While college rankings matter, it can be a good idea to view them through a lens of what matters most to you about the college experience and what you’re hoping to get out of it.
Colleges and universities each have different strengths and weaknesses, and published rankings can help you learn which schools are the strongest in different areas, and whether or not a college has improved or lagged behind other schools in recent years.
Rankings may also allow you to filter schools by selected academic and nonacademic characteristics, and help you hone in on schools that may meet your specific needs.
That said, rankings aren’t everything. Even U.S. News & World Report says on its best-colleges website: “The rankings provide a good starting point for students trying to compare schools.… The best school for each student, experts say, is one that will most completely meet his or her needs, which go beyond academics.
Here’s what you need to know about college rankings.
Key Points
• College rankings are useful but generally shouldn’t be the only factor in choosing a college.
• A highly ranked college can offer stronger networking and research opportunities, as well as perceived prestige.
• Also consider your academic goals, budget, and desired experiences when evaluating colleges.
• Campus visits and conversations with current students can provide valuable insights.
• Use college guide books and other resources to gather additional information.
What Are the College Rankings?
There is no single, ultimate, college ranking. All over the world, there are entities using a wide array of criteria to appraise universities and determine which ones are “the best.”
The factors an organization or company will use to come up with their college rankings can vary, which is why you might see a school ranked #3 on one list and #9 on another. However, here are some factors list-makers will commonly consider when ranking schools:
Though college rankings typically consider a large amount of information, they won’t tell you everything you need to know about a college. As a result, you may want to use rankings as one of many factors to make your list of prospective colleges. Ideally, you want to find a school that matches your interests, needs, goals, and budget.
💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.
What Really Matters
Although many groups rank colleges, the term “college rankings” commonly refers to the U.S. News & World Report list, which rewards graduation rates and reputation.
But there’s also The Princeton Review, which drills down on other factors like quality of life, extracurriculars, social scene, and town life. They even rank colleges with “Lots of Beer,” based on student ratings of how widely beer is used at their schools, and “Lots of Greek Life,” based on student ratings of the popularity of fraternities and sororities at their schools.”
As you look at different college rankings, you’ll want to keep your own priorities in mind, whether that’s finding the best school for your chosen field, honing in on schools that have the smallest class sizes, or finding a school that is known for being a good value.
You may want to use college rankings in combination with a number of other resources, including college guide books and talking to friends and family that have gone (or currently go) to schools that interest you. College tours can also provide a wealth of information about a school.
💡 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 Bottom-Line Question
No discussion of college would be complete without touching on what you can afford to spend. Is going to college worth it? The answer depends on how much your chosen college will cost, how much aid you will get, how much you will need to borrow, and what you plan to do with your degree.
To get a sense of what a college will cost you out-of-pocket, a good first step is to fill out the Free Application for Federal Student Aid (FAFSA), which considers eligibility for grants, federal student loans, and work-study programs. But even after scholarships, federal aid, and any college savings plans, many students come up short when all education expenses are tallied.
At that point, you may want to consider private student loans. These are available from private lenders, such as banks, credit unions, and online lenders. Rates and terms will vary depending on the lender, so it can be well worthwhile to shop around. Borrowers (or cosigners) with excellent credit tend to qualify for the lowest rates. Just keep in mind that private student loans don’t necessarily offer the same protections, like income-driven repayment, that come with federal student loans.
The Takeaway
College rankings can be a useful tool in your search, but they tend to be best used as a starting point, not the deciding factor. While rankings can help highlight a school’s strengths and unique characteristics, they don’t capture the full picture of campus culture, support systems, or personal fit.
Your ideal school is the one that aligns with your academic goals, financial realities, and the experience you want to have — both inside and outside the classroom. Use ranking in combination with campus visits, conversations with current students, and your own priorities to find the college that feels like the right match for you.
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
Do universities care about rankings?
Universities often care about rankings as they can influence reputation, student applications, and funding opportunities. High rankings can attract top faculty and students, enhance prestige, and provide a competitive edge in the academic world. However, not all institutions prioritize them equally. Some focus more on academic mission, student experience, or community impact than on external ranking systems.
Do university rankings matter?
University rankings can matter, but their importance depends on your goals. For some students, a highly ranked school offers stronger networking opportunities, research resources, and perceived prestige. However, rankings don’t always reflect teaching quality, campus culture, or fit for individual students. They’re often based on quantifiable metrics, such as research output and reputation surveys, that may not match every student’s priorities. Ultimately, rankings can be one factor, but not the only one, in choosing a school.
Why do people care so much about college rankings?
People care about college rankings because they provide a quick, comparative measure of institutional quality. A higher-ranked school is often associated with better job prospects, stronger alumni networks, and academic excellence. Social pressure and media coverage amplify their significance, making rankings seem like a decisive factor, even though individual fit may matter more.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
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., Puerto Rico, U.S. Virgin Islands, or American Samoa, 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 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.
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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.
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If you’re grappling with monthly student loan payments, you may be wondering if there are any grants or scholarships to help you pay down your debt or even forgive some or all of it. The answer is yes. While some grants and programs are targeted to borrowers with financial need or who work in a certain field, others are open to anyone.
Read on to learn how to find “free money” to help you manage your student loan debt.
• Scholarships and grants can help reduce or eliminate student loan debt.
• Federal government grants like the Pell Grant and TEACH Grant offer substantial financial support.
• State and local grants are also available, often requiring specific service commitments.
• Private scholarships can be sourced through various organizations and tailored to individual needs.
• Student debt forgiveness programs remain viable, with options like Public Service Loan Forgiveness and Teacher Loan Forgiveness.
Federal Government Grants
There are a number of grant programs that are available from the U.S. Department of Education (DOE) that can help people pay off their student loans or reduce the amount of student debt they owe.
Government grants are funds given out by the federal government or other organizations that do not have to be repaid. Below are some popular grant programs you may be able to tap while you are still in school.
Federal Pell Grant
The federal Pell Grant is a financial aid program for students who are enrolled in undergraduate courses at an accredited college or university and who demonstrate exceptional financial need. It does not have to be repaid and can cover up to the full cost of attendance. The maximum F\federal Pell Grant award is $7,395 for the 2025–2026 academic year.
The new domestic policy bill that was signed into law makes some changes to the Pell Grant program starting on July 1, 2026. It expands access to these grants to individuals in short-term (8- to 15-week) job training programs, even if they already have a bachelor’s degree, and it limits eligibility access for some other students. According to the new provisions, students will be ineligible for a Pell Grant if they are receiving grant aid from other (non-federal sources), such as states, organizations, or colleges.
Teacher Education Assistance for College and Higher Education (TEACH) Grant
This program provides financial assistance to individuals pursuing an undergraduate or graduate degree in education. The TEACH Grant offers up to $4,000 per year for students enrolled in eligible educational programs at accredited universities. However, to maintain your TEACH grant, you have to work in a high-need field or at a low-income school for at least four years. If you don’t, the grant turns into a loan you must repay.
Iraq and Afghanistan Service Grant
Beginning with the 2024-2025 school year, the Iraq and Afghanistan Service Grant, which was designed to help students whose parents or guardians died due to service in Iraq or Afghanistan after September 11, 2001, is no longer being awarded, as part of the FAFSA Simplification Act. Instead, qualifying students will receive the maximum Pell Grant award.
Many states offer grants that can help residents pay off their student loans. In some cases, you need to work in a certain field and/or in an underserved area.
For example, the New York State Young Farmers Loan Forgiveness Incentive Program provides loan forgiveness awards to individuals who get an undergraduate degree from an approved New York State college or university and agree to operate a farm in the state on a full-time basis for five years.
California’s Department of Health Care Access and Information, on the other hand, offers a range of loan repayment programs for those working in the healthcare field, including doctors, therapists, dentists, and more.
No matter what field you are in, it can pay to research loan repayment opportunities in your state. This grant tool on the DOE’s website can help you find the agency that distributes education grants in your state.
Private Scholarships to Pay Off Student Debt
There are also numerous private grants and scholarships that can help you pay off your student loans. You can look for private funding options using a search engine like Fastweb, Scholarships.com, and FinAid.
To find out about scholarships that may be more under the radar, you could reach out directly to companies and organizations you have some connection to. This might include:
• Family members’ employers and associations
• Community service groups with whom you’ve volunteered
• Identity/heritage groups
• Religious communities you’re involved with
While private scholarships can be smaller monetary amounts, if you can piece together a few, you may be able to make a significant dent in your student debt.
There are also loan forgiveness options you may want to explore.
Public Service Loan Forgiveness
If you’re employed by a government or not-for-profit organization, you might be eligible for the government’s Public Student Loan Forgiveness (PSLF) Program. The PSLF Program forgives the remaining balance on your Direct Loans after you’ve made the equivalent of 120 qualifying monthly payments under an accepted repayment plan, while working full-time for an eligible employer.
To see if your employer qualifies and to apply for the PSLF program, you can use the PSLF Tool on the DOE’s website.
If you have private student loans, you are not eligible for the PSLF program.
Income-Driven Loan Forgiveness
Income-driven repayment (IDR) plans are designed to make student loan payments more manageable by basing monthly payments on the borrower’s discretionary income and family size.
Currently, only one of these plans, the Income-Based Repayment (IBR) Plan, gives borrowers the opportunity to have the outstanding balance of their loan forgiven after 20 years of qualifying payments.
However, changes are coming to federal student loan repayment in 2026. The new U.S. domestic policy eliminates a number of repayment plans (although the IBR plan will remain open to current borrowers). For borrowers taking out their first loans on or after July 1, 2026, there will be only one repayment option that is similar to the current IDR plans: the Repayment Assistance Program (RAP).
On RAP, payments range from 1% to 10% of a borrower’s adjusted gross income for up to 30 years. At that point, any remaining debt will be forgiven. If a borrower’s monthly payment doesn’t cover the interest owed, the government will cover the interest.
Teacher Loan Forgiveness Program
The Teacher Loan Forgiveness Program will pay up to $17,500 on Federal Direct Subsidized and Unsubsidized Loans and subsidized and unsubsidized Stafford Loans. To receive this loan benefit, you must be employed as a full-time qualified teacher for five consecutive academic years at a low-income school or educational service agency.
Armed Forces Loan Payment Programs
Many branches of the United States military offer loan payment programs that can help you pay off your federal student loans. Programs include:
• Air Force JAG Corps Loan Repayment
• Army Student Loan Repayment
• Army Reserve College Loan Repayment
• National Guard Student Loan Repayment
• Navy Student Loan Repayment
While each military loan repayment program works in a slightly different way, these grants can potentially pay off a significant portion (or even all) of your student loan debt.
Corporate Loan Repayment Grants
Your employer may provide student loan repayment help. Many companies now offer student loan repayment as a job perk. As more and more employees struggle with debt, employers have started to offer these benefit programs in order to attract and retain top-notch talent.
In some cases, a company will make regular, direct payments to your student loan servicer or lender on your behalf. In others, an employer may offer to contribute to your retirement if you put a certain percentage of your paycheck toward student loans. Wondering if your employer offers the same perks? Check with HR to see if you can take advantage of a company-wide loan repayment benefit program.
Another option that could potentially make your loans more affordable is student loan refinancing.
With a student loan refinance, you replace one or more of your old loans with a new loan, ideally with a lower rate or better terms. This may be helpful if you have strong credit (or a student loan cosigner who does), since it might qualify you for a lower interest rate. In addition, you could choose a shorter repayment term to get out of debt faster.
You can refinance both federal and private student loans. Keep in mind, however, that refinancing federal student loans can result in a loss of certain borrower protections, such as student loan forgiveness and deferment. Because of this, you’ll want to consider the potential downsides of refinancing before making changes to your debt.
The Takeaway
While you may think of grants as a way to help finance your education while you are in school, there are grants (as well as scholarships and other programs) that can also help you repay your student loans. Options include federal and state programs, private/corporate grants, and federal loan forgiveness and repayment plans. Another option that could potentially make student repayment more manageable is refinancing.
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.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
Can you use scholarship money to pay off debt?
It depends. While many scholarships are designed solely to cover students’ education expenses while they are in school, there are scholarships available specifically to help borrowers pay off student loan debt. You can use an online search tool like Scholarships.com to help locate them. In addition, check with your employer and any organizations, community service groups, and religious groups you are associated with to see if they offer such scholarships
How do you pay off student loan debt when you can’t afford to pay it?
If you can’t afford your student loan payments, there are a number of strategies that could help. For example, you could switch to an income-driven repayment plan that bases your payments on your discretionary income and salary. Also check into student loan forgiveness programs — as well as state, local, and private grants that are designed to help pay off student loan debt — to see what you might qualify for. Find out if your employer offers student loan repayment as an employee benefit. Finally, another option to consider is student loan refinancing, which could give you a loan with a lower interest rate if you qualify, and potentially reduce your payments.
How do I get student loan forgiveness?
To get student loan forgiveness, explore the different options to see what you could be eligible for. Federal student loan forgiveness options include the Public Service Loan Forgiveness Program for those who work in eligible public service jobs and meet other specific criteria, Teacher Loan Forgiveness Program for educators who fulfill certain requirements, and military forgiveness programs for eligible members of the armed forces. You may also be able to get student loan forgiveness through an income-driven repayment plan for your federal loans.
SoFi Student Loan Refinance Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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 Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
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Whether you’re living on campus or commuting to school, college is a time to experiment with independence. College students can choose their own classes, make their own friends, and decorate their dorms according to their own styles. And while exploring diverse areas of study and deepening intellectual curiosity is a pivotal element of the college experience, it’s only one aspect of those four significant years.
College is also a period to define one’s life outside of academia and get involved on campus. On-campus activities are one of the most important elements of a college experience, helping students to get to know themselves and others, build a community, and develop long-term skills.
From clubs and sports teams to jobs and volunteer work, there are countless ways to play a part in campus life and explore new areas of interest. Keep reading to learn more on how to get involved on campus in college.
• Attending orientation events helps new students learn about campus clubs and activities.
• Joining clubs, sports, or campus media helps students form connections and build a supportive social circle.
• Find groups that match your interests to meet like-minded peers and develop leadership skills.
• Participate in community service projects to give back and gain valuable experience.
• Campus involvement can lead to long-term career opportunities and personal development.
Getting Involved On Campus
As a new student, one way to see what the school has to offer for extracurriculars is to attend a student activity fair. This can be an opportunity for students to survey the different activities and clubs on campus and talk to current members about what they do and the types of time commitments involved.
Here are some other ideas for how college students can get involved on campus.
💡 Quick Tip: When shopping for a private student loan lender, look for benefits that help lower your monthly payment.
Assess Current Interests and Skills
Many students may have already begun to take part in extracurricular activities during their high school years. Perhaps they were on a sports team, took part in Model UN, or were part of the school choir.
Students will find that many universities offer continuation of the activities they were involved with in high school, though they will generally have to reapply or audition.
Even if a student-athlete doesn’t make it onto a college varsity team, they can try out a club sport instead. Larger schools may have more varied clubs and activities, but smaller schools will offer more opportunities for students to have their voices heard.
There may be less competition to make it into a school play, for example. Whatever size a school is, there are ways to get involved and continue to develop skills cultivated during high school.
College extracurriculars can also be a great way to experiment with new interests, whether a student has long had the desire to explore an area, or is simply intrigued by a new idea.
Most colleges have activity fairs early on in the school year as a way for clubs and groups to advertise to new students. This is a wonderful way for students to find out what clubs are available, and to get to meet the students who are already involved.
Students may get overzealous and sign up for too many clubs and activities at first, so it’s important to assess which of these pursuits are worth sticking with and which can be politely left behind.
Flex Your Inner Athlete
Playing a college sport, whether it’s trying out for varsity or joining an intramural team, can be a great way to get involved. The community that’s fostered through team sports is perhaps unmatched among other college activities, with athletes spending multiple days a week in practice, at games, and socializing off the field.
Physical activity can be one effective way to combat depression, which is on the rise among college students. If a sports team is too much of a commitment, a dance or yoga class can be a good way to meet people and stay in shape, or simply hitting the college gym.
Students interested in creative expression will find a wide range of ways to get involved on campus. Trying out for a college play, auditioning for an acapella group, or joining the jazz band are great ways to meet other students and explore one’s artistic side.
College theater clubs and musical groups allow students to invest in a meaningful project and ultimately perform for their campus communities and can help improve a student’s sense of confidence and self-worth.
Visual artists may want to join a figure drawing group, and writers may be interested in joining a creative writing or poetry workshop with their peers outside of class. There are countless ways to tap into the creative bug on campus and perhaps even discover a new artistic interest to pursue beyond university.
For some students, Greek life forms the backbone of their social lives during college. Rush or recruitment events for fraternities and sororities provide an array of activities for potential members in an attempt to draw students to their particular organization. Pledging will take up much of a student’s time as well before they finally join the ranks of their house.
Once involved in Greek life, students often find a built-in community waiting for them. Sororities and fraternities often sponsor campus-wide events and parties or facilitate volunteer opportunities for members.
While Greek life is a great way to build friendships on-campus, it can be all-encompassing at times. It’s important for students to be able to strike the right balance between their fraternity or sorority and the rest of their lives on campus, including their classes.
If a student is interested in joining a social club that’s not Greek, or the school they are attending does not have Greek life, there may be other social clubs offered.
💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.
Try Your Hand in Media
Most colleges and universities have student-run newspapers, magazines, radio, and TV stations. Participating in one of these media organizations can be a great opportunity to meet students and get acclimated to the campus.
Joining the school newspaper will allow students to explore their campus from the inside out, researching topics that affect the community and publishing their work.
Writing for a literary magazine is also a wonderful way to get involved, with students being able to help solicit work and screen submissions.
College radio stations are also a classic staple of campuses — running a radio show, whether it’s talk radio or playing a certain genre of music — is a wonderful way to connect with the community, even if you’re doing it via radio wave.
Getting involved on campus helps students build community, maintain a sense of productivity and accomplishment, and explore potential career avenues. The connections made through on-campus activities can be the most enduring of one’s college career since they’re often based on the passions a student will continue to enjoy after graduation.
While getting involved in multiple on-campus activities can be highly beneficial to any student, it’s important to balance extracurriculars and academic work, making sure to allot the proper amount of time for studying so that one’s interests outside of class don’t eclipse everything else.
Another aspect of a successful college career is figuring out how to cover the cost of your education. Options include cash savings, scholarships, grants, 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
What is one way to get involved on a college campus?
One way to get involved on a college campus is to join a student club or organization that aligns with your interests, such as a sports team, academic society, cultural group, or volunteer club. This provides opportunities for social interaction, skill development, and personal growth.
What counts as campus involvement?
Campus involvement includes joining clubs and organizations, attending events, participating in sports or intramural activities, volunteering, attending workshops or seminars, and engaging in student government. It also involves attending lectures, joining study groups, and participating in cultural or social activities on campus.
Why is it important to be involved on my college campus?
Being involved on your college campus helps you build a sense of community, develop leadership skills, and create lasting friendships. It also enhances your resume, provides networking opportunities, and makes your college experience more fulfilling and enjoyable.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
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., Puerto Rico, U.S. Virgin Islands, or American Samoa, 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 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Student loan debt nationwide currently totals $1.813 trillion (including federal and private student loans) as of the second quarter of 2025, according to the Federal Reserve. Among the 50 U.S. states plus the District of Columbia and Puerto Rico, the average federal student loan debt totals are $30.4 billion per state, according to the latest information from the Education Data Initiative (EDI).
Nearly 43 million borrowers in the U.S. have student loan debt. The average federal student loan debt balance per borrower is $39,075 while the total average balance (including private student loans) is estimated to be $42,673, according to EDI.
A recent report from EDI details the average student loan debt by state based on the average debt per borrower (based on federal student loans only) in each state. Overall, residents of the District of Columbia, have the highest student loan debt, averaging $54,561 per borrower. North Dakota residents’ have the lowest average student debt by state, with an average per borrower of $29,115.
Read on to learn more about the average student debt by state and how it may affect you.
Key Points
• Student loan debt in the U.S. increased over 500% from 2004 to 2023.
• Student loan debt is the second-largest source of household debt in the U.S., after mortgages.
• The highest average student loan debt per borrower in 2025 is $54,561 in the District of Columbia.
• North Dakota has the lowest average student loan debt per borrower in 2025 at $29,115.
• Regional differences in student loan debt are influenced by such factors as cost of living, population age, college tuition, and state grant programs.
National Overview of Student Loan Debt Trends
In the last decade, student loan debt has grown faster than other sources of household debt. But not all average student debt by state is equal. Some areas of the country face higher amounts of student loan debt than others.
Rising Debt and Regional Differences
Between 2004 and 2023, student loan debt rose over 500%. It is now the second-largest source of household debt after mortgages, according to the Federal Reserve of St. Louis.
However, there are regional differences in student loan debt that can have an impact on the economy in that area. States with higher costs of living such as California and New York tend to have more student loan debt. Regions of the country with younger populations, such as Utah and Texas, may have higher average student loan debt by state because more people are college age and borrowing undergraduate student loans. And the higher cost of tuition of colleges in certain regions, such as Vermont, Connecticut, and New Hampshire, can correlate to higher student loan debt in the region.
Overall, the Northeast has the highest amount of median student loan debt, while the South and West have the least, based on the latest data from the U.S. Census Bureau.
💡 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 may make sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections. Note that refinancing with a longer term can increase your total interest charges.
Student Loan Debt in Each State
For an overview of what the average student loan debt by state looks like across the country, here’s a state-by-state guide, according to the Education Data Initiative.
Note that this information is for federal student loan debt only; private student loans, which represent 8.43% of all student debt, are not reflected.
💡 Quick Tip: When rates are low, refinancing student loans could make a lot of sense. How much could you save? Find out using our student loan refi calculator.
How to Use This Data
For students who are preparing to go to college it’s helpful to know the amount of student loan debt they might be facing, based on the average student debt of residents in their state, as well as the state’s total student loan debt.
Planning for College Costs
As prospective students evaluate colleges they might attend, knowing a state’s total student loan debt can provide an idea of how affordable attending school in that state might be. For example, if a state’s student loan debt is high, that might signal higher tuition costs, less access to scholarships and grants, and students having to borrow more student loans in that state.
Conversely, states with a lower total student loan debt may have more generous state-specific financial aid programs or lower in-state tuition for residents. It’s also possible the residents of that state don’t have to borrow as much to attend college.
Either way, once you know a state’s student loan debt, as well as the average borrowers’ debt in that state, you can more thoroughly research the college costs in that area to get a sense of how much you might need to borrow in student loans — whether you are an undergrad or you’re looking to take out graduate student loans.
Understanding Local Economic Impacts
Student loan debt affects not only borrowers, but also local economies. The impact of student debt on the economy can be significant. For example, areas with higher student loan debt may have lower rates of homeownership because borrowers can’t afford downpayments. As a result, there may be a bigger demand for rentals, which can drive up the cost of rent for everyone, including college students.
Student loan debt can also reduce consumer spending, which can slow an area’s economic growth. It can also inhibit the area’s labor market and the wages employees earn. For students thinking about going to college in that area and getting a part-time job to help pay school costs, the vitality of local business and the opportunity for employment can be important considerations.
The Takeaway
The average amount of debt held by borrowers varies from state to state. Residents of the District of Columbia have the highest amount of debt, averaging $54,561 per borrower. North Dakota residents’ have the lowest student loan debt, with an average per borrower of $29,115. In fact, North Dakota is the only state where the average borrower owes less than $30,000.
For millions, student loans and student loan refinancing 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, which 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. And one thing to keep in mind is that a borrower can refinance these loans in the future, when they might qualify for a lower interest rate or more favorable terms.
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 state has the highest average student loan debt?
The state with the highest amount of student loan debt is California, with a total student loan debt of $151.5 billion. However, the District of Columbia has the highest average student loan debt per borrower: $54,561.
What state has the lowest student loan debt?
The state with the lowest student loan debt is Wyoming, with a total student loan debt of $1.7 billion. The state of North Dakota has the lowest average student loan debt per borrower, which is $29,115.
Why does student loan debt vary so much by state?
Costs and population of states can affect student loan debt and cause it to vary from state to state. For instance, states with higher costs of living such as California and New York tend to also have more student loan debt. States with younger populations, such as Utah and Texas, may have higher debt because more people are college age and borrowing student loans. And the higher cost of college tuition in certain states, such as Vermont, Connecticut, and New Hampshire in New England, can correlate to higher student loan debt in the state.
How does the cost of college in each state affect student loan amounts?
States with public and private universities with higher tuition and fees tend to have higher student loan debt per borrower. And states with fewer state grant programs may also increase borrower’s reliance on student loans.
Can state-based loan forgiveness programs reduce debt burdens?
Yes, state-based student loan forgiveness programs can help reduce borrowers’ debt burdens. For some borrowers, these programs can help them reduce their debt or even eliminate it, depending on the program. Many states have programs for professions in high demand such as teachers, doctors and other healthcare workers, and those who work in public service. Not every state has these programs, but many do. Check with your state to see if there is a student loan forgiveness program you may be eligible for.
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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. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
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., Puerto Rico, U.S. Virgin Islands, or American Samoa, 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 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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If you’re applying to college or graduate school, figuring out how to pay for your education is likely top of mind. The first step for many prospective students is to fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA®.
This form is your gateway not only for federal loans, but also for federal grants, work-study jobs, and even scholarships and grants available through your state or school. Filling out the FAFSA is key, since it’s how your eligibility for student aid is determined.
You might be tempted to put off filling out the application or have no idea where to start, but submitting your application early could improve your chances of earning more aid. Continue reading for more FAFSA tips and tricks to help make sure everything goes smoothly.
Key Points
• Submit the FAFSA early to maximize financial aid.
• Gather essential documents like tax returns, bank statements, and Social Security numbers before you start.
• Avoid common mistakes such as leaving fields blank and filling out the form at the same time as your parents.
• Use the IRS Data Retrieval Tool to save time and ensure accuracy.
• Fill out the FAFSA every year to maintain eligibility for aid.
Tips for Filling Out the FAFSA
The FAFSA is required in order to apply for federal student loans, grants like the Pell Grant, and scholarships. Colleges and universities may also use the information provided on the FAFSA to determine college-specific awards. This is an important first step for students figuring out how they’ll pay for college.
Here are some tips to keep in mind as you fill out your form.
💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.
Actually Fill the FAFSA Out
Some people may not complete a FAFSA under the assumption that their income, or that of their family, is too high for them to qualify for any student aid. In reality, the government has no official income threshold to qualify for federal student aid, and there are many forms of aid on the table.
So you can’t really predict whether you might benefit. You also need to fill out the FAFSA to be eligible for any type of federal student loan. Federal loans typically come with more robust benefits when compared to private student loans, including deferment during periods of economic hardship and income-driven repayment. In addition, some colleges require the FAFSA for merit-based scholarships. You don’t want to lose out on potential financial help for lack of even trying.
If you don’t end up earning as much aid as you need, you can also search for scholarships from private organizations.
Submit As Early As Possible
Typically, the FAFSA becomes available on October 1 for the following academic year. Generally, it’s a good idea to submit the FAFSA as soon after it’s released as possible, since some aid is awarded on a first-come, first-served basis. Submitting the form early could help improve your chances of receiving financial help for college.
Most importantly, don’t miss the submission deadline. Technically, the FAFSA deadline is June 30 for the school year you are requesting aid for. But colleges have their own FAFSA deadlines, which are often much earlier than the federal deadline. Plus, each state and educational institution has its own deadline for submitting the FAFSA.
You can check state deadlines on StudentAid.gov. For individual college due dates, you can go to the website for each college you’re interested in applying to, or reach out to their financial aid offices. Make sure you submit the FAFSA by the earliest deadline of the bunch.
Prepare Ahead of Time
To simplify the process of filling out the FAFSA, it’s helpful to gather everything you need in advance. Here are some of the things you may need for both yourself and your parents (if you’re a dependent):
• Social Security Numbers, or Alien Registration Numbers for noncitizens If you don’t know these, you can request them from the Social Security Administration or U.S. Citizenship and Immigration Services.
• Driver’s license numbers
• Tax returns For the 2026–27 academic year, you’ll be asked for your 2024 tax information, which can typically be transferred directly from the IRS. If you or your parents have had a change of income since that tax return, you may need to let the financial aid departments of the schools you’re applying to know directly.
• Records of assets you or your parents own This can include bank statements showing savings and checking account balances or records of investments such as stocks, bonds, or real estate, excluding the family home.
• Records of income that isn’t taxed This might include child support or interest.
• Federal school codes for the institutions you’re applying to You can find these on the Department of Education website. Include every school you’re even remotely considering, even if you haven’t yet submitted your application or been accepted. There are no repercussions if you end up listing schools you don’t apply to or get into. However, if you add a school later, there may be less financial aid available.
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Apply Online
You can request a paper form, but if possible, submitting your FAFSA online is the quickest and easiest way to submit your application. Make sure you are on the official Student Aid website, which should end in “.gov.” If you’re asked to provide credit card information, you’re in the wrong place (after all, “free” is in the form’s name).
Before you get started, you’ll need to create an FSA ID on StudentAid.gov. This is the username and password you’ll use to electronically sign your FAFSA, as well as to prefill information in future years, since you’ll need to fill out the FAFSA each year you want to apply for student aid.
If you are a dependent student, your parents will need to create an independent FSA ID. Because this ID serves as an official signature, you should create your own and not share it with anyone.
Take Advantage of Time Savers
Besides using an FSA ID, another way to speed up the application process is to use the IRS Data Retrieval Tool. This allows you to automatically populate answers to some questions on the FAFSA with information from you or your parents’ federal income tax returns. This not only saves time, but is also a good way to make sure you submit accurate numbers.
Get Help if You Need it
If you’re confused about something, don’t worry — and don’t ignore it. First, check the frequently asked questions on the FAFSA website. If that doesn’t help, you can contact the Federal Student Aid Information Center by chat, email, or phone.
Common Mistakes to Avoid
Every year, certain errors crop up again and again in FAFSA applications. To help prevent delays in your financial aid, it’s worth ensuring you aren’t making these common mistakes:
Leaving Fields Blank
Leaving fields blank can result in errors when filing your application. Instead, write “0” or “N/A” where relevant.
Filling Out the Application at the Same Time as Your Parents
The FAFSA will require financial information from both you and your parents. As mentioned, both you and your parents will have your own FSA ID information to log in and make changes to the FAFSA application. If you log in at the same time, you risk both of your changes not being saved properly.
Providing Incorrect Information
The FAFSA requires a lot of personal and financial information. Making careless errors or submitting incorrect information can cause issues with your application. For example, make sure you submit the correct Social Security number. If you don’t use this number often, you may not know it by heart. But being one digit off here can throw things off.
Issues can also occur if you are providing the wrong figures for investments. Carefully follow the instructions to report student and parent investments in the right place and understand what to include or exclude.
Take your time and read the questions carefully. Breezing through the application in a rush can potentially lead to wrong answers or missed fields.
The FAFSA isn’t a one-time deal. Most schools require you to re-apply every year, so make sure you stay on top of deadlines.
💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.
The Takeaway
Filling out the FAFSA is the first step to getting the financial aid many students need to make college or graduate school a reality. A few tips to help you toward FAFSA success include: reading the application closely, making sure you have the most up-to-date financial information at hand when you are ready to submit, and submitting the application as early as possible. And don’t forget, you’ll need to submit an application annually.
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 do I maximize my FAFSA money?
To maximize your FAFSA® money, submit your application as early as possible, since some aid is awarded on a first-come, first-served basis. Report accurate information and avoid overestimating income or assets, which can reduce eligibility. It’s also wise to list multiple schools to expand your aid opportunities and to research state and school deadlines in addition to the federal deadline.
What is the #1 most common FAFSA mistake?
One of the biggest FAFSA® mistakes is failing to complete the form at all, often due to the misconception that income is too high to qualify for aid. Many families miss out on federal grants, work-study programs, and even low-interest loans because they don’t apply.
Another common FAFSA mistake is leaving blank fields, or skipping questions. Leaving multiple blanks can cause miscalculations and even rejection of your application. If a question does not apply to you, enter a “0” or “not applicable” instead of leaving a blank.
What are 5 tips for filling out the FAFSA?
1. Apply early — funds are limited and some aid is first come, first-served.
2. Use the IRS Data Retrieval Tool for accurate tax information.
3. List multiple schools to maximize aid opportunities.
4. Don’t skip questions — leaving blanks can reduce eligibility.
5. Review before submitting to catch errors in Social Security numbers, income, or asset reporting.
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.
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our
FAQs
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., Puerto Rico, U.S. Virgin Islands, or American Samoa, 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 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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