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Studying abroad can be a life-changing opportunity that will enrich your college experience. But that enrichment can come with a strain on your bank account. If you’ve always wanted to head overseas, your college years are a great time to do it. But can you afford it?

If you’re looking for how to get money to study abroad, there are a few different student loan options that may be worth exploring. Whether you’re about to head off to college, currently enrolled, or in graduate school, student loans may be available to help finance your trip. Read on to understand how student loans to study abroad work.

Can Student Loans Be Used for Studying Abroad?

As mentioned, studying abroad can be an outstanding opportunity for a college student to expand their cultural horizon, meet new friends, and maybe learn a new language. While this can be an incredibly enriching experience, it’s important to factor in both the pros and cons of studying abroad — it can also be expensive.

Costs for studying abroad vary depending on where you go, what you study, and how long you stay, but average costs can hover around $16,000 per semester as of 2023. Students can use a combination of savings, federal student loans, private student loans, and some scholarships or grants to pay for their study abroad experience.

Federal Student Loans for Studying Abroad

It’s possible to use federal student loans to pay for your study abroad experience. Federal student loans can be used to pay for any qualifying educational expense — you can even use student loans to pay for living expenses like rent or room and board.

To get federal financial aid — which includes grants and loans — you’ll need to complete the FAFSA® each year. The financial aid office at your domestic university should be able to tell you which forms of aid can be used to cover study abroad expenses. Be sure to file your FAFSA in plenty of time and check in with both your American school and the international school as additional paperwork may be required.

Recommended: How to Complete the FAFSA Step by Step

Private Student Loans for Studying Abroad

Federal financial aid may cover some expenses for certain study abroad programs, but there might not be enough cash to cover the whole experience. That’s where private student loans could come in handy.

Private student loans are available from private financial institutions and can be used to cover up to a school’s cost of attendance, less other forms of financial aid. Unlike most federal loans, private lenders will generally review information about the applicant including their credit score, among other factors, when making their lending decisions.

There are a few things to keep in mind before taking out a private student loan for study abroad, including:

•   Interest rate: A high interest rate can cause you to pay significantly more than you expected. Also, see if you’re signing up for variable or fixed interest rate loans, as variable rates fluctuate up and down depending on the markets.

•   Repayment: Review loan terms to see when you will start paying back your student loans. Federal loans usually start student loan repayment six months after graduation (or when you drop out or drop below part-time hours), but private loans can vary in their repayment schedule. Some may require you to start repayment even while you’re in school. At the very least, consider looking for loans that don’t require repayment until after you’ve graduated.

Private student loans can be a tool to help students pay for college and study abroad costs, but because they don’t necessarily offer the same protections (like income-driven repayment options or forgiveness) as federal student loans, they are generally borrowed after other options have been exhausted.

Recommended: Guide to Private Student Loans

Grants and Scholarships

Many grants and scholarships can be used to help students pay for studying abroad costs. Some scholarships may require students to participate in specific study abroad programs, so be sure to review the details of each application closely. Looking for study abroad scholarships? Check out SoFi’s scholarship search tool.

Depending on your school’s policies and the program you choose, you may be able to use the institutional or federal financial aid you receive to pay for study abroad costs. Some schools may require that you participate in a study abroad program affiliated with the school in order to apply institution-specific aid to the study abroad program. Check in with your school’s financial aid office to be sure.

Are Student Loans for Studying Abroad Different From Typical Student Loans?

Student loans for studying abroad are not different from the typical student loans used to pay for college. Federal student loans can be used to pay for study abroad costs so long as the program is offered through an eligible institution. As mentioned, you may be required to fill out additional paperwork for federal financial aid if you are studying abroad, so check in with your financial aid office to determine any requirements.

Determine How Much Your Study Abroad Will Cost

To determine how much you’ll need to borrow to pay for your study abroad experience, you’ll need to figure out how much the experience will cost in comparison to a typical semester. Continue reading for some of the study abroad costs to consider.

Tuition

Tuition costs vary depending on the program type and location. Some schools may offer affiliate programs for study abroad, which may have similar tuition costs to attending the university in-person.

Other programs may offer direct enrollment at a local institution in the destination country. Enrolling directly in a local school may allow you to secure a more affordable tuition, but you may be responsible for additional costs like health insurance or rent.

Living Expenses

Consider the living accommodations available in the program you have selected. If you are working with your school or another third-party provider, they may have living accommodations set up for you. If you are enrolling directly with a local university, you may need to find an apartment to rent or live in on-campus housing (if available). Review the options at your destination closely. This guide has more information on college money management that could help you build out your study abroad living expenses budget.

Travel Expenses

Factor in not only the expense to travel to your initial destination, but also any additional travel costs you may incur during your semester abroad. For example, if you are living in Paris for a semester, will you be taking any weekend trips elsewhere in Europe? Map out your other travel plans and estimated prices for flights, trains, hostels, and food. You could consider setting up a dedicated travel fund to save for your semester abroad.

Graduate Study Abroad Loans

If you’re in search of how to get money to study abroad, when you go can be just as important as where you go. Undergraduate degrees are usually less expensive than graduate ones (though this may depend on the field of study), which means studying abroad during undergrad may also be less expensive. Graduate student loans are a bit different from undergrad ones in a few ways, including:

•   Higher interest rates, higher limits. Since graduate degrees are more expensive than undergraduate ones, you can borrow more money with graduate loans. Unfortunately, graduate loans also tend to have higher interest rates.

•   Unsubsidized loans. Undergraduate students may qualify for Direct Subsidized Loans, or loans where the federal government pays your interest rate while you’re in school. Direct Unsubsidized Loans for graduate studies start accruing interest while you’re in school. This could be costly once you graduate.

Do your research on the different student loan options, and if you have flexibility in your timing, you may wish to consider going abroad as an undergraduate rather than as a graduate student. You could potentially save some money in the long run.

Private Student Loan From SoFi

Both federal and private student loans can be used to pay for costs associated with qualifying study abroad programs. The requirements for federal loans may vary depending on the program you are enrolling in, so check in with the financial aid office at your school.

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

FAQ

Can I use student loans to receive a degree from an international school?

Yes, you can use student loans to receive a degree from an international school, but the availability and type of loans will depend on several factors, including the country and the specific institution. Many U.S. federal student loans can be applied to eligible foreign institutions that participate in the Federal Student Loan Program.

Additionally, private lenders may offer loans for studying abroad, often with different terms and requirements compared to federal loans. It’s crucial to research and confirm the eligibility of the international school for federal student loans and to explore various private loan options.

Can you get a federal student loan to study abroad?

Yes, federal student loans can be used to pay for study abroad expenses. There may be some additional requirements so check in directly with your college’s financial aid office.

However, if your school does not participate in the federal aid program, you likely will not be able to secure financial aid to study abroad either.

Are there special loans for studying abroad?

Both the federal and private student loans can be used to pay for study abroad expenses. It’s possible to apply for a private student loan specifically to study abroad, but these loans are generally the same as student loans used to pay for classes at your American school.

What are other ways to finance studying abroad aside from loans?

Students may also be able to use savings, scholarships, or grants to pay for study abroad costs.

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.

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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A career in medicine can be rewarding, but the high cost of medical school means many students take on additional student debt on top of their existing undergraduate student loans.

Some students defer student loan payments while they’re in medical school and others choose to refinance their student debt. The right choice for you depends on a number of factors, such as whether you have federal or private student loans. Here’s what to know about refinancing student loans during medical school.

What You Can Expect to Pay

Going to medical school is expensive: The average cost of medical school is $264,704 for four years at a private institution and $161,972 at a public medical school, according to the Education Data Initiative.

Many students need loans to cover the high cost of medical school tuition and other educational expenses. In fact, 70% of medical school students use loans specifically to help pay for medical school (as opposed to undergraduate debt). The average medical school graduate owes $250,995 in total student loan debt, which includes undergraduate debt.

If you don’t have the option for in-school deferment for your undergraduate loans while you’re enrolled in med school, refinancing your undergraduate student loans might be worthwhile and may help lower your loan payments while you’re in medical school. Here’s what you need to know to decide if refinancing loans as a medical student is right for you.

Can You Refinance Student Loans During Medical School?

Whether you have federal or private student debt, you can technically refinance your student loans at any time along your journey toward becoming a physician.

During a student loan refinance, you can combine multiple student loans of any type — federal and private — into one new refinance loan. This new loan is from a private lender, and comes with a new interest rate and different loan term.

The lender will repay your original loans that were included in the refinance process. You’ll then repay the lender, based on the details of your refinance loan agreement, in incremental monthly payments.

Another Option for Federal Student Loans During Medical School

It’s important to know that if you have federal student loans, refinancing them will remove you from the federal student loan program.

Keeping your federal student loans within the Department of Education’s loan system gives you access to benefits and protections that can be useful while in medical school, like extended deferment or forbearance.

Generally, automatic student loan deferment is applied to federal Direct Loans of borrowers who are enrolled at least half-time at an eligible school. If your federal student loans from your undergrad program weren’t placed on in-school deferment status, reach out to your school and ask them to report your enrollment status.

This student loan refinancing alternative can postpone your monthly payment requirement until after you leave school. However, if you borrowed Direct Unsubsidized Loans or Direct PLUS Loans, you’re responsible for repaying interest that accrues during this time.

Pros of Refinancing During Medical School

A student loan refinance during medical school can offer benefits.

Extend Your Loan Term

Generally, once you’ve signed your student loan agreement you’ve committed to a specific repayment term. For example, if your private student loan has a 5-year term, you’ll need to repay the loan’s balance, plus interest, in that time period.

However, repaying your loan balance while attending medical school might be difficult. With a student loan refinance, you can choose to prolong your repayment timeline over a longer term, like 10 or 15 years.

Lower Monthly Payments

By extending your student loan refinance term, your monthly installment payments become smaller since they’re stretched over a longer period. Prolonging your loan term can result in paying more interest over the life of the loan. However, it affords you a lower monthly payment so you have more funds in your budget toward the day-to-day cost of medical school.

Some Refinancing Lenders Offer Deferment

Some refinancing lenders offer borrowers the option to defer their student loan refinance payments while in medical school. Generally, you’ll need to meet the lender’s minimum enrollment status and possibly meet other requirements.

This benefit, however, isn’t offered by all lenders so always confirm with the lender before finalizing any student loan refinance offer.

Recommended: A Guide to Refinancing Student Loans

Cons of Refinancing During Medical School

Although there are benefits to refinancing your student loans, there are downsides to this repayment strategy as well.

You Could Pay More Interest Over Time

Extending your loan term causes you to pay more interest throughout the life of the loan, assuming you don’t make extra monthly payments. This means that you’ll ultimately pay more overall for your undergraduate degree.

You’ll Lose Access to Loan Forgiveness

If you refinance federal student loans, you’ll lose access to federal benefits and protections. Physicians who expect to work in the government or nonprofit sector might be eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program.

To be eligible for forgiveness, you must have eligible Direct Loans, and have made 120 qualifying payments toward your federal loan debt while working for a qualifying employer. After PSLF requirements are met, the program forgives the remainder of your eligible federal loan balance.

You’ll lose access to this significant benefit if you refinance federal loans into a private refinance student loan.

Should You Refinance Your Student Loans?

Student loan refinancing is a strategy that can be advantageous for certain borrowers in specific circumstances. For instance, it might be a good option for borrowers who already have a private undergraduate loan and simply want to lower their interest rate to save money.

It can also be a strategy to extend your term if your main goal is to lower your monthly undergraduate loan payments. Borrowers who have adequate savings, reliable income while in medical school, and who are confident that they won’t participate in programs, like PSLF, might benefit most.

Assess your current financial situation, and talk to your loan servicer or undergraduate loan lender to get a full understanding of your repayment options during medical school.

Refinancing Student Loans With SoFi

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

FAQ

Can you refinance student loans in residency?

Yes, you can refinance student loans while in residency. However, if you refinance federal loans, it will make that portion of your student debt ineligible for federal loan forgiveness in the future.

Do doctors ever pay off their student loans?

Yes, doctors pay off their student loans, though how they do so can vary. Some start making small payments during residency or apply for an income-driven repayment plan, while others refinance or pursue loan forgiveness programs.

When should I refinance my medical student loans?

Exploring a private student loan refinance can be done at any time, especially if your income is stable and your credit has improved since you first took out the loan. If you have federal student loan debt, consider whether you’ll pursue loan forgiveness at any point along your career journey. If you might, your student loans must be kept within the federal loan program to be eligible for forgiveness.

Photo credit: iStock/Edwin Tan

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

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The cost of attending college in the U.S. can be quite expensive. In addition to tuition and fees, students may need to cover the cost of room and board, and other expenses like books and lab fees.

To help students going to college manage their budgets, it’s important that they carefully weigh their options when it comes to public and private schools. In-state tuition at public colleges can be far cheaper than out-of-state tuition or the price of attending private nonprofit schools.

College Tuition in the United States

The United States has some of the highest tuition costs, and prices have risen over time. Some of the factors that drive increasing prices are increased demand from students and increased availability of financial aid.

Colleges have also added amenities to their campuses to help attract higher-paying students. The cost of these amenities can account for as much as $3,000 per student per year. Schools are also spending more on administration.

Average College Tuition

The cost of colleges varies depending on whether students choose to attend public or private institutions. Public schools generally have different costs for in-state versus out-of-state tuition.

The average tuition in 2024 at a public, four-year school for in-state students is $9,750 per year. Students attending a public four-year program from out-of-state could expect to pay $28,386, according to Education Data Initiative.

Students who wished to attend a private nonprofit four-year college paid an average of $38,421.

In addition to tuition and fees, students have to cover other costs, such as the price of room and board, transportation, and other expenses. These additional expenses will vary depending on whether you’re living on or off-campus, but they can add more than $10,000 to the price of attending school. The average cost of attendance for students attending a public four-year in-state program is $27,146 for the 2023–2024 school year. Out-of-state students had an average of $45,708. And students attending a private nonprofit four-year program had an average annual cost of attendance of $55,840.

Recommended: What is the Average Cost of College Tuition?

States With the Cheapest College Tuition

College tuition prices vary widely by state at public four-years institutions. Generally speaking, public colleges in the South and the West are the cheapest to attend. Colleges in the Northeast are the most expensive. Vermont has the most expensive in-state tuition and fees, topping out at $17,180. New Hampshire is a close second at $17,170. To learn more, take a look at the annual study published by the College Board that tracks trends in college pricing and financial aid.

Here’s a look at the states with the cheapest in-state tuition and fees at four-year flagship university programs over the 2023–2024 school year.

Wyoming

University of Wyoming
In-state tuition and fees: $6,700
Out-of-state tuition and fees: $22,480

Florida

University of Florida
In-state tuition and fees: $6,380
Out-of-state tuition and fees: $28,660

Montana

University of Montana
In-state tuition and fees: $8,150
Out-of-state tuition and fees: $31,620

Idaho

University of Idaho
In-state tuition and fees: $8,820
Out-of-state tuition and fees: $28,050

North Carolina

University of NC-Chapel Hill
In-state tuition and fees: $9,000
Out-of-state tuition and fees: $39,340

Nevada

University of Nevada: Reno
In-state tuition and fees: $9,010
Out-of-state tuition and fees: $25,970

Mississippi

University of Mississippi
In-state tuition and fees: $9,410
Out-of-state tuition and fees: $26,980

South Dakota

University of South Dakota
In-state tuition and fees: $9,430
Out-of-state tuition and fees: $12,940

West Virginia

West Virginia University
In-state tuition and fees: $9,650
Out-of-state tuition and fees: $27,360

Arkansas

University of Arkansas
In-state tuition and fees: $9,750
Out-of-state tuition and fees: $28,770

Paying for College

Because the price of college tuition, fees, and room and board can be so high, many students have to take out student loans, apply for grants and scholarships, or apply for student aid in order to make college affordable. Students may take out federal loans or private loans to help them pay for school. They will have to repay these loans through a series of monthly payments with interest.

Federal student loans are offered by the U.S. Department of Education under the William D. Ford Federal Direct Loan Program. This program offers four types of federal loans:

•  Direct Subsidized Loans are available to undergrads who demonstrate financial need. Interest on these loans is covered by the Department of Education while the students are enrolled in school at least half-time.

•  Direct Unsubsidized Loans are available to undergrads, graduate students, and professional students and are not made based on need.

•  Direct PLUS Loans are for graduate and undergraduate students and parents of dependent undergrads. Eligibility is not based on financial need.

•  Direct Consolidation Loans allow students to combine federal loans into a single loan.

To apply for federal student loans and other forms of federal aid, students are required to fill out the FAFSA®, or Free Application for Federal Student Aid, each year.

Recommended: FAFSA Guide

Private student loans may be available through private lenders, such as banks and online lenders. These institutions set their own terms, interest rates, and loan amounts. When determining individual rates and terms, lenders will generally evaluate the applicants credit history, among other factors. Private student loans are typically considered a last resort when it comes to financing college because they aren’t required to offer the same borrower benefits or protections (like income-driven repayment options) as federal student loans.

There are also various sources of financial aid that can help students pay for school. It can come from federal, state, school, and private sources.

•  Grants, such as federal Pell Grants, are a form of financial aid that doesn’t need to be paid back, unlike student loans.

•  Scholarships are funds offered to students often based on academic performance, an area of study, or special talents. Scholarships also do not generally need to be repaid.

•  Work-study programs allow students to earn money while they are in school. Students may qualify for the federal work-study program based on financial need.

•  Many schools offer financial aid or scholarships.

The Takeaway

College can be a huge expense, but there are also a lot of benefits of a college education. As you’re choosing schools, it’s important to evaluate all of your options and think seriously about choosing one that’s in your budget as well as finding manageable ways to pay for it. That may mean attending the public school in the state you live in. And if you live in one of the states with the cheapest in-state tuition, you may pay less than $10,000 a year to go to school.

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

FAQ

How much does college cost on average in the U.S.?

The estimated cost of attendance for one year of college is $27,146 for in-state students at public four-year schools, $45,708 per year for out-of-state students at public four-year colleges, and $55,840 for students at private nonprofit schools.

What state has the cheapest tuition?

States with the cheapest tuition include Florida, Wyoming, and Montana.

Photo credit: iStock/Bet_Noire

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.

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.

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A college education almost always costs more than families initially think it will, when everything is accounted for, so most students take out loans. The loan money is sent to the attending college, placed in the student’s account, and applied to various costs.

Fortunately, there are plenty of options available. But students are often left with questions like: How are federal student loans disbursed? How are private student loans disbursed?

Generally speaking, both federal and private student loans are disbursed directly to the school to pay for things like tuition, fees, and room and board. Continue reading for additional clarification and guidance on federal and private student loans.

The Lowdown on Student Loans

Student loans are designed to help college students absorb the many costs of postsecondary education.

The average price of tuition for the 2023-24 school year is $9,750 for an in-state undergraduate student at a public college and $38,421 for a private college student, according to Education Data Initiative.

So borrowing becomes the normal route. Student loans be used to cover expenses such as:

•   Tuition and fees

•   Housing

•   Meals

•   Transportation

•   Books and supplies

•   Computers

Loan amounts can be excessive and give students the idea that they have a surplus of cash to spend. A rule of thumb suggests that only required materials and needs can be paid for with a loan.

For example, student loans may cover a campus meal plan but not food purchased from local fast-food joints. Bus fare or ride-share fees may be covered but not the purchase of a new car.

When in doubt about whether an item can be purchased with student loan funding or not, it’s best to speak directly to the loan provider or college financial aid department.

Got leftover money? Before going on a shopping spree, remember that that’s borrowed money and will have to be repaid, with interest.

Types of Student Loans: Federal and Private

There are two main types of student loans: federal loans vs. private loans. Federal loans are provided by the U.S. government, while private loans are issued by financial institutions. Each type of loan has advantages and potential caveats students should be aware of.

Financial advisors almost always recommend exploring federal options first. Applications are quickly processed, and these types of loans tend to have lower interest rates than private options. Interest rates are almost always fixed, meaning students won’t have to worry about fluctuating payments.

Another advantage is that students don’t typically have to begin making payments on federal loans until after graduation or dropping below half-time enrollment, according to the Federal Student Aid office. (Holders of parent PLUS loans for undergraduates are expected to begin making payments after the loan is fully disbursed, unless the parent requests deferment.)

Federal financial aid programs also offer more flexible repayment plans based on income, may be subsidized, and offer loan forgiveness to qualified students, the Federal Student Aid office notes.

But the benefits of federal loans don’t mean private student loan options shouldn’t be considered. For some students, like those who are denied federal funding, those for whom federal loans come up short, and those who are approved but never receive their full loan amount, private loans can be a financial lifesaver.

With a bit of grit and potentially a cosigner with a healthy credit score, students can obtain private loans with low and fixed interest rates comparable to federal loans.

One common downside of private loans is that repayment tends to start immediately. But in some cases, private loans can offer larger sums of money upfront, allowing students to pay for nearly every expense with one loan and make only one payment a month.

So now that you know that there are two main types of student loans, federal and private, it’s important to know the variations of each type. Continue reading for each type of student loan explained.

Direct Subsidized Federal Loan

Also known as a Stafford Loan, this option is often touted as the best type of federal loan available to applicants. That’s because a loan applicant will receive a subsidy upon graduation matching the amount of interest the loan has accrued.

In other words, a Direct Subsidized Loan will always be paid back at its original amount, despite years of accruing interest. Because it’s hard to match the benefit of an interest-free loan, it’s recommended to always accept these types of loans if approved.

Direct Unsubsidized Federal Loan

Unlike the subsidized version, a Direct Unsubsidized Loan will accrue interest, which will be included in the final repayment amount.

Before accepting this type of loan, use a student loan payoff calculator to calculate interest rates and the potential accrued interest to have a better understanding of potential future payments.

Direct PLUS Loan

This type of federal loan is only available to graduate students or parents of undergraduates. The interest rate is higher than subsidized and unsubsidized federal loans, and a credit check is required.

Direct Consolidated Loan

For students with several federal loans, it’s possible to consolidate them into one account with one monthly payment with a Direct Consolidation Loan. There is no fee to apply for this kind of loan, but all accrued interest will be rolled into the total principal balance. This leads to faster-accruing interest for students who can pay only the monthly minimum.

While it’s certainly more convenient to consolidate multiple loans, consider the additional length of the loan and additional interest paid over time before committing.

Private Student Loan

It’s no secret that interest rates vary widely with private loans. That’s because private lenders will evaluate factors like an individual’s credit score and request student loan proof of income. There are also loan fees to consider, but not all lenders apply these.

Federal loans often have more protections for students, but they rarely cover all of the costs that come with a college education, which is why many students find themselves with a combination of federal and private loans. Though it’s worth mentioning that because private student loans lack the borrower protections afforded to federal student loans, they are generally considered an option only after all other sources of financing have been exhausted.

How Long Does It Take to Get Student Loans Disbursed?

Disbursement is a term that describes when a loan is actually paid out. Disbursement timelines may vary depending on whether the loan is a federal or private student loan.

Federal Student Loan Disbursement

To get a federal student loan, interested students must fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA®. Information provided on this form will be used to determine how much federal financial aid and what types a student will qualify for — including federal student loans.

Generally, FAFSA applications are completed quickly. Online applications can be reviewed in as little as three to five days. Federal student loans are generally disbursed directly to the school sometime between 10 and 30 days after classes start.

Private Student Loan Disbursement

The application for a private student loan will be conducted with the individual lender. Each lender will have its own policies for applications and approvals. Generally speaking, it may take between two and 10 weeks to process a private student loan.

Private student loans are also generally disbursed directly to your school. The disbursement date may be timed to the start of the school year, though, this may vary depending on when you apply for and are approved for a private student loan.

How Are Student Loans Disbursed?

Whether a student chooses to accept multiple federal loans, a private loan, or a combination of the two, the money is often distributed the same way. As briefly mentioned, the loan amount is sent directly to the attending school, where it is kept in the student’s account and then applied to covered costs, including tuition, fees, and room and board.

When there is leftover money in a student’s account, the excess is paid directly to the student to be used for additional expenses. These payouts tend to take place once per term and vary by school. If students receive leftover funding, they can use it as they see fit or even begin to pay back the loan early.

Keep in mind that all universities have their own policies on loans and disbursement. Questions about how a specific school handles student loans should be directed to the financial aid office.

Overage funds tend to be awarded to the holder of the loan. If a student’s parents hold a loan with overage, they’re more likely to receive the leftover money.

Also, disbursements may be held for 30 days after the first day of enrollment, especially if the student is a freshman and first-time borrower, according to the Federal Student Aid office.

Common Student Loan Disbursement Issues

It’s possible for issues to crop up that could impact your disbursement.

•   Missing application deadlines. Applying for a private student loan or filing the FAFSA too late could impact when your student loan is disbursed. To avoid any late disbursements, be sure to submit your FAFSA before state or school-specific deadlines.

•   Making mistakes on the application. If there are errors on the FAFSA or a private student loan application, this could impact your approval or potentially delay the disbursement date as you fix errors and re-submit the application.

•   Forgetting to complete entrance counseling for federal student loans. You must complete the entrance counseling required for federal student loans before they are disbursed. Be sure to read the terms of all loans closely and fill out all paperwork properly to ensure timely disbursement.

Final Tips

Student loans are often a necessary step in the college journey. The world of loans can be intimidating at first, but it’s not impossible to learn how to navigate the financial waters of postsecondary education. These final tips may help.

•   Compare all options. It’s better to have too many loan options and turn some down than face uncertainty about how to pay for everything.

•   Apply early to ensure that there’s time to make corrections if necessary. There are rules and requirements unique to all types of loans.

•   Avoid overborrowing. Try to calculate overall expenses and keep loan amounts as close as possible to the estimate. Being approved for a large loan doesn’t mean the total amount has to be accepted.

•   Get a part-time job, if necessary, to alleviate the stress that loan payments can add.

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

FAQ

Do student loans get deposited into your bank account?

Typically, student loans do not get deposited in your bank account. Instead, the loans are disbursed directly to the school where it is applied to tuition payments and room and board. If there is any money leftover after paying for tuition, the money will then be distributed to the student. These payouts tend to take place once per term and vary by school.

How long do student loans take to deposit?

After applying through the FAFSA, it may take up to 10 days to find out what types of aid — including student loans — you are eligible for. If approved for a federal student loan, this money will be disbursed directly to the school. Typically, this will happen within the first 30 days of the start of term.

What does disbursement mean?

Disbursement is when the loan amount is paid out to the borrower. In the case of student loans, the loan is typically disbursed directly to the student borrower’s school.

Can you use a student loan to pay a tuition bill that is past due?

Yes, you can use a private student loan to pay off an outstanding tuition balance. Each lender determines how far in the past a loan can be used to pay an overdue balance, but many will allow loans to cover past-due balances that are 6-12 months outstanding.

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.

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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Enrolling in veterinary school to earn a Doctor of Veterinary Medicine (DVM) degree means four years of additional coursework and clinical training beyond your undergraduate degree. The top options for paying for vet school involve accessing money you don’t have to pay back, such as scholarships, grants, and fellowships.

Many vet schools offer these types of awards based on academic achievement, financial need, clinical proficiency, leadership, and more. There are many other ways to pay for vet school in addition to these opportunities, such as through federal and private loans.

Read on to learn more ways on how to pay for vet school.

How Much Does Vet School Typically Cost?

In general, the cost of attendance (including tuition, fees and living expenses) for vet school can vary widely, though is often upwards of $200,000 over four years. The VIN Foundations offers a comparison tool that provides information on vet school costs across the U.S. The cost of vet school can vary based on a number of factors, including whether you choose to attend an in-state vet school or a private school.

Continue reading for strategies to help students pay for veterinary school.

1. Choose an Affordable School

Choosing an affordable school means taking a look at a wide variety of colleges and universities and comparing the costs. Consider all costs involved, including tuition, fees, and living expenses. It’s a good idea to look beyond the sticker price on each school’s website — you may not pay the full sticker price.

Meeting with the financial aid office at each school will give you an idea about the types of financial aid you could potentially receive in order to offset the sticker price. Once you have an idea of the costs as they pertain to you, then you can more accurately compare the costs of vet schools.

When developing your list, consider looking at the list of American Veterinary Medical Association (AVMA)-accredited schools in the United States. These schools have achieved the highest standards, commitment to quality, and continuous improvement for veterinary medical education.

Recommended: 11 Ways to Make College More Affordable

2. Scholarships

Scholarships are a form of financial aid that you don’t have to pay back. You can find scholarships from vet schools themselves as well as through independent sources.

Colleges and universities often offer scholarships to first year students, as well as currently enrolled students.

Each college and university has a different approach and criteria for awarding scholarships. Contact the financial aid office of the schools on your list to understand the eligibility factors and process that each school uses to award each scholarship. For example, first-year students at the Ohio State University receive scholarships during the admissions process for the first year, while second-, third-, and fourth-year veterinary students must fill out a separate scholarship application.

Outside scholarships may come from any source, including local veterinarian offices, kennel clubs, businesses, and professional organizations. For example, the AVMA-American Veterinary Medical Foundation (AMVF) offers scholarships for first- through third-year students.

Recommended: Scholarship Search Tool

3. Fellowships

Fellowships and externships for veterinary students usually occur during the summer and often involve research-based and specific career development opportunities. For example, Ohio State University lists a variety of summer-based internships and externships available for students.

In another example, the American Association of Veterinary Medical Colleges (AAVMC) and the Foundation for Food and Agricultural Research (FFAR) combined to create a three-month summer fellowship which focuses on food security on a global scale as well as sustainable animal production.

Various stipends are available for veterinary fellowships — it’s a matter of finding the right program to meet your goals.

4. Grants

If you receive grants, you typically do not have to pay them back. Grants for college are need-based awards, which means you’ll qualify for them based on the level of your financial need. Withdrawing from school or failing to maintain eligibility for the grant means you may have to refund part or all the grant.

You may qualify for grants from your state government, your college or career school, or a private, corporate, or nonprofit organization. Veterinary schools often offer research opportunities for those who demonstrate financial need.

In order to qualify for federal grants, and possibly institutional grants, you’ll need to file the Free Application for Federal Student Aid (FAFSA^®). The FAFSA allows students to apply for all forms of federal financial aid, including grants, scholarships, and federal student loans.

5. Federal Loans for Health Profession Students

Just like your decision of becoming a vet, making decisions about how to pay for school could last for years after you graduate — in the form of paying off vet school debt.
Loans must be repaid with interest, but there are a wide variety of loans available for veterinary students, including federal student loans.

Students can borrow up to $20,500 each year in Direct Unsubsidized Loans for veterinary school, up to a cumulative aggregate limit of $138,500. “Unsubsidized” means that the loan begins accruing interest immediately. The aggregate amount includes loans you received in student loans for undergrad.

As mentioned, you must file the FAFSA to qualify for federal loans for veterinary school.

The U.S. Department of Education isn’t the only government entity that offers loans. The Health Professional Student Loan (HPSL) is a need-based loan from the U.S. Department of Health and Human Services, which offers help paying for pharmacy school as well as dentistry, podiatry, optometry, and veterinary loans.

For veterinary program students who apply, these loans come with a 5% interest rate (compared to current Direct Unsubsidized Loans at 5.50% and PLUS loans at 8.05%). The Department of Health and Human Services will consider your parents’ information to award HPSL funds. Interest does not accrue as long as you are enrolled at least half-time and there’s a 12-month grace period available as well.

There are other types of federal loans available, as well. For example, the U.S. Department of Agriculture offers a Veterinary Medicine Loan Repayment Program (VMLRP) that offers up to $25,000 each year to veterinarians who agree to serve for three years in areas where a designated shortage of veterinarians occurs.

6. Graduate PLUS Loans

A Graduate PLUS Loan, also called a Direct PLUS loan, is also available to graduate or professional students enrolled at least half-time who do not have an adverse credit history and meet the general eligibility requirements for federal student aid.

The Graduate PLUS Loan, which can cover the full attendance for veterinary school (minus other aid received, such as scholarships, fellowships, grants, etc.) currently has a fixed interest rate of 8.05% for loans disbursed between July 1, 2023 and before July 1, 2024. Interest begins accruing as soon as your loan is disbursed.

Grad PLUS Loans are eligible for certain federal perks, such as deferment programs and the opportunity to apply for loan discharge through programs like Public Service Loan Forgiveness.

Recommended: Complete Guide to FAFSA

7. Private Student Loans

Private student loans, which are not offered by the federal government, usually come with a higher interest rate than federal student loans. However, they may have their place in paying for veterinary school, particularly if you need to fill in other gaps between scholarships, federal student loans, grants, and other types of financial aid. It’s a good idea to compare the interest rates, fees, repayment terms, discharge options, and in-school repayment options for various private student loan lenders.

You can apply for a private student loan on a private student loan lender website. You’ll provide certain personal information, as well as information about your vet school program, graduation date, and the loan amount you need. Requested personal information may include the following:

•   Social Security number

•   Proof of income

•   Identification, such as a driver’s license or other government-issued ID

•   Financial aid you expect to receive

You must also agree to the lender’s terms and conditions in order to receive the loan. Every student loan lender will have a slightly different process, so follow the steps for the student loan lender you choose.

Private student loans aren’t required to offer the same benefits or perks as federal student loans (things like income-driven repayment plans or Public Service Loan Forgiveness). For this reason, private student loans are generally considered an option after all other resources have been exhausted.

Recommended: How Private Student Loans Work

How Much Can Vets Make?

The 2023 median veterinarian pay was $119,100 per year, or $57.26 per hour. From 2022 to 2032, the profession is projected to grow 20%, much faster than average, according to the Bureau of Labor Statistics.

It’s a good idea to consider this figure but remember that you may not make that amount right after graduating from vet school — the amount reflected is the median pay of many practicing veterinarians.

The Takeaway

Paying for vet school requires some research. You’ll likely want to research the best “free money” opportunities at various veterinary schools, like grants and scholarships. Next, you can look into federal student loans.

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

FAQ

Can you get scholarships for vet school?

Yes, you can get scholarships for vet school, though they vary widely in the amounts you can receive. Scholarships can come from a number of sources, including the institution you attend, professional organizations, kennel clubs, veterinary practices, and even local businesses. You may need to do some research to learn more about the scholarship options available to you and the requirements for each scholarship. Each scholarship carries deadline dates, so carefully mark them on your calendar and turn the applications in well before deadlines.

Can FAFSA be used for vet school?

Yes, you can file the FAFSA for vet school. In fact, you must file the FAFSA if you want to qualify for federal student aid, which includes federal student loans, grants, and some institutional scholarships. One of the best ways to understand more about your eligibility for federal student loans involves talking to multiple financial aid offices of the vet schools on your list.

How much can veterinarians expect to make?

In 2023, the median veterinarian pay was $119,100 per year, which equates to $57.26 per hour. However, it’s worth noting that the median pay may not reflect the amount you may earn as soon as you graduate.

Photo credit: iStock/herraez

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.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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

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