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Prepaid college plans are an excellent option for families looking to lock in today’s tuition rates for future use, potentially saving thousands as college costs rise. These state-sponsored programs allow participants to prepay tuition at in-state public colleges, offering financial predictability and peace of mind.

However, the availability, terms, and benefits of prepaid plans vary widely by state. Understanding what each state offers is essential for making an informed decision and maximizing the benefits of these plans to support your child’s higher education goals.

Keep reading to learn more on prepaid college tuition plans, including what they are, pros and cons, and which states offer them.

What Are Prepaid College Tuition Plans?

If you have a child who plans on going to college, a prepaid college tuition plan can help set them up for success. A prepaid college tuition plan allows you to start paying for college now, long before the student actually attends. This locks in the current tuition rate, even as tuition costs go up.

You can think of it as a loan of sorts. You pay up front, and the state earns money off of those payments. When it comes time for your student to attend college, the state pays the tuition out of the funds you provided.

Of course, you need to be confident in your student’s plans for this to work. You will probably need to live in the same state as the college the student will attend since these plans tend to apply only to in-state tuition.

Pros and Cons of College Prepaid Plans

Locking in a lower tuition rate can be a tremendous financial benefit. With college costs constantly on the rise, a prepaid tuition plan offers the potential of a steep discount. And you might even enjoy some tax breaks if you choose this approach, such as a deduction based on your contribution to a prepaid plan, depending on where you live.

However, this sort of plan can be somewhat inflexible. You may be limited in the choices you have in terms of schools. While you can get a refund if your student chooses a different school than you all expected, you may end up feeling some pressure to stay the course when investing in a plan like this.

And you can’t use the money freely. There are restrictions to how you can use the funds in a prepaid college plan. For example, room and board probably aren’t covered. These plans generally focus specifically on tuition and fees.

Despite this, many choose prepaid college plans to lock in a rate. They also enjoy the high contribution limits and tax benefits. Here are the major pros and cons of these plans.

Prepaid College Plans vs 529 Program

Prepaid college plans and 529 savings plans are both designed to help families save for higher education, but they differ significantly.

Prepaid college plans allow families to lock in tuition rates at in-state public colleges by prepaying future costs, offering protection against rising tuition. However, they often have residency requirements and limited flexibility if the student attends an out-of-state or private institution.

529 savings plans, on the other hand, are investment accounts with tax-free growth when used for qualified education expenses. They provide greater flexibility, covering tuition, room, board, and more at any eligible institution, but are subject to market risk.

	Prepaid College Plan	529 Savings Plan
Time frame	You must start investing within a certain time period. Different states will have different rules about this.	You can generally invest whenever you like.
Flexibility	These plans are less flexible. You generally have to spend the money on tuition and fees specifically.	You have more flexibility in how you spend your money. You can use funds for tuition, books, room and board, and other expenses.
Risk	These plans are stable. However, they won’t earn much over time. If your student changes their mind and you withdraw the money, expect to break even. These plans aren’t risky, but they aren’t going to earn much, either.	This is an investment. It could earn far more than a prepaid plan, but it does involve risk.

Recommended: How to Start Saving for Your Child’s College Tuition

States With Prepaid College Plans

Only nine states still have prepaid college plan options, and each state will offer something a little bit different. You can compare all of the options below to see if any of these state plans work for you.

State	Plan	Features
Florida	Florida 529 Prepaid Plan	The child must be a Florida resident. This plan covers tuition and fees, and you can opt into a one-year dorm plan, as well. Florida lets you use this plan nationwide, and it’s guaranteed by the state.
Massachusetts	MEFA U.Plan	You can contribute the full cost of tuition and fees to this plan, which is invested in bonds. You can transfer the funds or cash out and receive your investment plus interest if your plans change.
Michigan	MPACT	Michigan offers a discounted, age-based pricing structure. Plus, you can transfer the funds to other family members. The funds work at in-state, out-of-state, and even trade schools.
Mississippi	Florida 529 Prepaid Plan	You pay a lower monthly rate for younger children when you enroll in this plan. You have to use the funds on tuition and fees, but anyone can contribute to the plan.
Nevada	Nevada Prepaid Tuition Program	There are some eligible out of state and private institutions that qualify under this plan. The student must use the funds within six years of graduating high school.
Pennsylvania	PA 529 Guaranteed Savings Plan	This plan only applies to state universities. However, you can also use it for up to $10,000 at elementary and secondary public, private, or religious schools. You can alter your contribution levels at any time by changing your tuition level.
Texas	Texas Tuition Promise Fund	Save for public colleges and universities in Texas with this plan, excluding medical and dental institutions. You must enroll between September and February.
Virginia	Tuition Track Portfolio	Allows Virginia residents to prepay future college tuition by purchasing units that correspond to the current average tuition rates of Virginia public colleges and universities, thereby protecting against tuition inflation.
Washington	Guaranteed Education Tuition	You can use your funds on schools nationwide. You can even use the funds for room and board, books, computers, and other expenses. As long as you use the funds for higher education, they won’t be subject to tax.

Are Prepaid College Plans Tax Deductible?

Prepaid college plans are not directly tax-deductible at the federal level. However, some states offer tax deductions or credits for contributions to their state-sponsored prepaid plans. These tax benefits vary by state, so it’s essential to check local regulations to understand the specific advantages available in your state of residence.

Are Prepaid College Plans Worth It?

That depends on where you live and what your student’s goals are. If the future is pretty certain, or you live in a state with a very flexible plan, a prepaid college plan can be a safe, stable way to save up money for college.

Because of the limitations and lack of flexibility, though, it may not be right for everyone. If, for example, you want to be more aggressive about your college planning, a 529 savings plan might suit your goals better. Plus, you can spend that money on things beyond just tuition and fees.

Recommended: Parent PLUS Loans vs Private Parent Student Loans for College

Alternative Methods for Prepaid College Plans

Beyond a prepaid tuition plan, you can also try a college savings plan to build up cash for college. This allows you to save up money and spend it on qualified education expenses. It doesn’t lock in a tuition rate, but because it’s a more aggressive type of savings plan, you could end up saving up more money in the long run.

Of course, if your child is headed to college in the next few years, you may not have time to save much money. Parent PLUS loans can help. When an undergraduate’s financial aid doesn’t meet the cost of attendance at a college or career school, parents may take out a Direct PLUS Loan in their name to bridge the gap.

The Takeaway

The thought of large student debt scares off many who would otherwise attend a college or university. But with some strategic and long-term planning, college can fit in the budget. You can mix and match approaches to find what works for you. For example, you could combine a prepaid tuition plan with federal and private student loans to pay for college. No matter what you ultimately choose, it will help to start planning well in advance.

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

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

FAQ

What is a prepaid college tuition plan?

A prepaid college tuition plan allows families to pay for future college tuition at today’s rates, protecting them from future tuition increases. These plans are often state-sponsored and typically cover tuition and mandatory fees at in-state public colleges or universities. Families purchase credits or units that can be used when the student attends college.

What are the advantages of prepaid tuition plans?

The primary advantage is locking in current tuition rates, saving money as costs rise. Prepaid plans also offer financial predictability and may provide tax advantages. They reduce reliance on student loans, making higher education more affordable.

What are the limitations of prepaid tuition plans?

Prepaid plans often restrict usage to in-state public colleges, and transferring to private or out-of-state schools may result in lower payout values. Not all states offer these plans, and withdrawing funds for non-educational purposes may incur penalties or fees. Understanding plan terms is crucial before enrolling.

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Photo credit: iStock/dangrytsku

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.

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

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOISL-Q424-044

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When your high schooler starts thinking about college, one of the best things you can do is to have The College Talk: a frank discussion about education, career, and life goals. The College Money Talk — the dollars and cents of the process — should be a part of the conversation. This will help you and your child stay on the same page during the college search.

We’ve assembled a list of topics you may want to include, such as how much you, as parents, can contribute toward college. We’ll also guide you through how to structure the conversation, explain financial aid, and more.

Figure Out How Much You Can Afford

First and foremost, parents should look at their finances as a whole: retirement savings, investment accounts, monthly budget, upcoming large expenses, etc. Also think about the current economy, especially inflation and the bear market.

“Parents need to keep in mind their own financial security first and foremost,” says Brian Walsh, senior manager of financial planning at SoFi. “We don’t want parents to take on too much debt or put themselves in a sticky situation because they helped their kids too much.”

Walsh adds that it’s essential for parents to figure out on their own how much they can contribute before talking to their kids. One way to do that is to see how their retirement savings stack up against suggested amounts:

Age	Amount Saved
30	1x annual salary
40	3x annual
50	6x annual
60	10x annual

Recommended: Inflation and Your Retirement Savings

Consider the Timing

You may wonder when, and how often, you should have the college and money talk. Walsh says you can relax during the early high school years.

“Things will heat up junior and senior year,” Walsh says. “That’s when you’re looking at schools the kids are interested in, and determining how realistic it is they’ll get into those schools and secure financial aid. Senior year is when everything comes together — making decisions about where to go and ultimately coming up with a plan for how to pay for college.”

Consider blocking out time to have the conversation freshman year in high school, then intermittently throughout junior and senior year. Use your best judgment in broaching the conversation, and choose a time when your kids seem receptive.

Structure the Conversation

Walsh suggests beginning with a discussion of the paths available to your child after college. This may involve different professions and careers and how to attain them, even jobs that don’t require a college education. Your child may also have no idea about the potential earning power of various professions — a great segue into the cost of college.

According to Walsh, it’s best to have this talk in an environment where everyone feels comfortable. That may be a favorite coffee shop or the living room couch. If you’re not sure, ask your student what they prefer.

If you want to make it a more collaborative process, you can give your child assignments. For example, you may work with your child to search for colleges, look up financial concepts, debate the trade-offs of a big-name school vs. a lesser-known institution, and more.

Your student may also want to research the graduation rates of colleges. Walsh suggests having students identify the schools where students tend to graduate in four years or close to that.

When you start the money conversation, consider bringing up the average “net cost.” That’s a college’s cost of attendance (which factors in tuition, fees, books and supplies, and living expenses) minus any grants and scholarships. According to the College Board, the average tuition and fees for 2024-25 of a private college was $43,350. The average tuition and fees for public in-state college was $11,610.

Explain About Financial Aid

Financial aid can come from various sources: colleges and universities, the government, and private lenders. Financial aid can include grants, scholarships, work-study, and loans:

•   Grant: Grants are a type of need-based aid that you don’t have to repay.

•   Scholarship: A financial award based on academics, athletics, other achievements, or diversity and inclusion. It may or may not be based on financial need, and doesn’t have to be repaid.

•   Work-study: An on-campus job that helps cover the cost of school. You must file the Free Application for Federal Student Aid (FAFSA) to qualify for work-study.

•   Federal Student Loan: A loan is money you borrow to pay for college or career school. You must pay back loans with interest. Federal student loans come from the federal government by filing the FAFSA.

•   Private Student Loan: These loans come from a private bank or online lender. Private student loans do not offer the same federal protections that come with federal student loans, such as loan forgiveness and income-driven repayment plans. Consider these factors before you decide to pursue private student loans.

For detailed information on all available financial aid options, reach out to the guidance office or college office at your child’s high school. Online resources, like StudentAid.gov and SoFi’s FAFSA Guide, are also helpful.

“When you’re down to the final couple of colleges, work with the admissions and financial aid offices at those schools,” Walsh says. “They will be the best resources during senior year and going forward.”

Recommended: Scholarship Search Tool

Talk About Debt (and Debt Repayment)

Many high school students don’t have experience with loans or understand them at all.

“One of the risks of student loan debt is that it can feel like Monopoly money — it’s not real,” Walsh says. In your discussion, try to make student debt more concrete for your child.

Walsh recommends going through a sample budget based on the average starting salary of a career related to your child’s preferred major. (Also check out our guide to ROI by bachelor’s degree.) Calculate the amount your child may earn each month. Estimate what they may pay for rent, utilities, groceries, transportation, student loans, and more. How much will they have left over after those expenses?

Although it may feel awkward, it’s worth talking to your kids about student loans to help them understand how to handle them.

Discuss Parent / Child Contributions

“Be transparent with the student so they know what to expect when they look at different schools,” Walsh says. He urges parents not to overextend themselves or feel guilty if they can’t contribute as much as they’d like. About 36% of parents paid the entire bill for their kids to go to college in 2024, down from 43% in 2016.

Look for Ways to Cut Costs

During your college money talk, you may want to explore strategies for cutting expenses. Walk through a sample college budget, and look for ways to save on living arrangements, transportation and travel, Greek life, computers, books and supplies, dining out, and Wi-Fi. Doing all this ahead of time allows you to pick and choose what’s important and plan how parents and kids will spend their money.

You might also suggest that your child begin at a two-year school to save money, then transfer to a four-year institution.

Recommended: A Complete Guide to Private Student Loans

The Takeaway

Paying for college often involves an emotional tug-of-war between a student and their parents. Walsh urges families to use The College Money Talk as a teaching moment. “It’s an opportunity for your child to learn valuable lessons on how debt and savings work,” he says, “and that can help them make better financial decisions in the future.”

Parents should examine their finances and agree on their family contribution before discussing it with their student. Because high schoolers have little experience with money, parents can make it more concrete by walking through sample budgets: one for their expenses while in college, and another that projects their income and student loan debt after graduation.

Ways to pay for college include cash savings, scholarships, grants, federal work-study, and federal and private student loans.

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

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

FAQ

How do you tell your kid you can’t afford their dream college?

Be honest and empathetic when explaining your financial limitations. Emphasize your support for their education and explore alternative options together, such as scholarships, grants, more affordable colleges, or transferring after two years at a community college. Reassure them that success depends on their effort, not the school’s prestige.

Do most parents pay for their kids’ college?

About 36% of parents paid for their child’s full college costs in 2024. However, that doesn’t mean you must follow suit, particularly if it will put a strain on your finances. Consider all aspects of your financial situation before deciding how much you can put toward the cost of college.

How do middle class families pay for college?

Paying for college involves planning and research, and that’s the case for families at any income level. Most families cover the cost of attendance through a combination of personal savings, need-based grants, scholarships, work-study, and student loans. This involves filing the FAFSA to see the amount of need-based financial aid your child may receive. You can also arrange to set up a payment plan, in which you make payments over the course of 10 or 11 months during each school year.

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Photo credit: iStock/SDI Productions

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).

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

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

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

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

SOISL-Q424-045

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As a student, it can be easy to focus solely on the college application process and completely forget about financial aid. You spend so much time studying for the SATs (or ACTs) and tweaking your college essay so it perfectly represents you, that after you’ve been accepted and the reality of tuition payments set in, you might feel momentary panic.

It’s no secret that college tuition is expensive. Students and parents save for years to pay for higher education, but sometimes that’s just not enough. According to a Sallie Mae® study, parent income and savings covered 37% of college costs in the 2023-24 school year, while student income and savings covered 11% of the costs.

Many of us rely on financial aid to bridge the payment gap. Financial aid may come from multiple sources, including scholarships, grants, work-study, federal student loans, and private student loans. Keep reading for a look at financial aid secrets you should know.

Types of Financial Aid

Scholarships and grants are extremely useful forms of financial aid, since students are not typically required to pay back the money they receive. An online survey of students and parents found 27% of college families in 2023-24 relied on scholarships and grants to cover a portion of college expenses, according to Sallie Mae’s study.

Scholarships, grants, and savings often aren’t enough to cover the cost of attending college. Sallie Mae says 23% of college families borrowed money to help pay for college in 2023-24. Some families used home equity loans and credit cards, but federal student loans represented the most frequently used source of borrowed money followed by private student loans.

To top it all off, the financial aid application process can be confusing. Between federal aid and other scholarships, it can be difficult to keep everything straight.

Most often, the first step in applying for financial aid is filling out the Free Application for Federal Student Aid (FAFSA®). You can begin filling out the FAFSA on October 1 for the following academic year. The federal FAFSA deadline for the 2024–25 academic year is June 30, 2025, but you’ll likely want to file well before the school year starts – colleges and states may have their own FAFSA deadlines.

Taking the effort to apply for financial aid early can have a positive impact on your tuition bill. Below we highlight seven financial aid secrets you should know.

Financial Aid Secrets You Should Know

1. Decision Day vs Summer Melt

May 1 is usually decision day, the deadline when prospective college students must decide which college they plan to attend in the fall. But even after this deadline, students can change their minds. This phenomenon is known to industry professionals as “summer melt,” and sometimes it’s triggered by FAFSA verification setbacks.

Students who receive insufficient need-based financial aid, for example, might be compelled to reconsider their college enrollment decisions. Summer melt can give you an opportunity to select a more affordable school for you if you’ve encountered a FAFSA verification roadblock.

Summer melt is a common problem that causes schools to lose students during the summer. Because of this, schools may have a bit of secret wiggle room in their acceptance policy to admit new students over the summer for the fall semester.

Recommended: Should You Choose a College Based on Price?

2. Writing a Letter

You might be able to take advantage of summer melt with this secret: write a letter. After you get your financial aid offer, you could write a letter to your school’s financial aid office to open the lines of communication.

Let them know how excited you are to attend school in the fall. That’s where you could include a thoughtfully worded inquiry for any additional aid that you might qualify for as a result of summer melt.

When students decide to switch schools or not attend at the last minute, it means that they also won’t be using their financial aid award — which could now be available to other students.

3. Calling the Financial Aid Office

Another way to potentially take advantage of summer melt is to call your school’s financial aid office. Instead of calling immediately after you receive your financial aid award, think about calling in June or July. This allows financial aid offices time to account for students who have declined their financial aid packages.

An appropriately timed call to the financial aid office at your school could mean additional financial aid is allocated to your package — no guarantees, of course, but it never hurts to ask.

4. Submitting Paperwork and Applications On Time

Every school’s financial aid office has to follow a budget. Some financial aid is offered on a first-come, first-served basis, so it helps to submit forms, like the FAFSA, and other applications, on time or even ahead of schedule.

You may be out of luck if you apply for assistance after your university’s financial aid office has met their budget for the year. Some states have early winter deadlines for awarding scholarships and grants. Tennessee residents, for example, must complete their FAFSA by April 15 to be considered for a state-funded Tennessee Student Assistance Award grant.

5. Being Prepared

Have the basics ready to go before you sit down to fill out the FAFSA. If you have all of the information you need before you begin filling out the FAFSA, you’ll likely have an easier time filling out the information.

Usually, each parent and the student will need to create a username and password, which is called the Federal Student Aid ID (FSA ID). You’ll also need:

•   Social Security numbers (for you and your parents)

•   Bank statements and records of untaxed income (possibly)

•   You and your parents’ tax returns (aid awards are based on income from two years ago)

•   Any W2 forms

•   Net worth calculations of your investments (for students and parents)

6. Being Wary of Services that Charge You for Help

If you need assistance filling out the FAFSA, avoid any services that charge you. The first F of FAFSA stands for “Free,” so there is no need to pay for a service to fill the form out for you.

If you need assistance filling out the FAFSA, there are plentiful online resources through the U.S. Department of Education .

7. Filing the FAFSA Every Year

For every year you are a student and want to receive federal aid, you’ll have to file the FAFSA. Get in the habit of filing it every fall, so you’re closer to the top of the financial aid pile.

Navigating financial aid can feel overwhelming, but understanding key strategies can significantly impact your college funding.

The Takeaway

Scholarships and grants can be super helpful additions to a federal financial aid package. The money can reduce your tuition bill and doesn’t usually need to be repaid. Work-study can also be beneficial in helping college students make ends meet, as can federal and private student loans.

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

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

FAQ

What is the most common FAFSA mistake?

The most common FAFSA mistake is providing incorrect or incomplete information, such as inaccurate income details or failing to list all schools you’re considering. Errors can delay processing or reduce financial aid eligibility, so double-check entries and ensure all required documents, like tax returns, are accurate and up to date.

How can I maximize my financial aid eligibility?

To maximize financial aid eligibility, submit the FAFSA early, accurately report income, and reduce assets in the student’s name. Explore scholarships and grants, appeal for additional aid if circumstances change, and ensure all financial aid deadlines are met. Focus on schools with robust need-based aid programs for added support.

How do I get a bigger financial aid package?

To secure a larger financial aid package, submit the FAFSA early and accurately, apply for scholarships and grants, and appeal for more aid if your financial situation changes. Choose schools with strong aid programs, minimize student-owned assets, and maintain good academic performance to qualify for merit-based assistance.

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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).

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

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

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

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

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.

SOISL-Q424-063

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NOTE: This quiz is in no way recommending specific colleges or universities (SoFi doesn’t endorse nor are we affiliated with any college or university), but rather the type of college or university that might work with your personality and goals. Above all, this is meant to be a fun tool and a very, very preliminary source of information to supplement your decision-making.

Selecting a college is a personal decision. Broadly speaking, there are three major types of higher education institutions — public universities, private colleges, and community colleges and trade schools. Each of these categories offers students different academic opportunities, and has their own sets of pros and cons.

Continue reading for information that can help you determine which college option might make the most sense for your academic goals and priorities, including a college quiz to help you decide.

Brainstorming a Broad List

According to the most recent information available from the National Center for Education Statistics, as of 2021-22 there were 3,542 degree-granting postsecondary institutions, ranging anywhere from large public universities to more intimate liberal arts colleges, with a wide range of choices in between.

As a first step, consider reflecting on what is most important to you for your college experience. Some factors to consider to help you decide might include:

•   Four-year college or a two-year/vocational option

•   Public school or a private college

•   Nonprofit college or a for-profit college

•   Large university or liberal arts college

•   Bustling city or a quiet rural environment

•   Stay in-state or venture further away from home

Using your academic goals and personal preferences, create a list of options to explore further. There are a variety of resources available to students, such as BigFuture from The College Board or EducationCorner.com. Consider consulting with your guidance counselor for recommendations and suggestions that can help you build your list of potential schools.

If you have friends or family who have already gone through the college application process, ask them about their experience and see what advice they have to offer. This could be insightful as you build your personalized list.

In addition to academic factors like class size and majors, and the location of the school, don’t forget to consider how extracurriculars fit in. Are you interested in playing sports? Do you want to join a college newspaper or TV station? Each of these can impact your college experience, so it’s important to think about what you want.

For additional help, we’ve created a “What College Should I Go To?” quiz that allows you to make a series of high-level choices about what type of college might be best for you:

Prioritizing Your Options

After making your broad list of potential college options, you’ll likely need to prioritize. As you finalize how many colleges you’re going to apply to, consider including choices from each of these three categories:

•   Match (or target) schools: These are schools where your academic qualifications meet what the school has been accepting as an average freshman, or perhaps slightly exceed them.

•   Reach schools: Ones where your academic qualifications are below what the school typically requires for average freshmen; perhaps your leadership skills or extracurriculars will make up the difference and you’ll get accepted.

•   Safety schools: Where you can be fairly confident of acceptance.

Continue reading for more information on the different academic options available to students — public universities, private colleges, and community colleges and trade schools.

Public Universities

Public colleges and universities, in general, have been funded by state governments with the goal being to provide people who live there with a college education. This began as early as the 1800s and, even today, state governments pay a significant amount of the operational costs of public universities. They also appoint boards for oversight purposes.

Because public funds are used to subsidize education at a public university, up-front tuition prices are typically lower than at private colleges. Generally, students who live in-state will receive a lower tuition rate than those who are attending the school from out-of-state.

Public universities tend to be bigger in size and scope, offering more degrees than a private college. Class sizes are often larger in public universities than at private colleges. But, larger institutions may offer students access to state-of-the art facilities, libraries, and research. Top-tier faculty and professors are attached to the research potential at large universities, and therefore, students have the opportunity to learn from some of the best in their field.

While public colleges and universities can offer affordable tuition combined with exceptional facilities and well-respected professors and research opportunities, the large campus and class sizes could be a considerable con for students who thrive on more personalized instruction.

Recommended: What Is the Average Cost of College Tuition?

Private Colleges

Unlike public universities, which are funded at least in-part by taxes and state funding, private colleges are independently run institutions of higher education. Generally, private colleges are smaller than public colleges and may offer smaller class sizes and more personalized instruction.

Because the schools are smaller, private colleges may offer fewer choices in majors than their larger public counterparts. That said, the smaller campus and student body can help foster a close-knit community. Like public universities, private colleges also focus on providing students with highly qualified professors and instruction.

Tuition costs at private colleges can be higher than at a public university, however, private colleges may offer more merit aid to students than a public school. It’s usually worth comparing and contrasting financial aid packages to determine which school will be the most affordable for you.

Recommended: Private vs. Public College: The Pros & Cons of Both

Community Colleges/Technical Schools

Community colleges generally offer associate’s degrees, which typically take about two years to achieve. After completing their associate’s degree, students can transfer to a four-year college or university to complete their bachelor’s.

Technical schools generally offer a specific certification to students who complete the course of study. Most often, technical schools focus on courses that allow students to build an occupation skill set, so they’re able to start work in their chosen field immediately after completing technical school.

Both technical schools and community colleges can be more affordable than public or private colleges. In addition to the cost of tuition being more affordable, students in these programs may be able to live at home which can help cut down on living expenses.

Community college can be a good option for students who want to explore different fields or cannot afford to go to a four-year college immediately after high school. If you plan to transfer to a four-year college after completing your associates at a community college, research the minimum transfer requirements at the universities you want to apply to. Consider speaking with an admissions or guidance counselor with any questions.

Financial Considerations

As you decide which colleges to apply for, take into consideration how you can finance your education. Often, students will rely on a mix of federal student loans, scholarships, grants, or private student loans to pay for their education. Scholarships and grants are gift aid that generally does not need to be repaid.

Both federal and private student loans need to be repaid. Federal student loans are part of federal financial aid and to apply, students will need to fill out the Free Application for Federal Student Aid (FAFSA®) each year. Private student loans can be a tool to help students pay for college after they’ve exhausted their other options. That’s because private student loans aren’t required to offer the same benefits and borrower protections — things like income-driven repayment plans or deferment options — as federal student loans.

If you decide to apply for private student loans, get a few quotes and carefully consider the loan options and terms available to you. In some cases, you may need to add a cosigner to the application in order to get approved, or to potentially qualify for more competitive interest rates.

Recommended: How to Pay for College

The Takeaway

Students can choose between public universities, private colleges, or community colleges and technical schools to further their education. The right choice for you will depend on your academic goals, current financial situation, and personality and preferences for learning environment.

Public universities can be more affordable and offer research opportunities, while private colleges generally have smaller class sizes and more personalized instruction. Community colleges are a cost-effective way for students to explore their interests and fulfill their prerequisites before transferring to a four-year university. Technical schools can make sense for students who are passionate about a particular trade or occupation that doesn’t require a four-year degree.

When it comes to paying for college, your options include cash savings, grants, scholarships, and federal and private student loans.

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

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

FAQ

What factors should I consider when choosing a college?

When selecting a college, consider factors such as academic programs, campus location, tuition costs, financial aid options, class sizes, and extracurricular opportunities. Research the college’s reputation, graduation rates, and job placement statistics. Visiting campuses and speaking with current students can also help you make an informed decision.

How important is a college’s ranking when deciding where to attend?

College rankings can provide insight into academic quality and reputation, but they shouldn’t be the sole deciding factor. Consider how well the school aligns with your academic and personal goals. A college’s fit, affordability, and resources for your field of study may matter more than its rank.

Should I choose a college based on its proximity to home?

Proximity to home depends on personal preference and financial considerations. Staying close to home can save on living expenses and provide support from family, while attending college farther away may offer new experiences and independence. Evaluate what aligns best with your goals and comfort level.

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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.

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

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

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Becoming an electrician can lead to a fulfilling, rewarding, and high-paying career. However, electrician school costs up to $20,000, depending on the program.

Paying tuition costs up front may not be possible. To help manage this hefty electrician trade school price tag, there are a few different program and financing options to consider.

How Much Does Electrician School Typically Cost?

A profession as an electrician is among the list of high-paying, no-degree jobs that can be a lucrative career. If you decide to enroll in electrician trade school to help you along your path to becoming an electrician, it can cost anywhere from $1,000 to $20,000 to complete the program. This might depend on the program you enroll in and the school you attend.

How Long Does Electrician School Take?

Electrician school typically takes four years to complete through an apprenticeship program, which combines paid on-the-job training with classroom instruction. Apprenticeships, offered by unions or trade organizations, are the most common path to becoming a licensed electrician.

Pre-apprenticeship programs or certificate courses at trade schools may take 6-12 months, but they don’t lead directly to licensure. The time frame depends on the program and state requirements, but thorough training is essential for success in this field.

What Are Classes Like at Electrician School?

Although each program is different, generally, electrical school guides you through relevant mathematics, standardized electrical code, electrical theory, and fundamental techniques regarding wiring, safety, conduit bending, and other skills.

In addition to in-class knowledge, electrician school often includes hands-on practical application.

Can You Make Money As an Electrician While In School?

It might be challenging to secure paid electrician work if you’re in the middle of electrician school. However, if you’ve been accepted into an electrical apprenticeship program, and are attending electrical school on the side, the apprenticeship often involves paid, hands-on learning opportunities and possibly health benefits.

Pros and Cons of Electrician School

If you’re unsure whether enrolling in electrician school is worth it, weigh the advantages and disadvantages of going this route.

Financing Electrician School

Although you can choose to pay entirely out of pocket for electrician trade school costs, it’s not always feasible. Fortunately, there are a handful of ways to get your trade education financed — some of which must be repaid while others don’t need to be paid back.

Financial Aid

Future electricians attending an eligible trade school may be able to qualify for federal student aid including grants, scholarships, work-study, or federal student loans. Not all trade or vocational schools qualify for federal aid.

To find out if the program you are considering is eligible, take a look at the Federal School Code Search administered by the U.S. Department of Education. Another option is to check in with the financial aid office at the school.

To apply for federal financial aid, students will need to fill out the Free Application for Federal Student Aid (FAFSA®).

Grants

Federal grants, like the Pell Grant, are available to students who are pursuing a bachelor’s degree and demonstrate financial need. Pell Grants typically don’t need to be paid back, and offer awards up to $7,395 for the 2024-25 academic year.

Recommended: FAFSA vs. Pell Grants

Scholarships

Scholarships are another type of gift aid that doesn’t need to be repaid. They can be found through your state, local government, school, and nonprofit institutions. For example, the American Public Power Association offers lineworker and technical education scholarship awards of $2,000 to chosen recipients.

Employer Sponsoring

If you’re already employed and want to enroll in an electrician school to enhance your job-related skills, ask your employer if it’s willing to sponsor your electrician school cost. Some companies offer this benefit as long as you successfully complete the program and agree to apply your training within the company for a certain number of years.

Federal Student Loans

Through the FAFSA, you can see if you’re eligible for subsidized or unsubsidized student loans. This type of aid must be paid back, plus interest at a fixed rate.

Private Student Loans

If the above financing sources aren’t an option and you need funds, private student loans may help pay for electrician trade school costs. Private student loans are offered by banks, credit unions, trade schools, and other financial institutions. Be aware that they typically don’t offer the same level of protections as federal student loans, such as extended forbearance or deferment options if you face financial hardship.

Recommended: Guide to Private Student Loans

How to Select an Electrician Training Program

Deciding how you want to pursue an electrician training program highly depends on the amount of time you’re willing to commit, and your preferred learning style. Below is an overview of the program options available.

Apprenticeship

Learning the electrical trade is commonly done through apprenticeship. This option is typically a four-year commitment with a mix of classroom and field training. It lets you learn the hands-on skills and knowledge needed to become an electrician while earning a wage.

Certificate

Certification can take six months to two years to complete. You can enroll in an electrician certification program through a local community college or trade school. In some states, like California, an electrical certification might be required to perform work for contractors with a certain license class.

Associate Degree

An associate’s degree can offer more comprehensive education, though it’s not typically a requirement to be an electrician. Associate degrees might be offered through a trade school or community college, and can help boost applications for apprenticeship programs.

Bachelor’s Degree

If you’d like to pursue a bachelor’s degree as an electrician in a highly academic setting, a four-year program might make sense for you. Students typically enroll in programs, like electrical technology, and learn about regulation, electrical theory, and more.

This option provides the greatest flexibility in terms of transferable courses for related industries, like electrical and/or systems engineering.

Military Training

Another way to obtain electrical school training is through the U.S. Armed Forces. By enlisting as a service member, you’ll first receive basic military training, and afterward, can receive electrical job training if you meet program requirements.

For example, the U.S. Army offers interior electrician job training for soldiers who complete 10 weeks of basic training, and seven weeks of Advanced Individual Training, and earn an ASVAB score of 93 in Electronics.

Electrician Job and Income Prospects

According to the U.S. Bureau of Labor Statistics, the job outlook for electricians from 2023-2033 is expected to grow at a much faster than average pace at 11% growth.

The BLS also states that the average median pay of electricians is $61,590 per year. Salaries, however, depend on a variety of factors, such as skill certifications, years of experience, and location.

Alternatives to Becoming an Electrician

If, after learning how much electrician trade school costs, you feel it’s not the right profession for you, pursuing another trade or performing a hands-on field job might be of interest. Some alternative jobs include being a:

•   Construction laborer

•   Automotive service technician

•   Equipment operator

•   HVAC installer

•   Home inspector

•   Project manager

Recommended: 22 High-Paying Trade Vocational Jobs in 2024

The Takeaway

Electrician school costs can range widely, from $1,000 to $20,000, depending on factors like the program, location, and more. Paying for electrician school costs can be an incredible investment for your career advancement and to enhance your technical knowledge, but it’s also a financial commitment.

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

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

FAQ

How long does electrician school take?

Electrician school typically takes four years to complete, including classroom instruction and hands-on apprenticeship training. Apprenticeships, which combine paid on-the-job training with coursework, are the most common path. Some programs, such as pre-apprenticeship or certificate courses, may take less time but don’t provide full licensure qualifications.

How much do the highest paid electricians make?

Electricians command an average base salary of $61,590 per year, according to the Bureau of Labor Statistics. Master electricians can earn over $100,000 per year. Where you’re located and your years of experience impacts your earning potential.

What are the highest paid trade jobs in the U.S.?

A profession as an electrician makes up the top five highest-paid trade jobs in the U.S., along with licensed practical nurses, HVAC technicians, home inspectors, and plumbers.

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Photo credit: iStock/Davizro

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.

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

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

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