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Personal loans are typically not considered to be income and are therefore not taxed by the Internal Revenue Service, or IRS.

Personal loans can be a useful, flexible source of a lump sum of cash to put towards everything from a major medical bill to a home renovation project to a summer vacation. But you may wonder whether that cash infusion is considered income and therefore subject to taxes.

Fortunately, a personal loan is usually not considered income, though there are some exceptions that could impact borrowers during tax season. Here’s a closer look.

Does a Personal Loan Count as Income?

If you take out a personal loan, you may treat the funds the same as you would your paycheck. But as far as the IRS is concerned, any kind of formal loan from a bank or lender with terms that require repayment is considered a debt and is therefore typically not considered income. This distinction is important because it means you may not have to pay taxes on money you receive from a personal loan.

However, there may be tax implications on informal loans from friends and family. For instance, loans above a certain amount must charge interest, which could potentially trigger some tax consequences. Before you enter into any agreement with a loved one, it’s a smart move to consult with an accountant.

Recommended: How to Pay Less Taxes: 9 Simple Steps

When Is a Personal Loan Considered Income?

While personal loans are generally not considered income and therefore taxable, there are exceptions that borrowers should know about.

If you take out a personal loan and then some or all of the loan debt is forgiven, the amount forgiven could be considered income. It might seem odd for canceled debt to be considered income, but think about it like this: Say you made an extra $5,000 from work and used it to pay off your personal loan. That $5,000 would be considered income, and your loan would be paid off.

However, if you made no extra money but your $5,000 loan was canceled, then you would be in the same financial position in the end. So the IRS considers that forgiven loan debt taxable income.

Once a formal debt is forgiven or canceled, you should receive a Form 1099-C from the lender. According to the IRS, the amount of the canceled debt is taxable and must be reported on your tax return for the year.

There are some exceptions, such as certain qualifying student loan cancellations or personal loans canceled as part of bankruptcy hearings. And that’s where professional tax guidance might come in handy. Another important point to know is that the interest on personal loans is generally not tax-deductible.

What Exactly Is a Personal Loan?

As you’re exploring your options, it helps to understand what a personal loan is and how it works. A personal loan is one of many types of loans offered by banks, credit unions, and online lenders. Personal loans typically range from $1,000 to $100,000, depending on the lender. There are both secured and unsecured personal loans. A secured personal loan means there is some sort of collateral to back the loan.

With an unsecured loan, there is no collateral. Generally, personal loans are unsecured. The terms of the loan—including things like interest rates, origination fees, and repayment schedules—are typically based on an applicant’s financial history, income, debt, and credit score. Because these types of loans aren’t tied to an asset, their interest rates can be higher than secured personal loans but are usually lower than credit cards or payday loans.

Exact eligibility requirements will vary by lender. The loans are then typically paid back with interest in monthly payments over a set schedule; typical repayment terms are extended over anywhere from 12 to 84 months.

Unlike a business loan or a home loan, the uses of an unsecured personal loan include a range of personal expenses, from home renovations to medical bills to consolidating credit card debt.

Applying for a Personal Loan

If you’re thinking about a personal loan, consider starting with this checklist:

•   Determine how much money you need.

•   Explore all your financial options.

•   Research various loans and lenders.

•   Choose the type of loan you want.

•   Compare interest rates.

If you decide a personal loan is right for you, the application process is relatively straightforward. You may be asked to submit paperwork, like a photo ID, proof of address, and proof of employment or income. Many lenders offer applicants the option to see if they prequalify for a loan, which can give them an idea of the rates and terms available to them.

If you’re planning to use a personal loan to pay off existing debt, you could also use a personal loan calculator to compare payments and rates to see if an unsecured personal loan could potentially help you save money.

Recommended: Preapproval vs. Prequalify: What’s the Difference?

The Takeaway

A personal loan can provide borrowers with funds for a variety of purposes. Generally speaking, the money isn’t taxable or considered to be income. However, there are some exceptions. For instance, if you take out a personal loan, and some or all of the balance is forgiven, the canceled debt could be considered income.

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

FAQ

Do I report a personal loan as income on taxes?

No, a personal loan usually isn’t considered income as it is a loan that you repay with interest. Even if you receive the funds as a lump sum, it is still debt that you are repaying. However, if your loan is forgiven, you may owe taxes.

Is a personal loan tax-free?

Yes, personal loans are typically tax-free. They are not a form of income but a kind of debt that you repay with interest.

Does a loan from a family member count as income on taxes?

As long as it is properly structured and treated as a loan vs. a gift, a loan from a family member does not count as taxable income.

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.

SOPL-Q225-070

Whether you’re refreshing a single room or outfitting an entirely new home, furnishing a space can be an exciting creative process. It’s the chance to bring your vision to life, curate your style, and find pieces that truly reflect who you are.

But let’s be real: furniture can be pricey these days. The good news? Affordable doesn’t have to mean cheap-looking. With the right strategies, you can score stylish, quality pieces without draining your wallet — or settling for the dreaded “first apartment” look.

Here are 25 savvy tips to help you furnish your space for less — and sometimes even for free.

25 Tips on How to Get Cheap Furniture

Scoring great furnishings on a tight budget takes some planning, and also knowing where to buy affordable furniture. These ideas can help you create a great space without spending a lot.

1. Taking Stock of What You Already Have

Before going out to buy new stuff, you may want to do a walk-through of your space and make a list of what you already have. You can label each item “keep,” “donate/sell” or “toss,” so you know exactly what you need.

2. Taking Stock of Mom’s Basement Too

Do you have family members who may be harboring some perfectly good but no-longer-needed furniture? Consider scoping out their basements, attics, and garages for some free treasures.

3. Making a Wishlist

It’s okay to dream a little. In fact, a good way to start furnishing a new home is to go to your favorite furniture store’s site and fill your cart without considering price. You can then cull down your list to essentials, and start looking for those pieces (or something similar) for a cheaper price tag.

4. Renting Furniture

If your furniture budget is super tight, you may want to consider renting furniture from a company like CORT rather than buying everything you need. Renting can also be a good option if you’re only going to be in your current home for a short time.

5. Timing Your Purchases Right

Knowing when to make big purchases can help you get some steep furniture discounts. Furniture stores tend to get new inventory at the end of winter and end of summer. To make room for newer items, they will often run good sales in January/February and July/August.

When it comes to furnishing your porch or patio, the right time to buy furniture is typically the end of summer and early fall, when retailers are trying to clear out any leftover inventory.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

6. Checking Out Freecycle

Cheap is great, but free can be even better. Consider going to a reuse/recycle site like Freecycle.org to see what people in your area may be looking to get rid of. Keep in mind that good items often go fast.

7. Curbing Impulse Buys

It’s easy to fall madly in love with a cool sectional sofa and give in to an impulse buying that can leave you with major debt. Before you pull the trigger on a pricey new piece of furniture, you may want to press pause. By giving yourself a week or so to really consider the purchase, you may realize you don’t actually need it. Or you may be able to scout out a cheaper but equally good option.

Recommended: How to Combat Impulsive Spending

8. Mixing High and Low

Here’s another way to buy furniture cheap: You can often get a high-end look by splurging on one or two classic investment pieces and then going with cheaper, trendier accent pieces and accessories.

9. Putting the Word Out on Social Media

You may want to use social media to let people in your network know that you are on the hunt for furniture. You can even specify what you’re looking for (dining table, a chaise for the yard) and what you’re willing to offer (or barter) in return. You may be surprised at the response you get.

10. Selling Stuff You Don’t Need

To bolster your furniture budget, consider selling pieces that no longer work for your space. If you have a lot to get rid of, you might host a garage sale. For just a few items, you can list them on a resale site like Craigslist, OfferUp, or Facebook Marketplace and see how much you can score.

11. Doing a Furniture Image Search

If you see a piece you love but it doesn’t fit your budget, download a photo of the item and then go to Google Images. If you click on the “Search By Image” button (the camera icon) and upload the photo, you can search for similar items. You might find the item’s twin at a better price.

12. Searching Craigslist

Craigslist may be an oldie, but it can still be a goodie when it comes to finding affordable furniture. You can head to the site (which hasn’t changed much over the years), click the furniture tab, and search the possibilities.

13. Thinking Beyond Furniture Stores

Mass market retailers like Target, Walmart, and Home Depot actually have large furniture departments. You may be able to find stylish pieces at good prices, along with free delivery.

💡 Quick Tip: Want a simple way to save more everyday? When you turn on Roundups, all of your debit card purchases are automatically rounded up to the next dollar and deposited into your online savings account.

14. Searching Amazon Warehouse

How else to buy furniture cheap? Check out Amazon Resale, a corner of Amazon’s main site that is dedicated to selling used, pre-owned, and open-box products (often things that were returned unused or close to it). You can click on the furniture tab and either search for your needs or just see what’s available.

15. Hitting the Yard Sales

You can spend a Saturday or Sunday morning driving around town looking for treasures. Or you can check out yard sale listings online, then map out a route that hits the yards or stoops with the most potential.

16. Asking About the Floor Model

If there’s a piece in a store you absolutely love but it’s a bit out of budget, you can always ask the manager if they will sell you the floor model for a discount.

Recommended: The Secret to Never Paying Full Price

17. Combing Flea Markets

It can take a little time and effort, but you can often find great, affordable treasures at flea markets. Sometimes a little DIY is all it takes to transform something past its prime into the perfect thing for your place.

18. Browsing Antique Stores

In the winter months, you can often get the flea market experience by combing through antique stores or, even better, antique malls that have multiple booths housed indoors.

19. Checking Online Resale Marketplaces

Sites like OfferUp and Facebook Marketplace (where you may have listed items to sell) can also be a great resource for finding what you need. You can even do a search for a specific item you saw in store to see if anyone is offloading that same piece.

20. Thrifting Furniture

Large thrift store chains like Goodwill and Salvation Army typically get lots of donated items every day and can be a great place to find your next book shelf or coffee table. Local thrift shops can be worth checking out too.

21. Checking Out Salvage Stores

One of the most widely known salvage stores, Habitat ReStore, has locations throughout the country and often sells new and used furnishings, as well as appliances, for far less than retail. Bonus: They are helping to divert those goods from the waste stream.

22. Going Cheap on Art and Accessories

Once you’ve made your big item purchases, it’s time to think small (and cheap) with accent pillows, throws, artwork, and other decorative accessories. These items don’t need to cost a lot to add serious personal style to a space. You may fall for a $150 throw pillow but, odds are, you could find a super cute one for a fraction of the cost.

23. Stopping by Estate Sales

You can often find beautiful, high-quality pieces of furniture, as well as artwork, at estate sales for a fraction of what you’d pay at a store. You can find estate sale listings in your area on Craigslist as well as Estatesale.com and Estatesales.net.

24. Haggling Over the Price

No matter where you are shopping for furniture, it can be worth trying to bargain the price down a bit. You can ask a seller if the listed price is as low as they can go, if they will offer a discount for buying multiple items, or if there is any wiggle room on the delivery fee.

25. Checking In With Neighbors

You can use Nextdoor, the neighborhood online hub, to let neighbors know what you are looking for and also scroll through the site’s “For Sale and Free” listings to see what your neighbors are selling or giving away.

What Contributes to High or Low Furniture Prices?

Here are some factors that contribute to whether a piece of furniture has a high or low price:

•   Production: Mass-produced pieces are likely to be less expensive than a piece that is made in smaller batches or handcrafted by an artisan.

•   Supply and demand: An item that is popular is likely to be pricier than something that has fallen out of favor.

•   Materials: A solid wood piece, for example, is probably going to cost more than a similar item made of particleboard.

•   Supply chain: If a manufacturer is using, say, a material that is scarce due to supply chain issues, they may have to pay more to obtain it. Those additional charges could be passed along to the consumer.

•   Source: Depending on trade conditions, labor, shipping, and other factors, there could be a price discrepancy based on whether the item was manufactured in the U.S. or elsewhere.

What to Look Out for in Secondhand Furniture

Secondhand furniture can be a great resource when you are buying furniture on a budget. Btw, you can even shop for used furniture online at sites like AptDeco and Kaiyo.

Here, some buying furniture tips when you’re hunting for preloved treasures:

•   Just say no to used mattresses: They can be a repository of stains, smells, dust mites, bedbugs, and more.

•   Inspect for structural damage: Cracks, duct tape, and evidence of past repairs can spell trouble.

•   Avoid upholstered furniture with an odor: Whether mildew, smoke, or pet smells, these smells can be very hard to eliminate.

•   Be wary of painted pieces that might have lead paint: This could include items that were made before 1978, when laws were passed banning lead paint. Crackly, “alligator skin” painted surfaces can indicate lead paint. Also, if you rub your hand over the surface and get a chalky residue, it might be lead.

•   Check for signs of mold: It can look like a patch of dirt that won’t rub away. That’s another health issue you don’t want to deal with.

With these warnings in mind, you could get a real deal by buying secondhand, especially if you use your imagination. Often, with the addition of a coat of paint and new hardware or a slipcover, tired pieces can turn into treasures. Look online for how-to ideas.

The Takeaway

Furnishing a new place can be daunting, especially if you’re shopping on a budget. But by thinking beyond traditional furniture stores and turning to alternatives like flea markets, resale and salvage shops, estate sales, and online marketplaces, you can often score chic and cheap pieces that won’t fall apart in a year or two.

You can also stretch your furniture budget by mixing higher-end investment pieces with cheaper accent decor and sprucing up secondhand finds.

Another way to cut furniture costs is to save up for your purchases in advance. Credit cards and store financing often come with high interest rates, which can significantly increase the overall cost of furnishing your home. Building a furniture fund in advance and paying cash eliminates these added fees.

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

FAQ

How do you buy furniture on a budget?

You can buy furniture on a budget by shopping at estate sales, garage sales, thrift shops, and antique malls, as well as hunting at your usual retailers for floor models and other sale items. Also see what you might be able to score for free via a neighborhood online community or Freecycle.

Is it cheaper to buy furniture in-store or online?

It depends. Online retailers often offer lower prices due to reduced overhead costs and high sales volume. However, brick-and-mortar stores often offer bundled deals, local discounts, or free delivery. In-store shopping also allows you to inspect quality firsthand, possibly saving on return costs or buyer’s remorse. Overall, online can be cheaper, but savvy in-store shopping might offer better value and fewer risks.

What is the cheapest month to buy furniture?

It depends what you’re in the market for. If you’re looking for deals on indoor furniture, consider shopping in February. This is near the end of retail’s winter season, when stores generally try to get rid of inventory to make room for spring lines. If you’re shopping for outdoor furniture, August is often the cheapest month to shop. This is when many retailers are eager to get rid of summer items in order to make space for income merchandise.

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

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

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

SOBNK-Q225-063

You may not think about a door’s looks and functionality until something goes awry, like a crack or dent appearing or paint flaking off. Then, you realize what an important element of your living space doors can be, providing interior details as well as privacy and soundproofing. If you need to replace a door, either because it’s dated or damaged, you’ll likely have to spend at least a couple hundred dollars for a basic model. Some options, like a custom wood French door with frosted glass, could cost thousands.

Read on to learn more about the process and price of updating your interior doors.

What Are the Different Types of Interior Doors?

Interior doors come in many styles and price points. Here’s a look at some of the most popular options, plus current estimated costs (including materials, labor, and equipment) pulled from Angi and HomeGuide.

•   Traditional Standard doors, such as a bedroom door, swing in or out to open and close. This type of door can be either hollow core, solid composite, or solid wood.

   Cost to replace: $50 to $600.

•   Pocket These space-saving doors slide into the wall when they’re open. Pocket doors hang from the top and slide along a track mounted in a space inside the wall and across the top of the door opening.

•   French The door with a certain je ne sais quoi, French doors can be either single or paired, and can have either a full (single) glass pane or a number of divided panes. French doors are often used as exterior doors to porches or patios, but they can also be a great way to let light diffuse inside a home.

   Cost to replace: $200 to $4,000

•   Sliding A cousin to the pocket door, sliding doors save space by sliding in tracks at the top and bottom of the door frame. Unlike a pocket door, however, they don’t disappear into the wall. Glass sliding doors are typically used as exterior doors to a patio or deck, but can be used indoors to separate rooms while maintaining visibility between them.

   Cost to replace: $400 to $4,500

•   Bifold Also called folding doors or concertina doors, bifolds are made of panels that fold next to each other when opened, sliding on tracks both on top of and below the door. Single bifold doors are sometimes used as doors to your home’s closets, and a pair of bifold doors might divide a large room.

   Cost to replace: $35 to $70

•   Barn A sliding barn door in the home takes rustic farmhouse trends to the next level. These doors slide on a track mounted on the wall above the door. Barn doors have a low profile, as they do not swing out.

   Cost to replace: $150 to $4,000

•   Saloon Head straight to the wild west with these doors. Sometimes called cafe doors, saloon doors hang on a pivot hinge, meaning they can easily swing in and out with a nudge. Because they swing in both directions, they’re commonly used as kitchen doors or in cafes where traffic goes both in and out.

   Cost to replace: $100 to $500

•   Murphy You may have encountered a Murphy door before without even knowing it. Often custom made, Murphy doors are typically bookcases that swing out, turning a door into storage space.

   Cost to replace: $700 to $2,500

Recommended: How Do Home Improvement Loans Work?

Signs You May Need New Interior Doors

Interior doors in a home can take quite a beating. They’re slammed and scuffed. Paint can flake and chip; doorknobs and hinges can give out. Depending on their quality and age, there’s a chance your doors may simply have seen better days.

If these signs sound familiar, it may be time to buy some new doors for your home:

1.    The door is stuck and has trouble staying open or closed. The more someone struggles to open and close a door that doesn’t budge, the more damage they’ll do. If a door’s always sticking or never manages to stay closed, it may be time to replace it.

2.    The door is warped or cracked. Age will affect the quality of any door, and if the frame or hinges are visibly cracked or peeling, it’s time to think about replacing them.

3.    The door’s style is dated. If your kitchen’s classic saloon-style doors feel decidedly old school — not in a good way — it might be time to consider replacing them. Even if they still work, dated styles can negatively impact a home’s value at the time of sale.

Depending on the style of door and the complexity of the installation, swapping out an interior door can cost anywhere between $150 to $2,600. A good portion of the cost is professional labor.

While hanging a door might sound simple, doing it wrong can lead to improper closure or a door that just won’t close at all, which leaves you back at the drawing board. It could be worth asking for estimates from a few professional contractors if you decide to replace several interior doors at once.

A door can make an impression — good or bad — when someone enters a room. That first impression might become very important when considering home value. This kind of home improvement project could pay off when you eventually sell your home.

Recommended: Tips for Maintaining the Value of Your Home

DIY Ways to Update Your Interior Doors

Replacing interior doors altogether can be expensive and is not always necessary. If your door is in good shape, an inexpensive DIY can update your interior doors to look more modern or trendy.

Here are some interior door upgrades you might consider before ditching a door altogether.

•   Swapping out door knobs and hardware Sometimes dated brass or an ornate finish might make a standard swing door feel out of place. For between $75 and $150, you can update a door’s knobs and hinges.

•   Trying a new hue A fresh coat of paint might transform a door’s entire vibe. Instead of a standard white, you might opt for a neutral shade, make a statement with a black door, or choose a rich, deep tone that complements other colors in your home. You can even switch things up by painting the frame and the door different colors. Although you have to remove the door from its frame, this project is DIYable and can typically be done within a day or two.

•   Updating hollow core doors Hollow core doors are the standard type of door installed in many homes when they’re built. It’s a swing door with a flat surface. These are basic doors that can be a blank slate for your personal taste. For example, you might use molding and beadboard panels to create a paneled look on standard doors. This can make a builder-grade, hollow-core door look custom-made. This DIY project is a small investment for a big payoff.

If you don’t have enough cash on hand to cover the cost of upgrading your doors (or any other part of your home), you might consider using a home improvement loan for financing. This is an unsecured loan that can be used for virtually any purpose, including a home renovation or upgrade.

Once approved, you get a lump sum of cash up front you then pay back (plus interest) in monthly installments over time. For this kind of personal loan, rates are typically fixed and lower than credit cards.

Recommended: What Are the Most Common Home Repair Costs?

The Takeaway

Doors inside your home don’t just provide privacy, they’re a decorative feature of the property that can enhance its style. If your interior doors are in poor shape, replacing and updating them could help increase the value of your home, making the upgrade well worth the upfront outlay of money. Prices for this home upgrade can start at just a couple of hundred dollars and go into the thousands, depending on the details. If you need help financing this home improvement, a personal loan could be a good move.

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

FAQ

Is updating interior doors worth it?

Each homeowner’s situation is unique, but it can be worthwhile to update interior doors. It can enhance soundproofing, improve the look of your home, and add to your property value.

What interior door styles are timeless?

When it comes to timelessness, simplicity is often best. Shaker-style doors can work well, and many people like the appeal of classic French doors.

How much does it cost to update interior doors?

There’s a wide range of costs to update an interior door. The door itself could cost from a couple of hundred dollars to a couple of thousand dollars (most basic models will be between $200 and $600), and installation can add $200 to $1,800.

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.

SOPL-Q225-056

It’s estimated that close to $100 million in scholarships go unclaimed each year and $2 billion in student grants go unclaimed. Typically, the money is not awarded due to lack of applicants. This is good news for students — as those that are willing to put in the time to search for scholarships and grants should be able to find at least a few to help pay their way through college.

The beauty of scholarships and grants is that you almost never need to pay them back. Who doesn’t love gifts? But acquiring them will take at least a little effort.

Keep reading to learn more on unclaimed scholarships and grants, including where to find them, types of aid you may qualify for, and why so many scholarships go unclaimed each year.

Where to Find Unclaimed Scholarships

You don’t have to be a 4.0 student or a star athlete to receive scholarships. In fact, the average high school student is eligible for 50-100 different types of scholarships each year. But, scholarships aren’t just going to come to you. You have to be the one to put in the work to find scholarships you qualify for and apply for them.

One of the best ways to find scholarships you are eligible for is through a scholarship search. Scholarship searches are offered by a variety of companies and allow you to filter the scholarships based on your specific qualifications, including your state, area of study, background, ethnicity, and more. Scholarship searches are one of the quickest ways to find quality scholarships throughout the country.

Other ways to find unclaimed scholarships include asking your specific college or university what they offer, using the library’s recommendation section, reaching out to businesses in your field of study, speaking to your high school counselor, and asking religious organizations if they offer scholarships.

Regardless of which methods you use to find scholarships nobody applies for, the reality is they are out there waiting for students to apply for and claim them.

Recommended: Search Grants and Scholarships by State

Two Types of Aid of Financial Aid

Financial aid can be need-based or merit-based.

Need-Based Aid

Federal need-based aid is determined by the Student Aid Index, or SAI (formerly called the Expected Family Contribution, or EFC) as calculated by the Free Application for Federal Student Aid (FAFSA®).

The Pell Grant, the Department of Education’s biggest grant program, is geared toward students who demonstrate significant financial need, but the total cost of attendance at a particular college also plays a role. The maximum Pell Grant amount for the 2025-26 academic year is $7,395.

Any student who could use college financial aid has nothing to lose by filling out the FAFSA. And even if you are not eligible for federal aid, realize that most states and schools use FAFSA information to award nonfederal aid, too.

One way to find nonfederal financial aid is to fill out the CSS Profile, which determines eligibility for institutional awards and grants. The CSS Profile awards billions in nonfederal aid to college students each year and can be a great way to find unclaimed scholarships.

While scholarships and grants are ideal because they do not need to be repaid, many students may still need to explore federal loan options, such as an unsubsidized loan, to cover remaining college expenses. Unlike scholarships, loans must be repaid with interest, so it’s important to understand all your options before borrowing.

Recommended: How to Complete the FAFSA

Merit Aid

Merit scholarships are not based on financial need. They are awarded by colleges, employers, individuals, businesses, nonprofits, states, religious groups, and professional or social organizations to students who demonstrate academic or athletic achievement. While many people are aware of this, merit aid can also be based on other factors. These may include community involvement, dedication to a particular field of study, race, gender, teacher recommendations, and more.

So who is the biggest source of “free money?” Colleges, according to a recent College Board Trends in Student Aid Report. The U.S. Department of Education awards $46 billion annually in scholarships, and thanks to competition to attract students, nearly every college and university in the country offers merit-based aid in some form.

To find unclaimed scholarships, you could start by thinking about all the ways you have, well, merit — making lists of opportunities and eligibility criteria, and pursuing only the scholarships you’re best qualified for.

Why Would Any Scholarships Go Unclaimed?

So is it true there are obscure scholarships left unclaimed? There is no database that can give precise answers, but it makes sense that when specific parameters exist around a particular scholarship, fewer students will qualify.

For example, scholarships exist for North Korean refugees who are permanently living in the United States. Applicants must have been born in North Korea or the child of someone born in North Korea.

Let’s say you don’t fit those parameters. Other unusual opportunities include the following:

•   If you dazzle your friends with your ability to make prom outfits using only duct tape, then you could win a $15,000 Stuck at Prom scholarship. Seriously.

•   Or maybe you have the best plan ever to survive the zombie apocalypse. If so, you could apply for the Zombie Apocalypse Scholarship offered by Unigo ($2,000).

•   If you live in the Phoenix area and you’re a tall graduating senior, you could be interviewed and measured for the chance to gain all of $250 through the CATS Tall Club program.

While you may not qualify for any of the above-mentioned scholarships, these are just examples of how many are actually out there. You may be surprised at what you find (and what you do actually qualify for!) when conducting your search.

Recommended: Scholarship Opportunities for High School Seniors

Keeping an Eye Out for Scholarship Scams

Plenty of scholarship and grant money for college is out there waiting to be claimed. Unfortunately, though, there are also financial aid scams, including scholarships that aren’t legitimate. The Department of Education offers tips to protect yourself, including:

•   Know that you don’t need to pay to find scholarships or any other form of financial aid.

•   Check information about scholarship offers at a public library and/or online.

•   Talk to the financial aid department at your college of choice to verify legitimacy.

Also, before students begin a search, they may want to be aware of “scholarships” that are actually sweepstakes because their information may be sold to third parties.

The Takeaway

Finding unclaimed scholarships and grants is the ideal way to fund college because this money does not need to be repaid. To cover all the expenses of college, however, many students will then need to take out federal and/or private student loans.

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

FAQ

Where can students find unclaimed scholarships?

Students can discover unclaimed scholarships by using scholarship search engines, consulting with their college’s financial aid office, checking with local businesses and organizations, and reaching out to religious or community groups.

Why do some scholarships go unclaimed?

Some scholarships go unclaimed due to highly specific eligibility criteria, lack of awareness among potential applicants, or misconceptions about the application process.

How much scholarship and grant money goes unclaimed each year?

Approximately $100 million in scholarships and $2 billion in student grants go unclaimed annually, often due to a lack of applicants.

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

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

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

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If you’re a parent hoping to send your child to college someday, you’re probably well aware that higher education costs have skyrocketed over the past 10-plus years.

Tuition and fees for the 2024-25 academic year averaged $11,610 at public colleges for in-state residents, $30,780 at public colleges for out-of-state residents, and a whopping $43,350 at private colleges. And the price tag for an undergraduate degree typically goes up every year. Any way you look at it, college is a huge expense for families.

The good news, however, is there are a number of ways to make college more affordable for parents, everything from tax-advantaged college savings accounts to merit- and need-based scholarships to federal student loans.

Smart Ways to Pay for College

What follows are four key strategies that can help you cover the cost of a child’s college education — without going broke.

1. Starting Early With a Savings Plan

There are a variety of accounts to help parents save for child’s college tuition. While you can simply put money aside each month (or year) in a regular savings account, there are advantages to using a savings vehicle that is specifically designed for college savings. Here are two to consider.

529 Savings Plans

A 529 savings plan is a tax-advantaged investment account designed to help save for future education expenses. Your contributions to the account are made with post-tax dollars but, as long as the money stays in the account, no income taxes will be due on earnings. When you take money out to pay for qualified education expenses, those withdrawals may be federal income tax-free — and, in many cases, free of state tax, too.

While 529 plans used to be limited to higher education, the funds can now be used for kindergarten through grade 12, as well as certified apprenticeship programs and qualified student loan repayments.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Coverdell Education Savings Account

Like a 529, a Coverdell Education Savings Account (ESA) is a tax-advantaged account designed to help save for a child’s future education expenses. Contributions are made on an after-tax basis, but earnings aren’t taxed. When you withdraw the money and use it for qualified education expenses, the investment profits are tax-free.

However, Coverdell accounts come with income and contribution caps. Contributions are capped at $2,000 per year, and you can only make them until your child turns 18. To open and contribute to a Coverdell ESA, your income must be below a certain limit ($110,000 for single filers; $220,000 for married couples).

Coverdell ESA funds must be withdrawn when the beneficiary turns 30, or rolled over to another eligible beneficiary in the family.

2. Looking for Ways to Get Free Money

When figuring out how to pay for college, there are numerous resources available, including scholarships, grants, and other forms of financial aid. These sources of “free money” can provide significant assistance to students based on academic merit, extracurricular achievements, or financial need.

Your Free Application for Federal Student Aid (FAFSA®) will automatically match you with any federal scholarships and grants you’re eligible for, but there are other types available.

You can look for additional funding options on your own using a search engine like SoFi’s Scholarship Search Tool. You can also research various scholarships offered by corporations, foundations, and non-profit organizations related to your child’s interests and intended field of study.

In addition, your child also can check out the high school guidance department for any information, and you may want to make an appointment with a school counselor to get any tips that might help your search.

If your child has a college selected, funding information is usually available on that school’s website, as well.

Recommended: How Do You Find Non-Academic Scholarships for College?

3. Considering an After-School Job

Encouraging your child to work part-time during high school or college can contribute to funding their education and teach valuable life skills. A part-time job provides them with their own income, reducing their dependence on student loans and parental contributions.

Many colleges offer work-study programs where students can work on campus or in community service roles while earning money for their education expenses. In addition, summer jobs or internships can be an excellent way for students to save for college during their break.

4. Researching Student Loan Options

With the high cost of getting a degree these days, you may not be able to avoid taking on at least some student loan debt. You and your child may want to take some time to research and understand all the student loan options out there — both federal and private — and how they work well-ahead of senior year.

Federal Student Loans

The amount a student can borrow in federal loans will depend on their year in college, status as dependent or independent, and the type of loan or loans they take out.

Parents of dependent undergraduate students can apply for Direct PLUS Loans to help pay for education expenses that aren’t covered by other federal financial aid.

Federal student loans usually have more benefits than loans from banks or other private lenders, so be sure to compare the benefits of each private student loan program, as well as the interest rates and terms.

For example, federal loans offer deferment and forbearance along with programs like Public Service Loan Forgiveness (PSLF) and income-driven repayment plans. Private lenders don’t usually offer such perks and protections. It’s generally recommended that students exhaust all federal loan options prior to borrowing private student loans.

Private Student Loans

Private student loans are loans offered by private lenders — such as banks, credit unions, and online financial institutions — to help students pay for educational expenses not covered by federal aid. These loans typically require a credit check and may need a cosigner, especially for students without established credit.

There are, of course, pros and cons to both of those options, so it’s important to do your due diligence on the private lenders you may be considering. What benefits do they offer? What are their rates and terms? Is there any fine print?

If your child doesn’t qualify for enough federal student aid to cover the cost of attending college, private student loans may be a viable option to look into to close the gap.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

The Takeaway

There’s no one-size-fits-all way to pay for college. Students and their families may end up using a blend of savings, scholarships, grants, work-study, and different types of student loans to finance their education.

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

FAQ

What are 529 savings plans and how can they help with college expenses?

A 529 savings plan is a tax-advantaged investment account designed to help save for future education expenses. Contributions are made with after-tax dollars, but earnings grow tax-free, and withdrawals for qualified education expenses are also tax-free. Funds can be used for K–12 tuition, certified apprenticeship programs, and student loan repayments.

What types of financial aid are considered “free money” for college?

Scholarships and grants are forms of financial aid that don’t need to be repaid. They can be awarded based on academic merit, extracurricular achievements, or financial need. Completing the Free Application for Federal Student Aid (FAFSA) is essential to access federal scholarships and grants.

When might private student loans be a suitable option for covering college costs?

Private student loans can help fill funding gaps after exhausting federal aid options. They are offered by banks, credit unions, and online lenders, and terms vary based on creditworthiness. It’s important to compare interest rates, repayment terms, and borrower protections before choosing a private loan.

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

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

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

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