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More and more people are considering degrees from accredited schools with “distance learning” options. These prospective students might be wondering how much these colleges cost compared to in-person options, how credible these online degrees are, what steps should be taken to apply to them, and whether there are options for student loans or financial aid.

The short answer: online degrees are increasingly credible, competitively priced, have a similar application process as in-person colleges, and can be paid for with a wide range of financial aid, federal student loans, and even private student loan options. In fact, some might even pay you to attend.

A Little Bit About Distance Learning

Online college falls under the umbrella of “distance learning”—a form of education conducted outside the traditional in-person classroom and facilitated with the use of several different tools and technologies. Many distance learning programs allow students to complete courses in an “asynchronous” format, aka at their own pace and on their own schedule.

Some online colleges also incorporate “synchronous” learning methods like virtual classrooms and video conferencing for meeting during a designated class time. Depending on which format a student chooses, they can create their own online learning experience as part of their college education.

How Credible Are Online Degrees?

In previous decades, the jury may have been mixed on whether online degrees were considered as credible as their in-person counterparts. But with the advancement of global technology and the onset of digital transformation, online colleges have become more widely recognized as institutions of high-quality education.

According to Northeastern University’s Online Education survey, 61% of HR leaders believe online college credentials are equally credible as those completed in-person. This included both degrees and certificates.

How Much Does The Average Online College Cost?

According to the U.S. News & World Report, the average cost of tuition for an online bachelor’s degree program is $40,491. For in-state students attending public online colleges, the average cost for a bachelor’s degree is $38,496. For out-of-state students, the cost is $54,183. And online bachelor’s degrees from private colleges cost an average of $60,593.

This, of course, is simply the average. In some cases, online college can cost even more than in-person programs. And, in other cases, online colleges can actually pay students to attend (more on that below).

How Do I Apply For Online College?

The process of applying to an online college is similar to that of a traditional in-person college or university. Depending on which school the prospective student chooses, there should be detailed application and enrollment instructions on the website.

Each college will have its own unique admissions policies and application instructions, with some adhering to set application deadlines and others offering “rolling admissions” where students can apply at any time.

Researching deadlines and requirements in advance can be a prudent way to approach the online college application process and provide exactly what the admissions team wants.

Are There No-Cost Online Colleges?

Yes. There are a few colleges and universities that offer tuition-free online classes with a variety of work study programs, scholarships, and other forms of financial aid. A few of those institutions include:

•   Alice Lloyd College
•   Arizona State University
•   Barclay College
•   Brown University
•   City College of San Francisco
•   College of the Ozarks
•   Community College of Rhode Island
•   Curtis Institute of Music
•   Deep Springs College
•   Louisiana Free Tuition

How Do I Pay For College If I Have No Money?

There are several ways to pay for college, even if the applicant has little-to-no means of funding:

•   Applying for scholarships is one way to pay for online college without having any money. There are several resources available for prospective college students seeking scholarships and, unlike student loans, repayment is not required.
•   Financial aid helps prospective students secure funds for online college in the form of grants, scholarships, work-study programs, and federal student loans.
•   Getting an extra gig could be a great way to accumulate some extra cash to subsidize online college costs.
•   Prospective students can see if they qualify for a private student loan online. Once they’ve applied for a student loan for online college, there are many different student loan repayment options to help them tackle the tuition debt on their own terms.

Are There Student Loans For Online Schools?

When online education first began, student loans weren’t offered by the government to cover their costs. But today, federal student loans are offered for online colleges that are accredited by the US Department of Education. Contacting the university’s financial aid office prior to enrollment is the best way to check on eligibility.

Outside of federal student loans, private student loans are another way to potentially pay for online college. With private student loans, each lender will have their own eligibility requirements, terms and conditions, and borrowers must agree to these parameters and complete on-time payments to avoid any fees or penalties associated with account delinquency. Still, there are several smart ways to pay off student loans as well as student loan refinancing options if the loan’s interest rates are unreasonably high.

What About Online Colleges That Accept FAFSA?

If you’re wondering, does FAFSA® cover online classes?, the answer is yes. The Free Application for Federal Student Aid (FAFSA) allows prospective students to apply for financial aid for online classes much like they would an in-person university. All they have to do is fill out the form online, print and mail a paper copy, or request a paper copy be sent by mail and returned.

What Types of Federal Student Loans are Available For Online College?

Prospective students might consider consulting with their online college’s financial aid office before deciding which type of federal student loan to apply for, but many students opt for one of the following types of Federal Direct student loans:

•  Federal Direct Subsidized loans help students who qualify for financial need and are attending traditional four year colleges or universities, community colleges, or technical schools. The federal government will pay the loan’s interest while the borrower is in school, during the six-month grace period after graduation, and in the event of student loan deferment.
•  Federal Direct Unsubsidized loans help undergraduate, graduate, and professional school students cover college costs without requiring a demonstration of financial need. However, borrowers are responsible for paying back all the interest accrued on the loan from the time they start attending college onward (although they aren’t required to start making payments until after they graduate).
•  Direct PLUS loans are unsubsidized loans issued for graduate or professional students as well as parents of undergraduate students who are helping them pay for college.
•  Direct Consolidation loans are a way to combine different federal student loans into one single loan so the borrower can commit to one monthly payment under one loan servicer.

How Can I Get Private Student Loans?

For prospective students seeking an alternative to federally-backed student loans, a private student loan is another way to pay for online college. Depending on the lender, there are several options for interest rates, terms, conditions. And in certain circumstances where borrowers have difficulty paying back the private student loan, negotiations might be made with the lender for deferment, forbearance and even refinancing.

With SoFi Private Student Loans, paying for online college just got a whole lot more convenient. Qualifying borrowers can get competitive rates, apply easily online, find flexible repayment options, avoid pesky fees, and get exclusive members-only rate discounts.

The Takeaway

Online college is a form of distance education that allows students to engage in self-regulated learning and acquire a degree outside the traditional in-person university setting. Degrees from online college degrees are considered increasingly credible by employers and HR leaders.

There are several student loan and financial aid options for online college attendees, including federally-backed student loans, financial aid, scholarships, work-study programs, grants and private student loans.

SoFi Private Student Loans help people pay for school with a simple online application process, no hidden fees, exclusive rate discounts and flexible repayment options that fit their budget.

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

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

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.

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

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For many students, financial aid is the only reason they can afford to go to college. Unfortunately, getting approved for aid (which may include scholarships and federal loans), isn’t a guarantee that you will have it throughout all your years in college. Schools can suspend — or even cut-off — financial aid for a number of different reasons, including poor academic performance.

Fortunately, a financial aid suspension typically doesn’t disqualify you from getting aid in the future. You will, however, need to take some steps to appeal the suspension and get your aid reinstated.

Read on to learn why federal financial aid can get suspended and what you can do to get it back.

What Is Financial Aid Suspension?

Financial aid suspension occurs when the federal financial assistance you qualified for stops coming in.

Financial aid can come in the form of scholarships, loans, grants, and work-study programs. When you fill out the Free Application for Federal Student Aid (FAFSA), you are applying for federal student aid.

After your application is reviewed, you will generally receive information on what aid you are eligible for, if any. When financial aid is being suspended, you will be notified as well, generally by the financial aid office at the school where you are enrolled.


💡 Quick Tip: When shopping for a private student loan lender, look for benefits that help lower your monthly payment

Common Reasons for Financial Aid Suspension

Financial aid suspensions can occur for a variety of reasons. Here’s a closer look at why a student may find there are issues with their aid.

Not Making Satisfactory Academic Progress

In order to be eligible for certain financial aid, you need to be making Satisfactory Academic Progress (SAP).

This means you must be enrolled in a certain number of credit hours and be earning grades that are considered good enough to be working towards completing a degree or certificate in a certain time period.

SAP policies will often vary by school. Typically, SAP rules require students to maintain at least a 2.0 GPA on a 4.0 scale, which is a “C” average in classes.

If students receive scholarships, they may have to maintain a higher GPA than 2.0. To find out the SAP policy at a specific school, take a look at their website or contact the financial aid office.

Taking Too Long to Complete Degree

A student may experience financial aid suspension if they’ve been in school for too long. Federal financial aid is generally restricted to a time limit that is based on the length of the program the student is enrolled in.

This information is generally listed in a school’s catalog. For example, federal aid is generally limited to six years for a bachelor’s degree and three years for an associate degree.

Not Applying for Aid Each Year

You must apply for federal student aid by submitting a FAFSA each year that you are enrolled in school. Failing to submit the FAFSA means you may not receive federal aid for that year.

Also keep in mind that when you fill out the FAFSA annually, you might not receive the same amount or type of aid you received previously if your family’s financial situation has changed.

Making a Change to Your Course of Study

You could also lose federal aid if you switched majors and the aid was tied to your original major. Other changes that can lead to loss of financial aid include switching schools, not taking enough credits to qualify for the aid, and defaulting on other student loans.

Not Meeting General Eligibility Requirements

In order to continue receiving federal aid, you need to continue meeting the general eligibility requirements set by the Department of Education.

For example, if a student is not a U.S. citizen and their eligible noncitizen status expired or was revoked, then they would need to reinstate their status to keep receiving aid.

A student could also potentially lose federal financial aid if they were convicted for a drug offense or became incarcerated.

If it comes to light that a student’s high school diploma is not valid, or they have property subject to a judgment lien, that could also cause financial aid suspension.

Even though it can be frustrating and worrisome to lose financial aid, there are steps that students can take to hopefully get it back.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Appealing a Financial Aid Decision

One of the first things you can do after being notified that your financial aid is being suspended is to call or visit your school’s financial aid office. The office can likely tell you more about why you are losing financial aid and if there is anything you can do about it, like file an appeal.

The appeals process can vary based on the school. In general, you can fill out a form and write an appeal letter to your college. In the appeals letter, you may consider sharing details about the circumstances surrounding your financial aid suspension.

For example, if you lost a loved one that semester, you might have become upset and unable to concentrate on your grades. Sometimes, students experience tough circumstances that have nothing to do with school, but their grades suffer. Schools understand that this happens and they may be willing to work with students who show they are still dedicated to their studies.

After writing the appeal letter, you can mail it or hand it into your financial aid office, depending on preferences and the process determined by the school. It can help to confirm that the office received it. In addition to writing an appeal letter, there are other ways you may be able to qualify for aid again, depending on the issue that caused the suspension of aid.

You may be able to study harder and bring your grades up, for instance. Or, you might enroll in more classes and get back on track to graduate in a certain amount of time. If you are an eligible noncitizen, you could figure out how to reinstate your status.

If you switched majors, you could look into other forms of financial aid for your new course of study. There are many ways to go about it — asking your financial office for guidance can provide insight to help you get back on track.

In some scenarios, you might lose financial aid for the year and then be able to reapply through FAFSA the next year. If you still don’t receive aid, you may need to look into alternative options to pay for your education.

Recommended: I Didn’t Get Enough Financial Aid: Now What?

Avoiding Financial Mistakes in College

If you went through financial aid suspension and couldn’t appeal the decision, you’ll need to figure out ways in which you can pay for school without hurting your financial future.

For instance, you may want to reconsider staying in the dorms and on an expensive college meal plan if you can’t afford it. If you do continue to live and eat on campus, you could run up a huge bill that in and of itself could take years to pay off.

While it may be tempting to put extra expenses on a credit card, debt can add up quickly. If you use a credit card but are unable to pay off your balance every month, you could end up graduating with student loan debt and credit card debt. Credit card debt can have relatively high interest rates which can make it difficult to pay off.

Also keep in mind that, while going to an expensive private school may seem more prestigious, state schools can also be solid options, offering rigorous programs as well.

I Lost My Financial Aid — How Do I Pay For School?

There are many students wondering how to pay for school if they no longer have financial aid — and thankfully, there are a number of ways to cover the cost of college.

One option is to consider transferring to a school that offers a lower tuition or where you can qualify for a more competitive aid package or scholarship.

If you aren’t able to transfer, or already go to a less expensive school, you might try to find a job on or off campus and start earning money to pay for your education.

You might also consider budgeting and cutting costs as needed. A few options to cut expenses might include opting to use public transportation instead of driving, moving to cheaper housing off-campus, cooking meals at home instead of eating out, or limiting how much you spend on entertainment.

You might also consider turning to family members for help. If your parents are able to help pay for your tuition or take out loans to pay for it, this could be a solution.

Another option you might consider is taking out a private student loan. Before applying for a private student loan, however, it’s important to compare different lenders and loan rates and terms. Each lender will also have their own eligibility requirements, so it’s worth looking around at different options.

Unlike federal student loans, private student loans generally require a credit check. If you don’t have much (or any) credit history, you will typically need a cosigner, such as a parent or other adult who has strong credit. With some lenders, you can quickly find out if you qualify, and at what rate, online. Just keep in mind that private student loans don’t offer the same protections, like forbearance and income-driven repayment plans, that come with 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.

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

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

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

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When you realize that the average tab for law school tuition approaches $50,000 a year (more than double the average cost of other graduate schools) you may wonder — how will I ever be able to pay for law school?

Fortunately, there are numerous programs that can cover part, or even all, of your legal education, including scholarships, grants, and loans. Read on to learn more about how to pay for law school without going broke.

Average Cost of Law School

The cost of law school will vary depending on where you study. According to educationdata.org, the average total cost of law school is $220,335.

Tuition alone runs, on average, $146,484 (or $48,828 per year), while living expenses average $73,851(or $24,617 per year).

And the cost of law school keeps going up. In fact, law school tuition costs have risen by about $5,350 every five years since 2005. Based on that inflation rate, the average yearly cost of tuition for the 2024-2025 academic year is expected to be $51,624.

Private and Public Law School Tuition

Public law schools generally run about $21,130 a year less per year than private law schools. If you attend a traditional three-year law program, the gap between public and private schools increases to around $63,380.
Based on tuition alone, the most expensive law school is Columbia University at $78,278 a year, while the least expensive is University of Memphis at $12,208 a year.

However, when you include living expenses, the most expensive law school is Stanford University, ringing in at $46,233 a year, while the least costly school is Oklahoma City University, at $12,600 a year for tuition and living expenses.


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

How to Pay for Law School

1. Apply for Federal Aid, Grants, and Scholarships

Filling out the Free Application for Federal Student Aid (FAFSA) allows you to find out whether you qualify for federal grants, work-study programs, federal student loans, as well as student aid from your state or school.

The FAFSA may be a familiar presence since your undergrad days, but now you may be considered an independent student. You may be eligible for a Direct Unsubsidized Loan (current rate: 7.05%), Direct PLUS Loan (current rate: 8.05%), or the federal work-study program.

Keep in mind that the aggregate federal student loan limit, which includes federal loans for undergraduate study, is $138,500 for graduate or professional students.

Law schools also typically offer some form of need-based financial aid based on information you provide on your FAFSA.

In addition to submitting the FAFSA, you may also want to seek out law school scholarships and grants from non-government sources. Grants and scholarships can be particularly helpful because they don’t require repayment. The Law School Admission Council’s website is a good resource for possible scholarship opportunities.

If you’re going into public interest law, you may also want to research the many programs that offer tuition assistance or law school loan forgiveness for working in eligible legal areas.

You can also check whether your school offers graduate student assistantships, which would cover some of your tuition in exchange for helping with research or teaching.

Recommended: Guide to Law School Scholarships

2. Consider a Part-Time Job or Temp Work

It can be challenging to make a side job jibe with your academic responsibilities, but if you can manage it, making some money while you’re still in school can be one of the best ways to reduce the debt you take on.

It might be a good idea to see if you can get a job that also boosts your résumé, such as working for a professor or as a paralegal.

Even if you can’t commit to a consistent job, you might consider temping during breaks, slow periods, and summers. A staffing agency may be able to quickly set you up with work that lasts just a few weeks or months. Short-term work can include customer service, data entry, or serving as an executive assistant.

If you have additional skills, such as a background in accounting or IT, you may be able to qualify for more specialized roles that demand higher pay. Some temp agencies even specialize in staffing for legal organizations.

3. Attend Law School Part Time

It’ll take longer to complete your degree, but working full time while you go to law school part time is another way to support yourself as you go.

Part-time programs usually allow you to earn your J.D. in four years rather than three. The downside is that you might miss out on opportunities such as clinics, summer clerkships, and student organizations.

4. Look Into Military Aid

The Department of Veterans Affairs (VA) has many educational benefit programs. One of the most popular is the Post-9/11 GI Bill program (Chapter 33), which provides eligible veterans and members of the Reserves with funding for tuition, fees, books, and housing.

Law schools that participate in the Yellow Ribbon Program provide additional funding to veterans, or their children, who are eligible for the Post-9/11 GI Bill benefits. The Department of Veterans Affairs matches these schools’ contribution, which could potentially help you to attend law school at a significantly reduced price.

Recommended: What Are Student Loans for Military Dependents?

5. Think About Private Student Loans or Refinancing

After grants, scholarships, and federal student loans, you may want to consider a private student loan to fill any gaps. If you have good or excellent credit (or can recruit a cosigner who does), you may be able to get a lower rate than some federal graduate school loans.

If you have loans from your undergraduate education or your first year or two of law school, refinancing your student loans with a private lender may allow you to take advantage of a lower interest rate and, depending on the loan term you choose, could lower your monthly payment or put you on track to repay your loans faster. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

Just keep in mind that private student loans don’t offer the same protections you get with federal loans, such as forbearance, income-based repayment plans, and loan forgiveness programs. However, some private refinance lenders provide flexible options while you’re in school or experiencing economic hardship.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Paying for Bar Exam Expenses

Sitting for the bar exam, a two-day affair, requires preparation (and often a bar review course), exam registration fees, and possibly travel expenses.

You may want to hunt around for bar preparation scholarships to help cover these costs. If you’re working for a law firm, your employer will usually cover the cost of the prep course. And many firms will pay review course fees for prospective employees.

Still, if you find yourself short, you could take out a “bar loan” in your final semester of law school or up to a year after graduating. A bar loan is a type of private loan you can use to cover all the costs associated with taking the bar. While rates can be high, they are generally lower than what you would pay with a credit card.

Recommended: What to Do After You Graduate From Law School

The Takeaway

While earning a law degree may lead to a lucrative career, figuring out how to pay for law school can be challenging. The good news is that there are numerous programs, including financial aid, work-study, scholarships, grants, and loans that can help you cover the cost of your legal degree.

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.

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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College tuition can be costly whether you are seeking an undergraduate and graduate degree, attending an out-of-state public university, or taking classes at a private university.

If you do not have adequate savings to pay for classes, room and board, food, travel and other necessities, then you may be considering how to pay for college.

The costs of attending college continue to rise each year for both public and private colleges and universities. In 2023, average annual tuition and fees came to $9,377 at public in-state colleges, and $38,768 at private universities. Obtaining financial aid is one way students can afford to attend college.

One common type of financial aid is called gift aid and typically comes in the form of federal and state grants and a wide range of scholarships that are given by private donors, foundations, non-profit organizations and even the universities themselves.

These grants and scholarships do not have to be paid back, which is helpful for students who are on a tight budget or are considering obtaining a graduate degree.

Another type of aid is called self help aid and usually comes in a form of work study programs and student loans. Some work study programs are sponsored by the federal government and they provide part-time jobs for students who need help paying their tuition. These jobs can be either on the campus of the college or university or off campus nearby.

Self help aid also includes federal student loans which have to be paid back after a student graduates.

There are advantages and disadvantages of both gift aid and self help aid. Undergraduate and graduate students may only qualify for one type of aid, depending on their financial circumstances, where they are obtaining their college degree or other factors.

What Are The Pros and Cons of Gift Aid?

Grants and scholarships are considered gift aid. One common form of grants are called Pell grants. These are grants provided by the federal government and Pell grants are given to undergraduate students who have demonstrated financial need.

The maximum federal Pell grant award is $7,395 for the 2023-24 academic year with amounts changing annually.

The main drawback of gift aid is that you may not know what amount you will receive and you may need to supplement paying for college by seeking more scholarships and grants or getting a part-time job.

If you received a Pell grant the previous academic year, there is no guarantee that you will receive it again for the next academic year.

There are thousands of scholarships that are available to students who are obtaining various degrees. There are a variety of scholarship databases where students can search to find scholarships.

The amount of money that you can receive from scholarships can range a couple thousand dollars to larger amounts that will cover the majority of your tuition and other costs.

Scholarships may require that you reapply annually and there is no guarantee that you will receive a scholarship again the following academic year.

What Are The Pros and Cons of Self Help Aid?

Self help aid includes both work study programs and federal and private student loans.

Work Study Program

Federal work study programs are available for both undergraduate and graduate students to help them pay for tuition and other educational costs. The program’s jobs are related to the student’s course of study and also include community service work.

Both full-time or part-time students may qualify for part-time employment while they are enrolled at their university or college and it is available to undergraduate and graduate and professional students who demonstrate financial aid.

The work study programs are operated by a college and university financial aid office and you will receive at least the federal minimum wage. These jobs are available both on-campus and off-campus which can be beneficial for students who do not have other means of transportation.

Students who work off campus typically work for a nonprofit organization or a public agency and the goal of the job is geared to be in the public interest. The number of jobs is limited, so students should apply early to ensure that they have a position for the following academic year.

Federal and Private Student Loans

Another type of self-help aid are federal and private student loans. Federal student loans are based upon the financial need of a student and their family. They are either subsidized or unsubsidized direct loans and may offer lower interest rates than private loans. One drawback is that the federal government will limit how much money you can borrow.

Undergraduate students may qualify for subsidized loans that are given based on their financial need. One benefit is that the federal government will pay the interest on these loans while you are attending school or at least taking classes half-time, during your grace period or when you have deferred the loan.

Both undergraduate and graduate students may qualify for unsubsidized loans and they are not based on financial need. These loans accrue interest while students are taking classes, during the loan’s grace period, or when you have deferred the loan.

Private student loans can be used to help make up the gap in what is needed to pay the remainder of tuition or living expenses. While both federal and private student loans may help students pay for their tuition; they must be repaid once a student graduates.

If you do not complete your course study and do not receive a degree, the student loans still have to be repaid.

Federal student loans have protections that private student loans do not offer. Students who have received federal student loans can seek several options after graduation to repay their loans including income-driven repayment programs.

Federal student loans also offer borrowers’ the ability to put loans in forbearance or deferment, allowing them to temporarily pause payments in certain situations.

Some borrowers will choose to refinance student loans into new private student loans. But this option means that you lose the protection of the federal repayment plans. Private student loans have both fixed and variable interest rates.

Fixed interest rates are beneficial for people who want to know the exact amount of their loans each month helping them to budget more easily. The interest rate on variable student loans are sometimes lower than fixed rates but that means your payment amounts can fluctuate from month to month.

Shopping around can help you find the best private student loan that fits your financial needs and the amount that you can repay each month.

Qualifying For Gift Aid or Self Help Aid?

Qualifying for either gift aid or self help aid might depend on your financial circumstances. Students may want to apply early for grants, scholarships, work-study programs and student loans.

The first step in applying for federal aid, such as the Pell Grant, work study, and federal student loans is completing a FAFSA®, or Free Application for Federal Student Aid. This application must be completed every year.

Some states and colleges may have their own FAFSA deadlines , so double check to avoid missing any. Missing a deadline can mean forgoing some financial aid.

While some gift aid such as scholarships are given to students based on merit, grades or other accomplishments, grants, work study programs and student loans are typically based on your financial needs and the cost of tuition at your university.

Some universities use data from the FAFSA to determine gift aid like scholarships too. Students can also apply for scholarships and grants that aren’t associated with the FAFSA®.

Private Student Loans with SoFi

In some cases gift aid and federal aid aren’t enough to help students pay for their tuition. In that case, some students may consider private student loans.

SoFi offers private student loans with no late fees or origination fees with flexible repayment options. There are also interest rate discounts for eligible SoFi members.

SoFi Student Loan Refinance
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When a student fills out the Free Application for Federal Student Aid (FAFSA®) form, it’s important that they understand their dependency status. A student’s dependency status will affect the information they need to report on their FAFSA.

Dependent students have to report both their own and their parent’s information during this process. Independent students will only have to report their own information, the exception being if they are married. In which case, they will provide their spouse’s information as well.

Here’s how it works for independent vs. dependent students.

The Difference Between Independent and Dependent Students

There are a few key differences between independent and dependent students.

What Is an Independent Student?

An independent student meets one or more of the following criteria. They are:

•   24 years old or older
•   Married
•   A graduate or professional student
•   A veteran
•   A member of the armed forces
•   An orphan
•   A ward of the court
•   Someone with legal dependents other than a spouse
•   An emancipated minor
•   Someone who is homeless or at risk of becoming homeless

What Is a Dependent Student?

Basically, a dependent student is any student who doesn’t meet the criteria to be considered an independent student. The U.S. government bases their federal student aid programs on the belief that it is primarily the student and their family’s responsibility to pay for the student’s higher education pursuits.

Even though it may not be the case in reality, dependent students are assumed to have the support of their parents which is why the parents’ information must be included in the student’s FAFSA form. Providing this information gives FAFSA a more complete picture of the family’s financial strength.

Just because someone is considered a dependent student does not mean that their parents have to contribute financially to their higher education costs, but the government assumes that parents will contribute in some way if financially possible.

Determining Dependent or Independent Student Status

While that brief overview begins to paint a picture of what it looks like to be a dependent or independent student, the Federal Student Aid office, which is an office of the U.S. Department of Education, asks key questions that help students determine their official status.

Their answers to the questions on the FAFSA form will help determine whether they are considered a dependent or independent student. The questions do change slightly each year, but are published by the Federal Student Aid office.

These questions include things like:

•   As of today, are you married?
•   Are you a veteran of the US armed forces?
•   At any time since you turned age 13, were both your parents deceased, were you in foster care, or were you a dependent or ward of the court?

These questions can help guide students to determine whether or not they qualify as an independent or dependent student. Essentially, if a student answers “yes” to any of the questions in the FAFSA, they are considered an independent student.

Dependent Students

Students that answered “no” to all of the questions above are considered to be dependent students and while applying for federal student aid must provide information about their parents on the FAFSA form.

Students who are considered a dependent student by the FAFSA but are not in contact with their parents and don’t know where they live, can discuss their situation with the financial aid office at the college or career school they are planning on attending.

Their school’s financial aid administrator will usually be able to help them determine next steps. The same process applies if a student has left home due to an abusive situation. They will fill out the FAFSA form and contact their school’s financial aid office for assistance.

Even if a dependent student doesn’t live with their parents, they still need to provide accurate information about their parents. If their parents won’t provide the information they need, the student risks having their application rejected which may make them ineligible to receive any federal student aid.

Students in these circumstances may be able to qualify for an unsubsidized loan at most, but this option depends on what the financial aid office at their specific college decides.

Even if a student’s parents won’t help pay for college, if they answered “no” to all of those questions, they are still considered dependent.

Independent Students

Students that answered “yes” to any of the above questions are considered to be independent students during the federal student aid process. Independent students do not have to provide information about their parents on the FAFSA form.

When Federal Student Aid Falls Short

Colleges use the FAFSA to determine a student’s federal aid eligibility. While the FAFSA is a great place to start, sometimes federal aid can’t fully cover the cost of a college education. This is where private student loans can step in and cover the expenses that gift aid and Federal loans could not.

Related: A Guide to Private Student Loans

SoFi strongly believes students should exhaust all of their Federal grant and loan options before they look at private loans. Once a student has exhausted their options, they can look at SoFi private student loans which are easy to apply for, allow students to add a cosigner to their application in minutes, and never have fees.

No origination fees, no late fees, and no insufficient fund fees. Ever. With flexible repayment plans and exclusive rate discounts, SoFi Private Student Loans can provide a good option for covering the costs of attending college.

The Takeaway

In order to fill out the FAFSA, students will need to determine if they are an independent or dependent student. For example, students aged 24 and older, those attending graduate school, students who are married, or who have dependents are all generally considered independent students.

For a full list of questions to help you determine whether or not you are a dependent student, check out this resource from the Federal Student Aid website.

The distinction between independent and dependent students is important because they are required to submit different information to the FAFSA. Dependent students are required to submit their parent’s information in order to be considered for federal aid opportunities. This is the case even if a dependent student’s parents are not contributing financially to tuition costs. Independent students are not required to submit any of their parent’s financial information.

In situations where federal aid may not cover the cost of college, private student loans could be an alternative option to look into.

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

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