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Student loan debt nationwide currently totals $1.774 trillion (including federal and private student loans). The average federal student loan debt balance is $37,717 while the total average balance (including private student loans) is estimated to be $40,505, according to EducationData.org.

Student loan debt is now the second highest consumer debt category in the country behind only housing debt. Around 54% of bachelor’s degree recipients from public and private nonprofit four-year colleges and universities graduate with debt, according to the College Board.

A recent report from EducationData.org details the average student loan debt per borrower (based on federal student loan only) in each state. Overall, residents of Washington, D.C., are the most likely of all U.S. residents to have student debt, averaging $54,945 per borrower. Hawaiians, on the other hand, are the least likely to have student loans outstanding, with just 8.4% of residents in debt.

Student Loan Debt in Each State

Read on for an overview of what student loan debt looks like across the country according to EducationData.org . Note that this data refers to federal student loan debt only; private student loans, which represent 7.2% of all student debt, are not reflected.

Alabama

Average borrower debt: $37,137

Total student loan debt: $23.5 billion

Everything you need to know about student loans & scholarships in Alabama

Alaska

Average borrower debt: $34,024

Total student loan debt: $23.5 billion

Everything you need to know about student loans & scholarships in Alaska

Arizona

Average borrower debt: $35,396

Total student loan debt: $31.4 billion

Everything you need to know about student loans & scholarships in Arizona

Arkansas

Average borrower debt: $33,333

Total student loan debt: $13.0 billion

Everything you need to know about student loans & scholarships in Arkansas

California

Average borrower debt: $37,084

Total student loan debt: $141.8 billion

Everything you need to know about student loans & scholarships in California

Colorado

Average borrower debt: $36,822

Total student loan debt: $28.5 billion

Everything you need to know about student loans & scholarships in Colorado

Connecticut

Average borrower debt: $35,162

Total student loan debt: $17.5 billion

Everything you need to know about student loans & scholarships in Connecticut

Delaware

Average borrower debt: $37,559

Total student loan debt: $4.8 billion

Everything you need to know about student loans & scholarships in Delaware

District of Columbia

Average borrower debt: $54,945

Total student loan debt: $6.5 billion

Everything you need to know about student loans & scholarships in Washington D.C.

Florida

Average borrower debt: $38,459

Total student loan debt: $100.9 billion

Everything you need to know about student loans & scholarships in Florida

Georgia

Average borrower debt: $41,639

Total student loan debt: $68.6 billion

Everything you need to know about student loans & scholarships in Georgia

Hawaii

Average borrower debt: $36,765

Total student loan debt: $4.5 billion

Everything you need to know about student loans & scholarships in Hawaii

Idaho

Average borrower debt: $33,012

Total student loan debt: $7.2 billion

Everything you need to know about student loans & scholarships in Idaho

Illinois

Average borrower debt: $37,757

Total student loan debt: $61.6 billion

Everything you need to know about student loans & scholarships in Illinois

Indiana

Average borrower debt: $32,874

Total student loan debt: $29.8 billion

Everything you need to know about student loans & scholarships in Indiana

Iowa

Average borrower debt: $30,464

Total student loan debt: $13.2 billion

Everything you need to know about student loans & scholarships in Iowa

Kansas

Average borrower debt: $32,578

Total student loan debt: $12.5 billion

Everything you need to know about student loans & scholarships in Kansas

Kentucky

Average borrower debt: $32,779

Total student loan debt: $19.7 billion

Everything you need to know about student loans & scholarships in Kentucky

Louisiana

Average borrower debt: $34,525

Total student loan debt: $22.5 billion

Everything you need to know about student loans & scholarships in Louisiana

Maine

Average borrower debt: $33,137

Total student loan debt: $6.2 billion

Everything you need to know about student loans & scholarships in Maine

Maryland

Average borrower debt: $42,861

Total student loan debt: $35.9 billion

Everything you need to know about student loans & scholarships in Maryland

Massachusetts

Average borrower debt: $34,146

Total student loan debt: $30.8 billion

Everything you need to know about student loans & scholarships in Massachusetts

Michigan

Average borrower debt: $36,116

Total student loan debt: $51.0 billion

Everything you need to know about student loans & scholarships in Michigan

Minnesota

Average borrower debt: $33,604

Total student loan debt: $26.5 billion

Everything you need to know about student loans & scholarships in Minnesota

Mississippi

Average borrower debt: $36,902

Total student loan debt: $16.2 billion

Everything you need to know about student loans & scholarships in Mississippi

Missouri

Average borrower debt: $35,397

Total student loan debt: $29.3 billion

Everything you need to know about student loans & scholarships in Missouri

Montana

Average borrower debt: $33,149

Total student loan debt: $4.2 billion

Everything you need to know about student loans & scholarships in Montana

Nebraska

Average borrower debt: $31,919

Total student loan debt: $7.9 billion

Everything you need to know about student loans & scholarships in Nebraska

Nevada

Average borrower debt: $33,743

Total student loan debt: $11.8 billion

Everything you need to know about student loans & scholarships in Nevada

New Hampshire

Average borrower debt: $34,085

Total student loan debt: $6.5 billion

Everything you need to know about student loans & scholarships in New Hampshire

New Jersey

Average borrower debt: $35,434

Total student loan debt: $42.5 billion

Everything you need to know about student loans & scholarships in New Jersey

New Mexico

Average borrower debt: $34,211

Total student loan debt: $7.8 billion

Everything you need to know about student loans & scholarships in New Mexico

New York

Average borrower debt: $37,678

Total student loan debt: $92.7 billion

Everything you need to know about student loans & scholarships in New York

North Carolina

Average borrower debt: $37,721

Total student loan debt: $49.2 billion

Everything you need to know about student loans & scholarships in North Carolina

North Dakota

Average borrower debt: $28,604

Total student loan debt: $2.5 billion

Everything you need to know about student loans & scholarships in North Dakota

Ohio

Average borrower debt: $34,721

Total student loan debt: $62.3 billion

Everything you need to know about student loans & scholarships in Ohio

Oklahoma

Average borrower debt: $31,525

Total student loan debt: $15.4 billion

Everything you need to know about student loans & scholarships in Oklahoma

Oregon

Average borrower debt: $37,017

Total student loan debt: $20.1 billion

Everything you need to know about student loans & scholarships in Oregon

Pennsylvania

Average borrower debt: $35,385

Total student loan debt: $64.5 billion

Everything you need to know about student loans & scholarships in Pennsylvania

Rhode Island

Average borrower debt: $32,056

Total student loan debt: $4.6 billion

Everything you need to know about student loans & scholarships in Rhode Island

South Carolina

Average borrower debt: $38,414

Total student loan debt: $28.1 billion

Everything you need to know about student loans & scholarships in South Carolina

South Dakota

Average borrower debt: $30,954

Total student loan debt: $3.6 billion

Everything you need to know about student loans & scholarships in South Dakota

Tennessee

Average borrower debt: $36,418

Total student loan debt: $31.4 billion

Everything you need to know about student loans & scholarships in Tennessee

Texas

Average borrower debt: $32,920

Total student loan debt: $120.0 billion

Everything you need to know about student loans & scholarships in Texas

Utah

Average borrower debt: $32,835

Total student loan debt: $10.1 billion

Everything you need to know about student loans & scholarships in Utah

Vermont

Average borrower debt: $37,516

Total student loan debt: $2.9 billion

Everything you need to know about student loans & scholarships in Vermont

Virginia

Average borrower debt: $39,165

Total student loan debt: $42.4 billion

Everything you need to know about student loans & scholarships in Virginia

Washington

Average borrower debt: $35,510

Total student loan debt: $28.0 billion

Everything you need to know about student loans & scholarships in Washington

West Virginia

Average borrower debt: $31,690

Total student loan debt: $7.2 billion

Everything you need to know about student loans & scholarships in West Virginia

Wisconsin

Average borrower debt: $31,894

Total student loan debt: $23.2 billion

Everything you need to know about student loans & scholarships in Wisconsin

Wyoming

Average borrower debt: $31,250

Total student loan debt: $1.7 billion

Everything you need to know about student loans & scholarships in Wyoming

The Takeaway

The average amount of debt held by borrowers varies from state to state. The five states with the highest average amount of student loan debt per borrower are: Washington D.C., Maryland, Georgia, Virginia, and Florida. The five states with the lowest average of student loans per borrower are: Wyoming, South Dakota, Iowa, North Dakota, and Puerto Rico. North Dakota is the only state where the average borrower owes less than $30,000.

For millions, student loans and student loan refinances are a necessary part of paying for college. When federal aid and savings aren’t enough to pay for school, some borrowers turn to private student loans. These are available from banks, credit unions, and online lenders. While private lenders are not required to offer the same benefits or protections as federal student loans, they can be helpful for borrowers who have tapped other resources and are looking to fill in gaps in funding.

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.

Photo credit: iStock/FangXiaNuo

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

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

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


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

SOIS0923017

While college is a good option for many people, it isn’t for everyone — and not going to a four year college doesn’t mean you can’t have a meaningful career.

More people than ever before have a college degree, but a four-year program isn’t the only way to be successful. Even employers are realizing that there are many skills that can’t be captured in a degree program. In fact, some major tech companies, including Google and Apple, no longer require applicants to have a four-year degree for some of their positions.

There are certain jobs for which you need a college degree, like an electrical engineer, marketing manager, or teacher, but there are plenty of careers out there that don’t require additional degrees.

Reasons You Should Not Go To College

There are a number of valid reasons to delay college — or put it off entirely. Here are some to consider:

•   You’re not excited about your options. Maybe you didn’t get into the schools you expected to or you’re having second thoughts when you try to imagine yourself attending the schools you did get into. If the thought of college fills you with dread or doubt rather than excitement, taking a year off to reassess your options can be a good strategy.

•   You’re unsure what career you are interested in pursuing. You may want to explore different options by being exposed to college-level courses at a community college, or spend time volunteering, working, or traveling.

•   You’re already working. If you already have a job, you may be wanting to lean into your current job or save money to go to school in a few years.

•   You’re exploring non-degree avenues. There are many high-paying trades that don’t require a degree but may require on-the-job experience or an apprenticeship.

•   You have a plan for a gap year. Some people like to take a year to travel, work, or otherwise take a break in between high school and college to further explore their identity and what they want to do in the future.

•   You feel you’re going to college only to please your family. If you feel pressured to go to college, it may be a sign that college isn’t the right option for you, at least right now.

•   You have essential family obligations. Some students need to help their families and may not be able to take time off to go to school. These students may consider community college or a part-time degree program. Speaking with your current high school counselor may help you find ways to juggle multiple responsibilities.

•   You want to take time to pursue a talent. From sports to the performing arts to a creative path, some people choose to explore a talent more seriously, focusing time, energy, and resources prior to going to college. This can be a decision you make with the help of your family and any coaches or teachers.

Reasons You Should Go To College

College can be a great time to grow and learn and, for some, it’s a natural step. Here are some other reasons why college may make sense:

•   You’re excited and realistic about college. You recognize college may have ups and downs but feel confident that college feels “right” as your next step — not just something your family or teachers expect from you.

•   A college degree will help you achieve your career goals. You’ve done your research and/or talked with alums and people working in your targeted field and feel confident that college makes sense for your career goals.

•   College fits into your overall financial plan. You have a sense of how much college will cost and a plan for how you will pay for it, which might include a combination of financial aid, savings, and federal or private student loans. You also want to make sure you will be able to manage any student loan payments after you graduate.

•   You have a ‘Plan B’ in case you realize that college isn’t the right fit. Sometimes people realize one semester into school that college may not be what they need at that moment in their lives. It can be helpful to talk about what this may be, so that you don’t feel trapped if school doesn’t feel like it’s a good fit.

Source: National Center for Education Statistics

Recommended: what is considered full time student

Alternatives to a College Degree

Just because you aren’t interested in a four-year degree doesn’t mean you need to forgo higher education entirely. Alternative educational models, like trade schools and community colleges, offer many practical certification and two-year associate degree programs that can help you get ahead.

It is important to know that even if you’re not planning to pursue a four-year degree, you still have options when it comes to creating a career that is right for you.


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

Trade School

Sometimes known as technical or vocational schools, trade schools can prepare you for a specific job, such as a dental hygienist, electrician, cosmetologist, or web developer. These programs are normally much shorter than four years, and certain programs may allow you to finish in only a few months. There are both public and private trade schools.

Trade schools don’t award bachelor’s degrees. Instead, when you graduate from a trade school, you typically receive a diploma or certificate indicating that you are trained and certified to perform a specific job. Some trade school programs do offer associate degrees, which are the same type of degrees offered by many community colleges.

Recommended: How to Know if Trade School is Right for You

Community College

As mentioned above, community colleges usually offer two-year degrees called associate degrees. These degrees can either stand alone or be a stepping stone to obtaining a bachelor’s degree at a four-year school.

Indeed, many community colleges offer career preparation programs that are designed to help students jump into the workforce without the need for a bachelor’s degree.

Community college could also be a great way to test out college life and see if you want to continue pursuing higher education. They tend to be much less expensive than four-year universities, which means it won’t cost you an arm and a leg before you decide if higher education is right for you.

Apprenticeships

Apprenticeships are paid positions designed to teach the apprentice about a specific job or industry. They can help you learn how to use industry-specific tools and technologies and help you develop your skills over a period of time. This may be in fields as diverse as plumbing to transportation engineering to baking.

Apprenticeships can be a win-win for employers and employees because they allow those starting out to begin working (and earning a paycheck) immediately, and they help employers fill vacant jobs.

Recommended: A Complete Guide to Apprenticeships

Certificate Programs

Similar and sometimes overlapping with trade schools, certificate programs offer specialized training in a specific area. This may include coding, cybersecurity, yoga, fitness, getting a commercial driver’s license (CDL) or other areas where specialized knowledge may be a prerequisite. These certificates may also be helpful in making job seekers eligible for positions with higher starting salaries.

Recommended: Are Coding Bootcamps Worth the Money?

Taking a Gap Year

A gap year is when a student takes a year off between high school and college. Some colleges allow accepted students to defer for a year, holding a place for them in the next year’s incoming class. Some people create a travel itinerary, others may work or volunteer for the year. There are some gap year programs that create opportunities for students, but keep in mind that some programs may be costly.

Starting a Business

If you are already passionate about — and have a lot of knowledge about — a specific field or industry, you might consider skipping college altogether and jumping into that business.

Starting your own business takes a lot of hard work, but it could mean that you get to be your own boss and work in an industry you love. And because you could quickly become an expert on the products or services you provide, you aren’t necessarily at a disadvantage because you lack a degree.

If You Do Go the College Route

There are plenty of options if you choose not to attend a four-year college. However, there are also options within the world of college, including the type of college you choose, the major you decide to pursue, and how you pay for college.

There’s no denying that college can be expensive. In the 2022-2023 school year, the average cost for tuition and fees at an in-state college was $10,423, while the average sticker price for a private college was $39,723. And, these numbers don’t include room and board. This can be a big financial commitment, especially if you are on the fence about pursuing higher education.

That’s why it can be a good idea to begin creating a payment strategy early. A great first step is to fill out the Free Application for Federal Student Aid (FAFSA) to see how much federal aid — including scholarships, grants, work-study, and federal student loans — you qualify for.

Federal student loans do have limits on how much a student can borrow each year they are enrolled in school. Some students may need additional funds to bridge the gap. In that case, some may consider borrowing a student loan from a private lender, such as a bank or credit union, to help cover college costs.

In general, it can be a smart idea to tap all your federal loan and grant options before you consider private student loans. That’s because federal loans offer some protections, such as deferment options, that private loans may not. However, private loans can cover up to 100% of the cost of attendance, including money to pay for books, room and board, and personal expenses.


💡 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

College can lead students on a new career path, but depending on your goals and other factors, may not be necessary. Some students may choose to pursue a trade or vocational program instead of a four-year degree, while others may simply want to wait a year or so to earn and save more money to cover the cost of going to college.

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.

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

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


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

SOIS0923012

Taking college classes at night can be a convenient option for students who have to balance work and school. However, doing your coursework in the evenings can be a big adjustment, especially if you’re used to taking classes during the day. Staying focused after a long day of work or rewiring your brain to study at night can be challenging.

Whether you’re gearing up for a degree’s worth of night school or a one-off evening class, take a look at these tips to survive night classes.

Nocturnal Animals

Generally speaking, night classes take place between 5 p.m. and 10 p.m. College night classes typically follow the traditional semester schedule, though there may be shorter timelines for special-interest topics or certificate programs.

Because night classes are geared toward nontraditional students with family and work obligations, they typically occur once a week for two to four hours, but it depends on the course credits and subject matter.

Although this condensed format may mean fewer trips to campus, it can also make for much longer days. Students may want to keep the following issues in mind.


💡 Quick Tip: Pay down your student loans faster with SoFi reward points you earn along the way.

Controlling Caffeine Cravings

When feeling tired, it may be a natural inclination to grab a cup of coffee or other caffeinated beverage to get a boost of energy and keep going. While this may help a student get through a night class or hammer out an assignment at the last minute, it can disrupt sleeping patterns, creating further fatigue the next day.

Caffeine can last up to 12 hours in the system after consumption. Even for night owls, a coffee (or energy drink) after lunch could keep them awake well beyond when you want to go to bed.

If cold turkey seems like too drastic a change, you might want to try experimenting with less-caffeinated beverages, such as tea. Everyone is different, and the goal is finding the sweet spot between staying awake and engaged during night classes and not losing precious sleep later on.

Recommended: The Ultimate Guide to Studying in College

Staying Nourished and Hydrated

Staying focused during night classes can take practice and preparation. Packing healthy snacks and water is one way to maintain energy and feel comfortable as class discussions and lectures progress into the later evening hours.

If a professor doesn’t permit eating in the classroom, a student can likely squeeze in a quick bite beforehand or during break time.

Remaining Active

Between work, studying, class time, and other obligations, exercising may seem like a luxury that there isn’t enough time for. This can feel especially true on days when a full day at work is followed by a three-hour night class.

The Department of Health and Human Services recommends that adults complete at least 150 minutes of moderate-intensity exercise a week. Broken down over the whole week, that’s about 20 minutes of exercise a day.

If you’re really in a pinch, fitting in a brisk walk before night classes start or during the midway break in a three-hour seminar can help with your energy and work toward meeting the 150-minute threshold.

Befriending Classmates

Night classes can draw a more diverse student body than traditional college classes. For discussion-oriented classes, this can enrich the conversation with more perspectives.

It is also an opportunity to network and find a study buddy or two. Because night classes usually meet only once a week for a 15-week semester, even one absence could lead to falling behind or missing out on critical information. Classmates can be a resource for sharing notes and staying in the loop on what happened in class.

Also, becoming friends with classmates could make lengthy night classes more fun and add motivation to keep up strong attendance.

Recommended: Should I Go to Community College?

Creating a More Flexible Work Schedule

Even full-time students can expect to have at least one or two nights free from scheduled classes. If you have a flexible work schedule, you’re already in a position to craft an ideal balance of work, school, and social life.

However, if you’re working some version of the standard 9-5 schedule five days a week, the days with back-to-back work and class can feel like a marathon. Getting an education takes work, but you may not get the most out of it if it becomes something you dread.

Redistributing work hours to accommodate your night class schedule might prevent burnout. For instance, being able to come in an hour later on mornings after night classes and make them up later in the week can spread out the workload and help in catching up on sleep.

Talking to supervisors may feel intimidating, but if your college night classes are providing skills and knowledge to perform better at your job, you can make a case for getting some wiggle room at work while you finish school.

Recommended: Is it Possible to Take Online Classes While Working?

Avoiding Procrastination

As school traditionally runs from morning to early afternoon, conventional wisdom dictates completing homework and assignments the night before, at the latest. With night classes, the window to procrastinate can be extended later in the day.

Planning can help a student avoid a situation that requires picking between going to work or completing an assignment for class. Mapping out assignment due dates at the onset of the semester is one method to stay on track.

Managing Time

Between exams and papers, college classes often have a steady stream of readings and assignments to keep up with from week to week. Setting aside specific time frames to study for each class may counteract an urge to slack off between major assignments. Repetition can also improve knowledge retention, compared with cramming at the last minute.

After taking care of other responsibilities, such as an internship, job, or team practice, it may be difficult to recall readings and information at the end of a long day. Finding a moment before night class to review your notes could better prepare you to participate in discussion or ace a quiz. Creating a brief study guide covering key themes and topics for each week could help if you’re pressed for time.

Pacing Yourself

Before going full steam ahead with a full course load, you can consider testing the waters with one or two night classes. Education is a financial and career investment, and figuring out what’s right for your work-life balance could be the difference between burning out and graduating.

Keep in mind that whether you study full time or part time could affect financial aid or scholarships.

Exploring Night Class Options

Night classes are offered at community colleges and four-year universities alike. Researching multiple options could help a student find an ideal balance of cost, reputation, student body demographics, and campus environment.

Online courses are another option to consider. Synchronous courses may still have online lectures and discussions but allow students to participate from the comfort of home.


💡 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.

Paying for Night Classes

Education comes at a cost. Beyond tuition, taking night classes may require buying textbooks, paying for a parking pass, and other associated fees.

Work-study programs, scholarships, and grants could cover all or part of these expenses, but some students take out loans to pay the remaining cost for their degree or night classes.

Federal loans may be subsidized or unsubsidized and come with protections, such as income-driven payment plans and forbearance in certain cases.

When federal loans and other aid aren’t enough, private student loans are an option to consider. These loans are available through private lenders, including banks, credit unions, and online lenders. Rates and terms vary, depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

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.

SOIS0823034

You’ve done it all. You worked hard in your high-school classes, prepped for and took the SAT/ACT, and spent countless hours doing extracurricular activities. And, now, it’s time to write the dreaded college application essay. This is your chance to pour your personality and point of view into an essay that could shape the next phase in your life.

No pressure, right? It’s common for high school students to feel overwhelmed by the whole application process, especially if you’re unsure how to write a college essay. You’re not alone, as many teens dread having to write about themselves in a personal statement. To help calm your nerves (and make the process a little less intimidating), here’s a closer look at what the college essay is all about, plus some simple tips for writing a compelling application essay.

How Personal Statements Differ By School

The number of colleges you apply to can impact how many personal statements you’ll need to write. Before you begin the essay-writing process, you’ll want to review the personal statement requirements for each school you plan to apply to. Some colleges have the same essay requirements, while others might request statements tailored to a school-specific prompt.

When looking at essay requirements from different school, here are some things to consider:

•   How long should this college essay be?
•   What is the essay prompt or topic asking?
•   What questions are they looking to have answered?
•   What does this college or university value?

Different schools will often ask applicants to respond to the same or similar essay topic. In this case, it’s possible to submit one personal statement to multiple universities. In other instances, you might simply need to make small tweaks to an already drafted essay.

Colleges that are all part of the same university system — such as state schools, like those under the California State University umbrella — tend to share applications and essay requirements. (In practice, this means applicants won’t need to write individual essays for each school within that system.)

Essay requirements for private schools can vary. If you’re applying to schools that don’t use the common app (more on that in a minute), you may need to submit a completely custom application to each school. Some private schools (such as religiously-affiliated schools) may look for shared values to be reflected in a student’s application and essay.

Fortunately, many schools accept the Common Application in order to simplify the application process and support time-crunched students. The Common App represents almost 900 public and private higher education institutions across the world. Its standardized application allows students to apply to multiple schools via a single platform. Practically speaking, this might translate into writing just one college essay that multiple schools can then access. Typically, the Common App offers seven essay prompts for the required 650-word personal statement.


💡 Quick Tip: With benefits that help lower your monthly payment, there’s a lot to love about SoFi private student loans.

College Application Essay Tips

Before putting pen to paper or fingers to the keyboard, it can help to understand what admissions offices look for in a personal statement, and how to write a college essay that gives voice to who you are. Some pre-planning can also make the application process feel less confusing and the essay-writing process more fun.

What follows are some useful tips for writing a stronger college application essay.

Tip #1: Start Early

The sooner you can begin writing your college essay (or in some cases multiple essays), the more time you’ll have to polish and refine. The time it takes to write a college essay will vary greatly by the student, as well as which schools they are applying to. You may need to only write one essay that you can submit to multiple schools, or you may need to write half a dozen custom essays for your applications.

Generally, it’s a good idea to start the process at least two months before your first deadline — that should give you ample time to brainstorm, write, and edit your essays. Ideally, you’ll want to start the process over summer vacation. This will help alleviate stress during the school year and give you even more time to perfect your essays.

Starting the personal statement earlier not only gives you extra time for fine-tuning the wording, it also allows ample time for starting over (if need be). Starting over may sound like the last thing you’d want to do when applying to college, but it’s an option that many value — a chance to rework their personal story.

A lot of college applicants know exactly what they want to write about. But, after beginning the essay-writing process, some realize that the topic they picked just isn’t strong enough to stand on its own. Alternatively, some applicants find that starting on a given prompt actually leads them towards a topic or essay idea.

Either way, starting early helps ensure you have enough time to mull over what to write about and how exactly to say it in a clear and compelling way. It also gives you time to simply sit and brainstorm essay ideas and create a few potential personal statement outlines.

Even with clear essay prompts, you may need a little extra inspiration to jump-start the essay-writing process. You may find it helpful to search online for and read college essay examples that helped real students get into their dream schools. These real-life examples can serve as models for how to present a personal story and organize an essay that commands attention.

By starting the writing process in advance, you’ll have plenty of time to ink a few drafts, ask for feedback from family and teachers, and make any necessary tweaks — something that’s especially key when applying to schools with different essay requirements. The whole essay-writing process can be far more enjoyable (and, ideally, more impactful) when applicants don’t feel like they’re up against a clock that’s quickly ticking down.

Recommended: Important College Application Deadlines

Tip #2: Step Away From Your Application

When writing a personal statement for college applications, it’s a good idea to consider carefully who will read the essays (and what the admission committee is looking for). Try to put yourself in the shoes of the admissions counselors. After reviewing the non-essay portion of your application, admissions officers will typically have a clear sense of your previous coursework, grades, volunteering, and extracurricular activities.

So, when deciding which essay topic to write about, it can be helpful to ask yourself: “Would they already know this about me just by reading the rest of my application?” The whole point of the personal statement is to humanize the accomplishments that get listed elsewhere in the application. Because of this, it’s often advisable to go beyond repeating the resume items mentioned in other sections of the application in the essay.

College admission counselors want to get to know the person behind those accomplishments (not to read another laundry list of achievements). The essay is your chance to share who you are and how you view the world.

Recommended: 10 Ways to Prepare for College

Tip #3: Identify What Type of Essay You Need to Write

Typically, college applicants will encounter three different types of essay questions:

•   the “you” prompt
•   the “why us?” topic
•   the “creative” question

The “you” style question tends to ask students to share more personal details or life experiences in the essay. Such personal narratives can help colleges and universities to learn what drives, inspires, and shapes individual applicants.

The “why us?” prompt seeks to understand why a student is choosing to apply to a specific school. The admission officer here is trying to gauge how committed each student is to their individual institution. It’s a chance to demonstrate an understanding of a school’s core values and for the applicant to specify why they want to attend that university in particular (and not another one).

The “creative” prompt usually serves to evaluate a student’s creative thinking and writing skills, all while reviewing an applicant’s knowledge base and education.

Before writing any college essay, it’s important to identify exactly which type of question you’ll be answering and how best to communicate who you are in a concise, non-cliched way.

Recommended: The Ultimate Guide to Liberal Arts Colleges

Tip #4: Focus on What Matters to You

To really wow admissions officers in the college essay, you might try to tap into your passions, personal experiences, and interests that go beyond high school academics. It can be helpful to step away from school accomplishments and bring up topics such as a life experience that left a lasting impression, a cause you care deeply about, or a personal relationship that shaped you.

It can be important to reflect — not just recount or summarize — during the essay writing process. In order to stand out amongst thousands of other talented applicants, you may want to go beyond a factual retelling of your experiences to craft a thoughtful assessment of why a given topic matters to you as an individual.

Recommended: College Planning Guide for High School Students

Tip #5: Find a Trusted Reviewer

You don’t necessarily have to shell out big bucks on a private tutor or writing coach to review your college essays (although there’s nothing wrong seeking one out ). Before submitting an essay, you may want to invite a trusted teacher, family member, or friend to read the essay over and offer comments or questions. When asking for detailed feedback, here are some helpful questions to ask a reviewer to keep in mind:

1. Are there any spelling or grammar mistakes I need to change?
2. Is the organization of my essay easy to follow?
3. Did you have any questions while reading that my essay didn’t answer?
4. Did the content capture your attention or was it difficult to finish the entire essay? Why?
5. Where is there room for improvement?
6. Is any section confusing or unclear?

Having a handful of trusted eyes review your essay can help you draft a more impactful personal statement. However, you may want to avoid inviting too many editors to comment on an essay that’s still being drafted. Writing is somewhat subjective. So, receiving a lot of competing opinions might leave you feeling flustered or confused about what to change.


💡 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.

You Got In. Now What?

Congratulations! All that hard work and pre-planning paid off. Your college essay really knocked the socks off the admissions officers. Once you’ve received all of your college acceptance offers, you’ll be able to decide which college is the best option for your future plans. It’s likely how much it will cost to attend college might play a factor in your ultimate decision.

Colleges and universities offer different financial aid packages, which will impact your cost of attendance. Financial aid may include grants, scholarships, work-study, and federal student loans (which may be subsidized or unsubsidized). Your financial aid package is based on the information you provided in the Free Application for Federal Student Aid (FAFSA).

If there are still gaps in funding, you also have the option of seeking a private student loan. These are available through private lenders, such as banks, credit unions, and online lenders. Rates and terms vary, depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, though, that private loans may not offer the borrower protections — like income-based repayment plans and Public Service Loan Forgiveness — that automatically 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.

SOIS0823031

Can you pay off someone else’s loan? As a general rule, yes — so if you’re a student loan borrower and someone offers you assistance in paying off your loans, you may want to take them up on it. But it’s important to understand the implications. While a parent, grandparent, or even a mysterious benefactor could pay off your student loans, they may be responsible for a gift tax if they contribute more than the annual limit. The gift could also come with emotional strings attached.

Read on to learn about the tax implications of paying off someone else’s student loans — and how to repay your loans if the responsibility is all yours.

Student Loan Repayment

For federal student loan borrowers, the end of the three-year pause on federal student loan payments has made repayment top of mind again. The resumption of federal student loan payments, which was part of the debt ceiling bill President Joe Biden signed into law in early June 2023, requires interest accrual to resume on September 1, 2023, and payments to resume on October 1, 2023. (Borrowers who held private loans did not have any uniform break in payments.)

Additionally, the President’s plan to forgive up to $20,000 in federal student loan debt was struck down by the Supreme Court in late June 2023. That means federal student loan borrowers no longer have that course of action.

The bottom line: If you have a student loan balance, it needs to be paid. If you have a cosigner — which may be the case if you have private student loans or federal PLUS Loans — then that person is legally responsible for repaying the loans if you are unable to do so. But if your student loans are solely in your name, you are responsible for repayment according to the outlined terms.

Getting Help From Your Employer

More employers are offering student loan repayment as a perk. Through CARES Act legislation, employers can contribute up to $5,250 per employee per year toward student loans without the payment counting toward the employee’s taxable income, through 2025.


💡 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.

Can Parents Pay Off Their Child’s Student Loans?

Yes they can. But can parents pay off student loans without a gift tax? It depends. If a parent is a cosigner, paying the student loans in full will not trigger a gift tax. In the mind of the IRS, the parent is not providing a gift but is paying off a debt.

However, if a parent is not a cosigner, a gift tax could be triggered, depending on how much they pay.

How the Gift Tax Works

The gift tax applies to the transfer of any type of property (including money), or the use of income from property, without expecting to receive something of at least equal value in return, the IRS says — adding that if you make an interest-free or reduced-interest loan, you may be making a gift.

There are some exceptions. Gifts between spouses aren’t included in the gift tax. That means if you are married and your spouse pays off your loans, that would not trigger a gift tax event. (The IRS includes lawfully married same-sex couples.)

Tuition paid directly to qualifying educational institutions in the United States or overseas is also not subject to gift tax. But student loans are different.

The annual exclusion for gifts is $17,000 in 2023. That means an individual can give you up to $17,000 without triggering the gift tax, which the givers, not receivers, generally pay. If your parents file taxes jointly, they would be able to give a combined $34,000 a year, which could include paying down loans. Borrowers who have the good fortune to snag $17,000 from Mom, Dad, Granddad, and Grandma could get a total of $68,000 without any family member having to file a gift tax return.

Note, though, that even a gift of more than $17,000 towards your student loans doesn’t mean that your generous benefactor is on the hook for paying a tax on their gift. The excess amount just gets added to the lifetime exclusion — currently set at $12.92 million. As long as the benefactor’s total lifetime gifts are below that amount, they don’t have to worry about paying a gift tax. Still, if bumping against that lifetime exclusion is a concern, they can spread out their support over the years to avoid gifting you more than $17,000 in a calendar year.

The upshot is that the main concern when it comes to helping children out with their student loans is probably not the gift tax, but whether the parent can afford it. It’s a good idea for parents to consider their retirement plans and test what-ifs before offering to pay their children’s student loans. Working with a financial planner may help parents find a path that works for them and their children.

It’s also not an all-or-nothing decision. Some parents choose to pay a portion of student loans or offer cash toward repayment in lieu of other gifts.

Recommended: Should Parents Cosign on Student Loans?

What Happens When Someone Pays Off Student Loans For You?

A person can pay off student loans for you in a couple of ways:

•   Pay the lender directly

•   Pay you, with the expectation you will pay the lender

But if someone pays off your debt, is that income? Once another person has paid off your student loans, it’s as if you had paid them off yourself. You would not have any tax liability.

Other Options to Pay Off Student Loans

Not everyone has a benefactor, of course. While someone taking your student loan balance down to zero can seem like a dream, there are realistic ways to ease the burden of student loans, no third party required.

These strategies include student loan consolidation, student loan refinancing, and in some cases, student loan forgiveness.

The one thing that won’t help: if you stop paying your student loans. Ignoring your student loan payments will result in an increased balance, additional fees, and a lower credit score.

If you hold federal student loans and stop paying them, part of your wages could be garnished, and your tax refund could be withheld. If you default on a private student loan, the lender might file a suit to collect from you.

In other words, coming up with a repayment plan is crucial.


💡 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.

What Is Student Loan Consolidation?

If you have federal student loans, you may consider consolidation, or combining multiple loans into one federal loan. The interest rate is the weighted average of all the loans’ rates, rounded up to the nearest one-eighth of one percentage point.

Federal student loan consolidation via a Direct Consolidation Loan can lower your monthly payment by giving you up to 30 years to repay your loans. It can also streamline payment processing.

Consolidating federal loans other than Direct Loans may give borrowers access to programs they might not otherwise be eligible for, including additional income-driven repayment plan options and Public Service Loan Forgiveness.

What Is Student Loan Forgiveness?

Although President Biden’s federal forgiveness program was blocked by the Supreme Court, there are still several paths toward student loan forgiveness for federal student loan holders. They include:

•   Income-based repayment. Federal income-driven repayment plans promise loan forgiveness after a certain amount of time, depending on the plan.

For instance, under President Biden’s new SAVE Plan, which is based on income and family size, qualifying federal student loan borrowers with undergraduate federal loans can get their monthly payments reduced by half — from 10% to 5% of their discretionary income. And after 10 to 20 years of making payments (the number of years depends on how big their original student loan balance was), the remainder of what they owe will be forgiven.

•   Public Student Loan Forgiveness: This federal program was designed to help graduates working in public service have any remaining loan balance forgiven if they meet criteria that include working for a qualifying organization and making 10 years’ worth of payments.

•   Disability discharge: Some people may have their loans forgiven because of total and permanent disability.

What about bankruptcy? It’s extremely difficult to have student loans discharged through bankruptcy.

What Is Student Loan Refinancing?

With student loan refinancing, a borrower takes on one new, private student loan to pay off previous federal and/or private student loans. Ideally, the goal is a lower interest rate. The repayment term might also change.

However, there is a very important caveat for those with federal student loans: Refinancing those federal loans means that borrowers will no longer be eligible for federal repayment plans, forgiveness programs, and other benefits. If a borrower needs access to those programs, student loan refinancing won’t make sense.

But for borrowers who have no plans to use the federal programs, a lower rate could make refinancing worthwhile. Using a student loan refinancing calculator can help a borrower see how much money they might save by refinancing one or all of their loans.

Refinancing Student Loans With SoFi

Even if your parents, grandparents, or others in your life are not in a position to pay off your student loans for you, understanding your options for potentially lowering your monthly payments or saving money over the life of a loan can give you multiple avenues to explore as you work toward taking control of your finances.

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

FAQ

Can I pay off my child’s student loans?

Yes, you can pay off your child’s student loans. But, depending on the amount, there may be tax implications.

Is paying off a child’s student loans considered a gift?

Yes. Paying student loans for someone else is considered a gift and would incur a gift tax for any gift above $17,000, which is the gift exclusion cutoff for 2023.

That means both parents can contribute $34,000 per calendar year toward their child’s student loans without owing gift tax.

Can I pay off my sibling’s student loans?

Yes. You can absolutely win sibling of the year and pay off your sibling’s student loans. Just know that any gift above $17,000 in 2023 will trigger a gift tax that you will be responsible for paying.

Photo credit: iStock/Halfpoint

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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.

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.