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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. Checking your rate takes just a minute.

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.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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

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

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

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.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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

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

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

SOHL-Q424-002

Applying for scholarships can be overwhelming, especially if you’re required to submit multiple forms and write in-depth essays. However, there are scholarships out there that do not require you to write any essays. Some just ask for basic info, while others might let you submit a video instead.

Keep reading to learn more about the top no-essay scholarships for 2024 and how you can apply.

What Are No Essay Scholarships?

As the name suggests, no-essay scholarships do not require you to write an essay. You typically just need to fill out some basic information about yourself to enter. However, some no-essay scholarships might ask for a video, photo, or other creative entry instead.

Standard scholarships usually come with more hoops to jump through. For example, some may require you to have a specific GPA, provide letters of recommendation, and/or write an essay. No-essay scholarships can give you a break from all that while providing an alternative way to receive extra money for school.

It’s important to note that since this type of scholarship is usually more straightforward to apply for, no-essay scholarships often attract more applicants. Therefore, you may have more competition for the scholarship money.

Recommended: SoFi’s Scholarship Search Finder

How Can I Increase My Chances of Winning a No Essay Scholarship?

No-essay scholarships can be an easy way to get free money for school, but it’s important not to rely on them completely. Since they’re so simple to apply for, they attract a lot of applicants, which means more competition.

To improve your chances, try applying every time a no-essay scholarship opens up, whether it’s monthly or quarterly. Some even let you submit a video, which can help you stand out with a little extra effort and creativity.

It’s also smart to apply for a mix of scholarships and other financial aid options, not just no-essay ones. You can think of no-essay scholarships as a quick and easy break from the more time-consuming applications.

Recommended: How to Pay for College

Is There a Good Time to Apply for a No Essay Scholarship?

No-essay scholarship application deadlines vary — there’s no set “season” like there is for college and FAFSA deadlines. Each scholarship has its own timeline, so it’s important to keep an eye out throughout the year.

Whether or not a scholarship requires an essay, it’s a good idea to start applying as early as possible. For high school students, the summer between junior and senior year is a great time to begin. Remember, the more applications you send out, the better your chances of winning scholarship money.

If I Win a No Essay Scholarship, What Can the Funds Be Used For?

No-essay scholarships may have set rules for how you can spend your scholarship award, similar to how colleges and scholarship programs have specific application requirements.

Generally speaking, scholarship funds are meant for college expenses like tuition, fees, textbooks, and school supplies. However, some independent scholarships are more flexible and might let you use the money for things like housing, meal plans, or even technology.

Keep in mind that your scholarship might not cover expenses like transportation, groceries, off-campus dining, and clothing. And if you have any money left over, it’s a good idea not to spend it on unrelated expenses.

Sometimes, you may need to repay your award money if you use it on unrelated costs. Make sure to review the scholarship rules and guidelines before deciding how to use your scholarship money.

Types of No Essay Scholarships

There are usually two types of no-essay scholarships available for students: sweepstakes and video scholarships.

Sweepstake Scholarships

A scholarship sweepstakes is a type of no-essay scholarship where winners are chosen randomly, much like a lottery. As long as you meet the basic requirements and apply on time, you have a chance to win money to put toward your higher education costs.

Most of these scholarships don’t require extra materials, like transcripts or letters of recommendation, and many are awarded monthly or several times a year.

Keep in mind, though, that you often need to enter each month to stay eligible. So don’t just submit once and forget about it. Setting a reminder in your calendar can help you stay on track and improve your chances.

Recommended: Enter SoFi’s Monthly $2,500 Sweepstakes

Video Scholarships

Not all no-essay scholarships are entirely hassle-free. Instead of writing an essay, you might need to create and edit a five-minute video, which can take just as much time.

Choose the type of scholarship that plays to your strengths. If making videos is your thing, go for it. If writing is more your style, stick with that. Many scholarships offer flexibility in how you choose to express yourself.

Top No Essay Scholarships 2024

Here are a few top no-essay scholarships you can apply for in 2024.

“Be Bold” No Essay Scholarship

The “Be Bold” No-Essay Scholarship is a $25,000 award for students of any education level, field of study, state, or GPA. It’s an easy scholarship to apply for and the winner is the one who creates the “boldest” profile — one that is earnest, determined, and moving.

Project Yellow Light Hunter Garner Scholarship

The Project Yellow Light Hunter Garner Scholarship is an $8,000 award open to high school and college students who create a winning video that discourages distracted driving, especially phone use while driving. Project Yellow Light also offers a $2,000 scholarship for a radio competition and another $2,000 scholarship for a billboard competition.

Elks National Foundation Legacy Awards

The Elks National Foundation Legacy Awards is a $4,000 scholarship for high school seniors who are children or grandchildren of living Elks members or Lodge charter members (including stepchildren and legal wards).

Edvisors Scholarship

Edvisors Scholarship is a monthly, $1,000 scholarship open to students who are at least 17 years old and planning to attend or currently attending college in the U.S. Bookmark the page so you can come back each month and enter.

Niche No Essay Scholarship

The Niche No-Essay Scholarship allows high school and college students to apply for a chance to win $25,000 toward college expenses. Niche offers many additional scholarships you can look into, as well.

CampusReel Scholarship

To sign up for the CampusReel $2,000 no-essay scholarship, students must watch one student-led virtual tour, and then simply provide their name and email address.

SoFi Scholarship Giveaway

Enter SoFi’s monthly scholarship for a chance to win $2,500. This sweepstakes scholarship is for students over 17 enrolled or accepted in a college or university.

Sallie Mae College Scholarship

Sallie Mae also offers a $2,000 sweepstakes scholarship that’s awarded monthly and is open to high school juniors, seniors, and all college students.

Smart Owl No Essay Scholarship

The Smart Owl No-Essay Scholarship is a $1,000 award given out each month to four students. It is open to U.S. residents who are high school or college students aged 16 and older.

The “No Sweat” Scholarship

The Cirkled In “No Sweat” Scholarship is a $2,500 cash scholarship that’s open to students aged 13 and older. The application is quick and easy, taking just two steps to enter and complete your portfolio.

Who Can Apply for No Essay Scholarships?

Almost anyone in school can usually apply for no-essay scholarships. Whether you’re in high school, working on your undergrad, or even pursuing a graduate degree, there are options available for you.

For example, the Sallie Mae Scholarship is open to students at all levels. Plus, Sofi offers $2,500 no-essay scholarships to students every month.

Are Video Scholarships Easier to Apply for Than No Essay Scholarships?

With the rise of platforms like Instagram, YouTube, and TikTok, creating videos might feel more natural than writing essays. However, they may require more effort in planning, filming, and editing compared to no-essay scholarships.

But keep in mind, some video submissions may require a script, so a little writing could still be a part of the process. Writing a script can be similar to writing an essay — it might take a few tries to get it just right. That said, it can be a fun and creative alternative.

Do I Have to Be in College to Apply for a No Essay Scholarship?

You don’t have to be in college to apply for no-essay scholarships. In fact, starting your search early can improve your chances of winning. Some scholarships are even open to middle school students, so it’s never too soon to begin. Ideally, you should start exploring your options as early as freshman year of high school.

If you’re already in college, don’t worry. There are still plenty of scholarships you can apply for as long as you haven’t graduated.

The Takeaway

If you’re running low on financial aid for the school year, applying for no-essay scholarships can help cover some of your college costs. Some are like sweepstakes and pop up every month, so the more you apply, the better your chances. Others might need a bit more effort, like a video entry. Even though the award amounts might be small, the applications can be quick and give you a break from writing essays.

In addition to no-essay scholarships, you can apply for regular scholarships, grants, federal student loans, and private student loans. A combination of these, in addition to cash savings, can be used to 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

Can current college students apply for no essay scholarships?

Yes, no-essay scholarships are usually open to all students, from high school students up to graduate students. Whether you’re an undergrad or working toward a graduate degree, there are plenty of no-essay scholarship opportunities available to you.

Can you get scholarships without essays?

Yes, you can get scholarships without writing essays. No-essay scholarships typically require you to share some basic personal information, and sometimes you might have the choice to submit a video instead of an essay.

Has anyone actually won a no essay scholarship?

Students win no-essay scholarships all the time. However, keep in mind that some require exceptional talent, while others act more like sweepstakes contests with fewer requirements but more competition.

Photo credit: iStock/yasindmrblk

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

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

SOISL-Q324-090

With average annual tuition and fees reaching $11,260 for in-state students at public four-year colleges and $41,540 for private universities, covering college expenses can feel overwhelming. Scholarships for high school juniors may be just what you need to make college more affordable.

Whether you’re aiming for a four-year university or a community college, there are plenty of scholarships designed specifically for high school juniors in the class of 2026. Unlike student loans, scholarships are free money for college and don’t need to be paid back.

Keep reading to learn about some of the best scholarships available for high school juniors and how they can help you take that next step toward your college career.

How Do I Qualify for High School Junior Scholarships?

To qualify for scholarships as a high school junior, start by maintaining strong academic performance, since many scholarships are merit-based and require a minimum GPA.

Research scholarships that match your interests, background, or intended college major. You should also try to participate in extracurricular activities, leadership roles, and community service, which are often key factors for many scholarship applications.

Some scholarships may also consider financial need, requiring you to submit the Free Application for Federal Student Aid (FAFSA). Additionally, sign up and prepare for standardized tests like the SAT or ACT, because scores can be a qualifying factor for many awards. Keep deadlines in mind and apply early.

Recommended: What Types of Scholarships Are There?

How to Find Scholarships for High School Juniors

While you’re completing your junior year, there are plenty of resources to help you find scholarships, including:

•   The financial aid office at the college or career school you’re considering

•   Organizations and professional groups connected to your interests

•   Federal agencies that offer financial aid

•   Free scholarship search tools, like the Scholarship Search Tool by SoFi

•   Local organizations, such as libraries, businesses, nonprofits, and other community groups

It’s important to understand that not all scholarship opportunities are legitimate. For example, it’s probably a red flag if someone asks you to pay to apply or find scholarships. Remember that you should never have to pay to enter a scholarship, so it’s best to avoid those kinds of offers.

What Is the Easiest Scholarship to Get in High School?

While some scholarships require a good amount of work, like writing essays or gathering recommendation letters, others are much easier to apply for. For example, no-essay scholarships are often the easiest to apply for because they typically have minimal requirements, such as being a certain age.

There are two main types of no-essay scholarships: sweepstakes and video scholarships. With sweepstakes scholarships, you don’t typically need to submit grades, test scores, or essays. Instead, you might just need to fill out a short form, provide some basic information about yourself, or answer a few questions.

Keep in mind that since these scholarships are easier to apply for, there’s often more competition, which can lower your chances of an award. Even though junior year is busy, it’s a good idea to apply to as many as you can to boost your chances of receiving a no-essay scholarship.

On the other hand, video scholarships require you to create something, like a five-minute video explaining why you deserve an award. For some, this may be easier than writing an essay and gives you a different way to showcase your strengths.

Recommended: Enter SoFi’s Scholarship Giveaway for $2,500

Best Scholarships for High School Juniors

Here are some of the best scholarships for high school juniors to apply for in 2024 and 2025:

1. United States Senate Youth Program

Award: $10,000

The United States Senate Youth Program (USSYP) is open to high school juniors and seniors interested in a career in public service. Applicants must demonstrate leadership skills by serving in an elected or appointed role, such as student government, education, public affairs, or community service.

2. G2 Overachievers Student Grant

Award: $15,000

The G2 Overachievers Student Grant is for middle and high school honor roll students between the ages of 13 and 19. To apply, you must submit a 1,000 to 2,000 word handwritten essay about how you (or the person you’re nominating) are making a difference in your community and deserve to be recognized for it.

3. The Christophers High School Poster Contest

Award: $1,000

U.S. high school students, from freshmen to seniors, can enter the Christophers 35th Annual Poster Contest. To apply, simply create a poster featuring the phrase “You can make a difference” and illustrate how one person can positively impact the world.

4. Create a Greeting Card Scholarship Contest

Award: $10,000

The Create-a-Greeting Card Scholarship Contest is open to all U.S. high school and college students that are 14 years and older. To enter, simply create an original greeting card design. Your design can be a Christmas card, holiday card, birthday card, or an all-occasion greeting card.

5. Voice of Democracy Scholarship Competition

Award: $35,000

High school students can win the Voice of Democracy award by submitting a three- to five-minute audio essay on the topic “Is America Today What Our Forefathers Imagined?” The Veterans of Foreign Wars (VFW) also offers other scholarships, with awards ranging from $1,000 to $21,000.

6. We the Future Contest

Award: $2,000 – $5,000

High school students starting in freshman year can win the We the Future Contest by creating a 500-700 word essay, song, STEM project, short film, social media video, or public service announcement (PSA) on a Constitution-related topic.

7. Carson Scholars Fund

Award: $1,000

The Carson Scholars Fund is for students in grades four through 11 who do well in school and are committed to making a difference in their communities. To apply, you need a GPA of at least 3.75 and must show a strong commitment to community service.

Carson Scholars Fund

8. International Public Policy Forum (IPPF)

Award: $10,000

The Brewer Foundation and New York University (NYU) offer the International Public Policy Forum award to teams of at least three students from the same school. As a team, you’ll write a 3,000-word essay on “Resolved: Equitable access to pharmaceuticals should be prioritized over protecting intellectual property rights.” The top 64 teams will move to a written round, and the top eight teams will compete in a final oral debate.

Recommended: How to Pay for College

The Takeaway

Kicking off your scholarship applications during junior year gives you a head start and helps you find more options to pay for college. The more scholarship money you earn, the less you’ll need to pay in tuition and other expenses.

In addition to scholarships, students can pay for college with cash savings, grants, federal student loans, and private student loans.

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

FAQ

Should you start applying for scholarships as a junior?

Even though your junior year is a good time to apply for scholarships, you don’t need to wait until then. You can start anytime in high school, which gives you a jumpstart and can open up more scholarship opportunities.

What is the youngest age you can get a scholarship?

You might be able to find scholarship opportunities for kids as young as the age of four. While this may seem a tad early, starting as soon as possible gives you more time to plan for future college costs.

What are the most sought after college scholarships?

Some of the most sought-after scholarships include The Gates Scholarship and the Coca-Cola Scholars Program. However, these popular scholarships are usually available only to high school seniors and can be pretty competitive. So, to increase your chances of winning, it’s a good idea to apply for a mix of different scholarships.

Photo credit: iStock/shapecharge

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

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

SOISL-Q324-089

Whether you’re dreaming of designing your own software or diving into cybersecurity, a computer science degree is a great way to launch your career. But figuring out how to pay for school can feel overwhelming, especially if your savings doesn’t cover all of your college costs. That’s where scholarships come in.

Computer science scholarships can help with tuition without adding extra debt. Since most scholarships have specific requirements you must meet to apply, it’s important to do your research and find the ones that are the best fit for you.

Here’s a look at the top scholarships for computer science majors, including how to find scholarships and tips for applying.

How to Find Scholarships for Computer Science Programs

There are many ways to find scholarships that could help cover computer science program costs. To start, reach out to the financial aid office at the school you’re planning to attend or begin searching online.

Here are some additional places to look:

•   Scholarship search sites, such as SoFi’s Scholarship Search Tool

•   Local resources, including libraries, businesses, and community organizations

•   The U.S. Department of Labor’s FREE scholarship search tool

•   Your employer or your parents’ workplace

•   Your library’s reference section

•   Your high school counselor

•   Professional organizations related to the computer science industry

•   Charities, faith-based or community groups, local companies, and service organizations

Word of caution: Always double-check that scholarship offers are legit. If someone asks you to pay to find scholarships or other financial aid, it’s probably a scam.

Why Undergraduate and Graduate Students Pursue Computer Science

Computer science is a fast-growing field, with more and more opportunities opening up every day. Degree programs let you dive into the latest tech and computer theories, preparing you to come up with innovative solutions to today’s challenges.

Some students combine computer science with other areas they’re interested in, like biology, business, security, or public policy, to tackle a wider range of complex problems. And with an average salary of $104,610 a year, computer science is definitely an appealing field to specialize in.

Recommended: How to Pay for College

Computer Science Scholarships for High School Students

Here are some scholarships to consider if you’re looking to fund your education in computer science or related fields.

Generation Google Scholarship

Scholarship amount: $10,000

Application deadline: Closed for 2024

Generation Google Scholarship offers $10,000 to help future computer scientists thrive in tech. To qualify, you need to be a high school senior or currently enrolled full-time in a bachelor’s program at an accredited university. You must also demonstrate a strong academic record and financial need.

Golden Door Scholarship

Scholarship amount: Funding for a four-year degree

Application deadline: Fall 2025 now open

The Golden Door Scholarship provides funding for a four-year degree for students studying software engineering, nursing, data analytics, or business analytics at GDS partner schools. Applicants must reside in North Carolina, South Carolina, or Georgia to be considered.

Stantec Equity & Diversity Scholarship

Scholarship amount: $1,500-$10,000

Application deadline: October 14

The Stantec Equity & Diversity Scholarship awards $200,000 annually in scholarships ranging from $1,500 to $10,000, plus 10 paid internships each year. To qualify, you must be pursuing a STEAM (science, technology, engineering, art/architecture, and mathematics) major and belong to a historically underrepresented population or group.

National Space Club and Foundation Keynote Scholar

Scholarship amount: Up to $15,000

Application deadline: November 15

The National Space Club and Foundation Keynote Scholar offers a scholarship up to $15,000 and the chance to give the keynote address at the annual Goddard Memorial Dinner. To qualify, you must be pursuing a degree in a STEM field, ideally with a focus on space.

IEEE Presidents’ Scholarship

Scholarship amount: $10,000 over four years

Application deadline: Varies

The IEEE Presidents’ Scholarship provides $10,000 over four years of undergraduate study, plus an IEEE Student membership. Second- and third-place winners receive $600 and $400, respectively. To qualify, you must present a project and be a finalist at the Regeneron International Science and Engineering Fair.

Regeneron Science Talent Search Scholarship

Scholarship amount: $250,000

Application deadline: November 7

The Regeneron Science Talent Search Scholarship is an annual science competition where high school seniors submit original research to win a first-place prize of $250,000, recognizing the next generation of STEM leaders.

ISC2 Undergraduate/Associate Scholarships

Scholarship amount: Up to $5,000

Application deadline: February 25

The ISC2 Undergraduate/Associate Scholarships awards range from $1,000 to $5,000, with funds sent directly to the school for tuition, fees, books, and materials. To qualify, you must be pursuing an undergraduate degree in cybersecurity or information assurance.

Recommended: What Types of Scholarships Are There?

Tips for Applying for Computer Science Scholarships

Applying for computer science scholarships — or any scholarship, for that matter — is a bit different from applying to colleges. Each scholarship has its own set of rules, deadlines, eligibility criteria, award amounts, and required paperwork. To avoid missing out, it’s important to stay organized.

Here are a few tips that can help you do just that:

Get a head start: Many scholarships begin accepting applications at the beginning of the year for the following school year. Start searching in advance to give yourself plenty of time to make sure you can meet all the requirements and hit all the deadlines.

Expand your search: You don’t have to stick to just computer science scholarships. You can explore other options related to your background, academic achievements, and talents. For example, sweepstakes scholarships, like SoFi’s Scholarship Giveaway, often offer awards simply for filling out an entry form.

Create a list: Jot down scholarships you’re interested in and their requirements. Then organize them by deadline to make sure you apply on time.

Get your materials ready: Even if the application window isn’t open yet, you can still start preparing. Begin with the basics — update your resume, gather letters of recommendation, and find out how to request transcripts. Then you’ll be ready to focus on writing any essays specific to each scholarship.

Submit as many scholarship applications as you can: With thousands of applicants competing for each scholarship, only a handful will be chosen. Boost your chances by applying to every scholarship that fits, even the smaller ones offering $100 to $500. Those smaller awards can add up, and you might have a better shot with scholarships that others overlook.

Create a backup financial plan: Scholarships can be a big help, but it’s wise to have other options lined up just in case. Make sure to fill out the FAFSA® to see what loans, grants, and other scholarships you might qualify for. Also consider exploring other funding options, like private student loans, to cover any gaps that federal financial aid won’t cover.

Extra Ways to Fund Your Computer Science Degree

Scholarship money might not always cover all of your college expenses. If you don’t have savings set aside, you might need to explore other financial aid options, like federal loans and grants.

Here are some ways to help you cover your college costs.

•   Grants: Grants can come from the government, your school, or private organizations. And like most scholarships, you don’t have to pay them back.

•   Federal student loans: Federal student loans are backed by the government and they usually don’t require a credit check. They come with fixed interest rates and offer extra benefits, like flexible repayment plans, income-driven options, and even potential loan forgiveness.

•   Private student loans: If federal aid and scholarships aren’t enough, private student loans can be an option to cover the remaining college costs. These loans can have fixed or variable rates and often need a credit check or cosigner. Just keep in mind that private loans don’t offer the same protections as federal loans do, like income-driven repayment plans.

The Takeaway

When looking for ways to fund your computer science degree, applying for scholarships can be a smart move. Keep in mind that the earlier you start exploring your options, the better your chances of finding and winning scholarship money.

If your scholarship award doesn’t cover all of your college costs, it’s worth exploring other ways to pay for school. It’s best to fill out your FAFSA to see what aid you qualify for. And remember, if federal aid isn’t enough, private student loans can help cover the remaining costs.

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

How can I get a scholarship for computer science in the USA?

If you’re looking for a computer science scholarship in the U.S., a great place to start is your school’s financial aid office — they might know about some you haven’t found yet. Just be sure to check the requirements and deadlines, and apply to as many as you can to increase your odds of receiving scholarship money.

How can I study computer science for free?

Schools like Harvard, Stanford, and MIT offer free online computer science courses, and some even give you a certificate when you complete the course. But if you want an actual degree, you’ll usually need to enroll in a college or university, which means you’ll typically need to pay tuition and other higher education costs.

Is Harvard computer science free?

Harvard University offers several free online computer science courses, including the popular CS50 intro course. While anyone can take these courses, earning a full computer science degree from Harvard still requires enrolling at the university and paying tuition.

What is the Microsoft tuition scholarship?

Microsoft hands out scholarships each year to students in computer science and other STEM fields. It offers partial tuition assistance to outstanding students who are passionate about technology, maintain excellent grades, and show leadership in the tech world.

Photo credit: iStock/shironosov

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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

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

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

SOISL-Q324-088