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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?

Community college electrician school programs prepare students for apprenticeship and a future career as an electrician. Typically, it takes one to two years to complete electrician trade school.

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.

Pros	Cons
Might be a fast way to get in the door toward an electrical career	State might still require an apprenticeship program
Sets you apart when applying for apprenticeship	Potentially high-cost and might incur student debt
Might count toward required apprenticeship hours	Not an “earn as you learn” option

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 $6,895 for the 2022-23 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. This option lets you learn the hands-on skills and knowledge needed to become an electrician while earning a wage.

Certificate

Certification can take about 1 to 2 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 associates 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 2021-2031 is expected to grow at an average pace at 7% growth.

PayScale.com estimates that an electrician journeyman earns an average base salary of $61,886 per year, while a master electrician earns a higher salary at $73,334 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

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 your financing options, and find that you need additional aid, a private student loan from SoFi might help (though SoFi’s student loans aren’t available for those attending trade school or community college). Undergraduate student loans may be available for those pursuing a four-year electrician degree.

Qualifying borrowers can secure competitive private student loan rates and SoFi loans have zero fees, and up to the total cost of your school’s certified cost of attendance. Plus, it only takes three minutes to check your rate online.

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?

An electrician school program can take about four years to complete for an apprentice to acquire the training necessary to become a state-licensed Journeyman electrician who’s able to work unsupervised. However, this time frame varies, depending on the training path you decide to take and the licensing requirements of your state.

How much do the highest paid electricians make?

Master electricians are the highest level in the field and command an average base salary of $82,000 per year, according to PayScale data. 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 Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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

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.

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

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When you’re looking for funds to pay for your college education, you’re likely to go after federal funds and all of their benefits first — and, if that isn’t enough, then you’ll seek private loan funding. But, what is a signature student loan, exactly? Does it make sense to take out this type of funding? This post will share insights into a student signature loan.

What Are Student Signature Loans?

Known as a “sig student loan” for short, it’s a type of loan that people use to pay expenses for college. They can also be known as “good faith loans” because they’re granted to a borrower on the basis of a signature only with no collateral. The borrower takes on a certain amount of private (non-federal government) debt in the form of a loan at a predetermined interest rate, agreeing to pay it back in a series of installments, and then uses the funds to pay expenses.

What Type of Loan is a Signature Student Loan?

As you explore options, you’ll come across different types of student loans. In general, there are two broad types: federal and private student loans. Federal loans require the filling out of a FAFSA to see if a student qualifies for any type of aid from the federal government; some colleges and universities require a FAFSA even for scholarships and grants. A student signature loan, however, is a form of private funding, one where collateral is not needed, making it an unsecured private loan for college expenses.

Common Uses of a Signature Student Loan

Common uses of a signature student loan include for tuition/attendance, books, and housing. Here’s more about each.

Tuition/Attendance

Tuition costs can vary but a typical student could pay $10,000 a year for in-state tuition at a public four year institution and up to $40,000 to $50,000 in tuition at a private university each year. So, a student may decide to use a sig student loan to cover costs of tuition/attendance that aren’t covered by grants, scholarships, and federal student loans.

Books

The average college student spends between $600 and $1,500 each year to pay for their books and supplies. One single hardback textbook can now cost as much as $400 although the average is between $80 and $150. So, just about 30% of students use some form of loan funding to pay for their college books.

Housing

Although some students continue to live at home during college, many pay for room and board. At a public, four year institution, this could cost $9,000 to $13,000 a year. At a private, non-profit institution, it could cost a similar amount, depending on whether the student lives on or off campus.

Should You Get a Signature Student Loan?

It depends on your unique situation because signature student loans come with pros and cons that we’ll explore soon in this post. As general guidance, students who don’t receive enough funding through grants, scholarships, and federal student loans often look towards private funding to make up the difference. Private loans, sometimes called signature student loans, are offered by banks, credit unions, and online lenders.

Pros and Cons of Signature Student Loans

Pros of Signature Student Loans

Pros of signature student loans include the following:

•   Extra Source of Funds

•   Variety of Repayment Terms

•   Flexibility of Usage

•   Here’s more about each

Extra Source of Funds

Private student loans, also called a student signature loan, can provide a source of funding for college after grants, scholarships, and federal options have been exhausted. Federal financial aid can include grants and scholarships typically being awarded without repayment requirements. Federal loans are also considered financial aid. Students who demonstrate financial need may qualify for a subsidized loan, meaning that the government covers the interest while the student attends school. Student signature loans can help fill in funding gaps.

Variety of Repayment Terms

With a private student loan, funds are obtained from a private lender. Some offer better rates and terms than others with some of them deferring payments while the student is attending college classes. Compare rates and terms to choose which route is best for you.

Flexibility of Usage

In general, a private loan can offer flexibility with the funds used; for example, this funding can be used as one of the undergraduate student loan options or one of the graduate student loan options: for tuition, books and supplies, and/or housing expenses.

Cons of Signature Student Loans

Unlike a federal student loan, private lenders of student signature loans don’t rely upon information found in a FAFSA. Instead, a student interested in receiving private funding would fill out an application with the lender of interest. In other words, the student must qualify for the loan.

Qualifying for a Sig Student Loan

Loan terms can vary by lending institution. This includes the interest rates offered, borrowing limits allowed, and the length of the loan.Some require payments while the student is in school while others will defer payments until the student is out of school. Choose parameters that fit your needs with the understanding that you’ll need to qualify for the loan program.

Credit Score

The private lender may require you to have a certain credit score to obtain the loan or to get the best rates and terms. The three main credit bureaus that issue scores are Equifax, Experian, and TransUnion. A private lender will likely have a certain credit bureau that they use to get an applicant’s credit scores, and yours will need to fit within their lending guidelines to get loan approval.

Income

The lender will also want to see proof of a steady income, one that’s sufficient to pay back the loan. If you don’t have enough on your own, perhaps a parent would cosign the loan for you, reassuring the private lender that the loan will be appropriately paid back.

Other Ways to Pay for College

Ways to pay for college include:

•   Financial aid

•   Federal loans for students

•   Federal PLUS loans for parents

•   Work study jobs

•   Part time jobs

•   Private student loans

•   Here’s more about each

Financial Aid

In general, student financial aid can be a combination of grants and scholarships, federal student loans, private student loans, and funds from jobs (work study or part time jobs).

Federal Loans for Students

Federal Direct loans, also known as Stafford loans, can be either subsidized or unsubsidized. With the first, the government covers the interest while the student is in school; with the latter, the interest accrues while the student is in school. In either case, finding out what you qualify for in federal funding can be a logical first step.

Federal PLUS Loans for Parents

Parents can take out a Parent PLUS loan for an undergraduate with fixed interest rates and flexible repayment methods. These loans do require a credit check and can also be taken out by graduate/professional students. The maximum amount that can be borrowed is the full cost of tuition minus other financial assistance the student receives.

Work-Study Jobs

There is a federal work-study program that allows students with financial need to earn income to pay their education-related expenses. Ideally, the work will be connected to community service and/or the student’s academic study courses. This program is managed by the colleges themselves, so check with yours to see if they participate and if you qualify.

Part Time Jobs

If you don’t qualify for work study, you can still seek part time employment in the general location of your university, perhaps at a restaurant or coffee shop or by babysitting or dog walking. This allows the student to earn income, hopefully on a schedule that is flexible enough to work around college commitments.

Private Student Loans

This can be a source of funding for college expenses when grants, scholarships, and federal funding options have been exhausted. Private lenders can have different loan programs, so compare carefully before making a decision.

The Takeaway

In short, a signature student loan is a type of unsecure (no collateral) form private funding to help with educational expenses. It’s a private form of lending. There are pros and cons to this type of lending as this post demonstrates.

If you’re exploring private student loan options, SoFi can help. SoFi offers a low-interest rate, no fee form of private lending — a student signature loan — that covers costs that are school certified: tuition, books, supplies, room and board, and transportation.

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

FAQ

Is a signature student loan a good idea?

It depends on your unique situation, and whether you’ve explored all of the options for grants, scholarships, and federal loans. This article lists pros and cons of signature student loans.

Is it easy to get a signature student loan?

A signature student loan is a form of private funding, so the lender will likely check your credit scores and ability to pay back the loan. You may or may not need a cosigner.

When do you have to start paying a sig student loan back?

It depends on the private lender. Some have you start paying it back right away while others allow you to wait until you’ve finished school. Be clear about what you’re agreeing to, including when the loan must be paid back.

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Photo credit: iStock/FatCamera

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

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

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

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If the lure of the open road intrigues you and the idea of spending years in classrooms doesn’t, then becoming a commercial driver may be ideal for you. Before hitting the highway, you’ll need to secure a commercial driver’s license (CDL), which could cost between $3,000 to $10,000 depending on state fees.

This post shares ten ways on how to pay for CDL school, hopefully ones that are just right for you.

Typical Cost of Obtaining a CDL

CDL school costs can vary in part because of the school chosen — which can be private or public — and there may be other costs than what the school charges: application fees, road test fees, CDL skills test fees, and so forth. In general, figure $3,000 to $10,000 and check with your state’s Department of Motor Vehicles (DMV) to see what fees your particular state charges.

The CDL school price will likely account for most of the costs with the DMV able to fill in gaps in information for you. Note that publicly attended CDL schools will likely be cheaper but with potentially longer wait times.

Do You Have to Go to a School to Obtain Your CDL?

If you’re starting after February 7, 2022, then the answer is “yes,” you’ll need to pass minimum training standards to get your CDL license at a registered school or a place that provides the appropriate training. The Entry Level Driver Training (ELDT) is not retroactive, according to the Federal Motor Carrier Safety Administration FMCSA but holds true for those obtaining their CDL license for the first time. The FMCSA has created an online registry for schools and other training providers to list themselves and state that they meet training requirements, both federal and state.

How to Pay for CDL School

Fortunately, plenty of options exist, similar to paying for beauty school and other types of vocational training. To help, we’ve listed ten ways to pay for your CDL school costs and associated expenses.

1. Workforce Training Funding

The Workforce Innovation and Opportunity Act (WIOA) became law on July 22, 2014, and is designed to help job seekers get the education, training, support, and employment they need.The WIOA requires states to ensure that their workforce development programs are strategically aligned to meet the needs of workers. The WIOA is managed through the U.S. Department of Labor (DOL) in collaboration with numerous partners to get the necessary resources to states and local areas.

Plus, the FMCSA CDL Program Implementation Grant provides financial resources to states.

2. State CDL Training Grants

Each of the states in the United States and the District of Columbia can apply to the federal CDL implementation grant to get funding for relevant programs that assist in their CDL program. Contact the field office of your state or your specific state (links are included in the field office chart) to get information about what’s currently available to cover your CDL school price. Explain that you need financial assistance to get quality CDL training.

3. Local CDL Training Grants

You may find it easier to start your search by contacting a community college, library, or governmental agency in your city or county. You may get directed to state-level or other resources; what’s important is to start your search on how to pay for CDL school.

4. Scholarships

You may be able to find scholarships and grants to cover CDL school costs. As an industry site notes, the past few years have highlighted the importance of commercial truck drivers in our supply chain for food, medicines, and so forth. This adds to the demand for quality truck drivers that already existed before the Covid-19 pandemic hit. The result: perhaps more grants and scholarships are available to pay for CDL school costs.

5. Funding for Veterans

If you’re a veteran, you can use your GI benefits to pay the CDL school price. However, there are tax consequences that you’ll likely want to explore before making this move.

Plus, in a 2022 announcement by the U.S. Department of Transportation (DOT) ), the agency announced an award of $3.1 million to community colleges and training institutes. Funds are to be used to help current and former military personnel to get their CDLs. You can find a list of places that received funding and an associated dollar amount here .

6. Federal Student Loans

To qualify for federal loan funding, you must first fill out a Free Application for Federal Student Aid (FAFSA®). If a CDL school meets requirements, federal student loan aid may be available. Going this route will also let you know if you qualify for a Pell Grant based on your income; again, make sure that the CDL school is eligible to receive federal funding.

7. Private Student Loans

If grants, scholarships, and federal student loans don’t cover the CDL school costs, then explore private student loans. These loans are offered by banks, credit unions, and online lenders to pay for educational expenses. You’ll fill out an application and what you’ll receive typically depends on your credit score and income. Here’s more about what to know about private student loans. You may also find valuable information in our resource about private student loans for undergrads.

8. Trucking Company Tuition Reimbursement

This is when a trucking carrier pays part to all of your CDL school costs. They may do this if, for example, you’re a current employee in another capacity. Or trucking companies may take this route to encourage someone to join their company.

9. Savings

You may discover that you have enough money in your savings account to pay the CDL. Or you may create or continue a savings plan to accrue enough funds to pay for your training. That way, there’s no loans to pay back.

10. Company Sponsored CDL Training

A company in need of drivers may be offering a training program. Just ensure that the program, which is run by the trucking company itself, instead of a training school, is quality. Typically, you’ll need to work for the company offering the training for a certain amount of time; this can be good if you’re looking for a job, eliminating the stress of the job hunt that may follow the completion of a CDL program.

The Takeaway

You may decide that becoming a commercial truck driver is a good way to earn income. If so, you’re probably wondering how to pay for CDL school — and this post shares ten potential ways. If you decide that private student loans are a useful part of the mixture, here’s more information about applying for student loans online.

Community college and other certificate programs aren’t eligible for SoFi’s private student loans. If you’re heading back to school after getting your CDL and are interested in private student loans, consider SoFi’s no fee private student loans. These loans can be used to cover your costs of tuition, books, supplies, and more so you can get on the road as a fully licensed commercial truck driver.

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

Can you get your CDL without going to school?

As of February 7, 2022, new trainees in a CDL program must attend classes to meet minimum requirements. This post focuses on finding ways to help you pay for CDL school.

Do some trucking companies pay for your CDL training?

Yes, some are willing to help! Reach out to trucking carriers for specifics.

How much does getting your CDL cost?

In general, it costs anywhere between $3,000 and $10,000 to get your CDL. Check your school of interest to make sure it’s a quality program and ask what it costs. Also check with your state’s DMV to see what other fees may be involved.

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Photo credit: iStock/FG Trade

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

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

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.

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

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More and more young people are on the fence about going to a traditional four-year college. One popular decision-making strategy is to create a list of pros and cons of going to college. To get you started, we’re going deep into the benefits and downsides of attending college.

Keep reading to learn how college is correlated to more positive outcomes for grads, from lower unemployment to better health, as well as the financial risks.

On the Fence About Going to College?

Feeling torn about college can be a natural result of low motivation to continue schooling, a good job situation, or nontraditional career goals. Most people of all educational backgrounds would agree that college is not for everyone.

If you have a great job lined up now, waiting to attend school might make sense. On the other hand, if you need a degree to fulfill your goal of becoming a wildlife biologist, you may have little choice but to sign up for classes. The key is to be honest with yourself and clear about the consequences of your decision.

Pros of Going to College

It’s important to look at reasons both for and against going to college to avoid falling prey to “confirmation bias.” The term refers to our tendency to look for evidence, information, and ideas that confirm our beliefs. For example, if your gut is telling you college is not for you, you may unconsciously look for evidence that you shouldn’t go — without considering opposing reasons why you should.

Higher Earning Potential

One of the major reasons to attend college is salary potential. Let’s take a look at the median weekly earnings across various degree levels, according to the Bureau of Labor Statistics:

•   Doctoral degree: $1,909

•   Professional degree: $1,924

•   Master’s degree: $1,574

•   Bachelor’s degree: $1,334

•   Associate degree: $963

•   Some college, no degree: $899

•   High school diploma: $809

•   Less than a high school diploma: $626

According to these figures, a worker with a bachelor’s degree makes $27,300 more per year than a high school grad.

For recent bachelor’s degree graduates (ages 22 to 27), the median annual income reached $52,000 in 2021. Meanwhile, their same-age peers who obtained high school degrees only earned $30,000 per year.

Access to More Jobs

Candidates with a college degree have access to a wider variety of jobs. Prior to the 1980s, two-thirds of jobs required at most a high school diploma. But by 2027, 70% of all workers will need some college under their belts, according to the Georgetown University Center on Education and the Workforce.

Value of Learning

When you head into a college classroom, you learn more than just the job skills required in the white-collar workforce. You also learn critical thinking, time management and organization, money management, writing and speaking, teamwork, and project management.

Those who don’t attend college may not have the opportunity to develop specific skills that employers are looking for.

Networking

College offers opportunities to network on campus, through classes, career fairs, student organizations, and more. Career development offices at colleges and universities also help students network and connect with career and internship opportunities.

Some College Degrees’ High Return on Investment

Certain college programs offer a higher return on investment by allowing students to recoup their educational investment in five years or less. The list of bachelor’s degree programs with a high return on investment (ROI) include:

•   Nursing – including nursing administration and research

•   Engineering – including electrical, industrial, aeronautical, and petroleum

•   Dental support services and allied professions

•   Construction management

•   Quality control and safety technologies

Associate degree earners can find the highest ROI in the following majors:

•   Nursing – including nursing administration and research

•   Dental support services and allied professions

•   Health diagnostic, intervention, and treatment professions

•   Medical laboratory science / research and allied professions

•   Computer programming

•   Electromechanical instrumentation and maintenance technologies

•   Electrical engineering technologies

•   Industrial production technologies

•   Drafting/design engineering technologies

Lower Unemployment

Individuals who earn a bachelor’s degree are half as likely to be jobless compared to high school grads. And during times of economic upheaval, college graduates fare better.

For example, the unemployment rate for recent college grads hit 6.9% during the recession of 2008-2009. Not so bad compared to the unemployment rate for all young workers, which crested at 15.8% in 2010.

Today, the jobless rate for bachelor’s degree holders is less than 2%.

Lower Poverty

A total of 10% of the U.S. adult population reported earnings at or below the poverty level in 2019, according to the U.S. Census Bureau. Digging through the data shows that adults with a bachelor’s degree or higher experience the lowest levels of poverty.

Adults who reported being at or below the poverty line obtained the following levels of education:

•   Less than a high school diploma: 26%

•   High school degree or equivalent: 35%

•   Some college or associate’s degree: 26%

•   Bachelor’s degree or higher: 14%

Healthier

College graduates, on the whole, are more likely to be healthier. They may lead healthier lifestyles than non-college graduates because a college education stresses human development, which encompasses health and longevity.

College graduates are also more likely to have health insurance. Adults with some college or an associate degree are twice as likely not to have insurance coverage compared to those with at least a bachelor’s degree.

Better Educated Children

Studies suggest that parents who place a priority on educational attainment and model achievement for their kids (including going to college) typically have children who also value education. This leads to better-educated children.

More Likely To Save for Retirement

Most companies no longer offer pension plans to workers, so individuals must create their own retirement savings plan or join one offered by an employer. College graduates are more likely to contribute to a retirement plan like a 401(k). Even when high school graduates have access to similar plans, college grads contribute 26% more to their retirement plans than their high school graduate counterparts.

Cons of Going to College

The cost of college, the availability of high-paying jobs that don’t require a degree, and underemployment — there is a long list of reasons why paying for college may not make sense for you.

Cost of College

The average cost of attendance (tuition, fees, and room and board) for an undergraduate education increased 169% between 1980 and 2020, according to the Georgetown University Center on Education and the Workforce.

These costs may encourage you to begin thinking about alternatives to college, particularly if you or your family will struggle to come up with the money to pay for college. Student loans may also be a challenge to pay back later on.

Recommended: Private Student Loans vs Parent Plus Loans

Cost of Tuition

Tuition is typically the most expensive part of attending college. According to the most recent information from the National Center for Educational Statistics, the average tuition cost for first-time, full-time undergraduate students in 2019-2020 was:

•   Public four-year institutions: $9,400

•   Private nonprofit four-year institutions: $36,700

•   Private for-profit four-year institutions: $19,100

However, it’s important to remember that many students pay far less than the sticker price to attend college. The cost of attendance displayed on a college website may not be the amount it will cost you to attend.

Opportunity Cost of Time Spent Not Working

When you attend college, your available hours to work are reduced by classes and studying. You may spend up to two years in a classroom for an associate degree, or lose four years to obtain a bachelor’s degree. You’ll also lose out on income you could have been earning.

High-Paying No-Degree Jobs

Some high-paying jobs don’t require a college degree. Often, individuals can make up for a lack of degree by showcasing on-the-job experience. Here is a list of jobs that don’t require a degree:

•   Patrol officer

•   Home health aide

•   Personal care aide

•   Wind turbine technician

•   Recreation and fitness worker

•   Massage therapist

•   Landscaper and groundskeeper

•   Medical assistant

•   Computer support specialist

Underemployed College Graduates

Underemployment refers to recent college graduates (ages 22 to 27) with a bachelor’s degree or higher who are working in a job that doesn’t require a bachelor’s degree. In February 2022, about 41.4% of recent U.S. college graduates were underemployed in the United States.

Dropping Out

Less than half of college students graduate on time, and more than 1 million students drop out of college every year. The problem with dropping out is that you might get saddled with student loan debt but not have the degree to show for it.

Some of the risk factors for dropping out include part-time enrollment in college, full-time employment while attending school, gap years and leaves of absence, and students who are not dependent on their parents.

Earning Potential of Different Majors for College Graduates

The major you choose can affect your income. However, it’s important to remember that majoring in history doesn’t prevent you from going to work for an insurance company. Still, according to the Georgetown University Center on Education and the Workforce, your major still matters.

Top-paying college majors earn $3.4 million more over a lifetime than the lowest-paying tier of majors. The highest earners belong to STEM fields (science, technology, engineering, math), health, and business. These jobs typically earn $65,000 or more annually over the course of a career, with an entry-level salary of $37,000.

Is College Right for You?

Let’s put some pros and cons of college side-by-side. You may consider adding to them based on your own thoughts and research.

Pros of Attending College	Cons of Attending College
Higher earning potential	High cost
Access to more jobs	Opportunity cost of time spent not working
More learning opportunities	The availability of high-paying, no-degree jobs
Networking opportunities	Underemployed college graduates
High ROI for some degrees	The possibility of dropping out
Lower unemployment
Lower poverty
Health benefits
Better educated children
Higher likelihood of saving for retirement

Alternatives to College

A traditional four-year institution isn’t the only type of college you can attend. You can also consider attending a trade school, community college, industry-specific education program, or even learning on-the-job. Let’s go over the details of each of these opportunities, which can be more cost-effective than other educational institutions.

Trade School

A trade school (also called a technical or vocational school) teaches students skills for specific occupations, often for in-demand fields. Students can learn mechanical trades, truck driving, cosmetology, and more, and earn a certificate for their learning efforts. Trade schools often cost less than traditional four-year colleges and universities, so graduates may end up with less student loan debt.

Many trade schools expect students to complete an apprenticeship with an experienced practitioner. Full program training may last between three months and a year.

Recommended: What Trade Jobs Make the Most Money?

Community College

A community college is a tax-funded public college that, like trade school, usually offers a cheaper alternative to a four-year college experience. Community colleges usually offer one- or two-year associate degrees, certificates, or workforce training. Community college degrees often transfer to four-year institutions, allowing students to move over to a flagship state university.

Community colleges may offer flexible class schedules, often allowing students to work or take care of family at the same time. About 30% of students are enrolled in community colleges.

Industry-Specific Education Programs

Sector-based training, where people are trained for jobs in high-demand fields, is on the rise. This training may focus on health care, information technology, advanced manufacturing, or transportation and logistics. Employers offer the training to middle-skilled candidates, mutually benefiting workers and companies that need to fill jobs.

Learning on the Job

Employers will sometimes hire uncredentialed candidates with the understanding that individuals will secure certifications within a certain timeframe. Such training is typically paid for by the company. Workers benefit by getting paid while they’re in school and receiving free education.

The Takeaway

While a bachelor’s degree is associated with numerous benefits, from lower unemployment to better health, remember that correlation is not causation. If you’re ambitious and creative with good people skills, you may do just as well without an expensive 4-year college degree. Alternatives include community college, trade school, and learning on the job. It’s true that some careers require a bachelor’s degree, but many high-paying jobs do not. Be honest about your motives, and carefully consider the pros and cons of your decision.

3 Student Loan Tips

1. Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
2. Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
3. Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

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 are the biggest reasons for not going to college?

There are a wide variety of college pros and cons, but the biggest reasons involve not being able to afford it, not being ready for the opportunity, and already having a job. If you’re deeply worried about the cost but still want to go to college, there are tuition-free colleges you may want to consider.

What are the most important reasons to attend college?

One of the most important reasons to attend college is to be able to achieve a career goal that you have set for yourself. Even if you don’t know exactly what you want your major to be, you may pursue higher education to discover that goal. Another important reason to attend college involves acquiring skills that help your overall development, both personal and professional.

How does college compare to trade school as far as cost and benefit go?

The average tuition cost of a trade school is much lower than a four-year college or university. Trade school can cost up to $33,000 on the high end of the spectrum, but typically costs between $5,000 and $15,000 in total.

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Photo credit: iStock/FG Trade

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

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The high cost of graduate school can make the dream of getting a master’s or a doctorate feel like a financial impossibility for many people. One way to help with tuition is by applying for a graduate fellowship, a merit-based award given by the university you’re attending or from an outside organization.

As with other scholarships and grants, there can be steep competition for these awards. Here’s a guide to graduate fellowships and how to go about applying for one.

What Is a Graduate Fellowship?

Fellowships are awards given to qualified graduate students based on academic merit. The purpose of a graduate fellowship is to give financial support while graduate students pursue their coursework, conduct research, and do intensive study into their particular field area.

Unlike a graduate assistant, who commits to working as a teaching or a research assistant in exchange for pay, fellowships do not typically come with any associated work requirements.

Besides helping you cover the cost of tuition, a fellowship may offer an additional cost-of-living stipend and health insurance, and cover related expenses such as attending an academic conference. Fellowships are awarded for a specific amount of time, ranging from a few months to several years.

Perhaps the biggest benefit is, unlike a student loan, you don’t have to pay any money back.

Internal vs External Graduate School Fellowships

There are two main sources of fellowships that can fund your tuition: internal and external. The latter is sometimes referred to as a portable fellowship. Internal funding comes from the university, while external financial support is provided by non-university outlets. (Of course, there are other ways to pay for grad school too.)

Here’s a breakdown on how they differ:

Internal Fellowship	External Fellowship
Sponsored and awarded by the college or university.	Awarded by organizations outside the school, such as government agencies, corporations, nonprofits, and private foundations.
Less competitive. There’s a smaller pool of applicants who are applying to that specific school only.	More competitive because you’re applying along with people from other colleges and universities.
Stipend may be lower.	Stipend amount often meets or exceeds those issued by a university.
Funding is specifically for study at one college or university.	Funding is less likely to be dependent on affiliation with a particular college or university. Recipients generally have the flexibility to choose their school and programs of study.

Types of Graduate School Fellowships

Graduate fellowships vary in duration and purpose, and whether you’re a graduate, doctorate, or postdoctoral student. Here are the two main kinds of fellowships:

•   Graduate or Predoctoral Fellowship. This is for students who are pursuing a master’s or doctorate degree. Funding can come from the institution the student plans to attend or from an external source such as a philanthropic foundation or nonprofit organization.

•   Postdoctoral Fellowship. After a student completes their doctorate program, they can apply for a postdoctoral fellowship. These awards are geared toward people who want additional time to devote to study and research.

Applying for a Graduate Fellowship Program

Expect a long to-do list when applying for a graduate fellowship program. These tips can help you prepare your application:

•   Identify fellowships that are the right fit. There are a lot of fellowships out there, so do your due diligence to see which one might best meet your goals. Will this opportunity enhance you both personally and professionally? Because the application process can be intense and time-consuming, be sure you’re pursuing just the right opportunity.

•   Check eligibility requirements. Research the different internal and external fellowship opportunities to see what each requires. Some fellowships may be for U.S. citizens only, have an upper age limit, want students who intend to be or are enrolled in a graduate program, or have never accepted a graduate fellowship before. If you’ve been awarded grad school scholarships, make sure your fellowship is aware of them too.

•   Start early. An application may call for prerequisite paperwork, personal statements, project or research proposals, transcripts, and letters of recommendation, so you’ll want to give yourself enough time to gather these materials. You don’t want to be scrambling to get everything together at the last minute.

•   Proofread your application carefully. You’ve got one shot to impress people, so don’t submit an application that hasn’t been reviewed and re-reviewed. Be sure to check for spelling and grammar mistakes, and ask a trusted advisor or friend to read it as well. Applications that are polished and absent mistakes can create a more favorable impression.

What You Need To Know About Fellowships for Graduate Students

If you’re thinking about going for a graduate fellowship, you’ll want to be aware of how they work. Read on for all the ins and outs:

Applying for a Graduate Fellowship Program

There are lots of moving parts when it comes to applying for a graduate fellowship. And because these awards are in high demand, you’ll want to get ahead of the crowd of other applicants by submitting your paperwork as soon as possible.

Early Deadlines

Internal and external graduate fellowship deadlines typically fall between the months of October and February. Funds are designated for the next academic year. This means you need to apply to them at the same time you’re also applying to grad school.

If you make the mistake of looking into funding opportunities after you’ve sent out your graduate school applications, it’s too late. Begin your research and applications for graduate school fellowships early so you don’t miss these important deadlines.

Funding Duration

As mentioned earlier, funding for graduate fellowships comes from either the university you’re attending (internal) or from outside organizations (external). When searching for graduate fellowships, keep duration in mind. Financial support varies depending on the fellowship: Some can fund you for a year while others might cover as many as three years.

If you’re in a two-year master’s program and the fellowship only covers a year, you could find yourself worrying about how to pay for that additional year. Working toward a PhD can take up to 8 years, so if you’re pursuing a doctorate, you’ll definitely want to aim for a multi-year fellowship.

Competition

When it comes to easing the burden of graduate school costs, fellowships are a popular option — which means they can be highly competitive. Fellowship programs look for highly qualified people who are also high achievers.

External graduate fellowship opportunities cast a wider net, so you have more options. But if you’re applying for an external fellowship, you’re up against a bigger pool of applicants from all over the country and even internationally. With an internal fellowship, you’ll find yourself competing with far fewer candidates.

Reserved Assistantships

Graduate assistantships are very much like work-study programs. However, instead of getting paid to do something totally unrelated to your field, like washing dishes in the cafeteria, these part-time teaching, research, and service administrative positions within the university exist to give you more focus in your chosen field.

Teaching and research positions are typically geared toward a student’s area of study, while an administrative position can be in any university department, such as the library service, residence hall, or university office.

Compensation can be in the form of hourly pay, a monthly stipend, or a tuition waiver. You may even be able to find an assistantship that pays your tuition and gives a stipend. Some schools also offer their assistants student health insurance.

These positions not only offer financial support, but are often highly convenient for students who already spend the majority of their time on campus. In one central location, you can attend classes, study your discipline, network, and earn money.

As with other internal graduate fellowships, application procedures vary by school. Check with the specific institution for deadline and application information.

Recommended: College Tuition Payment Plans

Part-Time and Online Graduate Programs

Not all graduate students can attend school full-time or be onsite. Though many fellowships (internal and external) do require a student to be full-time, some accept part-time students. Fellowships for online students exist as well, but might also be more geared to full-time students. You will probably have the most options for part-time or online degree programs with externally funded fellowships.

By the way, if you’re counting on student loan deferment for graduate students, make sure that part-time and online students are eligible.

Internal Funding Sources

Colleges and universities that award graduate fellowships get the money to fund them from several sources. Where a school gets its money can depend on whether it’s a private or public college, for-profit or non-profit. Funding for fellowships can come from student tuition and fees, federal and state governments, and endowments, which are funds donated by individuals or an organization.

Postdoc Fellowships

These fellowships are awarded to people who have earned their doctorate degree. A postdoc fellowship allows the PhD holder to acquire additional academic knowledge and research training. Areas a postdoc fellow might undertake include teaching, grant writing, presenting findings to others, and leading projects and other team members.

Postdoctoral fellows are typically paid in the form of a stipend. Both internal and external sources can fund a postdoc fellowship.

Long-term Career Prospects

Fellowships can bolster your resume and get the attention of prospective employers. As a graduate fellow, you’ve shown you’re motivated, disciplined, and serious about your focus of study. You’ve also shown you’re highly qualified and stood out from a pool of other candidates.

Education pays off when it comes to employment. According to the U.S. Bureau of Labor Statistics, people with higher levels of education and advanced degrees typically earn more money and have lower rates of unemployment compared with people who have less education and lesser degrees.

Graduate and postdoctoral fellows can go on to have long-lasting careers as researchers, university professors, expert scholars, writers, and authors. They can also work in their specialty for a corporation, government agency, or at a nonprofit organization.

Recommended: The 14 Best Jobs for MBA Graduates

The Takeaway

A graduate fellowship can help fund your postsecondary education, easing stress and averting debt. You can find fellowship opportunities through your college or university of choice, or through external sources such as foundations and non-profit organizations. The competition for fellowships is steep, but applying early on can increase the chances you’ll be rewarded with one.

3 Student Loan Tips

1. Can’t cover your school bills? If you’ve exhausted all federal aid options, private student loans for graduate students can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.
2. Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
3. Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

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

Can I have more than one fellowship?

Yes you can, but it may not always be beneficial. Before applying to any external opportunities, check your school’s policy regarding additional fellowships. Some colleges will allow you to have more than one, but they will also look at your whole financial package as well. Schools have the ability to decrease your fellowship amount if you’ve also been awarded another one.

Is a fellowship prestigious?

Quite. Fellowships are merit-based academic awards given to outstanding students that fellowship committees believe will make an important and long-lasting contribution to their field of study. Since there is a lot of competition for these awards, recipients have submitted applications with impressive faculty recommendations, a project or research proposal, and well-written personal statement.

How do you find fellowships for graduate school?

First, check with your specific school to see what fellowships they offer. You can find external fellowships on websites of professional organizations related to your discipline and through databases on sites such as Profellow.com and Bigfuture.collegeboard.org.

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Photo credit: iStock/AntonioSolano

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

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