician Assistant Program Costs

After making the decision to become a physician assistant, it then becomes time to figure out how to pay for the PA program.

The first step is filling out the Free Application for Federal Student Aid (FAFSA®) to be considered for federal student aid. Often (but not always), by the time that someone is ready to fill out the FAFSA for PA school, they will be considered an independent student, someone who no longer needs to include parental financial information in the application.

Federal Student Aid

The results of the FAFSA application will determine eligibility for federal aid, including:

•  Federal student loans

•  Federal grants

•  Federal work-study options

Federal loans can be a popular way to pay physician assistant program costs for several reasons, including the fact that payments:

•  Can be deferred until after graduation

•  Can sometimes qualify a student for tax deductions

•  May come with the potential for loan forgiveness

The types of federal loans available for graduate students are slightly different from those available to undergraduate students. The borrowing ceiling is higher, but interest rates typically are, as well. PA students may qualify for a Grad PLUS Loan if enrolled at least half time without any adverse credit history.

Note that Grad PLUS Loans will no longer be available as of July 1, 2026. Borrowers who already received a Grad PLUS loan before June 30, 2026, can continue borrowing under current terms through the 2028-29 academic year.

Federal Grants and Work Study Programs

Federal grants can provide significant financial relief for PA students. Programs like the Federal Pell Grant and the TEACH Grant are designed to help students with financial need, offering funds that do not need to be repaid. Check StudentAid.gov for more information on federal grants.

PA students may also be eligible for work-study based on the FAFSA. Typically, students need to apply for these jobs, often ones at the university. Besides helping PA students to earn money, these jobs could be in the medical field, which can help students gain valuable experience.

University Help

Students can check to see what grants, scholarships, and/or fellowships their university offers by contacting the financial aid office. Some institutions use the FAFSA information to determine eligibility, while others have their own applications. Awards can range from a small grant to the amount of the full tuition. Check deadlines for school-specific financial aid to meet them successfully.

More About Grants and Scholarships

Scholarships are available through the federal government, as well as through states, non-profit agencies, organizations, companies, and more. In general, these are merit-based and don’t require repayment. (By contrast, grants are typically need-based.)

There are numerous grants and scholarships that are specifically designed to help with PA program costs. As just one example, the Physician Assistant Foundation has provided more than $2.7 million in scholarships to more than 1,600 future PAs. Requirements include:

•  Being a student member of the American Academy of Physician Assistants (AAPA)

•  Attending a PA program that is ARC-PA-accredited

•  Completing at least one quarter or semester in PA studies

•  Being in good standing, academically

•  Being enrolled in a PA program during the application cycle

Grants to cover PA program costs can get more niche, such as Association of Physician Assistants in Oncology’s APAO Student Scholarship. Requirements include:

•  Being an APAO member or applicant who is in the last year of an ARC-PA-accredited program

•  Being in the clinical phase, having already completed or nearly completed basic science courses

•  Not receiving a PA foundation or other specialty organization scholarship

•  Having a strong interest in the oncology field; clinical rotation in an oncology speciality is strongly encouraged

•  Having a minimum GPA of 3.0

As another example, Physician Assistants Orthopaedic Surgery, Inc. offers the annual Susan Lindahl Memorial Scholarship, providing four $5,000 scholarships each year.

Members of the National Guard may qualify for the Medical Professional Officer Accession Bonus (OAB). To find state scholarships and grants, contact the appropriate state’s Department of Education.

There are also state-specific PA scholarships, such as those offered by the California Academy of Physician Assistants (CAPA). Student members of CAPA can be eligible for one of five different $2,000 scholarships.

It may help to look for opportunities from where the student’s bachelor’s degree was obtained. For example, if you are a member of a fraternity or sorority, there may be scholarships available to cover PA program costs.

Fellowships

Graduate fellowships usually require that a student study, work, or research in the PA field, which means that they can gain useful experience while also earning money for the physician assistant program costs.

To find opportunities, talk to your university’s financial aid department or reach out to non-profit agencies connected to the PA field. The application process can be rigorous but can also be quite worthwhile.

Additional Funding Ideas to Consider

When determining what PA school will cost, you’ll want to factor in any federal funding options (loans, grants, and scholarships), university help, and other grants, scholarships, and fellowships you may be eligible for. You’ll next need to consider what, if any, gaps in funding are left.

Ways to cover that gap can include employer tuition reimbursement, becoming an in-state resident, becoming a resident advisor (RA), working as a teaching assistant (TA), and private student loans. Here’s a closer look at each.

Employer Tuition Reimbursement

Some employers reimburse employees for a certain part of their education costs. It can be worth checking what is available, how to apply, and what constraints might exist. A company might, for example, only reimburse funds for certain degrees or they may require that a student receiving reimbursement stay at the company for a predetermined amount of time.

Some employers may provide employees with professional development funding. If so, you may want to find out whether this can be used towards PA program costs.

In-State Resident

You can often save a significant sum of money by attending a public university in the state where you live. Each state determines residency in different ways, so if you’re thinking about relocating to take advantage of in-state residency savings, check to see what residency requirements are. Some states mandate one year of full-time residency, while others may require three.

Resident Advisor

RAs help new students get settled into dorm life and are compensated for their work. This usually includes part, if not all, of their room and board; perhaps a meal plan; and sometimes a reduction in tuition. Plus, RAs typically can get their own room, which can make studying easier (although this job does come with plenty of responsibilities and interruptions). How much an RA is compensated varies by university.

Teacher Assistant

This can involve prep work for teaching, organizing lab work, conducting research, grading papers, and more. Payment can come in the form of reduced tuition or a stipend. Besides helping with PA program costs, being a teaching assistant can provide experience in the field and allow students to network with industry experts.

Private Student Loans

If additional funds are needed, private graduate student loans can help. Private student loans are available through private lenders, including banks, credit unions, and online lenders. Rates and terms vary, depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, though, that private loans may not offer the borrower protections that automatically come with federal student loans. But if you are looking for supplemental funding for your PA program, private student loans may be worth looking into.

Recommended: A Complete Guide to Private Student Loans

The Takeaway

PA school costs can vary widely, ranging from $20,000 to over $100,000, depending on the program and institution. Public schools and scholarships can reduce expenses, but students should also consider living costs, books, and supplies.
Financing options like federal loans and private loans with low interest rates are available to help manage the financial burden.

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 PA school cheaper than medical school?

PA school is generally cheaper than medical school. Tuition for PA programs typically ranges from $20,000 to $100,000, while medical school can cost upwards of $200,000. PA programs are also shorter, usually 2-3 years, compared to four years for medical school.

How expensive is it to become a PA?

Becoming a PA can be costly, with tuition ranging from $30,000 to over $100,000, depending on the program. Additional expenses include books, supplies, and living costs. Financial aid, scholarships, and part-time work can help manage these expenses.

How can you save money on PA school?

To save money on PA school, consider attending a public institution, applying for scholarships and grants, working part-time, and choosing a program with a lower cost of living. Additionally, explore federal and private loans with lower interest rates and flexible repayment options.

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

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

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

College is expensive and costs continue to rise. In 1989, the average cost of a four-year degree school term was $1,730. As of 2025, the average annual cost increased to an average of $9,750 for in-state students at a public four-year college.

With college costs continuing to skyrocket, many parents apply for federal Parent PLUS Loans. Since these loans are issued in the parent’s name, it is important that parents understand the details of what these loans entail and how often you have to apply to ensure students receive proper funding.

To avoid missing an application deadline, here’s some helpful information about Parent PLUS Loans and their application process.

Parent PLUS Loan Recap

A Parent PLUS Loan is a type of Direct PLUS Loan, which is offered to parents who have a student enrolled at least part-time in an eligible education program.

Borrowers may be able to borrow an amount that equals but does not exceed the full cost of attendance, minus any other financial aid, such as scholarships and grants, that your child has received.

These loans are federally-funded and not subsidized. This means that the loan will accrue interest while the student is in school. Parent PLUS Loans offer fixed interest rates and won’t change throughout the life of the loan.

The interest rate for Parent PLUS Loans disbursed for the 2025-26 academic year is 8.94%. It’s also important to note that as of October 1, 2020, Direct PLUS Loans have a fee of 4.228% of the loan amount (which is deducted from each loan disbursement proportionately).

Note that for any loans disbursed on or after July 1, 2026, new federal limits will apply. Rather than borrowing up to the cost of attendance (minus any other aid), parents can borrow $20K per year, or $65K total per student.

Qualifying for a Parent Plus Loan

To qualify for a Parent PLUS Loan, borrowers must:

•   Be the biological or adoptive parent, or in some cases, the stepparent, of an undergraduate student enrolled part-time at an eligible school

•   Not have an adverse credit history

•   Meet general eligibility requirements for federally-funded student aid

Keep in mind that even if a grandparent is primarily responsible for a student, they are not eligible for a Parent PLUS Loan, unless they have legally adopted their grandchildren and are legal guardians.

Applying for a Parent PLUS Loan

The first step to apply for a Parent PLUS Loan is to complete the Free Application for Federal Student Aid (FAFSA®) form with the student.

Most schools require you to apply for Direct PLUS Loans online, however, some may have different application processes that you must follow. StudentAid.gov provides a list of schools that allow you to apply online. If your school is not on this list, check with the school’s financial aid office to verify the application process you must follow.

Those who qualify for a Parent PLUS Loan will have to sign a Direct PLUS Loan Master Promissory Note (MPN). This document verifies that the borrower agrees to the terms of the loan. Each school may have a different process, so double check with the financial aid office to ensure you understand the specific process for your student’s school of choice.

Apply for a Parent Plus Loan Every Year

When you complete the FAFSA form, you are applying for financial aid for one school year. Therefore, to receive financial aid for the next year, you will have to submit a new FAFSA form to get new aid.

However, the website allows you to select a Renewal FAFSA form that remembers your information from the previous years, making it easier to submit a new financial aid application.

Additionally, it’s important to pay attention to the FAFSA deadlines to avoid missing out on any financial aid opportunities. General recommendations suggest submitting the FAFSA form by the earliest financial aid deadline of the schools to which you are applying.

Each state may have their own deadlines, so it can help to verify your state’s specific date.

Pros of Parent PLUS Loans

Large Loan Limits

First, eligible borrowers can take out a generous Parent PLUS Loan, as long as it doesn’t exceed the total cost of attendance at the student’s school of choosing (minus other financial aid they qualify for). However, as stated above, new federal limits will apply as of July 1, 2026. Parents will be able to borrow a maximum of $20,000 per year, or $65,000 total per student.

Fixed Interest Rates

Another advantage of the Parent PLUS Loan is that the interest rates are fixed. This means that even if rates increase nationally, the interest rate on the loan is locked in at the rate determined at the time the loan was disbursed.

Having a fixed interest rate can make it easier to budget for the monthly payments when they become due since borrowers know exactly what to expect.

Flexible Repayment Options

Additionally, when it comes to loan repayment, there are several flexible repayment options. For example, you could select a standard repayment plan with fixed monthly payments for 10 years or an extended repayment plan with either a fixed or graduated payment schedule over a 25-year term.

Parent PLUS Loans are not eligible for income-driven repayment plans unless they have been consolidated with a Direct Consolidation Loan. This is when multiple federal loans are consolidated into one single Direct Consolidation Loan. These loans are still federal loans and the new interest rate is the weighted average of the existing loans.

Note that per the One Big Beautiful Bill Act, current Parent PLUS borrowers have one year from the bill’s enactment to consolidate their loans. Missing that deadline permanently cuts off access to income-driven repayment and loan forgiveness. For new Parent PLUS Loans issued on or after July 1, 2026, borrowers must use the standard fixed repayment plan (10–25 years, depending on loan balance). Income-driven repayment options and graduated repayment plans will be eliminated for these loans.

Cons of Parent PLUS Loans

Higher Interest Rates

Parent PLUS Loans often come with higher interest rates compared to other federal student loans, such as Direct Subsidized or Unsubsidized Loans. This can make the loans more expensive over time, increasing the total amount of money that needs to be repaid.

Must Meet Eligibility Requirements

Not everyone qualifies for a Parent PLUS Loan. Although this isn’t necessarily a disadvantage, it’s important to understand that you will have to meet all eligibility requirements to qualify. This includes passing a credit check.

Adverse credit indicators include defaults of debt, foreclosures, repossessions, debts discharged through bankruptcy, tax liens, wage garnishments, or previous write-offs of federal student debt. However, you might be able to qualify if you apply with an endorser or a cosigner.

Alternative Financing Options

If your application is denied due to adverse credit history, there are still other financing options. Here are a few to consider:

Enlisting an Endorser

If a parent doesn’t qualify based on their own credit history, they can try to enlist a cosigner, called an endorser, on the Parent PLUS Loan. The endorser agrees to take responsibility for the loan if the borrower fails to repay, and the loan will show up on the endorser’s credit report as his or her own debt. If you apply with an endorser, you will be required to complete PLUS credit counseling.

Looking for Free Money

It can be wise to continue to apply and look for scholarships, work-study, or grant rewards. There are many ways to find reward opportunities, including reaching out to the school’s financial aid office, contacting federal or state grant agencies, and searching for opportunities online.

New opportunities may become available every year, so it can be wise to continue to stay out on the look for funding opportunities.

Applying for Unsubsidized Federal Loans

If a parent is ineligible for a Parent PLUS Loan, the student may be eligible to receive additional Direct Unsubsidized Loan funds up to the loan limits for independent students.

Federal student loans can be reliable borrowing options because they often have lower interest rates and could have better repayment terms than other loans available to students. However, it’s worth making sure that a student isn’t taking out more debt than they can handle after graduation.

Considering Private Loans

Lastly, if all other options fail, some families may want to consider private student loans. These loans are offered through financial institutions such as banks, credit unions, and online lenders.

Keep in mind, private student loans tend to have less flexible repayment terms and higher interest rates than federal student loans.

For example, private lenders may require you to begin making payments before your child graduates. Conversely, with a Parent PLUS Loan, parents can wait to make repayments until after their child has graduated.

Additionally, when applying for a private loan, the interest rate is generally based on factors like the borrower’s income and credit score.

If you think you may need to use private loans, don’t be discouraged, and instead, be informed about your options. First, it’s worth shopping around and comparing lenders for private loans.

Lenders’ terms will vary, so it can be helpful to get several quotes and ask about the interest rate (and whether it’s fixed or variable), the loan’s repayment terms, and what happens in the event there are financial difficulties that make it difficult to stick to the repayment plan.

The Takeaway

Parent PLUS Loans provide a valuable financial resource for parents to help cover their child’s education costs and they do require a new application each academic year. This annual process, including a credit check and involvement from the school’s financial aid office, ensures that the loan remains a responsible and manageable option.

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

Do you have to reapply for a Parent PLUS Loan?

Yes, you need to reapply for a Parent PLUS Loan each academic year. The application process includes completing the FAFSA, requesting the loan through the school’s financial aid office, and passing a credit check. Renewal applications simplify the process but are still required annually.

Do both parents need to apply for a Parent PLUS Loan?

No, both parents do not need to apply for a Parent PLUS Loan. Only one parent can apply, and if they are denied, the other parent can apply separately. However, both parents cannot be listed as co-borrowers on the same loan.

What credit score is needed for a Parent PLUS Loan?

There is no specific credit score requirement for a Parent PLUS Loan, but applicants must not have an adverse credit history. Generally, this means no defaults, foreclosures, or late payments within the last five years. A score of at least 640 is often recommended for better approval chances.

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

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

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

Commercial pilots can have exciting and lucrative careers. However, the tuition for flight school is quite a financial investment, costing upwards of $100,000 for some programs. Altogether, it takes about two years for someone with no experience to become a commercial pilot.

If you’re considering flight school but can’t pull together that kind of cash, you’ve got options, from scholarships and grants to military — and airline-sponsored training.

Typical Cost of Flight School

In the U.S., to become a commercial airline pilot can cost over $100,000. Associated costs can also add up: There’s an initial medical exam ($75-$200), test fees ($500-$700), and supplies like headsets and books ($500-$1000). Depending on the flight school, you might also be on the hook for instructor fees, fuel surcharges, landing fees, and more.

If you just want to fly but don’t have your heart set on being a commercial airline pilot, you’ll pay less for training and certification. You can become a private pilot for $6,000 to $20,000 or more.

10 Tips for Paying for Flight School

Even if you have money set aside for flight school, financial help may come in handy. Below are the top ways that aspiring pilots help cover their costs.

•   Federal loans and grants

•   Scholarships

•   Military tuition assistance

•   Sallie Mae flight training loans

•   Private loans

•   Working at a flight school

•   Personal loan

•   HELOC

•   Airline-sponsored training

1. Savings

This may be the least complicated method of funding your education, but as noted above, just because you have savings doesn’t mean you shouldn’t consider other ways to fund your dream. Also, you may need that savings to support yourself over the two years it takes for someone with no experience to earn their commercial pilot’s license.

2. Federal Loans and Grants

You may be eligible for federal student loans if you attend an aviation program at an accredited university or college. Independent flight schools usually don’t qualify for federal aid, but it’s worth checking with your program just in case.

If your school does qualify for federal aid, simply fill out the Free Application for Federal Student Aid (FAFSA®) to apply.

The same application will submit your information to the federal Pell Grant program. These grants assist students with exceptional financial need and generally don’t have to be repaid (unlike student loans). The maximum amount available for the 2025-26 academic year is $7,395.

3. Scholarships

As with academic programs, scholarships are available for flight school. Check with your flight school of choice for guidance. The Federal Aviation Administration also shares information about grants and scholarships.

SoFi’s Scholarship Search tool can help you find flight school funding. For the school type filter, choose trade or tech, and select aviation for your field of study.

4. Military Tuition Assistance

The Post 9/11 G.I. Bill may pay a portion of your flight school costs depending on the program you select, whether you’ve received benefits in the past, and other factors. Veterans who qualify can receive funding to help with tuition, housing, and books and supplies. Go to VA.gov for details. (And keep an eye on current legislation for possible changes to the G.I. program.)

5. Sallie Mae Flight Training Loan

Sallie Mae offers two types of student loans tailored for pilot training and aviation degrees, covering up to 100% of the cost — including flight hours, ground instruction, certification fees, and sometimes living expenses. Sallie Mae also provides resources to help students manage their loans and plan for their financial future, making it a viable option for those pursuing a career in aviation.

6. Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. Interest rates and repayment terms vary by lender and the type of program you’re enrolled in. Shop around to find the best terms you can qualify for. Keep in mind, though, that some lenders do not offer private student loans for flight school, including SoFi.

Recommended: A Complete Guide to Private Student Loans

7. Work at a Flight School

Working at a flight school in a non-pilot capacity may earn you a discount. Flight schools are known to offer generous employee discounts on aircraft rental, and for accepting some work hours as flight hours. If you have your eye on a particular school, ask about career opportunities and employee discounts.

8. Personal Loans

Personal loans provide borrowers with a lump sum — typically from $5,000 to $100,000 — that are paid back in equal installments plus interest. Because personal loan funds can be used for almost any personal expenses, they can be a good option for older students with excellent credit histories.

It’s important to note that some lenders (including SoFi) don’t allow personal loan funds to be used for post-secondary education, so be sure to check with your lender.

9. Home Equity Lines of Credit

Home equity lines of credit (HELOCs) allow you to borrow against equity in your home, on an as-needed basis. Throughout the draw period, you can take out money up to your pre-approved limit. HELOCs are often used for big expenses; flight school can qualify.

10. Airline-Sponsored Training

Airlines are currently experiencing a dire shortage of pilots. As a result, U.S. companies are beginning to follow in the slipstream of European airlines by offering pilot training programs.

Frontier Airlines, for example, has a two-year training program in partnership with ATP Flight School. Candidates must be 19 years or older, have a high school diploma, and pass a background check. After their training is complete, grads will have a guaranteed job waiting for them with Frontier.

Alaska, Delta, United, and JetBlue have created similar pilot development programs.

Why Go to Flight School?

What sort of personality do you need to become a commercial airline pilot? According to one NASA study, pilots should be low in anxiety, depression, hostility, and impulsiveness. The ideal pilot is high in conscientiousness, deliberation, striving, dutifulness, and assertiveness. If this sounds like you, you’ll probably fit right in at flight school.

Once your training is complete, your job outlook is golden. Due to current pilot shortages and better-than-average job growth, airlines no longer require pilots to have a four-year degree or an educational background in aviation and aeronautics.

If that doesn’t convince you, how about this: Pilots earn on average $135,000 a year (and free travel!).

The Takeaway

Flight school is pricey: upwards of $100,000 (or more) for two years of education and training. However, financial aid is available — from scholarships and need-based grants to programs subsidized by the G.I. Bill and airline companies. Take care when selecting your flight school, because only certain accredited programs offer opportunities for federal aid.

While some private lenders offer loans for flight school, SoFi does not. SoFi does, however, offer private student loans for eligible graduate certificate programs. If you’re a college student interested in pursuing a certificate program, a SoFi private loan could be a tool to help you finance the program.

SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees.

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

FAQ

Can you go to flight school with no money saved up?

Financial aid is available for qualifying candidates. If you enter an undergraduate aviation program at an accredited college or university, you can fill out the FAFSA to see if you qualify for federal aid. Also, due to the current shortage of commercial pilots, several airlines have developed pilot training programs that place graduates in airline jobs.

Do airlines pay for flight school and training?

Some airlines do have pilot development programs that require no prior experience or educational background. However, funding varies by company — some may offer financing (basically, a loan) rather than subsidizing tuition. Check with Frontier, Delta, United, JetBlue, and Alaska Airlines to see how their programs are structured.

What makes the cost of flight training so high?

It’s expensive to rent aircraft for training purposes. Additional costs may include surcharges for fuel, insurance, instructor fees, and so forth. A school must cover its costs, and one way to do so is through student fees.

Photo credit: iStock/mladn61

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

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

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

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