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If you feel like your electricity bills get a little higher every summer, it’s not your imagination. For the June-through-September period of 2024, the average U.S. electric bill is projected to be $719, a nearly 8% increase year over year and the highest average in 10 years.

Fortunately, there are some simple things you can do to shrink your bills back down to size. Better yet, they don’t involve sacrificing comfort. While some measures require a small upfront investment, others are completely free. Read on for some of the most effective ways to save on your electric bill this summer.

Review Your Summer Electric Usage

If high electric bills are impacting your bank account this summer, a good first step is to review your electricity use patterns. Many utilities offer dashboards where you can view your daily and monthly usage to learn when you use the most energy. Some utilities even offer a mobile app that allows you to see your electricity usage in monthly, daily, and 15-minute time intervals to help you manage your energy consumption.

Knowing when you tend to use the most electricity — and how this is impacting your bill — can help you become more mindful of your energy usage. It can also give you motivation to make some changes.

Recommended: 8 Ways to Organize Your Bills

Optimizing Your Air Conditioning System

Air conditioning accounts for about 19% of electricity consumption in U.S. homes, according to the U.S. Energy Information Administration’s most recent statistics. So one of the best ways to save on utility bills is to maximize the efficiency of your air conditioning system.

If you have central air, it’s a good idea to have a professional HVAC specialist perform annual maintenance on your equipment. This can go a long way in ensuring your air conditioner runs at peak efficiency. There are also some simple things you can do yourself to optimize the performance of your air conditioning system:

•  Vacuum air intake vents regularly. This will remove any dust buildup and allow the unit to function at a higher efficiency.

•  Regularly clean or replace air filters. Dirty air filters can restrict airflow, causing air conditioners to work harder and less efficiently.

•  Keep outdoor units clean. If you have a central unit outside, you can optimize performance by keeping your outdoor unit clear of debris and plant growth. The outdoor unit needs space to release heat, so make sure it has at least two feet of clearance on all sides.

•  Use fans to your advantage: Utilizing ceiling fans to circulate air can help you maintain a comfortable temperature while reducing the load on your air conditioner. For the most cooling effect, be sure the fan is turning counterclockwise (if it’s going the other way, you can typically change it by flipping a switch on the fan body).

•  Click up the thermostat: While the most energy efficient temperature is 78°F, that may not be cool enough to keep you comfortable. However, any uptick in your thermostat is helpful. In fact, you’ll save about 3% on your utility bill for every degree you raise the set temperature for your central air.

•  Install a smart thermostat. A smart thermostat can learn your schedule and adjust temperature automatically, ensuring energy is not wasted.

Recommended: How to Split Bills With Roommates

Energy-Efficient Cooling Alternatives

While air conditioning is effective, it is not the only way to keep your home cool. Consider these energy-efficient cooling alternatives to reduce your reliance on AC and lower your electric bill.

Attic Fan

Air from a hot attic can seep into your house and make your air conditioner work harder and more often. Not only does that increase your electricity bill, but it can also shorten the life of your AC system. An attic fan can help by circulating air and pushing stuffy, warmer air out of the house. This, in turn, can keep the entire house cooler. On days when it’s not too hot, it could be all you need.

Geothermal Heating/Cooling

Geothermal systems rely on stable underground temperatures for heating and cooling. They work by circulating liquid through buried tubes, exchanging heat between your home and the ground. It’s an efficient process that uses 25% to 50% less electricity than traditional HVAC systems, according to the Department of Energy. This can lead to a significant savings on utility bills over time.
On the downside, installing a geothermal system involves substantial digging to bury the pipes, which can be costly. Despite the initial expense, however, the long-term energy savings can make it a worthwhile investment.

Recommended: 15 Easy Ways to Save Money

Evaporative Coolers

In dry climates, evaporative coolers (also known as swamp coolers) can be an efficient, cost-effective cooling option. These units work by using a fan to blow air through a water-soaked pad, cooling the air before it enters your home. By cracking windows, hot air can escape, and cool air circulates effectively.

These coolers use less energy and water compared to traditional air conditioning, leading to lower utility bills. However, they are generally only effective in low-humidity climates.

Reducing Heat Gain in Your Home

One of the best ways to use less air conditioning is to reduce the overall heat that comes into your home. If you stop heat from coming inside in the first place, then you don’t have to pay to cool it. This can be one way to lower your energy bill when you’re working from home or if you’re home a lot during the day.

Some strategies include:

•  Ensure you have adequate insulation in the attic and walls. This greatly reduces the flow of heat into your home in the summer.

•  Seal up any cracks. Adding weatherstripping or caulk around doors and windows can help seal up any openings. This prevents the warm exterior air from leaking into your home.

•  Close windows and doors. Whenever it’s warmer outside than inside, it’s wise to close all windows and doors and latch them tightly to reduce heat gain.

•  Cover the windows. Another way to keep the heat outside is to cover windows with shades, blinds, or curtains during the day to block out the sunlight.

Recommended: 14 Reasons Why It’s So Hard to Save Money Today

Smart Appliance Usage and Vampire Energy

Vampire energy refers to electricity that devices consume while not actively in use but in “standby mode.” Common offenders include TVs, desktop computers, printers, device chargers, and kitchen appliances. While each device uses a small amount of power, when added all together, it can make up a significant source of your home’s electricity use.

The simplest way to cut standby power consumption in the summer (and year round) is to unplug devices, or turn off the power strips they are plugged into, when you’re not using them. Another option is to get some smart power strips. These strips help reduce energy waste by automatically turning off power to connected electronics when they are not in use.

When it comes time to replace an old appliance, consider purchasing an Energy Star-certified device. These appliances are designed to minimize phantom loads and improve your home’s efficiency.

The Takeaway

If you’re seeing significantly higher electric bills this summer, know that there are several steps you can take to save on the cost of electricity, even during the hottest months of the year. Some strategies — like cleaning your AC unit or reducing heat gain in your home — require just a small upfront cost, if any. Others (like replacing your heating/cooling system) call for a more significant investment, but can pay off over time by cutting your electricity bills both in the summer and year round.

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

What temperature should I set my thermostat to save money?

To save energy, as well as money, the U.S. Department of Energy recommends setting the thermostat to between 68°F and 70°F while you’re awake, and then making it a higher temperature (or, if it’s winter, a lower temperature) while you’re sleeping or away from home.

Are ceiling fans effective in lowering electric bills?

Yes, ceiling fans enhance air circulation and create a cooling effect, allowing you to raise the thermostat by about 4°F without sacrificing comfort.

During the summer, be sure your ceiling fan is turning counterclockwise — this creates a downward draft and circulates the cool air around you. If your fan blades are turning clockwise, you can typically reverse it by turning off the fan and flipping the switch on the fan body. You may also be able to do this using your ceiling fan’s remote.

How much can LED bulbs reduce my summer electric costs?

Lighting accounts for around 15% of an average home’s electricity use, so switching out your incandescent bulbs with more energy-efficient LED bulbs can lead to significant savings over time. According to the U.S. Department of Energy, the average household can save about $225 in energy costs per year by using LED lighting.

Photo credit: iStock/pinstock

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.

*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.

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.
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.

SOBNK-Q324-014

A non-purpose loan is an alternative type of loan that allows individuals to use investment securities they own as collateral to borrow money. With a non-purpose loan, borrowers can get access to the funds they need and continue to earn potential returns on their investments. However, non-purpose loans come with some financial risks to be aware of.

Read on to learn how non-purpose loans work and their benefits and drawbacks.

What Is a Non-Purpose Loan?

A non-purpose loan — also known as a securities-backed line of credit (SBLOC) — is a type of secured loan offered by some financial institutions and brokerage firms. Instead of using collateral such as a home or car to back the loan, a borrower uses securities in their investment portfolio.

Interest rates on non-purpose loans tend to be variable, and they may be slightly higher than the rates on personal loans. (A personal loan calculator can help you determine the personal loan rate you might qualify for.) The borrower must make interest-only monthly payments on a non-purpose loan until you decide to pay it off. The loan’s principal can be repaid in increments or all at once.

The Way a Non-Purpose Loan Works

With a non-purpose loan, you borrow money using your investments to back the loan, and you continue to earn any interest, dividends, and capital appreciation on those investments.

The amount you can borrow with a non-purpose loan varies, although you can typically borrow between 50% to 95% of your portfolio. The exact percentage depends on two main factors: the types of assets in your accounts and the value of your portfolio. Lender requirements may also be a determining factor. To qualify for a non-purpose loan, a lender may require you to have assets with a market value of at least $100,000.

Unlike traditional lending products such as personal loans, non-purpose loans are subject to maintenance calls. That means if the value of your investment accounts falls below a certain level, the brokerage or financial institution will ask you to boost the equity in your investments to meet the margin requirements.

In the case of a maintenance call, you’ll need to increase your accounts’ value by either depositing more money in them or partially repaying the loan.

Non-Purpose Loan vs Margin Loan

A margin loan is another type of lending product that’s backed by a borrower’s investment securities. Like a non-purpose loan, a margin loan allows you to borrow against the investments in your portfolio while continuing to earn any dividends and interest. Margin loans are subject to maintenance calls just as non-purpose loans are.

However, there are differences between the two. A margin loan is typically used for the sole purpose of purchasing more securities. A non-purpose loan, on the other hand, can be used for virtually anything other than purchasing securities. To obtain a margin loan you can only use the investments in one account as collateral, whereas you can get a non-purpose loan by using investments in several accounts.

Pros and Cons of a Non-Purpose Loan

Non-purpose loans have distinct benefits and drawbacks. For example, these loans are flexible and can be used for many purposes, but they often require borrowers to have investment accounts with a high value.

This chart gives an at-a-glance comparison of the advantages and disadvantages of non-purpose loans.

Pros of a Non-Purpose Loan

Non-purpose loans have several features that can make them attractive to borrowers.

May not require a credit check. Unlike traditional loans such as unsecured personal loans, a non-purpose loan might not involve a credit check. Instead, the lender may base the amount of the loan on the value of your portfolio.

Allows investment returns. Borrowers don’t have to sell their securities to obtain a non-purpose loan. They can continue to get possible returns on investments.

May avoid capital gains tax. Because you don’t have to sell securities to get a non-purpose loan, you won’t have to pay capital gains tax.

Provides flexibility. With a non-purpose loan, you can use the proceeds in almost any way you wish. For instance, you can use the money to pay off medical expenses, tide you over during a job loss, or for home improvement funds.

Recommended: Using a Personal Loan for Taxes

Cons of a Non-Purpose Loan

Along with possible benefits, there are some significant drawbacks of non-purpose loans to consider.

High asset value requirements. To qualify for a non-purpose loan, a lender typically requires you to have assets with a high minimum value of at least $100,000.

Variable interest rates. Non-purpose loans generally have variable interest rates, which means the rates can go up and down throughout the life of the loan. You may want to check personal loan rates to compare the interest rates of other lending options.

Subject to maintenance calls. The investments that serve as your collateral for a non-purpose loan are prone to market volatility, so you could be impacted financially. For instance, should the value of your securities go down, the value of your portfolio may no longer meet the collateral requirements for the loan, prompting a maintenance call. In that case, you might have to deposit money in your accounts or partially repay the loan.

Loan funds cannot be used for investing. Unlike margin loans, you can’t use the money from a non-purpose loan to purchase investment securities.

Recommended: How to Pay Tax on Personal Loans

The Takeaway

A non-purpose loan may be attractive to certain borrowers because it gives them the ability to use their investment securities as collateral while continuing to earn money on their investments. However, these loans tend to have high minimum balance requirements and variable interest rates, and they’re subject to maintenance calls, which could be financially challenging. Consider the potential pros and cons of a non-purpose loan to make sure it’s a good option for you.

You can also look into other lending products. While SoFi doesn’t offer non-purpose loans, we do offer personal loans with amounts ranging from $5,000 all the way up to large personal loans of $100,000. You can explore the different types of loans available, and shop around for the best rates, to decide which option is right fit for your borrowing needs.

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

What is the meaning of a non-purpose loan?

A non-purpose loan is an unconventional loan that allows you to use securities from different investment accounts as collateral for the loan. For some borrowers, the main advantage to this type of loan is that their investments stay intact, and they can potentially earn money from interest and dividends.

However, there are disadvantages to non-purpose loans. For instance, if the value of your investments drop, you may be required to add money to your accounts or repay part of the loan.

What is the difference between a purpose and a non-purpose loan?

A purpose loan uses investment securities as collateral and is typically used to buy more securities. A non-purpose loan is also backed by investment securities, but it can be used for almost any purpose, except for purchasing securities.

Is a non-purpose loan better than a purpose loan?

Non-purpose loans and purpose loans have different uses and requirements, and one isn’t necessarily better than the other. It mainly depends on what you’re using the loan for. A purpose loan is generally used for one specific purpose, typically to purchase securities. A non-purpose loan can be used for almost anything except purchasing securities. Only you can decide which type of loan is best for your intended use of the funds.

Photo credit: iStock/RgStudio

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-Q324-013

When your mortgage payment comes due every month, it may look like a single bill. But in reality, you’re likely paying four separate things: principal, interest, taxes, and insurance. PITI is an acronym that bundles these four elements together. But in order to better understand where, exactly, your monthly mortgage money is going, we’re going to take PITI apart and explain each element for you.

Understanding PITI

As discussed above, PITI is the acronym for the four basic components of a monthly mortgage payment. PITI includes:

•  Mortgage principal (the amount you borrowed from the bank)

•  Mortgage interest (the amount the bank charges you for the loan)

•Property taxes (levied by the local government)

•  Homeowners insurance (which covers the cost of repairing or replacing your home under certain covered circumstances)

Importance in Mortgage Payments

Together, these amounts add up to your total monthly mortgage payment — though that amount is not the same as your total monthly home expenses, which also include things like utilities and maintenance. (More on that below.)

Breaking down your PITI and calculating each separate component helps you better understand where your money is going each month. During the home-buying process, it helps you narrow your home search to those that are actually affordable on your budget. And later, knowing what does PITI stand for and what numbers comprise the components of your PITI will help you if you need to request a mortgage interest deduction on your taxes.

Breaking Down PITI Components

Principal and interest are paid to your mortgage lender, and include both the money you borrowed and the money the bank is charging you for the service of offering the loan. Keep in mind that the amount of principal versus interest will change over the lifetime of the loan in a process known as amortization. To get a full picture of how that works, try out a mortgage calculator that includes an amortization chart.

Meanwhile, your property taxes and homeowners insurance will likely flow into an escrow account, where funds will be used to pay those bills as they come due. Property taxes are almost always included in your mortgage payment, and if you owe money on your home, you will be required to carry homeowners insurance. (Even if you don’t, buying a policy is a good idea. After all, if you’re like many Americans, your home is likely the single most valuable asset in your portfolio.)

Finally, there are also other components that may be part of your monthly mortgage payment — though not part of your PITI. These include extras like PMI (private mortgage insurance) or HOA fees. Not every home purchase will come with these payments, but if you make a down payment of less than 20%, some sort of mortgage insurance is usually inevitable.

Recommended: Property Tax and Your Mortgage: Everything You Need to Know

How PITI Affects Home Affordability

PITI in real estate affects home affordability in a pretty straightforward way: Knowing your PITI ahead of time helps you ensure you’re making an offer on a house that’s truly within your budget. Knowing the cost of a home is one thing, but knowing how much the mortgage will actually take out of your account each month is another. One important rule of thumb: Most lenders prefer that your PITI is less than or equal to 28% of your gross (pre-tax) monthly income.

Fortunately, there are some things you can do to lower your interest rate — which lowers your overall PITI. By keeping your debt-to-income ratio (DTI) low and maintaining a good credit score, you can help ensure you get the lowest interest rates possible, which may expand your home-buying power by qualifying you for a lower rate, no matter the purchase price.

Calculating Your PITI

These days, the easiest way to calculate your PITI is by using an online mortgage calculator with taxes. You’ll need to estimate the home’s annual property taxes based on records kept by your county, and add the insurance premium quoted to you into the mix.

Keep in mind, however, that PITI can (and likely will) change over time as both tax rates and your insurance premiums change each year. Although a fixed-rate mortgage keeps your “PI” static, the “T” and “I” may change your overall monthly mortgage payment over the course of its term. To ensure long-term affordability, consider how increases in each of these categories might work with your budget.

PITI vs. Non-PITI Expenses

As discussed above, PITI doesn’t cover the whole range of homeownership expenses. Along with additional extras like homeowners association (HOA) fees and mortgage insurance, owning a home also means paying monthly utilities as well as any regular repair and maintenance costs.

Those costs can add up, especially if you’re not expecting them. One common rule of thumb is to set aside 1% of your home’s value for repairs each year, with exact figures depending on where you live. (In other words, in some expensive states, like Hawaii, California, and New York, repair costs may be even higher.)

Strategies to Manage and Reduce PITI

Keeping your PITI low keeps your housing expenses low, and while some parts of your mortgage may seem set in stone, others are more negotiable.

For example, did you know that you can challenge property tax assessments (that determine the amount of “T” in your PITI)? Once your home is valuated, if you disagree with the findings, you may reach out to your county or local governance to challenge them. Doing so may lower your taxable property value. (Be warned, however, that if the current valuation does not include recent renovations or, say, a new outbuilding, the taxable value could actually rise.)

Additionally, shopping around for insurance can go a long way toward lowering the second “I” in your PITI. Different insurance companies have different proprietary algorithms and therefore different rates for similar coverage. Additionally, you can play with how much coverage you buy — but use caution before skimping on protecting your home.

Finally, if you already have a home mortgage loan but your creditworthiness profile has substantially improved (and market interest rates are lower than they were when you took out the loan in the first place), refinancing may serve to substantially lower the “P” and initial “I” in your PITI. Remember, though, that you’ll pay closing costs again, so factor in that expense before deciding this is the right financial move for your situation.

Recommended: What Is a Home Inspection

The Takeaway

The acronym PITI describes the four most basic elements of a monthly mortgage payment — but they’re far from the only costs associated with homeownership. Still, understanding PITI can help you find a home that’s within a reasonable purchase price range in the short term — and taking strategic steps to reduce your PITI can help you keep your costs low for years to come.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How does PITI change over the life of the loan?

If you have a fixed-rate mortgage, your principal and interest payments will always amount to the same total — though the ratio of how much of those funds go toward interest versus principal will shift over the lifetime of the loan in a process known as amortization. Your property tax rate and insurance rate may change over time based on the valuation of your home, changes in the local tax code, and insurance premium changes (or a change in insurers). Thus, your monthly housing cost could shift, and even increase, over time, even if the loan is fixed-rate.

Can I pay property taxes and insurance separately from my mortgage?

In most cases, property taxes and homeowners insurance are paid together with the mortgage, and the funds go into an escrow account where they pay their respective bills as they come due. However, it is possible to secure an escrow waiver from your home lender, which would allow you to pay these expenses separately.

How does PITI affect my ability to qualify for a mortgage?

Lenders calculate your PITI before approving your mortgage application — and if your PITI is too high, you might not get approved. Generally speaking, lenders like to see your PITI equal to or less than 28% of your gross monthly income, though some lenders may approve you if your PITI is slightly higher.

What happens if I can’t afford the full PITI payment?

If your financial circumstances change and you can no longer afford to pay your mortgage, your first move should be to contact your lender. They may be able to negotiate or offer a mortgage assistance service. Talking to a U.S. Department of Housing and Urban Development foreclosure avoidance counselor could also help — but simply allowing your loan to fall into default could lead to home foreclosure.

Photo Credits: iStock/

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.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q424-002

Becoming a teacher requires a bachelor’s degree and passing certification exams. Depending on the type of school setting, location, and subject area, educators may also need to earn a graduate certificate or degree. Fortunately, there are many teacher scholarships that can help make pursuing a career as an educator more affordable.

Below are 25 scholarships for aspiring teachers that can help cover the cost of undergraduate and graduate degree programs in education.

1. TEACH Grant

The U.S. Department of Education provides Teacher Education Assistance for College and Higher Education (TEACH) Grants of up to $4,000 per year for undergraduate and graduate students pursuing a career as a teacher. Applicants must be eligible for federal student aid programs, be enrolled at a participating school, and meet academic requirements.

Recipients must fulfill a service obligation to teach a highly needed subject in a low-income area or where there’s a teacher shortage, or else have their TEACH Grants converted to a Direct Unsubsidized Loan.

Recommended: How College Financial Aid Works

2. STEM Teachers for America’s Future Graduate Scholarships

The AFCEA Educational Foundation offers scholarships of $2,500 to graduate students pursuing a degree or credential to teach science, technology, engineering, or math (STEM) subjects to grades K-12 in the U.S. Applicants must have a GPA of 3.5 or higher and complete a B.S. degree in a STEM field.

3. James Madison Graduate Fellowship

The James Madison Memorial Fellowship Foundation provides around 50 awards of $12,000 per year for college seniors and college graduates who intend to become secondary school teachers of U.S. history, government, or civics. Recipients are expected to complete graduate programs within two academic years and teach for a duration equivalent to the fellowship funding received.

Recommended: 10 Most Common Types of Scholarships

4. Glenn Moon Scholarship

The Association of Retired Teachers of Connecticut offers the Glenn Moon Scholarship, consisting of multiple scholarships of $2,000 per year for students pursuing a teaching degree. Applicants must be residents of Connecticut to be eligible.

5. SoFi Scholarship Giveaway

In addition to teacher scholarships, registering for SoFi’s $2,500 scholarship sweepstakes is another opportunity to get free money for college. Scholarships are awarded on a monthly basis, and registration takes just a couple steps.

6. Barbara Lotze Scholarship for Future Physics Teachers

The American Association of Physics Teachers issues approximately five scholarships of up to $3,000 for U.S. citizens pursuing a degree leading toward a career as a high school physics teacher. High school seniors and current college students are eligible to apply for funding for each year of their degree program.

7. Nancy Larson Foundation College Scholarship

The Nancy Larson Foundation awards a minimum of five $1,500 scholarships to students preparing to become elementary school teachers. Juniors, seniors, and graduate students who have declared an elementary education major are eligible to apply for the Nancy Larson Foundation College Scholarship.

8. TeachDFW Scholarship

The TeachDFW Scholarship awards up to $1,000 to any future educator applying to a teaching program. The scholarship is aimed at addressing the teacher shortage and improving education quality in local Dallas-Fort Worth schools by empowering aspiring teachers.

9. South Carolina Teaching Fellows Program

The SC Teaching Fellows Program provides professional development opportunities and funding for up to 200 high school seniors who have demonstrated community service experience, high academic achievement, and a desire to become a teacher in South Carolina. Fellows can receive up to $24,000 in funds, or up to $6,000 a year for four years, while earning a degree that leads to initial teacher certification.

Recommended: Explaining Student Loan Forgiveness for Teachers

10. National FFA Alumni and Supporters Agricultural Education Scholarship

The National Future Farmers of America (FFA) Organization offers $1,000 scholarships to students pursuing a degree leading to a career as an agriculture teacher. Applicants must be high school senior FFA members or FFA alumni enrolled in a two- or four-year degree program.

11. Joseph T. Weingold Scholarship

The Arc New York Joseph T. Weingold Scholarship awards four New York Arc Chapter employees $3,000 scholarships per year for those enrolled in a New York State degree program, leading to a special education certification.

12. International Teacher Education Scholarship

The Alpha Delta Kappa Foundation grants up to seven awards of $10,000 annually to women from outside the U.S. pursuing a graduate degree in a field of education in the U.S. To be eligible, applicants must have a bachelor’s degree and reside outside the U.S. prior to enrolling in graduate school.

Recommended: 10 Popular Scholarships for Women

13. Next Generation Hoosier Educators Scholarship

The Next Generation Hoosier Educators Scholarship provides awards of up to $10,000 each year for Indiana residents pursuing a career in education. Recipients may renew the scholarship for four academic years. Additionally, recipients agree to teach for five years at an eligible school in Indiana or repay the prorated amount of the scholarship award.

14. High School Senior Scholarship for Future Teachers

The Georgia Association of Educators provides up to 10 awards of $1,000 for high school seniors in Georgia who will attend an accredited college or university and plan to major in education. Applicants must submit two letters of recommendation and complete a 500-word essay on “Identify the Teacher Who Inspired You to Consider Becoming a Teacher and Why?”

15. College Junior/Senior Scholarship for Future Teachers

The Georgia Association of Educators provides awards of $1,000 for rising college juniors and seniors enrolled in an accredited education program at a Georgia college or university. Applicants must submit two letters of recommendation and complete a 500-word essay on “Why Do You Choose to Become a Teacher and What Do You Hope to Accomplish in this Profession?”

16. Underwood-Smith Teaching Scholars Program

The Underwood-Smith Teaching Scholars Program provides 25 awards of $10,000 per year to students enrolled at a West Virginia college or university and pursuing a degree in math, science, elementary education, or special education. Recipients may receive funding for up to four years, and are required to teach in a West Virginia public school for at least five years after graduation.

17. Martin Luther King, Jr. Memorial Scholarship Program

The California Teachers Association (CTA) provides multiple teacher scholarships of up to $6,000 for California residents pursuing a degree, credential, or certification for a teaching-related career. Applicants must be a member of a defined BIPOC group and either an active member of CTA or CTA Aspiring Educators, or a dependent child of a CTA member.

18. Dakota Corps Scholarship

The Dakota Corps Scholarship provides full-tuition scholarships to South Dakota students who commit to working in critical-need fields within the state, such as teaching, nursing, or engineering, after graduation. It’s awarded based on academic performance and a willingness to serve in high-demand professions in South Dakota’s rural or underserved areas.

19. Al Mance Memorial Scholarship

The Tennessee Education Association provides an Al Mance Memorial Scholarship (in addition to other scholarships) of $1,000 to a male undergraduate or graduate student of color who is enrolled in an education degree program at a Tennessee college or university.

20. Winifred R. Reynolds Educational Scholarship

The Denver Foundation provides awards of $1,000 to $7,000 for Colorado residents enrolled or planning to enroll in a master’s or doctorate level program in early childhood education, child development, or educational psychology. Applicants must demonstrate financial need and a cumulative GPA of 3.5 or higher.

Recommended: How Much Does GPA Matter When Applying to College?

21. Clara Onishi Educator Scholarship

The Clara Onishi Educator Scholarship, part of the Odo Scholarship Foundation, awards one scholarship of $1,250 each year for students enrolled in an accredited teacher education program. Recipients must be a Hawaiian resident and show intent to teach in Hawaii.

22. Minority Teachers of Illinois (MTI) Scholarship Program

The Illinois Student Assistance Commission provides scholarships of up to $7,500 each year for minority students who are enrolled at an Illinois undergraduate or graduate program that qualifies recipients to be licensed teachers upon completion. Recipients must be in-state residents and committed to teaching in Illinois after graduation.

23. Victoria Soto Memorial Scholarship

This four-year renewable scholarship of up to $12,000 is awarded by the Vicki Soto Memorial Fund to four recipients per year: two graduates of Stratford High School, one Connecticut recipient, and one national recipient. Applicants must be pursuing a college degree in education at an accredited school.

24. Teacher Education Scholarship

The Oregon PTA Teacher Education Scholarship offers scholarships of $1,000 for in-state residents studying at an Oregon public college or university to become elementary or secondary school teachers. The scholarship is a one-time award and available to graduating high school seniors or current college students.

25. First-Year Teacher Scholarships

The Texas Retired Teachers Foundation First-Year Teacher Scholarship provides numerous awards of $1,000 to recent college graduates entering their first year of teaching in Texas. Funds may be used to reimburse applicants for the costs of teaching certifications and classroom materials.

Recommended: How Much Does a Teacher Make a Year?

The Takeaway

Applying for multiple teacher scholarships can be a useful strategy to help pay for the cost of college, graduate school, and becoming an educator. The application processes can vary, so it may be helpful to explore and research scholarships that best fit your personal situation and educational and career goals.

It’s not uncommon for students to use multiple funding sources, including grants, scholarships, federal student loans, and private student loans to help cover the cost of college.

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 types of scholarships are available for aspiring teachers?

Scholarships for aspiring teachers include merit-based awards, financial need scholarships, and those focused on specific teaching areas such as STEM, special education, or early childhood education. Some scholarships are also offered for teachers pursuing advanced degrees or certifications in specific subjects.

How do I apply for a scholarship for teachers?

To apply for a teaching scholarship, you typically need to complete an online application, submit transcripts, write an essay, and provide letters of recommendation. Some scholarships may also require proof of enrollment in a teaching program or a commitment to work in underserved schools.

Are there scholarships for current teachers pursuing professional development?

Yes, many scholarships are available for current teachers looking to further their education, pursue advanced degrees, or earn additional certifications. These scholarships often focus on supporting teachers who want to specialize in areas like leadership, technology, or special education to enhance their professional skills.

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