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A performing arts college curriculum aims to give students the knowledge, tools, and training to be working artists. Performing arts majors get to study all aspects of their craft and gain practical experience. A degree in the performing arts can give grads a leg up on the competition, through more polished skills and valuable connections in the business.

A wide variety of job options are available within the arts sector. Here, we’ll explain the main types of performing arts degrees, and the kind of jobs available to grads as performers and behind-the-scenes pros.

What Are the Performing Arts?

In the performing arts, an artist uses their body, voice, or a musical instrument to express a story or feelings. Art forms include theater, film, vocal and instrumental music, opera, comedy, dance, puppetry, spoken word, and even magic and circus acts.

The performing arts differ from the visual arts, in which artists express themselves through means such as photography, painting, drawing, and sculpting.

What Are the 4 Main Types of Performing Arts?

Performing arts degrees are typically geared toward one or more of these areas.

1. Drama

Drama includes not just acting, but also speech, stage movement, voice work, theater history, and dramatic literature. Other specialties in the drama category include directing, stage management, playwriting, musical theater, and scene design. Students learn all the elements that go into a theatrical production.

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2. Dance

Dance aims to communicate emotion, story, and character through the use of movement. Jazz, ballet, tap, and hip-hop are just a few types of dance included in a performing arts program. Dance performances often have musical accompaniment, and the emotions stirred up by the music frequently come through in a dancers’ body language.

3. Music

Music majors are exposed to all facets of music, from playing an instrument to composing and musical directing. In some college programs, singing is also included. All types of music are covered, such as classical, jazz, opera, pop, and folk. Music can be vocal or entirely instrumental.

4. Singing

Singing is defined as the activity of making musical sounds with your voice. Singing is a form of creative expression, merging words and music, that requires talent and training. Singers can perform solo or as part of a group, as in a choir, band, or musical theater. As mentioned above, voice can be part of a music specialty in a performing arts degree program, or fall under the drama category, for musical theater majors.

What Is a Performing Arts Degree?

A performing arts degree is a diploma earned through completing classwork in various disciplines like dance, music, and drama. Curriculums typically combine concentrated theoretical and historical study with performance practice.

Along with the designated coursework, most performing arts programs require students to gain real-world experience under the supervision of a trained professional. This might come in the form of a paid or unpaid internship, such as working as an assistant to a director or to a sound engineer in a recording studio.

Earning a degree in the performing arts shows you’re serious about your craft and dedicated to learning it. It means you’ve studied intensively and are prepared to pursue your talent in a professional way.

What Can You Do With a Degree in Performing Arts?

The world of performing arts offers a wide array of career choices, either in front of an audience or backstage. One of the most common choices is teaching or private coaching. You can do this through a professional school, community organization, after-school program for kids, or on your own.

•   Actors can find work as voice-over artists, stand-ins for principal actors on a film or television production, understudies, stand-up comedians, podcasters, or hosts of live or recorded programs. Actors can also demo products at corporate conferences, become tour guides, or serve as master of ceremonies for events or comedy shows.

   Other possible career paths include becoming a drama therapist, public speaking coach, talent agent, casting director, director, producer, theater or film critic, playwright, screenwriter, dramaturg, stage manager, or arts administrator.

•   Singers can work in musical theater, cabaret, or as a professional member of a chorus or choir. They may aspire to become lead singer of a band or a backup performer for other artists, in live performances or in a recording studio. Singers can also find jobs singing on cruise ships, in lounges and nightclubs, teaching voice, or as songwriters.

•   Musicians can pursue a number of careers, including musical director or conductor, composer, arranger, sound engineer, or music software programmer. There are even music ministers, who work for a religious organization on musical arrangements used in weekly services, weddings, and funerals.

   Jobs for musicians are similar to those open to singers. Options include working as a band or orchestra member, part of a jazz trio, or backup musician during recording sessions. Some musicians find success working behind the scenes, as a talent agent or a tour manager.

•   Dancers can find work as an artistic director for a dance company, a choreographer, or a dance teacher. With additional training, dancers can become movement or fitness specialists, such as physical therapists, personal trainers, or Pilates instructors.

With additional training, a performing artist can become a drama, music, or dance therapist. These professionals help people improve their mental health and well-being by incorporating techniques and exercises in their specialty. For example, a drama therapist might use storytelling or role-playing to help work through behavioral problems and emotional challenges. Other options are included in our list of the best jobs for extroverts.

Can I Get a Performing Arts Degree Online?

Yes, you can, though the opportunities aren’t as plentiful. Because you need hands-on experience to train in the performing arts, learning online is not ideal or beneficial to mastering your craft. For instance, if you’re taking an acting class, learning how to move around a stage, project your voice properly in a theater, and connect with a live audience is much more difficult, if not impossible, to do online.

Some effective online courses are designed for virtual students. Introductory classes offering an overview of the theatrical arts, playwriting, costume design, or music theory can easily be taken online. Enrolling in some online courses can help students get prerequisites out of the way. But there will most likely be courses requiring you to appear in person for practical experience.

Typical Performing Arts Degree Courses

The performing arts courses you’ll take will depend on the speciality you’ve chosen: drama, music, dance, or an interdisciplinary degree that combines elements of two or more specialties. Courses will differ depending on the school you attend and your degree level.

Usually, a performing arts degree curriculum will begin with general education classes. Academic lectures will deal with the theory and history of the performing arts. Practice-based classes focus on technique and craft. Finally, field-based, experiential learning is key.

While pursuing your degree in performing arts, you’ll most likely be able to take elective courses that fall outside your department, such as psychology or political science.

Common Performing Arts Degree Requirements

When it comes to academic requirements, some schools or courses will be more specific than others. Bachelor’s degrees typically take four years to complete if you’re a full-time student. An accelerated performing arts program may require less time.

Most schools require students to complete a mix of classes specifically related to their chosen major. Other foundational courses such as theory, stagecraft, performing arts history, and literature are needed to fulfill the degree requirements.

What Is the Highest Degree in Performing Arts?

As with many other college majors, performing arts degrees range from an associate’s degree to a Ph.D. However, the most common performing arts degree earned in the field is a Bachelor of Arts (BA) or a Bachelor of Fine Arts (BFA). Although less common, some schools award a Bachelor of Performing Arts (BPA).

There is a practical distinction between a BA and BFA in performing arts. A BA program requires more liberal arts coursework (such as English, math, and science). A BFA program primarily consists of courses in creative disciplines, with the ratio strongly favoring creative classes.

Performing arts master’s degrees can benefit individuals who want to advance their expertise or teach at the college level. Ph.D. programs in the performing arts are geared to those with plans to become researchers or tenure-track professors.

Performing Arts Degree Jobs

There are countless occupations within the realm of performing arts. Here are some of the more popular and in-demand jobs:

•   Producer. A producer acts as a behind-the-scenes executive decision maker. Projects include stage, film, and television productions. Duties of a producer include securing funding for the production, managing the budget, making business decisions, and collaborating with the director on hiring talent and crew.

•   Director. These professionals guide a theatrical production from start to finish. Directors are responsible for auditioning and casting actors, instructing the actors during rehearsals, assembling a production team, and supplying a vision for the project and a unique understanding of the text. They may also work with producers to ensure the project proceeds on budget and on schedule.

•   Writer. If you have a talent for writing and take writing courses while pursuing your performing arts degree, you can parlay your skills into playwriting, screenwriting, or reviewing for a media outlet. Writers may start out as a writer’s assistant on a television show and work their way up to becoming a showrunner, the person who oversees all aspects of a series and is often the head-writer. Or, if you focus on drama or music in school, a lyricist can be a satisfying career path.

•   Teacher. There’s always a need for educators in the performing arts. You can become a drama, dance, or music teacher in a school, conservatory, or community setting. If you achieve an MA or MFA, you can be a professor at the undergraduate or graduate level, create your own class, or work as a private coach. Sometimes, experience honed in the field as a working performing artist is more than enough to teach what you know to others, without requiring anything more than a bachelor’s degree.

•   Musician. The world of music offers myriad jobs. As mentioned earlier, if you sing or play an instrument, you can perform in a band, as part of an orchestra, or as a session musician, backing up another artist in a recording studio. Other sought-after jobs in the music industry include making music for video games, guitar technician, piano tuner, or staff musician who performs on cruise ships, at theme parks, and for music production houses that create music for specific clients.

Recommended: Jobs That Pay For Your College Degree

Ways to Pay for a Performing Arts Degree

Paying for a performing arts degree isn’t any different from paying for other college degrees. You can use both federal and private student loans to finance your performing arts education, along with scholarships and grants.

The first place to start is by applying for federal student aid. With the ever increasing cost of college tuition, even middle class students are encouraged to apply for financial aid. The Free Application for Federal Student Aid form (FAFSA®) will help you line up federal scholarships, grants, federal student loans, and work-study programs.

You can find additional grant and scholarship listings at sites such as collegegrant.net, collegescholarships.com or scholarships.com. SoFi also offers a helpful scholarship search tool.

If your federal student aid offer doesn’t cover your cost of attendance, private student loans are also available. Unlike federal student loans whose terms and interest rates are set by the government, private loan terms and interest rates are set by the lender, based on the borrower’s credit history. Private student loan interest rates are usually higher than the rates on federal student loans.

The Takeaway

A degree in the performing arts provides you with the knowledge and skills you need to embark on an artistic career. The four main areas of study are drama, dance, music, and singing, though students may combine courses from different specialties. There is a wide variety of occupations in the artistic arena that can keep you employed while you live a creatively expressive life. Some popular careers include producer, director, screenwriter, teacher, arts administrator, and stage manager. And of course, you may also aspire to become an actor, musician, dancer, or other performer.

3 Student Loan Tips

1. Can’t cover your school bills? If you’ve exhausted all federal aid options, compare private student loans. Private loans can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.
2. Would-be borrowers will want to understand the different types of student loans peppering the landscape: private student loans, federal Direct subsidized and unsubsidized loans, Direct PLUS loans, and more.
3. Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

FAQ

What are the advantages of earning a degree in the performing arts?

A degree in performing arts can help set you apart in experience and skill level from other artists who don’t have a performing arts degree. Immersing yourself in your chosen major gives you the tools and confidence you’ll need later on. You’ll also be studying under faculty members who are not only valuable mentors but professional connections.

What skills do I need to get a job in the performing arts?

Besides having talent and training, certain attributes increase the likelihood you’ll be successful in your career. Employers in the performing arts sector look for people who are flexible, collaborative, cooperative, disciplined, and resilient. Other important skills include the ability to take direction, being a quick learner, and the ability to manage your time efficiently.

Is a degree in performing arts worth it?

It definitely can be. Extensive study helps lay the foundation for your training early on and lets you build on your natural abilities with practical experience. Working toward a performing arts degree allows you the opportunities to flex your muscles by performing in college productions and working internships outside of school.

These are achievements you can put on your resume that show you’ve already gotten hands-on experience. Graduating with a performing arts degree shows you’re serious about your intentions and have done the intense work to perfect your craft.

Photo credit: iStock/blanaru

SoFi Private Student Loans
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NOTE: This quiz is in no way recommending specific colleges or universities (SoFi doesn’t endorse nor are we affiliated with any college or university), but rather the type of college or university that might work with your personality and goals. Above all, this is meant to be a fun tool and a very, very preliminary source of information to supplement your decision-making.

Selecting a college is a personal decision. Broadly speaking, there are three major types of higher education institutions — public universities, private colleges, and community colleges and trade schools. Each of these categories offers students different academic opportunities, and has their own sets of pros and cons.
Continue reading for information that can help you determine which college option might make the most sense for your academic goals and priorities.

Brainstorming a Broad List

According to the most recent information available from the National Center for Education Statistics, as of 2020 were 3,982 degree-granting postsecondary institutions, ranging anywhere from large public universities to more intimate liberal arts colleges, with a wide range of choices in between.

As a first step, consider reflecting on what is most important to you for your college experience. Some factors to consider to help you decide might include:

•   four-year college or a two-year/vocational option

•   public school or a private college

•   nonprofit college or a for-profit college

•   large university or liberal arts college

•   bustling city or a quiet rural environment

•   Stay in-state or venture further away from home

Using your academic goals and personal preferences, create a list of options to explore further. There are a variety of resources available to students such as BigFuture from The College Board or EducationCorner.com. Consider consulting with your guidance counselor for recommendations and suggestions that can help you build your list of potential schools.

If you have friends or family who have already gone through the college application process, ask them about their experience and see what advice they have to offer. This could be insightful as you build your personalized list.

In addition to academic factors like class size and majors, and the location of the school, don’t forget to consider how extracurriculars fit in. Are you interested in playing sports? Do you want to join a college newspaper or TV station? Each of these can impact your college experience so it’s important to think about what you want.

For additional help, we’ve created a quiz that allows you to make a series of high-level choices about what type of college might be best for you:

Prioritizing Your Options

After making your broad list of potential college options, you’ll likely need to prioritize. As you finalize how many college you’re going to apply to, consider including choices from each of these three categories; it can make sense to apply to a couple each of:

•   Match (or target) schools, These are schools where your academic qualifications meet what the school has been accepting as an average freshman, or perhaps slightly exceed them

•   Reach schools, ones where your academic qualifications are below what the school typically requires for average freshmen; perhaps your leadership skills or extracurriculars will make up the difference and you’ll get accepted

•   Safety schools, where you can be fairly confident of acceptance

Continue reading for more information on the different academic options available to students — public universities, private colleges, and community colleges and trade schools.

Public Universities

Public colleges and universities, in general, have been funded by state governments with the goal being to provide people who live there with a college education. This began as early as the 1800s and, even today, state governments pay a significant amount of the operational costs of public universities. They also appoint boards for oversight purposes.

Because public funds are used to subsidize education at a public university, up-front tuition prices are typically lower than at private colleges. Generally, students who live in-state will receive a lower tuition rate than those who are attending the school from out-of-state.

Public universities tend to be bigger in size and scope, offering more degrees than a private college. Class sizes are often larger in public universities than at private colleges. But, larger institutions may offer students access to state-of-the art facilities, libraries, and research. Top-tier faculty and professors are attached to the research potential at large universities, and therefore, students have the opportunity to learn from some of the best in their field.

While public colleges and universities can offer an affordable tuition combined with exceptional facilities and well-respected professors and research opportunities, the large campus and class sizes could be a considerable con for students who thrive on more personalized instruction.

Private Colleges

Unlike public universities, which are funded at least in-part by taxes and state funding, private colleges are independently run institutions of higher education. Generally, private colleges are smaller than public colleges and may offer smaller class sizes and more personalized instruction.

Because the schools are smaller, private colleges may offer fewer choices in majors than their larger public counterparts. That said, the smaller campus and student body can help folster a close-knit community. Like public universities, private colleges also focus on providing students with highly qualified professors and instruction.

Tuition costs at private colleges can be higher than at a public university, however, private colleges may offer more merit aid to students than a public school. It’s usually worth comparing and contrasting financial aid packages to determine which school will be the most affordable for you.

Community Colleges/Technical Schools

Community colleges generally offer associate’s degrees, which typically take about two-years to achieve. After completing their associate’s degree, students can transfer to a four-year college or university to complete their bachelor’s.

Technical schools generally offer a specific certification to students who complete the course of study. Most often, technical schools focus on courses that allow students to build an occupation skill set, so they’re able to start work in their chosen field immediately after completing technical school.

Both technical schools and community colleges can be more affordable than public or private colleges. In addition to the cost of tuition being more affordable, students in these programs may be able to live at home which can help cut down on living expenses.

Community college can be a good option for students who want to explore different fields or cannot afford to go to a four-year college immediately after high school. If you plan to transfer to a four-year college after completing your associate’s at a community college research the minimum transfer requirements at the universities you want to apply to. Consider speaking with an admissions or guidance counselor with any questions.

Financial Considerations

As you decide which colleges to apply for, take into consideration how you can finance your education. Often, students will rely on a mix of federal student loans, scholarships, grants, or private student loans to pay for their education. Scholarships and grants are gift aid that generally does not need to be repaid.

Want to learn more about scholarships, grants, and student loans? Check out SoFi’s Financial Aid 101 series to find funding options for your college education.

Both federal and private student loans need to be repaid. Federal student loans are part of federal financial aid and to apply, students will need to fill out the Free Application for Federal Student Aid (FAFSA®) each year. Private student loans can be a tool to help students pay for college after they’ve exhausted their other options. That’s because private student loans aren’t required to offer the same benefits and borrower protections — things like income-driven repayment plans or deferment options — as federal student loans.

If you decide to apply for private student loans, get a few quotes and carefully consider the loan options and terms available to you. In some cases, you may need to add a cosigner to the application in order to get approved, or to potentially qualify for more competitive interest rates.

As mentioned, it often takes a combination of financial resources to pay for college including savings, scholarships, grants, and student loans. If you have your parent’s support, work with them to create a plan that makes sense for your situation. Guidance counselors may also be able to provide resources on the different types of funding available and information on local scholarships that you might want to apply for.

The Takeaway

Students can choose between public universities, private colleges, or community colleges and technical schools to further their education. The right choice for you will depend on your academic goals, current financial situation, and personality and preferences for learning environment.

Public universities can be more affordable and offer research opportunities, while private colleges generally have smaller class sizes and more personalized instruction. Community colleges are a cost-effective way for students to explore their interests and fulfill their prerequisites before transferring to a four-year university. Technical schools can make sense for students who are passionate about a particular trade or occupation that doesn’t require a four-year degree.

Paying for each of these options may require a combination of resources. Private student loans may be one resource if you’ve exhausted all other options. If you’re interested in adding private student loans into your college funding mix, consider SoFi. Private student loans with SoFi have no origination fees or pre-payment penalties and you can find your rate in just a few minutes in a way that won’t affect your credit score^*.

^*Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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 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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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

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For sellers, the idea of multiple offers on the home they’ve put on the market is a dream. But for buyers, it can be a big source of stress: How can you get your bid to stand out and be the one selected? This is especially challenging in today’s seller’s market, when bidding wars and stiff competition has become more common.

So do you want to know how to compete against multiple offers on your dream house? You’re in the right place.
Here, you’ll learn some strategies and secrets that can help give you a competitive edge, from boosting your earnest money to waiving contingencies.

Read on to find out:

•   How to compete against multiple offers in a buyer’s and a seller’s market

•   How to collaborate most effectively with a buyer’s agent

•   How to increase your chances of competing against multiple offers on a house.

Multiple Offers in a Seller’s Market

A seller’s market means the demand for houses is greater than the supply for sale, causing home prices to increase and often giving sellers a serious advantage.

It can get pretty competitive for those who need to buy a house, and multiple offers on a house become the new norm.

Seller’s markets and the frequency of multiple offers can happen for a few reasons:

•   More houses typically go up for sale during peak homebuying season in the summer, so seller’s markets are more common in the winter when inventory is low.

•   Cities that see steady population growth and increased job opportunities often experience a higher demand for housing, leading to multiple interested buyers making offers on limited inventory.

•   A decrease in interest rates could mean more people are able to qualify for mortgages, causing an uptick in homebuyers that might work to the seller’s advantage. More interested parties can mean more negotiation power.

As of the end of 2022, despite rising interest rates and waning home construction, there has nevertheless been a hot market, with demand outstripping supply. According to NAR (the National Association of Realtors®), one in four houses on the market receives enough bids to sell above asking price – a significant amount of competition.

Multiple Offers in a Buyer’s Market

In a buyer’s market, there’s a greater number of houses than buyers demanding them. In this case, homebuyers can be more selective about their terms, and sellers might have to compete with one another to be the most sought-after house on the block.

In a buyer’s market, house hunters typically have more negotiating power. The number of offers on the table is usually lower than in a seller’s market, and the winning bid is often lower than the listing price.

In other words, you are likely to be better positioned to get a good deal.

Are Buyers’ Agents Aware of Other Offers?

Unless house hunters are buying a house without an agent, there are certain cases where the buyer’s agent could be tipped off to other offers on the house. This insight could help you hone your offer to be the winning bid.

A lot of it depends on the strategy of the sellers’ agent and whether it’s designed to stir up a bidding war with obscurity or transparency. Either way, the sellers and their agent could choose to:

•   Not disclose whether or not other buyers have made offers on the property.

•   Disclose the fact that there are other offers, but give no further transparency about how many or how much they’re offering.

•   Disclose the number of competing offers and their exact terms and/or amounts.

It’s up to the sellers and their agent to decide which strategy works best for their situation and, according to the National Association of Realtors® 2020 Code of Ethics & Standards of Practice, only with seller approval can an agent disclose the existence of other offers to potential buyers.

However, as you might guess, it can stir up more heated bidding if it is revealed that there are multiple offers. A prospective buyer might learn that intel and hike up their bid or offer other concessions, such as foregoing an inspection.

How Do Multiple Offers Affect a Home Appraisal?

What happens in the event of an all-out bidding war? Say a house comes on the market where few other properties are available, and it has all kinds of dream amenities: an outdoor pizza oven and slate patio, the perfect family room with a wall begging for a ginormous flat screen, a spa-style bathroom with soaking tub, and all kinds of energy-efficient bells and whistles.

Some buyers may be tempted to keep increasing their offer to one-up the competition. Unfortunately, this could lead to drastically overpaying for the house. And when it comes time for the mortgage lender to approve the loan, they may think the home isn’t worth all that money.

In these cases, buyers can add an appraisal contingency to their offer, asserting that the appraised value of the property must meet or exceed the price they agreed to pay for it or they can walk away from the deal without losing their deposit.

But what about in competitive seller’s markets when making mortgage contingencies could mean losing the deal? In those cases, buyers might have to put down extra money to bridge the gap between what their lender is willing to give and what they offered.

Think carefully in this situation about what you would do if the only way to nab your dream home would be to come up with more cash. For some people, it might be possible (perhaps by borrowing from family); for others, it would mean walking away or risk overextending oneself and blowing one’s budget.

Recommended: Home Affordability Calculator

How Can Buyers Beat Other Offers on a House?

Are you wondering, “But how can I compete against multiple offers on a house?” There are a few things homebuyers can do to improve their odds of winning when there are multiple offers on a house. Consider the following options:

A Sizable Earnest Money Deposit

Earnest money is a deposit made to the sellers that serves as the buyers’ good faith gesture to purchase the house, typically while they work on getting their full financing in order.

The amount of the earnest money deposit generally ranges between 1% and 3% of the purchase price, but in hot housing markets, it could go up to 5% to 10% of the home’s sale price.

By offering on the higher end of the spectrum, homebuyers can beat out contenders who offer less attractive earnest money deposits.

Best and Final Offer

Going into a multiple-offer situation and expecting negotiation can be tricky. It’s typically suggested that buyers go in right away with their strongest offer; one they can still live with if they lose to a contender — aka, they know they gave it their all.

In some cases, sellers deliberately list the home for less than comparable sales in the area in an attempt to stir up a bidding war. By going in with their highest offers, buyers could end up paying what the house is actually worth while still winning the deal.

Recommended: 7 Steps to Buying a Home

All-Cash Offer

By offering to pay cash upfront for the property, homebuyers effectively eliminate the need for third party (lender) involvement in the transaction. This can be appealing to sellers who are looking to streamline the sale and close ASAP.

However, this is obviously not possible for all homebuyers. It requires having quite a chunk of change on reserve to make this kind of offer. For some though (including those who just sold another property), it could be an option.

Waived Contingencies

Whether it’s offering the sellers extra time to move out or waiving the home inspection, potential homebuyers can gain wiggle room when they start to waive contingencies.

Contingencies are conditions that must be met in order to close on a house. If they’re not met, the buyers can back out of the deal without losing their earnest money deposit.

By waiving certain contingencies, buyers show that they’re willing to take on a level of risk to close the deal.
This can be appealing to some sellers. Of course, if you are the prospective buyer in a multiple-bidding situation, it means you are taking on risk.

What if, say, after you purchase the home, you discover that there’s $10,000 worth of HVAC work that needs to be done? An inspection would likely have revealed this, and you would have been able to negotiate with the sellers about this. But when you waive the inspection, you will be on the hook for this kind of upgrade.

Recommended: 6 First-time Home-Buying Mistakes to Avoid

Signs of Sincerity and Respect

Because many sellers have pride in and a deep affection for their home, buyers who show sincerity, respect, and sentiment may score extra points.

In some cases, it may be helpful for bidders to write a letter that details what they love about the home, which adds to the positive interactions with the sellers and their agent. It can make the sellers feel as if their home will be in good hands, with people who appreciate it rather than want to do a gut reno and strip away all the features they treasure.

This could lead to winning in a multiple-offer situation, but seek your real estate agent’s advice before penning such a letter. It could be a turn-off to some sellers.

An Offer of Extra Time to Move Out

In some cases, sellers might appreciate (or even require) a bit of a buffer between the closing date and when they formally move out of the house.

By offering them a few extra days post-closing without asking for compensation, flexible buyers can get ahead of contenders who might have stricter buyer possession policies.

Or you might offer to lease back the property for a month or more, if that would help the sellers get settled in their next residence. This kind of flexibility could tip the balance in your favor.

A Mortgage Pre-Approval Letter

Most offers are submitted with a lender-drafted letter that indicates the purchasers are pre-qualified for a loan.

But did you know there’s a difference between getting pre-qualified vs. pre-approved? A pre-approval letter can take it a step further by showing that the buyers are able to procure borrowed funds after deep financial, background, and credit history screening.

Pre-approval signifies to some sellers that the buyers can put their money where their mouth is, lessening the possibility of future financing falling through.

Recommended: Guide to Buying, Selling, and Updating Your Home

Kick-Starting the Homebuying Process

If you’re shopping for a home or plan to do so in the near future, it’s a wise move to get a jump on the process by exploring your mortgage options. For instance, how much of a loan do you qualify for and at what interest rate? How much would you have to put down?

As you move through this process, see what SoFi Mortgage Loans can offer. Our loans are convenient loans and have competitive rates. Plus, they can be available to qualifying first-time homebuyers with as little as 3% down. By knowing what your home loan funding looks like, you may be able to bid with greater confidence.

Get a leg up on buying a home, and find your rate in minutes with SoFi Mortgage Loans.

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

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.

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.

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The average cost of college tuition varies widely based on location and whether the school is public or private. The average cost of college for in-state students at a four-year institution in 2022-23 was almost $11K. Students at private nonprofit four-year institutions paid over $39K on average.

Read on for more information about average tuition costs and other expenses facing college students.

The Average Cost of College

According to the College Board’s annual “Trends in College Pricing” report, the average cost of attending a four-year college as an in-state student at a public university during the 2022-23 school year was $10,950. For an out-of-state student attending a public four-year college, the average rose to $28,240.

The average cost of attending a private four-year institution was $39,400. These averages are based on the published price at a college or university. This includes tuition, fees, and room and board.

Cost is a major factor for students deciding which school to attend. According to the annual Sallie Mae survey “How America Pays for College 2022,” 60% of parents and students eliminated a college based on cost after receiving their financial aid package.

Historical Average Cost of Tuition

The cost of tuition has increased dramatically over time. For the 2002-03 school year, the average cost of college tuition at a public four-year institution was $4,202 for a student receiving in-state tuition. In 20 years, tuition rose to $11,541 for the 2022-23 school year.

U.S. News reviewed tuition costs at 440 ranked National Universities, those universities included as part of the annual college rankings. According to their data, the average tuition and fees at private National Universities increased by 134% in 20 years from 2003 to 2023. During the same period, at four-year public National Universities, tuition for out-of-state students increased by 141%, and for in-state students it rose by 175%.

Average Total Cost of College

A traditional undergraduate college degree takes four years to complete, which means four years of tuition costs. According to EducationData.org, the cost of college has risen, on average, about 7.1% annually since 2000.

Year-over-year changes can fluctuate greatly, however, so it can be challenging to predict exactly how much a student will pay in tuition costs over the course of their degree. For example, the “Trends in College Pricing” report found that in-state tuition costs at public four-year institutions increased just 1.8% from the 2021-22 to the 2022-2023 school year. For that same time period, tuition increased 3.5% at private nonprofit four-year institutions.

To get a rough estimate of how much college will cost in its entirety, you can take the current tuition rate and multiply it by four. Keep in mind this won’t account for any increase in the cost of tuition.

Average Additional College Expenses

Tuition generally makes up the majority of a student’s college expenses. But there are other fees and costs to factor in, including room and board, books, and other supplies. As you plan how to pay your tuition, students might also consider general living expenses.

What Is the Cost of Room and Board?

Some colleges charge “comprehensive fees,” which reflect the total for tuition, fees, and room and board. Other schools charge room and board separately from tuition and fees. The cost of room and board typically accounts for the cost of housing (i.e., a dorm room or on-campus apartment) and the meal plan.

The average cost of on-campus room and board for the 2022-23 school year was $11,557 for four-year public institutions for both in-state and out-of-state students, and $12,857 for four-year private nonprofit institutions.

The actual cost will vary depending on the type of housing you live in and the meal plan you choose. Housing can be another determining factor for students. According to the same 2021 Sallie Mae survey, 85% of college students selected a college in their home state and 39% live at home or with relatives to save on housing costs.

The Cost of Extra Classes

Tuition at some schools covers the cost of a certain number of credit hours. Your credit hours can vary each term depending on the classes you enroll in. If you exceed the number of credit hours covered by tuition, you may pay an additional fee.

Books and Supplies

On top of those expenses, don’t forget to budget for books and supplies. The average college student attending a four-year college spends $1,226 on textbooks per year.

Transportation

Transportation is another major category of expenses for college students. Will you have a car on campus? If so, plan to pay for gas, insurance, and a parking permit. How often do you plan to go home? Will a trip to visit your family require airfare?

Other Living Expenses

Then there are additional personal expenses like eating out, laundry, and your monthly cell phone bill. To get an idea of how much you’ll actually spend every month, it helps to review your current spending.

College may be the first time you’ve had to learn how to budget. Consider sitting down with your parents, an older sibling, or a trusted friend who has already navigated their first year of college to get an idea of the expenses you may encounter.

Paying for College

There are, of course, options available to help you finance your education. Whether you’re going to college for the first time or returning for further education, consider looking into the following options:

First Thing’s First: The FAFSA

A common first step for students interested in securing federal financial aid is to fill out the Free Application for Federal Student Aid (FAFSA®). As you get ready to apply, pay attention to deadlines, as they vary by school and state. After you fill out the FAFSA, you’ll receive an offer letter detailing the type of aid you qualify for. This may include scholarships and grants, work-study, and federal student loans.

Planning ahead is one way to set yourself up to successfully pay for college. If you’re not quite ready to fill out the FAFSA yet, you can use the Federal Student Aid Estimator at StudentAid.gov/Aid-Estimator/ to get an idea of how much aid you might qualify for.

Recommended: Jobs for MBA Graduates

Scholarships and Grants

Scholarships and grants can be immensely helpful when it comes to paying for college, since that money doesn’t need to be repaid. In addition to filing the FAFSA, you can check to see if there are any other scholarship opportunities for which you may qualify. There are also online resources and databases that compile different scholarship opportunities.

The federal work-study program is another form of aid that can help students pay for college. If you are eligible for work-study and receive it in your financial aid award, you may still have to find your own employment at your university. Check with your school’s financial aid office to find out if your school participates and whether they will place you or if they have a work-study job board.

Of course, other jobs for college students are available, but students will have to pursue those on their own.

Recommended: Grad School Scholarships

Student Loans

Student loans offer another avenue for students to finance their college education. Unlike scholarships and grants, however, student loans must be repaid. There are two kinds of student loans — federal and private.

Federal Student Loans

Applying for student loans requires filling out the FAFSA. Federal loans for undergraduates can be either subsidized or unsubsidized. With a subsidized loan, borrowers won’t be responsible for paying the interest that accrues on the loan while they are actively enrolled in school at least half-time. With an unsubsidized loan, borrowers are responsible for paying the accrued interest during all periods.

Whether subsidized or unsubsidized, loan repayment generally doesn’t begin until after graduation (or a student drops below half-time) and a grace period.

Most grace periods for federal loans are six months. Interest rates on federal student loans are set by the government and are fixed for the life of the loan.

Federal loans aren’t guaranteed to cover your undergraduate or graduate school tuition costs. There are borrowing limits that restrict the amount of federal loans a student can take out each year. For example, a first year undergrad, dependent student is currently allowed to borrow $5,500 in federal loans. In some cases, private student loans may be used to fill in the gaps.

Private Student Loans

Private student loans are offered by banks, credit unions, or other lenders. Terms and conditions of a private student loan are set by the individual lender.

Private lenders will likely review a borrower’s credit history and other financial factors in order to determine what type of loan they may qualify for. If an applicant is applying with a cosigner, private student loan lenders will look at their financial background as well, which might include things like their credit score and current income.

While federal student loans come with fixed interest rates, private student loans can have fixed or variable interest rates. Variable interest rates may start lower than fixed rates, but they rise and fall in accordance to current market rates.

Private student loans don’t carry the same benefits and protections offered by federal student loans — such as income-driven repayment and loan deferment options. Some lenders may offer their own benefits.

The Takeaway

The average cost of college tuition for the 2022-23 school year was about $11K for students paying in-state tuition at a four-year public institution. For out-of-state students, the average was $28K. At a private four year institution it was $39K. Paying for college usually requires a combination of financing options, including savings, scholarships, grants, work-study, federal student loans, and even private student loans.

Private student loans aren’t going to be the right choice for every student. If they seem right for you, SoFi’s private student loans are worth considering. SoFi private student loans have no fees — that means no late fees or origination fees — and the application process is entirely online, even if you need to add a cosigner.

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.

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

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

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

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If you’ve applied for federal student loans in the past, chances are you’re familiar with the Expected Family Contribution, or EFC—a number used by colleges to figure out how much financial aid students are eligible for.

Starting for the 2024-2025 school year the EFC will be replaced by the Student Aid Index or SAI. It fulfills the same basic purpose but works a little differently, which we’ll discuss in-depth below.

This change was part of the larger FAFSA® Simplification Act, which itself was part of the larger Consolidated Appropriations Act passed in December 2020. The idea is to simplify the federal aid application process by making it more straightforward for students and their families, particularly for lower-income earners. But all changes come with a bit of a learning curve, even if simplicity is the goal. Here’s some helpful information about the Student Aid Index.

Student Aid Index vs the Expected Family Contribution (EFC)

While both of these calculations perform a similar function, there are important differences in how they work—and important ramifications on how students receive financial aid.

How the EFC Currently Works

Despite its name, the Expected Family Contribution is not actually the amount of money a student’s family is expected to contribute—a point of confusion Student Aid Index is meant to clarify. (Most families end up paying significantly more than the calculated EFC when funding a college education, especially when you factor in loan interest.)

Rather, the EFC assesses the student’s family’s available financial assets, including income, savings, investments, benefits, and more, in order to determine the student’s financial need, which in turn is used to help qualify students for certain forms of student aid, including Pell Grants, Direct Subsidized Loans, and Federal Work-Study.

A very simplified version of the calculation looks like this:

Cost of college attendance – EFC = financial need

However, a college is not obligated to meet your full financial need, and they may include interest-bearing loans, which require repayment, as part of a student’s financial aid package.

Still, the EFC plays an important role in determining how much financial aid you’re eligible for and which types.

How Will the Student Aid Index Work?

The Student Aid Index will work in much the same way: the figure will be subtracted from the cost of attendance to determine how much need-based financial aid a student is eligible for. However, there are some important updates that come along the rebranding:

Pell Grant Eligibility

Pell Grant eligibility will now be determined before the FAFSA is submitted if their adjusted gross income (AGI) is less than a certain threshold determined by the poverty line. Pell Grants may still be offered to students after an application is submitted, using the SAI, if they don’t immediately qualify based on income alone.

A Wider Range of Financial Need

The SAI offers a greater range of financial need than the EFC, whose lowest amount is $0 (meaning a student demonstrably needs the full cost of college covered by aid). The lowest possible SAI, on the other hand, is -$1,500, which creates a cushion to help the lowest-income students cover adjacent college expenses that aren’t bundled into the school’s calculated cost of attendance figure.

New Rules

The SAI comes along with new rules that allow financial aid administrators to make case-by-case adjustments to students’ financial aid calculations under special circumstances, such as a major recent change in income. The bill also reduces the number of questions on the FAFSA down to a maximum of 36 (formerly 108), removes questions about drug-related convictions (which can now disqualify applicants from receiving federal aid), and more.

Recommended: FAFSA Guide

How Will the Student Aid Index Be Calculated?

The Student Aid Index will be calculated much the same as the Expected Family Contribution is calculated today, though the bill does include some updates to make the process easier.

For one thing, the bill works together with the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act to import income directly into a student’s FAFSA, simplifying the application process.

The new FAFSA will also automatically calculate whether or not a student’s assets need to be factored into the eligibility calculation, shortening the overall application and offering more students the opportunity to apply without having their assets considered.

The bill also removes the requirement that students register for the Selective Service in order to be eligible to receive need-based federal student aid.

Recommended: Getting Financial Aid When Your Parents Make Too Much

What Is a Good Student Aid Index Score?

The Student Aid Index isn’t like a test or a report card—there aren’t really “good” or “bad” scores, or “scores” at all. It just depends on your personal financial landscape.

But just like the EFC, the lower the SAI, the more need-based aid a student may be qualified for. Since need-based aid includes grants, which don’t need to be repaid, and subsidized loans, whose interest is covered by Uncle Sam while you’re attending school, a lower SAI may translate into a lower overall college price tag.

How Will the Student Aid Index Be Used?

Like the EFC before it, the SAI will be used to help colleges determine a student’s financial need based on their financial demographics. Although the school itself may have its own grant programs and other types of aid, certain forms of federal student aid such as Pell Grants and Direct Subsidized Loans are offered based on demonstrable financial need, and the SAI is a key part of the calculation used to determine that need.

In short: the SAI will be used to determine how much financial aid a student is eligible to receive.

When Will the SAI Go Into Effect?

The SAI will be implemented in the 2024-2025 academic year. In the meantime, students will still use the same, extended FAFSA to apply for federal financial aid, and will still receive an EFC.

The Takeaway

The Student Aid Index is essentially the same number as the Expected Family Contribution, but it’s been renamed as part of the FAFSA Simplification Act in order to clarify to families what exactly the number means. This act also bundles in some other important changes that will hopefully simplify the overall student loan application process and increase access to education for the lowest-income students and their families.

Submitting the FAFSA and exhausting need-based federal student loan options, which tend to be the most generous to borrowers or grantees, is an important first step when it comes to funding a college education. But there are other tools in a student’s college-funding toolbox, as well.

Students can also apply for Direct Unsubsidized Loans from the government, which often have competitive interest rates and may offer more flexibility to postpone, lower, or forgive the repayment. Additionally, federal loans for undergraduate students don’t require a credit check to qualify, while private student loans usually do.

For those pursuing private student loan funding, SoFi offers no-fee student loan options for undergraduates, graduate students, and parents with competitive interest rates—not to mention the 0.25% discount for borrowers who set up autopay.

Photo credit: iStock/SDI Productions

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 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.

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

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

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

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