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Navigating the cost of law school can be daunting, but scholarships offer a valuable way to reduce financial burdens and make your legal education more affordable. Whether you’re a prospective law student or currently enrolled, understanding the variety of scholarships available is crucial to securing funding for your studies.

Keep reading to learn the types of law school scholarships available, tips for finding law school scholarships, and strategies for crafting compelling applications to increase your chances of success.

The Average Cost of Law School

The Law School Admission Council (LSAC) reports that the average annual cost of a public, out-of-state law school in 2023 was $43,590, or $30,554 for in-state students. For private law schools, the average in 2023 was $55,963. And according to Education Data Initiative, the average total cost of law school is over $230,000.

Because students aren’t yet racking up those billable attorney hours, it can be helpful to research law school scholarship opportunities before applying.

Types of Law School Scholarships

Per the numbers mentioned above, there might be a fair amount of sticker shock for those who haven’t yet applied for graduate school and are only thinking of someday going the lawyer route. Fortunately, there are a range of options for aspiring attorneys seeking to fund law school.

Full-Ride Tuition Law School Scholarships

In some cases, there are full-ride tuition scholarships and need-based grants out there. Full-rides, of course, are not available at all law schools. If a law school doesn’t explicitly advertise or highlight information regarding full-ride opportunities, interested students can contact the school to ask.

Students deciding whether to apply to law school may want to familiarize themselves with the language universities adopt to explain these scholarships. In some cases, specific scholarships are designated for particular students. Full-ride law school scholarships can be highly competitive — with some schools offering as few as two to four per enrollment year. One potential tip for the search for scholarships is to target law schools with more tuition help.

General Law School Scholarships

There are many options for law school hopefuls to find potential scholarships. The nonprofit organization Law School Admission Council (LSAC) has compiled a list of law school scholarships available to applicants. It could be well worth your time to go through the list and make note of the scholarships you’d qualify for.

Many law schools themselves offer competitive scholarships to attract stronger candidates, as well. It might also be helpful to check if a school also offers in-state residents specific tuition reductions or grants.

Law School Scholarships from Law Firms

Similarly, some law firms offer scholarships to law school students. Applying is typically a straightforward process, with many firms requiring a short essay, transcripts, and sometimes references to be considered. One such law firm scholarship is offered by The Dominguez Firm, which offers $5,000 and $2,500 annually to selected student applicants.

On top of this, there’s the rising trend of law firms helping new hires to repay a portion of their student debt once onboarded.

Diversity Law School Scholarships

Some scholarships are awarded to students with diverse backgrounds. One example of this is the Legal Opportunity Scholarship Fund offered by the American Bar Association. This scholarship is awarded to law students from a racial or ethnically diverse background.

The USLAW NETWORK Foundation also offers a $5,000 scholarship for up to 10 diverse students.

Law School Scholarships for Women

Some scholarships are offered to women attending law school. One resource is the American Association of University Women (AAUW) Fellowships and Grants, which offers scholarships to women in graduate studies, including law.

Finding Scholarships for Law School

There are dedicated resources like Fastweb and SoFi’s scholarship search tool to help prospective students find scholarships for which they may qualify. Fastweb is an online resource to help students find scholarships, financial aid, and even part-time jobs in support of college degrees.

The American Bar Association’s law student division also has a running list (along with deadlines) of law student awards and scholarships. Additionally, the Law School Admission Council offers a list of diversity scholarships available to students from diverse racial and ethnic backgrounds.

Recommended: Applying to Graduate School: Smart Tips & Strategies 

Negotiating Wiggle Room

Doing all this research and the math around law school scholarships could put applicants in a more informed position when evaluating which program to attend — and, potentially, help them to identify schools more likely to be interested in their application.

A reality of today’s admissions process for law school is negotiating scholarships. Some schools have a strict policy against negotiating, but others fully expect their initial offer to be countered. That’s why it can help to save acceptance letters and anything in writing from schools that offer admission.

Suggestions for Negotiating Law School Scholarship Offers

Offer letters could be shared with competing schools, asking if they’re able to match another university’s aid. It might be uncomfortable asking for more tuition assistance upfront, but a little discomfort now could help applicants shoulder less law school debt later on.

Doing research on law schools (and figuring out the likely cost of living expenses at each institution) could help applicants to determine which scores or grades to aim for in an effort to make law school more affordable for them. Tabulating expenses (and having records on hand) may also demonstrate to universities that the amounts being negotiated are based on well-documented expenses.

Recommended: Law School Loan Forgiveness and Repayment Options

Federal vs Private Loans for Law School

Students wanting to apply to law school should consider the differences between federal and private student loans. Federal loans come with certain benefits not guaranteed by private ones (such as forbearance or income-driven repayment), and should be used first before seeking private student loans.

Private student loans can also help applicants cover the expense of graduate school. They typically offer competitive rates and terms, but you need to have a solid credit score to qualify.

It’s important to note that private student loans don’t offer the same benefits and protections afforded to federal student loan borrowers, like Public Service Loan Forgiveness (PSLF). If a law school applicant is interested eventually in becoming a public defender or pursuing non-profit legal work, forgiveness and forbearance perks may play a role in their decision.

The Takeaway

Students looking to offset law school costs with scholarships can look to their law school, scholarship databases, local law firms, and other organizations for resources. Consider contacting the financial aid office at your law school if you are looking for scholarship resources. If students interested in law school find themselves coming up short on funds for the JD after scholarships and federal aid, additional options may be available.

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 LSAT score will get me a scholarship?

One general rule of thumb is that students who have a LSAT score (and sometimes GPA) above the median for a certain school could qualify for a scholarship. Chances of qualifying are even greater if your score falls in the 75th percentile for the school.

What is a good scholarship for law school?

Any scholarship for law school is a good scholarship. Scholarships typically don’t need to be repaid and can help reduce a student’s debt burden. Students looking for law school scholarships can apply for institutional aid and aid through other sources like nonprofit organizations.

Do top law schools give scholarships?

While some top law schools do not offer scholarships, many law schools do offer law school scholarships to students. For example, in the 2023-2024 class at Yale, 71% of students qualified for some form of financial aid and 62% qualified for an institutional law school scholarship. Check directly with the schools you are interested in to see if they offer scholarships to students.

Photo credit: iStock/artisteer
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.

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 .

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One way a college student can fund their education is by getting a scholarship, which is gifted money that doesn’t have to be paid back. A scholarship can be awarded to a student for a number of reasons, including having a special talent, academic or athletic merit, community involvement, financial need, or a combination of any of these factors.

College scholarships aren’t just for high school grads who are trying to find financial awards to pay for school. Students who are already enrolled in college and in the process of earning their degree can also apply. Although there are certain time periods where scholarship deadlines are more prevalent, there are still plenty of scholarships current college students can apply for year-round.

Keep reading to learn about the different types of scholarships for college students, how to find them, and application tips to consider to increase your chances of being selected.

Eligibility Requirements

While college scholarship requirements can vary, there are some common eligibility qualifications that most will require. For instance, every scholarship application will want your basic information, such as your name, address, email, phone number, and what college you’re currently attending.

Sometimes a scholarship will only ask for basic information, but others will require more. You may be asked to give your GPA, submit an essay, or provide letters of recommendation. Scholarships that are based on financial need may call for the student or their parents to provide financial information, such as income or assets.

How to Find Scholarships for Current College Students

According to the Education Data Initiative, more than 1.7 million scholarships are awarded in the U.S. each year. With so many opportunities, it can be difficult to know where to start looking.

One easy way to dive in is by using SoFi’s scholarship search tool, where you can scout out thousands of scholarships, grants, fellowships, and other awarded aid. The tool enables you to use keywords to search and filters to see only awards according to type, level of study, residency, and more.

SoFi also has a $2,500 scholarship sweepstakes you can enter every single month just by registering with SoFi.

Another way to find out about getting free money for college is by visiting your college’s financial aid office and consulting with your academic advisor or head of the department for your particular major.

You may also be able to apply for a scholarship if you or a parent work for an employer who offers scholarship awards. For instance, if you’re a college student employed at McDonald’s, Starbucks, T-Mobile, Walmart, or Taco Bell, you may be eligible to apply for their scholarship opportunities.

Large employers, such as Wells Fargo, CVS, American Airlines, and PepsiCo, offer the opportunity for an employee’s dependent to apply for that company’s college scholarship. College students with a parent who is an active, retired, or deceased military member are also eligible to apply for a scholarship program, according to the U.S. Department of Veterans Affairs.

Recommended: The Differences Between Grants, Scholarships, and Loans

Scholarships for Current College Students

As mentioned previously, there are a multitude of scholarships to apply for while in college, including those that are based on merit, financial need, and even those geared toward certain cultural heritage or minority populations.

Depending on the scholarship provider, there may be strict terms and conditions on how the money is spent, such as dictating the money go toward tuition, room and board, books, and other college-related expenses. Others may give you more leeway, and some may even allow you to use the funds to pay off student loans.

Here’s a list of some of entities that offer scholarships for current college students to consider:

Federal or State Government Scholarships and Grants

Scholarships and grants, which are usually based on need and awarded according to the student’s financial situation, are available through the U.S. government and through the individual states.

Through the federal government, college students can apply for a Pell Grant, a Federal Supplemental Educational Opportunity Grant (FSEOG), or a TEACH Grant for those students who want to be teachers. With a TEACH Grant, you can get up to $4,000 a year, but you must commit to teaching a highly needed subject in a low-income area elementary or secondary school, where there’s a shortage of specific subject teachers.

To find out what your individual state offers scholarship-wise, you can check with your state’s education agency. The National Association of Student Financial Aid Administrators offers links to each state’s education department, which you can access by clicking the state on their map.

It’s important to know that in order to be considered for a federal or state scholarship or grant, you’ll need to fill out a Free Application for Federal Student Aid (FAFSA) form. This form needs to be submitted every year since eligibility for financial aid doesn’t carry over to the next school year.

Recommended: Pell Grant Eligibility: What Are the Income Limits?

Financial Institutions

Sallie Mae, a bank and education solutions company, offers many scholarship opportunities, including their easy to apply for $2,000 award. Other financial institutions, including Discover, U.S. Bank, Charles Schwab, and Morgan Stanley, also have scholarships for students currently enrolled in college.

Your College

Your school may offer their own scholarships or grants. These prizes may be funded by private individuals, foundations, organizations, or even via the federal or state government. As mentioned earlier, checking with your school’s financial aid office or talking to the department head of your field of study can help steer you toward eligible awards.

Clubs or Organizations

Many national organizations, such as the Elks National Foundation, Rotary International, and the NAACP, offer scholarships to college students. The good news is you may not have to be a member of a club or organization to qualify.

Diversity and Identity-Geared Groups or Agencies

There are a multitude of scholarships for college students with specific social identities. Based on your cultural heritage, ethnicity, race, or religious affiliation, you can find financial awards specifically for these populations. There are also scholarships for women and for individuals who are a part of the LGBTQ+ community.

Recommended: A Guide to Unclaimed Scholarships

Types of Scholarships Available for Current College Students

There are two principal categories of scholarships: need-based and merit-based scholarships. The two aren’t exclusive, though. You may find a scholarship that’s both need- and merit-based.

Here’s the key differences between the two:

Need-Based Scholarships

These scholarships are based on a student’s financial need rather than any specific achievements. Need-based scholarships allow someone who may not have had the funds otherwise to attend college.

Since these financial awards are based on a student’s financial situation, the application process is pretty straightforward, typically only requiring a student or their parents’ income information.

Merit-Based Scholarships

A merit-based scholarship is one given to a student based on their achievements, which can be academic, artistic, athletic, or related to leadership or a special interest. Unlike a need-based scholarship, a merit-based scholarship rewards a college student’s accomplishments over financial need.

Applications for merit-based scholarships tend to be more involved, asking for essays, letters of recommendation, possibly an interview, and wanting to see if you have a certain GPA.

Tips to Help When You’re Applying for Scholarships

Read on for some strategies to increase your chances of landing a scholarship while already in college:

Create a List of What Makes You Unique

Take stock of your particular background, skills, hobbies, and personal experiences and see what college scholarships might be tailored for you. For example, if you speak another language, play an instrument, are a first-generation college student, or have overcome a difficult life challenge, there’s a scholarship out there for you.

Cast a Wide Net During Your Search

Since there aren’t any limits on how many scholarships you can apply for and receive, look for those offering both large and small amounts of money. It all adds up.

Read the Fine Print

Review the scholarship eligibility qualifications carefully; otherwise you may be applying for one that you’re not able to receive. Double-check the deadline date, too, and mark it on your calendar so you can keep track.

Start the Application Process Early

Factor in how much time you’ll need to complete certain requirements, such as gathering letters of recommendation and writing an essay.

Seek Out Scholarship Workshops

In-person or online scholarship workshop seminars can help walk you through the process and give you tips on how to stand out in your application. Check to see if a workshop is available at your school.

The Takeaway

College scholarships aren’t only for high school seniors applying to college. If you’re already a college student, there are myriad scholarships out there and there’s no definitive limit on how many you can pursue or the amount of money you can receive. Once you’ve applied all of your scholarships to your cost of attendance, you can pay your remaining college expenses with cash savings, grants, and 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

How often should I apply for scholarships in college?

You should apply for scholarships as often as possible and for as many as you can. Doing so can only increase your chances of winning. And don’t discount scholarships offering smaller amounts of money: When it comes to paying for college, every little bit helps.

Can I receive scholarships and federal aid at the same time?

Yes, you can. However, it’s important to realize the monetary amount of your scholarship and federal aid can’t total more than your cost of attendance at your college or university. If you are rewarded with a scholarship and your aid exceeds the cost of attendance, you’ll need to notify your school’s financial aid office. They will have to recalculate the financial aid package, which can lower the amount of your financial aid.

Do scholarships for current students consider GPA?

It’s up to the scholarship provider to set the criteria for eligibility, and some may not even ask for your GPA. In general, though, a 3.0 GPA or higher will give you a leg up when it comes to qualifying for many scholarships.

Photo credit: iStock/Goodboy Picture Company

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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Scholarships are a form of financial aid that doesn’t have to be repaid in most cases. There are many scholarships and other forms of financial assistance available to help Native American students pay for college.

This guide provides a sample list of Native American college scholarships, an overview of common eligibility requirements, and tips for applying.

Eligibility Requirements

Before applying to scholarships, check that you meet the eligibility requirements. Scholarships have unique award criteria, so it’s important to review and verify whether you meet all of them.

That being said, some common factors that can impact qualifying for a scholarship include where you live, field of study, grade point average (GPA), financial need, leadership experience, and degree type.

Recommended: 10 Most Common Types of Scholarships for College

How to Find Native American Scholarships

Scholarships for higher education may be offered by academic institutions, employers, charitable foundations, and state, local, or tribal governments.

Finding scholarships for Native American students starts with completing the Free Application for Federal Student Aid (FAFSA) to determine financial need. It’s common for scholarship programs to use the FAFSA to determine eligibility for need-based awards.

After filling out the FAFSA, there are online resources to help search for scholarships. The Department of Labor maintains a scholarship database, known as CareerOneStop. Additionally, the National Indian Education Association keeps a list of scholarships for Native Americans to pursue higher education.

SoFi’s scholarship finder is another resource to find free money to help pay for an undergraduate, graduate, or professional degree. Users can filter by residency, field of study, ethnicity, and other criteria to narrow their search.

Scholarships for Native American Students

Though Native American students account for just 1% of undergraduate enrollment in the U.S., there are numerous Native American scholarships offered by tribal governments, non-profits, private companies, and other entities.

For a chance to win SoFi’s monthly $2,500 Scholarship Sweepstakes, you’ll just need to submit your name, email address, and school.

Browse the college scholarships for Native American students below to see what additional opportunities you qualify for.

•   American Indian Education Fund Scholarships: Awards for Native American, Alaska Native, and Native Hawaiian students pursuing undergraduate and graduate degrees.

•   American Indian Services Scholarship: Awards for undergraduate students who are enrolled members of a federally recognized American Indian or Alaska Native tribe.

•   Catching the Dream Scholarship: Awards for Native American and Alaska Native students to study business administration, economic development, and related subjects.

•   Cherokee Nation Higher Education Scholarships: Multiple scholarships for registered Cherokee citizens pursuing an associate, bachelor’s, or graduate degree.

•   Consuelo W. Gosnell Memorial Scholarship: Awards for master’s degree candidates in social work who have demonstrated a commitment to working with American Indian, Alaska Native, and Hispanic/Latino populations.

•   Continental Society Daughters of Indian Wars Scholarship: Awards for undergraduate Native American students who are enrolled tribal members and plan to work in education or social services with a tribe or nation.

•   DAR American Indian Scholarship: Awards for Native American students enrolled in an undergraduate or graduate program, with preference given to undergrad students.

•   EDSA Diversity Scholarships: Awards for Native American and minority students to continue studying landscape architecture, either at graduate school or in the final two years of an undergraduate program.

•   Full Circle and Tribal College Scholarships: Awards for Native American and Alaska Native students seeking technical, undergraduate, and graduate degrees at tribal colleges or accredited non-profit schools.

•   The Gates Scholarship: Highly-competitive, merit- and need-based awards for minority high school seniors from low-income backgrounds.

•   Hopi Tribe Grants and Scholarships Program: Multiple awards for enrolled members of the Hopi Tribe to pursue post-secondary and professional degrees.

•   Minority Undergraduate Retention Grant: Financial assistance to Native American and other minority students enrolled at a college in Wisconsin.

•   NACME Scholarships: Awards for Native American, African American, and Hispanic-American students enrolled in an undergraduate engineering or computer science program.

•   Native American Scholarship Program: Merit-based awards for Native American college students with proof of tribal registration.

•   Native Forward Scholars Fund: Scholarships and support services for Native American students pursuing undergraduate, graduate, and professional degrees.

•   NativeVision Scholarship: Scholarships for Native American students to help fund their first year of college.

•   Truman D. Picard Scholarship: Awards for Native American and Native Alaskan students pursuing careers in natural resources.

•   Udall Undergraduate Scholarship: Awards for college sophomores and juniors who demonstrate a commitment to issues related to Tribal policy, the environment, or healthcare.

•   USET Scholarship Fund: One-time award for Native American college students who are members of United South and Eastern tribes.

•   Wells Fargo American Indian Scholarship: Awards for enrolled members of a U.S. federally recognized American Indian or Alaska Native tribe pursuing a degree in gaming, tourism, financial, or hospitality industries.

Recommended: How to Apply for Student Loans

Types of Scholarships Available for Native Americans

Most students use multiple funding sources to pay for college. There are multiple types of scholarships for Native Americans to look into, including awards based on academics, athletics, extracurricular activities, discipline or area of study, and more.

Native American students may be eligible to apply for other scholarships for minorities, too. Keep in mind that awards with a wider application pool are often more competitive.

First-generation college students, veterans, and active service members also have specific scholarships available to them.

Recommended: Grants, Scholarships and Loans: Differences

Need-Based Scholarships

The cost of college can be a barrier for many students. Need-based financial aid, including scholarships, is intended to make attending college more affordable for eligible students.

Need-based scholarships are typically determined based on the information students provide on the FAFSA. They may include grants for college expenses, work-study programs, and federal student loans.

Merit-Based Scholarships

Students may qualify for scholarships based on their academics. Merit-based scholarships typically consider a student’s standardized test scores, GPA, or academic performance in a specific subject area.

Class rank is another factor that may be used to determine merit scholarship eligibility.

Tips for Applying

With so many scholarships to choose from, the application process may feel overwhelming. Here are some quick tips to guide your scholarship applications.

First, take note of the application deadlines and required materials for each scholarship, including essays, transcripts, and letters of recommendation. A scholarship checklist can keep you organized and on schedule with applications.

Plus, it’s helpful to have the details for every scholarship you’re applying to when asking a teacher or supervisor to write a letter of recommendation. Double check that whomever you ask fulfills the application requirements, as some scholarships may require a letter from a guidance counselor or a teacher of a core academic subject.

Finally, remember that students can apply for scholarships throughout their studies. In some cases, scholarships may be specifically intended for upperclassmen versus first-year students.

To avoid leaving money on the table, plan to research and apply for scholarships every year.

Recommended: 8 Tips for Asking a Professor for a Letter of Recommendation

The Takeaway

There are numerous scholarships and grants available to make college more affordable for Native American students. It’s not uncommon for students to need additional financing, such as federal and private student loans, to fill any funding gaps for college. It’s important to use federal loans first, as they come with borrower protections and income-driven repayment plans.

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 I need to be an enrolled tribal member for these scholarships?

Yes, many scholarships for Native Americans require applicants to be enrolled tribal members. Some awards are available only to members of federally recognized tribes or nations.

Are there scholarships for non-Native spouses of tribal members?

Generally, Native American scholarships are reserved for applicants with tribal membership or who are at least ¼ American Indian or Alaskan Native.

Can I apply for multiple Native American scholarships?

Yes, you can apply for multiple Native American scholarships. Students may combine multiple scholarships, grants, and other financial aid to pay for college.

Photo credit: iStock/SDI Productions

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. 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.

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Some lenders offer a monetary incentive for new and existing customers called a student loan refinance bonus. There are different kinds of student loan refinance offers you may come across, and it’s smart to compare them when you’re refinancing.

Read on to learn about student loan refinance deals and how they work to help determine if one might be right for you.

Student Loan Refinance Bonuses Explained

A student loan refinance bonus is an incentive from a lender to help bring in new business. A lender might offer a cash bonus or give an interest rate discount to borrowers who are refinancing student loans.

A refinance bonus is similar to a sign-up bonus you might get when you apply for a new credit card or open a savings account. After you are approved for a refinanced student loan with a fixed or variable rate, the lender will issue the bonus to you.

How They Work

To get a student loan refinance bonus offer, you typically need to apply for refinancing using a specific promotion link. The link might be on the lender’s website, you might get it in your mail or email, or a third-party partner of the lender may send it to you. Some student loan refinance deals are available for a limited time, while other are offered on an ongoing basis.

Once you’re approved for refinancing, you’ll receive the bonus from the lender. The bonus may be issued to you via electronic transfer to your bank account or mailed as a check.

Types of Student Loan Refinance Bonuses

Student loan refinance bonuses can come in different forms. Below are a few common types you might see if you’re considering refinancing your student loans.

Cash Bonuses

Think of this one-time lump sum as a welcome bonus you get for taking out a student refinancing loan. A cash bonus is a way for lenders to earn your business if you’re a new customer, or to reward you for being a loyal customer if you already have an account with them.

Referral Bonuses

If you’re a borrower who has refinanced student loans and you recommend your lender to other people, you may be eligible for a referral bonus. Your lender gives you a referral link or code that you can pass along to family and friends who are interested in refinancing their student loans.

When one of your contacts refinances their student loans using your personal link or code, you get the bonus. Lenders might also provide a bonus or discount to the newly referred customer.

Interest Rate Discounts

Some student loan refinance deals come in the form of discounts instead of cash back. For example, many lenders offer an interest rate discount to borrowers who sign up for autopay.

In exchange for signing up for automatic payments, the lender gives you a small discount off your existing student loan refinance rate — typically a 0.25% reduction. This discounted rate generally applies throughout your loan term as long as you remain enrolled in autopay.

How to Qualify for a Student Loan Refinance Bonus

To get a student loan refinance bonus, you’ll need to follow the lender’s specific requirements. This varies between lenders and bonus programs, but you can typically expect to take these steps.

1.    Register or apply using the bonus link, code, or website page.

2.    Fill out a student loan refinance application.

3.    Meet the lender’s eligibility requirements and get your loan application approved.

4.    Provide bank account details to receive your bonus.

5.    Complete tax forms, like a Form W-9, if necessary.

6.    Once your loan amount is disbursed, receive your bonus offer.

Depending on the size of the cash bonus you receive, you might be responsible for income taxes on the money. The IRS treats amounts of $600 or greater as taxable income. In that case, your lender might issue you a Form 1099-MISC for your tax reporting purposes.

Benefits of a Student Loan Refinance Bonus

You may decide to refinance if you can get a fixed interest rate, lower rate, or a more favorable term. As part of the refinancing process, a student loan refinance bonus can be a useful perk. Here’s what it might do for you.

•   Help you earn cash back. If you’re already considering a student loan refinance, a bonus offer may sweeten the deal. Cash bonuses come as a lump sum that you can use in any way you’d like.

•   Allow you to pay down your loan balance faster. If your goal is to be debt-free as quickly as possible, the bonus you earn can be redirected toward paying off student loans early. Ideally, if you qualify, you might be able to pair this strategy with a lower student loan refinance rate for greater savings over time.

•   Provide benefits for you and a friend. By taking advantage of a referral-based refinance student loans bonus, you can get a cash-back incentive — and so potentially can the friend you referred. It’s a win-win for both parties.

The Takeaway

Paying back student loans can be costly. A student loan refinance bonus can help put money back in your pocket and potentially unlock a lower interest rate on your loan, if you qualify.

But before deciding on a student loan refinance bonus, look at the big picture. As you’re considering refinancing offers, calculate how much the interest rate on each loan will cost you over time. A refinance loan with a lower interest rate over the long term might be more financially beneficial than a high upfront cash bonus. Shop around with different lenders to find the best option for you.

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

Are student loan refinance bonuses taxable?

If a refinance student loan bonus is $600 or more, the IRS considers the bonus taxable. You’ll receive a Form 1099-MISC from the lender that you can refer to when filing your annual tax return. You are responsible for paying any tax liability associated with the bonus.

Can I qualify for multiple refinance bonuses?

You might qualify for multiple refinance offers, depending on your lender. For example, you may receive a referral bonus for referring a friend who takes out a refinance loan, and you might also qualify for an interest rate discount if you enroll your loans in autopay.

How do refinance bonuses affect my credit score?

Receiving a student loan refinance bonus doesn’t directly affect your credit score. However, applying for student loan refinancing requires a hard credit check, which can temporarily impact your credit score.

Photo credit: iStock/KadnikovValerii

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.

SOSLR-Q324-013

A college education is an investment in the future. But as with any investment, it’s important to consider what you’ll get in return — your ROI — to determine if the cost is worth it. And so college students and their parents are weighing the cost of college against future earning potential, as well as intangibles like friendships, network building, and soft skills.

This guide explores the “return on education” for bachelor’s degrees, and offers insights into how to maximize the value of your college education.

Average Cost of a Degree

Choosing the right college is a multifaceted decision. Considerations include where the school is located, whether it has programs that meet your interests, what student culture is like, and of course price.

The price tag for college can be jaw dropping. The average cost of college for an in-state student attending a four-year university is $27,146 per year (including living expenses). Students that attend private, nonprofit universities spend an average of $58,628 per year living on campus.

💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Return on Investment by Education Level

You can determine your ROI by education level by looking at the ratio of the cost of your degree to your expected income once you graduate. Your return on education is much like a traditional ROI calculation, which looks at the ratio between net profit and cost from investing resources.

In this case, time and money are the resources you’re investing, and your future income is the profit. The ROI for your education will depend largely on how much you spend on your schooling, what type of job you get after school, and to a certain extent what you major in.

Median 40-year ROI for a College Degree, per Education Data Initiative

Associate Degree Return on Investment

Associate degrees can typically be completed in one to two years and often at a community college, which can make them more affordable than four-year degrees. According to data from the Education Data Initiative, the ROI for an associate degree is 363.5% after 20 years.

Bachelor’s Degree Return on Investment

Bachelor’s degrees typically take students four years to complete. According to Education Data Initiative, the ROI for a bachelor’s degree is 38.1% after 20 years. Keep in mind, though, that this estimated return on investment can vary greatly based on the major you pursue. For example, computer science degrees offer an ROI of 716.6%.

Master’s Degree Return on Investment

A master’s degree can be completed after a student receives their bachelor’s degree. This degree allows the student to specialize in a specific area of interest, such as those who pursue a Master in Business Administration, or MBA. The ROI for a master’s degree is 90.1% after 20 years, according to Education Data Initiative.

Doctoral Degree Return on Investment

A doctoral degree is generally the most advanced degree one can get in a particular field. Doctorates can take up to eight years to complete, though the exact timing will vary depending on factors like the program type, structure, and research being completed by the doctoral candidate. The estimated ROI for doctorate degrees is 84.0% after 20 years, according to Education Data Initiative.

Professional Degree Return on Investment

Professional degrees are advanced degrees that prepare a student to work in a particular field, such as law or pharmacy. After 20 years, the ROI for a professional degree is 60.4%, according to Education Data Initiative.

Highest Earning Degrees

The return on education will vary depending on the degree program you choose. For example, a student with a computer science degree may earn more than an English major. There are exceptions, but it’s a good idea to understand the norm for particular fields. These are some of the highest-earning degree programs.

Associate Degree

As mentioned, an associate degree takes about two years to complete and can often be finished at a community college for significantly less than it may cost to get a four-year degree. Associate degrees often allow students to specialize in a specific trade or field, and in some cases, this specialization can lead to a high-earning career.

One of the top-earning post-associate degrees is air traffic controllers. According to the Bureau of Labor Statistics (BLS), air traffic controllers earn a median income of $137,380.

Dental hygienists, MRI technicians, and funeral service managers all earn an average salary of $70,000 or higher, making them top associate degrees based on earning potential, as well.

Bachelor’s Degree

According to Best Colleges, some of the bachelor’s degrees with the highest earning potential include chemical engineering, computer engineering, computer science, finance, and business analytics.

For example, in 2023, chemical engineers earned a median salary of $112,100. Financial analysts earned a median salary of $99,890 per year, according to the BLS.

Certifications

Some people may consider adding a certification to their resume in order to boost their earning potential. Professional organizations often award certifications for specific skill sets. Some top earning and in-demand certifications include those for project management and data engineering.

Recommended: Guide to Student Loans for Certificate Programs

Bachelor’s Degree ROI by Major

The ROI can vary quite a bit based on the type of bachelor degree pursued. As mentioned, computer science degrees have some of the best ROI for bachelor’s degrees — about 716.6% over 40 years, according to Education Data Initiative. Take a look below at a list of majors and their estimated ROI after 40 years, according to Education Data Initiative:

•     Business finance — 710.2%

•     Business accounting — 547.2%

•     Electrical engineering — 517.8%

•     Biology — 225.0%

•     Communications — 209.3%

•     Architecture — 188.6%

•     Fine Art — 70.5%

Consider What Can’t Be Measured by Money

Yes, going to college or pursuing other higher education opportunities can be expensive. But in addition to the cost and potential boost in earning potential, there are a variety of intangible benefits that can’t be measured by a dollar. For example, college students living on campus are gaining a newfound independence and developing life skills they’ll carry with them.

Plus, many colleges have strong alumni networks that can help when a student is looking for a job post-grad. Students have the chance to not only get to know themselves better, but in the process they may make lifelong friends.

Recommended: How to Budget as a College Student

Controlling Costs

One way to improve ROI is to lower the amount of money you are paying for school. This could be particularly useful if you already know you want to pursue a career in a relatively low paying field.

Scholarships

You can help offset the cost of tuition by looking for scholarship programs that help pay your tuition and other college expenses. Many schools offer need-based financial aid to families who might otherwise struggle to pay tuition costs. In some cases, you could even get a full ride.

You can find scholarships by looking at your school’s financial aid website, connecting with your guidance counselor, or reviewing databases or online scholarship search tools.

In some cases, you may be able to apply for unclaimed scholarships to help supplement the aid you have already received.

Grants

Students may qualify for grants directly from their school or through federal financial aid. Grants typically do not require repayment, so they can be an incredibly helpful addition to a student’s financial toolkit when it comes to paying for college. Pell Grants are one type of grant awarded by the federal government to students who demonstrate exceptional financial need.

Pell Grants are available to undergraduate students. In order to maintain eligibility for a Pell Grant, undergrads will also be required to meet satisfactory academic progress requirements.

Student Loan Forgiveness Programs

If you need to take out student loans to help pay for college, keep an eye on your terms and interest rates to help keep costs down. If you take out federal loans and plan to work for certain non-profits or government organizations, you may be eligible for loan forgiveness under the Public Service Loan Forgiveness (PSLF) program. After making 10 years’ worth of qualifying monthly payments, the remaining balance of your loan may be forgiven through this program.

Private Student Loans

Private student loans don’t qualify for federal benefits like PSLF, but they can be helpful tools for students who have exhausted their federal financial aid.

If you are interested in paying for college or another higher education degree with a private student loan, take the time to shop around and review interest rates, terms, and other fees or benefits offered by lenders. 

Employer Support After Graduation

Finally, some employers may also help you pay back your student loans as part of a benefits package. Consider working for an employer who offers these benefits.

Recommended: Finding Jobs That Pay Off Student Loans

The Takeaway

College students can estimate the return on their educational investment by looking at how much they’ll pay for their degree and comparing it to their lifetime earnings. Though important, the money you’ll eventually earn isn’t the only thing you should consider when choosing a college. Getting a bachelor’s degree can help you acquire skills and expand your horizons in ways that aren’t directly related to your degree or job prospects.

When you decide on the right school for you, take the time to consider all your options — including scholarships, grants, federal and private student loans, post-graduation repayment programs, and other sources of public and private funding — to help you achieve your education and career goals.

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

FAQ

What is the average return on investment for a college degree?

The average return on investment (ROI) for a college degree varies by field, but generally, bachelor’s degree holders earn significantly more over their lifetime than those with only a high school diploma. On average, the ROI for a college degree ranges from 9% to 10%, but can be higher depending on the major and institution.

Which degree has the highest return on investment?

Degrees in fields like engineering, computer science, and technology typically have the highest return on investment (ROI). These degrees often lead to high-paying jobs with strong job security and growth prospects, resulting in a significant lifetime earning advantage compared to the cost of education, making them highly valuable investments.

Is a bachelor’s degree a good investment?

A bachelor’s degree is generally a good investment as it can lead to higher lifetime earnings, greater job stability, and more career opportunities compared to having only a high school diploma. However, the return on investment depends on the chosen field, the cost of education, and individual career goals and outcomes.

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.

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