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The chance to study abroad offers unique opportunities and experiences you simply can’t get at home. Taking some time to attend a college or university in another country can be personally and professionally enriching, and even life-changing. These factors can make studying abroad absolutely worth it.

But going to school in a foreign country isn’t for everyone. Being away from home and loved ones can lead to homesickness and the feeling you’re missing out (FOMO) on important family or college events back on your home turf. Depending on where you study, there could be a language barrier that can be frustrating and the cost could be higher than staying at your home university.

If you’re thinking of attending school in another country, there are numerous factors to consider. Read on to learn about how studying abroad works, its benefits and costs, and how to decide whether or not it’s worth it.

What Does It Mean to Study Abroad?

College study abroad programs allow a student to pursue undergraduate or graduate study in another country. Each year, more than 300,000 American students study, engage in internships, or volunteer abroad for academic credits, according to the U.S. Department of State. Study abroad college programs typically last one semester or a full year, but can be as short as a couple of weeks.

You may be able to study abroad through your home university’s study abroad program. This is often the most straightforward route, since it will be easy to earn credits that will directly apply to your degree requirements.

However, there are other ways you can spend a semester or year attending college in a foreign country. One is by directly enrolling at a foreign university where you may be able to use those course credits towards your degree at your home college or university. Another option is to go through a third-party study abroad provider such as Academic Programs International (API), the Council on International Education Exchange (CIEE), or the American Institute for Foreign Study.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Why Study Abroad Is Worth It

Going to school in another part of the world can be an incredible opportunity. Here’s a look at some of the benefits of studying abroad.

It Can Change the Way You See the World

Studying in another country allows you to become a more well-rounded and worldly individual. Immersing yourself in a different culture, set of customs, and traditions can broaden your horizons and expand your worldview. Meeting and interacting with an international mix of people can help you gain other perspectives and a deeper understanding of global issues. It also helps foster tolerance, empathy, and more open-mindedness.

Learn a Foreign Language

There’s only so much of a second language you can learn in a classroom. A great way to gain fluency in a foreign language is by living in that country and conversing with the locals. Even if your abroad program offers classes in English, living in a foreign country can help you become proficient or fluent in another language. This, in turn, can expand your employment possibilities and attractiveness to employers, and might allow you to work abroad after college.

Broaden Your Social Network

Even if you participate in a study abroad program run by your home university, you’ll have an opportunity to meet new people — both from the U.S. and abroad. The connections you make can turn into life-long friendships and provide social contacts who may be helpful for networking after graduation.

Increase Your Self-Confidence

Living on your own in a foreign country, where you don’t have a built-in safety net, can foster more independence and self-reliance. Navigating everyday life somewhere unfamiliar gets you out of your comfort zone and you’ll most likely have to learn to problem-solve and make decisions on your own. Choosing to study abroad can result in more self-confidence than if you had stayed at your home school all four years.

Recommended: Using Student Loans for Living Expenses and Housing

Costs Could Be The Same Or Lower

Depending on the type of program and location you choose, the cost of study abroad could be comparable to your home university. If you choose your school’s study abroad program, the tuition may be the same as if you stayed stateside. If the cost of living is lower (or the exchange rate is favorable to the U.S.dollar) where you travel to, you could potentially end up spending less.

Generally, directly enrolling in a foreign institution is cheaper than study abroad programs run by American universities or third-party providers. In many cases, you can also use your financial aid package to study abroad.

When Study Abroad Isn’t Worth It

While studying abroad offers numerous perks, there are also some drawbacks. When mulling over whether or not you should study abroad, here’s some potential cons to keep in mind.

Risk of Homesickness

Living and studying in another part of the world can result in feeling intensely homesick. Even though you might have new friends and be surrounded by others, being far from your loved ones and long-time friends may cause you to feel lonely and depressed. If you’re especially close to your family, you may experience FOMO because you’re not able to get home for events, like birthdays, weddings, or family gatherings that occur while you’re abroad.

Recommended: A Guide to Making Friends in College

Language and Culture Barriers

In a foreign country, everything will likely be different — the food, the language, the architecture. Even the local customs and social norms may be different. While this can be a positive (and a reason to go), you might find it hard to acclimate and constantly feel like a stranger in a strange land.

Costs May Be High

While studying abroad may seem like a priceless opportunity, it can come with a hefty price tag. Semester abroad programs through a third-party provider can run between $15,000 and $22,000 depending on location. These programs usually include housing and sometimes meals.

Aside from tuition, you will need to budget for other expenses like housing (if it’s not included), meals, airfare, transportation, entertainment, and books and supplies.

If your financial aid package, including federal student loans, isn’t enough to cover the tab, some private student loans can help fill in funding gaps. However, private loans don’t offer the same borrower protections (like income-driven repayment plans) as their federal counterparts.


💡 Quick Tip: 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.

International Credits May Not Transfer

If you go on a study abroad program run by your college or a major third-party provider, you likely won’t have any issues transferring credits, but this could be a problem if you enroll directly in a foreign university. Non-transferring credits could make it harder to graduate on time.

What to Know About Academics When Studying Abroad

Academically, studying alongside international students can offer a more diverse educational experience by exposing you to new insights, viewpoints, and ideas.

Studying abroad also gives you the opportunity to learn from professors who may use different teaching methods than American professors, such as greater use of group discussions or project-based learning. Plus, you may have the chance to take field trips to historical sights and museums as part of the curriculum.

Studying abroad also comes with some academic limitations. All majors may not be available as part of a study abroad program, even if your home school has an affiliation with a foreign university. For some students (particularly those with STEM majors), studying abroad could make it harder to complete all of their degree requirements within four years, leading to higher education costs.

The Takeaway

There’s a lot to take into consideration when thinking about whether or not you should study abroad, including cost, whether or not course credits are transferable, and how it will feel to be far from home for an extended period of time.

For many students, studying abroad is definitely worth it. Plus, there are scholarships, grants, and other financial aid options available to help offset the expenses. Ultimately, whether study abroad is worth the cost depends on your individual circumstances, goals, and priorities.

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

FAQ

Is it a good idea to study abroad?

Studying abroad can be a fantastic opportunity for personal, academic, and professional growth. It allows you to immerse yourself in a new culture, gain a broader perspective, and develop valuable skills, such as independence and adaptability. It can also enhance your resume, making you more competitive in the job market.

However, it’s important to consider language barriers, cultural differences, and potential homesickness. Overall, if you’re open to new experiences and willing to step out of your comfort zone, studying abroad can be a life-changing experience.

Is study abroad worth the cost?

While studying abroad can increase the cost of your college education, many students find the experience to be invaluable. The benefits of studying abroad, such as personal growth, cultural immersion, and enhanced academic and career opportunities, often outweigh the financial costs. Plus, there are scholarships, grants, and other financial aid options available to help offset the expenses.

Ultimately, whether study abroad is worth the cost depends on your individual circumstances, goals, and priorities.

What are the pros and cons of studying abroad?

Studying abroad offers numerous advantages, such as experiencing a new culture, gaining independence, expanding your network, and improving language skills. It can also enhance your academic and career prospects, as employers often value the skills and experiences gained from studying abroad.

But there are challenges as well, including language barriers, cultural differences, homesickness, and the financial cost. It’s essential to weigh these pros and cons carefully and consider how studying abroad aligns with your personal and academic goals.

Photo credit: iStock/AlexSecret

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

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

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.

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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College study abroad programs offer students an extraordinary chance to explore a new part of the world while earning credit toward a degree. Each year, more than 300,000 American students study, engage in internships, or volunteer abroad for academic credits, according to the U.S. Department of State.

Despite the culturally rich and memorable experience this offers, the cost of studying abroad can be a barrier to many students. On average, study abroad programs cost between $15,000 and $22,000 per semester.

Read on to learn more about the costs involved in spending a semester or year abroad, how financial aid can help, plus other ways to make studying abroad more affordable.

Average Cost of Study Abroad Programs

The cost of studying abroad depends on two main factors — where you go and whether you enroll directly through your host university or use a third-party provider.

Generally, enrolling in a third-party study abroad program is more expensive. It provides you with more hand-holding and guidance in the pre-planning stages and while you’re living and studying overseas.

Average study abroad costs through a third-party provider can range anywhere from $15,000 to $22,000 per semester depending on location. These programs usually include housing and sometimes meals. Depending on the country, the cost of tuition could be significantly lower if you directly enroll in a foreign university.

If your home school has its own study abroad program, the tuition may be the same as it is stateside, though they may tack on some extra fees.

The cost of studying abroad goes beyond tuition, however. You will need to budget for other expenses like housing (if it’s not included), meals, airfare, transportation, entertainment, and books and supplies.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

What the Cost to Study Abroad Covers

Here’s a breakdown of some of the key costs involved in studying abroad.

Getting There

You’ll need a round-trip plane ticket to get to and from your study abroad program, which can cost anywhere from several hundreds to thousands of dollars, depending on what part of the world you travel to. On top of your flight costs, you’ll need a passport. A new U.S. passport costs $165 and can take up to 10 weeks to process.

Many countries also require American students to get a travel visa in advance when visiting the country for studies. Costs vary widely by country. A student visa from Australia costs around $450, while one from South Africa runs about $36. Some countries, like Germany, don’t require U.S. visitors to get a student visa for studying abroad.

Recommended: 11 Ways to Make College More Affordable

Tuition and Living Costs

Typically, the price of a study abroad program will include tuition and fees at your host school, as well as some form of housing. If you directly enroll in a foreign university, you’ll need to pay tuition and housing separately. Either way, food is generally an additional expense.

Here are some examples of how much it can cost to study and live abroad:

In you go to Italy:

•   Average cost of a semester (including housing) through a third-party provider: $17,000-$21,300

•   Average cost of a semester (without housing) through direct enrollment: $1,500-$6,000

•   Average monthly cost of living (including rent): $1,200-$1,700

If you go to Costa Rica:

•   Average cost of a semester (without housing) through direct enrollment: $1,500-$3,000

•   Average cost of a semester (including housing) through a third-party provider: $8,500-$11,500

•   Average monthly cost of living (including rent): $1,100-$1,400

Recommended: How to Budget as a College Student

Local Transportation

Transportation expenses likely aren’t covered in the cost of your program. You might decide to take public transportation and purchase a metro pass, or rely on rideshare services. Either way, you’ll likely encounter some form of transportation cost while you’re abroad.

You may also want to take excursions to other cities or countries during time away. So it’s a good idea to factor in some extra funds for airfare/train tickets, food, and lodging for nearby travel. Keep in mind that financial aid won’t cover voluntary travel expenses beyond the cost of your initial round-trip flight.

Recommended: What to Do When Financial Aid Isn’t Enough

Insurance

Many U.S. universities require students studying abroad to enroll in a health emergency insurance plan to make sure they have adequate coverage for medical issues and emergencies. At New York University, for example, students studying abroad must be covered under the NYU sponsored Study Away health insurance plan, which costs around $72 per month.

Other Fees

Your home school may charge you a study abroad administrative fee. At Washington State University, for example, this fee runs around $300 for one semester abroad (for in-state students). At the University of Iowa, it runs around $1,140 for one semester abroad (for in-state students). You can check with your school’s education abroad office to see how much you might be charged.

In addition, the study abroad program you choose may come with optional costs, like class field trips, short excursions, or cooking classes with a local chef.

Recommended: How to Work Abroad After College

How to Pay for Study Abroad

If you’re worried about the high cost of studying abroad, there is good news: Much of your existing financial aid can likely be used for study abroad costs. Here’s a look at how to find funding for study abroad.

Grants and Scholarships

To find out what financial aid you qualify for, you’ll want to fill out the Free Application for Federal Student Aid (FAFSA). In addition to FAFSA-based scholarships and grants, there are many scholarships targeted specifically at students studying abroad, which you can uncover using a scholarship search engine. Third-party companies that facilitate study abroad programs also often have their own scholarships.

Federal Student Loans

Federal student loans (which may be subsidized or unsubsidized) can be used to pay for study abroad expenses, provided the school you’re attending abroad is eligible to participate in the Direct Loan program.

Federal study abroad loans for U.S. students can be used to pay tuition and fees, room and board, and other eligible expenses. Any leftover funds are disbursed to you, which you could use for travel to your destination country or basic living expenses. However, federal loans may not cover all the costs of studying overseas.


💡 Quick Tip: Federal student loans carry an origination or processing fee (1.057% for Direct Subsidized and Unsubsidized loans first disbursed from Oct. 1, 2020, through Oct. 1, 2024). The fee is subtracted from your loan amount, which is why the amount disbursed is less than the amount you borrowed. That said, some private student loan lenders don’t charge an origination fee.

Private Student Loans

If you max out the amount you can borrow in federal loans, you can turn to private student loans to finance the remaining costs. Approval for private student loans typically hinges on your credit history. You may need a cosigner for approval if you haven’t established a credit history or your credit score is lower than the minimum score the lender requires.

Private student loans offer more borrowing power than you can get with the U.S. government, but don’t offer the same protections (like income-based repayment plans). Rates are also typically higher.

Affordable Study Abroad Programs to Check Out

Here a sampling of study abroad programs that often offer affordable prices:

•   CIS Abroad (worldwide programs)

•   World Endeavors (worldwide programs)

•   International Studies Abroad (ISA) (worldwide programs)

•   Maximo Nivel (programs in Central and South America)

The Takeaway

Spending a summer, semester, or full year abroad can significantly enhance your college experience. But it can also significantly increase the cost, coming in at upwards of $15,000 per semester. Fortunately, there are funding options available to help students manage the cost of study abroad, including scholarships, grants, 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.

FAQ

What’s the cheapest country to study abroad in?

Some of the cheapest locales to study abroad in include:

•   Kyrgyzstan

•   Malaysia

•   Central Asia

•   Hungary

•   Poland

•   Kenya

•   Brazil

•   Mexico

•   South Africa

•   Portugal

Does FAFSA cover study abroad?

Yes. If you qualify for student aid through the Free Application for Federal Student Aid (FAFSA), your awarded aid funds can typically be used toward study abroad costs. The school you attend while studying abroad must participate in federal aid programs, however, and your FAFSA aid might not cover the entire cost of studying in another country.

Is a year too long to study abroad?

Not necessarily. How long you should study abroad is a personal preference and based on your budget. The latest 2023 Open Doors U.S. Study Abroad Survey found that 49% of study abroad students go for the summer term, 30% go for one semester, 2.4% go for one year.

Photo credit: iStock/wsfurlan

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

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

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.

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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Going to college is a costly proposition. On top of tuition and fees, you’ll also need to come up with funds for food, housing, and other living expenses. It can be helpful to develop a rough estimate of what expenses you can expect in college well before you head off to campus and come with a monthly student budget.

The question is, how much money do college students spend per month?

The answer will depend on several factors, including location, extracurricular activities, whether you’re commuting or living on campus, and lifestyle preferences. According to the College Board, students can expect to spend around $2,932 a month (or $26,390 for a nine-month period) on living expenses for the 2024-25 school year.

To break that number down, let’s take a closer look at how much college students spend on food, housing, and other expenses.

Financial Considerations for College Students

The first step towards creating a college student monthly budget is to complete the Free Application for Federal Student Aid (FAFSA). This will give you access to federal financial aid, including grants, scholarships, work-study, and student loans. Colleges may also use the FAFSA when allocating their own scholarships and grant awards to students.

Financial aid is intended to be used for college-related expenses, such as tuition and fees, textbooks and supplies, and room and board. However, it may not fully cover the cost of attending college. To cover any gaps in funding, you may need to tap multiple sources of money, such as savings, summer jobs, and taking out private student loans.

To help students figure out exactly how much money they’ll need for college, schools typically post the average cost of attendance on their websites. These listings will usually include the average cost of housing, food, books/supplies, transportation, and personal expenses for students attending that school.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

What Do College Students Spend Money On?

Budgeting in college will look different for every student. Some college costs will get paid up front (like tuition, fees and, in some cases, room and board), while other expenses will need to be paid on a monthly or daily basis. To estimate how much spending money you’ll need, let’s take a closer look at what college students spend money on each month, and how much they typically spend in each category.

Food

Food eats up about 30% of a college student’s monthly budget, according to the College Board. To build out a college student food budget, you’ll need to consider whether you’ll be on the school’s food plan, if you’ll do some cooking, and how often you’ll likely eat out.

On average, college students spend $670 on food per month, according to the Education Data Initiative. To break that total down further, students spend, on average, $410 a month eating off-campus and about $260 a month on groceries for cooking meals at home.

College students can choose to pay for a meal plan that provides an allotted number of meals from campus dining halls or restaurants. (Freshman are often required to purchase a meal plan). Meal plans have the benefit of being a fixed and predictable cost. The average meal plan costs $450 a month.

Housing

How much do college students spend per month on housing? Monthly housing costs will vary depending on location and whether a student lives on or off campus.

According to the College Board’s 2023 Trends in College Pricing Report, average room and board ranged from $9,970 at public two-year institutions to $14,650 at private four-year institutions for the 2023-2024 academic year. Note that room and board includes both housing and food costs, so let’s unpack the housing portion further.

The cost of living in a dorm or residence hall usually varies based on the occupancy per bedroom and number of people in a suite or apartment. You can expect to pay more for a single bedroom than a double or triple that you’ll share with other students. For example, the cost of a single occupancy room at UCLA was $15,114 for the 2023-2024 academic year; living in a double or triple cost $11,446 and $8,475, respectively.

How much students spend on off-campus housing is influenced by the cost of living by state and city, and whether they’ll live alone or with roommates. The average monthly housing cost in California ranges from $1,360 to $2,649 per month, while the average cost for Pennsylvania is between $872 and $1,259 per month.

Transportation

From getting to class to traveling home for holidays and breaks, students need to factor transportation costs into their monthly budget. How much should college students spend a month on transportation?

If you’ll be living on campus, you likely won’t need to spend a lot, since classes may be within walking distance and colleges typically provide some form of transit services, like shuttle buses, to connect academic buildings. Students living off campus may require a car to get to class, which can significantly add to transportation costs. Filling up at the pump alone costs $164 a month for the average driver in the U.S..

Transportation costs will also vary by where you go to school — and how far away it is from home. At the University of North Carolina at Chapel Hill, for example, students (including those living on and off campus) spend an average of $976 per academic year on transportation. At the University of Texas at Austin, student transportation costs run $1,682 per academic year on average.

Recommended: The Financial Benefits of Community College

Miscellaneous

Your monthly college expenses will likely go beyond the big categories, like food, housing, and transportation. Some possible miscellaneous costs you may want to including in your college budget:

•   Entertainment (e.g, going to the movies, concert tickets)

•   Cell phone plan

•   Cable/internet
Prescriptions/medical expenses

•   Clothing

•   Gym membership

•   Hobbies

•   Personal grooming

•   Gifts for friends/family

•   Travel for fun (such as weekend/spring break trips with friends)

To keep your miscellaneous and personal costs from getting too high, you’ll want to keep an eye out for student discounts and take advantage of free activities offered through your college.

Is College Worth It?

There are many reasons to go to college — exploring career paths, growing your social network, having fun, and learning life skills — but the return on investment (ROI) is a key consideration when comparing schools and programs. To determine your ROI, you’ll need to look at the cost of going to college and its impact on your potential future earnings.

For the 2023-2024 academic year, the average cost of tuition and fees for a public four-year college was $11,260 as an in-state student and $29,150 for out-of-state students. Meanwhile, the average sticker price for attending a private four-year college was $41,540.

When you multiply annual college costs by four years, the final tally is no small sum. And while graduates with bachelor’s degrees typically earn more than those without, you likely won’t recoup your investment right away. So is college worth it?

According to a report by the Institute for Higher Education Policy , for the majority of students (especially those attending a public institution), having a college degree leaves them better off financially in comparison to peers who did not go to college. Their analysis found that 83% of schools (serving 93% of undergraduates) provide an ROI within 10 years. That means that within 10 years, students recoup what they would be making with a high school diploma plus the cost of their college degree.

In short, college may well be worth it.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

Pros and Cons of Going to College Online

Online college and virtual learning opportunities have become more common following the Covid-19 pandemic. On a per credit basis, online college tuition isn’t always cheaper. However, a virtual college student’s monthly budget often has lower expenses for room and board than students who live on or close to campus.

Here’s a look at some potential advantages and drawbacks to going to college online.

Pros

•   Flexible schedule: Classes are often designed to accommodate students with work or family responsibilities.

•   Convenience: Students can learn from anywhere — no commuting or relocating required.

•   Lower living expenses: When attending college virtually, you can live anywhere (even at home), which can save money on housing.

Cons

•   Fewer majors available: Degree programs and majors that require hands-on learning like lab exercises are unlikely to be offered online.

•   Limited networking: Virtual students have less opportunities to engage with professors and classmates.

•   Increased screen time: A greater reliance on technology for lectures and coursework can mean a lot of time spent in front of a computer.

How Can I Increase My Chances of Getting a Job After College?

You can increase your chances of getting a great job after college by preparing for the job hunt well before graduation.

One key strategy is to complete a college internship either during the semester or over the summer. This can provide valuable work experience while allowing you to try out different careers and job sectors. Internships are typically part-time commitments during the academic year and may be full-time during summer break. Some internships are paid, while others count as college credit. Applying and interviewing for an internship is also an opportunity to hone your interview skills before entering the post-grad job market.

You can also better your chances of getting a good job after college by taking advantage of on-campus resources. College career services offices can often provide job leads, networking opportunities with alumni and employers, and assistance preparing for interviews. It’s also a good idea to ask a professor for a letter of recommendation — a common requirement for job applications — while still enrolled in school.

The Takeaway

A college student’s monthly budget will depend on multiple factors, including geographic location, whether they live on or off campus, the type of institution, and personal habits. After tuition and fees, housing and food often represent the largest budget categories for college students. Covering the cost of college often involves tapping a mix of funding sources, including scholarships, grants, savings, and 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.

Photo credit: iStock/martin-dm

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

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

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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Applying early decision to your top-choice college can give you an admissions advantage. But you’ll want to keep in mind that this comes with a binding agreement — if you get accepted, you are obligated to attend that school.

There are some acceptable reasons for backing out of an early decision offer, like a change in your financial or personal circumstances. But if you simply have a change of heart, you will likely face negative consequences, such as losing any deposits and potential reputation issues with other schools.

Before applying to a college early decision, you’ll want to make sure you understand the commitment you’re making. Read on to find out if early decision is legally binding and how you can get out of early decision without facing penalties.

What Is Early Decision?

Early decision is a college application process in which students apply to their preferred college early in their senior year of high school, typically by November 1 or November 15, depending on the school.

When you apply early decision, you are agreeing that, if accepted, you will attend that school the following fall. As a result, you should not apply to multiple schools under early decision — if you are caught, it can result in one or both schools revoking your acceptance letters.

Colleges let early decision applicants know if they were accepted or not in mid to late December, giving students enough time to apply to other schools should they get rejected. Typical college application deadlines are in early January to mid-February.


💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

Why Apply for Early Decision?

One of the benefits of applying to college early decision is being able to find out whether or not you’ve been accepted to the school at the top of your list early in the application cycle. If you get in, you can then take a deep breath and relax and not worry about the usual Senior year checklist.

Applying early decision also signifies your commitment to a specific college or university, which may give you a leg up in getting in. Indeed, colleges often have a higher acceptance rate for early decision applicants than for regular decision applicants. For example, Duke University accepted 16.4% of early decision applicants for the class of 2027, while regular applications experienced a 4.8% acceptance rate.

That said, early decision isn’t for everyone. If you’re not sure where you want to go to college, it’s probably not wise to apply early decision. If how to pay for college is a chief concern, keep in mind that you will not be able to compare financial aid packages from other schools if you apply early decision.

How Does Early Decision Compare to Other Admission Deadlines?

Early decision is just one of several college admission deadlines, each with its own pros and cons. Here’s a look at how early decision compares to other admission deadlines.

Early Action

Unlike early decision, early action is non-binding. Students must adhere to the same application deadline as early decision (November 1 or 15), but there’s no obligation to enroll if you’re accepted. Early action applicants can expect a response from the school by mid-December and don’t need to make a decision until May 1. You can apply to more than one school early action, since it’s non-binding.

Regular Decision

Regular decision is the standard application process with a later deadline, typically some time between early January and mid-February. It is non-binding, and students can apply to multiple colleges. Admission decisions for regular decision applicants are usually released in mid-March to early April and require a response by May 1.

Rolling Admissions

Colleges with rolling admission allow you to submit your application within a wide time frame, usually six months or so, and review applications as they come in. Typically, they will then send out admission decisions within four to six weeks, accepting students until all open slots for the incoming class have been filled. Schools with rolling admission generally start accepting applications around September 1 and continue well into the spring semester.

Is There a Penalty for Backing Out of Early Decision?

Early decision isn’t a legal contract, but backing out of an early decision agreement typically has consequences. If a college admits a student under an early decision plan, the expectation is that the student will enroll for the upcoming fall semester and withdraw any early action or regular decision applications from other schools.

Some schools actually require a deposit with your early decision application. If you back out of your agreement, you likely won’t get this money back.

Colleges also communicate with each other. If your early decision school lets other schools know you reneged on your agreement, it could have a negative impact on your applications to schools you are interested in attending.

There are exceptions, however. If you back out of an early decision agreement for a valid reason, you can likely get off the hook without any negative repercussions. For example, you may be able to break your agreement without issue if you receive a financial aid package that’s different from what you anticipated, making it difficult for you to afford the cost of attendance.

Colleges also understand if extenuating circumstances prevent a student from honoring their commitment, including an illness or death in the family that leads a student to defer enrolling for a semester or year.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

What to Do if You Can No Longer Attend Your Early Decision School

If you find you have to back out of an early decision offer, you’ll want to get in contact with the college’s admissions department as quickly as possible. The sooner you let them know, the more likely they will be to work with you. They can let you know what your next steps should be. Without a good excuse, however, it is likely any deposits or payments you’ve made so far won’t be refunded.

If your reason for backing out is insufficient financing, you may want to discuss this with the college’s financial aid office. Some schools may be willing to reevaluate a student’s financial aid package if there has been a substantial change in the family’s financial situation.

If you stick with your withdrawal decision, you’ll next need to apply to other colleges, assuming you are still planning to go to college in the fall. Most colleges have an application deadline in January, so if you made the decision to back out of early decision sooner rather than later, you likely still have time.

Keep in mind that if you reneged on your early decision application without a valid reason, the school may share this information with other colleges. As a result, you may want to cast a wide net, including plenty of safety schools.

Recommended: 5 Ways to Start Preparing For College

The Takeaway

Applying to a college early decision requires making a commitment. However, the early decision agreement you (and your parents) sign is not legally binding. In other words, the college can’t force you to pay tuition and come to their school.

If you back out of your early decision agreement for a valid reason, such as not getting the financial aid offer you were expecting or unforeseen change in your circumstances, you may be able to get out of the contract without any negative consequences.

If, on the other hand, you back out simply because you changed your mind, you could potentially lose money (if the school required a deposit with your application) and the school may share this negative information about you with other colleges, doing harm to your reputation.

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.

Photo credit: iStock/Eva-Katalin

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

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

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

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The office of Federal Student Aid provides over 10 million college students with more than $112 billion in grant, work-study, and student loan funds each year to help pay for college or career school. However, there are situations where students can lose their financial aid.

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

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

Types of Financial Aid

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

According to the annual Sallie Mae/Ipsos survey How America Pays for College, the 2023 survey found that while parent income and savings covered 50% of college costs, families still heavily relied on financial aid to cover the other half.

Grants & Scholarships

College grants and scholarships are a form of financial aid that can help make college more affordable because they don’t usually need to be repaid. The U.S. Department of Education, colleges, and universities award an estimated $95 billion in grant and scholarship money to students each year. The Sallie Mae survey also found that scholarships and grants covered approximately 29% of school costs for families during the 2022-2023 academic year.

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


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Federal Work-Study

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

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

Student Loans

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

Another option is to take out a private student loan; however, this is generally only considered after all other options have been exhausted. Private student loans don’t have the same criteria as federal student loans and may lack borrower protections, like options for deferment. Private lenders can set their own terms and repayment plans so you should read the loan terms closely before making any borrowing decisions.

Recommended: How to Pay for College

How Grades May Affect Financial Aid

Academic goals in college are common, and if you find yourself struggling in school, you may be wondering how grades affect financial aid.

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

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

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

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


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

Do Grades Affect Private Student Loans?

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

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

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

Regaining Lost Financial Aid Due to Low Grades

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

Visit a Financial Aid Office

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

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

File a Financial Aid Appeal

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

•   Death of a relative

•   Severe personal injury or illness

•   Other special circumstances determined by the school

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

Explore Private Student Loans from SoFi

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

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

FAQ

Can financial aid be taken away for bad grades?

Grades can affect your financial aid, and academic performance is evaluated based on each school’s individual SAP policy. You must remain in good academic standing to keep any type of state or federal financial aid, such as grants, loans, and work-study. Private scholarships and grants may also have their own set of requirements to keep any gift aid.

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

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

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

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

Will my FAFSA be affected if I fail a class?

As long as you make SAP, one failed class won’t affect your FAFSA.

Photo credit: iStock/harunhalici

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

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

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

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

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