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When applying for financial aid to fund their college educations, students and their parents are often introduced to words they’d never heard of before. To help you learn the lingo, here are definitions of important financial aid terms, plus information about different ways to pay for college.

Award Letter

A financial aid award letter goes by a few different names: merit letter, award letter, a financial aid offer, or a financial aid package. But no matter what you call it, once a student fills out a FAFSA, they’ll receive one of these letters from each college that accepts them. A typical letter will list a student’s cost of attendance, expected family contribution, awarded grants and scholarships, work-study details, and federal student loans. Many schools now provide this information electronically.

Bursar, Student Accounts, or Student Financial Services

The bursar is the office responsible for managing student billing and payments at a college or university. This department handles tuition, fees, and other charges, ensuring that students’ accounts are up to date.

The student accounts office oversees the financial records of enrolled students, including tuition payments, fees, and any outstanding balances. This office ensures that students meet their financial obligations and may assist with setting up payment plans, issuing statements, and explaining charges on a student’s account.

Student financial services is a broader department that combines financial aid, student accounts, and sometimes the bursar’s office to provide comprehensive support. This office helps students understand financial aid packages, manage tuition payments, and explore funding options such as scholarships, grants, and loans.

Cost of Attendance

A student’s cost of attendance (COA) is the total of all costs to attend college in a given year. This includes tuition, room and board, book and supplies, loan fees, costs associated with studying abroad or managing a disability, and more.

The COA is different from an invoice a college may send a student, which is more comprehensive. The COA figure is used to determine how much financial aid a student may be eligible to receive. Anyone who receives a form of financial assistance is not responsible for paying the full COA.

CSS Profile

The CSS Profile (College Scholarship Service Profile) is an online financial aid application used by many colleges, universities, and scholarship programs to determine a student’s eligibility for nonfederal financial aid. Unlike the FAFSA, which is used for federal aid, the CSS Profile provides a more detailed analysis of a family’s financial situation, including income, assets, and expenses. Administered by the College Board, the application helps institutions award need-based grants, scholarships, and institutional aid.

Demonstrated Need

Demonstrated need is the difference between the cost of attendance (COA) at a college or university and a student’s Student Aid Index (SAI), as determined by financial aid applications like the FAFSA or CSS Profile.

Schools use this figure to determine a student’s eligibility for need-based financial aid, including grants, scholarships, and subsidized loans. The higher the demonstrated need, the more financial assistance a student may qualify for, though the amount awarded varies by institution and available funding.

Enrollment Status

Enrollment status refers to a student’s classification based on the number of credit hours they are taking in a given academic term, which can affect financial aid eligibility, loan repayment, and other benefits.

Common statuses include full-time, half-time, and part-time, with full-time students typically taking at least 12 credit hours per semester.

FAFSA (Free Application for Federal Student Aid)

FAFSA is the official government form that students must fill out to be eligible for federal student loans and grants. Filling the FAFSA out does not guarantee that a student will receive aid, but it must be completed annually in order to be considered for the upcoming academic year. The information provided will be used to calculate a student’s Student Aid Index (below).

Recommended: Who Qualifies for FAFSA? Find Out if You Do

FAFSA Submission Summary

FAFSA submission summary (formerly known as the Student Aid Report or SAR) is a document provided to students after they submit the Free Application for Federal Student Aid (FAFSA). It summarizes the information reported on the FAFSA, includes the Student Aid Index (SAI), and indicates potential eligibility for federal financial aid.

Financial Aid

Financial aid refers to funding provided to students to help cover the cost of higher education, including tuition, fees, books, and living expenses. It can come from various sources, such as the federal government, state agencies, colleges, and private organizations.

Recommended: FAFSA Grants and Other Types of Financial Aid

Financial Aid Office

The financial aid office is a department within a college or university that assists students in understanding, applying for, and managing financial aid. It provides guidance on available aid options, including grants, scholarships, loans, and work-study programs. The office helps students complete required forms like the FAFSA and CSS Profile, determines eligibility for aid, and processes disbursements.

Financial Aid Officer

A financial aid officer is a professional at a college or university who helps students and families navigate the financial aid process. They assist with completing applications like the FAFSA and CSS Profile, determine eligibility for grants, scholarships, and loans, and provide guidance on payment options.

Financial aid officers also explain award packages, help students understand borrowing responsibilities, and offer advice on managing education costs.

529 Savings Plan

A 529 savings plan is a tax-advantaged investment account designed to help families save for future education expenses. Contributions grow tax-free, and withdrawals for qualified education costs — such as tuition, fees, books, and room and board — are also tax-free. These plans are sponsored by states, educational institutions, or agencies, but funds can typically be used at eligible schools nationwide.

Grant

Grants are used to help fund a qualifying student’s college education, and unlike loans, they typically don’t need to be paid back. They are often based on financial need and are available from private and public organizations. Some grants have criteria that a student must meet, such as maintaining a certain grade point average or declaring a certain major.

Loan

A student loan is a type of financial aid designed to help students cover the costs of higher education, including tuition, fees, books, and living expenses. These loans can come from federal or private lenders, with federal loans typically offering lower interest rates and more flexible repayment options.

Recommended: Private Student Loans

Merit Aid

Merit-based assistance is based upon a student’s abilities and accomplishments. This can include their grade point average, athletic achievements, or another skill. Financial need is not typically taken into account. Students generally receive merit-based aid directly from the college.

Need-Based Financial Aid

Need-based assistance is provided to students based on their financial needs, and is commonly offered by federal and state governments, colleges, and other organizations. There are three types of federally granted need-based financial aid: Pell Grants, work-study programs, and Subsidized Direct Student Loans.

To qualify for federal need-based aid, a student must fill out the FAFSA. Colleges may require additional information for non-federal aid. Simply applying for need-based aid does not mean a student will receive it, though applying early may potentially improve their chances.

Need-Blind Admission

Need-blind admission is a policy used by some colleges and universities where an applicant’s financial need is not considered during the admissions process. This means that students are admitted based on their academic qualifications and achievements, without regard to their ability to pay for tuition or other expenses.

Schools with a need-blind policy often provide financial aid packages to help cover the cost of attendance for admitted students, regardless of their financial background. This approach aims to ensure that all qualified applicants, regardless of financial resources, have equal access to higher education.

Net Price

The net price of college refers to the amount a student and their family will actually pay for college after accounting for financial aid, scholarships, and grants. Unlike the sticker price or listed tuition fees, the net price subtracts any aid offered by the school, making it a more accurate reflection of the cost a student will need to cover.

Net Price Calculator

A net price calculator is an online tool provided by colleges and universities to help prospective students estimate the amount they may need to pay for college after financial aid is applied. By inputting financial information, such as family income, assets, and other relevant details, students can receive an estimate of their net price, including tuition, fees, and potential financial assistance in the form of grants, scholarships, and work-study.

Outside Scholarship

An outside scholarship is a financial award for education that comes from sources other than the college or university a student plans to attend. These scholarships can be offered by private organizations, foundations, corporations, or government agencies and are typically based on criteria such as academic achievement, community service, or specific interests.

Recommended: SoFi’s Scholarship Search Tool

Priority Date

A priority date refers to the deadline set by colleges or financial aid programs for submitting the FAFSA or other required financial aid forms to receive maximum consideration for aid. Students who apply by the priority date are more likely to qualify for limited funding sources, such as grants, scholarships, or work-study opportunities.

Reserve Officers’ Training Corps (ROTC)

The Reserve Officers’ Training Corps (ROTC) is a college-based program that prepares students for military service as commissioned officers while allowing them to earn a degree. ROTC programs are available for the Army, Navy, and Air Force, and students typically commit to military service after graduation in exchange for financial assistance.

ROTC can significantly reduce or eliminate student loan debt by providing scholarships that cover tuition, fees, and sometimes room and board. Additionally, ROTC graduates who serve in the military may qualify for student loan repayment programs, where a portion of their loans is paid off in exchange for active-duty service.

Recommended: Does ROTC Pay for College?

Residency Requirements

Residency requirements refer to the criteria a student must meet to be considered a resident of a particular state for tuition and financial aid purposes. These requirements vary by state and typically include factors such as the length of time a student has lived in the state, proof of permanent residency (e.g., driver’s license, voter registration), and financial independence from out-of-state parents.

Scholarship

A scholarship is a type of funding awarded to students to help them pay for a college education. They are available through federal and state government sources, colleges, private and public organizations, and more.

Unlike loans, scholarships typically don’t need to be repaid. They can be based on need or merit, or a combination of the two. There is a wide range of scholarship possibilities, so it can be worthwhile for the student to research their options and apply for ones that seem to be a good match.

Recommended: Finding Scholarships for Current College Students

Student Aid Index (SAI)

The Student Aid Index (SAI), formerly Expected Family Contribution, is a number colleges use to determine a student’s eligibility for financial aid. It’s calculated using a formula that considers a family’s income, savings, investments, benefits, family size, and more.

Recommended: How the Middle Class Affords College

Transcript

A transcript is an official record of a student’s academic performance and coursework completed at a school, college, or university. It typically includes details such as courses taken, grades received, credit hours earned, and cumulative GPA.

There are two types of transcripts: Official and unofficial. An official transcript is a certified record of a student’s academic history, issued by the school with an official seal or signature, often sent directly to institutions or employers. An unofficial transcript contains the same information but lacks official authentication and is typically used for personal reference.

Undergraduate

An undergraduate is a student who is pursuing a postsecondary education program that leads to an associate or bachelor’s degree. Undergraduates typically complete general education courses along with coursework specific to their chosen major. Unlike graduate students, they have not yet earned a bachelor’s degree and are in the early stages of higher education.

Work-Study

The federal government’s work-study program provides college students who have demonstrable financial need with part-time jobs to help them earn money for their college education. The program attempts to match a student with work in their area of study or in jobs that benefit the community. Students who are interested in this program should check with their colleges of choice to see if they participate.

Private Student Loans at SoFi

When it comes to how to pay for college, it helps to understand all the available options and how they may be combined. Students and their parents may have money to contribute to help cover the expenses. Scholarships and grants can reduce the bill and typically don’t need to be paid back, while work-study opportunities allow students to earn money to cover some expenses while in college. And lastly, students can rely on both 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.

FAQ

What is a cosigner?

A cosigner helps assure lenders that someone will pay back the loan. Their income and financial history are factored into the loan decision, and their positive credit standing can benefit the student’s loan application.

What’s the difference between a student loan lender and a student loan servicer?

Lenders lend borrowers money to help cover school-related costs. Servicers send borrowers their monthly bill, process payments, field customer service requests, and handle other administrative tasks.

How do I calculate my college costs?

There are several online tools to help students estimate the potential cost of attending college. Net price calculators, for instance, are available on a school’s website and give cost estimates based on basic personal and financial information provided by the student.

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

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

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

SOISL-Q125-016

All student loans are not alike. In fact, shopping around for a loan is not so different from buying a car. Some lenders offer better deals than others, and it helps if you know a little something about what’s “under the hood.”

Read on to find out what to look for when comparing student loans — from interest rates and fees to payback terms and special protections for borrowers. Soon, you’ll be able to choose a loan with confidence that it’s the right one for you.

Understanding Private Student Loans

Private student loans can help bridge the gap when federal aid and scholarships aren’t enough to cover the full cost of college. Unlike federal loans, which are backed by the government, private student loans are offered by banks, credit unions, and online lenders, each with its own terms, interest rates, and eligibility requirements.

What Are Private Student Loans?

Private student loans are education loans provided by private lenders to help students pay for tuition, books, and living expenses. They typically require a credit check and may have fixed or variable interest rates. Unlike federal loans, private loans do not offer benefits like income-driven repayment plans or loan forgiveness programs.

Recommended: A Complete Guide to Private Student Loans

Differences Between Private and Federal Student Loans

Private and federal student loans differ in several key ways, including eligibility requirements, interest rates, and repayment options.

Federal loans are funded by the government and typically offer fixed interest rates, income-driven repayment plans, and loan forgiveness programs, making them more flexible for borrowers. They do not require a credit check (except for PLUS loans) and often have lower interest rates.

In contrast, private student loans are provided by banks, credit unions, and online lenders, usually requiring a credit check and often a cosigner. These loans may have fixed or variable interest rates, fewer repayment options, and no federal borrower protections.

Undergraduate Student Loans

Undergraduate private student loans are designed for students pursuing a bachelor’s degree. These loans typically require a creditworthy cosigner since most undergraduates have limited credit history. Interest rates may be fixed or variable, and repayment options vary by lender.

Graduate Student Loans

Graduate student loans cater to students seeking advanced degrees, such as master’s, law, or medical degrees. Students can access federal loans, like Direct Unsubsidized Loans and Grad PLUS Loans, which typically offer fixed interest rates and flexible repayment options. Private lenders also provide graduate loans, often requiring a credit check or cosigner for approval.

Specialized Student Loans

Some private lenders offer specialized student loans for specific fields, such as medical, dental, law, or business school students. These loans may have unique benefits, like extended grace periods, higher borrowing limits, and flexible repayment options to accommodate the rigorous demands of certain professional programs.

Recommended: What You Need to Know About Student Loans, Grants, and Scholarships

4 Key Factors to Consider When Comparing Loans

When comparing private student loans, it’s important to evaluate several key factors to ensure you choose the best option for your financial needs. Weighing the factors below will help you choose the right lender and loan for you.

1. How Much Do You Need to Borrow?

When calculating how much you’ll need to borrow the first year, answer the following questions to the best of your knowledge:

•   Will you have an off-campus job?

•   Will you receive any tuition assistance from your family?

•   How is tuition structured at your institution? At some colleges, you may pay per credit. Other colleges have flat tuition, regardless of how many credits you take.

•   Living expenses should be a part of your calculations. Are there ways to trim those costs? For example, can you live at home or with roommates? Can you rely on public transportation instead of your own car?

•   How many years will it take to complete your course of study? Does it make sense to take an accelerated program and complete coursework in fewer years? On the flip side, can you stretch out coursework to make more time for a part-time job?

•   Do you need to spend all four years at your first-choice college? Some students minimize their overall tuition bill by spending a year or two at a state or community college before transferring to a pricier dream school.

You may even want to look at how well your future income will cover your bills after graduation. Search job listings and talk to recent grads in your potential field of study to get the scoop on entry-level salaries.

All this will give you a solid understanding of how much you’ll need to borrow. The next step is to compare the loans available from a variety of lenders.

2. Do You Need a Cosigner?

Private loan terms are mostly determined by the borrower’s financial history, employment status, and credit score. The longer your history and higher your score, the better your interest rate. Since most students have a minimal credit history, they often apply for student loans with a cosigner.

A cosigner is someone who agrees to pay the loan in case the main borrower is not able to. A cosigner needs to provide financial information (such as employment status) and agree to have their credit checked. Should there be any issues with repayment on the loan, both the borrower’s and the cosigner’s credit may be affected.

3. What Are the Loan Terms?

Your loan “terms” will determine the overall cost of your loan and your monthly payments. These terms include:

Interest Rate

Your interest rate will partly determine how much money you owe over the life of the loan. Many private lenders have an online tool that allows potential borrowers to see their estimated interest rate before they apply for the loan.

Interest rates may be either fixed or variable. A fixed rate means the rate won’t change during the life of the loan. A variable rate can fluctuate over time. Variable rates may start lower than fixed rates but can go higher in the future. Sometimes, a variable rate makes sense for people who plan to pay off the loan quickly. A fixed rate is a good idea for people who want to budget the same amount per month.

Length of Loan

A shorter loan term typically has higher monthly payments but is less expensive, since interest has less time to accrue. A longer repayment period usually has lower monthly payments, but will cost you more in interest overall.

Another factor to consider is prepayment penalties. This is when a lender charges you a fee for paying off your loan before the end of the loan term. Many private lenders allow prepayment without any fees, but make sure to check with any lenders you are considering.

Repayment Options

Repayment schedules vary by lender. Some may allow borrowers who are in school to defer payment until after they graduate. Others may allow student borrowers to make interest-only payments.

Find out whether or not the lender offers flexibility in switching repayment plans during the life of the loan.

Loan Fees

Lenders make money on loans by charging borrowers interest. Some student loan lenders also charge additional fees. Student loan fees may include:

•   Origination fees – charged by the lender for processing the loan

•   Late payment fees

•   Returned-check fees

•   Loan collection fees

•   Forbearance and deferment fees

Before you choose a private loan, find out what fees (if any) you may incur.

Recommended: How Do Student Loans Work?

4. How Good Is the Lender’s Customer Support?

The above three factors are what’s known as “loan terms.” The last factor has to do with how the lender will support you, the borrower, during the life of the loan. This includes:

Customer Service

If you have questions or concerns, how can you contact your lender? Can you call a live person, or must you deal with a chatbot?

Financial Tools

Some lenders offer financial resources and tools to their borrowers, such as webinars, articles, and calculators.

Factors Affecting Private Student Loan Rates

Private student loan interest rates are influenced by several factors, including the borrower’s creditworthiness, loan term, and whether the rate is fixed or variable. Lenders assess financial history, income, and the presence of a cosigner to determine risk. Additionally, market conditions and lender policies play a role in setting interest rates.

Credit Score

A borrower’s credit score is one of the most significant factors affecting private student loan rates. Higher credit scores typically qualify for lower interest rates, as they indicate responsible financial behavior and lower risk to lenders. Those with lower credit scores may face higher rates or require a cosigner to secure better terms.

Pros and Cons of Private Student Loans

Private student loans can be a useful option for borrowers who need additional funding beyond federal aid. While they offer flexibility and higher borrowing limits, they also come with potential downsides, such as varying interest rates and fewer borrower protections. Understanding the pros and cons can help determine if they are the right choice.

Benefits of Private Student Loans

Benefits of private student loans include:

•   Higher borrowing limits than federal loans

•   Competitive interest rates for borrowers with strong credit

•   Flexible repayment options, such as interest-only payments while in school or extended loan terms

Drawbacks of Private Student Loans

Cons of private student loans include:

•   Lack income-driven repayment plans and loan forgiveness options

•   Higher interest rates for those with lower credit scores

•   Often require a cosigner, which can put financial responsibility on someone else if the borrower struggles with repayment

The Takeaway

If you’re new to borrowing money — as most undergrads are — you may not know what to consider when choosing a student loan. Before you shop around, determine how much you need to borrow by creating a college budget that includes tuition and fees, books and supplies, and living expenses.

When comparing loans from different lenders, you’ll want to look at the interest rate, length of the loan, any fees and penalties, and the lender’s reputation for customer service. It all comes down to saving money over the life of the loan. If you’re careful, you won’t pay more than you need to.

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 factors should you consider when comparing student loan lenders?

When comparing lenders, consider interest rates, loan terms, fees, repayment options, and customer service reputation. Evaluating these factors ensures you choose a lender that offers the best financial flexibility and minimizes long-term borrowing costs.

How do interest rates impact the cost of a student loan?

Interest rates determine how much you’ll pay over the life of the loan. Fixed rates provide stable payments, while variable rates can change over time, potentially increasing costs. Choosing a lower rate can help reduce total repayment amounts.

What are some common repayment options offered by student loan lenders?

Many lenders offer options like deferment while in school, interest-only payments, and income-driven repayment plans. These flexible repayment options can help students manage their finances and avoid defaulting on their loans.

Photo credit: iStock/LSOphoto

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

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

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

SOISL-Q125-015

For millions of students, pursuing a college degree means taking on some amount of debt. That’s because college costs have risen much faster than wages, and the average cost of a four-year degree has far outpaced the rate of inflation in the past 20 or so years.

Today, a typical student borrows more than $35,000 to pursue a bachelor’s degree. That amount can be even higher for students pursuing a degree needed for higher-paying jobs, such as those in medicine or law.

Here are the professions whose graduates, on average, owe the most. This list is not exhaustive, and rankings can change based on different data sets.

Average Student Loan Debt by Profession

While it’s true that jobs for people with higher degrees can pay in the six figures, student loan debt can make a significant cut into earnings. Considering student loan debt, along with salary, can give a more complete picture of what kind of financial future many graduates face.

1. Oral Surgeon

Even with a relatively high salary, oral surgeons typically graduate with a large student loan burden. The debt has a significant effect on their professional and personal decisions for decades to come, according to the American Association of Oral and Maxillofacial Surgeons.

The organization has lobbied for student loan reform, including halting interest accrual on student loans during an internship or residency, making sure fair income-based repayment structures are in place, and allowing qualified participants in the Public Service Loan Forgiveness Program (PSLF) to have remaining loan balances forgiven earlier than the standard 10 years.

Average student loan debt: $584,000

Median salary: $334,310

2. Orthodontist

Like other dental school graduates, orthodontists may face substantial student loan debt. After dental school, orthodontists train for orthodontics during a residency that can last several years.

The American Association of Orthodontists has supported legislation aimed at student loan reform: “Reducing interest rates and fees and allowing refinancing for today’s graduates are critical steps to helping them repay these loans sooner and more efficiently so they can begin to invest in their futures and careers,” Dr. Nahid Maleki, a former association president, has said.

Average student loan debt: $570,000

Median salary: $243,620

3. Endodontist

Less than 3% of all dentists are endodontists, according to the American Association of Endodontists. Endodontists specialize in diagnosing and treating complex causes of tooth pain as well as root canal treatment. The field requires two to three years of education and training beyond dentistry. This means that endodontists may shoulder a greater debt burden than their dental school counterparts.

“The high cost of a dental or medical education is a crippling problem and threatens the future of our specialty,” Dr. Keith V. Krell, then president of the American Association of Endodontists, said. The organization has supported legislation to “funnel more money into dental schools so that unreasonable tuition costs can be offset.”

Average student loan debt: $544,000

Median salary: $263,789

4. Dentist

Many dental students bite off a lot of debt. While the dental industry can be thought of as relatively recession-proof (your aching tooth doesn’t care about market fluctuations), dental spending may become flat during and after lean times while the supply of dentists rises.

Navigating insurance as a dental practice can also be tricky for practice owners, and the field can be competitive and crowded for new dentists.

Average student loan debt: $296,500

Median dentist salary: $185,360

Recommended: Budgeting as a New Dentist

5. Radiologist

While radiologists can be high earners in the medical field, they also may hold a staggering amount of debt that accumulates during medical school and residency. The American College of Radiologists has supported legislation to halt interest accrual during residency.

Currently, residents can request deferment or forbearance on loans, depending on their circumstances, but even if granted, interest accrues. This can add thousands or tens of thousands of dollars to the balance of a radiologist’s student loan debt.

Average student loan debt: $234,597

Median salary: $437,000

6. Obstetrician-Gynecologist

For many med students, medical residency is when student loan debt balloons. Unlike their high-earning counterparts who may immediately begin earning six-figure salaries after grad school, med students earn an average of $67,400 during residency.

During this time, interest may accrue on loans. Increasing patient loads, malpractice vulnerabilities, and more have led to burnout in this profession. According to the American College of Obstetricians and Gynecologists, a shortage in the speciality may be on the horizon.

Average student loan debt: $234,597

Median salary: $336,000

7. Anesthesiologist

Residency requirements can cause interest accrual to add to the debt load of these medical professionals. The American Society of Anesthesiologists supports legislation that would allow borrowers to qualify for interest-free deferment on loans while in residency.

The legislation has been introduced to Congress but has not gained traction. The work of an anesthesiologist can be grueling: Some reports have shown that anesthesiologists have a higher risk of burnout than other physicians.

Average student loan debt: $234,597

Median salary: $339,470

8. Physician

Also called a doctor, primary care physician, or family practitioner, a physician is an essential element of primary care for all ages, and a point of contact who works with other doctors to diagnose and treat patients. Not a medical specialty, this umbrella term can also refer to pediatricians and internal medicine doctors.

While the career path may not be as lucrative as some specialized medical careers, it offers intangible benefits, such as control over your hours worked and the ability to get to know your patients, according to the American Academy of Family Physicians (AAFP).

But the salary compared with student loan debt can make the debt burdensome. The AAFP has advocated for federal loans and scholarship programs that target primary and family care as well as interest deferment during residency.

Average student loan debt: $234,597

Median salary: $239,200

Recommended: Budgeting as a New Doctor

9. Osteopath

Members of one of the fastest-growing segments of health care, according to the American Osteopathic Association, osteopaths take a whole-person approach to medicine. Osteopaths may practice all medical specialties, but attend an osteopathic medical school where they receive specialized training in the musculoskeletal system.

The osteopathic association found that 86% of osteopathic medicine graduates have student loan debt. Like their medical school counterparts, osteopath students can be susceptible to burnout.

Average student loan debt: $257,335

Median salary: $206,351

10. Pharmacist

Pharmacists require undergraduate and graduate school degrees, and the career path can be varied upon graduation. Some pharmacists enter research and development, while others choose to work with patients in hospitals, clinics, or commercial settings.

This can allow for career flexibility for pharmacists, as they can balance family and personal obligations with a career. But student loan debt can become a burden for pharmacists that can affect their financial decisions for decades. As with other professions, the challenge becomes balancing debt with future financial goals such as saving adequately for retirement.

Average student loan debt: $170,956

Median salary: $136,030

11. Physician Assistant

Educated at the master’s degree level, a physician assistant can diagnose, treat, and prescribe medication to patients and can often be a patient’s main health contact. A physician assistant does not have to go through the years of medical school and residency training of doctors but still must have hours of clinical experience.

The career is in demand, with three-quarters of graduates receiving multiple job offers after graduation, according to the American Association of Physician Assistants. But the student debt burden can be intense.

Average student loan debt: $112,000

Median salary $130,020

12. Lawyer

“Lawyer” has come to mean “high earner,” but the truth is much more nuanced. Lawyers have a large income discrepancy based on the type of law they pursue and the state they practice in. Some 71% of law school graduates have some form of student loan debt, and the average debt has risen in the past several decades.

For example, in 2000, law school graduates came out of the gate with an average of $59,000 (nearly $88,000, adjusted for inflation) in student loans, while today, new graduates have an average of $130,000 in cumulative debt. The American Bar Association has lobbied the government to provide student loan debt relief for lawyers.

Average student loan debt: $130,000

Median salary: $145,760

13. Physical Therapist

Physical therapists must earn a doctor of physical therapy degree, a three-year course after a bachelor’s degree. After graduation, physical therapists may do a residency or fellowship, or may begin practicing right away. Salaries can depend on the type of work a physical therapist pursues. Student debt can affect those decisions.

According to the American Physical Therapy Association, 70% of respondents to a survey said debt caused anxiety. The association has been advocating for physical therapists on Capitol Hill, lobbying for more scholarship opportunities for therapists from underrepresented backgrounds and inclusion of physical therapists in the National Health Service Corps Loan Repayment Program, a loan repayment program for health professionals.

Average student loan debt: $116,183

Median salary: $99,710

14. MBA Holder

Many people think a master of business administration degree (MBA) translates into a high-salary career, and while it’s true that graduates of top programs often receive high pay offers, top programs are expensive, and there’s no guarantee that a job will result. So is an MBA worth it? That depends on your career goals.

Some employers will offer full or partial tuition reimbursements to employees who pursue an MBA. Requirements vary by employer, but some expect employees to continue working during school. Though rigorous, this means that MBA students may not necessarily lose out on a salary while getting their graduate degree.

Average student loan debt: $81,218

Average salary: $120,000

15. Occupational Therapist

Occupational therapists (OTs) need to obtain a master’s degree and satisfy licensing requirements, as well as supervised fieldwork. Like physical therapists, the salary progression for OTs depends on the type of work they pursue, and the type of work they pursue also affects the type of potential loan forgiveness that may work for their circumstances.

The American Occupational Therapy Association recognizes that many students graduate with student loan debt that can be tough to pay back on a median OT salary. The association actively lobbied for occupational therapists during the COVID-19 pandemic to make sure their interests were covered under the CARES Act.

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Average student loan debt: Varies

Median salary: $96,370

16. Registered Nurse

Nursing salaries — and the student loan debt that nurses carry — depend on education level. Nurses who have a Master of Science in nursing have the most student loan debt, while those who have a bachelor’s degree or associate degree have lower debt, but may have lower salaries as well. Scholarship opportunities for nurses can limit the necessity of student loans, and some nurses may qualify for forgiveness opportunities, including the Public Service Loan Forgiveness Program and the Nurse Corps Repayment Program, a federal program for nurses who work in high-need areas. Another option to consider is student loan refinancing for those who can qualify for a lower interest rate or more favorable loan terms. Just be aware that when you refinance, you will no longer have access to federal benefits such as forgiveness.

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Average student loan debt (with master’s degree): $69,890

Median RN salary (with bachelor’s degree): $86,070

The Takeaway

The price of college has soared, and a typical student borrows around $35,530 to pursue a four-year degree. That amount can be substantially higher for students who choose more lucrative degrees, such as those in medicine and law. Orthodontists, for example, owe an average of $570,000 in school loan debt, while lawyers owe around $130,000 in school loan debt.

There are options to help borrowers manage their debt, such as the Public Service Loan Forgiveness program, student loan repayment programs, and student loan refinancing.

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

FAQ

How much student loan debt is there in the U.S.?

Currently, there is more than $1.77 trillion in outstanding student loan debt, and more than 42.7 million Americans have federal student loan debt.

Which major has the largest amount of student debt, and which major has the least amount of student debt?

Doctor of Pharmacy, Pharmaceutical Sciences and Administration is the major with the largest median debt, at $310,330, according to the Education Data Initiative. An associate’s degree in Biological and Physical Sciences is the major with the smallest median debt, at $7,591.

Which age group holds the most student debt?

The most substantial amount of student debt is held by borrowers who are 35 to 49 years of age. As of late 2024, this group owed $634.8 billion dollars in student loan debt.

However, the age group that owes the most student loan debt per person is borrowers ages 50 to 61, who owe an average of $45,159. That’s followed closely by the 35 to 45 year-old group, who owe $43,479 per person.

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