How to Pay for Grad School

Students who graduate with a master’s degree carry an average debt of $69,140, according to the Education Data Initiative. There are numerous ways to finance your advanced degree (even without taking out loans), and investing in graduate education is frequently worth it, as the right degree has the potential for a massive return on investment.

If you’re considering going to grad school, we’ve laid out some key financing options. Read on to learn how to formulate a plan to pay for your graduate education.

Key Points

•   When it comes to financing grad school, filling out the Free Application for Federal Student Aid (FAFSA) is essential to determine eligibility for federal financial assistance, including grants and loans.

•   Investigate grants, scholarships, and fellowships offered by your chosen university’s financial aid office, as these can significantly reduce tuition costs.

•   Some employers provide tuition reimbursement programs to support employees pursuing further education. Review your company’s policies to see if this benefit is available.

•   Seek out scholarships and grants from private organizations, nonprofits, and government agencies, which can provide additional funding without the need for repayment.

•   After exhausting grants and scholarships, explore federal student loans, which often have favorable terms. If additional funding is needed, private student loans are also an option, though they may come with higher interest rates.

Ways to Pay for Grad School Without Taking on Debt

You can pay for grad school without taking on debt by filling out the FAFSA, applying for scholarships and grants, or working for an employer who offers tuition reimbursement. Continue reading for even more strategies to pay for grad school without taking on debt.

Fill Out The FAFSA

The first step to seeing if you qualify for financial aid is to fill out the Free Application for Federal Student Aid, or FAFSA®.

Your FAFSA will determine your eligibility for federal student loans, federal work-study, and federal grants. In addition, your college may use your FAFSA to determine your eligibility for aid from the school itself. Here’s a closer look at federal grants and federal work-study programs.

Federal Grants

Unlike student loans, federal grants do not need to be repaid. It may be possible to receive some grant funding to help you with financing grad school. Federal grant programs for grad students include TEACH Grants and Fulbright Grants.

The TEACH Grant, or Teacher Education Assistance for College and Higher Education Grant, has relatively stringent requirements and is available for students pursuing a teaching career who are willing to fulfill a service obligation after graduating.

The Fulbright Grant offers funding for international educational exchanges. Sponsored by the U.S. government, it supports students, scholars, teachers, and professionals to study, research, or teach abroad.

Federal Work-Study Program

Federal work-study for grad students provides part-time jobs to help cover educational expenses. These positions are often related to a student’s field of study or serve the community. Eligibility is based on financial need, and earnings are exempt from being counted as income on the FAFSA, maximizing financial aid opportunities.

Figure out What Your University Can Offer You

After narrowing down your federal options, make sure to consider what university-specific funding might be available. Many schools offer their own grants, scholarships, and fellowships. Your school’s financial aid office likely has a specific program or contact person for graduate students who are applying for institutional assistance.

Many schools will use the FAFSA to determine what, if anything, the school can offer you, but some schools use their own applications.

Although another deadline is the last thing you need, seeking out and applying for school-specific aid can be one of the most successful ways to pay for grad school. Awards can range from a small grant to full tuition remission.

Employer Tuition Reimbursement

It might sound too good to be true, but some employers are happy to reimburse employees for a portion of their grad school costs. Employers that have tuition reimbursement plans set their own requirements and application processes.

Make sure to consider any constraints your employer puts on their tuition reimbursement program, including things like staying at the company for a certain number of years after graduation or only funding certain types of degree programs.

Become an In-State Resident

If you’re applying for graduate school after taking a few years off to work, you might be surprised to find how costs have changed since your undergraduate days. Graduate students interested in a public university can save tens of thousands of dollars by considering a university in the state they already live in.

Each state has different requirements for determining residency. If you are planning on relocating to attend grad school, be sure to look into the requirements for the state of the school you are planning to attend.

Certain states require only one year of full-time residency before you can qualify for in-state tuition, while others require three years. During that time, you could work as much as possible to save money for graduate school. More savings could mean fewer loans.

Become a Resident Advisor (RA)

You probably remember your undergrad Resident Advisor (RA). They were the ones who helped you get settled into your dorm room, showed you how to get to the nearest dining hall, and yelled at you for breaking quiet hours.

RAs may be underappreciated, but they’re often compensated handsomely for their duties. Students are typically compensated for a portion or all of their room and board, and some schools may even include a meal plan, reduced tuition, or a stipend. The compensation you receive will depend on the school you are attending, so check with your residential life office to see what the current RA salary is at your school.

Serious savings. Save thousands of dollars
thanks to flexible terms and low fixed or variable rates.


Find a Teaching Assistant Position

If you’re a graduate student, you can often find a position as a Teaching Assistant (TA) or Research Assistant (RA) for a professor. The position will be related to your undergrad or graduate studies and often requires grading papers, conducting research, organizing labs, or prepping for class.

TAs can be paid with a stipend or through reduced tuition, depending on which school you attend. Not only can the job help you to potentially avoid student loans, but it also gives you networking experience with people in your field.

The professor you work with can recommend you for a job, bring you to conferences, and serve as a reference. Being a TA may help boost your resume, especially if you apply for a Ph.D. program or want to be a professor someday. According to Salary.com, the average TA earns $6 to $13 an hour, as of December 2024.

Apply for Grants and Scholarships

Applying for grants and scholarships is a smart way to fund graduate school without accumulating debt. Start by researching opportunities specific to your field, school, or demographics. Many scholarships focus on academic achievements, leadership, or community involvement, while grants often emphasize financial need.

An easy way to search for scholarships is through one of the many websites that gather and tag scholarships by criteria. Keeping all your grad school and FAFSA materials handy means that you’ll have easy access to the information you’ll need for scholarship applications.

Recommended: Scholarship Search Tool

How to Pay for Grad School With Student Loans

Grad students may rely on a combination of financing to pay for their education. Student loans are often a part of this plan. Like undergraduate loans, graduate students have both federal and private student loan options available to them.

Federal Loans for Graduate School

Depending on the loan type, payments on these student loans can be deferred until after graduation and sometimes qualify you for certain tax deductions (like taking a tax deduction for interest paid on your student loans).

There are different types of federal student loans, and each type has varying eligibility requirements and maximum borrowing amounts. Graduate students may be eligible for the following types of federal student loans:

•   Direct Unsubsidized Loans. Eligibility for this loan type is not based on financial need.

•   Direct PLUS Loans. Eligibility for this loan type is not based on financial need; however, a credit check is required to qualify for this type of loan.

•   Direct Consolidation Loans. This is a type of loan that allows you to combine your existing federal loans into a single federal loan.

Federal Student Loan Forgiveness Programs

Federal student loan forgiveness programs either assist with monthly loan payments or can discharge a remaining federal student loan balance after a certain number of qualifying payments.

One such program is the Public Service Loan Forgiveness (or PSLF) program. The PSLF program allows qualifying federal student loan borrowers who work in certain public interest fields to discharge their loans after 120 monthly, on-time, qualifying payments.

Additionally, some employers offer loan repayment assistance to help with high monthly payments. While loan forgiveness programs don’t help you with the upfront cost of paying for grad school, they may offer a meaningful solution for federal student loan repayment. (Unfortunately, private student loans don’t qualify for these federal programs.)

Private Loans for Graduate School

If you’re not eligible for scholarships or grants, or you’ve maxed out how much you can borrow using federal student loans, you can apply for a private graduate student loan to help cover the cost of grad school.

Private loan interest rates and terms will vary by lender, and some private loans have variable interest rates, which means they can fluctuate over time. Doing your research with any private lender you’re considering is worth it to ensure you know exactly what a loan with them would look like.

Also, keep in mind that private student loans do not offer the same benefits and protections as federal student loans. It’s best to use all federal funding first before relying on private funding.

Recommended: Private Student Loans vs Federal Student Loans

Steps to Take Before Applying to Graduate School

Before applying to graduate school, it’s important to consider the earning potential offered by the degree in comparison to the cost. At the end of the day, only you can decide if pursuing a specific graduate degree is worth it. Here are a few steps to take before applying to grad school.

1. Research Potential Earnings by Degree

Perhaps you are already committed to one degree path, like getting your JD to become a lawyer. In that case, you should have a good idea of what the earning potential could be post-graduation.

If you’re considering a few different graduate degrees, weigh the cost of the degree in contrast to the earning potential for that career path. This could help you weigh which program offers the best return.

2. Complete the FAFSA

Regardless of the educational path you choose, filling out the FAFSA is a smart move. It’s completely free to fill out and you may qualify for aid including grants, work-study, or federal student loans. Federal loans have benefits and protections not offered to private loans, so they are generally prioritized first.

3. Explore Financing Options

As mentioned, you may need to rely on a combination of financing options to pay for grad school. When scholarships, grants, and federal student loans aren’t enough — private loans can help you fill in the gaps.

When comparing private lenders, be sure to review the loan terms closely — including factors like the interest rate, whether the loan is fixed or variable, and any other fees. Review a lender’s customer service reputation and any other benefits they may offer, too.

The Takeaway

Grad school is a big investment in your education, but the good news is there are grants and scholarships that you won’t have to pay back. Some employers may also offer tuition reimbursement benefits, or you could find work as a Resident Advisor to supplement your tuition costs. If you need more funding to finance grad school, there are federal and private student loans.

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


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Does FAFSA give money for grad school?

Yes, FAFSA provides access to federal financial aid for graduate school, including Direct Unsubsidized Loans and Grad PLUS Loans. Graduate students may not qualify for federal grants but can explore assistantships, scholarships, and work-study opportunities through FAFSA to help cover their educational expenses.

Does Pell Grant cover a master’s degree?

No, the Pell Grant does not cover master’s degree programs. It is a federal grant specifically designed for undergraduate students with financial need. Graduate students must explore other funding options like scholarships, assistantships, and federal loans, such as Direct Unsubsidized Loans or Grad PLUS Loans, to finance their education.

Is it worth paying for grad school?

Paying for grad school can be worth it if the degree significantly boosts your career prospects, earning potential, or personal goals. Consider the return on investment, including salary increases and opportunities. Research funding options and weigh potential debt against long-term benefits to determine if grad school aligns with your financial future.


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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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


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

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

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.

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Community College vs College: Pros and Cons

Community College vs College: Pros and Cons

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

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

Key Points

•   Community colleges typically offer lower tuition fees compared to universities, making them a more affordable option for many students.

•   Community colleges generally provide two-year associate degrees and certificates, while universities offer four-year bachelor’s degrees and advanced graduate programs.

•   Community colleges often have smaller class sizes, allowing for more personalized attention from instructors, whereas universities may have larger lecture halls with less individualized interaction.

•   Universities typically offer a more vibrant campus life with a wide range of extracurricular activities, clubs, and organizations, which may be limited or absent at community colleges.

•   Community colleges often provide flexible scheduling options, including night and weekend classes, catering to nontraditional students or those balancing work and education.

What Is a Community College?

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

Community College vs University: How They Compare

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

Similarities

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

Financial Aid

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

Prerequisite Courses

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

Academic Challenge

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

Differences

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

Cost

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

Recommended: How to Pay for College

Class Size

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

Application Process

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

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

Campus Life

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

Similarities and Differences Between Community College vs. University

Topic

Community College

Colleges and Universities

Financial Aid Both types of schools may be eligible for federal student aid. Both types of schools may be eligible for federal student aid.
Prerequisite Courses Both types of schools offer general education or prerequisite courses like General Chemistry 101 or American History 101. Both types of schools offer general education or prerequisite courses like General Chemistry 101 or American History 101.
Cost Community colleges are significantly cheaper than four-year institutions. Colleges and universities are generally more expensive than community colleges.
Class Size Class sizes at community colleges are generally smaller than at four-year institutions. Class sizes may be larger at some colleges or universities. At some schools, intro level courses can have hundreds of students in a single class.
Application Process The application process for community college is usually more lenient than at four-year institutions. Colleges and universities often have strict requirements that may include a college essay, letters of recommendation, and standardized testing.
Campus Life Because many students live off-campus, campus life may be less robust than at four-year institutions. Many colleges and universities are known for having a rich on-campus life available for students and offer a variety of extracurricular activities.

Pros and Cons of Attending a Community College

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

Pros of Community College

Cost

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

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

Flexibility

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

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

Qualified Professors and Small Class Sizes

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

Cons of Community College

Limited Curriculum and Degree Programs

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

Need to Transfer for Bachelor’s Degree

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

Lack of On-Campus Life

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

Pros and Cons of Attending a Community College

Pros of Attending a Community College

Cons of Attending a Community College

Cost. Community colleges are generally more affordable than other educational institutions. Limited Curriculum and Degree Programs. Students may be limited in the types of programs and degree options available.
Flexibility. Students can choose from a variety of class times that may make it easier to work while studying and can allow them to explore a variety of academic interests. Need to Transfer for a Bachelor’s Degree. Community colleges typically offer up to an associate degree.
Qualified Professors and Small Class Sizes. Class sizes at community colleges hover around 25 to 30 students. Lack of On-Campus Life. Campus life and extracurriculars may be more robust at a four-year institution.

Pros and Cons of Attending a University

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

Pros of a University

Long-Term Earning Potential

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

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

On-Campus Life and Extracurriculars

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

Build a Network

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

Cons of a University

Cost

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

Recommended: What Is the Average Cost of College Tuition?

Social Distractions

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

Can You Combine Community College and University?

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

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

Recommended: Should You Choose a College Based on Price?

Figuring Out What’s Right for You

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

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

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

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

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

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

The Takeaway

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

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

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


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Is community college easier academically than university?

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

Is getting a degree from a community college worth it?

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

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

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


Photo credit: iStock/simonkr

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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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


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

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

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woman with graduation cap

Finding & Applying to Scholarships for Grad School

Scholarships can be a helpful resource to pay for grad school and are available through many different avenues, including states, organizations, nonprofits, companies, and more.

Grants and scholarships are similar in that they’re both gift aid you don’t typically have to repay after graduation. The main difference is that scholarships are typically merit-based, while grants are need-based.

Let’s look at some common scholarships and grants for prospective graduate students.

Key Points

•   You can find graduate school scholarships at the state level, the federal level, through your university, through your community, and through your employer.

•   Customize each master degree scholarship application to match the specific criteria of the scholarship, such as academic achievements, leadership skills, or field of study.

•   Keep track of deadlines and submit applications well in advance. Late submissions are often disqualified automatically.

•   Work with academic advisors or mentors to identify the best scholarship opportunities and ensure applications are complete and compelling.

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

State Scholarships & Grants

To find scholarships and grants at the state level, you can try contacting your state’s Department of Education for assistance and resources. Scholarships and grants vary state by state, but here are 10 options you may want to consider:

Graduate Tuition Assistance Grant (Colorado)

Provides financial support to graduate students enrolled at participating Colorado public universities. Awards are need-based and subject to fund availability.

Kansas Comprehensive Grant (Kansas)

Offers need-based grants to Kansas residents attending state universities, private colleges, or community colleges for graduate programs.

Massachusetts Gilbert Matching Student Grant (Massachusetts)

Supports financially needy graduate students attending participating colleges in Massachusetts.

Texas Public Education Grant (TPEG) (Texas)

Available to graduate students with demonstrated financial need attending Texas public colleges or universities.

Florida Student Assistance Grant (Florida)

Offers need-based aid to graduate students enrolled in eligible Florida postsecondary institutions.

New York State TAP for Graduate Studies (New York)

Provides financial aid for eligible New York residents pursuing graduate degrees at participating institutions within the state.

Oregon Chafee Education and Training Grant (Oregon)

Supports former foster youth pursuing graduate studies in Oregon with financial need.

North Carolina Education Lottery Scholarship (North Carolina)

Available to graduate students who demonstrate financial need and meet residency requirements.

Georgia Tuition Equalization Grant (Georgia)

Offers financial assistance to graduate students attending private colleges in Georgia, encouraging participation in higher education.

Maine State Grant Program for Graduate Students (Maine)

Provides financial aid to graduate students with financial need attending eligible institutions in or out of Maine.

Recommended: The Differences Between Grants, Scholarships, and Loans

Federal Scholarships & Grants

To apply for federal grants and scholarships, students will need to fill out the Free Application for Federal Student Aid, or FAFSA®, each year. There are several types of federal grants available, including:

Teacher Education Assistance for College and Higher Education (TEACH) Grants

Iraq and Afghanistan Service Grants

This federal grant is for graduate students with a parent who died serving in Iraq or Afghanistan. The grant amount is the same as the maximum amount of a Federal Pell Grant award for that year, which is $7,395 for the 2024-2025 school year. You can apply via the FAFSA.

Fulbright Grants

The U.S. Department of Education provides Fullbright Grants for graduate students to study and research in designated countries abroad.

When you visit the Fulbright website, click on your country of interest to view the details. For example, in Germany, there are 70 study/research grants available, the program lasts for 10 months, and its recommended participants speak German at the beginner level. In Iceland, there are only seven grants available, the program lasts nine months, and there is no foreign language requirement.

Finding Additional Federal Grants

To find additional federal grants for graduate school, take a look through Grants.gov or the U.S. Department of Labor’s database. On these sites, students can specify their search by things like their program, field of study, or other qualifiers.

Private Graduate Scholarships & Grants

When it comes to finding money for grad school, there are plenty of organizations, companies, and nonprofits that offer scholarship opportunities. The scholarships could be merit-based, need-based, or simply granted based on your affiliation or application.
Some scholarships are on the smaller side, others much larger, but any amount of aid can help. You may want to consider these elements while you’re on the hunt for private scholarships for graduate school:

Your College or University

Your school might offer merit-based scholarships or grants. To see what your school offers, connect with the office of financial aid to see if you qualify for any scholarships from the school and what additional steps you may need to take to apply.

Your Course of Study

You may be able to find scholarships related to your field of study. To find scholarships in your area of study, search national foundations or companies that might provide a scholarship. This might be especially helpful in STEM fields and other careers where there’s a high need for employees in the workforce.

Recommended: Scholarships for STEM Students

Your Neighborhood

Another way to find scholarships as a grad student is to see if your religious organization, local civic group, or other community organizations you belong to offer scholarships. You could reach out to see what may be available and perhaps complete the necessary applications.

Your Background

Based on your ethnicity or cultural heritage, you may be able to qualify for several scholarships or grants. Reach out to national foundations or local community groups to see what they offer.

Some specific private scholarships and grants include:

Greek Life Scholarships

Contrary to what society may think, enrolling in a fraternity, sorority, or other Greek organization has more benefits than the wild parties. Many Greek organizations reward their high-achieving members and alumni who pursue master’s degrees.

For example, members of Alpha Chi Rho could receive up to $3,500 for their graduate studies.

The Harry S. Truman Scholarship

The Truman Scholarship is for students who want to make a difference in society. If you’re pursuing a degree, such as Master of Public Administration, Master of Education, or Master of Social Work, and you have significant community service experience, you could qualify for the Truman Scholarship.

To apply, you must be pursuing any major that could lead to a career in public service and interested in a graduate degree. Between 55 and 65 students receive the Truman Scholarship per year, each receiving $30,000.

Government Finance Officers Association (GFOA) Scholarships

GFOA Scholarships are for graduate students intending to pursue a career in state or local finance. The association offers 11 scholarships ranging from $5,000 to $30,000.
The four kinds of graduate school scholarships are as follows:

•  The Goldberg-Miller Public Finance Scholarship for full-time students. Award amount is $30,000.

•  The Frank L. Greathouse Government Accounting Scholarship for full-time accounting students. Award amount is $10,000.

•  The Clark Burrus Public Service Academic Scholarship for minority students studying for a career in state or local government finance. Award amount is $10,000.

•  The Betty Jo Harker Professional Development Scholarship for part-time graduate students. Award amount is $10,000.

NCAA Postgraduate Scholarship

The NCAA Postgraduate Scholarship is for athletes who have attended an NCAA member institution for their undergraduate studies. Students must be in their final year of undergraduate athletics to apply.

The distribution of graduate school scholarships is unique. Three times per year (autumn, winter, spring), the NCAA gives scholarships to 21 men and 21 women per each sports season, for a total of 126 scholarships per year. This timeline splits up candidates based on the sport they play. Each scholarship is $10,000.

American Association of University Women

This is an example of a grant offered by a private organization rather than the federal government. The grant is specifically for women, and you must have received your most recent degree before June 30, 2017, to qualify.

The Career Development Grant recipients will receive between $8,000 and $20,000 for graduate school.

The Geological Society of America Grant

If you’re going into geological research, joining the Geological Society of America (GSA) and applying for their Graduate Student Research Grant may open up some opportunities. The GSA awarded 302 students money in 2023, with roughly 57% of students receiving aid. The average grant amount was $2,235.

These are only a few avenues to consider when looking for private graduate school scholarships. Databases and search engines can help, but don’t be afraid to get creative.

Fellowships

Unlike a grant or scholarship, graduate fellowships are money typically tied to an opportunity. Those who get a fellowship likely have to meet requirements to study, research, or work in a field for a short period. Not only will fellowships help students pay for graduate school, but they can also be a valuable opportunity to gain relevant experience.

Finding a fellowship will be specific to your field of study. One place to start your search process is by talking to your academic department for assistance or finding a nonprofit institution specializing in your field of study. Applicants should be aware that fellowships typically require a fairly rigorous application process.

How to Qualify for Graduate School Scholarships

Qualifying for graduate school scholarships involves careful planning and preparation. Below are tips to help you qualify:

•  Start by researching scholarships specific to your field of study, location, or demographics.

•  Maintain a strong academic record, as many scholarships prioritize academic excellence.

•  Demonstrate leadership, community involvement, and unique skills, which can set you apart from other applicants.

•  Craft a compelling personal statement that highlights your achievements, goals, and passion for your field.

•  Submit all required materials, such as transcripts, letters of recommendation, and essays, by the deadlines.

•  Make sure to apply for multiple scholarships to increase your chances of success, ensuring you meet the specific eligibility criteria for each opportunity.

Where to Find Scholarships for Graduate Students

When looking for scholarships for grad school, filling out the FAFSA is the first step. Just like undergraduates, the FAFSA is required for graduate students interested in federal student aid, including scholarships, grants, and student loans. Some schools may also use the FAFSA to determine aid awards.

From there, you can check in with your school’s financial aid office. They may have more information on the scholarship opportunities and requirements available at your school.

Community organizations can be another source of scholarships. Some career or professional organizations may also offer scholarships.

When to Apply for Graduate School Scholarships

Fill out the FAFSA as early as possible. Some aid may be awarded on a first come, first served basis, so completing the application early could potentially improve your chances of qualifying for some aid.

For private scholarships, be sure to track all relevant deadlines. Each scholarship may have its own deadline, so it may help to put together a spreadsheet so you can see a high level overview of important deadlines and application requirements.

Recommended: FAFSA Guide

Factors to Consider When Applying for Graduate School Scholarships

Applying for scholarships is a time commitment, but it may be time well spent if you can secure money to help pay for your graduate school program. Consider the following factors when applying to graduate school scholarships:

Eligibility Requirements

Review eligibility requirements closely. Do you need to be enrolled in a specific school or program of study? Be sure you understand and meet the eligibility requirements so you don’t waste time applying for grad school scholarships you aren’t actually eligible for.

Application Requirements

Some applications may require an essay and letters of recommendation. Think carefully about who you want to ask to write a letter of recommendation on your behalf. Be mindful of deadlines and ask with enough advance notice to give them enough time to write a letter.

Deadlines

Each scholarship may have its own deadlines. Track these closely. Many scholarships won’t accept late submissions.

Some scholarships may go unclaimed when the school year starts. Consider checking in with your financial aid office to see if there are any unclaimed scholarship funds available. For more information on appealing for these awards, take a look at SoFi’s guide to unclaimed scholarships.

Using Student Loans to Cover Grad School

Scholarships and grants aren’t the only options for paying for graduate school. You may also choose to take out graduate student loans.

After you receive grants and scholarships, it’s possible to fill in the gaps with financial aid for graduate school. Consider focusing on scholarships and grants before student loans, as those don’t need to be repaid. Student loans, on the other hand, will have to be paid back. If you’re applying for graduate federal or private loans, it’s worth noting that the process is different from applying for undergraduate loans. You can borrow more as a graduate student, but you might be looking at higher interest rates.

As a graduate student, you may qualify for a Direct PLUS Loan through the U.S. Department of Education. To qualify, you must be enrolled at least half-time and not have an adverse credit history.

If you don’t receive enough financial aid through a Direct PLUS Loan, you can consider private student loans. Rather than being provided by the government, these loans come from private businesses, banks, and online lenders. Students should focus on private student loans as a last resort, as private student loans lack the borrower protections afforded to federal student loans.

Alternative Funding for Graduate School

Other than taking on student loans, there are several alternatives to funding your graduate degree. If you’re able to work while attending school, you can save and budget to cover a portion or all of your tuition.

If you are working, you can speak with your employer to see if they offer a tuition reimbursement program. Employee tuition reimbursement might require you to stay at the company for a number of years or pursue a specific degree. Program requirements will vary by company.

The Takeaway

There are a wide array of grants and scholarships available for students pursuing graduate school. These include those offered by federal and state governments, individual schools, and other interest groups like nonprofit organizations. To find grants and scholarships, students can review online databases, speak with the financial aid office at their school, and fill out the FAFSA each year.
In addition to scholarships, students can pay for graduate school with cash savings, grants, and federal and private student loans.

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


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How do I get a full scholarship to graduate school?

It’s possible to get a scholarship that will pay for all of your graduate school costs. It can be very competitive to qualify for full-ride scholarships, so it may help to complete an application and make sure you meet all the requirements. If an essay is required, be sure to allocate enough time for writing and editing to be sure you are submitting a strong application. Some schools may offer full-ride scholarships to the top students.

What scholarships are available for graduate students?

There are a variety of scholarships available for graduate students, including federal and state scholarships, school-specific scholarships, and scholarships from private companies and nonprofit organizations.

Do master’s programs give scholarships?

Yes, many master’s programs offer scholarships to help offset tuition costs. These can include merit-based awards, need-based scholarships, and funding for specific fields of study. Additionally, universities, private organizations, and government programs often provide scholarships tailored to graduate students pursuing advanced degrees in various disciplines.

Are scholarships available for graduate school?

Yes, scholarships are available for graduate school. Fill out the Free Application for Federal Student Aid if you are interested in federal scholarships or grants. Check in with your school’s financial aid office for more resources.


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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

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


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

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

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How Can I Tell if My Student Loans Are Federal?

Many undergraduate student loans are federal loans issued through the government. But if you needed extra funds while pursuing your education or you earned an advanced degree, there’s a good chance you may also have one or more private loans in your borrowing mix.

Knowing what kind of student loans you have can help you stay up to date with your payments and also ensure that you’re aware of any benefits and relief programs that may be available. Read on to learn how you can tell which student loans are federal and which are private.

Key Points

•   Identifying student loan types is important for managing payments and accessing federal benefits.

•   Federal student loans offer flexible repayment options, including income-driven plans, while private loans generally do not.

•   Federal loans have fixed interest rates set by Congress, whereas private loans have fixed or variable rates set by lenders.

•   Federal loans provide benefits like deferment, forbearance, and forgiveness programs, which private loans typically lack.

•   Federal loans can be consolidated into a Direct Consolidation Loan, while private loans can be refinanced.

•   Resources for identifying student loan types include the Federal Student Aid (FSA) website, the lender, and the borrower’s credit report.

Characteristics of Federal Student Loans

Federal student loans are issued through the Department of Education (DOE), while private student loans are from banks, credit unions, and other private lenders, including online lenders.

For most student borrowers, federal loans are the better choice to start with. They typically come with lower interest rates, and the rates are fixed, so they won’t fluctuate. Undergraduate students are eligible for federal loans without undergoing a credit check, and they typically won’t need a student loan cosigner. And federal loans offer a variety of flexible repayment plans, with the option to pause or reduce payments if necessary. Borrowers may even qualify for a student loan forgiveness program.

Federal PLUS loans for parents and graduate students involve a credit check, and a borrower cannot have an adverse credit history, but these loan programs also have advantages that can be attractive to borrowers, including a choice of repayment plans.

Chances are, if you’re wondering “are my student loans federal or private?,” it’s likely you have at least one federal loan. As of the second quarter of 2024, more than 92% of student loan debt in the U.S. was owed on federal loans. The remaining amount was owed on private student loans.

How to Check Your Federal Student Loan Status

When you’re trying to determine the status of your federal student loans, the Federal Student Aid (FSA) website, StudentAid.gov, can be a good place to start. Log in using your FSA ID and go to the “My Loan Servicers” section on your dashboard to get a list of all the federal student loans in your name. The site also lists contact information for various loan servicers such as Edfinancial and Nelnet, if you need more details about your loan.

You also can access your loan information by using the FSA’s National Student Loan Data System (NSLDS), which tracks federal financial aid through the loan approval, disbursement, and repayment process. Or you can call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

Common Federal Loan Types

What student loans are federal? One of the most common types is federal Direct loans. The different kinds of Direct loans include:

•   Direct Subsidized: This federal loan for undergraduate students is need-based. The government pays the interest while borrowers are in school and during the six-month grace period after graduation.

•   Direct Unsubsidized: Any undergraduate or graduate student may qualify for this loan (up to a lifetime borrowing limit); it is not based on need. However, the interest on Direct unsubsidized loans accrues while borrowers are in school.

•   Direct PLUS: These loans are for graduate and professional students, or the parents of undergraduate students. A credit check is required to be approved for a Direct PLUS loan.

•   Direct Consolidation: A consolidation loan allows you to combine one or more federal student loans into one new loan. You’ll make one payment each month, and consolidation could help to reduce your loan payment amount — though it could also extend your loan term.

If you have an older federal student loan, it might be a Perkins Loan, a Federal Family Education Loan (FFEL), or a Stafford Loan. These borrowing options were discontinued a number of years ago and are no longer available, but if you had one of them, it should still be listed on your FSA dashboard.

Recommended: Can Student Loans Be Discharged?

Differences Between Federal and Private Loans

Both federal and private student loans can help you cover the costs of attending the college of your choice. But there are significant differences between them. Federal student loans, which are funded by the government, tend to offer the best rates and terms, and they come with federal benefits and protections like income-driven repayment plans and forgiveness options. Private loans don’t offer those same benefits and protections, and their interest rates are often higher.

Federal loans do have borrowing limits, however, which means students may find it necessary to turn to private loans to fill a gap in their financing. So if you hit the limit on your federal student loans at some point, it’s possible you also took out a loan from a private lender.

Here’s a closer look at how federal vs. private student loans compare:

Interest Rates

The interest rates on federal student loans are set by Congress each year and they’re fixed. Once you take out a federal loan, your interest rate remains the same for the life of the loan.

Private lenders can set their own interest rates and other loan terms. Rates may be fixed or variable and can depend on several factors, including your credit score (or the score of your student loan cosigner), loan amount, and repayment term.

Repayment Plans

Federal student loan borrowers can choose from several different federal repayment plans, including income-driven repayment plans. You can defer payments on a federal loan if you’re enrolled at least half-time, and you’ll have a six-month grace period once you graduate.

The time limit for paying off student loans varies. Under the Standard Repayment Plan, borrowers repay their student loans over a period of 10 years. On some income-driven repayment plans, however, the repayment period may be extended to up to 20 or 25 years.

With private loans, repayment plans are determined by the individual lender. Some of them may allow a borrower to defer payments while in school and for six months after graduating. Private lenders also typically offer multiple repayment terms, which can range from five to 20 years.

Deferment and Forbearance Options

Borrowers can apply for student loan deferment or forbearance if they are having trouble repaying their federal student loans. Although interest on the loans will likely continue to accrue, you may be able to temporarily postpone or lower your payments.

Some private lenders also may offer a variety of hardship options to help borrowers who run into financial difficulties while repaying their loans. Check with your lender to see what might be available for your circumstances.

Loan Forgiveness

Only federal student loans are eligible for student loan forgiveness through Public Service Loan Forgiveness (PSLF) and other federal programs.

Private loans aren’t covered under federal forgiveness programs, and private student loan forgiveness is rarely an option.

Consolidation and Refinancing

Federal student loans can be combined into a Direct Consolidation Loan, which combines federal student loans into one new loan with one monthly payment. The new loan will likely have a lower interest rate — but you can also expect to have a longer repayment period. If you decide to go this route, it’s important to be aware of all the pros and cons of student loan consolidation.

Private student loans cannot be consolidated into a Direct Consolidation Loan, but they can be refinanced, ideally with a lower interest rate if you qualify. With student loan refinancing, you replace your old loans with a new loan that has a new interest rate and terms. It’s possible to refinance federal loans as well as private loans, but it’s important to understand that when you refinance federal loans you will lose access to federal loan forgiveness, deferment, and repayment options.

Taxes

Interest on both federal and private loans may qualify for a student loan tax deduction. Qualified student loan borrowers may take a deduction of up to $2,500 in interest they paid for the year out of their taxable income.

Recommended: Guide to Student Loan Debt

Resources for Identifying Your Loan Type


To figure out what type of loan you have, log into your account at StudentAid.gov. On your dashboard you should see any federal loans you’ve borrowed in the section called “My Loan Servicers.”

There is no similar centralized website for private loans, so you’ll need to do a bit more detective work. Pull out the billing statement for your loan, and contact the lender at the number or email listed there. Ask them what type of loan it is and get any other information you need about repayment.

What to Do if You’re Unsure About Your Loan Type

If you are still uncertain whether you have a federal or private student loan, there are a few different strategies you can use to help identify the type of loan it is. Try one or more of the following methods.

•   Check StudentAid.gov. If your loan isn’t listed on your dashboard on the FSA website, it’s probably from a private lender. If your loan is federal, the site can help you find all your loan details — including the type of loan or loans you have, your loan amount, interest rate, status, and the outstanding balance.

•   Contact your lender. You can reach out to a lender directly by calling the phone number on your billing statement.

•   Contact your school. Because student loans are typically disbursed directly to your college, the school’s financial aid office may have a record of where your loan came from and whether it’s private or federal.

•   Check your credit report. Your credit report will list all of your active credit accounts — including any student loans you have and who the lenders are. You can then contact the lender to find out if the loan is federal or private.

Recommended: Fast Ways to Pay Off Student Loans

The Takeaway

If you’re not sure what type of student loan you have, there are several resources available that can help you determine whether you have federal or private student loans, including the FSA website, your college, and your lender.
Identifying your student loans is important because it can help you manage and stay on top of your payments. Plus, knowing that you have federal loans could assist you in tapping into repayment plans and forgiveness programs should your situation warrant it.

For instance, if you’d like to simplify and lower your monthly student loan payments, you could explore a Direct Consolidation loan for your federal loans. If that’s not the right option for you, or you have private loans, you may want to consider 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.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can I have both federal and private student loans?

Yes, it’s possible to have both federal and private student loans. Many borrowers first take out federal loans, but they may need private loans to fill the gap when they hit the funding limits on their federal loans.

Where can I find information about my federal student loans?

The Federal Student Aid (FSA) website, StudentAid.gov, is a good place to start when you’re looking for information about your federal student loans. Log into your account using your FSA ID and you’ll find a list of all the federal student loans in your name by going to the “My Loan Servicers” section of your dashboard.

What if I can’t remember which loans I took out?

You can check your StudentAid.gov account to get details about any federal student loans you have. You can also find information about your loans by checking your billing statements for the lender’s name and information and then contacting them directly. Other options include calling your school’s financial aid office to see if they have information about your loans, and checking your credit report for the lender’s name.

Do all government loans count as federal student loans?

Federal student loans are funded by the government. If you have a student loan from the government, it is likely to be a federal student loan. Federal student loans include Direct Subsidized loans, Direct Unsubsidized loans, and Direct PLUS loans.

How do repayment options differ for federal vs. private loans?

Repayment options for federal student loans tend to be more flexible. For instance, if you have a federal student loan, you could choose an income-driven repayment plan that bases your monthly payment on your income and family size, among other choices. With private student loans, the terms and repayment options are different for each lender, but income-driven repayment plans are generally not offered.


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SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.


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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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.


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.

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.

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.

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What to Do If You Lose Your Financial Aid

Student eligibility for financial aid does not carry over from year to year. If your financial situation changes — or your academic progress and course load take a dip — you could receive less financial aid or even lose eligibility entirely.

If your aid package is less than the year before, you might be wondering, can I get financial aid back after losing it? Students do have some options to get financial aid back, but it’s important to understand why you lost it in the first place.

Here’s a look at some possible reasons for losing financial aid, tips for working to restore it, and alternative options to help pay for college.

Key Points

•   Financial aid eligibility is reassessed annually and may be influenced by factors such as a change in income.

•   Maintaining satisfactory academic progress, including a minimum GPA and credit completion, is crucial to keep financial aid.

•   Students can contact their school’s financial aid office to find out why their financial aid was lost and possible steps to get it back.

•   It’s possible to appeal a financial aid suspension if poor academic performance was due to extenuating circumstances.

•   Those who lose financial aid can consider alternative funding sources like scholarships and grants, getting a job to help pay for school, and taking out student loans.

Why You Might Lose Your Financial Aid

How do you lose financial aid? There are several factors that could impact how much you get.

•  Rise in income: Financial aid eligibility is calculated for students each year based on information provided on the Free Application for Federal Student Assistance (FAFSA). An increase in your parents’ earnings — or your own earnings if you have a job — could bump up the amount you or your family are expected to contribute toward your education. That, in turn, reduces the financial aid you qualify for.

•  Falling grades: Your grades can affect your financial aid as well. While it may vary from school to school, students typically need to have a cumulative GPA of at least 2.0 and pass enough classes to complete a four-year bachelor’s degree program in six years.

;  Students who fail to maintain satisfactory academic progress are placed on financial aid suspension, meaning they are not eligible for federal financial aid.

•  Number of credits taken: The number of credits you take can also impact the amount of financial aid you receive. Students usually need to be enrolled in school at least half-time — taking six to 11 credits — to be considered eligible for federal financial aid. However, part-time students may have their financial aid prorated based on the number of course credits they are taking. In other cases, full-time enrollment (12 credits or more) may be required by schools for certain forms of financial aid.

•  Misconduct: Disciplinary action from violating a school’s code of conduct or academic misconduct such as cheating may result in losing financial aid, especially institutional scholarships and grants.

•  Student loan default: Finally, if you’re returning to school to pursue another degree, you could lose financial aid eligibility if you’ve defaulted on student loans. A federal student loan goes into default when you’ve failed to make payments on it for 270 days.

How to Get Your Financial Aid Back

When you’ve lost financial aid, there’s no guarantee that you’ll be successful in getting it back, but there are some strategies that may help.

•  Reach out to the financial aid office. If you’re not sure why your financial aid has been lost or reduced, contact your school’s financial aid office to find out what happened and what you can do.

•  Get your grades up. If you lost financial aid for not making satisfactory academic progress, improving your grades in the coming semester may help you regain your eligibility. However, this will likely require paying for school with other means for the time being.

•  Start an appeal. Appealing a financial aid suspension with your school could be an option if your academic performance was impacted by extenuating circumstances, such as illness or a death in the family. The appeals process typically requires filling out a form and writing an appeal letter to the college explaining the situation that led to financial aid suspension.

•  Deal with defaulted loans. Students who are in default on their federal student loans have a couple options to get out of default. You could apply to consolidate your defaulted federal student loan into a new Direct Consolidation Loan. Because the balance on student loans is due in full when you enter default, consolidation can pay off the balance quickly.

  Just be aware that a Direct Consolidation Loan adds accrued interest to the new loan principal and typically carries a higher interest rate than student loan refinancing.

  Loan rehabilitation is another option to consider if you’re in default. You’ll need to contact your lender to request a loan rehabilitation plan, which typically involves making nine monthly payments on time. The monthly payments are usually lower than your original payment rate, but keep in mind that rehabilitation is a one-time opportunity.

Recommended: Student Loan Refinancing Guide

How to Pay for College Without Financial Aid

Losing financial aid can make it challenging to attend college, but there are several alternatives to help get funding to pay for your education. Consider these options:

Scholarships and Grants

Scholarships and grants are gift aid that students typically don’t need to repay.

There are many scholarship opportunities available to students, and they each have their own eligibility requirements and application process. Scholarship eligibility can involve academic merit or financial need, or they may focus on your chosen major or participation in extracurricular activities.

Federal grants may no longer be an option if you’re on financial aid suspension. However, you could still be eligible for grants from your college, state government, nonprofit organizations, and private entities. Grants are often awarded based on financial need.

To help narrow your search, you can use a scholarship search tool to find grant and scholarship opportunities that align with your background and field of study.

Student Loans

If you lost financial aid due to a change in income, you could still qualify for federal student loans. Federal Direct Unsubsidized Student Loans, for instance, do not require borrowers to demonstrate financial need, and they’re available for undergraduate and graduate students. Bear in mind that these loans accrue interest while students are in school and there are limits on how much you can borrow.

If your financial aid was suspended for other reasons, you might consider taking out private student loans to pay for education expenses not covered by scholarships and grants. The amount you can borrow varies by lender, but you can often get up to your school’s total cost of attendance.

Unlike federal student loans, private student loans require a credit check, meaning you may need someone to cosign the loan. It’s important to compare different lenders, interest rates, and terms before deciding to apply for a private student loan.

Keep in mind that you have the option to refinance student loans to save money in the future. When you refinance, you replace your old loans with a new loan, ideally one with a lower interest rate and more favorable terms. Note that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment plans.

A student loan refinance calculator can help you see what you might save with refinancing.

Part- or Full-time Work

Many students work while going to college to help pay for school and living expenses. Consider how much time you can dedicate to a job while managing your course load to choose the best work situation.

If part-time employment makes the most sense for you, on-campus jobs are one option to consider to help pay for education expenses. If you can land a position in your field of study, a job at your school could help build skills and enhance your resume.

The Takeaway

If you lose financial aid, you may be able to get it back, though there is no guarantee.

Contact your school’s financial aid office to find out why you lost your aid and what you can do to get back on track. Students can try appealing a financial aid suspension with the school if there were extenuating circumstances for not maintaining satisfactory academic progress. You can also work to improve your grades in the coming semester to regain financial aid eligibility.

And remember, there are other options to pay for college without financial aid, including scholarships, grants, student loans, and working while going to school. If you do take out student loans, you might consider student loan refinancing once you graduate to help reduce your payments.

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.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.


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SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.


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., 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 04/24/2024 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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