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Your financial aid does not automatically increase every year — it can go up or down based on several factors, and you must reapply annually.

Your financial information is used to calculate the amount of financial aid you receive each year. If your financial circumstances change, you may be eligible for more or less need-based gift aid (the kind you don’t pay back) each year. The maximum amount you can take out in federal Direct Loans, however, does increase for each year you’re in school.

Here’s a closer look at how your financial aid is calculated each year you are in school and why it might go up or down after freshman year.

Do You Have to Apply for Financial Aid Every Year?

You must apply for financial aid each year by filling out the Free Application for Federal Student Aid (FAFSA®). Any changes in your family’s circumstances can affect the amount of need-based aid you are awarded. Need-based aid includes grants, scholarships, work-study, and subsidized federal student loans (in which the government pays your interest while you are in school and for six months after you graduate).

It’s a good idea to fill out your FAFSA soon after it becomes available. This ensures you’ll be considered for all types of federal financial aid, including state aid and financial aid funded directly by colleges and universities. Typically the FAFSA opens October 1 for the following academic year.

You’ll want to check the FAFSA filing deadline for your chosen school by going to their financial aid website. Some schools also require other applications for financial aid (such as the CSS profile).


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

How Do You Fill Out the FAFSA?

You can fill out the FAFSA online at studentaid.gov. Here’s how:

1. Create an FSA ID. This is a username and password that you will need to complete the FAFSA (as well as take out loans and log in to all Federal Student Aid websites). Keep in mind that parents need to create their own account using their own unique email address and password.

2. Gather documents. You’ll find a list of the documents you need to complete the FAFSA right here.

3. Fill out the application. You’ll need to supply both personal and financial information. If you have any questions as you go along, you can go to the FAFSA Help page. You’ll also have the opportunity to list the schools you are interested in applying to, even if you have yet to apply. This list is not shared with the schools you list.

4. Review your FAFSA Submission Summary. Once your FAFSA has been submitted and processed, you’ll receive an email letting you know your FAFSA Submission Summary is ready to review on studentaid.gov. This contains a summary of the information you entered on the FAFSA and your Student Aid Index, or SAI (formerly called Expected Family Contribution, or EFC). Your SAI is used to determine your eligibility for federal financial aid programs. It’s sent to the colleges you listed on your FAFSA.

Does the Government Decide How Much Money You’ll Be Awarded?

No, the federal government doesn’t decide the exact amount of your financial aid; the financial aid office at your college does. After you complete the FAFSA, the school uses your Student Aid Index (SAI), cost of attendance, and other factors to determine your specific aid package, which can include federal, state, and institutional aid.

That said, the Department of Education does set certain limits on the amount of aid any student can get, which can change each year. For example, if you are a dependent student you can borrow up to $5,500 (no more than $3,500 of this amount may be in subsidized loans) for your first year in college. For your second year, you can borrow up to $6,500 (no more than $4,500 in subsidized loans). The amount increases each year.

What Role Does Your School of Choice Play?

The financial aid office at each college you apply to will determine how much financial aid you’re eligible to receive. How much you’ll receive depends on several factors, including your:

•   SAI (this number is an indicator of your financial need)

•   Enrollment status (full-time students are generally eligible for more aid than part-time students)

•   Cost of attendance at the school

The basic formula for distributing federal financial aid looks like this:

School’s cost of attendance – SAI = Financial need

Can You Keep Your Financial Aid Amount Consistent?

There are no guarantees that you’ll receive the same amount of federal student aid from year to year. But there are some things you can do to maintain your financial aid eligibility.

One is to make sure that you achieve Satisfactory Academic Progress (SAP) each year. Each school has an SAP policy for federal student aid purposes; to see your school’s, you can check your school’s website or ask someone at the financial aid office.

The other way to keep your financial aid as consistent as possible is to fill out the FAFSA each year. Financial aid eligibility does not carry over from one year to the next.

Can You Appeal Your Financial Aid?

If you receive a financial aid offer from a college you’d like to attend but it’s less than what you need, one option is to write an appeal letter. Your school may or may not change its decision, but it may be worthwhile to try, especially if you believe you have other information that they didn’t take into account, or if something significant has changed.

If, for example, one of your parents lost a job recently or someone in the family experienced a medical emergency, then an appeal letter might help. Tips that might help you to write a successful one include:

•  Look for a contact in your school’s financial aid office (ideally the person who has been assigned to your case) and address that person directly.

•  Be polite, professional, and respectful.

•  Be clear about what you’re requesting, including how much aid you need and why.

•  Be concise and compelling, keeping in mind that the financial aid office is likely busy.

•  Provide relevant documentation, such as a doctor’s note or eviction notice. Perhaps give them a breakdown of how you’d spend the money you’re requesting.

•  Carefully proofread your letter and ask a trusted friend or family member to do so, as well.

Paying for College If You Didn’t Receive Federal Financial Aid

If you didn’t receive the federal student aid you anticipated or hoped for, an appeal letter isn’t successful, or you don’t qualify for need-based aid, then other options for paying for college include:

•  Applying for additional scholarships There are smaller scholarships and grants available through private companies, community organizations, and nonprofits. Though each scholarship may be small, if you can cobble together a few, they can help make a dent in your college costs. You can talk to your school’s financial aid department for leads or use one of the many online scholarship search tools.

•  Tapping federal student loans Your financial aid package will tell you what federal student loans you qualify for. These may include Direct Subsidized Loans and/or Direct Unsubsidized Loans (in which students are responsible for all interest accrued). Federal student loans come with low interest rates and valuable protections, such as income-driven repayment and forbearance programs.

•  Private student loans If your financial aid package (including federal student loans) isn’t enough to cover all of your school costs, you may next want to look into private student loans. These are available through banks, credit unions, and private lenders. Loan limits vary by lender, but you can often get up to the total cost of attendance at your chosen school, minus any financial aid you received. Interest rates may be fixed or variable and are set by the lender. Generally, borrowers (or their parent cosigners) who have strong credit qualify for the lowest rates.

•  Part-time job Your financial aid package may include the opportunity to find a job through the Federal Work-Study program. This program funds part-time jobs for college students with financial need. Even if you don’t qualify for work-study, you can look for a job on or off campus to help cover your expenses.

💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

It is important to remember that financial aid does not automatically increase each year. To ensure you receive the aid you need, you must reapply annually by completing the FAFSA. Eligibility is calculated annually based on your financial situation, enrollment status, and the cost of attendance at your chosen school. Understanding how your financial aid is determined and taking proactive steps (like maintaining Satisfactory Academic Progress and appealing aid decisions when necessary) can help you manage your college costs effectively.

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

Does your financial aid change every year?

Yes, your financial aid can change every year. It can go up or down based on changes in your family’s financial situation, your enrollment status, and the cost of your chosen school. You must reapply for aid annually by completing the FAFSA.

Do colleges recalculate financial aid every year?

Yes, colleges recalculate financial aid every year. When you submit your FAFSA annually, the financial aid office at your school will use the updated information, including your Student Aid Index (SAI) and their cost of attendance, to determine your new financial aid package. This means your aid can change from one year to the next.

Can financial aid be increased?

Yes, financial aid can be increased. If your financial circumstances change significantly after you’ve received your initial aid offer (such as a job loss or medical emergency), you can write an appeal letter to your school’s financial aid office. You’ll need to provide documentation to support your appeal and clearly state the amount of additional aid you’re requesting and why.

What is the #1 most common FAFSA mistake?

One of the most common FAFSA mistakes is not completing the form at all. Many students assume they won’t qualify for aid because of their family’s income or other factors, so they skip it. However, the FAFSA is used to determine eligibility for many types of aid, including low-interest federal loans (that are not need-based) and institutional merit aid. Even if you think you won’t get grants or scholarships, completing the FAFSA can open doors to other funding options.

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

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

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.

SOISL-Q425-009

The office of Federal Student Aid provides over 9.9 million college students with more than $120 billion in grant, work-study, and student loan funds each year to help pay for college or career school. However, there are situations where students can lose their financial aid.

Students will want to consider how their grades affect financial aid to avoid having federal college aid taken away. Generally, you’ll need to make satisfactory academic progress (SAP) each term to continue receiving federal financial aid, but you may be able to regain lost aid by filing a financial aid appeal.

If you’ve received aid through private scholarships or grants, you may need to meet their minimum requirements to remain eligible for gift aid. Private lenders may also have minimum GPA requirements, but these vary by lender.

Types of Financial Aid

There are many types of financial aid available to college students from the federal government, states, schools, and private sources. This funding can be used to cover most higher education costs, such as tuition and fees, room and board, and books.

Sallie Mae’s 2025 “How America Pays for College” survey found that while parent income and savings covered nearly 50% of college costs during the 2024–25 academic year, families still heavily relied on financial aid and federal loans to cover the other half.

Grants & Scholarships

College grants and scholarships are a form of financial aid that can help make college more affordable because they don’t usually need to be repaid. The U.S. Department of Education, colleges, and universities award an estimated $256.7 billion in grant and scholarship money to students each year. The Sallie Mae survey found that scholarships and grants covered approximately 27% of school costs for families in 2024-25.

The biggest differences between college grants and scholarships are where the funds come from, eligibility requirements, and the application process. Grants are typically given based on financial need while most scholarships are merit-based. Scholarships may be awarded to students based on their academic or athletic achievements, extracurricular activities, fields of study, and more.

💡 Quick Tip: You can fund your education with a competitive-rate, no-fees-required private student loan that covers up to 100% of school-certified costs.

Federal Work-Study

Federal Work-Study is a form of financial aid that offers students funds via part-time employment on campus. Several factors determine whether a student is eligible to participate in the Federal Work-Study program, including their family’s income and the student’s enrollment status at the school.

As with other forms of federal financial aid, a student’s grades affect their eligibility. Students are expected to make SAP, which is a school’s standard for satisfactory academic progress toward a degree or certificate.

Student Loans

Student loans can either come from the federal government or private lenders. To qualify for a federal student loan, students must demonstrate financial need, fill out the Free Application for Federal Student Aid (FAFSA®), be enrolled in an eligible degree or certificate program at least half-time, and maintain SAP.

Another option is to take out a private student loan; however, this is generally only considered after all other options have been exhausted. Private student loans may be more expensive than federal student loans and don’t offer the same borrower protections, such as access to income-driven repayment and forgiveness programs. Private lenders can set their own terms and repayment plans so you should read the loan terms closely before making any borrowing decisions.

Recommended: How to Pay for College

How Grades May Affect Financial Aid

If you find yourself struggling in school, you may be wondering how grades affect financial aid.

State and federal financial aid, such as grants, loans, and work-study, require students to maintain satisfactory academic progress while working toward a degree. Academic performance is evaluated based on each school’s individual policy.

Your school’s policy will tell you what grade point average (GPA) or equivalent you must maintain, the minimum number of credit hours you need, the required pace of course completion, maximum time frame allowed, and more.

As far as how grades affect financial aid, federal regulations state that students must maintain a 2.0 cumulative GPA, or a grade of “C”, on a 4.0 scale. Additionally, students must complete at least 67% of cumulative credits attempted, and progress through their undergraduate program no longer than 150% of the published length of the educational program.

Private scholarships and grants may have their own academic requirements. Dropping below the minimum requirements could result in termination of the scholarship or grant money for the following term but typically does not require repayment. If you receive a scholarship or grant, make sure you read the fine print to see if your grades affect your financial aid.


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

Do Grades Affect Private Student Loans?

Typically, no. However, each lender has different eligibility criteria for student borrowers. Similar to other types of loans, private student loans are given based on factors including your (or you cosigner’s) finances and credit history and, depending on the lender, there may or may not be a GPA requirement. Private lenders usually care more about your ability to repay the loan than your grades, but again, each lender is different.

If you’re interested in a private student loan, check with the lender to see if there are any student loan GPA requirements before making your decision.

Recommended: I Didn’t Get Enough Financial Aid: Now What?

Regaining Lost Financial Aid Due to Low Grades

Have you lost financial aid due to low grades? You may still be able to get it back. Losing financial aid due to low grades means you aren’t satisfying your school’s SAP requirements.

Visit a Financial Aid Office

One of the first things to do after losing financial aid due to low grades is to visit your school’s financial aid office to discuss your options. Your financial aid office can help you formulate a plan to improve your grades so that your financial aid can be reinstated.

Make sure to ask about the requirements for the financial aid that you are or were receiving and find out if you’re able to file a financial aid appeal.

File a Financial Aid Appeal

You can file a financial aid appeal, or an SAP appeal, if your school allows it and if the poor performance was due to circumstances outside of your control. There must be a link between poor performance and the special circumstance. Some acceptable situations include:

•   Death of a relative

•   Severe personal injury or illness

•   Other special circumstances determined by the school

If you can prove your lower grade directly correlates to one of these situations, then it may be possible for you to regain your financial aid. Check your college’s website for directions and for more information on filing a SAP appeal.

The Takeaway

Your grades do affect your financial aid and federal student loans. Generally, if your cumulative GPA dips below a 2.0, you will no longer be considered to be in good academic standing. However, if your low grades are due to extenuating circumstances, you can try to appeal. Other forms of financial aid, like private grants and scholarships, may also have their own set of academic requirements.

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 financial aid be taken away for bad grades?

It’s possible. You must remain in good academic standing to keep any type of state or federal financial aid, such as grants, loans, and work-study. Private scholarships and grants may also have their own set of requirements to keep any gift aid.

While private lenders typically don’t have any student loan GPA requirements, each lender is different.

Do you get more financial aid if you get good grades?

Most federal financial aid programs do not take your grades into consideration when determining how much financial aid to give. However, bad grades can hurt your federal financial aid availability.

Good grades are even more important to recipients of merit scholarships and some grants but there are scholarships that do not take grades or GPA into consideration.

Will my FAFSA be affected if I fail a class?

As long as you meet your school’s definition of Satisfactory Academic Progress (SAP), one failed class won’t affect your financial aid package.

Photo credit: iStock/harunhalici

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

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

SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.

SOISL-Q425-033

When you’re in school, it can seem like all your money is going toward tuition and books. Still, it’s essential to learn how to budget as a college student.

You may not have a full-time job yet, or even know your major, but managing your money early on could help you save for spring break, uncover monthly savings, and avoid taking out additional student loans.

Here’s how to get started.

4 Steps to Create a Budget in College

Step 1: Calculate Your Income

When it comes to budgeting in college, a good first step is figuring out how much money you actually have to spend. To do this, add up your income. This may include student loans, scholarships, a part-time job, or contributions from your family.

It’s a smart idea to revisit your income regularly, such as at the start of each term. That way, if you’ve switched jobs, had a change in your financial aid package, or received a windfall from your parents, you can adjust the budget accordingly.


💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

Step 2: List Your Expenses

If you’re new to learning how to budget as a college student, there’s a little homework involved in figuring out your spending habits. If you’re game for this task, take an evening to list all of your college-related expenses and their cost each month. Then categorize each expense as either “necessary” or “fun.”

Necessary expenses are essentials, like rent, utilities, books, tuition, food, and gas. Fun expenses are related to entertainment — think dining out, bar tabs, tickets to athletic games, travel, or clothes.

You may also want to consider making room in the budget to build your savings. Double-check if any of your student loans have interest that needs to be paid immediately. Even if interest payments are deferred, it’s smart to start paying down student loan debt now. After all, every little bit helps.

Step 3: Choose a Budgeting Method

There’s no one-size-fit-all approach to budgeting for college students, and it may take some trial and error before you find the type that works for you. Here are some popular budgeting methods you may want to explore:

50/30/20 Budget

In the 50/30/20 budget, you allocate 50% of your after-tax dollars to “needs,” 30% to “wants,” and the remaining 20% to savings.

Recommended: See how your money is categorized using the 50/30/20 Monthly Budget Calculator.

The 70% Rule

The 70% rule is similar to the 50/30/20 budget. Here, you allocate 70% of your after-tax income to living expenses, 20% to paying down debt or — if you have no debt — to savings, and 10% to whatever you wish.

Zero-Sum Budget

The goal of a zero-sum budget is to assign a purpose to all of your monthly after-tax income. Start by assigning dollars to each of your required bills, like rent, groceries, or student loan payments. Then figure out how much is left over for discretionary spending and saving, and assign where exactly that money is going.

Pay Yourself First

The premise of “pay yourself first” is simple: Assign money for savings or other financial goals, and spend the remaining money however you wish.

Envelope Budget

With the envelope budgeting method, you take out a set amount of cash every month to spend in each budget category, such as “groceries” or “transportation.” The money is stored separately in different envelopes, which you draw from when needed. (You can also adapt this budgeting method to use your debit card — just be sure to keep track of your spending.)

Line-Item Budget

A line-item budget can help you keep track of monthly expenditures. Using a spreadsheet or a pencil and paper, simply list your income for the month (or school term, if you’d prefer). Then, list each expense you have during the month. This allows you to see your income and cash that’s flowing out. If you’d like to see how your current spending stacks up, you can include a list of past expenses.

Shared Cost Splitting

If you have a roommate or are living with a partner, you split shared monthly bills right down the middle (or whatever percentage you both agree on). Each person pays their part.

Recommended: How to Save Money in College

Step 4: Set Up a System to Track Your Budget

There are at least three good ways to help you budget in college:

•   Whiteboards

•   Budget-tracking apps

•   Spreadsheets

All three methods work similarly. You’ll record your income and expenses for the month. At the end of the month, you’ll look back at how much you brought in and how much you spent so you can make adjustments for the next month.

A whiteboard works particularly well if you have roommates and split your bills. It helps keep everyone accountable and serves as a good reminder to pay your bills on time. In the whiteboard scenario, you can record what you spent for the day, and update your totals every day. It’s best to put the whiteboard in a spot where you can see it, such as by your desk or on the fridge.

A budget-tracking app on your phone lets you take your budget on the go. Budget apps can link to your bank and credit card accounts, so every time you make a transaction, the app automatically records it.

You can set up your budget by adding new categories, and maybe allow notifications so you get a warning when you’re close to going over on your burrito budget.

You can also learn how to budget in college by making a simple spreadsheet. Build a virtual spreadsheet with Google Sheets or Excel, using a new tab for each month in the year so you can separate monthly expenses.

This method is more manual than an app, requiring you to look at your bank or credit card statements and manually record each transaction in your budget.

Tips for Sticking to Your College Budget

Managing your money as a college student doesn’t have to be overly complicated. Here are some ways you can live within your means:

•   Build a financial cushion into your budget.

•   Start an emergency fund.

•   Overestimate your expenses — and underestimate your income.

•   Take advantage of free events in your area.

•   Save on food by cooking your own meals.

•   Set financial goals each month or school term to help you stay focused and motivated.

💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

The Takeaway

If you’re in school and are new to taking financial ownership, you might not know how to track income and expenditures — or want to. But learning how to budget money in college could help you afford to eat more than ramen, lessen debt, and maybe even spot ways to save money.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do I set up a basic budget?

To create a basic college student budget, start by listing all your monthly sources of income, including financial aid, earnings from a part-time job, and family contributions. Next, write down all your monthly necessary expenses, such as rent, transportation, and groceries. Subtract your fixed expenses from the monthly spending allotment. Whatever is left over can be used to cover non-essential expenses, like dining out, travel, and buying clothes.

What is a 50/30/20 budget for college students?

With the 50/30/20 budget, you assign 50% of your after-tax dollars to fixed expenses, such as rent, food, utilities, insurance, and car and student loan payments. Next, allocate 30% of your money to variable expenses, like travel, dining out, and entertainment. Finally, set aside the remaining 20% to savings.

What tools can college students use to manage their budget?

There is no shortage of options when it comes to tools to manage a budget. A budgeting app, spreadsheet, or even a pen and paper can all do the trick. Your bank may also offer budgeting tools.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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

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.

SORL-Q425-012

The median pay for a dental assistant was $47,300 per year in 2024, according to the Bureau of Labor Statistics.

If someone is looking for a career in the medical field, but doesn’t want to commit many years and a significant amount of money to medical school, they may want to look into becoming a dental assistant. This career involves less schooling than one would have to pursue to become a dentist, but can offer a stable and rewarding career path.

Keep reading for more insight into what it’s like to work as a dental assistant and what this career’s earning potential can be.

What Are Dental Assistants?

A dental assistant is a healthcare professional who assists dentists in caring for their patients and with general administrative tasks.

Typically, they have completed training as a dental assistant after high school, meaning this can be a potential good job without a college degree.

These are some common responsibilities of dental assistants:

•   Scheduling patient appointments for efficient management

•   Collaborating with patients on medical billing and payment matters

•   Providing instructions to patients on proper oral hygiene practices

•   Preparing both patients and the work area for various treatments and procedures

•   Sterilizing dental instruments to maintain hygiene standards

•   Ensuring the comfort of patients in the dental chair

•   Assisting dentists by handing them instruments during procedures

•   Using suction hoses and other equipment to dry patients’ mouths

•   Processing x-rays and performing lab tasks under the dentist’s guidances

•   Maintaining records of dental treatments for accurate documentation.

As you may have noticed, this job requires a good degree of interaction with coworkers and patients. For this reason, it may be a good fit for those who consider themselves a “people person” and not a great career for an introvert.

Also, it’s important to note that the exact role of a dental assistant can vary based on the state they are working in. This is due to varying state regulations.

💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

How Much Do Starting Dental Assistants Make a Year?

Understandably, entry-level salaries for dental assistants tend to be less than those for their more experienced counterparts. In terms of how much money a dental assistant makes when they first start their career, here are some numbers: As of 2024, the lowest 10% of workers in this role earned less than $36,190.

However, they can expect to earn more competitive pay over time, as the highest 10% in this role earned more than $61,780.

Recommended: 25 Highest Paying Jobs in the US

What Is the Average Salary for a Dental Assistant?

The median annual pay for a dental assistant is $47,300, while the median hourly pay rate for this work is $22.74 per hour as of 2024. The following chart illustrates how greatly this wage can vary on a state level.

Dental Assistant Job Considerations for Pay & Benefits

The majority of dental assistants work in a dentist’s office (90%), but some do work in the offices of physicians (2%) or for the government (2%). As of 2024, dental assistants held about 381,900 jobs and worked under the supervision of dentists.

There are some safety concerns (primarily contracting infectious diseases) that come with this role, which is why dental assistants wear protective clothing and equipment. Being exposed to x-ray machines also comes with concerns, but again, there are safety procedures in place to help protect dental assistants.

Because many dental assistants work full-time, they can qualify for employer-sponsored benefits like healthcare, retirement plans, and paid time off. However, if they only work part-time, they might not qualify for benefits.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Dental Assistant Salary

Still on the fence about working as a dental assistant? Here are some of the pros and cons of the role:

Recommended: Is $100,000 a Good Salary?

The Takeaway

The median salary for a dental assistant is $47,300, but as they gain work experience, these medical workers can expect to earn more. Because minimal schooling is required to become a dental assistant, many in this field can avoid taking on too much student loan debt.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

Can you make 100K a year as a dental assistant?

Most dental assistants don’t earn $100,000 per year. The top 10% of earners in this field can earn around $61,780, but the median annual salary is just $47,300.

Do people like being a dental assistant?

Some people find working as a dental assistant to be an engaging and fulfilling career. Because most of their days are spent on patient care, they must enjoy spending time with people. This won’t be an enjoyable role for someone who is an introvert or who is antisocial.

Is it hard to get hired as a dental assistant?

There are more than 52,000 jobs for dental assistants available each year, according to the Bureau of Labor Statistics. Depending on your location and other factors, it may not be hard to get hired as a dental assistant.

Photo credit: iStock/mladenbalinovac

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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

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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SORL-Q425-040

Parent PLUS loan forgiveness provides financial relief to parents who borrowed money to cover the cost of their children’s college or career school. It isn’t always a quick fix, but there are certain federal and private programs that might offer the financial forgiveness needed.

Keep reading to learn more about the available student loan forgiveness possibilities for Parent PLUS loans.

Are Parent Plus Loans Eligible for Student Loan Forgiveness?

Parent PLUS loans are eligible for several of the same student loan forgiveness programs as federal student loans for students, including:

•   Borrower Defense Loan Discharge

•   Total and Permanent Disability (TPD) Discharge

•   Public Service Loan Forgiveness (PSLF)

That said, Parent PLUS loans generally have fewer repayment and forgiveness options. Parent PLUS loans do not directly qualify for most income-driven plans. And guidelines are strict for the programs that parent loans are eligible for.

Refinancing Parent PLUS loans is another option for borrowers. With refinancing, you apply for a new loan from a private lender that ideally has a lower interest rate.

It’s important to note that refinancing a PLUS loan will eliminate it from any federal repayment plans and benefits.

💡 Quick Tip: Some student loan refinance lenders offer a no-required-fees option, saving borrowers money.

Parent Student Loan Forgiveness Program

As mentioned above, a Parent PLUS loan may be eligible for parent student loan forgiveness through the Public Service Loan Forgiveness program. To qualify, the loan must be repaid under the Income-Contingent Repayment Plan (ICR). Other forgiveness options may also be available through a borrower’s state or in certain situations as outlined below.

Income-Contingent Repayment (ICR)

An Income-Contingent Repayment plan is the only income-driven repayment plan that’s currently available for Parent PLUS borrowers. In order to qualify, parent borrowers must first consolidate their loans into a Direct Consolidation Loan, then repay that loan under the ICR plan. Bear in mind:

Bear in mind:

•   A Parent PLUS loan that’s included in a Direct Consolidation Loan could be eligible for Income-Contingent Repayment.

•   A Parent PLUS loan that’s included in the Federal Direct Loan Program or the Federal Family Education Loan Program (FFELP) is also eligible for ICR if it’s included in the Federal Direct Consolidation Loan.

It’s important to be aware that as of July 1, 2026, the ICR plan will be changing, as a result of the big U.S. domestic policy bill that was passed in the summer of 2025. Parent PLUS loan holders must consolidate their loans before July 1, 2026 and enroll in ICR. Any Parent PLUS loans consolidated after that date will not be eligible for ICR.

The ICR plan is an income-driven repayment plan. Monthly payments are the lesser of what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income, or 20% of your discretionary income. After a payment period of 25 years, any remaining loan balance will be forgiven.

Typically, the IRS considers canceled debt a form of taxable income, but the American Rescue Plan Act of 2021 made student loan forgiveness tax-free through 2025 on federal returns. Some states tax student loan forgiveness amounts; you can consult with a tax professional about your situation.

Public Service Loan Forgiveness (PSLF)

Qualified borrowers with Parent PLUS loans may be eligible for the Public Service Loan Forgiveness Program. In order to pursue that option, they must first consolidate the Parent PLUS loan into a Direct Consolidation Loan.

Then, after they’ve made 120 qualifying payments, borrowers may become eligible for the PSLF. The parent borrower (not the student) must be employed full-time in a qualifying public service job. PSLF also has strict requirements such as certifying employment, so it’s important to follow instructions closely if pursuing this option.

Student Loan Forgiveness for Death of Parent

Federal student loans qualify for loan “discharge” when the borrower dies. In the case of Parent PLUS loans, they are also discharged if the student who received the borrowed funds dies.

In order to qualify for federal student loan discharge due to death, borrowers must provide a copy of a death certificate to either the U.S. Department of Education or the loan servicer.

Some, but not all, private lenders discharge student loans after the student or loan holder dies.

Recommended: Can Student Loans Be Discharged?

State Parent PLUS Student Loan Forgiveness Programs

Many individual states offer some sort of student loan repayment assistance or student loan forgiveness programs for Parent PLUS loan borrowers.

For an overview of options available in different states, you can take a look at SoFi’s student loan forgiveness guide.

Disability

In the event of the borrower becoming totally and permanently disabled, a Parent PLUS loan may be discharged. To qualify for a Total and Permanent Disability (TPD) discharge, borrowers must complete and submit a TPD discharge application, as well as documentation showing that they meet the requirements for being considered totally and permanently disabled.

Note that in order to qualify for TPD, the parent borrower must be considered disabled. This type of forgiveness does not apply to Parent PLUS loans in the event that the student becomes disabled.

Bankruptcy

If a borrower can demonstrate that repaying a Parent PLUS loan would be an undue financial hardship on them, they might be able to have the loan discharged in bankruptcy. However, the process is complicated. First, the borrower must file an action known as an “adversarial proceeding.” They must also file for bankruptcy and show the bankruptcy court that undue hardship would be the result if they paid the loan.

Having student loans discharged in bankruptcy is challenging. Proving undue hardship varies depending on the court that’s granting it, but many rulings look at these criteria these criteria in order to discharge the student loan:

•  Maintaining a minimal standard of living for the borrower and their dependents is deemed impossible if they’re forced to repay their student loans.

•  The borrower’s current financial situation will likely continue for the majority of the repayment period.

•  The borrower has made a “good faith” effort to repay their student loans.

Closed School Discharge

For parent borrowers whose children attended a school that closed while they were enrolled or who withdrew from the school within 180 days before its closure, a Closed School Discharge is another available form of student loan forgiveness that may be an option.

If you meet the eligibility requirements for a discharge of loans you obtained for your child to attend a school that closed, your loan holder will automatically send you an application you can submit to your loan servicer.

Or you can contact your loan servicer for an application.

Borrower Defense

Borrower Defense Loan Discharge is potentially available to Parent PLUS borrowers whose children were misled by their college or university or whose college or university engaged in certain forms of misconduct or violation of state laws.

To make a case for borrower defense, the Parent PLUS borrower must submit a “materially complete” application that contains such information as what the school’s misconduct consisted of and when it occurred, how the misconduct affected your child’s decision to attend the school or your decision to take out the Parent PLUS loan, and a description of the harm experienced because of the misconduct.

💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

Alternatives to Parent Plus Student Loan Forgiveness

When it comes to Parent PLUS loans, there are a few ways to get out of student loan debt, including the scenarios outlined below.

Refinance Parent Plus Loans

Refinancing a Parent PLUS loan is another option that could provide some financial relief. However, in doing so, you’ll lose the government benefits associated with your federal loans, as briefly mentioned above, such as:

•   Forbearance options or options to defer your student loans

•   Income-driven repayment options

•   Student loan forgiveness

Refinancing a Parent PLUS loan into your child’s name is another option, which some borrowers opt for once their child has graduated and started working. Some private lenders offer this type of refinancing option to those who qualify, but not all do.

Transfer Parent Plus Student Loan to Student

Transferring Parent PLUS loans to a student can be complicated. There isn’t a federal loan program available that will conduct this exchange, and, as mentioned above, some private lenders don’t offer this option.

However, other private lenders, like SoFi, allow qualifying dependents to take out a refinanced student loan, which pays off the PLUS loan of their parent.

Explore Private Student Loan Options for Parents

Banks, credit unions, and online lenders typically offer private student loans for parents who want to help their children pay for college as well as refinancing options for parents and students.

Refinancing options will vary by lenders and some may be willing to refinance a Parent PLUS loan into a private refinanced loan in the student’s name. In addition to competitive interest rates and flexible terms, SoFi does allow students that qualify to take over their parent’s loan during the refinancing process. Interest rates and terms may vary based on individual criteria such as income, credit score, and history.

The Takeaway

Parent PLUS Loan forgiveness offers financial relief to parents who borrowed money to help their child pay for college. To receive federal relief for Parent PLUS loans, parent borrowers have options such as enrolling in the Income-Contingent Repayment plan, pursuing Public Service Loan Forgiveness, taking advantage of a state Parent PLUS student loan forgiveness program, or opting for student loan refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What do I do if I can’t pay my Parent PLUS loans?

If you can’t pay your Parent PLUS loans, you have a few options. You may be able to qualify for Public Service Loan Forgiveness (you’ll need to consolidate the loans first); refinance the loans, which may lower your monthly payments; or consolidate them and repay them through the Income-Contingent Repayment Plan. You can also check to see if your state offers forgiveness programs for Parent PLUS loan borrowers.

Can I transfer my Parent PLUS loans to my child?

You cannot directly transfer your Parent PLUS loans to your child. However, some private lenders may allow you to do something similar through refinancing. Here’s how it works: As long as they meet the eligibility requirements, your child refinances the loan in their name, which pays off the original loan and transfers all financial responsibility to them. Just be aware that refinancing federal student loans makes them ineligible for federal benefits and protections.

Can a Parent PLUS loan be discharged due to disability?

Yes, a Parent PLUS loan may be discharged due to disability if the parent borrower (not the student) becomes totally and permanently disabled. This is called a Total and Permanent Disability (TPD) Discharge, and to qualify, the parent must submit a TPD discharge application along with the appropriate documentation showing they meet the requirements.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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

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

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