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A bachelor’s degree is an undergraduate degree that usually requires you to take 120 credit hours of courses, typically around 40 classes. There are several types of bachelor’s degrees, including Bachelor of Arts, Bachelor of Science, and Bachelor of Fine Arts degrees. When you pursue a bachelor’s degree, you can major in a wide variety of focus areas, including arts, sciences, and humanities.

You may consider a second bachelor’s degree due to a change in career (such as switching from teaching to engineering — the number of classes you have to take for a master’s may encourage you to get a second bachelor’s degree instead). Taking advantage of career opportunities, adapting to job changes, or getting credit for specific skills may also be reasons you dive in again.

But can you get financial aid for a second bachelor’s degree?

Yes, you can! Read on to learn more about how to get financial aid for a second bachelor’s degree and the type of financial aid you might want to pursue for your second go-round.

Is It Possible to Get Financial Aid for a Second Bachelor’s Degree?

Yes, it’s possible to receive financial aid for a second bachelor’s degree, which can include federal student aid like federal grants, work-study, and federal student loans. We’ll detail the definitions of these types of federal student aid below when we explain how adult learners pay for college.

It’s important to note that you will be limited to a certain amount of financial aid in certain situations. For example, the aggregate federal student loan limit for dependent students (those claimed by their parent(s) on their parents’ taxes) is $31,000 and no more than $23,000 can be in Subsidized Student Loans.

Independent students (students who are at least 24 years old, married, veterans, members of the armed forces, who have their own legal dependents, who are homeless, and/or meet other qualifications) cannot borrow more than $57,500. No more than $23,000 of this amount may be in Subsidized Loans. In other words, if you’ve already borrowed the maximum amount for your first undergraduate degree, you could not borrow any more.

Certain grants also impose limits on what you can receive for a second bachelor’s degree.

Recommended: Can You Negotiate Financial Aid?

Can a Student Receive a Pell Grant for a Second College Degree?

A Pell Grant is a type of need-based federal grant. Grants are a type of aid that you don’t have to repay.

You cannot receive a Pell Grant if you’ve already received an undergraduate degree.

In some cases, students enrolled in a post-baccalaureate teaching program may be eligible to receive the Pell Grant. However, there are more stipulations — you cannot receive an unlimited amount of Federal Pell Grant funds, according to federal law. The Federal Pell Grant limit you can receive over your lifetime — Federal Pell Grant Lifetime Eligibility Used (LEU) — is limited to six years.

During a single award year, you can receive up to 100% of a scheduled Pell Grant Award, though it is possible to receive up to 150% of your scheduled award. For example, you may take classes during the fall, spring, and summer and therefore receive more than the scheduled 100%. However, you can receive the Pell Grant for no more than 12 terms, or about six years, because the six-year percentage equals 600%.

Using Funding From Financial Aid for Second Bachelor’s Degree

Financial aid for a second bachelor’s degree can include work-study, scholarships, federal student loans, and student aid for military spouses. You can think of your financial aid award as a jigsaw puzzle — these individual pieces fit together to form your award. Let’s take a look at the types of aid you might receive.

Work-Study

When you file the Free Application for Federal Student Aid (FAFSA®), you may receive a work-study award — yes, even if you’re working toward earning a second bachelor’s degree. As long as you apply for part-time work-study jobs for a second degree on campus (sometimes off-campus jobs are available) you may work up to the amount you receive on your work-study award. The amount you can make depends on factors including your level of need and the funds your school has available for work-study.

It’s important to remember that work-study is not “automatic money” — you must apply for a job and work toward the number of hours shown on your award.

Scholarships

Scholarships have a diverse eligibility requirements and some may be open to learners seeking a second bachelor’s degree. Scholarships may come from a wide variety of sources, including the institution you apply to. It’s a good idea to ask the financial aid office at each school for more information about the types of scholarships available to you because each college and university has various requirements for earning scholarships. For example, some may be based on merit and others may be based on financial need.

Other organizations, such as clubs, foundations, charities, businesses, local and state governments, and individual philanthropists, may also offer scholarships.

Recommended: Scholarship Search Tool

Federal Student Loans

You may qualify for federal student loans as long as you are under the aggregate federal student loan limit for dependent students of $31,000, with no more than $23,000 in subsidized student loans. Independent students are limited to $57,500 and cannot go over more than $23,000 in subsidized loans.

Undergraduate students can take advantage of Direct Subsidized Student Loans or Direct Unsubsidized Loans, which must be repaid with interest. Subsidized student loans are need-based federal student loans in which the government pays the interest while you’re in school (though you’ll pay the interest after school). Unsubsidized student loans are non-need-based federal student loans in which the government does not pay the interest while you are in school.

For loans disbursed during the 2023-2024 academic year, undergraduate students can take advantage of both Direct Subsidized or Unsubsidized Loans for an interest rate of 5.50%.

Recommended: Types of Federal Student Loans

Student Aid for Military Spouses

If you are the spouse of a military member, you may be able to have your military member transfer Post-9/11 GI Bill benefits to you based on your loved one’s military service, particularly if they are on active duty or in the Selected Reserve.

Your loved one must have completed at least six years of service, agreed to add four more years of service, and must also be enrolled in the Defense Enrollment Eligibility Reporting System (DEERS). Your active duty military member must use a Transfer of Entitlement (TOE) before you can apply for benefits.

What Do I Need to Do to Use Financial Aid for a Second Bachelor’s?

You can file the FAFSA for second bachelor’s degree financial aid and accept the aid award that comes from the school of your choice. Let’s go over each of these steps. Don’t forget to check out SoFi’s FAFSA guide.

Applying for FAFSA

You must file the Free Application for Federal Student Aid, commonly known as the FAFSA, to qualify for federal student aid. The FAFSA form online asks you to report on your personal financial information, including tax information and your savings and checking account balances. The FAFSA information also helps colleges, universities, and private financial aid providers decide how much state and institutional aid you may receive.

Once you file the FAFSA, you’ll get a Student Aid Report (SAR), which summarizes the information you’ve entered on the FAFSA. The SAR reports a variety of information including:

•   Your Student Aid Index (SAI), a number that determines your eligibility for student aid

•   Your eligibility for federal student loans

•   Your eligibility for Federal Pell Grants

•   Whether you’ve been selected for verification, which is a process that some students undergo to confirm that all the information is accurate on the FAFSA. Students may get selected randomly for verification and the school may also select them for verification. They may also get selected if the Central Processing System found problems with the FAFSA. The financial aid offices at the schools on your list can help you through the verification process.

Once you complete everything, you’ll receive a financial aid award from the schools on your shortlist.

Accepting Financial Aid

After receiving your financial aid award, it’s important to go through your full award to make sure you understand it, line by line. If you don’t understand a portion of your award, call the financial aid office of the school that sent it to you. They should be able to explain your full award to you in detail.

The school will generally explain how to accept your financial aid award in the email or packet that you receive. You can go through each type of loan, grant, and scholarship and accept or decline the awards you want. You can also accept the entire award. The financial aid office will let you know about your next steps after your award acceptance and after you pay your enrollment deposit.

Recommended: Ca$h Course: A Student’s Guide to Money

Ways to Pay for a Second Bachelor’s Degree

You can pay for your education using financial aid for a second bachelor’s degree using the types of aid described above (through grants, scholarships, and federal student loans). You may also want to pay for college using some money you’ve saved or that you are currently earning through a part- or full-time job.

Learners can also take advantage of private student loans, which are student loans that don’t come from the federal government. They typically offer higher interest rates than federal student loans but are a great way to fill in the gaps that other financial aid for second bachelor’s doesn’t cover.

Before you choose a private student loan lender, ask questions about interest rates, terms, and repayment options. Note that you’ll lose the option to tap into federal student loan benefits like income-driven repayment plans and loan forgiveness options if you go the private student loan route.

The Takeaway

If you’re wondering, “Can I get financial aid for a second bachelor’s degree?” you now know that the answer is a resounding “Yes!”

But will financial aid pay for a second bachelor’s degree? The answer is that federal financial aid and scholarships may not fully cover all your education expenses, which is why you might consider looking into private student loans.

Let SoFi help you fill the gap. For example, you may want to lean on a combination of scholarships, federal student loans, the money you’ve saved, and private loans. If you borrow too much, you might even be eligible for refund checks from financial aid.

Photo credit: iStock/millann

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

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

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

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

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It’s never too early to think about student loan repayment. Whether you’re still in college, or you recently graduated and are in the ‘grace period’ before repayment begins, strategizing now can help you weigh the options.

If you’ve graduated and are already working and making payments, it can be a good idea to re-evaluate your repayment plan over time. As your financial circumstances change, the way you’d like to manage your student loans may also shift.

Before considering your options, take inventory of all your student loans. Be sure to list the principal, the interest rate, the repayment period, and the servicer for each loan.

All federal student loans issued in recent years have fixed interest rates, but private student loans or older federal student loans may have variable rates. If the rate is variable, be sure to note that as well.

Different Student Loan Repayment Options

Once you understand the details of your student loans, it’s time to think about your repayment options. The simple choice if you have federal student loans is the Standard Repayment Plan. It’s the “default” repayment plan, so unless you sign up for another option, this is the plan you’ll have. Under the Standard plan, you typically pay a fixed amount every month for up to 10 years.

There is no “standard repayment plan” for private student loans; the interest rate may vary based on market factors, and your repayment term might be shorter or longer.

The federal government also offers graduated and extended repayment plans for borrowers. With the Graduated Repayment Plan, payments start smaller and grow over time, while the Extended Repayment Plan stretches repayment over a period of up to 25 years and payments may be either fixed or graduated.

Opting for the Standard Repayment Plan may work for you, but for some borrowers, it’s not the most cost-effective choice. These borrowers may be eligible for special federal programs that can reduce the amount they owe monthly based on financial circumstances, and in some cases, forgive balances if they meet certain requirements.

Or some borrowers might be able to find a more competitive interest rate by refinancing their loans through private lenders.

💡 Quick Tip: Often, the main goal of refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing makes sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections.

Here’s an overview of some student loan repayment options that may help if you are choosing a repayment plan:

1. Student Loan Consolidation

Federal student loan consolidation allows you to combine multiple federal student loans into a single new loan. You can’t consolidate private student loans using this federal program.

When you consolidate your federal student loans into a Direct Consolidation Loan, your new loan’s interest rate will be the weighted average of all your old student loans’ interest rates, rounded up to the nearest eighth of a percent. This means your interest rate won’t necessarily be lower than the rate you were paying before consolidation on some of your student loans.

When you consolidate, you’ll also have the option to select a new repayment plan. The standard plan would still be available, but consolidation can also be a first step toward other plans of action, like student loan forgiveness or income-driven repayment.

2. Student Loan Forgiveness

While President Biden’s federal student loan forgiveness program — which would have canceled up to $20,000 in student loan debt for eligible borrowers — was blocked by the Supreme Court in late June 2023, there are other available forgiveness plans that certain borrowers may be able to take advantage of. For instance, some federal student loans and Direct Consolidation Loans are eligible for modified payment plans that forgive outstanding student loan balances.

Health care professionals, teachers, military service members, and those employed full-time by qualifying nonprofit or public service organizations may be eligible for certain federal student loan forgiveness programs.

For instance, under the Public Service Loan Forgiveness (PSLF) program, those who have worked for qualified employers, such as the government or some nonprofit agencies and have made 10 years of payments on a qualified income-driven repayment plan, can apply for forgiveness of all of their remaining federal student loan balances. That forgiveness is not considered taxable income.

The Federal Student Aid website has additional information on which federal student loans qualify for which types of forgiveness, cancellation, and/or discharge.

3. Income-Based Repayment

If the payments under the Standard Repayment Plan seem too high, federal student loans offer two income-based repayment plans, which tie the amount you pay to your discretionary income.

Income-driven repayment plans may help lower your monthly payments. In some cases, however, you might end up paying more over the life of the loan than you would have on the Standard Repayment Plan. That’s because with low monthly payments that stretch out over more years, you could be paying more in interest over time.

However, under the new Saving on a Valuable Education (SAVE) income-driven repayment plan introduced by the Biden Administration at the end of June 2023, any unpaid interest would be covered by the government (meaning the interest would not accrue) as long as you make your monthly payments. This plan also aims to reduce a borrower’s monthly payments by half.

Additionally, with income-driven repayment plans, you may be eligible for some student loan forgiveness programs if the remainder of your student loans aren’t paid off after 20 to 25 years (and in some cases under the new SAVE plan, after 10 years) of consistent, on-time payments.

4. Student Loan Refinancing

Refinancing student loans through a private lender offers the opportunity to consolidate multiple student loans into a single payment and potentially decrease your interest rate or lower your monthly payment.

Loan repayment terms vary based on the lender, and borrowers with better credit and earning potential (among other financial factors that vary by lender) may qualify for better terms and interest rates.

One important thing to know about refinancing, however, is that once you refinance a federal student loan into a private loan, you can’t undo that transaction and later consolidate back into a federal Direct Consolidation Loan.

This can be relevant for professionals in health care or education where federal student loan forgiveness plans are offered, or for those considering long-term employment in the public sector.

In addition, refinancing federal student loans with a private lender renders them ineligible for important borrower benefits and protections, like income-driven repayment and deferment.

💡 Quick Tip: When refinancing a student loan, you may shorten or extend the loan term. Shortening your loan term may result in higher monthly payments but significantly less total interest paid. A longer loan term typically results in lower monthly payments but more total interest paid.

Can You Change Your Student Loan Repayment Plan?

If you have federal student loans, it is possible to change your repayment plan at any time, without any fees. You’ll have the option to choose from any of the federal repayment plan options, including income-driven repayment plans.

There is less flexibility to change the terms of a private student loan. Some private lenders may offer alternative payment plans for borrowers. Check with your lender directly to see what options may be available to you.

SoFi Student Loan Refinancing

Refinancing is another avenue that can result in a new repayment plan. An important consideration, however, is that refinancing federal student loans will remove them from any federal programs or protections, so this won’t be the right choice for everyone.

The Takeaway

Federal student loan borrowers have the ability to change their repayment plan at any time, without being charged any fees. There are different plans to choose from and you can look for one that suits your situation and needs.

Changing your repayment plan is a bit more challenging for private student loans, though some private lenders may offer alternative options for borrowers. Refinancing is another option that could allow some borrowers to adjust their repayment terms.

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

What student loan repayment options are available to me?

Borrowers with federal student loans can choose from any of the federal repayment plans, including the standard 10-year repayment plan, or income-driven repayment options, including the new SAVE plan introduced by the Biden Administration at the end of June 2023, which is designed to make student loan debt more manageable.

For private student loans, repayment options will be determined by the lender.

What is a standard repayment plan for student loans?

The Standard Repayment Plan for federal student loans is fixed monthly payments over a period of 10 years. For consolidation loans, repayment may extend up to 30 years.

How long is a typical student loan repayment?

The typical student loan repayment period may vary from individual to individual. The Standard Repayment Plan for federal loans is 10 years, but income-driven repayment plans or Direct Consolidation loans may have a term of up to 25 to 30 years.

The repayment terms for private student loans vary by lender.

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.

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 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.

Paying for college without support from parents may seem like an overwhelming proposition, but it often is possible. Making college affordable often starts before you even choose a college, by reviewing tuition and financial aid available to you at the colleges and universities you are interested in attending. Choosing the right college for you can go a long way in helping you pay for your education.

Other strategies include applying for scholarships and working through college. Each student is in a unique financial situation, and you may find a combination of these strategies can provide the help you need in order to pay for college. These strategies could also be used by students who do have parental assistance.

Strategies to Help Pay for College Without Parental Support

Finding the resources to pay for college can be a challenge, and if you’re embarking on this journey alone, it can be stressful. Here are some tips that can help you navigate the process and make it feel less overwhelming.

Choosing the Right College

The best college for your situation will likely be one that provides the programs you need to achieve your career goals and has a price tag that you can afford.

Decisions you’ll need to make include:

•   Living at home or in a dormitory or other housing by the college

•   Choosing between a public or private college

•   Picking between in-state and out-of-state colleges

Living at Home

If you can live near the college rent-free, or at low cost, then this is likely the most cost-effective choice. Perhaps you have family members who live near a college and will allow you to live with them while you pursue your education. Or, maybe you could rent a low-cost apartment near a community college or other school that doesn’t require freshmen to live in a dorm.

Considering Private vs Public Colleges

Public colleges are, generally speaking, less expensive than private colleges. Tuition and fees for the 2022-2023 academic year averaged $39,400 at private colleges and $28,240 at public colleges (for out-of-state residents). Prices get even more reasonable if you attend school in your home state and receive in-state tuition — the average cost of in-state tuition and fees was $10,940.

Generally, in-state universities are more affordable than going out of state. But the difference between tuition for out-of-state and in-state students can vary widely, so check into your colleges of choice for confirmation. You’ll also want to factor in traveling costs for out-of-state options and consider online college programs where you can take classes no matter where you are located.

Starting at a Community College

Completing your first two years of study at a community college is another option that could dramatically reduce the overall cost of college. In addition to less expensive courses, it may be possible for you to live at home, which can cut costs even more. You might then transfer to a four-year college, allowing you to get a degree from that school without paying for the cost for all four years.

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

Applying for Relevant Scholarships

Because scholarships don’t typically need to be repaid, they are a valuable tool to help fund your college education. If you’re finishing high school, talk to your guidance counselor about possibilities. There are often local scholarships provided by businesses and civic groups that you can apply for.

These days, you can also find a lot of scholarship opportunities online. There are often major-specific opportunities and more general offerings. It’s worth investing a bit of time in researching and applying for scholarships — a couple hours could really be worth it when those scholarship offers start rolling in.

As you’re researching scholarships, you’ll want to be sure to find quality opportunities and be wary of scams. Also, don’t shy away from smaller scholarships. While it would be nice to have one large scholarship to cover your cost of college, smaller scholarships can add up, incrementally chipping away at what you need to afford college. Some scholarships may be location-based. Check out SoFi’s state-by-state financial aid guides for more information on scholarships local to your home state.

When you find a college scholarship of interest, check the guidelines carefully to ensure you qualify. Also be sure to follow the application instructions carefully, and submit your forms as early as possible within the timeline. Although you can often reuse parts of one scholarship application to complete another, each opportunity typically has unique requirements, formats, and deadlines.

Recommended: What Is a Merit Scholarship & How to Get One

Obtaining Grants to Help Pay for College

Grant funding can come from multiple sources, including state agencies, local organizations, corporations, and more. And as with scholarships, this is money you don’t typically need to pay back. The biggest source of college grant funding comes from the federal government, and one of the best known is the Pell Grant .

Federal grants come in different categories, including:

•   Need-based grants which are based upon financial hardship

•   Merit-based grants awarded to students who exhibit exceptional scholarship and/or community involvement

•   Grants awarded to specific groups, including students with disabilities, those from underrepresented groups, veterans, National Guard members, foster care youth, and those who select certain careers

Obtaining federal grant funding without help from your parents can be challenging, though. That’s because most federal grants require students to fill out the Free Application for Federal Student Aid (FAFSA), which, if you are a dependent student, will be considered incomplete without parental information. In the event that your parents are unable to fill out their portion of the FAFSA , you’ll have to contact your college’s financial aid office and show appropriate documentation that verifies that your parents cannot fill out the form.

In certain circumstances, you can obtain independent student status and complete the FAFSA yourself, but parental refusal to help with FAFSA completion might not be enough to gain this status.

Even if you fully support yourself financially and are no longer claimed as a dependent on your parents’ tax forms, this status may not necessarily be granted. See your guidance counselor if you want to explore obtaining this status.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.

Applying for Student Loans

As mentioned, students that fund their college educations without assistance from their parents often need to craft a financial aid plan that consists of funding from multiple sources. This may include funding from both the federal government and private lenders.

Applying for Federal Student Loans

Federal and private student loans are available, but most federal loans require a portion of your FAFSA to be completed with parental information, unless you have independent student status.

Effective with the Higher Education Opportunity Act of 2008 , college financial aid departments can offer students unsubsidized Stafford loans even if their parental section on their FAFSA isn’t completed, as long as they confirm that parents are not willing to financially help the student or fill out the FAFSA.

Applying for Private Student Loans

You can also apply for private student loans, although, if you don’t have much or any credit history, you may need a cosigner. Private lenders generally evaluate a potential borrower’s credit history, among other factors, as they make their lending decisions. Adding a cosigner with a strong credit history could potentially help secure a more competitive interest rate. If you aren’t able to find a cosigner, it is possible to apply for a student loan without a cosigner.

Another important note is that private student loans may not offer borrower protections like those offered to federal student loan borrowers, such as the option to apply for Public Services Loan Forgiveness. For this reason, private student loans are generally borrowed as a last resort option.

With determination and a willingness to seek out and accept help, students do find ways to fund their college educations without assistance from their parents.

Recommended: What Percentage of Parents Pay for College?

Cutting Costs While Attending College

Smart budgeting and careful spending can help you stay in line with your means as you pay for college. Cutting costs when possible could allow you to save or funnel more money toward college tuition.

If, for example, you plan to rent a room in a house near your college of choice, you can furnish it in funky, eclectic ways using stylish and affordable finds from thrift stores and garage sales. ​If you’re handy, you can even build your own loft bed and other furniture, with plenty of instructions available online.

Food gets expensive quickly. If you’ll be on a college meal plan, choose one that doesn’t include waste. Or if you’re living somewhere where you can cook your own food, plan thrifty meals in advance and shop in bulk. Watch for a slow cooker at rummage sales, and you can cook plenty of delicious soups and more.

To cut costs on textbooks, shop around to see if there are any used options you can purchase at a discounted rate. If the book you are buying is directly related to your college major, and you plan on saving it for reference in the future, it could be worthwhile to buy the book. If it’s a textbook for an elective class, you could consider renting the textbook which can often be cheaper than buying it brand new.

Working While Attending School

In addition to potentially helping you qualify for financial aid, your FAFSA may qualify you for federal work-study programs. Of course, finding a part-time job that isn’t associated with work-study is also an option.

You will need to determine how many hours per week you can work and still do well in school. And you’ll also need to find a job that is willing to accommodate the work-school balance you require. For example, it’s important to find an employer who will offer flexibility in scheduling during, for example, midterms and final exams.

The Takeaway

Students who are planning on paying for college without their parents’ help can start by choosing an affordable college option, applying for scholarships, getting a part-time job, and applying for federal student aid. As a dependent student, applying for federal aid may be challenging without your parent’s support, because the FAFSA may be considered incomplete without their information.

In the event that other avenues of funding have been depleted, students may consider private student loans, keeping in mind that private student loans don’t always have the same borrower protections as 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.

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

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

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Applying for a student loan generally works one of two ways. Students interested in borrowing a federal student loan can apply by filling out and submitting the Free Application for Federal Student Aid (FAFSA®) as early as the October before the school year. The federal deadline for filling out the FAFSA is typically June of the school year, though states and individual colleges may have their own deadlines.

Private student loans run independently of the federal loan program. Students are able to apply for a private student loan at any time during the school year.

Understanding The Difference Between Private and Federal Student Loans

There are a few important differences between federal and private student loans that it’s important to understand.

For federal student loans, The U.S. Department of Education runs the William D. Ford Federal Direct Loan Program. The program has four types of loans to consider:

•   Direct Subsidized Loans: for undergraduates who demonstrate financial need.

•   Direct Unsubsidized Loans: for undergraduate, graduate, and professional students. Eligibility is not based on financial need.

•   Direct PLUS Loans: made only to graduate or professional students, or to the parents of dependent undergraduate students. No financial need is required for Direct PLUS Loans, but a credit check is. If you’re applying yourself and your credit isn’t great, you may need to meet some additional requirements.

•   Direct Consolidation Loans: these allow you to consolidate all of your federal student loans into one single loan, which is managed by a single loan servicer.

Private student loans are offered through private lenders. As a part of the application process, lenders will generally evaluate a borrower’s personal financial information and history, including their credit score, among other factors. Private loans don’t have to follow the same government regulations as federal loans, and they don’t offer the same borrower benefits or protections — like income-driven repayment plans or Public Service Loan Forgiveness. For this reason, private loans are generally considered an option only after other sources of funding have been exhausted.

💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.

How to Apply for a Federal Student Loan

The first step in applying for a federal student loan is to complete and submit a form called the Free Application for Federal Student Aid (FAFSA®). As mentioned, the FAFSA is typically available starting in October of the year before school starts. The FAFSA will remain open until June 30th of the academic year. So for example, for the 2023-2024 school year, the FAFSA application opened on October 1, 2022, and will close on June 30, 2024.

While there is a large window to fill out the FAFSA, there may be college or state deadlines that fall before the federal deadline. Additionally, some aid is awarded on a first-come first-served basis, so it can be beneficial to fill out the FAFSA as early as possible.

Once the FAFSA is submitted, your school will review and determine your financial aid offer, which may include federal student loans, scholarships, grants, and work-study.

Before you receive any federal student loan that you apply for, you’ll be required to complete entrance counseling , which is designed to help you understand your obligation to repay the loan. You’ll also be asked to sign a Master Promissory Note, which says you officially agree to the terms of the loan.

How To Apply For Private Student Loans

You may want to consider a private student loan after you’ve explored your options for financial aid, grants, scholarships, and federal student loans. Private lenders typically have their own qualification criteria, but you may be eligible to apply for a private student loan if you’re an undergraduate or graduate student, pursuing a certificate, a student of the dental, medical, or other health professions, studying to take the bar exam, or relocating for medical or dental residencies.

Parents may also be eligible to take out private loans to pay for their child’s education.

Private student loans can usually be used for any type of expenses related to your education, including tuition, room and board, fees, books, supplies, equipment, computers and electronics related to your schoolwork, transportation, and personal needs at school.

This list details some of the information you may need when applying for a private school loan. Note that applications will vary by lender so you may not need everything here:

•   The applicant’s name, address, phone number and email address

•   Date of birth

•   Social security number

•   Employer’s name

•   Proof of income (a recent pay stub)

•   Bank account balances

•   Monthly housing payment (rent/mortgage)

•   School name

•   Estimated cost of attendance

•   Your current student status (freshman, full time, for example)

•   Other financial aid you’ve received so far

•   Anticipated graduation date

•   References

•   Student loan cosigner and cosigner’s information, if applicable

Private student loan lenders may let you submit your loan application online, and some may even be able to give you an answer the same day. Of course, underwriting timeframes and documentation requirements can vary greatly by lender.

Private student loans are granted based on your income, credit history, and credit score, among other factors. That means the lender looks at your history of borrowing money and paying it back. This history also determines your loan’s interest rate.

If your credit history is unestablished or less than stellar, applicants may consider adding a cosigner to the loan: that person will be responsible for paying it if you are unable to do so.

Interest rates on private student loans can be fixed-rate or variable interest rate. Fixed rates do not change over the life of the loan. Variable interest rates could increase or decrease due to the financial index that determines the variable rate, or other factors as determined by your lender. Your total monthly payment could vary based on the loan’s current interest rate.

Know that not all private student loans are exactly alike. If you’re interested in borrowing a private student loan, consider shopping around and researching your options. The Consumer Financial Protection Bureau and the U.S. Department of Education are two student loan resources that may be useful.

💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate

Beyond Student Loans: Other Ways to Pay for College

Students can explore other options to pay for college, including scholarships, work-study, grants, and more.

Scholarships and Grants

Scholarships and grants are types of aid that don’t need to be repaid. Grants are generally awarded based on financial need and may be awarded by your school, the government, or another organization such as a nonprofit.

Scholarships may be awarded based on financial need or merit.

Work-Study

The federal work-study program offers part-time employment to undergraduate students who demonstrate financial need. Eligibility for work-study is determined by the FAFSA. Some schools may match students to a work-study job, while other schools may require that students apply for positions.

Part-Time Job

Working part-time can be another way to earn extra cash to pay for college expenses. Students could look into jobs such as tutoring, babysitting, or working at a local business in their college town.

The Takeaway

To get a federal student loan, students fill out the FAFSA in order to see which type and how much aid they may be eligible for. The application process for private student loans may vary by lender. Private student loans can help students pay for college if they don’t get enough federal aid.

Students can also explore other options to help pay for college, such as scholarships and grants and work-study or another part-time job.

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.

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.

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.

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If you’re a parent hoping to send your child to college someday, you’re probably well aware that higher education costs have skyrocketed over the past 10-plus years.

Tuition and fees for the 2022-2023 academic year averaged $10,940 at public colleges (for in-state residents), $28,240 at public colleges (for out-of-state residents), and a whopping $39,400 at private colleges. And the price tag for an undergraduate degree typically goes up every year. Any way you look at it, college is a huge expense for families.

The good news, however, is there are a number of ways to make college more affordable for parents, everything from tax-advantaged college savings accounts to merit- and need-based scholarships to federal student loans.

Smart Ways to Pay for College

What follows are four key strategies that can help you cover the cost of a child’s college education — without going broke.

1. Starting Early With a Savings Plan

There are a variety of accounts to help parents save for college. While you can simply put money aside each month (or year) in a regular savings account, there are advantages to using a savings vehicle that is specifically designed for college savings. Here are two to consider.

529 Savings Plans

A 529 savings plan is a tax-advantaged investment account designed to help save for future education expenses. Your contributions to the account are made with post-tax dollars but, as long as the money stays in the account, no income taxes will be due on earnings. When you take money out to pay for qualified education expenses, those withdrawals may be federal income tax-free — and, in many cases, free of state tax too.

While 529 plans used to be limited to higher education, the funds can now be used for kindergarten through grade 12, as well as certified apprenticeship programs and qualified student loan repayments.

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

Coverdell Education Savings Account

Like a 529, a Coverdell Education Savings Account (ESA) is a tax-advantaged account designed to help save for a child’s future education expenses. Contributions are made on an after-tax basis, but earnings aren’t taxed. When you withdraw the money and use it for qualified education expenses, the investment profits are tax-free.

However, Coverdell accounts come with income and contribution caps. Contributions are capped at $2,000 per year, and you can only make them until your child turns 18. To open and contribute to a Coverdell ESA, your income must be below a certain limit ($110,000 for single filers; $220,000 for married couples).

Coverdell ESA funds must be withdrawn when the beneficiary turns 30, or rolled over to another eligible beneficiary in the family.

2. Looking for Ways to Get Free Money

When figuring out how to pay for your kid’s college, there are numerous resources available, including scholarships, grants, and other forms of financial aid. These sources of “free money” can provide significant assistance to students based on academic merit, extracurricular achievements, or financial need.

Your Free Application for Federal Student Aid (FAFSA) will automatically match you with any federal scholarships and grants you’re eligible for, but there are other types available. You can look for additional funding options on your own using a search engine like FinAid or SoFi’s Scholarship Search Tool.

You can also research various scholarships offered by corporations, foundations, and non-profit organizations related to your child’s interests and intended field of study.

In addition, your child also can check out the high school guidance department for any information, and you may want to make an appointment with a school counselor to get any tips that might help your search.

If your child has a college selected, funding information is usually available on that school’s website as well.

Recommended: How Do You Find Non-Academic Scholarships for College?

3. Considering an After-School Job

Encouraging your child to work part-time during high school or college can contribute to funding their education and teach valuable life skills. A part-time job provides them with their own income, reducing their dependence on student loans and parental contributions.

Many colleges offer work-study programs where students can work on campus or in community service roles while earning money for their education expenses. In addition, summer jobs or internships can be an excellent way for students to save for college during their break.

However, it’s important to strike a balance between work and academics to ensure that your child’s studies remain a top priority. You may need to help your child manage their time efficiently to avoid overworking themselves and compromising their academic performance.

A job won’t pay for everything, but it will pay for some things, and that could mean fewer costs to cover with savings or financing.

4. Researching Student Loan Options

With the high cost of getting a degree these days, you may not be able to avoid taking on at least some student loan debt. You and your child may want to take some time to research and understand all the student loan options out there — both federal and private — and how they work well-ahead of senior year.

The amount a student can borrow in federal loans will depend on their year in college, status as dependent or independent, and the type of loan or loans they take out.

Parents of dependent undergraduate students also can apply for Direct PLUS Loans to help pay for education expenses that aren’t covered by other federal financial aid.

Federal student loans usually have more benefits than loans from banks or other private lenders, so be sure to compare the benefits of each private student loan program, as well as the interest rates and terms.

For example, federal loans offer deferment and forbearance along with programs like Public Service Loan Forgiveness (PSLF) and income-driven repayment plans. Private lenders don’t usually offer such perks and protections. It’s generally recommended that students exhaust all federal loan options prior to borrowing private student loans.

While researching different options for private student loans, you may encounter different ways for you and your child to apply, such as taking on a private student loan yourself or acting as a cosigner for a private student loan.

There are, of course, pros and cons to both of those options, so it’s important to do your due diligence on the private lenders you may be considering. What benefits do they offer? What are their rates and terms? Is there any fine print?

If your child doesn’t qualify for enough federal student aid to cover the cost of attending college, private student loans may be a viable option to look into to close the gap.

💡 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.

The Takeaway

There’s no one-size-fits-all way to pay for college. Students and their families may end up using a blend of savings, scholarships, grants, work-study, and different types of student loans to finance their education. When looking at aid options, you may want to prioritize federal sources of aid before borrowing private student loans.

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

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

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

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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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