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Nurses are in demand. From 2022-2032, the Bureau of Labor Statistics (BLS) predicts an average of 177,400 openings for registered nurses. Many of those openings come about due to nurses who switch occupations or exit the labor force, including those who retire.

Because nurses are in demand, you may want to attend nursing school. Let’s walk through 10 ways to help you figure out how to pay for nursing school.

1. Start With the FAFSA

The Free Application for Federal Student Aid (FAFSA®) is a federal form that students can fill out every year that gives you access to federal and institutional aid to pay for college. Your college or educational institution will use the FAFSA to determine your eligibility for federal grants, work-study, and federal loans to attend college or career school. There is no cost associated with the FAFSA.

You can file the FAFSA starting on October 1 for the subsequent academic year that you plan to attend college. For example, if you plan to attend nursing school in the fall of 2025, you can file the FAFSA starting on October 1 in the fall of 2023.

You’ll need a FSA ID, a username, and a password that confirms your identity when you’re looking at or signing official financial aid documents. You’ll need two separate FSA IDs — one for you and one for your parents, if you’re a dependent student.

You can list up to 10 colleges and universities on the FAFSA using the Federal School Code search to identify each of the schools where you’d like it sent.

The FAFSA’s data retrieval tool (IRS DRT) takes most of the work out of filing the FAFSA. It pulls information directly from the IRS. After you follow the FAFSA directions, you sign with your FSA ID.

2. Nursing School Scholarships

Some colleges may offer scholarships specific to nursing students. You can also look beyond your nursing major. Do you have talents in art, music, or leadership that could qualify you for a merit-based scholarship? (Merit-based scholarships are those that are not based on financial need.) Ask the financial aid office at the school you plan to attend for more information about merit-based scholarships.

You can also take to the web to look for more scholarships. Here are a few examples:

•  The Healthline Stronger Scholarship awards four $5,000 scholarships to students who, based on their education, extracurricular activities, and career goals, are focused on both health and climate change.

•  The National Black Nurses Association, Inc (NBNA) offers several scholarships each year ranging from $1,000 to $15,000. To apply, you must be a member of the NBNA, currently enrolled in a nursing program and in good scholastic standing at the time of application with at least one full year of school remaining.

•  The FNSNA Undergraduate Scholarship awards scholarship funds based on a set of criteria established by the sponsor of the scholarship, which often outline a specific area of specialization within the nursing profession. Successful candidates can earn up to $10,000 per academic year.

In addition to looking into what your college or university can offer and searching online, take a look at local connections for specific educational or vocational programs in a particular field, such as nursing scholarships through local hospitals and privately owned doctor’s offices.

You can also look into community groups like 4-H, Kiwanis Club, and other organizations for available scholarships. Many foundations, such as the Bill and Melinda Gates Foundation, also offer scholarships.

Recommended: Scholarship Search Tool

3. Grants for Nursing School

Grants are primarily need-based awards, though some grants are awarded based on merit. Like scholarships, grants do not need to be repaid once you complete your program. Filling the FAFSA will give you access to grants through programs like the Federal Pell Grant. The FAFSA automatically considers your eligibility for federal grants based on need.

You may also become eligible for state grants based on the grants available to you in your state.

Recommended: Grants For College – Find Free Money for Students

4. Federal Student Loans

Unlike scholarships and grants, you must pay back college loans. As a nursing student, you may tap into several types of federal student loans or private loans — both graduate or undergraduate loans.

Federal student loans are given to nursing students through the Department of Education, which, as mentioned, means that you must file the FAFSA in order to receive them.

Federal student loans offer flexibility in that you do not need to undergo a credit check, with the exception of the Direct PLUS Loan, which does require a credit check. Federal student loans also offer low-interest rates, various repayment plans, and forgiveness options. You could also use federal student loans to cover living expenses. For example, if you need to pay rent for an apartment while you’re attending nursing school, a federal student loan can help cover those expenses.

Types of Federal Loans

There are three main types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS Loans.

Direct Subsidized Loans

Direct Subsidized Loans are low, fixed-rate federal loans for eligible undergraduate students to help cover the costs of college or career school. The government pays the interest while you are in school or during qualifying periods of deferment. Subsidized loans are awarded based on financial need.

Direct Unsubsidized Loans

Direct Unsubsidized Loans have a low, fixed interest rate and flexible repayment terms. Undergraduate, graduate, and professional students can qualify for these loans. In contrast to the Direct Subsidized Loan, the government does not pay the interest while you’re in school. Students do not need to demonstrate financial need in order to qualify for an unsubsidized loan.

Direct PLUS Loans

Direct PLUS Loans are another option available to graduate or professional students and parents of undergraduate students. Unlike other federal loans, PLUS loans do require a credit check. Borrowers are able to borrow up to the full cost of attendance.

Student Loan Forgiveness for Nurses

Student loan forgiveness for nurses means you don’t have to pay for your federal student loans in full. The federal government runs a few loan forgiveness programs that generally offer loan forgiveness after borrowers have fulfilled certain requirements. For example, the Nurse Corps Loan Repayment Program pays up to 85% of unpaid nursing education debt for registered nurses (RNs), nurse practitioners, and nurse faculty members. You must qualify by working in a critical shortage facility or an eligible nursing school as a nurse faculty member.

Student Loan Payment Deferrals

Federal student loans do not have to be repaid until October 1, 2022, at the earliest. In March 2020, Congress passed a bill that automatically suspended student loan payments and waived interest. The benefit was originally set to expire but has been reinstituted several times.

Current nursing students who will graduate soon will not have to make student loan payments. Depending on what the federal government does next, they may also experience another extension.

5. Private Student Loans

Private student loans come from a local bank, credit union, or another type of private student loan lender, not the federal government. Like a federal student loan, you can use private student loans to cover living expenses, tuition, and other related school costs.

Lenders evaluate an applicant’s credit history, among other factors. Students who do not have a strong credit history or score may need to add a cosigner in order to qualify or potentially qualify for a lower interest rate. If you can’t pay back the loan, your co-signer is on the hook for paying back the loan.

Private Student Loans vs Federal Student Loans

As you likely know, there are some differences between private and federal student loans, which leads many financial experts to suggest taking out federal student loans over private student loans. Here are some features of private student loans that make them less advantageous over federal student loans:

•  May need a cosigner: Private student loans often require you to have a cosigner. However, if you make a certain number of on-time payments, you can apply to have your cosigner removed from the loan.

•  No federal protections: You can’t tap into income-driven repayment programs, loan forgiveness, and deferment protections with private student loans like you can with federal student loans.

Due to these differences, private student loans are typically considered an option only after all other funding sources have been depleted.

6. Tuition Reimbursement Programs

Through a tuition reimbursement program, a company covers some or all of the costs of an employee’s education as long as you follow the company’s tuition reimbursement requirements. This is a major benefit because you can work at another company, possibly through a part-time job.

7. Hospitals/Employers That Pay for Nursing School

Another option may be to work at a hospital or other health care employer through a tuition reimbursement program. For example, you could get a job in the billing office of the hospital and go to nursing school during your off hours, or you may be able to work with your employer to put together the best schedule for both of your needs.

Hospitals and health care employers want to retain good workers, particularly in nursing, which has such a shortage of employees.

Learn more about the health care employer’s requirements for tuition reimbursement, including the amount they will reimburse. Note that it may not equal 100% — it might be 75% or 50% instead.

8. Getting a Nursing Degree Abroad

Completing a nursing degree abroad can take about two to three years. However, you can find short-term study abroad programs (a fall semester, summer, or a few weeks between terms) in many different countries.

You can often find free programs, scholarships, or grants that will help cover the cost of your study abroad program — some countries offer various options for students. Consider looking into countries that have reputable health care programs, such as Denmark, Germany, Norway, Switzerland, or Sweden.

9. Military Service

You may have a large range of education benefits if you complete military service. For example, you can access the Post-9/11 GI Bill if you served at least 90 days on active duty (either all at once or with breaks in service) on or after September 11, 2001, or received a Purple Heart on or after September 11, 2001 and were honorably discharged (after any amount of time), or served for at least 30 continuous days (all at once, without a break in service) on or after September 11, 2001, and were honorably discharged with a service-connected disability, or are a dependent child using benefits transferred by a qualifying veteran or service member.

Follow the rules regarding military service requirements, depending on your branch of the military. The college and university you plan to attend will have more information about your education benefits and so will your military branch.

10. Nurse Corps Program

The Nurse Corps Program is a scholarship available to eligible nursing students. In exchange for the scholarships, recipients work in critical shortage areas after graduating with their nursing credentials.

Deciding Which Route to Pursue

When you need help paying for nursing school, which option makes sense for you? Your preferences might offer you the most insight into the best option to pay for school. For example, it might make sense to avoid the military programs offered because you have no interest in joining the military. You may also not have the resources to study overseas or have a family who depends on you for financial support. Your goal may also be to learn how to pay for nursing school without loans.

Whatever your goals, one thing you can do is to meet with the financial aid office of the school you plan to attend. A financial aid professional can lay out all your options and help you choose the right option for you.

Private Student Loans From SoFi

When you’re readying yourself for nursing school, it’s good to have options. Options for paying for nursing school include scholarships, grants, federal student loans, and private student loans.

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

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 FAFSA be used for nursing school financial aid?

Yes, you can use the FAFSA in order to qualify for financial aid for nursing school. The amount of financial aid you receive depends on your level of need, year in school, dependency status, and other factors. For example, you can access Direct Subsidized and Unsubsidized Loans between $5,500 to $12,500 per year in undergraduate. In graduate or professional school, you can borrow up to $20,500 each year in Direct Unsubsidized Loans.

Can an employer pay for you to attend nursing school?

Yes, an employer may pay for you to attend nursing school. Your current employer may help you pay for nursing school. Talk to the human resources office to learn more about tuition assistance, the amount you can receive for attendance, and the details about your employer’s tuition reimbursement regulations.

If you aren’t currently aware of jobs that pay for nursing school, you may want to contact the college or university you plan to attend and learn more about your employment options, including work-study opportunities.

Can you use private student loans for nursing school?

You can access private student loans to pay for nursing school. SoFi can offer private loans that cover nursing school and even living expenses. Learn more about your private student loan options with SoFi.

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Photo credit: iStock/FatCamera

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

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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-Q224-1902646-V1

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Certified registered nurse anesthetists (CRNAs) are nurses with graduate-level education who provide anesthetics to patients in surgical and other procedures.

Currently, nurse anesthetists must have a registered nurse (RN) license and a master’s degree from a nurse anesthesia educational program accredited by the Council on Accreditation (COA) of Nurse Anesthesia Educational Programs or a Master of Science in Nursing (MSN) program. Nurse anesthesia programs typically range in length from 24 to 51 months. By 2025, all CRNAs must have a Doctorate in Nurse Anesthesia Practice (DNAP), according to the COA. It typically takes two years for a student with an MSN to earn a doctorate.

Continue reading for a look at nine tips that can help you learn how to pay for CRNA school.

How Much Does CRNA School Cost?

You may have already spent a few years paying for nursing school to get your registered nursing degree, but how much does it cost to further your education to become a nurse anesthetist?

The total cost of CRNA school (including tuition, clinical fees and other expenses) can vary widely, depending on whether you choose to attend an out-of-state institution, a private college, or an in-state university.

For example, the 2021-2022 tuition and fees at Loma Linda University in Loma Linda, California, are an estimated $138,666. In contrast, tuition and fees are approximately $45,000 for Arkansas State University’s. Note that there may be additional costs associated with a CRNA degree, such as books, supplies, or exam fees.

Note that the average nursing school cost can vary widely, ranging from $6,000 for an associate degree to over $100,000 for an advanced degree.

9 Tips to Help You Pay for CRNA School

Let’s take a look at nine tips you can use to pay for CRNA school, from choosing a less expensive school to answering the question, “Will financial aid pay for CRNA school?”

1. Choose a Less Expensive School

You can save money by choosing a less expensive school and/or by making sure that you have residency in the state of the university you want to attend. For example, the total cost of attending Georgetown University’s DNAP program for the first year is $140,693, $86,361 for the second year and $75,884 for the third year.

The cost to attend the University of Iowa is $85,553 if you’re an in-state resident or $159,206 if you’re an out-of-state resident.

It’s important to compare and contrast the costs of several programs before you decide which school will both meet your needs and help you save money.

2. Save Money

You may also want to consider saving money for college to limit the amount of money you’ll have to borrow for CRNA education. Knowing the costs of the schools on your shortlist can help you earmark a certain amount of money to set aside. However, remember that you may receive scholarships and grants that you don’t have to pay back. You might not need to save for the complete costs of a nurse anesthetist program. One way to understand your exact costs is to meet with the financial aid office of the schools you’re considering. They’ll give you an idea of the type of institutional financial aid you could qualify for.

There are a wide variety of ways to save, including through a general savings account, certificate of deposit (CD) or a 529 plan, which is a state tax-advantaged plan that will allow you to withdraw funds tax-free to cover nearly any type of college expense. 529 plans may also have additional state or federal tax benefits.

3. FAFSA and Financial Aid

The Free Application for Federal Student Aid (FAFSA®) refers to a form you can complete to determine your eligibility for student financial aid. Learn more about the FAFSA with SoFi’s comprehensive FAFSA guide.

You can qualify for federal student aid, including grants and federal student loans, through the FAFSA. You may also have to file the FAFSA in order to qualify for institutional scholarships.

4. Work More

If you’re already working as a nurse, you may want to consider picking up some more hours in order or prepare to save for your CRNA degree. It’s important to note that since nurse anesthesia programs are so labor intensive, most students find it difficult to work while attending CRNA school. However, you can certainly save up as much as possible prior to entering school in order to save as much as possible. If you must work, you may want to strictly limit your hours, but that’s a personal decision.

5. Getting an Employer to Pay for Your Education

Will a hospital pay for CRNA school?

Hospitals and groups often offer tuition reimbursement to offset loan debt. However, you may have to sign a tuition reimbursement payback agreement, which means you may have to pay back your reimbursement if you leave the company within a specific amount of time.

Ask your human resources office and read the fine print if your hospital has an agreement to see if you need to repay tuition if you get laid off or fired.

6. Grants

Grants are “free money” that you typically don’t generally have to pay back. The American Association of Nurse Anesthetists (AANA) offers nurse anesthesia grants to develop research for member CRNAs to develop healthcare policy, the science of anesthesia, education, practice/clinical or leadership opportunities. The Foundation will reimburse up to 15% indirect costs with proper documentation.

The AANA grants listed above are research grants, but you may be able to tackle state grants, school grants for graduate students and other types of grants by filing the FAFSA. The best way to learn more is to ask more questions through the financial aid offices of the schools you’re considering.

7. Scholarships

Like grants, you also do not have to pay back scholarships.

The AANA also offers scholarships. Students who are AANA members and currently enrolled in an accredited nurse anesthesia program may be eligible for scholarships as long as you’re in good standing in your program, meet the application requirements, and apply online.

In addition, the university you plan to attend may also offer merit-based scholarships. Contact your school’s financial aid office to see what they offer and how to apply.

8. Private Student Loans

Private student loans originate with a bank, credit union, or online lender, not the federal government like in the case of federal student loans. Private student loans can fill in the gaps between tuition as well as your savings, grants, scholarships, and federal student loans.

It’s a good idea to explore the interest rates, fees, repayment terms, discharge, and repayment options among private student loan lenders.

The application process usually involves submitting information about your personal information, school you plan to attend, graduation date, and loan amount you need. You must also agree to the lender’s terms and conditions.

It’s important to note that private student loans don’t offer the same borrower protections, like income-driven repayment plans, as federal student loans, so they are typically considered an option only after they have thoroughly reviewed all other financing opportunities.

Recommended: Private Student Loan Guide

9. Direct PLUS Loans

Similar to student loans for undergrads, you can also get student loans for graduate school. You do have to repay loans.

As a graduate student, you can become eligible for federal loans that come from the U.S. Department of Education, including Direct Unsubsidized Loans and Direct Plus Loans. You can borrow up to your cost of attendance. Direct Unsubsidized Loans have a lower interest rate and origination fee than the Direct PLUS Loan, also called the Graduate PLUS Loan.

For Direct Unsubsidized Loans for graduate students disbursed on or after July 1, 2023 and before July 1, 2024, the fixed interest rate for Direct Unsubsidized loans is 5.50%. Direct PLUS Loans first disbursed on or after July 1, 2023, and before July 1, 2024, have a fixed interest rate of 8.05%.

The benefits of federal loans include a six-month grace period before beginning repayment as well as flexible repayment plans with Public Service Loan Forgiveness eligibility. This means that as long as you make 120 qualifying monthly payments under a qualifying repayment plan, you might get your loans forgiven as long as you work full-time for a qualifying employer.

How Much CRNAs Can Expect to Make?

Nurse anesthetists can expect to make a median salary of $214,200 per year or $102.98 per hour, according to the Bureau of Labor Statistics. The job outlook for these jobs will grow about 38% from 2022 to 2032.

The Takeaway

There are a lot of ways to make your dreams of becoming a CRNA a reality. You may want to consider filing the FAFSA to qualify for federal loans, grants, and other types of funds. The AANA may also offer scholarships that you qualify for, but don’t forget to check with your employer or other sources, such as local businesses, for other funds.

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 paid for going to CRNA school?

You typically cannot get paid to attend CRNA school. However, universities often offer a wide variety of financial aid options, through both merit-based and need-based aid. You may need to file the FAFSA in order to qualify for certain types of aid. Check with the financial aid office at the universities you’re considering for more information about your financial aid options.

The American Association of Nurse Anesthetists (AANA) also offers nurse anesthesia grants and scholarships to students who qualify.

How much does CRNA school cost?

The costs of CRNA school depends on a wide range of factors, including whether you plan to attend an in-state or out-of-state institution or plan to attend a private or public school.

For example, Georgetown University, a private institution, costs $140,693 for the first year, $86,361 for the second year and $75,884 for the third year. On the other hand, the full cost to attend the University of Iowa is $85,553 for three years as an in-state resident or $159,206 as an out-of-state resident.

How much do CRNAs typically make?

As a nurse anesthetist, you can expect to make a median salary of $214,200 per year or $102.98 per hour, according to the Bureau of Labor Statistics.

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About the author

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Photo credit: iStock/FatCamera

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

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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.

SOIS-Q224-1902890-V1

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A payday loan is a high-cost, short-term loan that gives you a quick infusion of cash to tide you over until your next paycheck. If you’ve taken out several payday loans, you may wonder about your repayment options. Consolidating them, or taking out a single new loan to pay off the multiple high-interest ones, can be an option. For some people, it can be a path out of the debt cycle.

It’s important to understand how this process can work and its pros and cons.

Understanding Payday Loan Consolidation

Before you learn about payday loan consolidation, a brief note about these loans: They are typically used by people in urban areas who earn less than $40,000 per year. They can offer cash when needed for individuals who are falling behind on rent, utilities, or car payments.

Next, take a closer look at payday loans and how debt consolidation works.

Definition and How It Works

Payday loan consolidation means combining multiple existing payday loans under one new personal loan. In short, payday loan debt consolidation bands your loans together and allows you to repay them, typically at a lower interest rate and/or with a longer repayment period, usually one to seven years. In short, they can be a great alternative to repaying individual payday loans. While payday loans are usually very short-term, if you do the math, their annual percentage rate (APR) can be a shocking 391% or higher.

To get a payday loan consolidation loan, you can take the following steps:

1.    Add up your payday loan balance, including fees.

2.    Compare debt consolidation interest rates and loan terms, as well as personal loan requirements.

3.    Apply for the loan that best suits your needs. Banks, credit unions, and online lenders may offer personal loans, which are typically unsecured loans, meaning you don’t need to provide collateral.

4.    Once you are approved for a personal loan, you receive a lump sum payment to pay off your payday lenders. Or your lender may pay off your payday loans directly.

5.    Make monthly payments on the personal loan until you pay it off completely. Setting up automatic payments so you don’t miss a payment can be a smart move.

Recommended: Payday Loan Requirements

Benefits of Consolidating Payday Loans

Here are the benefits of consolidating online payday loans and other forms of fast cash lending.

•   New interest rate: Consolidating your payday loans means you can get a new, lower interest rate, well below than the triple-digit APRs that payday loans typically carry.

•   Convenience: When you consolidate to a personal loan, you receive a regular monthly payment, which helps with a more predictable repayment schedule. You no longer need to juggle or worry about multiple payments.

•   Lower fees: You may get charged an origination fee (between 1% and 10% of the loan amount) with a personal loan, but these charges are typically much less than the cost of carrying payday loans.

•   Credit building: You might be able to build your credit score as you make regular, on-time monthly payments on your new personal loan. This can benefit you in the long run because it could give you opportunities to qualify for other loans at more favorable rates in the future.

Options for Payday Loan Consolidation

There are several options for payday loan consolidation, including debt consolidation loans, credit counseling services, and debt management plans.

Debt Consolidation Loans

You might want to consider a debt consolidation loan through a bank, a credit union, or an online lender. A debt consolidation loan is a type of loan that allows you to pool many of your loan payments into a single loan payment, making it easier for you to keep track of your payments. You might also find that these financial institutions offer significantly lower interest rates than payday loans. This can result in lower monthly costs, which can be very helpful for those who are living paycheck to paycheck.

Check for the interest rate on your new loan and the length of time you’ll repay your debt consolidation loan to ensure you get a comprehensive understanding of how much you’ll pay.

Credit Counseling Services

Credit counseling services are nonprofit organizations that help you manage your debts. They may offer educational materials and advice after reviewing your situation in a consultation, educate you about money management, help you develop a budget, and understand your credit report and scores.

Debt Management Plans

Credit counseling agencies and certified financial planners (CFPs) can help you develop a debt management plan. They will walk through your financial situation and discuss several options, including how to handle unsecured debts like credit cards and personal loans. Agencies may take management of your debts and contact creditors to find out if they can:

•   Lower interest rates

•   Lower monthly payments

•   Stop late fees

They will let all your creditors know that they have taken over your accounts, which means your payments go to the agency instead of to your creditors.

A CFP can help you budget and explore options for restructuring and consolidating your debt.

Of course, you’ll pay fees for these professional services, so check with the agency or CFP how much you’ll pay. Be cautious about this decision, and check the reputation of an agency or financial professional carefully.

Qualifying for Payday Loan Consolidation

You can qualify for payday loan consolidation by meeting credit and income verification requirements and by understanding the fees and interest rates, repayment terms, and schedules.

Credit Requirements and Income Verification

Here are the usual requirements: You must be 18 or older and have a valid ID, such as a driver’s license or passport, to get a consolidation loan. You must also prove your income through a pay stub or other document and that you have an active bank or credit union account.

Fees and Interest Rates

Payday debt consolidation loans also come with fees and interest. As of August 2024, interest rates range from about 8.00% to 36.00%, depending on your creditworthiness, with an average of 12.36%. Origination fees are typically 1% to 10% of the loan amount.

Repayment Terms and Schedules

Along with a lower interest rate, you can also expect a longer repayment period with a payday consolidation loan compared to a standard payday loan. The term typically ranges from one to seven years with monthly payments.

Develop a Debt Repayment Strategy

Once you receive the money for the payday loan consolidation, you can pay off each payday lender (or the lender of your consolidation loan may do so for you). Then focus on paying off your personal loan. It’s vital to keep up on your personal loan payments, because missed payments can negatively affect your credit score.

Consider setting up automatic payments to avoid making missed payments, which also results in late fees. You might even get a discount (possibly between 0.25% and 0.50%) to set up automatic payments.

Create a Budget and Cutting Expenses

Creating a budget can help ensure you won’t need another payday loan. Use a budget app or try a method like the 50/30/20 budget rule to keep track of your expenses and to determine where you can cut back, whether it’s eating out, purchasing shoes or clothes, a gym membership you never use, or other items you don’t really need.

Doing this can help you make your payday loan consolidation payments and meet all your other debt obligations. Staying on top of your finances in this way can be a path to paying off debt quickly.

Prioritizing Debt Payments

Consider prioritizing debt repayment for your personal loan for consolidation and also on other loans that you owe. Taking care of all types of debt you owe can set you up for financial success. Tackling all types of debts can help you succeed over time, so keep track of what you owe on the following:

•   Mortgage

•   Student loans

•   Auto loan

•   Home equity loan

•   Credit-builder loan

Recommended: Debt Payoff Guide

Build an Emergency Fund

Many experts recommend building an emergency fund that contains three to six months’ worth of basic expenses, to help protect against incurring future debts. An emergency fund can cover unexpected expenses or financial emergencies, such as a big car repair bill or a job loss situation. You might put the money for an emergency fund into a high-yield savings account to earn a competitive interest rate.

If you have an emergency in the future, you can dip into your emergency savings instead of taking out a payday loan.

Avoid Payday Loan Debt in the Future

Payday loans are risky, and if you need money, they should be your last resort. So, what are your alternatives? Here are some options.

Understand the Risks of Payday Loans

Payday loans may seem innocuous because you can get a quick infusion of cash without a credit check as long as you repay the loan balance on your next payday. Payday loans are small loans (usually $500 or less) that you must repay within 10 to 14 days of receiving the money. No biggie, right?

It’s true that you’ll get funds in your bank account quickly — usually within one business day. But the risks of payday loans occur when the lender assesses fees. Payday lenders don’t charge traditional interest rates — they usually charge a flat fee, between $10 and $30 for every $100 borrowed.

For example, a $500 loan could incur $150 in fees after the 10- to 14-day period. Some have interest rates of a whopping 600%.

Explore Alternative Financing Options

To avoid those kinds of interest rates, alternatives to payday loans include:

•   Personal loans: Standard personal loans can offer funds at a significantly lower interest rate, if you qualify. Bad-credit personal loans can be obtained by those who have a low credit score, and these loans do not require collateral. Unfortunately, these come with higher interest rates, but they’re not as high as payday loans.

•   Payday alternative loans: Payday alternative loans come from credit unions as an alternative to payday loans. Payday alternative loans (PALs) are divided into PALs I and PALs II. Credit unions offer $200 and $1,000 PALs I with a maximum 28.00% APR, with one- to six-month repayment terms. Credit unions offer PALs up to $2,000 and a maximum 28.00% APR, with one- to 12-month repayment terms.

•   Home equity line of credit (HELOC): A HELOC is a type of loan where you borrow against your home’s equity. Your home serves as collateral, which means the bank could seize your home if you don’t repay your loan. You can think of a HELOC as similar to a credit card. After your lender approves the amount you can borrow, you have a certain amount of time to withdraw up to the limit within the draw period. When the draw period ends (say, after 10 years), you’ll enter a repayment period, such as 10 or 20 years. HELOCs typically have much lower interest rates than payday loans.

•   Friend and family loans: Consider asking family and friends for a loan, but remember that not repaying a loan to family or friends can have lasting effects on your relationship.

•   Credit card cash advance: Cash advances are short-term loans that allow you to access money from the financial institution that backs your credit card. You can borrow money against your line of credit, though it’s important to check the fees and APR. A credit card cash advance is usually an expensive option.

•   Employer paycheck advances: Your employer may offer paycheck or payroll advances up to a limit, typically $1,000. You pay the loan back to your employer through future earned wages. Learn more about the repayment terms and details about the payment advance before you go that route.

•   Peer-to-peer loans: Peer-to-peer loans take a crowdfunding approach to borrowing money. Money comes from individual private investors instead of institutions, typically in the form of unsecured personal loans, but note that due to the nature of these loans, the government doesn’t provide insurance for them.

•   Second job or side hustle: A side hustle or second job can bring in more cash, if you have the time and resources to devote to it. This income stream could help you avoid taking out a payday loan.

Improving Financial Literacy

One of the best ways to improve your understanding and management of your money is to learn as much as you can about it. Developing financial literacy can help you make informed decisions about how to save money for emergencies, avoid debt, spend and budget wisely, and more. This, in turn, can help you sidestep payday loans.

The Takeaway

If you’ve taken out payday loans, you may wonder if consolidating payday loans makes sense. Taking out a single personal loan can help you replace multiple high-interest loans with a single, lower-interest one. This can allow you to reduce the amount of interest you’ll pay over time and take better control of your finances. Other types of loans may also be available to help you avoid payday loans. Educate yourself about all of your options so you can choose the best path forward.

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

Can I consolidate payday loans with bad credit?

You may be able to get a payday consolidation loan with bad credit, but the interest rate may be higher than what you’d find with a higher credit score. Check with lenders to see whether you qualify for payday loan consolidation and at what interest rate.

What happens if I miss payments on a consolidated loan?

When you opt for a payday loan consolidation, your responsibility is to repay your loans. If you miss payments on a loan consolidation, you will likely incur late fees and could face a negative impact on your credit score. Keep making on-time, regular payments so your credit score doesn’t take a dip.

How long does payday loan consolidation take?

You can typically receive a personal loan fairly quickly, and the repayment term is usually between one and seven years.

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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 .

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

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.

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When you’re facing $100,000 in student loan debt, you may wonder if you’ll ever be able to pay it all off. To make it even more daunting, you’re probably facing tens of thousands of dollars in interest charges.

Fortunately, there are a number of strategies to make your payments manageable and more affordable. Learn how to pay off 100K in student loans and find the repayment option that’s best for you.

Understanding Your $100,000 Student Loan Debt

According to the Education Data Initiative, 8% of borrowers owe more than $100,000 in student loan debt. As the interest continues to build on the loan, you’ll owe even more than $100,000 over time. That’s what makes living with student loan debt so challenging.

For example, if you have a $100,000 loan balance with a 7% interest rate and a 10-year repayment term, you’ll owe $39,330 in interest payments over the life of the loan. So your $100,000 loan becomes $139,330, with monthly payments of $1,161.

The longer you take to pay off your $100,000 in student loans, the more you’ll pay. But of course, your payments also need to fit into your budget each month, along with your rent, utilities, and other necessities.

Breaking Down Federal and Private Loans

There are key differences between federal and private student loans that can affect how you repay what you owe. Federal student loans come from the Department of Education, while private student loans are offered by private institutions like banks, credit unions, and online lenders.

Federal student loans have fixed interest rates, flexible repayment options, and federal protections and programs such as income-driven repayment plans and loan forgiveness.

Private student loans are often used to help fill the gap that federal loans, scholarships, and other financial aid doesn’t cover. These loans may have fixed or variable interest rates, and they often require a cosigner. Private student loans don’t offer the same flexible repayment options or federal programs that federal student loans do.

Check to see what kinds of loans you have. You may have federal student loans only or a combination of federal and private student loans. Knowing exactly what your loans are will help you determine the best way to tackle your debt.

Recommended: Student Loan Debt Guide

Calculating Interest and Total Repayment Costs

Once you’ve identified the kinds of student loans you have, calculate how much your total repayment cost, including interest, will be based on the loan term of your current repayment plan. With federal student loans, unless you pick another plan, you will automatically be placed on the 10-year Standard Plan.

You can check with your student loan service provider to get your total student loan costs. You can also use a student loan calculator or calculate it yourself.

To determine how much the monthly simple interest on your loan will be, you first need to calculate the daily interest on the loan. To do this, divide the loan’s interest rate by 365 and multiply that number by the principal amount. Then multiply the resulting number by the number of days in your billing cycle.

On a $100,000 loan with an interest rate of 6.00% and a repayment term of 10 years, your monthly payment would be $1,110.21, and $276.88 of that would be interest.

That adds up to $33,224.60 in interest over the life of the loan, giving you a total loan repayment cost of $133,224.60.

Creating a Budget and Repayment Plan

March 26, 2025: The SAVE Plan is no longer available after a federal court blocked its implementation in February 2025. However, applications for other income-driven repayment plans and for loan consolidation are available again. We will update this page as more information becomes available.

To start paying off $100,000 in student loans, it helps to create a budget. You might consider using a popular budgeting technique such as the 50/30/20 rule, which allocates 50% of your income toward needs (housing, utilities, bills), 30% toward wants (nonessential items like dining out and entertainment), and 20% toward savings and investments. You may decide to forgo a big chunk of the wants and direct that extra money into paying off your student loans.

Once you’ve set up a budget, evaluate your loan repayment options. The Standard Plan with its 10-year repayment term might not be the best choice for you, especially if the monthly payments are too steep. Instead, you may want to consider income-driven repayment (IDR) plans. These plans are designed for borrowers who have a high debt relative to their income.

With income-driven repayment, your monthly payment amount is based on your income and family size. Your loan term will be approximately twice as long as on the Standard Plan. However, the longer loan term means you will pay more interest over time.

Exploring Loan Consolidation and Refinancing

Student loan consolidation and refinancing are two other possible options to help manage student loan debt.

Consolidating Federal Student Loans

When you have multiple federal student loans, you can consolidate them into a new federal Direct Consolidation Loan. With this loan, you can choose more flexible loan terms, like a longer time to repay the loan. You’ll also simplify your payments. Instead of making several different loan payments, with consolidation you make just one payment.

Refinancing with Private Lenders

When you refinance your student loans, you replace your current loans with a new loan from a private lender. Ideally, you might be able to qualify for better rates and terms.

It’s possible to refinance private student loans, federal student loans, or a combination of both types. However, if you refinance your federal student loans into private loans, you’ll lose access to the federal programs and protections those loans offer, such as deferment, forbearance, forgiveness, and income-driven repayment plans.

Recommended: Private Student Loans Guide

Weighing the Pros and Cons

There are benefits and drawbacks to refinancing and consolidating your student loans. Here are the pros and cons of each option.

Pros of federal student loan consolidation:

•   Simplified payments.You’ll have a single monthly loan payment, rather than multiple payments.

•   Lower monthly payment. You might be able to get a lower monthly payment, but that means you’ll make more payments over a longer term.

•   Longer loan term. Consolidation gives you the flexibility to choose a lengthier loan term.

Cons of federal student loan consolidation:

•   Consolidation may result in more payments and interest over time if you extend your loan term.

•   With consolidation you might lose certain benefits such as interest rate discounts, principal rebates, and loan cancellation benefits.

•   A longer loan term could mean you’ll be making payments for years longer than your original term.

•   Consolidating your loans might cause you to lose credit for payments made toward income-driven repayment plan forgiveness.

Refinancing student loans also has advantages and disadvantages.

Pros of student loan refinancing:

•   You may get a lower interest rate. If you qualify for a lower interest rate, you could save money. A student loan refinancing calculator can help you determine what you might save.

•   You might qualify for better terms. You may be able to extend the length of your loan, which could lower your monthly payment.

•   Simplified payments. With refinancing, you only have one payment each month, rather than multiple loan payments.

Cons of student loan refinancing:

•   You’ll lose federal protections and programs. When you refinance your student loans with a private lender, you lose all federal benefits and protections, including deferment and forbearance.

•   No access to income-driven repayment plans. IDR plans are another thing you give up with refinancing.

Utilizing Repayment Assistance Programs

Loan repayment assistance programs (LRAPs) are another resource that could help you manage your student debt. States, employers, and other organizations may offer these programs that can help you repay your student loans.

Do some research to find out if there are any LRAPs you might qualify for — for instance, some are offered to college grads that work in public service fields — and check with your employer to find out if they offer such a program.

Strategies for Accelerating Loan Repayment

There are several different strategies for repaying your student loans faster, which could help you save money over the long term. Here are some options to consider.

•   Start paying off your loans sooner. If possible, make student loan payments while you’re still in school or during the six-month grace period after graduation. If you can’t afford to make full payments, pay off enough to cover the interest each month and keep it from accruing.

•   Sign up for automatic payments. Making your loan payments automatic will ensure that they’re made on time, and prevent any late penalty charges. Plus, you may get an interest rate deduction for enrolling in an automatic payment program.

•   Pay a little extra each month. Paying more than the minimum on your loan can help you pay off the loan faster. It can also reduce the amount of interest you’ll pay.

•   Put any extra money toward your loans. Use a windfall, a tax refund, or birthday money from family members to help pay off your student loan.

•   Consider student loan refinancing. With refinancing you may be able to qualify for a lower interest rate or a shorter loan term.

The Takeaway

A student loan debt of $100,000 might seem daunting, but there are ways to repay your loans that might also save you money or allow you to pay off your loans faster. Options include income-driven repayment plans, putting additional money toward your loan payments each month, loan consolidation, or student loan refinancing. Weigh the pros and cons of the different options to decide which one is best 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

How long will it take to pay off 100K in student loans?

The length of time it will take to pay off $100K in student loans depends on a variety of factors, including the repayment plan you choose and whether or not you regularly make extra payments toward your student loans each month. For instance, if you’re on the Standard Repayment plan for federal student loans and you don’t make additional payments on your loans, it will typically take you 10 years to pay off your loans. If you opt for an income-driven repayment plan, your loan repayment term will generally be 20 years or longer.

Can I settle student loan debt for less than I owe?

It’s difficult to settle student loan debt for less than you owe. However, if you find yourself in very dire circumstances and your loans are in default, you may be able to get a student loan settlement. That means you pay off your student loans for less than you owe typically in one lump sum, depending on the settlement terms. Your lender must be willing to work with you in order to qualify for a student loan settlement. Check with your loan servicer for more information.

What happens if I can’t make my student loan payments?

If you can’t make your student loan payments, reach out to your lender or loan servicer right away to let them know you’re struggling. They will explain the options you have, which might include income-driven repayment plans, forbearance, or deferment. It’s important to reach out to the lender or loan servicer immediately because if you miss payments, they may report the missed payments to the credit reporting agencies, which can hurt your credit.

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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 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.

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.

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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