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Q: Is margin trading better than options trading?

Neither margin trading nor options trading is necessarily better than the other. Both options trading and margin trading can make sense in specific situations. Which of these two investment options is best for you depends on your specific financial situation and goals.

Q: Are options trading and margin trading the same thing?

While both options and margin trading allows you to use leverage to potentially increase your returns, they are not the same. Options trading involves trading options contracts, while margin trading involves borrowing money from your broker to make investments with more cash than you have in your account.

Apr

2025

Margin vs Options Trading: Similarities and Differences

By Dan Miller | Going to College, invest, Investing | Comments Off

Editor's Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

Margin trading and options trading are two strategies that incorporate leverage, which investors may use when investing in the financial markets. But they are quite distinct, and each strategy uses leverage in a different way.

Margin trading refers to the use of borrowed funds to place bigger securities trades than investors can afford with available cash.

Options are a type of derivative, where the option contract represents shares of an underlying security. Trading options can also be a type of leveraged trade, because an investor can control a large position with a relatively small investment via the premium (the cost of each option contract).

In some cases, you need a margin account to provide collateral for certain options trades. But with some options strategies the underlying stock can serve as collateral.

Depending on the types of trades involved, both margin trading and options trading have the potential for bigger gains, but these strategies entail the potential for steep losses — including the possibility of loss that exceeds the initial investment.

Key Points

• Margin trading uses leverage to increase potential returns, but includes the risk of significant loss.

• Options are a type of derivative contract. Some options trading requires margin as collateral, but some options trades use the underlying stock as collateral.

• Margin trading the use of debt to open bigger positions, while options trading involves controlling more shares via the option contract.

• Both trading methods require special permissions from a broker.

• Both margin trades and options trading are highly complicated and recommended only for experienced investors.

Options Trading vs Margin Trading

Options trading and margin trading have some similarities, although they are fundamentally different in most ways.

Similarities

Here are some similarities between margin trading and options trading:

• Leverage: Both options trading and margin trading allow you to use leverage to amplify your position, though in different ways.

• Higher risks and rewards: Both strategies can yield higher returns if the trades move in the right direction, but they also carry the risk of losses that can exceed your initial investment, in some cases.

• Requires broker approval: Margin and options trading both require additional account approvals, since these strategies come with significant risk exposure.

Differences

Here is a look at the differences between options trading and margin trading:

• Fundamentally, options are a type of security. Margin is a strategy for using debt (i.e., margin loans) to buy more shares — it’s not a type of investment.

• How leverage is achieved:

◦ Margin allows you to borrow money to purchase more securities than you could with cash.

◦ Options are derivatives contracts that represent 100 shares of the underlying stock or security, for the price of the contract (a.k.a. the premium), which is a smaller amount than the cost of owning the shares

💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.

Options Trading and How It Works

Options are financial derivatives that allow an investor to control shares of a particular security without needing the full amount of money required to buy or sell the asset outright.

The purchaser of an options contract has the right to buy or sell a security at a fixed price within a specific period of time, paying a premium for that right.

There are two main types of options contracts: call options and put options. A call option gives the purchaser the right — but not always the obligation — to buy a security at a specific price, called a strike price. In contrast, the purchaser of a put option has the right — but again, not always the obligation — to sell a security at the strike price.

Buying and selling call and put options are two ways investors can potentially use leverage to accelerate their gains. And since options contracts fluctuate in value, traders can buy or sell the contracts before expiration for a profit or loss, just like they would trade a stock or bond.

Bear in mind that these investments carry significant risks, especially since you need to repay the margin loan, with interest, regardless of outcome.

How Does Options Trading Work?

Suppose a stock is trading at $40 per share. If you buy the stock directly and the stock price goes to $44, you will have made a 10% profit.

However, you could also buy a call option for the stock. Say that a call option with a strike price of $40 for this stock is selling for a $1 premium. When the stock price moves from $40 to $44, the call option premium might move to $2. You could then sell the call option, potentially pocketing the difference between the price of the option when you sold it and what you paid for it ($2 – $1).

This example assumes the option price has increased. If the price decreases, you may incur a loss, which could include the entire premium paid.

There are many ways to trade options, depending on your outlook on a particular asset or the market as a whole. Investors can utilize bullish and bearish options trading strategies that target short- and long-term stock movements, allowing them to make money in up, down, and sideways markets.

Aside from speculating on the price movement of securities, investors can use options to hedge against losses or generate income by selling options for premium.

Pros and Cons of Options Trading

Here are some of the pros and cons of options trading:

Pros of Options Trading	Cons of Options Trading
Depending on the options strategy used, it’s possible to make a small profit or a sizable one.	Depending on your options strategy, you may have unlimited risk
You can speculate on the price movement of stocks, hedge against risk, or generate income	Options may have less liquidity than trading a security directly
Options trading may require a smaller upfront financial commitment than investing in stocks directly	You need to be approved by your broker to trade options

Margin Trading and How It Works

Margin trading is an investment strategy in which you buy stocks or other securities using money borrowed from your broker to increase your buying power. This strategy can potentially enhance returns, but it can also magnify your losses.
In contrast, when you buy a stock directly, you pay for it with money from your cash account. Then, when you sell your shares, your profit (or loss) is based on the stock’s current price versus what you paid.

This traditional way of investing limits gains, at least compared to margin trading, but also curbs potential risk: you can only lose as much as you invest.

If you want to start trading on margin, you’ll likely need to upgrade the type of account you have with your broker. There are significant differences between a cash and margin account, and only qualified investors can access margin funds.

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 11%* and start margin trading.

*For full margin details, see terms.

How Does Margin Trading Work?

After your broker approves you for a margin account, you can buy more stocks than you have cash available. Your broker will require both an initial margin amount and a maintenance margin amount.

Margin Trade Example

Here’s one example of how margin trading works: suppose that you have $5,000 in your account, and you want to buy shares of a stock that’s trading at $50 per share. With a regular cash account, you would only be able to buy 100 shares ($50 x 100 shares = $5,000).

If the stock’s price goes up to $55, you can close your position with a 10% profit.

With a margin account, you borrow up to 50% of the security’s price. If your broker has approved you for a $5,000 margin loan, you now have $10,000 in buying power; so you can buy 200 shares of the stock at $50 per share. If the stock’s price goes up to $55 in this example, your profits will be higher. You can sell your 200 shares for $11,000.

Then, after repaying your margin loan of $5,000, you still have $6,000 in your account, representing a 20% profit. (This hypothetical example does not include the cost of interest on the margin loan or any fees.)

But keep in mind that the increased leverage works in both directions. If you buy a stock on margin and the stock’s price goes down, you will have higher losses than you would if you just purchased with your cash account.

If you enter into a margin position and the value of your account drops, your broker may issue a margin call, and force you to either deposit additional cash or sell some of your holdings (if you fail to cover the shortfall, the broker can sell securities in your account to do so).

Pros and Cons of Margin Trading

Here are some of the pros and cons of margin trading:

Pros of Margin Trading	Cons of Margin Trading
Increased buying power for your investments	Higher risk if your trades move against you
Using margin may give you access to more investment choices	Your broker may force you to add more cash and/or sell your investments if they issue a margin call
Margin loans can be more flexible than other types of loans	Most brokers charge interest on the amount they loan you on margin

How to Decide Which Is Right for You

Both options and margin trading can be successful investment strategies under the right conditions.

You may consider margin trading if you want to enhance your buying power with additional capital. If you want a type of investment with more flexibility, options trading might be suitable for you.

In either case, make sure you manage your risk so that you aren’t put in a situation where you lose more money than you are comfortable with.

The Takeaway

Options and margin trading are just two of the many investing strategies investors can consider when exploring ways to incorporate leverage. While investors are not able to sell options or covered calls on SoFi’s options trading platform at this time, they can buy call and put options to try to benefit from stock movements or manage risk.

Experienced traders may find either margin or options trading to be a worthwhile part of their portfolio, depending on their risk tolerance and goals.

Investors who are ready to try their hand at options trading despite the risks involved, might consider checking out SoFi’s options trading platform offered through SoFi Securities, LLC. The platform’s user-friendly design allows investors to buy put and call options through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors. Currently, investors can not sell options on SoFi Active Invest®.

Explore SoFi’s user-friendly options trading platform.

FAQ

Is margin trading better than options trading?

Neither one is necessarily better than the other. Both options trading and margin trading can make sense in specific situations. Remember that options are a type of derivative, which is a type of investment. Margin is a trading strategy that relies on debt to increase a position. The two can overlap because there are some options trades that require a margin account for collateral.

How much margin is required to buy options?

Margin is not required to buy or sell options contracts. However, you may use a margin loan to provide collateral for options trading, if it’s appropriate.

Are options trading and margin trading the same thing?

Both options and margin trading allows you to use leverage to potentially increase your returns, but they are not the same. Options trading involves trading options contracts, while margin trading involves borrowing money from your broker to make investments with more cash than you have in your account.

Photo credit: iStock/Just_Super

SoFi Invest®

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SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
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For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
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.

SOIN-Q125-114

Apr

2025

Selective Service System Question on FAFSA

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

When you file the Free Application for Federal Student Aid (FAFSA®), question 22 allows you to sign up for the Selective Service System (SSS). The FAFSA is a free document that you can fill out to learn more about your eligibility for financial aid, including federal student loans, grants, work-study, institutional scholarships, and more.

The SSS provides the Department of Defense with a list of names in the case of a national emergency that requires a draft. When they turn 18, male U.S. citizens and immigrants must register with the Selective Service System.

Keep reading to learn the answer to, “What is the Selective Service System and FAFSA connection?” and what it might mean for you or your student.

Key Points

• Filing the FAFSA allows individuals to learn about their eligibility for various financial aid options, including federal loans, grants, and scholarships.

• Registration with the Selective Service is no longer required to receive federal financial aid, following changes implemented by the FAFSA Simplification Act of 2020.

• Males must register for the Selective Service within 30 days of turning 18, with potential penalties for failing to do so, including loss of certain benefits.

• Applicants can choose to complete the Selective Service registration through the FAFSA or the official website, but completing either is sufficient for compliance.

• Upcoming FAFSA changes for the 2024-25 academic year include a new eligibility formula and the replacement of the term “Expected Family Contribution” with “Student Aid Index.”

Do You Have to Register for Selective Service to Receive Financial Aid?

As mentioned, you do not have to register for Selective Service in order to receive financial aid. If you failed to register in the past and you weren’t exempt from registering for Selective Service, the Department of Education would not allow you to obtain federal financial aid. This meant you could lose access to student loans, grants, and work-study programs. The rule changed due to the FAFSA Simplification Act of 2020.

Men must register for Selective Service within 30 days of their 18th birthday, though the Selective Service accepts late registrations up until age 26. Note that those who were assigned the male sex at birth must register. Failure to do so is a felony and punishable by up to five years in prison and $250,000 in fines.

You may also forfeit the following benefits if you fail to register for the Selective Service:

• State-based student loans and grant programs in certain states

• Federal job training under the Workforce Innovation and Opportunity Act

• Federal and possible state and local jobs

• Delay of U.S. citizenship proceedings for immigrants

Why the Question Is Still on FAFSA

The Selective Service question gives those who must register an easy way to fill out the draft form — you can do it at the same time you file the FAFSA.

How to Answer the Question about Selective Service

It’s helpful to know why people must register for Selective Service. If a crisis requiring a draft were to occur, those required to register would be called through a random lottery number based on year of birth. You’d be examined for mental and physical fitness before being drafted into the Armed Forces.

You can now completely skip over the question about registering for Selective Service on the FAFSA if you choose.

Recommended: FAFSA 101

Is It Better to Register for Selective Service Through FAFSA?

It’s not “better” to register for Selective Service through either the FAFSA or through the Selective Service System website as long as you complete one or the other. However, if you have to fill out both the Selective Service registration and the FAFSA, it may make sense to fill out the FAFSA and take care of both at once.

If you register on the Selective Service website, you’ll provide your:

• Gender

• Name

• Address

• Social Security number

• Birthdate

• Email

• Phone number

• How you learned about Selective Service registration

Will Applying for Financial Aid Get Me Drafted?

Applying for financial aid will not automatically “get you drafted” into the military.

What Happens if I Don’t Submit the FAFSA?

If you don’t submit the FAFSA, you could lose out on thousands of dollars of financial aid to help you attend college. Here are some of the different types of financial aid you could lose out on by not filing the FAFSA:

• Grants: Grants are a type of financial aid that you don’t have to pay back and can come from the federal government, such as qualifying for Pell Grant, Federal Supplemental Educational Opportunity Grants (FSEOG), Teacher Education Assistance for College and Higher Education (TEACH) Grants, and Iraq and Afghanistan Service Grants. You may also lose out on state grants as well.

• Scholarships: Scholarships also do not have to be repaid and they can come from colleges and universities based on the results of the FAFSA. They can be based on academic merit, talent, or a specific academic area.

• Work-study: The federal work-study program allows you to earn money by getting a part-time job on campus.

• Loans: Federal student loans, which must be repaid, allow you to tap into student loans at a lower interest rate. You can borrow up to a certain amount over the course of your academic career. The government pays the accrued interest on subsidized loans while you’re in school part-or half-time while you repay the principal. In the case of unsubsidized loans, you’ll pay the interest that accrues while you’re in school as well as the principal.

You may also be able to access student loan forgiveness for military students and other types of aid. In addition to learning about FAFSA, it’s a good idea to organize your finances using a Ca$h Course guide for college students.

Upcoming Changes With FAFSA

In addition to the FAFSA Selective Service changes, other 2023–24 FAFSA changes include the removal of drug conviction eligibility questions and the retirement of the myStudent Aid app on June 30, 2022.

You’ll be required to fill out this question when completing the FAFSA, but drug convictions no longer affect your eligibility for federal student aid.

The myStudentAid mobile app launched in October 2018 to allow families to complete the FAFSA in app form. However, due to lack of use and families’ preferences of accessing StudentAid.gov on a mobile device instead of the myStudentAid mobile app, the myStudentAid mobile app was removed from app stores on July 10.

Other changes to the financial aid eligibility formula will affect the 2024-25 academic year, including fewer questions about untaxed income, a change in the term “Expected Family Contribution (EFC)” — it will become the “Student Aid Index (SAI).” The term makes it more clear that the SAI refers to an eligibility index for student aid, not the FAFSA amount — the amount a student will pay for school.

In addition to these changes, the parent who provides the most financial support for a student must complete the FAFSA and the discount for families with more than one child in college also goes away.

Important FAFSA Deadlines

The FAFSA opens on October 1 during each new academic year. There are a few different types of deadlines you need to consider. For the 2022-23 academic year, you must submit the FAFSA on June 30, 2023 by 11:59 p.m. Central Standard Time (CST). Corrections or updates must be submitted by 11:59 p.m. CST on Sept. 9, 2023.

However, colleges may have their own deadlines and each state also has its own deadline , which you should check prior to filing the FAFSA. Learn more about the FAFSA with SoFi’s FAFSA guide.

The Takeaway

In the past, Selective Service and FAFSA were intertwined. You’d be asked, “Are you registered with the Selective Service system on the FAFSA?” As a male, you were required to register in order to receive financial aid. In the past, if you failed to register and you weren’t exempt, you would see student loans denied to you, as well as access to grants and work-study programs. However, you no longer have to register for the Selective Service system for FAFSA. The FAFSA and Selective Service rule changed due to the FAFSA Simplification Act of 2020.

After exhausting their federal financial aid options, some borrowers may turn to private student loans to fill in the gap. While these can lack borrower protections afforded to federal student loans, they can be helpful if all other avenues of financing have been depleted.

SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees.

3 Student Loan Tips

1. 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.

2. Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

3. Would-be borrowers will want to understand the different types of student loans peppering the landscape: private student loans, federal Direct subsidized and unsubsidized loans, Direct PLUS loans, and more.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/SDI Productions

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Apr

2025

15 Seasonal Jobs for College Students in 2025

By Melissa Brock | Financial Topics, Going to College, Life & Career | Comments Off

College students are uniquely positioned to take advantage of seasonal jobs since they tend to have summers off from school and long holiday breaks. This gives them the opportunity to earn extra money for college and get some hands-on work experience to put on their resume.

Whether you’re looking for a job that lets you earn as much money as possible to help pay your college expenses, or a position that’s in the same field as your studies, there are a variety of seasonal jobs for college students that may be right for you.

Read on to learn more about the best seasonal jobs for college students.

Key Points

• Seasonal jobs offer college students income and work experience, and can help them pay expenses and build a resume.

• Job opportunities include virtual assistant, social media marketer, tutor, lifeguard, and landscaper, with varying pay rates.

• Winter jobs like professional driver, warehouse worker, and snow remover provide income during cold weather months.

• Jobs such as pet sitter, babysitter, and summer school teacher are ideal for college students during the summer.

• Holiday jobs in retail and gift wrapping offer flexible work opportunities during the school break.

Why Is It Important for College Students to Find a Seasonal Job?

Landing a seasonal job as a college student is crucial for a number of reasons. First, it can give you income to pay your bills, including college expenses. You might even want to start paying the interest that accrues on some of your student loans while you’re in school, including your private student loans.

Along with paying for a college degree, other reasons for college students to get a seasonal job include gaining work experience, developing skills to put on your resume, and getting the chance to network and meet working professionals who may be helpful to you when you’re looking for a full-time job after graduation. A seasonal job can also teach you things like time management, effective communication, and how to collaborate with others.

What Are the Best Seasonal Jobs for College Students?

Here are some of the best seasonal jobs for college students based on such factors as wages, job availability, and the skills required.

Virtual Assistant

Virtual assistants are remote administrative contractors who assist businesses with a wide range of duties, including administrative support, customer service, social media management, email marketing, bookkeeping, data entry, research, transcription, and content or website management. Because these jobs are virtual, college students can do them no matter where they live.

Average pay: $7.21 to $62.74 an hour

Social Media Marketer

In this position, college students are employed by a company to use social media platforms such as Facebook, Instagram, and TikTok to promote the company. They might work on projects to reach new customers, engage with current customers, and announce new services and products. Their day-to-day tasks could range from writing posts, optimizing performance, and responding to comments and messages, to helping to plan the company’s social media marketing strategy.

Average pay: Approximately $26.18 per hour

Tutor

Working as a tutor can be a natural fit for those in college. You can connect with other students and help them learn by explaining information in a way that’s relatable to them.

You can find work as a tutor by advertising your services at your college, getting a job at a local learning center, or signing up with campus tutoring services. You could also join an online tutoring platform like Tutor.com.

Average pay: $7.25 to $43.40 per hour

Recommended: Student Debt by Major

Winter Seasonal Jobs for College Students

Wintertime offers some special seasonal jobs for college students to do part-time and help pay for college. These are some options to consider.

Professional Driver

Becoming a professional driver, such as a delivery truck driver, can be a lucrative job for a college student. To become a professional driver who drives a delivery truck, however, you will first likely need to obtain a commercial driver’s license. In the training you’ll learn technical driving skills, safety procedures, and federal and state regulations, and get track-driving practice.

You can also be considered a professional driver if you drive to earn money for a ride share company or do food delivery. These jobs usually don’t require a commercial license.

Average pay: $26.12 per hour for a professional driver with a commercial license; $14.42 to $20.19 for rideshare drivers

Warehouse Worker

Warehouse workers pack and ship orders, and manage, organize, and retrieve warehouse materials. They might also transport merchandise from distribution centers, and identify missing, damaged, or lost merchandise. Some warehouse workers may need a forklift license and the ability to lift heavy objects.

Average pay: $17.81 per hour

Snow Remover

If you’re willing to shovel snow or you have a vehicle such as a pickup truck or an SUV that you can use for snow plowing, you may want to consider a snow removal job. You can put up posters advertising your services in town, or you can approach local companies to see if they need snow plowing help. You might also be able to get a job working for a local snow plowing business.

Average pay: $50 to $204 per snowfall

Resort Jobs

In the winter, there are often jobs available at ski resorts, spas, and lodges. You might find employment as a room attendant, front desk clerk, food server, bellhop, and more. Check with resorts in your area to see what’s available

Average pay: Earnings vary depending on the job; room attendants earn $18.25 per hour.

Food Service Worker

Colleges frequently need food service workers for cafeterias, cafes, and coffee shops on campus. Some of these positions may be work-study jobs, which are a type of federal financial aid. To qualify, you must submit the Free Application for Federal Student Aid (FAFSA) and receive work-study money as part of your financial aid award.

Aside from work-study food service jobs, you can look for positions in the food industry at local restaurants and brew pubs. These jobs may be fairly plentiful in college towns, which often have a number of different dining establishments.

Average pay: $17.52 per hour

Seasonal Summer Jobs for College Students

Whether you stay at college in the summer or go back home you will likely have about three months to devote to a summer job.

Pet Sitter

If you love animals, this could be the perfect summer gig for you. Since summertime is the prime vacation season, you may be able to find many pet-sitting opportunities.

As a pet sitter, you’ll typically go to people’s homes to care for their pets for a set amount of time each day, or even overnight. Tasks include feeding pets, walking dogs, cleaning litter boxes, administering medications, and playing with the pet.

You can alert prospective clients to your services via social media, including Facebook, TikTok, and Instagram. You can also ask around in your neighborhood to see who might need a pet sitter.

Average pay: About $25 for a 30-minute visit, $20 to $30 a day, $45 to $75 per overnight, or $250 to $375 per week

Babysitter

Many parents need help in the summer when their kids are home from school. As a babysitter, you may spend time playing with children, doing crafts with them, feeding them, and taking them to activities like sports practice, doctors’ appointments, and summer camp sessions.

Average pay: Approximately $23.61 per hour for one child

Summer School Teacher

If you are an aspiring teacher who has completed their bachelor’s degree, you could become a summer school teacher in a school district. For such a position, you’ll need your degree plus certification or licensure in your state.

For a somewhat similar but less formal summer school job, you could consider tutoring, working at a summer camp, or getting a position as an assistant in a kids’ arts or music program.

Average pay: $15 to $49 an hour for summer school teachers

Lifeguard

Lifeguarding is a popular job for college students since you get to spend your days at a pool or beach. You must pass a swimming test and undergo a lifeguard training and certification program that usually includes First Aid and CPR/AED training.

Average pay: $13 to $15 per hour

Landscaper

As a landscaper, you’ll do such tasks as plant flowers, mow lawns, prune trees, aerate soil, and fertilize plants and lawns. If you like to be outdoors, you’re able to do heavy lifting and digging, and don’t mind getting dirty, this could be a rewarding summer job for you.

Average pay: $15.94 per hour

Seasonal Holiday Jobs for College Students

On your year-end break from school, you can earn some extra money by getting a seasonal job for college students. Many businesses need additional help during the holidays, and some big companies hire tens of thousands of seasonal employees.

Retail Employee

Retailers often offer some of the best seasonal holiday jobs for college students. Retailers like Dick’s Sporting Goods, Target, Walmart, Macy’s, Bath & Body Works, Kohl’s, and J.C. Penney employ many seasonal workers for the season. Companies like Amazon also offer seasonal jobs, so consider looking there as well.

Average pay: $15 to $24 per hour, though it varies depending on the retailer

Gift Wrapper

If you enjoy wrapping presents for family and friends, why not do it professionally? Many retail stores offer gift wrapping services to their clients, and they’re typically looking for seasonal employees to fill this role. The job typically involves paying attention to detail while working quickly to meet customer demand during the holiday rush.

Average pay: $9 to $17 per hour

Recommended: Student Loan Forgiveness Guide

Other Ways to Pay for College Tuition

In addition to getting a seasonal job, there are a number of other options you can use to help pay for college. The more money you can put toward your college expenses now, the easier getting out of student loan debt later on may be.

First, be sure to fill out the FAFSA for any federal financial aid you might qualify for, including scholarships, grants, and federal student loans. These loans come with specific federal student loan interest rates that can vary from year to year.

You can also look for private scholarships and grants. This type of gift aid may be offered by your state, various organizations, and some businesses. SoFi’s scholarship search tool can help you find different gift aid opportunities.

Another alternative is to take out private student loans. These loans are offered by banks, credit unions, and private lenders. Private student loans have fixed or variable rates, and the rate you may qualify for depends on your credit history, among other factors. You can opt to refinance student loans in the future to get a lower rate or better terms if you’re eligible.

A student loan payment calculator can help you determine what your loan payments might be.

Student Loan Options From SoFi

Getting a seasonal job for college students is one way to help pay for college. Federal financial aid, such as federal student loans, scholarships and grants can also help you cover your school costs. And private student loans can supplement your federal financial aid and help fill in the gaps.

SoFi has private student loan options you can explore, as well as student loan refinancing. With refinancing, you replace your existing loans with a new private student loan, ideally one with a lower rate and more favorable terms. Just be aware that if you refinance federal student loans, you won’t be able to access federal benefits such as income-driven repayment plans.

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.

About the author

Melissa Brock

photo credit: iStock/jacoblund

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 FOREFEIT YOUR EILIGIBILITY 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.

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.

SOSLR-Q324-037

Apr

2025

College Scholarships for Single Moms

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

Pursuing a college education as a single mom can be both challenging and rewarding. With the added responsibilities of parenting, managing finances, and balancing schoolwork, finding the necessary resources to fund your education is essential. Fortunately, there are numerous scholarships specifically designed to support single mothers in achieving their academic goals.

Keep reading to learn various types of scholarships for single moms, their eligibility requirements, and how to apply, empowering you to pursue your educational dreams.

Eligibility Requirements

Eligibility requirements for scholarships for single moms differ from scholarship to scholarship. Carefully review the qualifications for each scholarship so you understand whether you’ll qualift. Beyond being a single parent, scholarship committees may impose other requirements, such as:

• Citizenship

• Where you live

• Academic qualifications (grade point average/test scores)

• Major in college

• Credit hours in college

• Financial qualifications; may require filing the Free Application for Federal Student Aid (FAFSA)

• Essay requirement

• High school or college transcripts

• Letters of recommendation

• Extracurricular activities

It can be tricky to keep all the eligibility requirements organized for each scholarship, so you may want to create a spreadsheet to keep it all straight.

How to Find Scholarships for Single Moms

Scholarship databases can help you find scholarships specifically geared toward single moms, and you can also look for scholarships based on keywords specific to your area, major, and more. For example, you may want to use the keywords “scholarships for single moms in medical school” or other criteria that will allow you to find scholarships for your situation.

Furthermore, you can also file the FAFSA to learn more about the types of scholarships you can apply for based on the school you want to attend.

Scholarships for Single Moms

Below is a list of scholarships for single mothers. Make sure to check out the requirements and deadlines for each.

• The Colwell Law Group, LLC Single Parent Scholarship: To qualify for this $1,000 award, you must be enrolled in an undergraduate, graduate, or law program within the U.S., have a minimum GPA of a 3.0 on a 4.0 scale, and submit an up-to-date resume, current official or unofficial transcripts, and a 750-word essay about how being a single parent has impacted your life.

• Women-in-Transition Scholarship: This scholarship offers $8,000 over two years to students pursuing a bachelor’s degree at a four-year college or university or $4,000 over two years for students pursuing an associate’s degree. Students must maintain a 3.0 GPA, enroll in an accredited school in the U.S., commit to an accounting or finance degree, and demonstrate financial need.

• Patsy Takemoto Mink Education Foundation: The Patsy Takemoto Mink Education Foundation offers up to $5,000 for students at least 17 years of age pursuing a first degree at an accredited postsecondary institution. Individuals must demonstrate financial need to qualify for this scholarship.

• ANSWER Scholarship: The ANSWER Scholarship, which typically ranges from $2,750 per year for associate’s degrees to $5,500 per year for bachelor’s degrees, goes to primary female caregivers with at least one school-age child. Applicants must be U.S. citizens and legal residents of Mecklenburg, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Rowan, Stanly, or Union County in North Carolina or Lancaster or York County in South Carolina. They must also attend accredited institutions in those counties and plan to achieve specific degrees. Recipients must also participate in the Mentors for Mom Program, maintain satisfactory academic performance, as well as attend ANSWER luncheons and fundraisers.

• Jeannette Rankin National Scholar Grant: National Scholar Grant applicants must be 35 or older, demonstrate financial need, and have a plan for reaching their goals. They must also be pursuing a technical or vocational education degree, an associate’s degree, or a first bachelor’s degree at an accredited institution. The award is worth up to $2,000 per year for up to five years.

• Judith McManus Price Scholarship for Women and Minorities in Planning: This $5,000 scholarship is for women and minority students enrolled in Planning Accreditation Board (PAB)-approved programs who are citizens of the U.S. and who demonstrate need.

• Beatrice F. Kroesche Memorial Scholarship: Applicants for this $1,000 to $2,000 scholarship for single parents must enroll in the College of Education or Department of English at the University of Utah. Applicants must carry at least 12 hours of study and maintain a 3.0 GPA or better.

• Women With Promise Scholarship: Full- or part-time students who are residents of north Texas and plan to attend accredited institutions can apply for this scholarship. Students can receive between $250 and $5,000 for tuition, books, and fees.

These aren’t the only scholarships available. Search for other scholarships as well, and check for potential scholarships at your intended college or university.

Types of Scholarships Available for Single Moms

Single moms can tap into two main types of scholarships for moms: need-based and merit-based scholarships. What’s the difference between the two? Let’s dive into it below.

Need-Based Scholarships

Need-based scholarships are scholarships for women given to students based on financial need. In most cases, students qualify for financial need if they have a low income. Need-based aid often comes from the government, though nonprofit organizations and businesses may prioritize giving scholarships and awards to low-income students.

In many cases, students may also qualify for grants, which do not need to be repaid. For example, a student with high financial need might receive the Pell Grant after filing the FAFSA. For the 2025-26 school year, students can potentially receive a maximum Pell Grant award of $7,395. The Pell Grant amount adjusts every year.

Merit-Based Scholarships

Merit-based scholarships are not based on need, but rather a multitude of other factors, such as:

• Academic achievements (such as GPA or test scores)

• Extracurricular activities

• Leadership

• Community service

• Talents and skills

They come from a wide variety of sources, such as colleges and universities, private organizations, and businesses. Check with the college or university you plan to attend to learn more about merit-based scholarships. In most cases, you’ll have to submit your application materials to the college or university to qualify for merit-based scholarships, which could include:

• Transcripts

• Recommendation letters

• Resume

• Essays

• Interviews

• Performance or display (such as in the case of theater, music, or art merit-based scholarships)

What happens if you don’t qualify for need-based or merit-based scholarships or grants? You can tap into private student loans or student loans for single parents.

Tips for Applying

To successfully apply for scholarships and increase your chances of getting selected, consider the following tips:

• Meet application deadlines. One of the most important things you can do is to meet your application deadlines. Make sure to give yourself plenty of time to gather materials — including letters of recommendation — so the application doesn’t look rushed or messy.

• Apply for everything. Apply for everything that fits your situation, even if the award amount is small. Smaller awards ($250 to $500) usually have less competition, so your odds are greater when it comes to being selected.

• Write a good essay. The essay is your opportunity to showcase your situation and qualifications. If needed, hire a proofreader to ensure your essay is error-free.

• Don’t get discouraged. If you get declined for a scholarship, there are thousands of others available. Consider all your qualifications, not just the ones that have to do with your single parent status.

• Use our scholarship search tool. Our scholarship search tool, arranged in order of closest deadline, helps you see scholarships by keyword, award type, location, study level, and more. Learn more about our monthly $2,500 Scholarship Sweepstakes.

The Takeaway

Securing a scholarship can be a transformative experience for single moms pursuing higher education, providing both financial support and motivation to achieve academic and career goals. By understanding the various scholarships available, carefully reviewing eligibility requirements, and submitting strong applications, single moms can significantly reduce the cost of their education and focus more on their studies.

If scholarships aren’t enough to pay for the cost of college, you can rely on cash savings or 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

Is there a limit on how many scholarships you can apply for?

No, you can apply for as many scholarships as you want, but keep in mind that the college or university that you apply to may revoke some awards if you earn more in outside scholarships than the allowable limit. For example, if you receive a $10,000 outside scholarship, it may affect your financial aid award. Get in touch with the college or university of your choice to learn more.

Are there scholarships for single dads, too?

Absolutely! Use Google to search for scholarships for single dads, just like you would for scholarships or grants for single mothers. Ask your college or university for information about other scholarships and awards (including merit-based scholarships) you can apply for, as well.

Do I need to be a full-time student for single mom scholarships?

No, not necessarily. You can get grants and scholarships for single moms whether you are a part-time or full-time student. However, check the scholarship requirements. If it’s not clear, check with the scholarship committee for more information.

About the author

Melissa Brock

Photo credit: iStock/miniseries

SOISL-Q324-035

Apr

2025

Tuition Reciprocity Agreements: What to Know

By Melissa Brock | Going to College, Student Loans, student_loan | Comments Off

Tuition reciprocity agreements allow students from one state to attend a public college or university in another state for reduced or in-state tuition rates. Tuition reciprocity can be a great option for students who want to cross state lines to attend college but can’t afford expensive out-of-state tuition prices.

Learn how tuition reciprocity works, the states that have reciprocity agreements, and how to qualify.

What Is Tuition Reciprocity?

Tuition reciprocity is an agreement that lets students in participating states attend college or university in other participating states for a discounted tuition or the in-state tuition rate rather than the out-of-state tuition fee.

This can be a significant savings because out-of-state tuition is typically far higher than in-state tuition. In 2023-2024, the average in-state tuition rate at four-year public institutions was $11,260, while the average out-of-state tuition was $29,150 — or 159% more expensive. Tuition reciprocity can be a valuable way to make college more affordable.

With a lower tuition rate, an individual may end up with less student loan debt since theoretically they wouldn’t need to take out as much in federal or private student loans.

How Does Tuition Reciprocity Work?

Tuition reciprocity agreements are offered by states throughout the country, though not every state has them. Generally, states with these agreements border each other or are located in the same geographic region. Students who are residents of one of the participating states and go to school in another participating state may be eligible for these programs, which can make it easier to cover the cost of attendance.

Tuition reciprocity isn’t automatic, however. It depends on factors like the type of school you’re applying to, the degree program you’re interested in, and whether you can qualify for tuition reciprocity through that degree program. For instance, to qualify, you might need to pursue a major that’s not offered by colleges in your home state.

Contact the schools you’re considering to learn more about their in-state tuition information and how their tuition reciprocity process works.

Recommended: Scholarship Search Tool

Public vs. Private Colleges

Tuition reciprocity is more common at public institutions than it is at private colleges. While some private schools do have reciprocity agreements, the reduced or discounted tuition rate they offer is typically much less than it is at public colleges.

Which States Have Tuition Reciprocity Agreements?

Many states have tuition reciprocity agreements, and there are networks of these programs in different regions of the country. Here are some of them.

Midwest Student Exchange Program (MSEP)

The Midwest Student Exchange Program offers reduced tuition at more than 70 public colleges and universities for students from the following Midwestern states:

• Indiana

• Kansas

• Minnesota

• Missouri

• Nebraska

• North Dakota

• Ohio

• Wisconsin

Students who are able to take advantage of MSEP save an average of $7,000 a year on tuition.

New England Board of Higher Education (NEBHE) Tuition Break Program

Permanent residents of the states listed below who are enrolled in an eligible degree program at a two- or four-year public college or university in New England may be able to save an average of $8,600 a year in tuition through the New England Board of Higher Education (NEBHE) Tuition Break Program.

• Connecticut

• Maine

• Massachusetts

• New Hampshire

• Rhode Island

• Vermont

Academic Common Market (ACM)

The Academic Common Market of the Southern Regional Education Board (SREB) offers in-state tuition rates at more than 2,200 undergraduate and graduate programs at over 100 public institutions across the southeast. ACM typically saves students more than $14,000 per year.

The participating states are:

• Alabama

• Arkansas

• Delaware

• Florida (only participates at the graduate level)

• Georgia

• Kentucky

• Louisiana

• Maryland

• Mississippi

• Oklahoma

• South Carolina

• Tennessee

• Texas (only participates at the graduate level)

• Virginia

• West Virginia

Regional Contract Program

• Arkansas

• Delaware

• Georgia

• Kentucky

• Louisiana

• Mississippi

• South Carolina

Western Undergraduate Exchange (WUE)

More than 160 public colleges and universities in the states below participate in this program. On average, students save $11,000 a year through WUE.

• Alaska

• Arizona

• California

• Colorado

• Commonwealth of the Northern Mariana Islands

• Guam

• Hawaii

• Idaho

• Montana

• Nevada

• New Mexico

• North Dakota

• Oregon

• South Dakota

• Utah

• Washington

• Wyoming

Western Regional Graduate Program (WRGP)

Those going to grad school at a public university in one of the following states may be able to take advantage of a graduate student reciprocity agreement through the The Western Regional Graduate Program. Students who are eligible for WRGP can save an average of $14,000 a year.

• Alaska

• Arizona

• California

• Colorado

• U.S. Pacific Territories and Freely Associated States

• Hawaii

• Idaho

• Montana

• Nevada

• New Mexico

• North Dakota

• Oregon

• South Dakota

• Utah

• Washington

• Wyoming

Professional Student Exchange Program (PSEP)

Aimed at students pursuing careers in health fields, this program may help them save between $8,900 to $35,700 per year on tuition. The following states and territories participate in PSEP:

• Alaska

• Arizona

• Commonwealth of Northern Mariana Islands

• Colorado

• Guam

• Hawaii

• Montana

• Nevada

• New Mexico

• North Dakota

• Utah

• Wyoming

Recommended: How to Save Money in College

What Are the Advantages of Tuition Reciprocity?

By qualifying for tuition reciprocity, you can reap a number of benefits, namely substantial savings on your college education. The advantages of tuition reciprocity include:

• A tuition rate that could be half of what you’d pay as an out-of-state student. Over four years, that may result in tens of thousands of dollars saved.

• The opportunity to pursue an academic degree you might otherwise not be able to afford. Some tuition reciprocity programs can even put graduate school within reach.

• Less college debt to repay. With a significantly lower tuition rate, you likely won’t have to take out as much in student loans to help fill the gap. And once you graduate, you could consider student loan refinancing for your private student loans to potentially save even more money if you can qualify for a lower interest rate or better terms.

Applying for Tuition Reciprocity

To take advantage of a tuition reciprocity program, you’ll need to be a resident of one of the participating states and planning to go to school in another participating state. There may be other eligibility criteria as well, such as living in your state of residence for a certain number of years. Check with the program to see what the specific requirements are.

Next, find out if tuition reciprocity is available at the school(s) you’re interested in. If it is, learn how the process works. The application process may differ from school to school. For instance, you might need to be accepted to a school first and then separately apply for the tuition reciprocity program. Ask your school’s admissions or financial aid office about the details.

The Takeaway

Tuition reciprocity can significantly reduce college costs by giving eligible students access to reduced or in-state tuition rates. Check to see what programs are available in your state or region, what the eligibility criteria are, and if the schools you are interested in participate in the program.

By taking advantage of tuition reciprocity, you may have less student loan debt to repay when you graduate. And there’s the possibility to refinance your student loans in the future for better rates and terms if you choose to, which may also help you save money on your education.

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

FAQ

What states have reciprocity for in-state tuition?

Many states across the country offer tuition reciprocity. Check with your state as well as any school you’re considering to see if they participate in such a program. Public colleges and universities are more likely to offer tuition reciprocity than private schools are.

How do tuition reciprocity agreements work?

Tuition reciprocity agreements allow students to get reduced or in-state tuition rates at public colleges and universities in another state for significant savings. Students who are residents of one of the participating states and go to school in another participating state may be eligible.

What is reciprocity as it relates to tuition?

Tuition reciprocity is an agreement that allows students who live in one participating state to attend a college or university in another participating state for reduced or in-state tuition rates, which are typically substantially lower than out-of-state rates.

About the author

Melissa Brock

Photo credit: iStock/blackCAT

SOSLR-Q324-003