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Paying for college can be daunting, but there’s good news: Plenty of “free money” is available to help cover the costs. Unlike loans, scholarships and grants don’t require repayment, making them a valuable resource for students looking to reduce debt.

By exploring these options, students can significantly offset tuition expenses and make their college dreams more affordable.

Free Money for College‽

Students can find free money for college through scholarships and grants. Both are gifts that do not need to be repaid, and they reduce the need to take out student loans.

According to the Education Data Initiative, average federal student loan debt based on degree is as follows:

•   $19,270 for associate degree holders

•   $26,190 for bachelor’s degree holders

•   $106,850 for graduate degree holders

To bring these numbers down, students can apply for grants and scholarships, federal work-study, or work a part-time job to help pay for some of their college expenses.

What Are Scholarships?

Scholarships are financial awards designed to help students pay for their education. Unlike loans, scholarships don’t require repayment, making them a valuable form of “free money.” They are typically awarded based on specific criteria and can come from schools, private organizations, nonprofits, or government programs.

Merit-based scholarships reward students for their achievements in academics, athletics, leadership, or other areas of excellence. These awards often require maintaining certain standards, such as a high GPA.

Need-based scholarships, on the other hand, focus on financial need, aiming to assist students from low-income families in accessing higher education opportunities without excessive debt.

Recommended: What Types of Scholarships Are There?

What Are Grants?

Grants are a form of financial aid provided to students to help cover educational expenses, such as tuition, fees, and books. Like scholarships, grants do not need to be repaid, making them a valuable resource for funding education.

Grants are often awarded based on financial need, with eligibility determined through applications like the Free Application for Federal Student Aid (FAFSA®). Common sources of grants include federal and state governments, colleges, and private organizations.

Examples include the Federal Pell Grant, which supports low-income students, and specialized grants for specific fields of study or demographics. Grants make higher education more accessible and affordable.

How Much Does Free Money for College Help?

Scholarships and grants can make a big difference in lightening the college debt load. Below is a chart on how families pay for college.

Finding Scholarships and Grants

With federal and institutional grants, you are automatically considered for need-based financial aid when you submit the FAFSA.

Finding private scholarships can take more time and effort, though. Ideally, students should start looking for scholarships the summer after their junior year of high school.

Researching Scholarships

Here are ideas to look for scholarships:

•   Consider using a database like Scholarships.com that lets you create a profile with all of your information, which could help you match with scholarships and grants.

•   Use the Department of Labor’s CareerOneStop site to sort more than 9,500 opportunities for financial aid.

•   Use SoFi’s Scholarship Search Tool.

•   Ask college financial aid offices about their scholarship availability and process.

•   See if your employer or your parents’ employers offer college aid.

•   Look for scholarships offered by foundations, religious or civic groups, local businesses, and organizations related to your field of interest.

You don’t have to be a scholar or standout athlete to get a scholarship. Students may have success finding non-academic scholarships for their heritage, interests, or area of study.

Finding those private scholarships and completing the essay and application will take time, however.

Recommended: Search Grants and Scholarships by State

Researching Grants

Researching grants for college requires proactive effort and the use of multiple resources. Follow these steps to find the right opportunities:

•   Complete the FAFSA, as this determines eligibility for federal and state grants, such as the Pell Grant.

•   Check with your college’s financial aid office for institutional grants.

•   Explore websites like Grants.gov or Fastweb for a comprehensive list of grants.

•   Look for grants offered by private organizations, nonprofits, and community groups

Grants are typically awarded in a federal financial aid package. In addition to federal grants, schools may award institutional grants.

Other Options to Help Pay for College

There are many ways to pay for school, and students and their parents may use a combination of methods to cover the cost of attendance, an estimate of the total cost of attending a particular college for one year.

Student Loans

Roughly 70% of college students leave school with debt due to the expense of tuition and fees, room and board, books, and living expenses.

When it comes to private vs. federal student loans, it’s best to use federal student loans first, as they come with borrower protections and benefits that private loans do not offer.

One type of federal student loan is a Direct Subsidized Loan. The government pays the interest on those loans as long as the student is enrolled at least half-time. The interest is also covered for six months after the student leaves school, graduates, or enters a period of deferment.

Not all students or parents will be able to rely solely on federal aid to cover all their bases, though, and that’s where a private student loan could come in handy.

Private student loans don’t come with all the borrower protections and programs that federal student loans do, but they can be used to cover any remaining school-certified costs, here or abroad, from transportation to books and lodging.

Federal Work-Study

The federal work-study program allows students to earn money that can be used to pay day-to-day expenses. Students who demonstrate financial need may be eligible for jobs on or off campus.

Not all colleges participate in the program, so it’s best to speak with your specific college if federal work-study is something you’re interested in.

Does a Student Ever Have to Repay a Grant?

You might have to repay all or part of a federal grant if:

•   You withdrew early from the program for which the grant was given to you.

•   Your enrollment status changed. If, for example, you switch from full-time to part-time enrollment, your grant amount will be reduced.

•   You received outside scholarships or grants that reduced your need for federal student aid.

•   You received a TEACH Grant, but you did not meet the service obligation. In that case, the grant could be converted to Direct Unsubsidized Loans.

If you don’t meet the expectations of a scholarship, such as GPA or credit-hour minimums, you could lose the gift and have to pay out of pocket.

When it comes to sports, the head coach decides whether an athletic scholarship will be renewed. Injury or poor academics can sack an athletic scholarship.

Recommended: FAFSA Tips and Mistakes to Avoid

The Takeaway

Students can get free money for college through grants and scholarships. Grants and scholarships are worth seeking out because they reduce the need to take out student loans. But if you still need to borrow, you can rely on federal student loans, followed by private student loans.

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

FAQ

What is “free money” for college, and why is it important?

“Free money” for college refers to financial aid like scholarships and grants that do not need to be repaid. It’s important because it helps reduce the cost of education, minimizing the reliance on student loans and lowering the financial burden on students and families.

How can students find scholarships and grants?

Students can find scholarships and grants by completing the FAFSA, consulting their school’s financial aid office, using online scholarship search tools, and exploring opportunities from private organizations, nonprofits, and government programs tailored to their qualifications or financial needs.

What are the key differences between scholarships and grants?

Scholarships are often merit-based, awarded for achievements in academics, athletics, or other areas, while grants are primarily need-based, focusing on financial circumstances. Both provide non-repayable funds to help cover educational expenses.

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

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

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

SOISL-Q424-059

Pursuing a college degree can put you on a path to the career of your dreams. But the price tag of tuition, housing, and textbooks can be pretty steep. And if you’re a parent or caregiver, you’re faced with an added obstacle: “How can I afford child care while I’m in school?”

Fortunately, there are a bevy of options out there for adult students with children. On-campus daycares, grants, scholarships, and federal and private student loans can all help alleviate the cost of child care. You don’t have to let the challenge of going to college with kids stop you from reaching your goals.

Keep reading to learn more on how to pay for child care while in school, including childcare assistance programs, free daycare for low-income families, and more.

Paying for Daycare as a Student

One of the biggest financial struggles working parents face is paying for daycare. In 2022, American households spent close to $11,000 annually for child care costs, according to Child Care Aware of America. If you’re a parent returning to college, you may have the extra burden of tuition, housing, and textbooks. You may also have to scale back your job hours to accommodate your schedule.

But child care is essential for adult students. Someone has to look after your little one while you attend class. Even if your school is 100% online, you’ll need uninterrupted time to study, write papers, and answer discussion questions.

Let’s take a look at some avenues of financial support, so you can focus on getting your degree while caring for your family.

Tips to Help Pay for Child Care as a Student

The decision to return to college may not have been in the budget when you financially planned for a family. And with the cost of child care being more than some tuition, the prospect of going back to college with kids can be daunting. Take solace in the fact that you are not alone.

Fortunately, there are resources to help you. Many higher education institutions provide child care grants and subsidies. You can also turn to federal student aid, private student loans, and scholarships to help get you that degree and daycare for your children.

Financial Aid

Student financial aid provides funding used to cover the costs of higher education. It can come in the form of student loans, either from federal or state governments. Scholarships and grants are another fantastic way to help ease your financial anxiety.

To apply for federal financial aid, including scholarships, grants, and federal student loans, students will need to fill out the FAFSA® (Free Application for Federal Student Aid). This form will determine how much financial aid you qualify for. It’s also prudent to contact your school financial aid office directly. Talk to them about how they can help you factor child care into the cost of your attendance.

Private Scholarships

Because a private college scholarship doesn’t generally need to be repaid, it can be thought of as free money awarded to pay for school. They are typically based on financial need or merit — grades, test scores, or talent — and (good news!) there are also scholarships available specifically for students with dependent children.

You can find more information on scholarships and how to use them toward child care from government resources, a college financial aid office, or a high school counselor. Be sure and pay attention to scholarship submission deadlines so you don’t miss out on funds.

Recommended: What a Merit Scholarship Is & How to Get One

Federal Student Loans and Grants

Many students seek financial aid for college through federal student loans. Federal loans typically have low, fixed interest rates and don’t require a cosigner or a credit check. You don’t have to worry about repayment until after college. These student loan funds are used for tuition, housing, computers, and textbooks, but it’s also possible to put them toward child care. Reach out to your school to ask if they can factor in child care costs to the price of attendance.

A Federal Pell Grant is awarded by the government to students from low-income households, based solely on financial need. While a Pell Grant won’t guarantee you free child care, the expense of having a child reflects directly on your income, which can consequently raise the amount of funds you may be eligible to receive. That money could help pay for daycare. Like scholarships, grants also do not usually have to be repaid.

Private Student Loans

When scholarships, grants, and federal financial aid aren’t enough, you can turn to private student loans to help cover the cost of daycare. These loans are issued by online lenders, banks, and credit unions. The lender will check your financial history and credit score to calculate the amount you qualify for. If you have limited job experience or your credit score isn’t the greatest, a cosigner can pledge responsibility for your loan.

With private student loans, you can typically borrow up to the cost of tuition and other qualified educational expenses. Unlike federal loans with strict deadlines, you can apply for a private student loan at any time during the year.

Keep in mind that private loans tend to have higher interest rates, and some may require payment while you’re still attending college. Additionally, private student loans aren’t required to offer the same benefits or protections that are available to federal student loan borrowers. For this reason, they are generally borrowed only after all other financing options have been thoroughly considered.

Recommended: Private Student Loans vs Federal Student Loans

Seek Out Lower Cost Daycare

Once you’ve secured funding, the next step is to find affordable daycare so you can stretch your monetary aid to the fullest.

In 2018, Congress tripled what’s called CCAMPIS — Child Care Access Means Parents in School. CCAMPIS awards funds to educational institutions to help make child care affordable for low-income students. Contact your school to see if they’ve received such funds and have child care services available.

You can also investigate child care assistance programs, such as Child Care Aware of America. The organization provides tools to search for lower-cost child care facilities near your school.

Tax Credits

Several tax credits can help offset the cost of child care while in college, including:

1.    Child and Dependent Care Credit: Offers up to 35% of qualifying childcare expenses for children under 13, based on your income.

2.    Earned Income Tax Credit (EITC): Provides financial support for low-to-moderate-income families with qualifying children.

3.    American Opportunity Tax Credit (AOTC): While focused on education expenses, it indirectly helps if child care allows you to pursue studies.

4.    Lifetime Learning Credit (LLC): Similar to the AOTC, it can free up funds for child care by offsetting tuition costs.

Consult a tax professional for specific eligibility.

Schools with Child Care Resources

Many schools, including both community colleges and universities, have low-cost child care facilities on campus for undergrad and graduate students. These supportive centers not only offer developmental programs for your child, but are also tailored to the needs of student parents, with extended hours in the evening and weekends. Spots can go fast, though, so be sure and inquire about program availability as soon as possible.

Some colleges offer child care subsidies to adult students in the form of daycare grants, a taxable subsidy. Whether you have a newborn or a high schooler, you may meet the criteria for these funds, and many have no requirement for the money to be used solely for daycare. Daycare grants are purely to support student parents to achieve their dreams of higher education.

Remember, it takes a village to raise a child, and a college is a community. Most institutions have online student-parent support groups, where you can search for daycare services, nanny shares, and babysitting services. Valuable information can often be found on the school’s website or through student services.

The Takeaway

Being in college as a parent may seem overwhelming, especially when it comes to how to pay for child care as a student. But between federal and private student loans, grants, and scholarships, you don’t have to wait until your baby’s all grown up to get that college degree. There are loads of resources to support you, from parent groups on campus to federal financial aid packages, all of which strive to make your college journey as a parent easier.

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

FAQ

Can I use student loans to pay for child care?

Yes, student loans can be used to pay for child care as part of your cost of attendance. Many schools include child care expenses in their financial aid calculations, allowing you to allocate loan funds for this purpose. Check with your school’s financial aid office to confirm eligibility and limits.

Does FAFSA cover child care?

FAFSA does not directly cover child care, but it helps determine your eligibility for financial aid, which can include funds for child care expenses. Many schools allow you to include child care costs in your cost of attendance, potentially increasing your financial aid package to help cover these expenses.

Can I get a student loan to take care of my child?

Yes, you can use student loans to cover child care expenses as part of your cost of attendance. Many schools factor in dependent care costs when calculating financial aid, which may increase the amount you can borrow. Check with your school’s financial aid office for specific eligibility and limits.

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

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

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

Generative artificial intelligence (AI) is starting to transform industries, and the banking sector is no exception. Financial institutions are exploring ways to adopt generative AI to enhance customer experiences, combat fraud, and streamline complex, time-consuming processes. Unlike traditional AI, generative AI has the ability to generate new content and solutions based on training data, opening up exciting opportunities for innovation.

This groundbreaking technology has the potential to significantly reduce costs, boost efficiency, and redefine customer service in banking. However, the use of gen AI in banking processes also comes with risks, such as generating inaccurate information or compromising sensitive customer data. Below, we’ll explore its key use cases, benefits, and potential challenges in the banking industry.

Personalized Customer Service and Chatbots

One of the best potential use cases of generative AI in banking is in customer service, particularly 24/7 chatbots. Chatbots are nothing new, of course, but chatbots driven by generative AI are able to provide more specific, actionable insights for customers so that they don’t need to visit a branch in person or spend valuable time on the phone trying to resolve issues.

Intelligent chatbots (also known as virtual assistants) are capable of going beyond the prior generation of scripted chatbots, which are more limited in what they can help customers with before pulling in true customer service agents. Generative AI can be trained on vast quantities of data and resources, allowing it to understand and generate natural-language text while taking context into account.

However, there is also the potential that a gen AI chatbot could share inaccurate information with a customer. As a result, many financial institutions are taking a cautious approach, initially implementing AI chatbots in non-customer-facing interactions or to help customer-facing employees offer insights and support to customers.

Fraud Detection and Risk Management

Another potential use of generative AI is to improve banks’ fraud detection and prevention strategies, and better protect customer bank accounts. The technology has the ability to analyze massive data sets and thus more easily detect when something is out of the norm, which could indicate fraudulent activity. By nature, generative AI becomes more accurate over time. Thus, the more data the system is fed, the more often it can help fraud departments catch (and stop) bank fraud, including account takeover and even money laundering.

Gen AI could also be used to simulate potential cyber-attacks, which can further enhance fraud detection algorithms. This proactive approach could help improve online banking security and significantly reduce a bank’s risk of loss.

On the flipside, use of gen AI in banking also introduces new risks to data privacy and cybersecurity (further explored below), which need to be effectively evaluated and managed before banks fully embrace AI as a tool to manage security threats.

Automated Document Processing and Analysis

Banks deal with an enormous amount of paperwork, from compliance forms to contracts and legal documents. Generative AI can help automate document processing by analyzing text, extracting relevant data, and categorizing information, significantly reducing time and manual effort. For example, gen AI can quickly summarize regulatory reports, prepare drafts of pitch books, and generate financial reports. Similarly, gen AI can reduce the need for human data entry, freeing up staff to tackle higher value-added tasks.

At present, however, using gen AI in this way also introduces some risks. For example, the AI could potentially misunderstand or misinterpret important information and lead to errors in decision-making. In addition, AI systems may not always follow all the applicable laws and regulations when handling documents. As a result, many financial institutions are exploring use of AI as an aid to employees engaged in document processing and analysis.

Predictive Analytics for Financial Forecasting

Banks rely heavily on accurate forecasting to make strategic decisions, manage risk, and optimize their portfolios. Generative AI has the potential to enhance traditional predictive analytics by processing massive datasets, identifying patterns in customer behavior, and forecasting financial trends with higher accuracy.

In investment banking, for example, generative AI has the power to analyze historical data to predict stock performance or project economic trends. Retail banks could potentially use gen AI to anticipate customer needs, such as identifying a change in borrowing behavior or a growth in demand for high-yield savings accounts. In the coming years, these predictive capabilities could help banks to make more informed decisions and better tailor their products and services to customer needs.

Enhanced Credit Scoring and Loan Underwriting

Traditional loan underwriting requires a thorough review of applicants, which can take time, but AI is capable of taking mountains of data about an applicant and making a credit decision quickly, possibly in as little as 30 to 60 seconds. Gen AI can also assess a broader range of data, including non-traditional data sources like utility payments, employment history, and social data, to produce a more comprehensive view of a borrower’s financial health. This could help banks make wiser, less risky decisions when reviewing credit card and loan applications.

In addition, gen AI has the potential to help reduce bias in decision-making by providing a data-driven, objective assessment rather than relying on traditional methods that might overlook certain individuals. This could potentially open more opportunities for lending to underserved markets. On the flip side, however, generative AI models trained on biased data may also perpetuate and reinforce existing social biases (more on that below).

Recommended: What Is a Second Chance Checking Account?

Potential Risks of Using Generative AI in Banking

While generative AI offers numerous benefits, it also presents challenges and risks that must be addressed to ensure responsible and secure use of this technology. Here are some concerns to keep in mind.

•  Hallucinations and inaccuracies: Generative AI systems, especially large language models, may generate responses that are inaccurate or completely fabricated, known as “hallucinations.” In banking, where accuracy is critical, this can lead to misinformation and potentially damaging consequences, such as incorrect financial advice or inaccurate loan terms.

•  Regulation and compliance issues: Generative AI is still largely unregulated. As rules and regulations evolve to address generative AI, banks will need to ensure their AI systems comply with standards on data privacy, fairness, and transparency. Failure to comply with regulations could result in legal repercussions and significant fines.

•  Security: There are concerns about AI accessing sensitive customer information, particularly personally identifiable information (PII), which could violate customer privacy. In addition, widespread use of AI in banking could make it a potential target for cyber-attacks, where hackers may attempt to manipulate or deceive the AI systems.

•  Existing technology: Established banks may have a wealth of legacy technology systems that might not work with generative AI. Replacing this old tech can be costly and take some time.

•  Bias and fairness: AI models can unintentionally inherit biases present in the training data, leading to unfair treatment of certain customer demographics. If not managed properly, this bias could result in discriminatory practices, such as unfair loan rejections or inappropriate credit scoring. This could impact the bank’s reputation and compliance with regulatory standards.

The Takeaway

Generative AI has the power to transform the banking industry — and the world as a whole. As a fast-growing and ever-evolving tool, it’s important that gen AI advancements are balanced with risk mitigation to ensure the technology meets regulatory requirements, doesn’t violate customer privacy or rights, and works with the existing tech stack. That said, when used effectively — to make processes more efficient, to make better decisions, and to help customers resolve issues more easily — it has the potential to benefit both banks and their customers.

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

Can generative AI help improve banking security?

Generative artificial intelligence (AI) may enhance banking security primarily through fraud detection. By analyzing large volumes of data, generative AI can easily spot transactions that seem out of the ordinary and flag them as fraud in real time. This allows banks and consumers to react immediately and, ideally, prevent the fraudulent transaction. AI systems can also simulate potential cyber-attacks and, in turn, learn how to anticipate and respond to these threats. This proactive approach can help banks better protect customer accounts and improve overall security in banking transactions.

Can generative AI help with financial advice?

Yes, generative artificial intelligence (AI) can enable chatbots and virtual assistants to provide people with personalized financial advice. By analyzing individual customer data, including spending habits and financial history, AI-powered tools can offer customized advice about how to spend, save, invest, and tackle debt. Generative AI can also simulate market trends and forecast potential financial outcomes, offering data-driven insights to customers.

While these tools are helpful, it’s essential for consumers to verify AI-provided advice with financial professionals, as gen AI may produce inaccurate or overly generic recommendations without a nuanced understanding of goals and risks.

What are the ethical concerns of using AI in banking?

There are several ethical concerns surrounding the use of artificial intelligence (AI) in banking. For one, AI systems require vast customer data, creating the potential risks of misuse or unauthorized data exposure. Another concern is that use of AI in lending decisions could result in some bias against particular groups of people, due to biases in AI’s training data or insufficient data. Transparency is another ethical challenge, as use of AI tools by banks can make it difficult for customers to understand decision-making processes.

Photo credit: iStock/Boy Wirat

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SOBNK-Q424-045

Community colleges offer a more affordable path to a Bachelor’s degree for students who are interested in transferring to a four-year institution. Students at community college can fulfill general education requirements on a flexible schedule while earning their associates degree. However, community colleges don’t offer a Bachelor’s degree option and can lack student life and extracurricular opportunities.

Community colleges can be a great fit for some students, while others may prefer to start out at a four-year college or university. Keep reading to learn more on the similarities and differences between community colleges and four-year universities.

What Is a Community College?

Community colleges are one type of postsecondary institution. Sometimes called junior colleges, these are educational institutions that offer two-year degrees and a path to transferring to a four-year college or university.

Community College vs University: How They Compare

Community colleges, as mentioned, generally offer two-year associates degrees. In comparison, colleges and universities often offer four-year degrees, such as a Bachelor of Arts or Sciences.

Similarities

Both types of colleges have some similarities, including the types of aid that you may receive to attend.

Financial Aid

It’s possible to get student loans for community colleges. Students at both community colleges and four-year universities may qualify for the same types of federal financial aid. These options may include scholarships, grants, and federal student loans.

Prerequisite Courses

Community colleges will offer some of the same prerequisite courses as universities. Classes like General Chemistry 101 or Microbiology 101 are similar at community colleges, and students may be able to transfer these prerequisite courses toward a four-year degree if they choose to transfer.

Academic Challenge

It’s easy to think of community college classes as a breeze to complete — but, in many cases, community colleges offer academically rigorous classes that cover material comparable to those offered at four-year institutions. Additionally, community college professors do not conduct research, so there may be more of a focus on in-classroom instruction at community colleges than at four-year colleges or universities.

Differences

There are also plenty of differences between attending a community college vs. university. In addition to the estimated time to earn a degree and the type of degree available, these include things like the cost of attendance, class size, and the application process.

Cost

Attending a community college can be significantly cheaper than going to a four-year university. For example, at schools that are part of the California Community College system, the cost of classes is $46 per credit unit. According to the Education Data Initiative, the average cost per credit at a four-year university with in-state tuition is $447.

Recommended: How to Pay for College

Class Size

The average class size can vary dramatically depending on the school you attend. Community colleges typically have class sizes that hover around 25 to 30 students, depending on the course and school. Some four-year universities can have class sizes into the hundreds, especially for intro-level courses.

Application Process

The application process at a university vs. community college can be much more competitive. At many four-year colleges, the application process consists of requirements like a college essay, recommendation letters, and high school transcripts. Additionally, schools may have strict deadlines for admissions each year.

Community colleges often offer more flexibility in the application process. Many community colleges are open access, meaning almost anyone can enroll in classes. There may be restrictions for certain programs or classes, though, such as classes required for nursing programs.

Campus Life

While some community colleges may offer on-campus housing for students, a large number of them will continue to live at-home or off-campus. This can make on-campus life feel very different than at a four-year college where most students live on-campus.

Pros and Cons of Attending a Community College

There are both downsides and benefits of community college. Community colleges can offer an affordable path to get a four-year degree, but transferring and a lack of on-campus community can detract from the community college experience. Below are the pros and cons of attending a community college.

Pros of Community College

Cost

One of the top pros in the community college column is the price tag. As previously outlined, courses at community college can be significantly less costly than at a four-year institution. For students who are paying for college without parents’ help, starting at a community college can help them significantly lower the cost of their overall degree.

Additionally, students may be able to continue living at home with their family, which can cut costs even further since they won’t be paying for room and board.

Flexibility

Community colleges have flexible scheduling options that can make working while you are in school easier.

Students may also be able to take a variety of classes if they are not sure what field or major they’d like to pursue at a four-year college.

Qualified Professors and Small Class Sizes

As already mentioned, community colleges may offer smaller classes. These small class sizes can lead to more hands-on professors and lecturers — who may be just as qualified as those at larger universities.

Cons of Community College

Limited Curriculum and Degree Programs

Community colleges can be a good place to explore interests and fulfill general requirements for a four-year degree, but they may be limited in the types of courses available.

Need to Transfer for Bachelor’s Degree

To pursue a bachelor’s degree, community college students will need to transfer to a four-year institution.

Lack of On-Campus Life

Because many students live off-campus, on-campus activity and extracurriculars may be limited.

Pros and Cons of Attending a University

Attending a four-year college or university can have pros and cons — just like its community college counterpart. Some benefits of universities include improved long-term earning potential and the opportunity to build a network. The major downside can be the steep cost.

Pros of a University

Long-Term Earning Potential

Bachelor’s degrees can lead to a significant boost in earning potential. According to the National Center for Education Statistics, individuals with bachelor’s degrees can earn up to 35% more than those with an associate’s degree.

Plus, a bachelor’s degree is sometimes a prerequisite for careers in some fields, like human resources, marketing, or computer science and software engineering.

On-Campus Life and Extracurriculars

Many colleges have a rich on-campus life with an active student body and a variety of extracurriculars. Depending on your interests and the school you attend, you could participate in the school’s television and radio station, join an intramural sports team, and more.

Build a Network

Many colleges have a strong and extensive alumni network that students can tap into post-graduation while they look for a job. While you are attending school, you’ll also build soft skills like time management, organization, and interpersonal communication that can be invaluable in the professional world.

Cons of a University

Cost

One of the biggest downsides to college is the cost. According to the College Board, the average cost of tuition and fees at private four-year institutions was $43,350 during the 2024-2025 school year. Add in costs for room and board and other living expenses, and it can be easy to see why some students may be dissuaded from pursuing a four-year degree.

Recommended: What Is the Average Cost of College Tuition?

Social Distractions

With all of the hustle and bustle at a college, it can be challenging to balance work, well-being, and fun. With parties, extracurriculars, sports, and more, it can be easy for students to get distracted from their studies.

Can You Combine Community College and University?

Yes, it’s very possible to attend a two-year community college and then transfer to a four-year college to complete your bachelor’s degree. Many community colleges have articulation agreements in place with local state schools that can make it easier to transfer credits.

Check in with your academic advisor as you complete community college classes to be sure they will transfer to the college of your choice.

Recommended: Should You Choose a College Based on Price?

Figuring Out What’s Right for You

As you’re crafting your own pros and cons list, here are some questions to ask yourself before making your decision.

•   Do I want to live at home or on campus? If you’re hoping to be close to family or need to stay in town for a job, finding a community college campus nearby could be the right call.

•   Do I want to join clubs and organizations? While community colleges offer some activities, universities typically provide more for students to partake in.

•   Do I have enough money to go to a big school? Whether a major state school or a private college or university, student loan debt could follow you for a long time after you graduate.

•   Where is my support system? Not having friends and loved ones around may make school more difficult for some. If your support system is vital to you, and you can’t find a big school near your close family, opting for a community college might be better.

•   Is this the best option for my major? Determining what you want to pursue as a major is a big deal. If you aren’t certain about what you want to do, you might not want to move far away quite yet. Or alternately, maybe getting some distance from your close friends and family will help you find your direction.

The Takeaway

Community colleges can offer a more affordable path to a four-year degree. Universities can offer a rich on-campus experience and a strong long-term earning potential. Depending on your personal situation, either or both could be a good fit.

Once you decide where you want to go, you’ll need to figure out how to pay for college. Typically, students rely on a few different funding sources to fund their education, including scholarships, grants, work-study, and 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

Is community college easier academically than university?

Community colleges often have qualified professors and courses that are comparable to those offered at a four-year institution. The course selection and degree programs available at a community college, though, may be more limited than at a university.

Is getting a degree from a community college worth it?

Getting a degree from a community college can be worth it. In addition to securing an associate’s degree, you may be able to transfer to a four-year institution to continue your education to get a Bachelor’s degree. Doing this can be less expensive than pursuing a Bachelor’s degree exclusively at a four-year institution.

Is going to community college a good way to cut down on the cost of a 4 year college degree?

The cost of classes at a community college is typically significantly cheaper than the cost at a four-year institution. Starting out at a community college and transferring to complete your degree can significantly cut the cost of tuition. Plus, community college students may have the option to live at home which can reduce room and board expenses.

Photo credit: iStock/simonkr

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SOISL-Q424-058

Workplaces typically pay employees just twice a month. But sometimes, you want to get your hands on cash more quickly. Fortunately, it’s possible to find jobs that pay daily, from babysitting to blogging to mowing lawns.

Some of these are true jobs that pay every day, while others are freelance gigs (commonly referred to as side hustles) that may pay invoices as you submit them. If you manage enough side hustles or have enough clients for a single side gig, you can stagger invoices so that payments are coming in every day — or at least multiple times a week.

Here, take a closer look at these gigs that can pay daily to keep cash flowing your way.

20 Daily Paying Jobs

Are you looking for a daily flow of cash into your checking account? Here are 20 jobs that pay daily:

1. Waiting on Tables

Servers are tipped employees who earn a reduced minimum wage. When you work this way, you may still earn a regular paycheck with your hourly wage and any tips paid by debit or credit card. However, you are often able to pocket cash tips at the end of each shift. Other tipped workers, like hairdressers, manicurists, and bellhops, may also bring home money every day.

Typical Pay: Currently $15.80 per hour

2. Collecting and Recycling Metal

If you have a truck or van, you can spend the day collecting scrap metal from construction sites, local businesses, and dump sites. You might be able to use resources like Craigslist or even social media to find scrap metal ready to be picked up.

Once you’ve gathered enough scrap metal, you can take it to a local recycler, who will typically pay you by the pound for quality materials.

Another angle on this is collecting recyclable bottles and cans and exchanging them for cash. This may be as simple as taking them to your local supermarket.

Typical Pay: Currently $21 per hour

3. Babysitting

As a babysitter, you can set your own rates and hours and typically get paid at the end of a shift. You don’t need any special equipment, which can make it a good low-cost side hustle for many people.

While word of mouth is still a good strategy for finding clients, many people now use find babysitters digitally, like through Care.com, UrbanSitter, and Bambino; it’s a good idea to get vetted and have a profile on such platforms.

Bonus points if you are CPR- and first aid certified!

Typical Pay: Currently $23.61 per hour (though neighborhood, word-of-mouth jobs may be less)

4. Pet Sitting

Pet parents need a break too. Whether through word of mouth or through apps like Rover, you can find people who need help with their pets while on vacation or even just during their days in the office.

In addition to pet sitting, you may be able to find clients who just want someone to walk their dogs during the day. With good word of mouth and some marketing, you may achieve an array of jobs that pay everyday.

Typical Pay: Currently $15-25 per hour, with overnights ranging from $45 to $75

5. Selling Your Photos

If you like to take photos, whether while traveling or just of everyday life, you might be able to make money from them. Uploading photos to a stock photography site means you’ll make money every time a person pays to use your photo.

If you’re a skilled photographer with professional equipment, you can make money on the side by taking family portraits or even photographing weddings.

Typical Pay: This varies from selling a photo print for a few dollars online to making $700 from a stock house for an image. The average wedding photographer makes $48 per hour.

6. Reselling

Another way to potentially be paid every day is by getting into reselling on sites like Amazon and eBay. But what is a reseller? As a reseller, you will buy products (ideally greatly discounted and in bulk), then list them for sale at a higher price online.

Becoming a successful reseller can require patience, hard work, and a lot of time at the post office. But once you have a process nailed down, it can be an easy way to get paid regularly.

Typical Pay: Currently $33 per hour

7. Crafting

Opening a shop on Etsy is a great way for hobbyists to make supplemental income from their crafts. Here, artisans can showcase and sell their work, from custom jewelry to knitted blankets to hand–carved signs. If your items are popular enough — and you can keep up with demand — it’s possible to make sales every day.

Typical Pay: This varies widely depending on how time-consuming a craft is and how much it sells for, but one current estimate is $25 per hour

8. Renting Out Your Space

Have an extra bedroom in a location that tourists often visit? You might be able to list your space on Airbnb and VRBO. If you can attract guests every night, you could potentially get a payout every day.

Typical Pay: Your earnings will vary depending on location, specifics of the space you are renting out, and how much demand your area experiences.

9. Mowing Lawns

Offering to mow multiple neighbors’ lawns each week — and then staggering when you mow them — is a simple way to get paid every day of the week. While this can be an easy evening side gig after a full-time job, it also has the makings of a full-time hustle itself. If you have the right equipment and transportation, plus enough clients, you could launch your own lawn mowing company.

Typical Pay: Currently $18.94 per hour

10. Driving a Rideshare

If you’re a safe driver with a decent car, you might have a future as a rideshare driver. While Lyft typically pays out each week (on Tuesdays), Uber allows drivers to opt in to Instant Pay — with up to six payments a day!

Typical Pay: Currently $18-20 per hour

11. Delivering Food

If you’d rather drive food than people, you’re in luck. Delivery drivers for services like Uber Eats and DoorDash can all opt in to instant payouts. Getting paid instantly (as opposed to the services’ traditional payment timelines) may come with a fee, however. That can mean less cash to put in your checking or savings account.

Typical Pay: $17.06 per hour

12. Shop for Others

Being a shopper for, say, Instacart means heading to a supermarket, drugstore, or other retailer and shopping for a customer and then delivering the goods. If you have the time free to do this and like to keep busy, it can be a good way to bring in some extra cash when you have the hours free to fill.

Typical Pay: Currently $13.62 per hour

Recommended: Careers That Pay Off Student Loans

13. Doing Online Surveys

You can make money while sitting on the couch listening to music, simply by taking surveys. Popular paying survey sites include Swagbucks, InboxDollars, and LifePoints. Each survey may take several days to pay out, and you’re likely to just earn a few dollars a day. Still, every bit counts, and you can eventually get deposits each day by making surveys a daily habit.

Typical Pay: Surveys can pay 50 cents to $5 each. Pay will depend on how many you qualify for and complete and the pay rate.

14. Participating in a Focus Group

Online surveys are an easy way to make money from home, but their payouts are low. You might be able to make more by participating in focus groups. Studies usually pay $50 to $200, but some might pay more than $1,000.

Typical Pay: The amount you can earn will depend on which focus groups you can find and qualify for and how much they pay.

15. Being a Virtual Assistant

As a virtual assistant, you support businesses, typically working remotely rather than on-premises. You can work for multiple companies that need help with basic tasks, like scheduling, data entry, travel arrangement, and bookkeeping. Some companies may have more specific tasks, like managing their social media. The more skills you can offer, the more likely you are to land clients.

Sites like Indeed, LinkedIn, and Upwork are helpful for landing virtual assistant jobs. It’s a good idea to have an up-to-date LinkedIn profile and resume showcasing relevant experience.

Typical Pay: Currently $24.96 per hour

16. Tutoring

Teaching online or in person is an easy way to earn money every day if you have deep knowledge on a topic and a knack for making things clear to others. Students may be looking for tutors for standardized tests or learning a musical instrument. Sometimes parents might just want a tutor to help a child improve in a certain school subject.

If you have a background in multiple subjects and a website or profile showcasing relevant certifications, you could potentially get enough students to earn money each day.

Typical Pay: Currently $20 per hour on average, but some topics can pay significantly higher such as $75 per hour for Mandarin or chemistry

17. Proofreading and Copy Editing

Having eagle eyes (and a degree in English) can qualify you to be a proofreader. Brushing up with well-known reference resources, like the Chicago Manual of Style or the Associated Press Stylebook, can help hone your skills.

You can find individual job postings online for one-off projects (like proofreading a novel) or recurring work with clients. Indeed, Fiverr, FlexJobs, and Upwork are good places to start. If you can get a few projects going, you may be able to get jobs that pay every day.

Typical Pay: Currently $25-30 per hour

18. Creating Content

If you are a strong writer, you might be able to find work as a freelance writer for news sites, blogs, or marketing clients. Having a portfolio that showcases existing work is usually the best way to get your foot in the door. Freelance writers are usually paid per word or per piece.

Another route to getting paid every day with your content: You can create your own personal blog and run ads on the site. You’ll earn money for pageviews, so getting traffic to your website is crucial. But don’t forget: There are also costs to run a blog.

Creating content means more than writing; it also means videos and podcasts. Many people make money off ads on their YouTube videos. And if you have enough followers on sites like Instagram or TikTok, brands may pay you to advertise their products.

Typical Pay: Currently $15-$25 per hour for an entry-level gig; you may be able to command more as your expertise and reach grow

Recommended: 39 Ways to Make Passive Income

19. Affiliate Marketing

Ads on your blog are a great way to make money off your writing, but you can also add in affiliate links to certain products that you review and recommend. If someone clicks on the link for a product you’re talking about and then buys that product, you can earn a commission.

Podcasters, vloggers, and social media influencers can also participate in affiliate marketing, often by giving fans a promo code. If you get traction with this, you could be getting paid daily.

Typical Pay: Currently $23 per hour

20. Transcribing

Transcription jobs are an easy way to make money from home. If you have enough clients, you might be able to have money flowing in every day. Companies such as GoTranscript and Rev are helpful when you’re just starting out.

Typical Pay: Currently $21 per hour

Benefits of Being Paid Daily

Having a daily stream of income isn’t always easy. Here are some ways to achieve your goal of getting paid everyday:

•   Flexibility: Many of the daily paying jobs on this list allow you to make your own schedule. You can work longer hours if you want, but you also don’t have to worry about getting approved to take time off to go to the doctor or embark on a low-cost road trip with friends.

•   Faster Payment: Some of the jobs that pay everyday listed are gigs that pay daily, meaning when you kick off your shoes at the end of the day, you’ll have more money in your wallet or checking account than when you started. Some of the other jobs involve invoicing when the work is done. If you have enough invoices being paid out from different clients for different work, you should have a steady stream of income flowing into your bank account regularly.

•   Work Remotely: A lot of the daily paying jobs on this list allow you to work right from the comfort of your couch or a nearby cafe. Getting paid while wearing sweatpants and having your dog by your side can be a pretty sweet gig. It can also cut out transportation costs and make household chores like cooking and cleaning easier to manage.

Tips for Finding Jobs That Pay Daily

Having a daily stream of income isn’t always easy. Here are some ways to achieve your goal of getting paid everyday:

•   Know where to look: Beyond the obvious options (DoorDash, Uber) and the companies mentioned above, you can also find side hustles that pay daily on job boards. Search for such keywords as “daily pay” and “dailypay jobs” on such platforms as Ziprecruiter, SimplyHired, Glassdoor, and Veryable (an app), and others.

•   Take on multiple gigs: Wearing many hats means more opportunity for earning income. You might be a rideshare driver on weekends, take online surveys while binge watching Netflix in the evenings, transcribe during the workday, and write ad-supported blogs in your free time.

•   Stay organized: If you have multiple purchase orders, invoices, and clients to juggle, it’s a good idea to find an organizational method that works for you. Planners, spreadsheets, dry-erase boards, and sticky notes can all be effective ways to keep organized.

   Also consider opening separate accounts (perhaps multiple online bank accounts) if you want to keep your income streams separate.

   That could also help you if you are trying to figure out your tax deductions as a freelancer and need to keep various gigs distinct.

•   Persevere: You likely won’t immediately achieve a daily paycheck when starting your freelance lifestyle. Often, success means taking on whatever work you can, being proactive to find new gigs, and being willing to accept that you might not always get a paycheck at the end of each day — at least not at first!

Recommended: How to Make Quick Cash

The Takeaway

If you’re looking to get paid quickly, you have many options. Jobs that pay daily are often side hustles or freelance gigs by nature. If you are willing to wear many hats and learn new skills, you may find great success working several jobs that pay you daily. Options range from driving a rideshare to mowing lawns to creating content.

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

Is it better to be paid daily or biweekly?

Being paid daily means more immediate access to your funds, but it can sometimes be less predictable and involve smaller amounts of cash. If you prefer more predictable income for easier budgeting, you might prefer a biweekly paycheck.

Are daily paying jobs full-time?

Most daily paying jobs are a form of freelance work or a side hustle. However, many people are able to turn their freelance side gigs into full-time careers — for example as writers, photographers, marketers, and contractors.

Can I work multiple jobs that pay daily?

Many people with jobs that pay daily work multiple gigs. Because some jobs may not actually pay every day, some workers will juggle multiple side hustles (like rideshare driving and tutoring) to ensure a steady flow of funds.

Photo credit: iStock/SDI Productions

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

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