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There are so many upsides to investing in your education — the personal enrichment and possibility of a bright and fruitful future being the most obvious. But, there are also some potential downsides that are hard to ignore, one of the main ones being the debt you may accrue.

If you’re a student loan borrower, you’ve probably noticed that your loans have a language all their own. Getting a grasp on terms like interest rate vs. APR, subsidized vs. unsubsidized loans, and fixed vs. variable interest rates can help you make more informed, confident decisions.

Instead of enrolling in Student Loan Language 101, you can use our quick reference guide to find some answers without information overload. Borrowing money can have long-term financial consequences, so it’s important to fully understand the fees and interest rates that will affect the amount of money you owe.

Here are a few of the most important terms to understand before you take out a student loan:

Common Student Loan Terminology

Academic Year

An academic year is one complete school year at the same school. If you transfer, it is considered two half-years at different schools.

Accrued Interest

Accrued interest is the amount of interest that has accumulated on a loan since your last payment. You can keep student loan accrued interest in check by making your payments on time each month. However, after a period of missed or reduced payments, accrued interest may be “capitalized,” which essentially means you have to pay interest on the interest!

Adjusted Gross Income (AGI)

AGI is an individual’s gross income, less any payroll deductions or adjustments. Income includes things like wages, salary, any interest or dividends you may earn, and any other sources of income. You can find your AGI on your federal income tax returns.

Aggregate Loan Limit

The aggregate loan limit is the maximum amount of federal student loan debt a borrower can have when graduating from school. The aggregate loan limits vary depending on whether you are a dependent or independent student.

Recommended: What Is the Maximum Student Loan Amount for a Lifetime?

Amortization

Amortization refers to the amount of loan principal and interest you pay off incrementally over your loan term. Each student loan payment is a fixed amount that contributes to both interest and principal. Early in the life of the loan, the majority of each payment goes toward interest. But over time as you pay down your loan balance, the ratio shifts and most of the payment goes toward the principal.

Annual Percentage Rate (APR)

APR is the annual rate that is charged for borrowing, expressed as an annual a percentage. APR is a standardized calculation that allows you to make a more fair comparison of different loans. Consider the difference between interest vs. APR — APR reflects the cost of any fees charged on the loan, in addition to the basic interest rate. Generally speaking, the lower your APR, the less you’ll spend on interest over the life of the loan.

Annual Loan Limit

The yearly borrowing limit set for federal student loans.

Automated Clearing House (ACH)

An electronic funds transfer is sent through the Automated Clearing House system. The ACH is an electronic funds transfer system that helps your loan payment transfer directly from your bank account to your lender or loan servicer each month.

The benefits of ACH are two-fold — not only can automatic payments keep you from forgetting to pay your bill, but many lenders also offer interest rate discounts for enrolling in an ACH program.

Award Letter

An award letter is sent from your school and details the types and amounts of financial aid you are eligible to receive. This will include information on grants, scholarships, federal student loans, and work-study. You will receive an award letter for each year you are in school and apply for financial aid.

Award Year

The academic year that financial aid is applied to.

Borrower

The borrower is the person who took out a loan. In doing so, they agreed to repay the loan.

Campus-Based Aid

Some financial aid programs are administered by specific financial institutions, such as the federal work-study program. Generally, schools receive a certain amount of campus-based aid annually from the federal government. The schools are then able to award these funds to students who demonstrate financial need.

Recommended: Am I Eligible for Work-Study?

Cancellation

This refers to the cancellation of a borrower’s requirement to repay all or a portion of their student loans. Loan forgiveness and discharge are two other types of loan cancellation.

Capitalization

Capitalization is when unpaid interest is added to the principal value of the student loan. This generally occurs after a period of non-payment such as forbearance. Moving forward, the interest will be calculated based on this new amount.

Capitalized Interest

Accrued interest is added to your loan’s principal balance, typically after a period of non-payment such as forbearance. When the interest is tacked onto your principal balance, your interest is now calculated on that new amount.

Most student loans begin accruing interest as soon as you borrow them. While you are often not responsible for repaying your student loans while you are in school or during a grace period or forbearance, interest will still accrue during these periods. At the end of said period, the interest is then capitalized, or added to the principal of the loan.

When interest is capitalized, it increases your loan’s principal. Since interest is charged as a percent of principal, the more often interest is capitalized, the more total interest you’ll pay. This is a good reason to use forbearance only in emergency situations, and end the forbearance period as quickly as possible.

Cosigner

A cosigner is a third party, such as a parent, who contractually agrees to accept equal responsibility in repaying your loan(s). A student loan cosigner, also known as an endorser, can be valuable if your credit score or financial history are not sufficient enough to allow you to borrow on your own.

With a cosigner, you are still responsible for paying back the loan, but the cosigner must step in if you are unable to make payments. A co-borrower applies for the loan with you and is equally responsible for paying back the loan according to the loan terms on a month-to-month basis

Consolidation (through the Direct Loan Consolidation Program)

Student loan consolidation is the act of combining two or more loans into one loan with a single interest rate and term. The resulting interest rate is a weighted average of the original loan rates — rounded up to the nearest one-eighth of a percentage point.

Only certain federal loans are eligible for the Direct Consolidation Program. Consolidating can make your life simpler with one monthly bill, but it may not actually save you any money. You may be able to reduce your monthly payments by increasing the loan term, but this means you’ll pay more interest over the life of the loan.

Consolidation (through a Private Lender)

Consolidation is the act of combining two or more loans into one single loan with a single interest rate and term. When you consolidate loans with a private lender, you do so through the act of refinancing, so you’re given a new (hopefully lower) interest rate or lower payments with a longer term.

By refinancing, you may be able to lower your monthly payments or shorten your payment term. (Note: You may pay more interest over the life of the loan if you refinance with an extended term.)

Recommended: What Is a Direct Consolidation Loan?

Cost of Attendance

Cost of attendance is the estimated total cost for attending a college based on the cost of tuition, room and board, books, supplies, transportation, loan fees, and miscellaneous expenses. Schools are required to publish the cost of attendance.

Credit Report

Credit reports detail an individual’s bill payment history, loans, and other financial information. These reports are used by lenders to evaluate your creditworthiness.

Default

Default is failure to repay a loan according to the terms agreed to in the promissory note. Defaulting on your student loans can have serious consequences, such as additional fees, wage garnishment, and a significant negative impact on your credit. It’s always better to talk to your lender about potential hardship repayment options, such as deferment or forbearance, before defaulting on a loan.

Deferment

Deferment is the temporary postponement of loan repayment, during which time you may not be responsible for paying interest that accrues (on certain types of loans). Student loan deferment can be useful if you think you’ll be in a better place to pay your loans at a later date. However, deferment is usually only available for certain federal loans. To potentially cut down on interest, it may be wise to weigh your deferment options.

Delinquency

When you miss a student loan payment, the loan becomes delinquent. The loan will be considered delinquent until a payment is made on the loan. If the loan remains in delinquency for a specified period of time (which varies for federal vs. private student loans), it may enter default.

Direct Loan

The Direct Loan program is administered via the U.S. Department of Education. There are four main types of direct loans including Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

Direct PLUS Loan

Direct PLUS Loans are types of federal loans that are made to graduate or professional student borrowers or to the parents of undergraduate students. Direct PLUS Loans made to parents may be referred to as Parent PLUS Loans.

Disbursement

When funds for a loan are paid out by the lender.

Discharge

Student loan discharge occurs when you are no longer required to make payments on your loans. Typically, student loan discharge occurs when there are extenuating circumstances, such as the borrower has experienced a total and permanent disability or the school at which you received your loans has closed.

Discretionary Income

Discretionary income is the money remaining after you pay for necessary expenses. An individual’s discretionary income is used to help determine their loan payments on an income-driven repayment plan.

Enrollment Status

Determined by the school you attend, your enrollment status is a reflection of where you stand with the school. It includes full-time, half-time, withdrawn, and graduated.

Expected Family Contribution (EFC)

Now known as the Student Aid Index (SAI), it’s an estimation of the amount of money a student and their family is expected to pay out of pocket toward tuition and other college expenses.

Federal Work-Study

A type of financial aid, students who demonstrate financial aid may qualify for the federal work-study program, where they work part-time to earn funds to help pay for college expenses.

Financial Aid

Financial aid is funds to help pay for college. Financial aid includes grants, scholarships, work-study, and federal student loans.

Financial Aid Package

An overview of the types of financial aid you are eligible to receive for college, financial aid packages provide information on all types of federal financial aid and college-specific aid such as scholarships, grants, work-study, and federal student loans.

Financial Need

Some types of financial aid are determined by financial need. Financial need is determined by the Free Application for Federal Student Aid (FAFSA®).

Fixed Interest Rate

Fixed interest rates remain the same for the life of the loan. The interest rate does not fluctuate.

Forbearance

Forbearance is the temporary postponement of loan repayment, during which time interest typically continues to accrue on all types of federal student loans. If your student loan is in forbearance, you can either pay off the interest as it accrues or you can allow the interest to accrue and it will be capitalized at the end of your forbearance.

Use forbearance wisely, because interest that accrues during the forbearance period is typically capitalized, making your loan more expensive. If you can afford to make even small payments during forbearance, it can help keep interest costs down.

You will usually have to apply for student loan forbearance with your loan holder and will sometimes be required to provide documentation proving you meet the criteria for forbearance. For a loan to be eligible for forbearance, there must be some unexpected temporary financial difficulty.

Forgiveness

Loan forgiveness is another situation in which you are no longer responsible for repaying all or a portion of your student loans. Public Service Loan Forgiveness and Teacher Loan Forgiveness are two types of loan forgiveness programs in which your loans are forgiven after meeting specific requirements, such as working in a qualifying job and making qualifying loan payments.

In August 2022, President Biden announced a loan forgiveness plan for borrowers with student loan debt. Under this plan, borrowers earning up to $125,000 (when filing taxes as single) may qualify for up to $10,000 in student loan forgiveness. He also announced that Pell Grant recipients may qualify to have up to $20,000 of their loans forgiven.

Free Application for Federal Student Aid (FAFSA)

This is the application students use to apply for all types of federal student aid, including federal loans, work-study, grants, and scholarships. The FAFSA must be completed for each year a student wishes to apply for financial aid.

Recommended: FAFSA Guide

Grace Period

The grace period is a period of time after you graduate, leave school, or drop below half-time during which you’re not required to make payments on certain loans. Some loans continue to accumulate interest during the grace period, and that interest is typically capitalized, making your loan more expensive.

Grad PLUS Loans

Another term to refer to a Direct PLUS loan, specifically one borrowed by a graduate or professional student.

Graduate or Professional Student

A student who is pursuing educational opportunities beyond a bachelor’s degree. Graduate and professional programs include master’s and doctoral programs.

Graduated Repayment Plan

A type of repayment plan available for federal student loan borrowers. On this repayment plan, loan payments begin low and increase every two years. This plan may make sense for borrowers who expect their income to increase over time.

Grant

Grants are a type of financial aid that does not need to be repaid. Grants are often awarded based on financial need or merit-based.

Recommended: The Differences Between Grants, Scholarships, and Loans

In-School Deferment

Students who are enrolled at least half-time in school are eligible to defer their federal student loans. This type of deferment is generally automatic for federal student loans. Note that unless you have a subsidized student loan, interest will continue to accrue during in-school deferment.

Interest

Interest is the cost of borrowing money. It is money paid to the lender and is calculated as a percentage of the unpaid principal.

Interest Deduction

A tax deduction that allows you to deduct the student loan interest you paid on a qualified student loan for the tax year. Interest paid on both private and federal student loans qualifies for the student loan interest deduction.

Lender

The financial institution that lends funds to an individual borrower.

Loan Period

A loan period is the academic year for which a student loan is requested.

Loan Servicer

A loan servicer is a company your lender may partner with to administer your loan and collect payments. For questions about your student loan payments or administrative details such as account information, you should contact your student loan servicer.

Origination Fee

Some lenders charge an origination fee for processing a loan application, or in lieu of upfront interest. To minimize incremental costs on your loan, look for lenders that offer no or low fees.

Part-Time Enrollment

Students who are enrolled in school less than full-time are generally considered part-time students. The number of credit hours required for part-time enrollment are determined by your school.

Pell Grant

Pell Grant is awarded by the federal government to undergraduate students who demonstrate exceptional financial need.

Perkins Loan

Perkins Loans were a type of federal loan available to undergraduate and graduate students who demonstrated exceptional financial need. The Perkins Loan program ended in 2017.

PLUS Loans

Another way to describe Direct PLUS Loans, PLUS Loans are federal loans available for graduate and professional students or the parents of undergraduate students.

Prepayment

Prepayment is paying off the loan early or making more than the minimum payment. All education loans, including private and federal loans, allow for penalty-free prepayment, which means you can pay more than the monthly minimum or make extra payments without incurring a fee. The faster you pay off your loan, the less you’ll spend on interest.

Prime Rate

Prime rate is the interest rate that commercial banks charge their most creditworthy customers. The basis of the prime rate is the federal funds overnight rate. The federal funds overnight rate is the interest rate that banks use when lending to each other. The prime rate can be used as a benchmark for interest rates on other types of lending.

Principal

Principal is the original loan amount you borrowed. For example, if you take out one $100,000 loan for grad school, that loan’s principal is $100,000.

Private Student Loan

A private student loan is lent by a private financial institution such as a bank, credit union, or online lender. These loans can be used to pay for college and educational expenses, but are not a part of the Federal Direct Loan Program. These loans don’t offer the same borrower protections available to federal student loans — like income-driven repayment plans or deferment options.

Promissory Note

A promissory note is a contract that says you’ll repay a loan under certain agreed-upon terms. This document legally controls your borrowing arrangement, so read it carefully. If you don’t fully understand the agreement, contact your lender before you sign.

Repayment

Repayment is repaying a loan plus interest.

Repayment Period

The agreed upon term in which loan repayment will take place.

Scholarship

A scholarship is a type of financial aid which typically doesn’t need to be repaid. Scholarships can be awarded based on merit.

Secured Overnight Financing Rate (SOFR)

The Secured Overnight Financing Rate is an interest rate benchmark that is commonly used by banks and other lenders to set interest rates for loans. The SOFR is the cost of borrowing money overnight collateralized by Treasury securities. Starting in June 2023, the SOFR will begin replacing the LIBOR as a benchmark interest rate.

Stafford Loans

Stafford loans were a type of federal student loan made under the Federal Family Education Loan Program. Beginning in 2010, all federal student loans were loaned directly through the William D. Ford Federal Direct Loan Program.

Standard Repayment Plan

The Standard Repayment Plan is one of the repayment plans available for federal student loan borrowers. This repayment plan consists of fixed payments made over a 10 year period.

Student Aid Report

After submitting the FAFSA, you will receive a student aid report (SAR). The SAR is a summary of the information you provided when filling out the FAFSA.

Student Loan Refinancing

Student loan refinancing is using a new loan from a private lender to pay off existing student loans. This allows you to secure a new (ideally lower) interest rate or adjust your loan terms.

Subsidized Loan

A Direct Subsidized Loan is a type of federal loan available to undergraduate students where the government covers the interest that accrues while the student is enrolled at least half-time, during the grace period, and other qualifying periods of deferment.

Term

Term is the expected amount of time the loan will be in repayment. Generally speaking, a longer term will mean lower monthly payments but higher interest over the life of the loan, while a shorter term will mean the opposite. Loan terms vary by lender, and if you have a federal loan, you are usually able to select your student loan repayment plan.

Tuition

The cost of classes and instruction.

Undergraduate Student

A college student who is enrolled in a course of study, typically lasting four years, with the goal of receiving a bachelor’s degree.

Unsubsidized Loan

A Direct Unsubsidized Loan is a type of federal loan available to undergraduate or graduate students. The major difference between subsidized vs. unsubsidized loans is that the interest on unsubsidized loans is not paid for by the federal government.

Variable Interest Rate

Unlike a fixed interest rate, a variable interest rate fluctuates over the life of a loan. Changes in interest rates are tied to a prevailing interest rate.

The Takeaway

Understanding key terms is essential for navigating student borrowing. Prioritizing sources of financial aid that don’t need to be repaid like scholarships and grants can be helpful. But these don’t always meet a student’s financial needs. 

Federal student loans have low-interest rates and, for the most part, don’t require a credit check. Plus they have borrower protections in place, like income-driven repayment plans and deferment options, that make them the first choice for most students looking to borrow money to pay for 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.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

What are common student loan terms?

Common student loan terms include the principal (the original borrowed amount), interest rate (the cost of borrowing), and repayment term (the length of time to repay the loan). Other terms involve grace periods (time before payments start after graduation), deferment, forbearance (temporary relief from payments), and fixed or variable interest rates.

What are the most important loan terms to understand?

It’s important to understand terms associated with borrowing because you’ll be required to repay the loan. Understand the interest rate and any fees associated with the loan.

What does APR mean in relation to student loans?

APR stands for annual percentage rate. It’s a reflection of the interest rate on the loan in addition to any other fees associated with borrowing. APR helps make it easier to compare loans from different lenders.

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

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

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

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

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

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When you’re thinking about earning more money in the quickest way possible, you might consider targeting a certificate program. Certificate programs have a major added benefit in that once you have your credentials in hand, they can help you boost your financial situation, sometimes significantly.

Graduates of all levels can take advantage of certificate programs, whether you’re a high school graduate or whether you have completed graduate school. (You may have come across information about paying for graduate certificates in your graduate school program.)

Keep reading to learn the definition of certificate programs, whether you’re eligible for student loans with a certificate program, funding options for certificate programs, the pros and cons of taking out a student loan for certificate programs, and more.

What Are Certificate Programs?

Certificate programs can help you specialize in a specific trade or update your professional skills. These programs teach practical skills and training related to a specific career field — you don’t take general courses toward a degree.

Why might you want to tap into a certificate program? In addition to increasing your salary potential, you may want to get updated career training or learn about technological advancements or updates in your field.

Students who have a high school diploma or general educational development (GED) can use undergraduate certificate programs to go straight into the workforce with an entry-level position within a specific field.

Students who have already earned bachelor’s or graduate degrees may be interested in enrolling in certificate programs related to their field and level. Certificates could also give those who have already earned a bachelor’s degree an option to advance their career while avoiding graduate school altogether. (However, it’s important to distinguish the difference between a certification and a certificate. A certification usually means a stepping-stone credential that you must have for certain career paths. This article primarily discusses certificate programs, but some careers may require a certificate, even after getting a bachelor’s or graduate degree.)

Recommended: Is a Post-Grad Certificate Program Worth It?

Cost of Certificate Programs

The earning potential relative to the low cost of a certificate program can pay off. For example, consider that in the 2023-2024 academic year, students at private nonprofit four-year institutions paid $41,540 on average for tuition and fees.

Students can spend far less on a certificate program — around $5,000 per program (or more or less, depending on the type of program you choose to complete). The variations in cost depend on the college, program, and credit requirements. For example, an online program at a community college will most likely cost less than through an in-person state or private college certificate program.

Let’s take a look at a few types of certificate programs and potential earnings:

•   Surgical technologists: Earn a median income of $60,370 per year as of 2023 and will see 5% job growth through 2032, according to the Bureau of Labor Statistics (BLS).

•   Construction and building inspectors: Earn a median income of $67,700 per year as of 2023, according to the BLS, though it is anticipated the industry will see a 2% decline through 2032.

•   Plumbers, pipefitters, and steamfitters: Earn a median income of $61,550 per year as of 2023, according to the BLS. This job is expected to experience a 2% increase in growth through 2032.

•   Court reporters: Earn a $63,940 median income per year as of 2023, according to the BLS. The industry will see a 3% increase in job growth through 2032.

•   Sheet metal workers: Earn a $58,780 median income per year as of 2023, according to the BLS. The industry is expected to see no increase in job growth through the year 2032.

Are Certificate Programs Eligible for Student Loans?

Yes, you can get a student loan to help you pay for a qualifying certificate program. As long as you attend an eligible school, you may qualify for a federal or private student loan to pay for a certificate program.

However, certain certificate programs may not qualify for federal student aid, depending on the nature of the certificate program. For example, if you need to take a class to boost your credentials as a criminalist in the DNA section of your state’s crime lab, you may not be able to borrow student loans to cover that class. In some cases, your employer may cover the fees for your course.

We’ll dive into the exact funding options for certificate programs below.

Funding Options for Certificate Programs

Before embarking on a certificate program, you need to figure out how you’re going to pay for it. Talk to the financial aid office at the college, university, or career school you plan to attend. Options for paying for certificate programs include:

Private Student Loans

Can you get student loans for certificate programs, or more specifically, private student loans for certificate programs? Answer: Yes!

A private student loan refers to money you borrow for educational expenses and pay back over time, with interest. You can get a private student loan to cover the cost of a certificate program. Private student loans can come from a bank, credit union, or another financial institution.

Interest rates are usually slightly higher for private student loans compared to federal student loans. Federal loans also come with borrower protections and forgiveness options. In general, it’s best to exhaust your federal student loan options prior to tapping into private student loans, if you’re eligible. The amount you can borrow depends on the cost of your degree and personal financial factors like your credit score and income.

Check out the private student loan guide for more information about student loans.

Federal Grants

You may qualify for federal grants to cover the costs of a certificate program. Federal grants are typically free money, assuming you meet the obligations. 

In order to qualify for a federal grant, you must file the Free Application for Federal Student Aid (FAFSA®). The FAFSA will also verify whether your certificate program qualifies for federal student aid under the U.S. Department of Education.

You may qualify for a Pell Grant , the largest program under the Department of Education. Pell Grants are awarded to students with financial need and no prior degree. You may also be able to tap into Federal Supplemental Educational Opportunity Grants (FSEOG).

Recommended: FAFSA Grants & Other Types of Financial Aid

Federal Student Loans

Just like federal grants, you must file the FAFSA in order to qualify for federal student loans. The difference between federal grants and federal student loans is that you must repay the money you borrow for loans. You must also meet some basic eligibility criteria to qualify for federal student loans.

Undergraduate certificate students who show evidence of financial need may qualify for a Direct Subsidized Loan. Undergraduate, graduate, and professional students can qualify for a Direct Unsubsidized Loan, but eligibility is non-need-based. It’s important to discuss both of these options as well as Direct PLUS Loans for graduate or professional students with financial aid offices to determine whether you can get any one of these loans to cover the costs of your certificate program.

You must go through entrance counseling to make sure you understand your loan repayment obligations to get a federal graduate student loan or undergraduate loan, as well as sign a Master Promissory Note. The Master Promissory Note states that you agree to the terms of the loan.

Recommended: Types of Federal Student Loans

Personal Loans

It may also be possible to borrow money from a bank, credit union, or online lender in the form of a personal loan. You’ll pay back a personal loan in fixed monthly payments or installments, usually over the course of two to seven years.

Just like a student loan, a personal loan is an unsecured debt. This means that it isn’t backed by collateral. If you stop making payments, none of your assets will be seized by the lender.

Interest rates may be higher for personal loans compared to private student loans and federal student loans, however. Do your homework before selecting one option over the other.

Employer Funds

If you’re currently employed and a certification relates to your current job description, your employer may pay for a portion or all of the cost of your certificate program. Companies like Starbucks, Google, and Target all have tuition assistance programs. Many companies will offer tuition assistance for college courses and some may even cover professional certifications.

Explore your options with your human resources office or ask your supervisor for more information.

Recommended: How to Pay for a Grad Certificate Program

Pros and Cons of Taking Out Loans for Certificate Programs

What are the pros and cons of taking out loans for certificate programs? Let’s walk through a few.

Pros of Taking Out Loans for Certificate Programs

•   Offers career change opportunities: You may want to branch out or change your career completely, and getting a loan for a certificate program may allow you to do so.

•   Costs less than a traditional degree: A certification usually costs less than pursuing a four-year or even a two-year degree. You may quickly pay off a loan, particularly because it may take you only a few months to attain a certificate.

Cons of Taking Out Loans for Certificate Programs

•   You owe money with interest: The obvious downside to taking out a loan is that you’ll owe money at the end of your program — with interest. Because a certificate program can generally be completed in a relatively short time frame, though, you may be able to repay your loan (and minimize the interest rate impact) in a short period of time.

•   Choosing the right option can be complicated: You may feel as if you’re in a maze with so many different options at your disposal. It’s a good idea to reach out to a financial aid professional at the school you’ve chosen to go over all your financing options. They can also guide you through the scholarships and grant opportunities that you can obtain.

Explore Private Student Loans With SoFi

It’s almost impossible to ignore the allure of a quick certification that can result in a lifetime of job satisfaction. Options for paying for certification include cash savings, grants, scholarships, federal student loans, and private student loans.

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

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Can federal student loans be used for certificate programs?

Yes, in certain cases, you can get federal student loans to cover the cost of certificate programs. However, your school and program must qualify under the Department of Education rules. Talk to the financial aid office at your college or career center for more information about your eligibility for federal student loans.

Can grants and scholarships be used for certificate programs?

Yes, you can obtain grants and scholarships to cover the cost of certificate programs. Talk to the financial aid office at your college or career center for more information. Your school may offer specific scholarships, but don’t forget to check into professional organizations or local chapters for the certificate program of which you plan to enroll.

Do some companies pay for employee certifications?

Yes, many employers pay for employee certifications to help boost employee retention and put employees at the top of their field. These may differ from certificate programs, however, so make sure you understand how your career-based certification may differ from a certificate. Ask your human resources office for information about continuing education or certification training.

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Photo credit: iStock/PeopleImages

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

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

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

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

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After all the work that goes into applying to college — researching schools, submitting transcripts, taking entrance exams, and writing essays — students probably welcome a feeling of relief once that application is officially submitted.

The relief may be instant, but also fleeting. The next phase of getting into college can be painstaking because it’s the waiting phase. Acceptance letters don’t have one standard date for being sent out. Admissions decisions can be delivered as early as December for early action or early decision applicants and as late as April for regular admission applicants.

Learn more on different types of college admissions applications and see how their submission deadlines and acceptance date periods differ.

Types of Applications

Just as there isn’t a standard date for acceptance letters to be sent out, there isn’t one standard submission date for applications, either. There are a few early submission options available, as well as regular submission and rolling admissions. The due date of the application will depend on which type of application is being submitted, and this will also determine when you receive the school’s decision.

Options for applying early include early decision, early action, and single-choice early action.

Early Decision

The early decision application is binding, meaning that students who are accepted are committed to enrolling. Because this application is binding, students can only apply to one school as an early decision. These applications are due in November and the decisions go out in December. If students decide to apply with this early decision option, this school should be their top choice and the one they’d prefer to go to over all others.

Early Action

The early action application is similar to the early decision in regard to the due date (due in November) and decision timeframe (decisions go out in December), but it differs in that it isn’t binding. It’s okay to apply to multiple schools via early action, and if you’re accepted you’re not required to enroll until the normal reply date of May 1.

Recommended: Early Action vs Early Decision

Single Choice Early Action

This option is similar to the early decision in that students can only apply to one school this way, but it’s not binding. If students choose to apply to a school via single-choice early action, it’s a way of saying they’re especially interested in attending that school. The deadline and acceptance period is the same as the other early options.

When it comes to applying early, no matter which type of early application you choose, the applications will usually be due in November and decisions will be sent out in December.

Regular Decision

Regular decision college applications are the most common of the application options. For these applications, the deadline is usually in January or February and the decision letters go out by April. The deadline for submitting your application will differ between schools, so make sure to check the website for each school and mark the dates on a calendar.

Recommended: Ultimate College Application Checklist

Rolling Admission

Rolling admission allows students to apply until the school runs out of space. Applications may be accepted until April or later. Students are encouraged to apply using the same deadline as the regular decision, though, to have a better chance of being accepted before the colleges run out of spaces.

Some colleges will also have differing numbers of spots open based on specific majors. If the major the student lists on an application is impacted at some schools, it might be better to apply by the deadline for regular applications since impacted majors are likely to have more students apply than there are spots available. The average turnaround for rolling admission is about four to six weeks, so the date that decisions are sent out will depend on when students submit their application.

Recommended: College Search – College Finder Tool

The Dreaded Waitlist

After waiting for one to two months to receive a school’s decision, it can be frustrating to open that letter or email and see that there’s more waiting to do. Being on the school’s waitlist isn’t necessarily bad, however.

There are many reasons that students end up on the waitlist. They may have met the academic criteria to get into the school, but the school might not have space yet for these students.

Most schools will require students to contact them and accept their spot on the waitlist to be considered for admission, so don’t forget that step.

Since the number of students that can be accepted from a waitlist depends on the number of students who choose to enroll, students on the waitlist won’t hear back until after decision day.

Decision day is May 1, and it’s the day that seniors are required to notify their school that they accept their admission and will enroll.

After the decision day, the schools will know how many students will enroll, and then they’ll be able to start accepting students from the waitlist if there’s space. This means students on the waitlist can expect to hear back from their school by the end of May, but sometimes it can take up until the fall semester starts to hear back.

Paying for College

Planning for college goes beyond getting accepted. Once accepted, students have to figure out how to pay for college, including tuition, books, and housing. Luckily, there are many good options for financing higher education, which can include financial aid from the government (grants and/or loans), scholarships, and private loans.

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

Financial Aid

The Free Application for Federal Student Aid (FAFSA®) is the form students will need to complete as the first step in applying for student aid. Depending on a student’s Student Aid Index (SAI), they may be eligible for federal student loans, grants, or work-study.

Grants don’t usually have to be repaid, but loans do. The amount of aid students can receive from the federal government will depend on their financial need, so not everyone will be eligible.

Recommended: What Is the Student Aid Index?

Federal Student Loans

Federal student loans come with some benefits that are not guaranteed by private student loans, like lower fixed interest rates and flexible repayment options. Federal loans also offer borrower protections, such as deferment and forbearance, and student loan forgiveness programs for those that qualify.

Scholarships

Scholarships can be merit-based, meaning they’re awarded based on some kind of achievement, or need-based. There are many scholarships available, and it’s perfectly acceptable to apply to as many as possible to further the chances of receiving one — or more. Some scholarships are specific to a school or the local community, so check your school’s website for information.

Private Student Loans

Private student loans may be another option for paying for college. Since every financial institution is different, do some research and explore options available. Loan amounts and rates will depend on an applicant’s financial situation, including their credit history and income. Those with little of either may need a cosigner to be approved for a private loan.

Even if the cost of attendance might be covered by scholarships, grants, or federal student loans, there may be other costs of living a student might need assistance for. That’s where private student loans can be helpful when considered responsibly.To learn more about private student loans, college-bound students might want to check out this guide to private student loans.

Keep in mind, though, that private student loans do not offer the same protections as federal student loans, so it’s best to explore federal loans before relying on private ones.

The Takeaway

It can take a few weeks to a few months to hear back for a college admissions decision, depending on the type of application you submitted. Early applicants — such as early decision or early action — will generally hear back in December while regular decision applicants will receive their admission decision in April.

Taking some time to think about college costs and how to pay for the upcoming years of education can be a wise way to spend that time waiting for all of those acceptance letters to come rolling in. Options for paying for college include cash savings, grants and scholarships, federal student loans, and private student loans.

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

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

How long does it take to hear back after applying to college?

It usually takes four to six weeks to hear back after applying to college, depending on the school’s admissions process and the type of application. Early decision applicants may receive a response in November or December, while regular decision applicants typically hear back between March and April.

What’s the difference between early decision and early action?

Early decision is a binding agreement where, if accepted, you must attend the college, while early action is non-binding, allowing you to apply to multiple schools and decide later.

Do colleges send rejection letters?

Yes, colleges send rejection letters to applicants who are not accepted. These letters are typically sent around the same time as acceptance letters, either by mail or email, depending on the school’s process.

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

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

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

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

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

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Pets can bring love, companionship, and fun into your life. But they can also bring a lot of added expenses. In fact, the lifetime cost of owning a dog can run anywhere from $19,893 to $55,132, while owning a cat for its full natural life can range between $4,250 to $31,200.

If you’re yearning for a furry companion, but the high cost of owning a pet gives you worry, you don’t necessarily have to give up on the idea. There are actually a number of cheap pet options out there, and many are also low maintenance and adapt quickly to their new homes.

From small birds to bunny rabbits, here are nine cheap, easy-to-care-for pets you may want to consider adding to the family.

Guinea Pigs

If you’re looking for something cuddly that’s easier on the wallet than a puppy, you may want to consider a guinea pig. These entertaining creatures live about five to seven years, so they also typically require less of a time commitment than a cat or a dog.

A guinea pig can cost anywhere from $10 to $70. If you go for an exotic guinea pig from a local breeder, you can pay up to $120. In addition to the guinea pig, you’ll need to have a cage that has enough room for it to move around and some bedding that will get changed fairly often.

Guinea pig food is relatively cheap — around $15 for a five-pound bag. But these affordable pets can also live off leftover vegetable and fruit scraps.

Guinea pigs thrive as social creatures, so you may want to purchase more than one guinea pig or ensure you’re spending ample time with your furry companion.

Recommended: Ways to Pay for Unexpected Vet Visits

Hermit Crabs

While hermit crabs aren’t cuddly, they can make great pets if you’re looking for a low-key companion that doesn’t require much supervision.

The cost of owning a hermit crab is pretty low (a crab runs around $3 to $25 through a breeder or at a pet store). You’ll also need to get a tank with a vented lid, drinking and humidity sponges, a water dish, climbing wood, and a humidity gauge. Once crabs have outgrown one shell, you’ll need to buy their next, larger shell, which is a small cost.

Hermit crabs need humidity levels between 70% and 80%, which means you’ll need to mist them and their tanks at least once a day to keep these creatures happy and healthy. It’s also important to clean their quarters and change their water often.

Being small creatures, crabs don’t cost much to feed. You can feed these cheap pets vegetable scraps, fruit, or pellet food.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

Sea Monkeys

Sea Monkeys are a novelty pet marketed as “instant pets.” They’re actually a type of brine shrimp sold in kits, usually targeted to children.

Developed in a lab in the 1950s, sea monkeys are sold as packets of eggs that hatch when you add water. These small pets will hatch in a few days and stay alive for about two years. They also reproduce, so you could have a steady supply for some time.

Sea monkey kits, which include the eggs, an aquarium, and growth food, only run around $16. To keep your Sea Monkeys alive, all you need to do is to top up water levels occasionally and feed them once a week.

Dwarf Frogs

African dwarf frogs are small, completely aquatic, and among the easiest types of frogs to keep as pets. This species can be a good beginner frog for owners who are content to look-only — handling them is not a good idea.

Dwarf frogs grow to around 1½” and live up to five years with good care. They can live in an aquarium alongside docile fish like tetras if you want to own a few creatures.

Besides the frog, which typically only costs around $5, owners of these low-cost pets will need to purchase a tank with a tight-fitting lid (which you may be able to find second-hand), gravel or sand for the bottom, and some decorative hiding spots, such as live or silk plants and small terra cotta plant pots placed on their sides.

Keeping dwarf frogs healthy is really just a matter of making sure that their aquarium water is clean and offering them a proper dwarf frog diet — they like to munch on frozen mysis shrimp, bloodworms, food pellets, and brine shrimp.

💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.

Goldfish

Goldfish can add interest to any room, are fun to watch, and pretty low maintenance. The fish themselves usually only run between 20 cents and $5, depending on the type of goldfish.

While you may picture this fish living in a classic goldfish bowl, these days many experts recommend investing in a filtered tank in order to keep their habitat clean. Aquariums with filters and decor aren’t super cheap, but the only additional cost after that is the food. Purchasing a container of fish pellets or flakes will set you back about $5.

To save some money, you may want to search for used equipment at yard sales and thrift stores or through online marketplaces. Once you’ve invested in a tank and decor, these items will last indefinitely and can be re-used for future fish.

Leopard Geckos

These tiny lizards are friendly and fun to have around, and don’t require a lot of upkeep. As with goldfish, the biggest cost is likely to be a habitat. You may be able to save here by buying one second-hand from an online marketplace.

In addition to the cost of the leopard gecko (normal breeds run around $20 to $40) and tank, you’ll also need to get some type of lighting (with an incandescent bulb), a hide-out, and possibly a heat pad, depending on temperatures in your home.

Other than that, you’ll need to regularly feed them a diet of insects, including crickets and waxworms, as well as fresh vegetables and clean water.

Ants

If you’re looking for one of the cheapest pets, that is also low-maintenance, an ant farm may fit the bill. While ants don’t provide bonding or cuddling opportunities, it can be fun and fascinating to watch an ant farm grow, particularly for kids.

Depending on the kit, ant farms will set you back anywhere from $14 to $34 and some include ants (you can also purchase live ants online or at your local pet store).

While kits have traditionally been made from sand, modern ant farms are now often made with a clear, edible gel that lets you watch your ants tunnel much more closely.

After you get the farm and the ants, there isn’t much to do other than making sure you provide water and the occasional bits of food.

Recommended: Dog-Friendly Vacation Ideas — Plus Tips for Traveling with Pets

Canaries

Canaries can be great pets that offer companionship and melodies, and can even learn to do little tricks like playing with a ball or stepping onto your hand. These types of birds live around 10 years and aren’t as expensive as more exotic breeds.

Costs include a cage, small toys, food, and the occasional veterinary visit (if they’re sick). You can purchase canaries from pet stores or breeders — the latter may offer more options depending on where you live.

You could pay around $300 for a bird, so it’s not necessarily the cheapest pet on the list. However, it’s still considered a low-cost pet compared to a dog or cat.

Recommended: How Much Is Pet Insurance?

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.

Rabbit

While rabbits are as large as some cat and dog breeds, they qualify as a cheap, low-maintenance pet. If you buy a rabbit from a breezer, you can expect to pay around $50 for a non-pedigreed rabbit. However, you may be able to adopt a rescue through the Humane Society or ASPCA for considerably less.

Rabbits also need both hay and veggies, which can run about $40 per month. These fluffy companions will also need a rabbit hutch, but you may be able to find one cheaply through a second-hand marketplace. Or, you can build one yourself.

Rabbits are happy to live outside or in (they can actually be potty trained). If you opt for indoors, you may want to keep in mind that they can chew on wires and furniture legs if allowed to roam free. Some breeds, such as angora rabbits, also require grooming.

These furry friends live about seven to 10 years.

Recommended: 15 Tips to Cut Costs When Traveling with Pets

The Takeaway

Whether furry, feathered, or reptilian, owning a pet doesn’t need to cost a small fortune. As you can see from the list here, there are plenty of cheap pets that are easy to care for and waiting for you to take them home.

Before you make a commitment to a pet, however, you may want to make sure your little companion will fit into your lifestyle and that you have time to take care of it.

And since even an inexpensive pet will add to your household expenses, you may want to start putting some money aside in some type of savings account to cover your start-up and ongoing pet expenses.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.00% APY on SoFi Checking and Savings.

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As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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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