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When students take a gap year, they typically take a semester or year off between high school and college in order to take advantage of experiential learning. While extraordinary opportunities may be awaiting you, you may struggle to think of ways to pay for the experience.

If that’s the case, there are options that may help you pay for your gap year — beyond funding the costs out of pocket. Continue reading for more information on options you may want to consider should you find yourself in need of help funding your non-classroom experience.

Gap Year, Explained

First of all, what is a gap year and why do people take them?

Students may choose to take a semester or year off with the goal of getting a break from academics and prior to diving into postsecondary education. Students may choose to complete an internship, travel, study on their own, volunteer, or pursue other interests. Some students choose to pursue a gap year with the intention of discovering what it is that they want to major in or the career path they’d like to pursue.

Many students report a developed self- and cultural awareness, increased independence, and confidence after taking a gap year.

Students may choose to apply to colleges and universities during their senior year (and let colleges know of their plans to take a gap year), during their gap year or after they’ve completed their gap year. Waiting until later often gives them the advantage of being able to report on what they’ve learned during their time away from academics.

In some instances, a gap year may also be something for a student to do after college or in-between college and post-graduate study.

Planning Out Your Gap Year

It’s important to plan out your gap year ahead of time so you have a plan for how you’ll spend your time. It can be easy to waste time when you break from a traditional schedule. Having a plan ensures that you’ll have a better chance of achieving your goals — you might even curb expenses as well.

It may be helpful to break your plan down into measurable goals. For example, if you plan to travel, write down where you’d like to be on specific dates so you don’t miss any of your intended milestones. It’s also a good idea to budget for your gap year ahead of time so you know how much it will cost and the amount you’ll need per week or month to live on.

Options for Financing Your Gap Year

You can always finance your gap year with cash you or your parents have saved or with money from a well-meaning grandparent. However, not everyone has cash bankrolling their gap year. Let’s take a look at a few ways you may want to consider financing your gap year.

Gap Year Scholarship or Grant

A private entity may offer you a gap year grant or scholarship. A scholarship is free money that you don’t have to pay back that can come from a wide variety of entities, including clubs, organizations, foundations, charities, businesses, the government and individuals. It’s possible to find scholarships specifically for gap years, particularly for students who want to volunteer, improve certain skills, volunteer, develop a talent, or complete another type of experiential learning.

Grants are also a form of financial aid that doesn’t have to be repaid. Grants may also help you fund your gap year without having to repay the money. However, it’s important to check into the fine print on both college grants and scholarships to ensure that you fit the criteria. (Some scholarships and grants require you to get college credit in order to qualify.)

529 Account or College Savings

If you or your parents have college savings set aside in a brokerage account, savings or checking account, or a certificate of deposit (CD), you may want to use this money to pay for gap year expenses.

A 529 plan is an investment account that offers investment opportunities and tax advantages when used to pay for qualified education expenses. You may take withdrawals from a 529 plan to pay for qualified educational expenses for tuition, room, board, fees, books, equipment for classes, and other supplies at an accredited institution. If you meet these requirements, you won’t pay federal income tax.

However, if you spend the money on an expense that doesn’t qualify as a higher education cost (such as your plane ticket to go overseas). Be careful when using your 529 savings unless you’re attending a specific program through an accredited institution.

Find a Paid Internship or Part-Time Job

Obtaining a paid internship or part-time job can help you float some or all of the expenses of a gap year. For example, if you plan to spend your year volunteering at soup kitchens throughout a major city, a part-time job may help you pay for transportation to get there and also other living expenses. On the other hand, if you intend to use your gap year to gain work experience to discover your career goals, a paid internship may help you take care of all of your living expenses.

Recommended: Jobs to Help Pay for School Expenses

Apply for Financial Aid

Financial aid can refer to a wide range of types of money to pay for credits at college or career school.

Some gap year programs offer college credit, so you may be able to apply for federal financial aid using the Free Application for Federal Student Aid (FAFSA®). The FAFSA can give you access to grants, federal student loans, and other opportunities.

While you may have never had any intention of taking college credit during a gap year (you may feel that it defeats the purpose of a gap year!) but taking a college-credit class or two as part of your experience or doing a credit-based gap year program may help cover some of your costs.

Personal Loans

Taking out a personal loan involves borrowing money from a bank, online lender, or credit union that you repay in fixed installments. Personal loans are not backed by collateral, which also means they are called unsecured loans. (Secured loans, on the other hand, are backed by collateral, such as a house.) Personal loans often carry higher interest rates than some other types of loans. It may be difficult for someone to get a personal loan without a cosigner if they don’t have a long history of building credit.

It’s a good idea to be careful about taking out a personal loan due to these higher interest rates and having to bring a cosigner on board. That cosigner could end up paying for your loan if you default on the loan and ultimately, it could affect both of your credit scores.

Using Private Student Loans to Finance Gap Year

Private student loans are student loans that come from a bank, credit union, or other private lender. You probably cannot use private student loans to finance your time off from school if you plan to backpack across Europe, but if you do take a few classes as part of a gap year program, you may be able to use private loans to cover your costs. Check with lenders about their requirements before you apply and whether or not a particular program will qualify.

The Takeaway

A gap year can help “gappers” explore career goals, develop confidence, volunteer, and more. If you’re thinking carefully about a gap year, you also might be worried about the cost of taking that time off. Consider putting together a list of costs, goals, and plans so you can make sure that your gap year goes off without a hitch. From there, you can start planning how you’ll cover your expenses during your time away from the classroom.

Finally, don’t forget that you can always put together a combination of sources of funding. For example, you can pay for your gap year with a combination of scholarships, money saved, and internship money.

3 Student Loan Tips

1. 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.
2. Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too. You can submit it as early as Oct. 1.
3. It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

FAQ

How much should I budget for a gap year?

The amount you should budget for a gap year depends on your personal circumstances. It also depends on what you plan to do. Living at home with your parents and volunteering in your community will likely cost less than hopping on a plane and spending a year abroad. No matter what your plan, it’s best to get an estimate of your expenses ahead of time and then use that as a basis for your budget throughout your gap year.

How can I get funding for a gap year?

There are many ways to get funding for a gap year. Depending on your situation and circumstances, you may consider tapping into scholarships, grants, a 529 account, college savings, through a paid internship or part-time job, financial aid, personal loans or private student loans. There’s no single way to fund your gap year, and you may also want to consider a combination of different sources to pay for it.

How long should a gap year be?

A gap year can be any length of time, but they typically last between two weeks and one year.

Photo credit: iStock/Pekic

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.

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

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

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

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Going to college or graduate school is a serious investment in your future — both professionally and financially. Naturally, you’ll want to know how much financial aid you’re eligible for, including student loans, grants, and work-study programs.

The amount of federal aid that prospective and current students receive is based on a variety of factors, and everyone’s financial situation is unique. But familiarizing yourself with the following requirements and questions can help paint a clearer picture of how much FAFSA money you will get.

What Are the Eligibility Requirements?

Many incoming and current college and graduate students are eligible for federal aid. Students must satisfy the following criteria to apply:

•   Be a U.S. citizen, national, or eligible noncitizen

•   Have a valid Social Security number, unless you’re from the Federated States of Micronesia, Republic of the Marshall Islands, or the Republic of Palau

•   Have a high school diploma or GED

•   Promise to use awarded federal aid for education purposes only

•   Do not owe refunds on any federal student grants

How Do I Begin the FAFSA?

The first step to completing the FAFSA is creating your FSA user ID and password. From there, you’ll answer a series of questions covering demographic information, schools you are interested in attending, financial details, and information from parents or guardians based on dependency status.

Filling out the FAFSA may feel intimidating, but a little preparation can save you from common FAFSA mistakes, like leaving important fields blank.

What Factors Affect FAFSA Money?

The application includes questions about demographics and finances for students and sometimes their families to answer. Collectively, this information will determine how much need-based and non-need-based aid students qualify for.

Applying for the FAFSA Every Year of School and on Time

Filling out the FAFSA is not a one-time deal. Students must file the FAFSA each year they are enrolled in college or graduate school. Yet approximately 40% of high school seniors do not fill out the FAFSA, and a quarter of college and graduate students do not renew their application after their first year of studies.

There are several important FAFSA deadlines to be aware of. The federal deadline for the 2023-2024 academic year (this includes students beginning school in winter or spring 2024) is June 30, 2024. For the 2024-2025 academic year, students can submit the FAFSA once it opens in December 2023.

State deadlines vary, and many precede the federal deadline by one or several months. Applying early can increase your chance of receiving additional financial aid from your home state in the form of grants or scholarships.

Dependency Status

An applicant’s dependency status is determined by 10 questions found at StudentAid.gov/dependency. Even if your parents claim you as a dependent for tax purposes, you may still qualify as an independent for federal financial aid. You most likely qualify for independent status if you meet any of the following requirements when filling out the FAFSA:

•   At least 24 years old

•   Married

•   A graduate or professional student (law, medicine, etc.)

•   A veteran or active member of the armed forces

•   An orphan, ward of the court, or emancipated minor

•   Claiming legal dependents other than a spouse

•   Homeless or at risk of becoming homeless

Your dependency status affects how much financial aid you’re eligible to receive. In many cases, independent students can be eligible for more financial aid, as they are assumed to be paying their own tuition and living expenses.

Still, dependent students may be eligible for a variety of financial aid opportunities from federal or state governments and colleges through the FAFSA. Most incoming and current undergraduate students are considered dependent. This means that information from parents or guardians, such as tax returns, must be submitted and will affect whether financial aid is awarded and how much.

In special circumstances, students may file for a dependency override. These are awarded case by case, and are typically reserved for students facing exceptional family-related issues or whose parents are unwilling to provide information for the FAFSA.

Expected Family Contribution

Expected Family Contribution, or EFC, primarily applies to dependent students. The EFC calculates eligibility and aid based on several financial and demographic indicators, including:

•   A family’s taxed and untaxed income

•   A family’s assets and benefits (unemployment and Social Security, for example)

•   Family size and number of dependents enrolled in or likely to attend college

This calculation determines need-based and non-need-based aid eligibility and amount, rather than a figure a family is expected to pay toward education. Typically, a lower EFC translates to greater financial aid eligibility as a result of higher need.

Starting with the 2024-2025 school year, the EFC will be replaced by the Student Aid Index, or SAI. It fulfills the same basic purpose but works a little differently. You can learn more about the upcoming Student Aid Index here.

Cost of Attendance

Education costs can vary considerably based on merit-based scholarships, in-state vs. out-of-state residency, and other factors. The amount of FAFSA money you receive will also depend on the cost of attendance for your chosen college or university.

The cost of attendance encompasses tuition, fees, room and board, books and school supplies, and expenses associated with child care or disabilities, if applicable. A lower cost of attendance usually translates to less aid, because the funding can be used only for education purposes.

Not sure where you want to apply? Our College Search tool can help.

How Much Money Will I Get From FAFSA?

The amount of FAFSA money you receive cannot exceed the cost of attendance for your chosen college or university.

Before applying, the Federal Student Aid Estimator is a useful tool to estimate the amount of federal student aid you may qualify for.

Assuming that you meet the eligibility criteria and are applying on time, you may receive some form of federal financial aid, especially if your EFC is less than your cost of attendance. Potential sources of federal student aid include the following programs:

Grants

Unlike loans, grants are free money to put toward your education that does not have to be paid back. After completing the FAFSA, students with proven financial need may receive aid in the form of a Federal Supplemental Educational Opportunity Grant or Pell Grant. Opportunity grants are allocated based on need, other aid awarded, and college budgets. Pell Grants change annually but can be as high as $7,395 for the 2023-2024 academic year.

Work-Study

Federal work-study programs typically involve a part-time job on or off campus. Wages are set by the college but must meet minimum-wage requirements. Work-study schedules are intended to be structured around students’ classes.

Federal Loans

Eligibility for federal student loans is generally broader than for grants and work-study programs. Federal loans are either subsidized or unsubsidized, with subsidized loans being need-based and including interest deferment and grace periods. On the other hand, unsubsidized loans begin accruing interest as soon as they are paid out to borrowers.

Different types of federal student loans exist, and each has a maximum award amount according to dependency status and year of study. Dependent undergraduate students have an aggregate loan limit of $31,000. Independent undergraduates can take out $57,500, and graduate students can borrow up to $138,500.

How Else Can I Pay for College?

If financial aid isn’t enough to cover your tuition and other education expenses, there are ways to make college more affordable.

Scholarships and Grants

Besides scholarships granted by your chosen college, there are opportunities offered by private foundations, community groups, and nonprofit organizations. Awards can be given based on academic merit, need, field of study, or participation in a specific sport or activity. Our Scholarship Search tool can help you unearth available awards filtered by school type, field of study, state, and more.

Try to stay on top of scholarship and grant applications and deadlines as they can come and go quickly. Winning a scholarship or a grant is basically finding free money, and you don’t want that money to go unclaimed.

Private Student Loans

Students who cannot pay for college with scholarships and federal aid alone can apply for private student loans from various financial institutions, including banks, credit unions, and online lenders. Interest rates, forbearance, and other terms and conditions can vary, so shop around to compare loan rates and terms.

SoFi’s no-fee private student loans are an option for students to help pay for college and graduate school. Flexible repayment plans can ease the search for a loan that works with a student’s budget and financial plan.

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.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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

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

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

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Congrats, you got into college. That’s a shining achievement in its own right. Now you’re ready for some secrets to help you excel once you pass through the gates — be they ivy-covered, steelbound, or on a virtual campus you. It turns out that rising to the top of your class academically, like cream in a farm milk bottle, can have important benefits for Gen Z.

With the cost of college still rising (counting room and board, a private college can run up to $80,000 per year, and a public college, up to $30,000 or more), getting straight A’s can help you in key financial ways. It can put you on track for a lucrative career or give you an edge in a competitive internship field.

Our mini crash course has info on:

•   Getting into a college major that can lead to a high-paying career

•   Good study habits for nailing A’s

•   Whether colleges care about your GPA

•   Whether employers look for straight A’s in college.

What Is a 4.0 GPA in College?

Your GPA (grade point average) is a number that shows your academic standing, based on the grades you get in all classes. The scale starts at the top with 4 (for an A), 3 (B), 2 (C), 1 (D), and O (for F, or failing). A 4.0 GPA means you aced every class and got straight A’s in college.

Do Colleges Care About Straight A’s?

To get in the college door, the answer is often yes. Many college admissions teams do notice straight A’s in a quest to enroll the best and brightest high school students.

Once you are on campus, your college may not expect all A’s, but some colleges and universities may require a minimum GPA in introductory courses before allowing students to declare a popular major that typically brings lucrative returns later. The list includes mechanical engineering, computer science, nursing, finance, and economics. These universities want students of the highest academic caliber for the highest-earning majors.

Another reason colleges care about your grades: You need to maintain a certain GPA as a sophomore, junior, and senior to continue to qualify for federal student aid. In order to maintain eligibility for federal student aid, including federal loans and grants, students need to meet their school’s standards for Satisfactory Academic Progress (SAP). Each college is allowed to set its own minimum GPA. (Look into a private student loans guide for other lending options.)

Recommended: What Are Merit Scholarships?

Merit scholarships may also have minimum GPA requirements, so maintaining a high academic standard may be important for maintaining eligibility for merit awards as well.

Do Employers Look at Your GPA?

GPA, a benchmark once widely used by employers, is now considered by fewer than half, according to the Job Outlook 2022 survey by the National Association of Colleges and Employers (NACE). That’s a dip from five years ago, when, according to NACE, 67.5% of respondents said they used GPA to identify promising candidates. The survey found that among businesses that use GPA as a screening tool, 3.0 is the most common cutoff.

According to NACE, the trend away from using GPA appears to reflect awareness that GPA screening may not build an inclusive workforce and can be a disadvantage to students who balance school with work and other responsibilities. Also, as employers compete for talent, they are reevaluating long-used screening tools.

How Hard Is It to Get a 4.0 in College?

Whether you’re getting all A’s often depends on your major, the courses you take (organic chemistry, anyone?), and even the college you attend. But chasing a 4.0 can be hard on your life balance. If all you do is study, with no sleep, social life, or campus activities, your health and mental well-being may suffer.

Instead of overemphasizing your GPA, it may help to also focus on how you’re challenging yourself. A GPA is just one measure of your coursework.

Tips for Getting All A’s in College

If you are after all A’s, this action plan could help you achieve your goal.

Select a Major That You Are Passionate About

College is the time to immerse yourself in subjects that enthrall, inspire, and move us, whether that means microbiology or British literature. But if your mind is in the art world and your nose is in a sociology book, your interest can wane, and you may be far less likely to excel. Choose a major that ignites your brain power and A’s will be more attainable.

Time Your Classes Well

When are you most alert? Are you wide awake in the morning and dragging by 5? Schedule classes accordingly. Can you focus on a weekly 3-hour seminar or would you do better with a shorter class that meets more often? Know thyself, and how you learn and work most productively.

Take Advantage of Professors’ Office Hours

If a calculus formula is not crystal-clear or you want to talk a little more about that short story structure, stop by your professor’s office during posted hours or pop in virtually if that’s an option. Professors post hours so students can get the help they need.

Practice Good Time Management

Make an organized schedule. Use Google Calendar on your phone or get an actual planner with paper pages. (Relieve stress with stickers and doodles. Get pretty markers at the campus bookstore.) Don’t double-book time slots, whether for a study/coffee date with a classmate or your shift at the campus newspaper.

Closely Track Grades

Don’t wait until the end of the semester to see what your average is in Italian class. Keep up to date on every grade and pump up your study efforts if necessary.

Set Study Time Blocks

Build them in wherever and whenever possible. Several short sessions can be as productive as one long one. Review and study notes from day one, to start building a bank of knowledge. When studying, turn off your phone and leave it in your backpack. Avoid looking at emails or other digital distractions. Take notes on relevant readings and review and organize class notes each week so you don’t have to cram come exam time.

Plan your study location based on the lowest possible risk of distractions, such as a roommate who might want to order wings and binge watch the latest Netflix original. Adjust times and places as needed; be flexible. Maybe 30 minutes at Starbucks between classes is all you have one day. But if you block out two hours to study, stick to it. Consider enlisting a study buddy.

Benefits of Getting Straight A’s in College

Excelling in your classes can bring perks like these.

Dean’s List Recognition

The dean’s list, a term dating to the early 14th century, comes from the Latin decanus (“head of a group of 10 monks in a monastery”). You, of course, are at college, not a monastery, but you are at the head of the class when you make the dean’s list.

The distinction is usually reserved for full-time students at a specific GPA. Being on the dean’s list could help you stand out in a field of applicants for plum internships and summer jobs. Consecutive semesters on the list show you can achieve and maintain high standards.

Scholarships and Grants

Straight A’s can potentially translate into money to help pay college bills. Some scholarships have GPA requirements; read the fine print.

Merit-based college grants are awarded to students who demonstrate high levels of academic achievement, a commitment to community service, or excellent leadership skills. While you may not need straight A’s to qualify, it won’t hurt to strive for the gold and set a high bar for yourself.

Recommended: Merit Aid for College

The Takeaway

Getting all A’s in college can bring big benefits, from helping you secure a place in a crowded major with lucrative career returns (such as engineering or computer science) to earning you a place on the dean’s list, a marker that helps you stand out in a competitive internship field. With the right study skills, you can seriously up the odds of acing your classes.

3 Student Loan Tips

1.    Can’t cover your school bills? If you’ve exhausted all federal aid options, private student loans can fill gaps in need, up to the school’s cost of attendance, which includes tuition, books, housing, meals, transportation, and personal expenses.

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

3.    Would-be borrowers will want to understand the different types of student loans peppering the landscape: private student loans, federal Direct subsidized and unsubsidized loans, Direct PLUS loans, and more.

FAQ

What is a 4.0 GPA in college?

A 4.0 GPA (grade point average) means you have an A in all of your classes.

How do you become a straight-A student?

Getting straight A’s takes diligence, good study skills, and some planning. It also depends on the courses you take. It generally helps to pursue a major that taps into your passions and strengths. Are you more comfortable with a paintbrush or camera than in a science lab? Then fine arts classes will be easier for you to ace.

Do colleges care about straight A’s?

Colleges may not care if you get straight A’s, but some schools may require students to have a minimum GPA in introductory courses before allowing them to declare a popular major that typically brings lucrative returns in the work world. The list includes mechanical engineering, computer science, nursing, finance, and economics. Another reason to watch your GPA: Federal student loans and many scholarships and grants have a minimum GPA requirement.

Photo credit: iStock/Luis Echeverri Urrea

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

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

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

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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Scholarships can be a great way to get help paying for college, but unfortunately the competition for these awards can be intense. Many college scholarships require writing an essay as a part of the application process.

Writing an exceptional college scholarship essay stand out is just one thing that can help set your application apart from the rest. Continue reading for tips on crafting a strong college scholarship essay.

1. Plan Ahead

Let’s start with one of the most practical tips for writing a scholarship essay. The first step to success when writing a college scholarship essay is to not procrastinate. Plan ahead to make sure there is plenty of time to write the essay, review it, and edit it.

It’s also important to write down the deadline and to set reminders as that deadline nears. If you’re applying for multiple scholarships consider setting up a tracker with important deadlines and application requirements so you can stay on top of the needs for each application.

Allowing enough time to write and edit can help you improve the quality of the essay, instead of trying to cram at the last minute.

2. Write to Your Audience

All scholarship providers are looking for students who meet certain criteria. Often this criteria includes students who have experiences or interests that match the mission of their organization.

Spending some time researching the organization offering the scholarship can help give essay writers the ability to customize their essay to their unique audience. If their writing can illustrate an alignment of values, their essay may be more memorable.

3. Read the Instructions and Follow Them

Before starting an essay, students should take their time to carefully read all application instructions and make a plan to follow them. No matter how strong an essay is, if the applicant fails to follow the instructions they may find themselves disqualified from the competition.

4. Pick a Topic You Care About

Because scholarship application essays can feel like a lot of work, it’s helpful if the writer chooses a topic they are really passionate about. Their essay will come across as more genuine and meaningful if they care about what they are writing about which will make a stronger impact on the scholarship committee than if they chose to write about a more generic topic.

5. Crafting a Strong Introduction

The introduction is the first chance the student has to capture the attention of their essay reviewer. It’s a good idea to spend some extra time crafting a compelling introduction so that the reader is interested, and excited, to finish the essay.

6. Pay Attention to Style

College scholarship essay reviewers will be more impressed by essays that take spelling, grammar, and general style into account. Read and re-read your essay to ensure that the tone of voice is consistent and there are no grammatical errors. Get some other opinions on the writing too. Consider asking teachers, counselors, or trusted friends or family members to review the essay before submitting it. A second set of eyes can go a long way in catching spelling, grammar, or style issues.

7. Follow a Pre-Planned Structure

To avoid having a messy essay, starting with an outline can help. Sit down and create a pre-planned structure before starting to write the actual essay. It can be helpful to think about how to incorporate the following messages into the outline.

•  Who are you? And why are you who you are?

•  What have you accomplished?

•  What are you hoping to accomplish in school and after school?

•  Why do you need a scholarship?

•  How will a scholarship make a difference?

8. Show, Don’t Tell

Another key scholarship application essay tip is to show, not tell. What do we mean by that? Instead of telling the reader exactly what they need to know, show them what they need to know.

For example, if a student wants the reader to know they are committed to their community, instead of saying “I am committed to my community” they can show this by saying, “I volunteer at my local dog shelter and beach clean up organization to help improve the life in our community for all residents and pets.”

9. Sell Yourself

It’s important to use the space in a college scholarship application to highlight achievements and how the scholarship will make it possible to achieve future goals. Pick a few select accomplishments or traits to focus on so the essay isn’t too heavy handed, but don’t shy away from being complementary.

10. Reread and Spell Check, Spell Check, Spell Check

We mentioned paying attention to spelling and grammar earlier, but as a friendly reminder don’t forget to do one last spell check at the end. This is one of the most important scholarship essay writing tips to keep in mind.

Our eyes get used to seeing what we type, so print out the essay and review it on paper to catch typos you may have missed on the screen. This is another time it’s a good idea to ask for a second set of eyes to look at the essay and to flag any errors. Be especially careful to double check the spelling of the name of the scholarship or organization.

Alternatives to Scholarships

Scholarships generally don’t need to be repaid and finding this free money for college can be an incredibly helpful resource for students trying to pay for college. Spending time applying for scholarships is well worth it. In addition, students may also rely on alternative funding sources to pay for college.

Some common funding sources include grants, federal student loans or private student loans. To apply for federal financial aid, students will need to fill out the Free Application for Federal Student Aid (FAFSA®) each year. This application will allow students to find out if they qualify for federal grants, scholarships, work-study and federal student loans. Some colleges use information provided on the FAFSA to determine institution-specific awards. Continue reading for more information on alternatives to scholarships.

Grants

Similar to scholarships, recipients of grants don’t usually need to pay back the money they’re given. Students can check with their college’s financial aid office to learn more about available grants and can fill out the FAFSA annually to see if they qualify for any grants.

Financial Aid

Alongside grants and scholarship, students can also consider pursuing other types of financial aid such as work-study jobs designed to help students earn money to pay for school. Those who served in the military or are the spouse or child of a veteran may be eligible for aid and students who are studying internationally may qualify for unique types of financial aid.

As mentioned, to apply for federal financial aid students will need to fill out the FAFSA each year they are in school.

Private Student Loans

Private student loans come from a variety of different financial institutions and they can help fill any financial gaps left after using financial aid and federal student loans to pay for college. To apply, students will need to file applications directly with the private lenders.

Private student loans don’t necessarily offer the same benefits as federal student loans — like deferment options or income-driven repayment plans. For this reason, students generally consider private student loans after thoroughly reviewing all other options.

Federal Student Loans

Whether someone is an undergraduate or graduate student, federal student loans — which are funded by the U.S. Department of Education — usually have better interest rates and terms than private student loans do and they come with unique federal protections like income based repayment plans.

The Takeaway

Scholarships are a great way to get some financial relief when paying for school, but students shouldn’t expect scholarships to cover all of their higher education expenses. Many students will use a combination of scholarships, grants, savings, and student loans to pay for their education.

When federal student loans and other sources of funding aren’t enough to fully foot the bill, private student loans can be an option to consider. SoFi private student loans have absolutely no fees and allow borrowers to select one of four flexible repayment plans.

FAQ

How do you start or address your scholarship essay?

To start off a college scholarship essay, it can be helpful to address: what, what, when, where, and why. This way the reader will know the basics of who the student is and why they are applying for the scholarship.

What is the most important thing to avoid in a scholarship essay?

Unnecessary mistakes are the most important thing to avoid when writing a scholarship essay. Double check for spelling or grammatical errors, make note of any key deadlines, and be sure you are fulfilling all application requirements.

How long should scholarship essays be?

All scholarship essays will have different length requirements. Double check the desired word count for the essay before submitting it.

Photo credit: iStock/InspirationGP

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

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

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

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

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A degree in finance can open doors to a wide range of exciting career opportunities. Whether you’re looking to work as a financial analyst in a private business, an accountant for a nonprofit, or help individuals achieve their retirement goals, enrolling in a collegiate finance program can give you the tools you need to succeed.

But the tools of higher education don’t come cheap. Even with an online finance degree program can cost $24,000 to $75,000. Fortunately, there are many available avenues in the way of loans, grants, and scholarships that can support your dreams and ease financial anxiety.

What Is a Finance Degree?

A finance degree program focuses on the study of money management, investing, and market trends. It can prepare you for a job in the economic sector, or lay the groundwork for graduate studies in business or law.

Undergraduates enrolled in an accredited four-year program typically obtain either a Bachelor of Science or a Bachelor of Arts, depending on the area of focus. Introductory coursework can include the fundamentals of economics, statistics, business law, and accounting. Some people interested in working in finance may also consider pursuing a math degree.

Is a Degree in Finance Worth It?

Good News: Entry-level compensation in the field of finance tends to top the national median salary. The employment rate in this sector is expected to grow 8% “from now until 2030.

While jobs in the financial realm are competitive, there is an expanding need for more accountants, strategists, and market analysts. Most of these ground-floor opportunities require at least a bachelor’s degree in finance. Another big bonus of a business finance degree program is connections—the alumni and internship possibilities that could lead to employment.

What Kinds of Finance Degrees Are There?

Educational institutions can offer a Bachelor’s in finance, Associate’s Degrees, Master’s Degrees (including MBAs), and Doctorate programs. Wondering what to do with a finance degree? Popular subfields within a finance program include financial planning, management, and accounting, which could help steer you in a career direction.

Financial Management

A student pursuing a degree in financial management learns how to make informed financial discussions for nonprofit businesses and corporations. Students can take classes in business economics, data analysis, financial reporting, and business law.

Financial Planning

A degree in financial planning prepares you to assist businesses, individuals, and families in creating monetary plans for the future. Course topics can be in retirement strategies, investment portfolios, tax planning, healthcare, estate planning, and risk management.

Accounting

While a degree in accounting offers a more specific focus than a general finance degree, the employment opportunities are far from limited. There are an estimated 135,000 job opportunities projected each year. Students take courses in auditing, tax preparation, and qualitative analysis.

What Can I Do With a Finance Degree?

From analysts to money managers, to a think tank researcher or top government economist, a degree in finance can pave the way to a world of job opportunities.

Loan Officer

Loan officers work for banks, mortgage companies, and credit unions. They are instrumental in helping businesses and individuals acquire a home, a business loan, or new car. A loan officer usually holds a bachelor’s degree in finance, accounting, or business.

Personal Financial Advisor

Personal financial advisors work with individuals and families to reach their economic goals. They assist with investment portfolios, navigating tax laws, and can help make retirement dreams come true. Financial advisors may be required to complete certifications, acquire licenses, or complete ongoing education requirements. Requirements may be dictated by your specific career path, employer, or state.

Financial Examiner

Banks and other institutions rely on financial examiners to help keep them out of trouble. A financial examiner helps businesses comply with current laws and regulations, making sure all their transactions follow mandated guidelines. They can specialize in risk assessment, keeping companies fiscally secure, or in consumer compliance to protect customers.

Financial Analyst

A financial analyst works for banks and investment companies assessing market trends to inform investment choices and strategical direction. They help create financial forecast models, fiscal reports, and then recommend a course of action.

Financial Manager

A financial manager oversees the financial well-being of a business. Responsibilities include supervising company cash flow, keeping tabs on expenses, submitting financial reports, and developing long-term fiscal goals for investment institutions, banks, or insurance companies.

How to Pay for a Finance Degree

A degree in finance can help put you on a career path to success, but the journey usually isn’t free. In 2020, 64% of college grads took out loans for school. An undergrad program can cost you, and a graduate degree only adds to the educational price tag.

Fortunately, there is federal aid, private student loans, scholarships, and other options that can help alleviate the fiscal burden of higher education.

Federal Student Loan

Applying for a federal student loan is usually the first stop on the quest for college funds. With a current interest rate of 3.73% for undergraduates, federal loan rates are fixed and lower than most private loans. They also don’t require a credit check or cosigner. You don’t have to start repayment until after college, so you can worry about your coursework vs. a monthly bill.

The first step is to fill out the Free Application for Federal Student Aid “Free Application for Federal Student Aid (FAFSA®) to determine how much financial aid you can receive. This application is used to determine student eligibility for federal financial aid including scholarships, grants, and work-study, in addition to federal student loans.

Private Student Loan

When federal loans and things like scholarships aren’t enough to cover the cost of a finance degree program, a private loan for students can be one option to fill in the gaps. These loans are issued by banks, online lenders, or credit unions. The lender will check your credit score and financial records to determine the loan amount and terms for which you qualify.

Younger applicants who don’t have a credit score or have limited employment history may consider applying with a cosigner, typically a parent or legal guardian, to pledge responsibility for your loan. Rates for undergrad and graduate student loans can vary, so be sure to do your homework and shop around at various lenders to find the best loan for your situation.

It’s a good idea to research the pros and cons of federal vs. private student loans to determine how they can work best for you.

Credit Card

Most colleges and universities accept credit cards for tuition payments. But while it may be tempting to rack up those travel points and cash back rewards, be careful. Many schools will charge you a convenience fee. And even if you have a 0% interest card, that rate can jump up to 12.99% to 24.99% after 18 to 21 months. Might be wise to check out other ways to get that finance degree before paying with plastic.

Borrow from Loved Ones

Borrowing from a loved one for your finance degree may allow for lower interest rates (if any) and generous repayment arrangements. But be sure to spell the terms of the loan on paper to legally protect you and the lender, and to avoid potential confusion, argument, or future resentment.

If a parent or guardian is unable to loan you money directly, they could consider borrowing a Direct PLUS Loan from the government or a private parent student loan.

Pay Cash

“Cash is king!” as the saying goes. No educational institution will turn it down. By working as much as you can during school and summer vacations to help pay for college, you can avoid borrowing interest-accruing loans.

Scholarships

College scholarships mean free money gifted from numerous organizations. They can be based on financial need or merit — awarded for grades, test scores, talent, ancestry, or special interests.

Scholarship money does not generally have to be paid back. You can find information from government resources, a college financial aid office, a high school counselor, or this state-by-state scholarship guide. Pay attention to the submission deadlines and application requirements so you don’t miss your chance to qualify.

Grants

One difference between grants and scholarships is that grant money is typically awarded solely based on financial need, and often by government agencies. For example, the Federal Pell Grant is gifted to undergraduate students from low-income households. Like scholarships, grants do not have to be repaid.

The Takeaway

The job rate in the finance sector is growing, with higher than average entry-level salaries. There’s an optimistic chance a degree in finance could yield good returns in the future. With all the potential funds from federal and private student loans, scholarships, and grant money, pursuing a degree in finance doesn’t have to be a high-risk investment.

FAQ

What does a finance degree do?

A finance degree can prepare you for employment in the financial sector—as an analyst, accountant, manager, financial planner, or loan officer.

What is the best degree for finance?

Any kind of degree from a finance program could set you up to succeed in your desired field. Some of the higher paying finance jobs are in financial management and analysis.

How can I pay for a finance degree?
Investigate federal and private student loans, grant money, and scholarship opportunities.

Photo credit: iStock/Nuthawut Somsuk

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

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

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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

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

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