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With the average annual cost of college now $36,435, figuring out how to pay for college as a low-income student can be daunting. It’s important to keep in mind, however, that students from low-income backgrounds often qualify for grants and scholarships (which you don’t have to pay back), as well as student loans.

Federal student loans are available to all college students, regardless of income, and don’t require a credit check. If you still have gaps in funding after tapping financial aid and federal loans, you may also be able to qualify for private student loans, even with a low income.

Read on to learn more about the financial aid options available to you if you qualify as a low-income student and how to apply for student loans.

What Are Student Loans?

Student loans are an often-used option to help pay for college. In fact, nearly 52% of students who complete their undergraduate programs take out federal loans at some point during their college years, according to the Education Data Initiative.

Student loans can be used to pay for tuition, room and board, and other fees, as well as other associated costs of college like books and rent.

Students can use either federal or private student loans to pay for college. Students who take out federal student loans borrow money from the government, through the U.S. Department of Education. Federal student loans typically offer low, fixed interest rates and other benefits, such as income-driven repayment plans and access to forgiveness programs.

Private student loans, by contrast, are available from banks, credit unions, and other private lenders. These lenders set their own interest rates and conditions for their student loans. To qualify for a private student loan, you need to fill out an application and disclose personal financial information, such as your income and credit score.

Since students typically don’t have well-established credit histories, many private student loans require a cosigner. A cosigner is someone who agrees to pay back the loan if the primary borrower is unable to do so. Because private student loans don’t offer the same borrower protections that come with federal student loans, you generally only want to consider them after you’ve depleted all of your federal student aid options.


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

Can You Get Student Loans With a Low Income?

Yes, you can get student loans if you have a low income. If you can’t cover the full cost of college with scholarships and grants, student loans can help you take care of the remaining costs of college.

You can access federal student loans no matter your income level, but you do need to meet specific qualifications. You must:

•   Have a high school diploma or a recognized equivalency, such as a GED, or have completed a state-approved home-school high school education.

•   Be a U.S. citizen or an eligible noncitizen

•   Have a valid Social Security Number

•   Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program

•   Maintain satisfactory academic progress in college

You may also be able to qualify for some private student loans if you have a low income (more on that below).

Recommended: Finding Free Money for College

Low-Income Financial Aid Options

Students and their families pay for college in a variety of ways, including savings, scholarships, grants, work-study, and student loans. Indeed, paying for college often looks like a puzzle — all the pieces fit together in different ways to make everything “fit.”

Here’s a look at how to access low-income student aid options.

FAFSA

Every student (whether they’re low-income students or not) can file the Free Application for Federal Student Aid (FAFSA). The FAFSA is the free form you can fill out to apply for financial aid for undergraduate or graduate school, and is one of the most important steps students and their families can take to pay for college.

In conjunction with the school you plan to attend, the FAFSA determines your eligibility for need-based and non-need-based financial aid. The FAFSA results determine the amounts you receive for federal grants, scholarships, work-study, and/or federal student loans. In addition to subsidized federal student loan (which are need-based) and unsubsidized federal student loans (which are not need-based), there are two other types of federal aid low-income students may qualify for based on the FAFSA:

•   Federal grants Students who demonstrate financial need may qualify for federal grants, which you do not need to pay back. Some examples of federal grants include Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Iraq and Afghanistan Service Grants, and Teacher Education Assistance for College and Higher Education (TEACH) Grants. Each grant has its own eligibility requirements. Some, like the TEACH Grant, even have requirements you must fulfill after you attend school. Look at each grant’s eligibility requirements to determine whether you qualify.

•   Work-study Colleges and universities offer part-time work-study opportunities through the Federal Work-Study program. Graduate and undergraduate students who demonstrate financial need can get it whether they are part- or full-time students, as long as your school participates in the Federal Work-Study Program.

How Do You File the FAFSA?

Typically, the FAFSA becomes available on October 1 for the following academic year. The 2025-2026 academic year, however, is an exception. Due to upcoming changes to the FAFSA (and some adjustments to how student aid will be calculated), the application will be available some time in December 2023.

Since some aid is distributed on a first-come, first-served basis, it’s a good idea to complete the FAFSA as soon after its release as possible. Here’s how:

1.    Create your Federal Student Aid ID, also called an FSA ID. You can do this in advance of getting your materials ready and filing the FAFSA.

2.    Make a list of schools you’d like to attend. You can add up to 20 schools on the 2025-2026 FAFSA.

3.    Gather financial documents you’ll need. You’ll need information for both yourself and your parents, such as your Social Security numbers, Alien Registration numbers (if you’re not a U.S. citizen), most recent federal income tax return, W-2s, details of any untaxed income you’ve received, current bank statements, records of any investments you have.

4.    Complete the FAFSA. Using your FSA ID, log in to the website, read the directions, and submit your information.

5.    Review your FAFSA Submission Summary to make sure your information looks correct. The FAFSA Submission Summary, formerly known as the Student Aid Report (SAR), is a document that summarizes the information you provided when filling out the FAFSA. It includes your Student Aid Index (SAI), previously called Expected Family Contribution (EFC). Colleges and universities receive your SAI to determine your eligibility for federal and nonfederal student aid.

Federal Pell Grant

Your SAI will determine your eligibility for a Federal Pell Grant, so you have to file the FAFSA in order to qualify.

Undergraduate students who qualify for a Federal Pell Grant must show exceptional financial need. These grants are usually reserved only for undergraduate students, though some students enrolled in a post-baccalaureate teacher certification program might qualify.

How much can you receive from a Pell Grant? The amount varies, depending on your SAI, the cost of attendance of your school, whether you are a part-time or full-time student, and whether you will attend for a full academic year or not. The maximum Pell Grant award for the 2023-2024 academic year is $7,395. (The amount for 2025-2026 has not been announced yet.)

Scholarships for Low-Income Students

Colleges and universities may offer need-based scholarships. The money is yours to use for education — you do not need to pay it back. The results of the FAFSA help colleges and universities determine your eligibility for need-based scholarships and scholarships for low-income students.

You can also find need-based scholarships through employers, individuals, private companies, nonprofit organizations, religious groups, and professional and/or social organizations. There are a number of online scholarship search tools that can help you find scholarships you might qualify for.

Student Loans for Low-Income Families

As mentioned above, you can tap into either federal or private student loans for low-income students. Here’s a closer look at both.

Federal Student Loans

Based on the results of the FAFSA, you may qualify for a few types of federal student loans. Subsidized federal loans are need-based, while unsubsidized federal student loans are available to all students regardless of income or financial need.

Here’s a quick overview of three main types of federal loans:

•   Direct Unsubsidized Loans can go to undergraduate, graduate, and professional students. They are not need-based but you are responsible for paying all interest, which begins accruing as soon as the loan is dispersed.

•   Direct Subsidized Loans are for undergraduate students who demonstrate financial need. The government pays the interest on these loans while you’re in school, during any deferment, and during the six-month grace period after you graduate.

•   Direct Plus Loans are available for graduate or professional students or parents of undergraduate students and are not need-based or subsidized. Borrowers must undergo a credit check to look for adverse events, but eligibility does not depend on your credit scores.

Private Student Loans

Federal student loans don’t fully cover the cost of attendance for many students, and some students may consider tapping into private student loans as well.

Private lenders set their own requirements, however, and some students may find it challenging to qualify for a private loan if they have:

•   Little to no income

•   A negative credit history

•   A bankruptcy on file

•   A low credit score

How do you get around these issues? You may need to get a job while in school to prove you have some income. You may also want to work on building your credit before you apply for a private student loan. While you may be able to qualify with low income and low credit, you may make up for it by paying more in interest.

Another way to qualify for a private student loan with a low income and/or poor (or limited) credit is to apply with a cosigner. A student loan cosigner is a creditworthy adult who signs for a loan along with you. It’s a legally binding agreement stating that they’re willing to share the responsibility of repaying the loan on time and in full. Many borrowers turn to a family member for cosigning.

Recommended: Income Based Student Loan Repayment

How to Apply for Student Loans

How to apply for student loans will differ depending on whether you are interested in federal or private student loans.

To apply for federal student loans, the first step is to fill out the FAFSA. Once you’ve filed the FAFSA, you basically sit back and wait to see what the school you’re planning to attend will offer you in federal aid, which may include a mix of grants, scholarships, and federal student loans. Your school will tell you how to accept all or a part of the loan.

Before you receive your loan funds, you will be required to complete entrance counseling, a tool to ensure you understand your obligation to repay the loan, and also sign a Master Promissory Note, agreeing to the terms of the loan.

Applying for private student loans involves directly going to a lender website or simply talking to your college or university’s financial aid office. Many institutions put together what they call “preferred lenders.”

Even if your school makes it easy for you to apply for a private student loan, it’s a good idea to do your research outside of the preferred lender list to find low interest rates and compare interest rate types (fixed or variable), repayment schedules, and fees. You want to find the terms and conditions that best fit your needs.

As you are researching private student loans, you’ll want to make sure that you (or your cosigner) meets the requirements to qualify for the loan.


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

The Takeaway

Even if you’re a low-income student, you can access student loans. To find out what federal student loans you are eligible for, you’ll need to fill out the FAFSA. As a low-income student, you may qualify for subsidized federal student loans, which won’t accrue any interest while you’re in school and for six months after you graduate. This makes them more affordable than unsubsidized federal student loans and private student loans.

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

FAQ

What qualifies as a low-income student?

The U.S. Department of Education defines a low-income student as an individual whose family’s taxable income for the preceding year did not exceed 150% of the poverty income level established by the Census Bureau. For example, a student from a family of four living in the contiguous U.S. with a household income of $45,000 or less is considered low-income.

Do low-income students get free college?

Some low-income students are able to go to college for free through financial aid or merit scholarships. But even without a full ride, low income students can often pay for college through a combination of scholarships, grants, and loans.

Does FAFSA help low-income students?

Yes. Filling out the Free Application for Federal Student Aid, better known as the FAFSA, gives low-income students access to financial aid, including grants, scholarships, work-study programs, and federal student loans.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/Souda

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.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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.

SOIS1023018

Students who are looking for LGBTQ+ scholarships can find a wide range of options. Scholarships are considered gift aid, which means they don’t need to be repaid.

LGBTQ+ scholarships are offered by schools, organizations, cities, and states. There are also national scholarships available.

Read on to learn about scholarships for LGBTQ+ students, plus tips for applying for these awards that may help boost your chances of success.

Overview of LGBTQ+ Scholarships

Scholarships for LGBTQ+ students are essentially free money. Because scholarships do not have to be repaid, they can be an ideal way to make college more affordable and avoid student loan debt.

There are many different types of scholarships for LGBTQ+ students. For example, there are national scholarships as well as awards funded at the state and local level (in specific counties, cities, and municipalities), and at certain colleges and universities.

While some LGBTQ+ scholarships are based on academic achievement, it’s possible to find non-academic scholarships as well. Cast a wide net to see what’s available.

One good way to track down LGBTQ+ college scholarships is to use scholarship search tools and search engines like Campus Pride, Fastweb, Unigo, and the Human Rights Campaign.

National LGBTQ+ Scholarships

National LGBTQ+ scholarships are open to eligible students across the U.S. Here are some of the available options to explore

•   Aritzia scholarship: Established by fashion brand Aritzia, the Aritzia scholarship offers four one-time scholarships. Students must identify as lesbian, gay, bisexual, transgender, queer, intersex, asexual, or two-spirit, and be currently enrolled in an undergraduate or graduate program at a school in the U.S. They must also plan to work in, or show a strong commitment to, the fields of fashion design, retail management, mental health, or social justice advocacy.

Amount: $5,000

•   Traub-Dicker Rainbow scholarship: This one-year scholarship is for lesbians pursuing higher education. Eligible students can be graduating from high school or in any year of college, including graduate school. Applicants may qualify based on their academic achievement, community involvement, leadership, or commitment to LGBTQ+ issues.

Amount: $4,000

•   Point Foundation Flagship scholarship: Offered by the Point Foundation, the largest LGBTQ scholarship nonprofit organization, the Flagship scholarship is for lesbian, gay, bisexual, transgender, and queer students who are enrolled (or planning to enroll) at an accredited college or university in the U.S. To qualify, a student must be in a bachelor’s, master’s, or doctoral program, or in a professional degree program (such as medicine or law).

Amount: Based on need. The scholarship may be renewed for up to four years.

•   Point Foundation Community College scholarship: This scholarship is for LGBTQ+ community college students in the U.S. who are studying for an associate degree or are planning to transfer to a four-year college or university. They must have one to two years of community college left and be enrolled at least half-time.

Amount: $2,400 per semester or $4,800 per academic year

•   Point Foundation BIPOC scholarship: Students who identify as Black, indigenous, or a person of color, and LGBTQ, and are enrolled (or intending to enroll) in a postsecondary institution in the U.S. are eligible for this scholarship. To qualify, applicants must intend to pursue an associate, bachelor’s, master’s, doctoral, or professional degree.

Amount: Up to $1,500

Top 10 State-Specific LGBTQ+ Scholarships

In addition to national scholarships, there are a number of state-specific LGBTQ+ college scholarships students can also apply for.

LGBTQ+ Scholarships by State

The following states offer LGBTQ+ scholarships. If your state isn’t on the list, do some research to see if you can find applicable scholarships in your region to help with the cost of college. Other options to help cover the expense include grants, financial aid, and federal and private student loans.

1.    California: The Markowski-Leach Scholarships are for undergraduate or graduate LGBTQ+ students who are working to achieve a significant positive goal in academics, employment, committee work, or volunteering. Applicants must attend San Francisco State University; Stanford; the University of California, Berkeley; UC College of the Law, San Francisco; or the University of California, San Francisco; be enrolled in a full-time program leading to a degree or teaching credential, and earn at least a 2.5 GPA.

Award: $2,500 for up to two years of eligibility

2.    Colorado: The PFLAG Denver Scholarship Program offers scholarships to LGBTQIA+ students who demonstrate advocacy and a drive to build a more just and inclusive world.

Award: $2,500

3.    Florida: The Tampa Pride Foundation Scholarships are for LGBTQ+ students in Hillsborough, Pinellas, Polk, and Pasco counties that demonstrate financial need. Students must be U.S. citizens age 26 or younger who have completed high school or a GED. Preference is given to those who have overcome discrimination or marginalization, demonstrate leadership qualities, and have a strong academic performance.

Award: Up to $1,500

4.    Illinois: The Acorn Equality Fund provides scholarships to LGBTQ+ students who live in downstate Illinois (except for Cook, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will counties) and attend an accredited post-secondary educational institution. Scholarships are awarded in six categories.

Award: $1,000 to $4,000

5.    Kentucky: Frontrunners Lexington offers two scholarships for LGBTQ+ seniors in public or private high schools planning to attend trade school, community college, or a four-year college or university. Students must reside in Anderson, Bath, Bourbon, Clark, Fayette, Franklin, Garrad, Harrison, Jessamine, Madison, Mercer, Montgomery, Powell, Scott, or Woodford counties.

Award: $2,500

6.    Missouri: Missourians can tap into a variety of scholarship opportunities through the Missouri Courage Scholarship, including the Missouri Courage Award, Rural Courage Award, Trans Courage Award, Fortier Courage Award, and Pay it Forward Award.

Award: $500 to $2,000

7.    New York: The Little Bird Scholarship for LGBTQ+ Immigrants offers financial help to refugees and individuals who are seeking or have been granted asylum. Applicants must be undocumented and enrolled at an accredited, nonprofit school in New York City. They must also be rising juniors or seniors.

Award: $18,000 for up to two years of school

8.    North Carolina: The Carter Stroupe Memorial Scholarship offers qualifying LGBTQ+ students and LGBTQ+-allied students scholarships for educational expenses. Students must exhibit courage and leadership in their schools and communities and reside in Guilford, Rockingham, Randolph, or Alamance County. Eligible applicants must also demonstrate service in the LGBTQ+ community or a desire to serve.

Award: Up to $2,000

9.    Upper Midwest: To qualify for the PFund Scholarship, applicants must be 17 or older, from the upper Midwest (Minnesota, Iowa, Wisconsin, North Dakota, or South Dakota), and enrolled in or admitted to a GED program, community college, four-year college or university, graduate school, trade school, professional certificate program, or apprenticeship program.

Award: $1,000 to $12,000

10.    Washington: Washington state residents can apply for the GSBA Scholarship and Education Fund. Applicants must identify as LGBTQ+, as a member of a LGBTQ+ family, or as a cisgender/straight ally who has demonstrated active support of the community. They should be enrolled at a community college, four-year public institution, or vocational/technical/trade school.

Award: $3,000 to $7,500

Tips for Applying for LGBTQ+ Scholarships

Once you’ve found LGBTQ+ scholarships you’d like to apply for, follow these five steps to make your application as strong as possible.

•   Review the requirements and directions. Make sure you meet all the scholarship’s eligibility requirements; find out what paperwork is needed, such as school transcripts; and double check the application deadline.

•   Ace the essay: If the scholarship application involves an essay component, be sure to highlight your achievements and accomplishments — this isn’t the time to be modest. Explain the impact you hope to make through your education, and how the scholarship would help you achieve your goals. This scholarship essay guide may be helpful as you’re putting your essay together.

•   Check your work. Proofread your entire application carefully. Look for any errors or typos. Make any necessary edits or tweaks to your essay.

•   Ask for letters of recommendation right away. If recommendations are required, reach out to a teacher or employer who can attest to the quality of your work and other achievements. Give them plenty of time to write the letter. You don’t want them to feel rushed.

•   Be prompt. Submit your application before the deadline.

The Takeaway

There are a wide range of scholarship opportunities for LGBTQ+ students that can help make college more affordable. Use scholarship search tools to look for state, local, and national scholarships. Because you don’t have to repay them, scholarships are a smart way to help reduce your education costs.

Another option to potentially help with student debt is to refinance your student loans. With refinancing, you replace your existing loans with a new loan with a private lender. You may be able to get a lower interest rate and better terms if you qualify for them. Just keep in mind that when you refinance federal student loans, you lose access to federal programs and protections like deferment and income-driven repayment.

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

FAQ

How can I find LGBTQ+ friendly colleges?

One way to find LGBTQ+-friendly colleges is to use an online tool like the Campus Pride Index. It allows you to search a database of hundreds of colleges and universities across the U.S. that have worked to improve the academic experience and campus life for LGBTQ+ students. You can search for LBGTQ+-friendly colleges by region, state, and institution type.

What documents are required for LGBTQ+ scholarships?

Each LGBTQ+ scholarship has specific requirements. You may be asked to demonstrate financial need, send in school transcripts, and submit letters of recommendation, for instance. Read over each scholarship’s requirements and gather together all the materials you need before you apply.

How do LGBTQ+ guidelines differ from academic scholarships?

Some LGBTQ+ scholarships may be non-academic, which means you aren’t required to have a certain GPA to qualify. Other LGBTQ+ scholarships may have an academic component you’ll need to meet. Each scholarship for LGBTQ+ students is different. Review the requirements carefully so you understand exactly what’s needed for every scholarship you apply for.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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