Financial Topics Archives | Page 20 of 824

Apr

2025

Personal Loan for Closing Costs

By Melissa Brock | Credit, Home Ownership, personal_loan | Comments Off

When you purchase a home, you must pay closing costs, which are the fees the lender charges to recoup loan processing costs. These can add up to a hefty sum, typically 3% to 6% of your mortgage amount.

Typically, you can take out a personal loan to cover those closing costs and help you across the finish line of a property purchase. You can often tap other funding sources as well. Take a closer look at the pros and cons of using a personal loan for closing costs, plus the alternatives, so you can decide what’s best for your needs.

Key Points

• Closing costs for purchasing a home typically range from 3% to 6% of the total mortgage amount, covering fees such as loan origination, appraisal, title search, and insurance costs.

• A personal loan can be used to cover closing costs, offering quick access to funds and flexible repayment options, but it cannot be used for the down payment on the property.

• The advantages of using a personal loan for closing costs include not needing collateral, fast approval, and flexible repayment terms without prepayment penalties.

• Potential downsides include an increased debt-to-income (DTI) ratio, which could affect mortgage approval or lead to higher mortgage interest rates, and the challenge of managing an additional loan payment alongside mortgage payments.

• Alternatives to a personal loan for closing costs include rolling the costs into your mortgage, requesting a fee waiver, negotiating with the seller to cover costs, exploring state and local assistance programs, or using gift money from family.

What Are Closing Costs?

Closing costs are processing fees that you pay to your lender, either as the buyer or seller in a real estate transaction:

• Buyers: Buyers typically pay between 3% and 6% of the total loan amount in closing costs. Buyers must pay this amount out of pocket, so it’s important for them to have a plan for how they’ll access the money before they get to the closing table.

• Sellers: If sellers contribute to closing costs (say, to negotiate a home sale), those fees usually get taken out from the sale proceeds.

Here’s an example: If you plan to buy a home with a $300,000 loan, as the buyer, you’ll need to bring between $9,000 and $18,000 to the closing table. If you were the seller, you’d see that amount taken out of the costs you’d pocket from the sale.

Fees Associated with Closing Costs

Closing cost fees may include:

• Application fee: Lenders sometimes charge a one-time fee for borrowers to submit a loan application.

• Credit report fee: A credit report or credit check fee covers the cost to dig into your credit report, which shows your credit history. Your lender uses the information it uncovers to decide whether to approve your loan and how much they’ll lend you.

• Origination fee: You pay this fee to the lender to process the loan application.

• Appraisal fee: A fee paid to a professional to appraise the home based on an evaluation to determine its fair market value.

• Title search: A title search looks into public records to determine who actually owns the property and who has liens on the property (for example, an unpaid contractor’s lien for work done on the home).

• Title insurance: Title insurance protects you from financial loss and legal expenses in case the home has a bad title.

• Underwriting fee: Underwriting is the process of reviewing your finances to determine the risk of offering you a mortgage, and the fees cover this process.

• Property survey fee: Property survey fees cover the cost of checking the boundaries and easements of a property. This process shows exactly where the property’s perimeter is and what the property includes.

• Attorney fee: You will probably need to hire a lawyer to review the terms in your purchase contract and handle your closing.

• Discount points: Discount points are a way to balance your upfront costs and your monthly payment. If you use points to pay more upfront, you’ll likely have a lower interest rate, meaning that you could pay less monthly and over your loan term.

• Homeowners insurance premiums: Homeowners insurance provides financial protection if your home undergoes a disaster or accident. You must typically show your lender that you have paid homeowners insurance.

• Mortgage insurance: If you have a down payment of less than 20%, you will often have to pay mortgage insurance, a fee per month that protects your lender if you were to default. You’ll also have to pay a version of mortgage insurance on Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) loans. You may have to pay these insurance fees with your closing costs in addition to your monthly payments, particularly for the FHA and USDA loans.

• Property tax: Homeowners pay property tax to state, county, and local authorities for schools, roads, and other municipal services. You may have to pay a portion of your property tax at closing.

• Homeowners association (HOA) fees: If you plan to move to a neighborhood that has an HOA, or an organization that makes and enforces rules for a neighborhood, you may owe HOA fees at closing. The seller may pay these on a prorated basis.

• Per-diem interest: Per-diem interest refers to the interest a lender charges for the days between a closing date and the first day of your billing period.

• Transfer tax: State or local governments often charge real estate transfer taxes, meaning that they charge when properties transfer ownership.

• Recording fee: State and local governments charge recording fees to legally record your deed, mortgage, and other home loan documents.

Note that this isn’t an exhaustive list of closing costs — you may be on the hook for other fees as well.

Can You Use a Personal Loan for Closing Costs?

First, it’s important to understand how a personal loan works. It is usually funded by a bank, credit union, or online lender. You can typically use the money however you want — there aren’t as many restrictions on personal loans compared to, say, student loans. After you receive a personal loan, you pay it back with regular, fixed payments (with interest) over a specified term.

As mentioned above, you can use the cash as you see fit. So, yes, you can use a personal loan for closing costs. However, you can’t use it for a down payment, and you must tell your lender that you’ll go this route and borrow to pay the closing costs. The lender will include it in your debt-to-income (DTI) ratio, which is the amount of debt you have relative to your income.

Applying for a personal loan can involve prequalifying with several lenders and comparing them, gathering required documents (ID, proof of address and income, Social Security number, and education history), filling out the loan application, and receiving your funds after approval. You may be able to get a personal loan in one to three days.

As you shop around for funds, you’ll likely want to consider what credit score you need for a personal loan at a given interest rate. Also consider the length of the loan term; this can typically range from one to seven years.

Recommended: Guide to Personal Loans

Pros of Taking Out a Personal Loan for Closing Costs

Here are some of the key benefits of taking out a personal loan for closing costs.

• Collateral not required: Personal loans are often unsecured loans, meaning that you don’t have to put an asset up in order to receive the loan. Therefore, if you fail to repay the loan, your lender will not claim the asset to repay your debts.

• Quick approval: It usually doesn’t take long to get a personal loan once you’ve been approved. After you submit your application and materials, it might take just a day to get the personal loan, though it could take longer.

• Flexible repayment options: You can tap into flexible repayment plans, including no prepayment penalty, meaning that the lender won’t penalize you for paying off the loan early.

Cons of Taking Out a Personal Loan for Closing Costs

Next, consider the downsides of using a personal loan to cover closing costs.

• DTI increase: Lenders will look at your overall debt under a microscope, so taking on a personal loan may factor into your overall debt. It may signal to the lender that you aren’t in a good financial position since an additional loan could raise your DTI ratio. It might keep you from being approved for a mortgage or could result in a higher mortgage interest rate.

• Additional loan payment: You might find it tricky to repay a personal loan in addition to a mortgage payment. Consider whether you can comfortably make both payments every month.

• High interest rates: There is the potential for high interest rates if you have poor credit. This can make it more challenging to afford a personal loan.

Recommended: Personal Loan Requirements

Alternatives to a Personal Loan for Closing Costs

You may have options vs. getting a personal loan for closing costs. Consider how else you might handle those fees.

• Roll them into your mortgage: You may be able to add your closing costs to your mortgage, but this means you’ll increase the principal balance of your loan. This will increase both the principal and the interest you’ll pay over your loan term and also translates to higher monthly payments.

• Ask for a waiver: Your lender may be willing to waive certain fees. For example, they may reduce certain processing fees. There’s no guarantee, but it can be worth asking. That might help you out with your final closing cost amount.

• Ask the seller to pay: As mentioned previously, sellers may pay for some of the closing costs if they’re eager to ensure that the property sale doesn’t fall through.

• Tap into assistance programs: Many state and local governments offer down payment and closing cost assistance programs for moderate- to low-income home buyers. Look into your state’s housing finance agency, your city or county website, the U.S. Department of Housing and Urban Development (HUD), or check with your lender to learn more about your options.

• Use gift money: Do you have a generous grandparent or parent who wants to help you cover your closing costs? Your state may have rules and regulations attached with gift money (especially ensuring that it’s an actual gift). Check with your lender to learn more.

The Takeaway

You can typically use a personal loan to pay for closing costs, the fees that can cost 3% to 6% of your home loan amount when you purchase a property. While this can be a convenient source of funding that is typically unsecured (meaning no collateral is required), it can raise your DTI and add to your monthly financial burden. It’s wise to carefully consider all the pros and cons, as well as alternative funding sources, when deciding whether to use a personal loan for closing costs.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Is it smart to finance closing costs?

Whether it’s smart to finance closing costs depends on your personal situation. For example, for some people who can handle the additional monthly payment, it may be a convenient move. On the other hand, getting a personal loan may increase your DTI, so your mortgage lender might charge you a higher interest rate or deny you the loan altogether.

Can I put closing costs on a credit card?

While you’ll usually use a cashier’s check, certified check, or wire transfer to pay for closing costs, you can put some closing costs on a credit card, such as attorney, appraisal, and survey fees. Check with your lender to learn more about which fees you can put on a credit card. (Also note that using your credit card in this way can raise your credit utilization rate and potentially lower your credit score.)

What is not an acceptable source of funds for closing?

Closing costs are typically paid by a cashier’s or certified check or by wire transfer. Funds for these could be acquired by such sources as a government program or a personal loan. Less frequently, credit cards, debit cards, and personal checks may be accepted for some closing costs.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/jacoblund

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.

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

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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.

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Apr

2025

Understanding Perkins Student Loan Forgiveness

By Melissa Brock | Student Loans, student_loan | Comments Off

If you have a Perkins Student Loan you may be eligible for Perkins loan forgiveness. That means you could have your Perkins loan debt partially or fully canceled so that you no longer need to pay it.

Read on to find out how Perkins loan forgiveness works and whether you might qualify.

Key Points

• Perkins loans, which are low-interest federal loans for students once given to students with exceptional financial need, are eligible for forgiveness under certain conditions.

• Full-time public service workers in education, military, law enforcement, and other fields may receive up to 100% loan cancellation over five years if they meet certain criteria.

• Teachers in low-income schools or certain subject areas, and some nonprofit workers, may qualify for loan cancellation, with specific requirements for each occupation.

• The Perkins loan forgiveness process requires application through the school that issued the Perkins loan or the loan servicer, with proof of qualifying employment.

• Perkins loans forgiven between 2021 and 2025 are not federally taxable, but this status may change.

What Are Perkins Loans?

Student loan borrowers may have federal or private student loans, or a combination of both types. Perkins loans are low-interest subsidized federal loans for students with exceptional financial need.

The federal student loan interest rate on Perkins loans was a fixed 5%. The government covered the interest that accrued on these loans while students were in school.

Perkins Loans are no longer offered — the program ended in 2017. However, borrowers who have Perkins loans are still required to repay them. In certain situations, these borrowers might qualify for certain federal benefits like Perkins loan forgiveness or Perkins loan cancellation to help get out of student loan debt.

Perkins Loan Forgiveness Options

Borrowers may be eligible for Perkins student loan forgiveness if they work full-time in public service jobs such as education, military service, and law enforcement. Here are details about the different federal Perkins loan forgiveness options.

Teaching Service Cancellation

If you teach in a public or nonprofit school, you may be able to get Perkins loan cancellation. Perkins loan cancellation for teachers forgives up to 100% of your Perkins loans if you are a special education teacher, work in a low-income school district, or teach certain subjects, such as math, science, or a foreign language.

If you’re eligible, a percentage of your Perkins loan balance and the interest it accrues will be canceled annually over five years in the following increments: 15% for your first and second years of teaching, 20% for your third and fourth years of service, and 30% for your fifth year of teaching.

You may also qualify for Perkins loan cancellation if you’re a speech pathologist, a librarian, or work in an educational role in a Head Start program and you started working on or after August 14, 2008.

Public Service Cancellation

You may qualify for forgiveness of your Perkins loans if you work in certain nonprofit public service jobs and fields, such as:

• Child or family services agency: Those employed in an educational job in a child or a family services agency may be eligible for complete loan cancellation after five years of service. Qualifying jobs include working at a prekindergarten or child-care program for students in low-income communities.

• AmeriCorps VISTA or Peace Corps volunteer: Individuals who serve as VISTA or Peace Corps volunteers for four years may qualify for up to 70% Perkins loan cancellation.

Military Service Cancellation

Members of the military can potentially qualify for Perkins loan forgiveness. Military service members may be eligible for up to 50% loan cancellation for four years of service if their active service ended before August 14, 2008. Those whose active duty began on that date or later might qualify for up to 100% loan cancellation for five years of service.

Law Enforcement and Corrections Officer Cancellation

If you’re a law enforcement officer, correctional officer, or firefighter, you might qualify for up to 100% loan cancellation if you serve five years full-time at an eligible law enforcement agency or federal, state, or local firefighting agency. Firefighters must have started work on or after August 14, 2008.

Recommended: Student Debt by Major

Eligibility Requirements for Forgiveness

The requirements to qualify for Perkins loan forgiveness can be fairly stringent. Generally, you must be employed full-time to be eligible for Perkins loan forgiveness. You’ll also need to meet the following requirements:

• Elementary or secondary teacher: Teachers (including supervisors, administrators, researchers, and curriculum specialists) may qualify as long as they work full-time for a full academic year or two half-years at different schools within 12 consecutive months. They can also teach part-time at two or more schools. To be eligible, educators must work in a low-income district or service agency in a teacher shortage area.

• Special education teacher: To qualify, these teachers need to work at a public or nonprofit elementary or secondary school in speech and language pathology or audiology, physical therapy, occupational therapy, psychological and counseling services, or recreational therapy.

• Preschool or prekindergarten teacher: Eligible educators must work full-time in a prekindergarten or child-care program and they must have started on or after August 14, 2008.

• Law enforcement, correctional officer, or first responder: These individuals must work five years in their respective fields. Firefighters need to have started on or after August 14, 2008.

• Attorney: Lawyers who work full-time for five years for a federal public or community defender organization may qualify for Perkins loan forgiveness. They must have started on or after August 14, 2008.

• Military: Members of the military may be eligible for up to 50% loan cancellation for four years of military service if their active service ended before August 14, 2008, or up to 100% loan cancellation for five years of service if their active service duty began on or after August 14, 2008.

• Health care: If you’re a full-time nurse or medical technician, or work with people with disabilities, you may qualify for up to 100% Perkins loan cancellation.

Forgiveness Application Process

If you believe you qualify for forgiveness, you’ll need to apply for cancellation or discharge of your Perkins loans. To do this, contact the school that originally issued your Perkins loan or reach out to your loan servicer. They will provide the forms and instructions for the type of cancellation or student loan discharge you may be eligible for. Be aware that you will need to show proof that you work in a qualifying public service job.

Partial vs. Full Cancellation

Perkins loans may be forgiven up to 100% of the amount owed, or up to 70% or 50%. Generally speaking, those employed in certain public service occupations as noted above, who started working before August 14, 2008, may qualify for 50% forgiveness rather than up to 100%. Individuals who worked for four years as AmeriCorps VISTA or Peace Corps volunteers may be eligible for up to 70% Perkins loan cancellation. Check with your loan servicer about the specific details of your forgiveness situation.

If you are eligible for 100% forgiveness, your debt will be forgiven in the following increments over five years, as long as you remain employed in your qualifying job:

• 15% of the original loan amount for first and second years

• 20% of the original loan amount for third and fourth years

• 30% of the original loan amount for the fifth year.

Common Challenges in Obtaining Forgiveness

Obtaining forgiveness can be a demanding process. First, you must meet all the eligibility requirements to qualify. And being approved for forgiveness may take months. In the meantime, you will need to keep paying your Perkins loans to avoid missing payments. If you default on your loans, you may not be eligible for forgiveness.

Perkins Loan Discharge Options

If Perkins loan forgiveness isn’t an option for you, you might qualify for Perkins loan discharge in certain circumstances. These circumstances include:

• Bankruptcy

• Total and permanent disability

• Death

• Your school closed while you were getting your degree

If one of these situations applies to you, you may be eligible for total and immediate discharge of your Perkins loans. Contact your school’s financial aid office or your loan servicer for the forms and instructions to apply for discharge.

Alternatives If You Don’t Qualify for Forgiveness

If you are not eligible for Perkins loan forgiveness, there are other repayment options as well as forgiveness and assistance programs you can explore. Here are some alternatives to Perkins loan forgiveness.

Income-Driven Repayment Plans

Federal income-driven repayment (IDR) plans base your payments on your income and family size and often result in a lower monthly payment. On these plans, your loans may be forgiven after 20 or 25 years of qualifying payments.

While Perkins loans are not eligible for IDR plans, if you consolidate your Perkins loans with a Federal Direct Consolidation Loan, you can then enroll in an IDR plan.

Public Service Loan Forgiveness

Under this program, if you work full-time for a government or nonprofit organization, you may be eligible for forgiveness after 120 qualifying payments under a qualifying repayment plan, such as IDR.

Just as with IDR plans, Perkins loans are not eligible for Public Service Loan Forgiveness unless you consolidate them with a Federal Direct Consolidation Loan.

Student Loan Repayment Assistance Programs

Some states and various organizations offer student loan repayment assistance programs (LRAPs) for those who work in high-need occupations and shortage areas. Check with your state or any professional organizations you belong to to see what LRAPs they might have and if you may qualify.

Student Loan Refinancing

When you refinance student loans, you replace your old loans with a new private loan that ideally has lower rates and more favorable terms if you qualify for them. That could help make your payments more manageable. However, refinancing federal student loans means that you’ll lose access to federal benefits, so make sure you won’t need these programs before moving ahead.

Recommended: Student Loan Payment Calculator

The Takeaway

Borrowers may qualify for Perkins loan forgiveness if they work full-time in certain public service jobs and meet other eligibility requirements. If approved, they may be able to have up to 100% of their Perkins loans forgiven.

If forgiveness isn’t an option for you, there are alternatives that could help you repay your Perkins loans, such as an income-driven repayment plan or a student loan repayment assistance program. Another method to consider is student loan refinancing, especially if you can qualify for a lower interest rate or more favorable terms. Explore all the options available to make an informed decision about the best choice for you.

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

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What are the eligibility requirements for Perkins loan forgiveness?

To be eligible for Perkins loan forgiveness, borrowers must work full-time in certain public service jobs such as teaching, military service, health care, and law enforcement, for five years, or in certain nonprofit jobs for four years. In addition, each occupation and field has specific requirements. Check with the school that issued your Perkins loan or your loan servicer for more information.

How long does it take to have Perkins loans forgiven?

In most cases, you’ll need to work full-time for five years in specific public service jobs before your Perkins loans are forgiven. Typically, the loans will be forgiven in the following increments: 15% of the original loan amount in the first and second years, 20% in the third and fourth years, and 30% in the fifth year.

Is Perkins loan forgiveness taxable?

Generally speaking, Perkins loan forgiveness is currently not taxable on a federal level. However, that may change. While forgiven student loan debt is typically considered taxable by the IRS, the American Rescue Plan of 2021 made forgiven debt temporarily exempt from federal income taxes. But this federal tax-exempt status only applies to loans forgiven between January 1, 2021 and December 31, 2025.

About the author

Melissa Brock

Photo credit: iStock/Milko

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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).

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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

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.

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Apr

2025

Pell Grant Eligibility: What Are the Income Limits?

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

Pell Grants are grants awarded by the federal government to help students pay for college. While there is no specific income limit for a Pell Grant, students generally must demonstrate “exceptional financial need” to qualify.

Here’s more information about how Pell Grants work, the Pell Grant eligibility requirements, and what it takes to qualify.

What Is a Pell Grant?

A Pell Grant is funding from the U.S. Department of Education awarded to undergraduate students who have a high degree of financial need. The amount students can receive with a Pell Grant typically changes annually. For the 2023-24 academic year, the maximum Pell Grant award is $7,395.

Unlike some other types of need-based financial aid, a federal Pell Grant does not need to be repaid.

Because of the rising college tuition, financial aid like Pell Grants could help make school more affordable for students who qualify.

Pell Grant Eligibility Criteria

To see if you meet the Federal Pell Grant eligibility requirements, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA).

FAFSA is one of the important financial aid terms to become familiar with. The FAFSA will help a college or university determine whether you qualify for a Pell Grant and if so, how much you may receive. You’ll have to fill out the FAFSA every year you attend school.

You Pell Grant eligibility will also depend on:

• Student Aid Index (SAI) Formerly called Expected Family Contribution (EFC), your SAI is a number your school uses to determine the amount of financial aid you qualify for. Your SAI is calculated using a formula that may include your family’s income and assets and the size of your family.

• Cost of attendance (COA) This is what it will cost for your schooling for the year. Your COA includes tuition, room, board, fees, books, and supplies for your college or particular degree program.

• Whether you’re attending school full-time or part-time

In addition to all of the above, other Pell Grant eligibility requirements include:

U.S. Citizen or Eligible Noncitizen

To qualify for a Pell Grant, you must be a U.S. citizen or a certain type of noncitizen. An eligible noncitizen includes the following individuals:

• U.S. nationals

• U.S. permanent residents with a Permanent Resident Card, Resident Alien Card, or Alien Registration Receipt Card

• People with T nonimmigrant status (they have a T-visa or their parent has one)

• Battered immigrant-qualified aliens

• Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau

Check with your school’s financial aid office to determine if you qualify as an eligible noncitizen.

High School Diploma or Equivalent

To qualify for Pell Grant eligibility, you must be an undergraduate college student. Those who have already earned a bachelor’s, graduate, or professional degree are ineligible. However, in certain cases, students who are in a postbaccalaureate teacher certification program may qualify for a Pell Grant.

Enrollment Status

Your eligibility for a Pell Grant depends on your college enrollment status and whether you’re a full-time or part-time student.

Pell Grants are prorated for part-time students and depend on the number of enrolled credits they plan to take.

No Defaulted Federal Student Loans

If you’ve defaulted on a federal student loan, you’ll be unable to qualify for a Pell Grant until you get out of default. You can get out of default by fully repaying the loan, rehabilitating the loan, or consolidating it.

To rehabilitate a loan, you’ll need to make nine monthly payments on the defaulted loan within 20 days of the due date for 10 consecutive months. With consolidation, you consolidate your defaulted loan into a Direct Consolidation Loan and agree to pay the new loan on an income-driven repayment plan or you must make three consecutive on-time payments in full on the old loan before you consolidate it.

Selective Service Registration

To receive money for financial aid, male students used to have to sign up for the Selective Service. However, because of the FAFSA Simplification Act passed by Congress in late 2020, male students no longer have to sign up for Selective Service registration as a prerequisite for financial aid.

However, almost all males between 18 and 25 must register with Selective Service within 30 days of turning 18. If they don’t, they may face a felony charge, a fine of up to $250,000, and jail time of up to five years.

Sexual Offense

The FAFSA Simplification Act also restored Pell Grant eligibility to confined or incarcerated individuals. They must enroll in an eligible prison education program (PEP) to get a Pell Grant.

Individuals convicted of a forcible or nonforcible sexual offense are not eligible to receive a Pell Grant. However, starting July 1, 2023, those who are subject to an involuntary civil commitment for a sexual offense may qualify for a Pell Grant.

Income Limits

There are no Pell Grant eligibility income limits. Federal Pell Grant eligibility is based on SAI, not income.

Age Limit

Nor are there age limits on Pell Grants. Older adult students can apply for a Pell Grant by filling out the FAFSA form and following the requirements for the school they plan to attend.

Time Limit

There is a time limit for a Pell Grant, however. You can receive a Pell Grant for 12 terms, which is roughly six years, and no more.

Pell Grant Income Eligibility Chart

As mentioned, the Pell Grant is not based on income. Instead, it’s based on your SAI and college cost of attendance. You can get an estimated amount of the grant you might receive by checking the Pell Grant eligibility income chart at studentaid.gov.

Pell Grant Lifetime Eligibility

By law, you are limited to six years of Pell Grant funding over your lifetime.

Other Ways to Fund a College Education

Besides qualifying for Pell Grant eligibility, there are a variety of options for paying for your college education. These include:

• Scholarships: Scholarships are merit-based aid that you don’t have to pay back. You can find scholarships through your college or university, your local community, and certain organizations you or your parents might belong to.

• Grants: Like scholarships, grants for college usually don’t need to be repaid. They can come from your federal or state government, your college, or a private or nonprofit organization.

• Student loans: A student loan is a type of financial aid you use to borrow money and then repay it later with interest. There are federal student loans, which come from the federal government, and private student loans from private lenders. Comparing student loans can help you decide the best type of loan for your needs.

If you take out student loans, and you’d like to reduce your payments or get more favorable terms after graduation, student loan refinancing is an option to explore. When you refinance, you replace your old loans with a new loan that ideally has a lower interest rate or better terms that might help you save money.

While borrowers with good credit may find it easier to qualify for refinancing and get a lower rate, there are even options for bad credit refinancing that borrowers with poor credit could explore.

While student loan refinancing has benefits, it’s important to know that refinancing federal student loans makes them ineligible for federal protections and programs like income-driven repayment plans. If you may need access to these programs, refinancing might not be the best option for you.

The Takeaway

A Pell Grant can help cover some of the cost of college for those who qualify, and the money awarded doesn’t have to be repaid. Pell Grant eligibility is based on your SAI and your college’s cost of attendance. Find out if you qualify by filling out the FAFSA.

Another potential way to save money on what you owe for your college education is to refinance your student loans, which might help you get a lower interest rate. When you refinance a student loan with SoFi, you’ll find low fixed or variable rates, flexible terms, and no fees. And you can learn if you prequalify in just two minutes.

Check your student loan refinancing rate today with SoFi.

About the author

Melissa Brock

Photo credit: iStock/Courtney Hale
SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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.

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Apr

2025

Cost of Vet School and Tips on How to Pay for Vet School

7 Ways to Pay for Vet School

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

Enrolling in veterinary school to earn a Doctor of Veterinary Medicine (DVM) degree means four years of additional coursework and clinical training beyond your undergraduate degree. The top options for paying for vet school involve accessing money you don’t have to pay back, such as scholarships, grants, and fellowships.

Many vet schools offer these types of awards based on academic achievement, financial need, clinical proficiency, leadership, and more. There are many other ways to pay for vet school in addition to these opportunities, such as through federal and private loans.

Read on to learn more ways on how to pay for vet school.

Key Points

• Vet school can cost over $200,000, making financial aid and loans essential for many students.

• Scholarships, grants, and fellowships provide funding that does not need to be repaid.

• Federal loans, including Direct Unsubsidized Loans and Grad PLUS Loans, offer fixed interest rates and repayment flexibility.

• Some government programs, like the Veterinary Medicine Loan Repayment Program, offer loan forgiveness for service in high-need areas.

• Private student loans can help fill funding gaps but should be considered after exhausting federal aid options.

How Much Does Vet School Typically Cost?

In general, the cost of attendance (including tuition, fees and living expenses) for vet school can vary widely, though is often upwards of $200,000 over four years. The VIN Foundations offers a comparison tool that provides information on vet school costs across the U.S. The cost of vet school can vary based on a number of factors, including whether you choose to attend an in-state vet school or a private school.

Continue reading for strategies to help students pay for veterinary school.

1. Choose an Affordable School

Choosing an affordable school means taking a look at a wide variety of colleges and universities and comparing the costs. Consider all costs involved, including tuition, fees, and living expenses. It’s a good idea to look beyond the sticker price on each school’s website — you may not pay the full sticker price.

Meeting with the financial aid office at each school will give you an idea about the types of financial aid you could potentially receive in order to offset the sticker price. Once you have an idea of the costs as they pertain to you, then you can more accurately compare the costs of vet schools.

When developing your list, consider looking at the list of American Veterinary Medical Association (AVMA)-accredited schools in the United States. These schools have achieved the highest standards, commitment to quality, and continuous improvement for veterinary medical education.

Recommended: 11 Ways to Make College More Affordable

2. Scholarships

Scholarships are a form of financial aid that you don’t have to pay back. You can find scholarships from vet schools themselves as well as through independent sources.

Colleges and universities often offer scholarships to first year students, as well as currently enrolled students.

Each college and university has a different approach and criteria for awarding scholarships. Contact the financial aid office of the schools on your list to understand the eligibility factors and process that each school uses to award each scholarship. For example, first-year students at the Ohio State University receive scholarships during the admissions process for the first year, while second-, third-, and fourth-year veterinary students must fill out a separate scholarship application.

Outside scholarships may come from any source, including local veterinarian offices, kennel clubs, businesses, and professional organizations. For example, the AVMA-American Veterinary Medical Foundation (AMVF) offers scholarships for first- through third-year students.

Recommended: Scholarship Search Tool

3. Fellowships

Fellowships and externships for veterinary students usually occur during the summer and often involve research-based and specific career development opportunities. For example, Ohio State University lists a variety of summer-based internships and externships available for students.

In another example, the American Association of Veterinary Medical Colleges (AAVMC) and the Foundation for Food and Agricultural Research (FFAR) combined to create a three-month summer fellowship which focuses on food security on a global scale as well as sustainable animal production.

Various stipends are available for veterinary fellowships — it’s a matter of finding the right program to meet your goals.

4. Grants

If you receive grants, you typically do not have to pay them back. Grants for college are need-based awards, which means you’ll qualify for them based on the level of your financial need. Withdrawing from school or failing to maintain eligibility for the grant means you may have to refund part or all the grant.

You may qualify for grants from your state government, your college or career school, or a private, corporate, or nonprofit organization. Veterinary schools often offer research opportunities for those who demonstrate financial need.

In order to qualify for federal grants, and possibly institutional grants, you’ll need to file the Free Application for Federal Student Aid (FAFSA^®). The FAFSA allows students to apply for all forms of federal financial aid, including grants, scholarships, and federal student loans.

5. Federal Loans for Health Profession Students

Just like your decision of becoming a vet, making decisions about how to pay for school could last for years after you graduate — in the form of paying off vet school debt.
Loans must be repaid with interest, but there are a wide variety of loans available for veterinary students, including federal student loans.

Students can borrow up to $20,500 each year in Direct Unsubsidized Loans for veterinary school, up to a cumulative aggregate limit of $138,500. “Unsubsidized” means that the loan begins accruing interest immediately. The aggregate amount includes loans you received in student loans for undergrad.

As mentioned, you must file the FAFSA to qualify for federal loans for veterinary school.

The U.S. Department of Education isn’t the only government entity that offers loans. The Health Professional Student Loan (HPSL) is a need-based loan from the U.S. Department of Health and Human Services, which offers help paying for pharmacy school as well as dentistry, podiatry, optometry, and veterinary loans.

For veterinary program students who apply, these loans come with a 5% interest rate (compared to current Direct Unsubsidized Loans at 5.50% and PLUS loans at 8.05%). The Department of Health and Human Services will consider your parents’ information to award HPSL funds. Interest does not accrue as long as you are enrolled at least half-time and there’s a 12-month grace period available as well.

There are other types of federal loans available, as well. For example, the U.S. Department of Agriculture offers a Veterinary Medicine Loan Repayment Program (VMLRP) that offers up to $25,000 each year to veterinarians who agree to serve for three years in areas where a designated shortage of veterinarians occurs.

6. Graduate PLUS Loans

A Graduate PLUS Loan, also called a Direct PLUS loan, is also available to graduate or professional students enrolled at least half-time who do not have an adverse credit history and meet the general eligibility requirements for federal student aid.

The Graduate PLUS Loan, which can cover the full attendance for veterinary school (minus other aid received, such as scholarships, fellowships, grants, etc.) currently has a fixed interest rate of 8.05% for loans disbursed between July 1, 2025 and before July 1, 2026. Interest begins accruing as soon as your loan is disbursed.

Grad PLUS Loans are eligible for certain federal perks, such as deferment programs and the opportunity to apply for loan discharge through programs like Public Service Loan Forgiveness.

Recommended: Complete Guide to FAFSA

7. Private Student Loans

Private student loans, which are not offered by the federal government, usually come with a higher interest rate than federal student loans. However, they may have their place in paying for veterinary school, particularly if you need to fill in other gaps between scholarships, federal student loans, grants, and other types of financial aid. It’s a good idea to compare the interest rates, fees, repayment terms, discharge options, and in-school repayment options for various private student loan lenders.

You can apply for a private student loan on a private student loan lender website. You’ll provide certain personal information, as well as information about your vet school program, graduation date, and the loan amount you need. Requested personal information may include the following:

• Social Security number

• Proof of income

• Identification, such as a driver’s license or other government-issued ID

• Financial aid you expect to receive

You must also agree to the lender’s terms and conditions in order to receive the loan. Every student loan lender will have a slightly different process, so follow the steps for the student loan lender you choose.

Private student loans aren’t required to offer the same benefits or perks as federal student loans (things like income-driven repayment plans or Public Service Loan Forgiveness). For this reason, private student loans are generally considered an option after all other resources have been exhausted.

Recommended: How Private Student Loans Work

How Much Can Vets Make?

The 2023 median veterinarian pay was $119,100 per year, or $57.26 per hour. From 2022 to 2032, the profession is projected to grow 20%, much faster than average, according to the Bureau of Labor Statistics.

It’s a good idea to consider this figure but remember that you may not make that amount right after graduating from vet school — the amount reflected is the median pay of many practicing veterinarians.

The Takeaway

Paying for vet school requires some research. You’ll likely want to research the best “free money” opportunities at various veterinary schools, like grants and scholarships. Next, you can look into federal student loans.

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

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can you get scholarships for vet school?

Yes, you can get scholarships for vet school, though they vary widely in the amounts you can receive. Scholarships can come from a number of sources, including the institution you attend, professional organizations, kennel clubs, veterinary practices, and even local businesses. You may need to do some research to learn more about the scholarship options available to you and the requirements for each scholarship. Each scholarship carries deadline dates, so carefully mark them on your calendar and turn the applications in well before deadlines.

Can FAFSA be used for vet school?

Yes, you can file the FAFSA for vet school. In fact, you must file the FAFSA if you want to qualify for federal student aid, which includes federal student loans, grants, and some institutional scholarships. One of the best ways to understand more about your eligibility for federal student loans involves talking to multiple financial aid offices of the vet schools on your list.

How much can veterinarians expect to make?

In 2023, the median veterinarian pay was $119,100 per year, which equates to $57.26 per hour. However, it’s worth noting that the median pay may not reflect the amount you may earn as soon as you graduate.

About the author

Melissa Brock

Photo credit: iStock/herraez

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.

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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

SOIS-Q224-1902956-V1

Apr

2025

Paying for Pharmacy School Need to Knows

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

A Doctor of Pharmacy (Pharm.D.) degree is a four-year, licensed professional degree that teaches students how to fill prescription medications and how to educate patients about using prescriptions safely. Pharmacy school can be expensive, adding up to nearly $200,000 dollars on the high end.

With that price tag, it’s not a surprise that pharmacy students may have to rely on a few different sources of financing to pay for school, sometimes using a combination of savings, grants, scholarships, and student loans. This article will review the pharmacy school costs, the amount pharmacists can make, and nine tips for paying for pharmacy school.

How Much Does Pharmacy School Typically Cost?

The cost of pharmacy school can vary depending on where you enroll, the location, and the extent to which public dollars support the university you plan to attend. As mentioned, the complete cost of pharmacy school can add up to $200,000. The cost can swing higher for students who opt for an out-of-state institution. The American Association of Colleges of Pharmacy (AACP) lists the tuition and fees for pharmacy school for the 2022-2023 academic year on its website, which can help you compare costs at the pharmacy schools you may be considering.

For example, the first school on the list, Auburn University, costs $22,736 for in-state pharmacy students and $43,508 for out-of-state students. Mandatory fees cost $410 for 33 credit hours for students in their first year. However, in the fourth year, it costs $27,216 for in-state students and $58,374 for out-of-state students, with $210 for mandatory fees for 46 credit hours.

It’s worthwhile to compare the costs of various institutions before you make a decision. However, remember that financial aid can potentially bring the costs down further, so don’t rely completely on the published tuition prices. A conversation with the financial aid office at each school may give you a more in-depth analysis of how much it will actually cost, taking your personal situation into account.

Is Pharmacy School Worth It?

For the right individual, pharmacy school can be worth it. The costs of pharmacy school may seem daunting, but the professional perks, ability to become a part of a healthcare team, job opportunities, and career stability can mean that pharmacy school is the right option for many individuals. The high salary of pharmacists may also make pharmacy school worth it.

How Much Can Pharmacists Make?

The 2023 median pay for pharmacists was $136,030 per year, or $65.40 per hour, according to the Bureau of Labor Statistics (BLS). Job outlook from 2022-2032 will increase 3% per year, which is as fast as average.

9 Tips for Paying for Pharmacy School

Think of paying for pharmacy school as a pie. There are many ways to pay for pharmacy school by dividing that pie. For example, various pieces of the pie might make up scholarships, grants, loans, and money out of your own pocket. No matter how you slice the pie, every dollar you contribute is an investment into your career and your future. We’ll discuss scholarships, including university, pharmacy, and private scholarships, as well as grants in the next section.

1. Scholarships

Scholarships are funds that you don’t have to pay back. You can get scholarships as a pharmacy student from a number of different sources, including from the university that you plan to attend as well as through designated pharmacy scholarships and private scholarships.

It’s worth considering other interests beyond pharmacy. Scholarships may be awarded based on heritage, location, or even hobbies or special skills. Maybe you have talents in another area that qualify you for additional scholarships.

University Scholarships

Pharmacy colleges and schools traditionally offer direct financial assistance to pharmacy students through various sources, including alumni associations and local chapters of pharmaceutical organizations and fraternities.

Consider setting a meeting with the financial aid office at the university you plan to attend to learn more about specific scholarships from each pharmacy school you’re interested in attending.

Pharmacy Scholarships

Local and state pharmaceutical associations, practicing pharmacists, drug manufacturers, and wholesalers may offer pharmacy scholarships to promising pharmacists, as well.

For example, 10 pharmacy students annually can receive a $5,000 Walmart Health Equity Scholarship. Students must be accepted or enrolled in the professional curriculum at a U.S. college or school of pharmacy, and show evidence of leadership skills, academic success, and must have a preference to serve rural or medically underserved patients.

Here’s another example: Five underrepresented minority students can receive the CVS Health Minority Scholarship for Pharmacy Students annually. Students must be African American, Hispanic or Latino, American Indian, Native Hawaiian, and/or Pacific Islander students, as well as U.S. citizens or permanent residents. Each successful candidate will receive a single $7,000 scholarship.

Private Scholarships

Private scholarships come from companies, service groups and organizations, foundations, and individuals. For example, Tylenol offers a scholarship for students pursuing careers in healthcare, including pharmacy. There may also be scholarships available from local or regional organizations.

2. Grants

Like scholarships, you do not have to repay the money you receive from grants. Grants, which are typically based on need, can also be awarded based on merit. Filling the Free Application for Federal Student Aid (FAFSA®) automatically considers you for federal grants based on need. You may also become eligible for state grants. Your college or university can give you more information about the types of grants you’re eligible for through your pharmacy program.

3. Federal Student Loans

You may be wondering how to pay for pharmacy school without loans. It’s possible to do it through a combination of scholarships, grants, and savings, though many people take advantage of federal student loans through the U.S. Department of Education. Federal student loans have fixed interest rates and benefits such as income-driven repayment plans. Just like obtaining an auto loan or a mortgage, you must pay back loans with interest.

Federal student loans are a type of federal financial aid, and to apply, you must file the FAFSA. Learn more about the requirements for this application in SoFi’s comprehensive guide to the FAFSA.

You can qualify for two types of federal student loans for pharmacy school: Direct PLUS Loans and Direct Unsubsidized Loans.

Direct PLUS Loans

Pharmacy students can take advantage of Direct PLUS Loans, also called graduate PLUS loans or direct grad PLUS loans, to help finance graduate and professional school. The Graduate PLUS Loan comes from the U.S. Department of Education for graduate or professional students. In order to get one, your school must participate in the Direct Loan Program.

The Direct PLUS Loan is not need-based, which means you can get it no matter your income level. You can borrow up to the full cost of attendance and can use the money to pay for tuition, room and board, and fees. Your school will subtract other financial aid you receive (such as scholarships, grants, and fellowships) from the full cost of attendance and award you the difference with a Direct PLUS Loan.

The interest rate is 8.05% for Direct PLUS Loans first disbursed on or after July 1, 2023 and before July 1, 2024.

Direct Unsubsidized Loans

Similar to student loans for undergraduates, you can tap into Direct Unsubsidized Loans. You can borrow up to $20,500 per year with the Direct Unsubsidized Loan, and the interest rate is 7.05% if disbursed between July 1, 2023 and July 1, 2024 for graduate students. “Unsubsidized” means that the government doesn’t pay the interest while you’re in school and during the grace period.

It’s generally a good idea to first consider opting for the Direct Unsubsidized Loan, over a Graduate PLUS Loan. Why opt for the Direct Unsubsidized loan first?

You’ll pay more in interest for the Direct PLUS Loan (8.05% interest rate).

4. Private Student Loans

Private graduate student loans do not come from the federal government. They can come from a bank, credit union, or another financial institution and can be used to help finance college or career school. The amount you can borrow depends on the costs of your degree, but also depends on personal financial factors (such as your credit score and income).

You may have gotten advice that suggested exhausting all of your federal grant and loan options before you consider private loans because interest rates are usually higher compared to federal student loans. Additionally, private student loans don’t qualify for the same borrower protections as federal student loans, like income-driven repayment plans or deferment options. However, private student loans can be an option to consider if you need additional funding to cover your pharmacy school expenses.

5. PSLF Programs

The Public Service Loan Forgiveness (PSLF) Program is a federal student loan forgiveness program. More specifically, you may qualify to have the remaining balance on your Direct Loans forgiven after you have made 120 qualifying monthly payments under a qualifying repayment plan. You must work full-time for a qualifying employer in order to qualify and your employer must be a qualifying organization such as a federal, state, local, or tribal government organization or other nonprofit organization.

You must have Direct Loans or consolidate other types of federal student loans into a Direct Loan, repay loans under an income-driven repayment plan, as well as make 120 qualifying payments toward your student loans. The requirements for PSLF can be quite strict, so be sure to read the requirements closely.

For more information about PSLF programs and to learn more about your eligibility, contact your loan servicer, which is the entity that services your loan.

6. Pharmacy Internships

Pharmacy internships can be instrumental in your budding career as a pharmacist in helping you understand how pharmacies operate, learning the ins and outs of customer service, helping you dive into inventory management, and learning the professional skills necessary to become a pharmacist. You may also learn more from pharmacist professionals about leading a pharmacy team and help you bring tangible professional experience back to the classroom.

You may also want to look into pharmacy fellowships, which provide financial support in an external or internal capacity (in or out of the university environment). Assistantships also provide financial support in an academic department through teaching, research, or administrative responsibilities.

7. Work Part Time

You may want to consider working a part-time job in conjunction with pharmacy school. For example, if you attend school from 8am to 4pm, you may want to seek a part-time job after hours.

However, it’s important to consider your time constraints and whether you can succeed in your coursework. Consider your ability to manage your time before you take on a part-time job. However, for the right student, taking on a job can help pay for college tuition and give you an additional source of income. Networking opportunities and skill development can come from a part-time job, even if it doesn’t relate to pharmacy.

8. Borrow From Family

Do you have a family member who really wants to give you money for your education? You may seriously consider borrowing from your parents or a sister or brother (or whoever else wants to lend you money).

Just remember that it could strain family relationships if you fail to pay back the loan. It’s a good idea to have a plan in place to repay your relative(s) as well as create boundaries, so both parties feel good about the arrangement.

9. HRSA Loans

The Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services, improves health care for geographically isolated and vulnerable individuals.

The Department of Health and Human Services (HHS), through the HRSA, also offers several loans for health services students. For example, Health Professions Student Loans are available to individuals who study pharmacy (as well as dentistry, optometry, podiatry, or veterinary medicine). Pharmacy students who show financial need may also be able to tap into Loans for Disadvantaged Students (LDS). Health professions student loans have fixed interest rates of 5%, lower than both Direct Unsubsidized Loans and PLUS loans. They also allow 12 months of grace periods, while most other loans only offer six months of grace periods. In addition, health professions loans are subsidized, which means you don’t pay interest on the loan while you’re in school, nor do you pay additional loan fees.

However, they come with a few downsides: Not all schools participate, and there are no set borrowing limits. You also can’t tap into income-driven repayment plans or PSLF.

Private Student Loans for Pharmacy School

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can you use FAFSA for pharmacy school?

Absolutely! It’s generally a smart idea to file the FAFSA for pharmacy school, no matter your financial situation. The FAFSA can give you access to a range of financial aid options, including scholarships (your school will consider your eligibility based on the FAFSA results), grants, loans, and work-study. You want to be able to put together the best financial aid options for your needs, and the best way to do that involves filing the FAFSA.

Does CVS or Walgreens pay for pharmacy school?

CVS and Walgreens both offer pharmacy scholarships, like the ones we listed above, the Walmart Health Equity Scholarship and the CVS Health Minority Scholarship for Pharmacy Students. If you work for either company, you may also qualify through each company’s employee tuition reimbursement program. Check with the human resources department at each company for more details.

How much can pharmacists make after graduating?

The 2023 median pay for pharmacists was $136,030 per year, or $65.40 per hour, according to the Bureau of Labor Statistics (BLS). The job outlook for pharmacists is 3% from 2022 through 2032, which is as fast as average.

About the author

Melissa Brock

Photo credit: iStock/cagkansayin

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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

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

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