Dec
19
2025
Numbers and stock quotes appear on a computer screen in multiple colors.

What Are the Different Types of Stocks?

By | Growing Wealth, invest, Investing | Comments Off on What Are the Different Types of Stocks?

There are numerous types of stocks, categorized by company characteristics, size, region, sector, and more. Equipped with an understanding of different stock types, an investor can start building a diversified portfolio. Though all stocks can experience volatility and potentially lose value, holding a mix of different types of shares can mitigate the risk of being too heavily invested in any one category.

Key Points

•   Stocks represent ownership in publicly traded companies and have the potential to generate returns, such as through capital appreciation or dividend payments, or result in losses.

•   Different stock categories include value stocks, growth stocks, common stock, preferred stocks, and various classifications based on market capitalization and sector.

•   Stocks can be classified by market capitalization into categories, such as micro-cap, small-cap, mid-cap, large-cap, and mega-cap.

•   Various stock sectors exist, including industrials, materials, consumer discretionary, health care, and financials, allowing for diversified portfolio creation.

•   Investors can also consider international stocks, including those from developed regions like EAFE or emerging markets, to further diversify their portfolios.

An Overview Of Stocks

A stock represents a percentage of ownership in a publicly traded company. So essentially, investors can own small pieces or “shares” of companies.

Generating returns via the stock market can usually happen in one of two ways. First, the value of the stock can increase over time, something known as capital appreciation. The second is through dividend payments, where companies make cash payouts periodically to all owners of that company’s stock. Some people make investments based on a company’s ability to pay consistent dividends, or “income.” Utility and telephone companies often fit into this bucket.

When you own a stock, you hold equity (or ownership) in that company. That’s why stocks are sometimes referred to as equities. Each individual share represents an equal proportion of ownership. Owners of stocks are often referred to as stockholders or shareholders.

💡 Quick Tip: Are self-directed brokerage accounts cost efficient? They can be, because they offer the convenience of being able to buy stocks online without using a traditional full-service broker (and the typical broker fees).

Categories of Stocks

There are several ways that different stocks are categorized, which is important to know if you’re brushing up on the stock market basics. Stocks are also sometimes classified by styles of investing. These categories often have to do with how that company makes money and how the stock is valued. You may often hear this associated when discussing value vs. growth stocks.

Value Stocks

Value stocks are stocks that are considered to be trading below their actual worth, and are a key component in value investing. Investors hope that by buying companies that are priced below their “true” value, they can profit as the gap narrows over time.

Growth Stocks

Growth stocks are companies that are growing at a fast pace or those that are expected to continue growing at a faster rate than other stocks or competitors. Investors can encounter higher valuations in growth investing.

Common Stock

Common stock represents shares of ownership in a corporation. When an investor receives common shares, they are typically also granted voting rights to the company and can participate in shareholder voting processes — usually one vote for each share. For investors, it can be helpful to understand the differences between common versus preferred stock.

Preferred Stocks

Preferred stocks make regular dividend payments, but holders of preferred shares often have zero or limited voting rights. If a company becomes financially insolvent however, preferred stockholders have a claim on assets before common shareholders do.

Exchange-traded Funds (ETFs)

Exchange-traded funds, or ETFs, group multiple securities into a single share. For instance, a stock ETF will hold numerous companies, while a bond ETF can hold many individual bonds, whether it’s a collection of Treasurys or high-yield debt. ETFs are popular because of the cheap, instant diversification they offer.

There are many types of ETFs, too, including low-cost ETFs, and ETFs with their holdings concentrated in certain sectors.

Initial Public Offerings (IPOs)

An initial public offering (IPO) is the process of a private company listing and debuting on a public stock exchange. Investors can buy IPO shares on their first day of trading.

Special Purpose Acquisition Companies (SPACs)

SPACs are shell companies that go public on the stock exchange, and then try to find a private operating business to purchase.

Real Estate Investment Trusts (REITs)

REITs are companies that own and operate real estate, usually focusing on one type of property, such as warehouses, hotels or office buildings. There are pros & cons to investing in REITs. For example, one pro is that they tend to pay consistent dividends. Cons include sensitivity to interest rates, and taxed dividends.

Blue Chip Stocks

Blue chip stocks are stocks that large, well-established companies issue and usually have a long-standing history of growth. They’re generally considered to be financially sound, and may be considered lower-risk than other stocks.

Cyclical and Noncyclical Stocks

Cyclical investing concerns making stock selections surrounding economic changes, and cyclical stocks are those that may see their performance closely align with larger economic shifts. Noncyclical stocks, on the other hand, do not see their performance tied to larger economic changes.

Defensive Stocks

Defensive stocks may be used as a part of a defensive investing strategy, and usually involves investing in stocks that may be seen as lower-risk. This can include blue-chip stocks, or stocks from sectors like utilities and consumer staples.

Penny Stocks

Penny stocks are low-priced stocks that generally trade for less than $5 per share, and many trade for less than $1. They’re usually risky, and highly-speculative stocks.

Income Stocks

Income stocks are a category of stocks that tend to offer regular, steady income to investors. That income generally comes in the form of dividends.

Environmental, Social, and Corporate Governance (ESG)

ESG stocks are those that may have certain non-financial criteria that appeal to certain investors. ESG stocks are shares of companies that are socially and environmentally responsible, though there is no universally-shared or accepted set of ESG criteria.

Different Market Caps

The sizes of stocks are classified by the market capitalization of the company’s publicly traded stock. Market cap is calculated by multiplying the stock price by the total number of outstanding shares.

Generally speaking, larger companies tend to be older, more established, and have greater international exposure, so a higher percentage of a large-cap company’s revenue comes from overseas. Meanwhile, smaller-cap stocks tend to be newer, less established and more domestically oriented. Smaller-cap companies can be riskier but also offer more growth potential.

Similarly, if you’re interested in buying mid-cap stocks, that generally means you’re investing in mid-sized companies.

stock market caps

While the market-caps that determine which companies are small or large can shift, here’s a breakdown that gives some rough parameters.

Micro-Cap: $50 million to $300 million

Small-Cap: $300 million to $2 billion

Mid-Cap: $2 billion to $10 billion

Large-Cap: $10 billion or higher

Mega-Cap: $200 billion or higher

Types of Stock Classes

There are also stock classes that investors should be aware of, and those generally involve Class A, Class B, and Class C shares, which all may be issued by the same company. The specifics of each category will vary from company to company, too.

For some rough guidelines, though, Class A shares tend to have more voting power and higher priority for dividends. Class B shares may have lesser voting power than Class A shares, but no preferential treatment for dividends. Class C shares are often given to employees as a part of a compensation package, and may have associated trading restrictions.

💡 Quick Tip: What makes a robo advisor effective? Typically these automated investing services offer automatic deposits, a diversified portfolio of low-cost ETFs, and automatic rebalancing — all of which are designed to help you reach a specific goal. They can be less flexible and cost more than some other options, however.

Stocks By Sector

stock sectors

Additionally, stocks are often grouped by the industry that that company works within. According to the Global Industry Classification Standard (GICS), there are 11 recognized sectors, with numerous industries within those sectors. They include (but are not limited to):

Energy: Energy equipment and services, oil, gas, and consumable fuels. If you want to invest in energy stocks, this is the category to look at.

Materials: Chemicals, construction materials, containers and packaging, metals and mining

Industrials: Aerospace and defense, building products, machinery, construction and engineering, electrical equipment, industrial conglomerates

Consumer Discretionary: Automobiles, automobile components, household durables, leisure products

Consumer Staples: Food products, beverage, tobacco, household products

Health Care: Health care equipment and services, pharmaceuticals, biotechnology, life sciences

Financials: Banks, insurance, consumer finance, capital markets, financial services

Information Technology: IT services, software, communications equipment

Communication Services: Diversified telecommunication services, media, entertainment

Utilities: Electric utilities, gas utilities, water utilities, independent power and renewable electricity producers

Real Estate: Real estate management and development, various REITs (retail, residential, office, etc.)

Again, these categories can be helpful to investors looking to diversify their portfolios. If you want to add some real estate stocks, or even invest in tech stocks, sector investing may be something to research further.

Note, too, that there may be other categories or sectors of stocks not listed above, such as retail stocks.

Stocks by Country

Different overseas stocks can be classified by the country or region in which they’re headquartered, even if the company’s operations are global. Individuals looking to invest in international stocks have found that they can do so easily with ETFs, which hold numerous foreign companies within a single share.

Regions that are commonly used in the world of stock investing are:

EAFE is an acronym which stands for Europe, Australasia, and the Far East. Investors may see this used when making investment choices, as the MSCI EAFE is a common index used for international stock funds. These countries are all “developed” nations, which means they have established financial markets, stable political climates, and mature economies.

Emerging-market stocks, which stocks with companies based out of countries whose economies are described as developing. Brazil, Russia, Mexico, China, and India are just a few emerging markets. Emerging markets may be riskier to invest in but may pose an opportunity for high rates of growth.

The Takeaway

There are numerous types of stocks on the market, and it can be important for investors to understand the differences between them. The stock market can be volatile and prone to dramatic declines, but in order to shield themselves from the risks, investors often create diversified portfolios by stocking their holdings through various different stock types.

Diversification is easier to do if an investor understands the different types of stocks that exist in the U.S. equity market. From mega-cap stocks to ETFs to emerging-market companies, there are a myriad of investing opportunities in the equity market.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest®. You can trade stocks, ETFs, or options through self-directed investing with SoFi Securities, or simply automate your investments with a robo advisor from SoFi Wealth. You'll gain access to alternative investments and upcoming IPOs, and can plan for retirement with a tax-advantaged IRA. With SoFi, you can manage all your investments, all in one place.


Take a step toward reaching your financial goals with SoFi Invest.

FAQ

What are the benefits of investing in different types of stocks?

Investing in different types of stocks can be beneficial to investors as it can diversify their portfolio, which may help reduce investing risk as the market fluctuates.

What is the riskiest type of stock?

Penny stocks are likely the riskiest type of stock, as they are shares of companies that are new, unproven, and highly volatile. While there’s a big potential upside to investing in penny stocks, the risks are significant.

What stocks are best for beginners?

While it’ll depend on the individual investor, beginner investors may want to look at investing in blue chip stocks, ETFs, or other stocks that have either built-in diversification, or a long track record of viability, which can be a sign of lower associated risks.

What are the risks and opportunities of investing in emerging markets?

Emerging markets can be volatile or unstable, and there may be political, monetary, and economic risks that investors are unaware of in those markets.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by emailing customer service at [email protected]. Please read the prospectus carefully prior to investing.

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.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation Procedures.

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.

SOIN-Q425-036

Read more
Dec
17
2025
A male medical student wearing scrubs, with a stethoscope around his neck, working on a tablet and sitting in front of a laptop.

Making Sense of the Rising Cost of Medical School

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

The cost of medical school is rising at an alarming rate. According to the Education Data Initiative (EDI), the cost of attending medical school rises by more than $1,500 each year.

Thirty-five years ago, medical students graduated with an average of $32,000 in student loan debt. Now, the average medical school debt for graduates is $216,659 according to EDI, with 70% of students graduating with debt.

The rising cost of medical school, plus the daunting number of years of education and training, is making some prospective medical students ask: Is an M.D. really worth it?

To gain a better understanding of how much medical school actually costs, we’ll take a look at the costs of an M.D., and some ways young doctors can get out of medical school debt faster after graduation.

Key Points

•   High demand, limited spots, increased educational expenses, and reduced state funding for public colleges are some of the factors driving the rising cost of medical school.

•   The average debt for medical school graduates is $216,659, with 70% of students incurring debt.

•   Income-driven repayment plans, making extra payments, and student loan refinancing are options to manage medical school debt.

•   Making payments during residency may help shorten the debt repayment timeline.

•   Despite high costs and debt, a career in medicine can be financially and personally rewarding, which may help justify the investment for some students.

How Much Does Medical School Cost?

The average medical school tuition varies depending on factors like whether the student is attending a public or private university.

The average total cost of in-state tuition for a student at a public university is $161,222. At a private school, the average total cost is $255,497.

But that’s only the cost of tuition, fees, and insurance — there’s also living costs to consider, which is why it’s useful to consider the entire cost of attendance (COA).

Each school publishes the estimated costs of attendance for their program, which typically not only include tuition and fees, but also costs like room and board, college textbooks and supplies, and travel.

Why Is Medical School More Expensive Than Ever?

The rising cost of medical school tuition is part of a larger trend. According to the College Board’s Trends in College Pricing 2025 report, the cost of college tuition and fees at private, nonprofit, four-year institutions in America is 4% higher for the 2025-2026 school year than for the 2024-2025 academic year.

In general, college tuition has increased dramatically in the past 30 years, while wages have grown at a much slower rate. So what’s behind the dramatic uptick in college prices?

One factor is the demand for a college education has dramatically risen over the last three decades. In addition, there is a high demand for getting into medical school and a limited number of spots available.

Another factor is the increasing expenses colleges pay for educating and housing students and for administration and maintenance, among other costs, according to research by the Lumina Foundation, a nonprofit that focuses on higher education.

And finally, there has been a decline in state funding for public colleges. According to a report by the National Education Association, 32 states spent less on public colleges and universities in 2020 than they did in 2008, which works out to an average of almost $1,500 less per student. That means students end up paying more for their education.

How Long Does Paying for Med School Take?

Many medical students apply for financial aid to cover their college price tag, which means they graduate with significant amounts of medical school debt.

How long it takes to pay back the debt depends on the student, the career path they take, and the medical loan repayments they make. However, the relatively low salaries young doctors earn during their residencies don’t typically allow for much opportunity to pay back loans until their first position after residency.

Let’s say, hypothetically, a borrower has federal Direct Loans and that they qualify for the Income-Based Repayment (IBR) plan, which is one of the income-driven repayment (IDR) plans.

In that situation, the monthly repayment would be capped at 10-15% of the borrower’s monthly discretionary income for a period of up to 25 years, after which time on the IBR plan, the remainder of their student loan debt is forgiven.

However, if after residency, the borrower in question gets a position with an income that’s too high to qualify for an IDR plan, they could currently switch to the 10-year Standard Repayment Plan for federal student loans and potentially pay off the loan more quickly.

It’s worth noting that student loan repayment plans will be changing in mid-2026 under President Trump’s big domestic policy bill that was signed into law. While the Standard Repayment Plan will continue to exist, there will be some changes to it. Starting on July 1, 2026, borrowers taking out new loans on this plan will have fixed payments over a term based on their loan amount. Borrowers with loans of less than $25,000 will have 10 years to repay what they owe, while those with loan amounts of $100,000 or more will have 25 years.

Also starting on July 1, 2026, there will only be one other repayment plan for borrowers to choose from: the Repayment Assistance Program (RAP), which is similar to an IDR plan. Payments on this plan may be 1% to 10% of a borrower’s discretionary income for a term of up to 30 years, after which time any remaining balance will be forgiven.

Is It Possible to Shorten the Medical Debt Payment Timeline?

Here are some tips for those medical school students and grads who are able to shorten their repayment timeline, which can lower the amount of student loan interest paid over the life of the loan and help them pay off their student loans faster.

Repaying Loans During Residency

It is possible to start paying down medical school debt in residency. While some students may be tempted to put their loans in student loan forbearance in their residency years, doing so can add quite a bit in accruing interest to the bill.

Instead, consider an income-driven repayment plan to start paying back federal loans with an affordable payment. Another option is to look into medical residency refinance options to compare which method is best for you. Keep in mind, though, that if you choose to refinance your federal student loans, you will no longer be eligible for federal benefits and protections, including income-driven repayment plans, deferment, and student loan forgiveness.

Making Extra Payments

Another tactic to help pay off student loans faster is by creating and sticking to a budget. After getting your first position post-residency, consider committing to living on a relatively tight budget for just a few more years. Putting as much salary toward extra student loan payments as possible could potentially help cut time — and interest payments — off the repayment timeline.

Speeding Up Med School Debt Repayment With Refinancing Student Loans

If you choose to refinance your medical student loans, it may be possible to secure a lower interest rate and/or a lower required monthly payment – depending on the terms you choose, your credit score, and other factors.

A lower interest rate through student loan refinancing could help reduce how much money is paid in interest over the life of the loan. Extending your loan term could mean a lower monthly payment – but keep in mind that you’ll most likely pay more in interest over the life of the loan.

While refinancing may help borrowers save money over the life of the loan, it does mean giving up the benefits that come with federal student loans, like income-driven repayment, deferment, and forbearance.

The Takeaway

The cost of medical school has risen in the past 30 years, and so has the amount of debt med students take on. But a career in medicine can be both lucrative and rewarding, making medical school worth the time, effort, and cost for many students.

Borrowers who are repaying student loans from medical school may consider strategies like income-driven repayment plans, making extra payments, or student loan refinancing to help them tackle their student loan debt.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Why has medical school gotten so expensive?

Medical school has gotten more expensive due to a number of factors, including an increased number of students applying to medical school and limited availability, which allows schools to charge more; the rising expenses colleges and universities pay for educating and housing students; and a decline in funding for state colleges.

What is the average cost of medical school today?

The average total cost of medical school today is $161,222 for an in-state student at a public university, and $255,497 for a student at a private college, according to the Education Data Initiative.

How do people afford medical school?

Many students afford medical school through a combination of sources, including financial aid, scholarships and grants, federal and/or private student loans, and financial help from parents. Some med school students also work part-time or use personal savings to help cover the cost.

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).

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.

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.

SOSLR-Q425-032

Read more
Dec
16
2025
A person looks at stock charts on their phone while working at a desk.

How to Analyze Stocks: 4 Ways

By | Growing Wealth, invest, Investing | Comments Off on How to Analyze Stocks: 4 Ways

There’s no single way to analyze stocks. But there are many methods that ordinary investors can use to find stocks that are trading at a discount to their underlying value.

The first step in how to analyze a stock before buying is reviewing financial statements. From there, investors can use various methods of analysis to assess investment opportunities and potentially identify worthwhile investments.

Key Points

•   There are four common methods of analyzing stocks: technical analysis, qualitative analysis, quantitative analysis, and fundamental analysis.

•   Technical analysis focuses on supply and demand patterns in stock charts to make investment decisions.

•   Qualitative analysis examines factors like a company’s leadership, product, and industry to evaluate investment opportunities.

•   Quantitative analysis uses data and numerical figures to predict price movements in stocks.

•   Fundamental analysis looks at a company’s financial health and value to determine if its stock is under or overvalued.

Why Analyzing Stocks Is Important

The process of stock analysis can reveal important information about a company and its history, allowing investors to make more informed decisions about buying or selling stocks. Analyzing stocks can help investors identify which investment opportunities they believe will deliver strong returns. Further, stock analysis can assist investors in spotting potentially bad investments.

Whether your strategy involves short vs. long term investing, or day trading, analyzing stocks is going to be important.

Understanding Financial Statements

The first step in understanding stock analysis is knowing the basics of business reporting. There are three main types of financial statements that an investor may want to look at when doing analysis:

•   Income statement: This statement shows a company’s profits, which are calculated by subtracting expenses from revenue.

•   Balance sheet: The balance sheet compares a company’s assets, liabilities, and stockholder equity.

•   Statement of cash flows: This statement outlines how a company is spending and earning its money.

In addition to these statements, a company’s earnings report
contains information that can be useful for doing qualitative analysis. The annual report includes the company’s plans for the future and stock value predictions.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.

*Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Probability of customer receiving $1,000 is 0.026%. See full terms and conditions.

4 Ways to Analyze a Stock

The next step in stock evaluation is deciding which type of analysis to do. Here’s a look at some of the different methods for how to analyze a stock.

1. Technical Analysis

Technical analysis is a method for analyzing stocks that looks directly at a stock’s supply and demand in order to make investing decisions. This form of analysis takes the stance that all information needed is present within stock charts and the analysis of history and trends.

Some key focal points of technical analysis are:

•   Stock prices move in trends.

•   History repeats itself.

•   Stock price history can be used to make price predictions.

•   Stock price contains all relevant information for making investing decisions.

•   Technical analysis does not consider intrinsic value.

Trend indicators are one of the most important parts of technical analysis. These indicators attempt to show traders whether a stock will go up or down in value. Uptrends mean higher highs and higher lowers, whereas downtrends mean lower lows and lower highs. Some common trend tools include linear regression, parabolic SAR, MACD, and moving averages.

Technical analysis also uses leading indicators and lagging indicators. Leading indicators signal before new trends occur, while lagging indicators signal after a trend has ended. These indicators look at information such as volume, price, price movement, open, and close.

There can be some pros and cons to using technical analysis, however, which can be important to consider when factoring in your risk tolerance.

Day traders tend to focus on technical analysis to try to capitalize on short-term price fluctuations. But because technical analysis generally focuses on short-term fluctuations in price, it’s not as often used for finding long-term investment opportunities.

Further, while technical analysis relies on objective and consistent data, it can produce false signals, particularly during trading conditions that aren’t ideal. This method of analysis also fails to take into consideration key fundamentals about individual shares or the stock market.

2. Qualitative Stock Analysis

When considering how to analyze a stock, it’s generally a good idea to look at whether the company behind the stock is really a good business. Qualitative analysis looks into factors like a company’s leadership team, product, and the overall industry it’s a part of.

A few key qualitative metrics include:

•   Competitive advantage: Does the company have a unique edge that will help it be successful in the long term? If a company has patents, a unique manufacturing method, or broad distribution, these can be positive competitive advantages.

•   Business model: Analyzing a business model includes looking at products, services, brand identity, and customers to get a sense of what the company is offering.

•   Strong leadership: Even a great idea and product can fail with poor management. Looking into the credentials of the CEO and top executives of a company can help in evaluating whether it’s a good investment.

•   Industry trends: If an industry is struggling, or looks like it may in the future, an investor may decide not to invest in companies in that industry. On the other hand, new and growing industries may be better investments. This is not always the case, as there are strong companies in weak industries, and vice versa.

3. Quantitative Analysis

Similar to technical analysis, quantitative analysis looks at data and numbers in an attempt to predict future price movements. Specifically, quantitative analysis evaluates data, such as a company’s revenues, price-to-earnings ratio, and earnings-per-share ratio, and uses statistical modeling and mathematical techniques to predict a stock’s value.

The upside is that this financial data is publicly available, and it creates an objective, consistent starting point. It can help with identifying patterns, and it can be useful in assessing risk. However, it requires sifting through a lot of data. Further, there’s no certainty when it comes to patterns, which can change.

4. Fundamental Analysis

Fundamental analysis looks at a company from a basic financial standpoint. This gives investors a sense of the company’s financial health and whether its stock may be under- or overvalued. Fundamental analysis takes the stance that a company’s stock price doesn’t necessarily equate to its value.

There are a number of key tools for fundamental analysis that investors might want to familiarize themselves with and use to get a fuller picture of a stock.

Earnings Per Share (EPS)

One of the main goals for many investors is to buy into profitable companies. Earnings per share, or EPS, tells investors how much profit a company earns per each share of stock, and how much investors are benefiting from those earnings. Companies report EPS quarterly, and the figure is calculated by dividing a company’s net income, minus dividend payouts, by the number of outstanding shares.

Understanding earnings per share can give investors guidance on a stock’s potential movement. On a basic level, a high EPS is a good sign, but it’s especially important that a company shows a high or growing EPS over time. The reason for this is that a company might have a temporarily high EPS if they cut some expenses or sell off assets, but that wouldn’t be a good indicator of the actual profitability of their business.

Likewise, a negative EPS over time is an indicator that an investor may not want to buy a stock.

Revenue

While EPS relates directly to a company’s stock, revenue can show investors how well a company is doing outside the markets. Positive and increasing revenues are an indicator that a company is growing and expanding.

Some large companies, especially tech companies, have increasing revenues over time with a negative EPS because they continue to feed profits back into the growing business. These companies can see significant stock value increases despite their lack of profit.

One can also look at revenue growth, which tracks changes in revenue over time.

Price-to-earnings (P/E) Ratio

One of the most common methods of analyzing stocks is to look at the P/E ratio, which compares a company’s current stock price to its earnings per share. P/E is found by dividing the price of one share of a stock by its EPS. Generally, a lower P/E ratio is a good sign.

Using this ratio is a good way to compare different stocks. One can also compare an individual company’s P/E ratio with an index like the S&P 500 Index to get a sense of how the company is doing relative to the overall market.

The downside of P/E is that it doesn’t include growth.

Price-Earnings-Growth (PEG) Ratio

Since P/E doesn’t include growth, the PEG ratio is another popular tool for analyzing stocks and evaluating stock performance. To look at EPS and revenue together, investors can use the price-earnings-growth ratio, or PEG.

PEG is calculated by dividing a stock’s P/E by its projected 12-month forward revenue growth rate. In general, a PEG lower than 1 is a good sign, and a PEG higher than 2 indicates that a stock may be overpriced.

PEG can also be used to make predictions about the future. By looking at PEG for different time periods in the past, investors can make a more informed guess about what the stock may do next.

Price-to-Sales Ratio (P/S)

The P/S ratio compares a company’s stock price to its revenues. It’s found by dividing stock price by revenues. This can be useful when comparing competitors — if the P/S is low, it might be more advantageous to buy.

Debt-Equity Ratio

Although profits and revenue are important to look at, so is a company’s debt and its ability to pay it back. If a company goes into more and more debt in order to continue growing, and they’re unable to pay it back, it’s not a good sign.

Debt-equity ratio is found by dividing a company’s total liabilities (debt) by its shareholder equity. In general, a debt-equity ratio under 0.1 is a good sign, while a debt-equity ratio higher than 0.5 can be a red flag for the future.

Debt-to-EBITDA

Similar to debt-to-equity, debt-to-EBITDA measures the ability a company has to pay off its debts. EBITDA stands for earnings before interest, tax, depreciation, and amortization.

A high debt-to-EBITDA ratio indicates that a company has a high amount of debt that it may not be able to pay off.

Dividend Yield

While a stock’s price can vary significantly from day to day, dividend payments are a way that investors can earn a consistent amount of money each quarter or year. Not every company pays out dividends, but large, established companies sometimes pay out some of their earnings to shareholders rather than reinvesting the money into their business.

Dividend yield is calculated by dividing a company’s annual dividend payment by its share price.

One thing to note is that dividends are not guaranteed — companies can change their dividend amounts at any time. So if a company has a particularly high dividend yield, it may not stay that way.

Price-to-Book Ratio (P/B)

Price-to-book ratio, or P/B, compares a company’s stock market value to its book value. This is a useful tool for finding companies that are currently undervalued, meaning those that have a significant amount of growth but still relatively low stock prices.

P/B ratio is found by dividing the market price of a stock by the company’s book value of equity. The book value of equity is found by subtracting the company’s total liabilities from its assets.

Company Reports and Projections

When companies release quarterly and annual earnings reports, many of them include projections for upcoming revenue and EPS. These reports are a useful tool for investors to get a sense of a stock’s future. They can also affect stock price as other shareholders and investors will react to the news in the report.

Professional Analysis

Wall Street analysts regularly release reports about the overall stock market as well as individual companies and stocks. These reports include information such as 12-month targets, stock ratings, company comparisons, and financial projections. By reading multiple reports, investors may start to see common trends.

While analysts aren’t always correct and can’t predict global events that affect the markets, these reports can be a useful tool for investors. They can keep them up-to-date on any key happenings that may be on the horizon for particular companies. The information in the reports also can result in stock prices going up or down, since investors will react to the predictions.

Quantitative vs Qualitative Analysis

Here’s a quick rundown looking at the key differences between quantitative and qualitative analysis. Again, this can be important when weighing your risk tolerance as an investor.

Quantitative vs. Qualitative Analysis
Quantitative Analysis

 Qualitative Analysis
Looks at data and numerical figures to predict price movements Looks at business factors such as leadership, product, and industry
May require sifting through a lot of data, and may be difficult for some investors Metrics include business models, competitive advantage, and industry trends
Concerned more with the “quantity” and hard data a business produces Concerned more with the “quality” of a business

Pros and Cons of Doing Your Own Stock Analysis

If you feel like you can do a little stock analysis on your own, there are some pros and cons to it.

Pros

Perhaps the most obvious pro to doing your own stock analysis is that you don’t need to pay someone else to do it, you can do it on your own schedule, and learn as you go. You can develop knowledge that’ll likely help you as you continue to invest in the future. There are also numerous tools out there that you can use to analyze stocks which may not have been around in years or decades past.

Cons

Stock analysis can be an involved process, which can require a lot of investment in and of itself – both monetarily (if you’re using paid tools) and in terms of time. Depending on how deep you want to go, too, it can be a complex process. You may get frustrated or burnt out, or even make a mistake that leads to a bad investment decision.

Test your understanding of what you just read.

The Takeaway

There are a number of ways to analyze stocks, including technical, fundamental, quantitative, and qualitative analysis. The more an investor gets comfortable with terms like P/E ratio and earnings reports, the more informed they can be before making any decisions. Stock analysis is an involved process, however, and may be above the typical investors’ head and ability.

It is important to do your research and homework in relation to your investments, however. If you feel like you could use some guidance or a helping hand, speaking with a financial professional is never really a bad idea.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.


Opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.¹

FAQ

What is the best way to analyze a stock?

There’s no “best” way to analyze stocks. The right option for an investor will depend on their personal preferences and investing objectives. And remember, there’s no need to just use one method to analyze a stock — often, analysts will combine different methods of analysis to generate a more robust stock analysis.

What are key indicators to look for when analyzing a stock?

There are a ton of potential indicators that investors can look at, but some broad indicators that investors can start with include stock price history, moving averages, a company’s competitive advantages, business models, and industry trends.

What is an example of stock analysis?

A very, very basic example of stock analysis would include looking at a stock’s share price, comparing it to its historical averages and moving averages, overall market conditions, and looking at the company’s financial statements to try and gauge where it might move next.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

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.


¹Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.

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.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

SOIN-Q425-070

Read more
Dec
14
2025
Is Getting an MBA Worth It_780x440: Getting an MBA won’t be right for everyone, but it could be one way to advance your career.

Is Getting an MBA Worth It?

By | Debt Payoff, Student Loans, student_loan | Comments Off on Is Getting an MBA Worth It?

The question of whether it’s worthwhile to obtain a Master’s in Business Administration (MBA) — an advanced and versatile degree that can help people ascend into management analysis and/or strategy roles — is a highly personal one without a real single objective answer. As usual with financial and personal decisions, the answer tends to be “it depends.”

Keep reading for some things to consider when deciding to pursue an MBA, pros and cons of getting an MBA, how much an MBA costs, and more.

Key Points

•   An MBA can significantly boost your salary, especially if you attend a highly ranked program.

•   Business school offers valuable opportunities to build connections with peers, faculty, and alumni.

•   With an MBA, you may accelerate your career or pivot into new fields, as the degree builds management and leadership skills.

•   MBA programs can be very expensive — tuition for top schools can exceed $150,000 — and many students graduate with significant debt.

•   Students can consider refinancing their student loans to possibly qualify for a lower rate or lower monthly payment.

The Pros and Cons of Getting an MBA

Getting an MBA won’t be right for everyone, but it could be one way to advance your career. Here are some things to consider as you weigh the pros and cons of getting an MBA.

Pros to Consider

Earning an MBA can open the door to greater professional opportunities, financial growth, and long-term career flexibility. Here are the advantages of receiving an MBA:

Improved earning potential. An MBA degree may increase your salary. The average anticipated salary for MBA graduates entering the workforce is $85,842, according to the National Association of Colleges and Employers. A recent grad’s expected salary may be even higher depending on where a student gets their MBA.

But if you’re wondering if it’s worth getting an MBA from a lower tier school, consider that the average MBA salary for graduates with a degree from the 10 schools where compensation was lowest was just $60,576.

Keep in mind, though, that the top 10% of MBA grads earn more than $200,000 per year.

Expanded network. Business school can be a great opportunity to make friends and network with like-minded individuals. In addition to your peers in the program, you’ll engage with faculty and be introduced to a (hopefully robust) alumni network.

Career acceleration or transition. Successful completion of an MBA program can improve an individual’s career mobility. Coursework is often designed to encourage management skills, critical thinking, and other specialized skills, which can help prepare people for the workforce.

Recommended: Best Jobs for MBA Graduates

Cons to Consider

While an MBA can offer meaningful benefits, it also comes with drawbacks that prospective students should carefully weigh. Here are some things to consider:

The cost. The average cost of an MBA program is $63,000 (total for two years), but top-tier universities may run up to $125,000 per year. With anticipated starting salaries sitting at $85,000 on average, prospective students need to weigh the expense of the MBA against their earning potential.

However, there are ways to mitigate the cost. You can pursue part-time programs or stagger your course load over a longer period of time so you can still be drawing a salary to offset the costs while you’re studying.

Time commitment. Getting an MBA in a full-time program can take two years. There are some accelerated programs that may allow students to complete their coursework in 12 to 16 months, though. Beyond the length of the program, MBA classes are no joke. The coursework requires commitment and diligence, so be sure you have the time to dedicate to classes.

Consider factoring in the application process when evaluating both time and cost. To apply for graduate school, schools may require GMAT™ scores, letters of recommendation, and more. Meeting the application requirements may take both time and money if you still need to take the required standardized tests.

How to Decide If an MBA Is Worth It for You

While an MBA can offer great potential for career growth, it’s definitely not the right choice for everyone. Be honest with yourself about why you want to pursue an MBA. Below are some considerations when it comes to deciding whether or not an MBA is for you.

Career Goals and Industry Expectations

Your long-term career goals and the expectations of your target industry should heavily influence your decision to pursue an MBA. In consulting, finance, or corporate leadership, for example, an MBA is often considered a valuable credential that can accelerate advancement or even serve as an entry requirement.

In other industries, real-world experience or specialized training may be more beneficial than another degree.

Opportunity Cost of Leaving the Workforce

When considering an MBA, it’s important to factor in the opportunity cost of stepping away from full-time work. Taking one or two years off means forfeiting income, delaying promotions, and potentially losing momentum in your career.

Beyond financial impact, time away from your role may also require an adjustment period when returning to the workforce.

Part-Time vs Full-Time MBA Considerations

Choosing between a part-time and full-time MBA program depends on your career stage, financial circumstances, and lifestyle. A full-time MBA offers an immersive experience, faster completion, and more networking opportunities, but requires pausing your career.

A part-time MBA allows you to continue working, easing financial strain and enabling you to apply new skills immediately — though it may take longer to complete and offer a less intensive campus environment.

Recommended: Average Salary by State

How to Pay for an MBA

Paying for grad school can feel overwhelming, but understanding your financing options can make the process far more manageable. From loans to scholarships to school-funded opportunities, there are several ways to reduce the cost of earning your degree.

Student Loans for Graduate School

Graduate student loans are one of the most common ways to finance an MBA, allowing you to borrow federal or private funds to cover tuition, living expenses, and fees.

Federal loans — such as Direct Unsubsidized Loans and Grad PLUS Loans — often offer flexible repayment options and protections like income-driven repayment or deferment. Grad Plus Loans, though, will no longer be available as of July 1, 2026, and students will need to rely on Direct Unsubsidized Loans and private loans.

Private lenders may offer competitive interest rates, especially for borrowers with strong credit, but typically come with fewer repayment safeguards. Exploring both types of loans and comparing interest rates, terms, and borrower benefits can help you choose the best option for your financial situation.

Fellowships and Assistantships for MBA Programs

Many MBA programs offer fellowships and assistantships that can significantly reduce the cost of attendance. Fellowships often provide partial or full tuition support based on academic merit, leadership potential, or professional achievement.

Assistantships may require students to assist with research, teaching, or administrative work in exchange for tuition reductions or stipends. These opportunities are competitive, but they can dramatically lessen your financial burden while providing valuable academic or professional experience.

Scholarships from Business Schools and Private Organizations

Scholarships are another key funding source for MBA students, and they can come directly from business schools or from outside organizations. Many institutions award scholarships based on merit, diversity, leadership, or industry interests, while private groups may offer aid tailored to specific demographics or career goals.

Some scholarships cover a portion of tuition, while others offer full-ride support, making them among the most desirable forms of funding. Dedicating time to research, apply early, and tailor your applications can increase your chances of securing scholarship assistance.

Employer Tuition Reimbursement Programs

Employer tuition reimbursement programs can be one of the most cost-effective ways to pay for an MBA, especially if you’re already working full-time. Many companies offer financial support to help employees advance their education, whether through partial reimbursement, full tuition coverage, or annual education stipends.

However, tuition reimbursement programs typically come with certain requirements and restrictions. Some employers only cover degrees that directly relate to your current role or the company’s long-term needs, and many require you to maintain a minimum GPA to stay eligible. It’s also common for companies to require a commitment to remain with the organization for a set period after completing your degree — otherwise, you may need to repay some or all of the funds.

It’s a good idea to ask your current employer if this is a benefit they offer, and then weigh the pros and cons as to whether this is a perk you want to take advantage of.

Recommended: 13 Companies That Help Employees Pay for College

Comparing MBA Program Types (Online, Executive, In-Person)

Understanding the different types of MBA programs can help you choose an option that fits both your career goals and your budget. Each format comes with its own cost structure, time commitment, and level of flexibility.

•   Online MBA: Offers remote learning with lower overall costs, flexible scheduling, and the ability to continue working full-time.

•   Executive MBA (EMBA): Designed for experienced professionals, often more expensive but structured for minimal career disruption with weekend or modular classes.

•   In-Person MBA: Provides the most immersive campus experience, stronger networking opportunities, and access to on-campus resources, but typically comes with higher tuition and living expenses.

Program Cost Differences

The cost of an MBA can vary significantly depending on the program type. Online MBAs are generally the most affordable, with lower tuition and fewer additional expenses like housing and commuting. Executive MBAs, while more expensive, often come with employer sponsorship, which can offset the higher tuition. In-person programs tend to be the most costly due to comprehensive resources and a full campus experience, but they may also offer more financial aid options and scholarships.

•   Online MBA average cost: $40,000

•   Executive MBA average cost: $55,000

•   In-person MBA average cost: $63,000

Flexibility and Work-Life Balance

Flexibility is a major factor when considering how to finance and complete an MBA program. Online MBAs generally offer the greatest adaptability, allowing students to watch lectures on their own schedules and balance coursework with full-time work or family responsibilities. Executive MBA programs provide structured flexibility, with classes concentrated on evenings or weekends to minimize disruption to professional life. In-person programs offer the least flexibility but provide the most immersive learning environment, which can be valuable for networking and hands-on experiences.

Evaluating your work commitments, lifestyle, and time constraints can help you choose the format that best supports both your education and personal well-being.

Recommended: MBA Refinancing

The Takeaway

Deciding whether an MBA is worth it ultimately comes down to your goals, finances, and the career path you hope to pursue. For some, the degree offers a valuable boost in earning potential, professional credibility, and long-term opportunities. For others, the cost, time commitment, and uncertain return may outweigh the benefits.

If you decide that earning an MBA makes sense for you, there are ways to help cover the costs and develop a solid budget. You can explore all options, including scholarships, grants, and federal and private student loans, as well as refinancing your existing loans.

FAQ

What is the average cost of an MBA program?

The average cost of an MBA program in the U.S. ranges from $60,000 to $120,000, depending on the school and program format. Top-tier programs can exceed $150,000, while online and part-time options may be less expensive. Financial aid and scholarships can help offset these costs.

How much can you earn with an MBA?

Earning potential with an MBA varies widely, but graduates often see a starting salary between $85,000 and $125,000. On average, MBA holders can earn between $120,000 and $225,000 annually, depending on their industry and role.

Are there affordable or online MBA programs worth considering?

Yes, there are affordable and online MBA programs worth considering. Many reputable universities offer online options with lower tuition, flexible schedules, and quality education.

Can I work full-time while pursuing an MBA?

Yes, many MBA programs are designed for working professionals. Part-time, online, and executive MBA formats allow you to balance work and studies. These programs often offer flexible scheduling, evening classes, and accelerated options to fit your needs.

What types of financial aid are available for MBA students?

MBA students can access various financial aid options, including scholarships, grants, loans, and assistantships. Many business schools offer merit-based scholarships, and federal or private loans are available. Additionally, some companies provide tuition reimbursement for employees pursuing an MBA.


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).

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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.

SOSLR-Q425-054

Read more
Dec
14
2025
A Guide to Nursing Student Loans

Guide to Nursing Student Loans: What You Should Know

By | Going to College, Student Loans, student_loan | Comments Off on Guide to Nursing Student Loans: What You Should Know

Pursuing a nursing program can lead to a rewarding career, but as the cost of higher education grows, paying for nursing school might just cause your blood pressure to rise.

Financial aid, including nursing student loans, can help fill the gap between money on hand and education costs, but it’s good to think about your future pay compared with the debt you’re willing to take on.

Keep reading to learn more on nursing school loans, the different types of student loans available, and alternative ways to pay for nursing school.

Key Points

•   Nursing students can borrow using federal student loans (Direct Subsidized, Unsubsidized, and PLUS) or private loans, depending on their needs and eligibility.

•   Subsidized loans offer interest benefits: the government pays accrued interest while you’re in school, during the grace period, or during certain deferments.

•   Unsubsidized and PLUS loans accrue interest from disbursement, and PLUS loans require a credit check.

•   There are loan forgiveness options for nurses, such as the Nurse Corps Loan Repayment Program and other federal forgiveness programs.

•   Alternative ways to pay for nursing school include grants, personal loans, and employer tuition reimbursement.

What Are Nursing School Loans?

Nursing school student loans are a type of financial aid available to eligible college students who are enrolled in a program for licensed practical or vocational nurses, registered nurses, nurse practitioners, or nurse anesthetists. They can cover the cost of nursing school tuition, books, and living expenses. Students can rely on both federal and private student loans.

Unlike grants and scholarships, nursing school loans must be repaid, though there may be forgiveness programs and repayment assistance programs available.

Most loan programs, federal and private, have a grace period during school and after graduation before repayment must begin.

How Nursing School Costs Differ from Other Programs

Nursing school often costs more than many other undergraduate programs because of its intensive, hands-on training requirements. Students typically pay additional fees for clinical lab courses, simulation training, medical equipment, uniforms, and licensing exam preparation. Programs also require smaller instructor-to-student ratios in clinical settings, which increases operational costs and is often reflected in higher tuition.

The average cost of nursing school varies heavily depending on the type of program being pursued. Associate degree programs in nursing tend to cost the least and can be completed at a community college. Bachelor of Science in Nursing programs can cost between $40,000 and $80,000, and grad school programs can cost $50,000 to more than $100,000.

Types of Loans Available for Nursing School Students

The Education Department provides options for federal nursing student loans under the William D. Ford Federal Direct Loan Program. Eligible borrowers can also explore private student loans for additional funding, if needed. Here are the types of student loans available for nursing students.

Direct Subsidized Loans

Federal Direct Subsidized Loans are available to undergraduate students who are enrolled at least half-time at a participating school. Students are required to demonstrate financial need to qualify.

If a nursing student qualifies for a Direct Subsidized Loan, the school determines how much they can receive for that academic year (up to a maximum amount). The government pays the interest that accrues on the loan while the student is enrolled at least half-time, during a six-month grace period after leaving school, and during any period of deferment.

In comparing subsidized vs. unsubsidized loans, the first type favors borrowers more, due to how accrued interest is paid.

Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are available to undergraduate and graduate students. These loans are not based on financial need, but schools (and government caps) still decide how much students can borrow toward an academic year.

The key difference with this nursing loan option is that students are responsible for interest charges as soon as the loan funds are disbursed.

Direct PLUS Loans

Another federal option for nursing student loans is the Direct PLUS Loan. Grad PLUS Loans are available to graduate students who are pursuing an advanced degree like a Master of Science in Nursing.

Parents of an undergraduate student can help fund their child’s education through a Parent PLUS Loan; undergrads don’t have direct access to this loan option.

Direct PLUS Loans are non-need based and require a credit check. Borrowers are responsible for all interest that accrues. They can receive up to the school’s cost of attendance minus any other financial aid received.

Starting on July 1, 2026, though, Direct Grad PLUS Loans will no longer be available. Students will instead rely on Direct Unsubsidized Loans, which will have new annual and lifetime borrowing caps. Parent PLUS Loans will still be an option, but new limits will apply starting on July 1, 2026.

Private Student Loans

Nursing students who need funding beyond federal student loans can consider private student loans. Private student loans are offered by private financial institutions like banks, credit unions, and online lenders.

Each lender has its own eligibility requirements, interest rates, and loan terms. If you’re eligible for a private student loan, your interest rate and loan details will depend on various factors, including your credit score. Most lenders welcome your bringing a solid cosigner aboard.

State-Based Loan Programs for Nursing Students

State-based loan programs offer low-interest loans, tuition assistance, or forgivable loan programs for students pursuing nursing degrees, especially those willing to work in underserved or high-need areas after graduation.

Eligibility requirements, award amounts, and commitments vary by state, so it’s important for nursing students to research local options early in their academic planning.

Pros and Cons of Loans for Nursing School

The average student loan debt among all health care professionals can be eye-opening, yet healers usually feel the need to heed the call, no matter the cost.

Nursing student loans can be a fast way to finance your college education. However, before jumping in, weigh the benefits of student loans against their disadvantages.

Pros Cons
Quick financing for college costs Will make years of payments after leaving school
Some student loans let you borrow up to the cost of attendance Can cause borrowers to postpone other life goals during repayment
Can make paying for higher education possible for those who are ineligible for other types of financial aid You may need a cosigner to qualify
Repaying student loans on time can help build your credit history Defaulting on student loans can harm your credit and result in additional financial hardship

Understanding Interest Accrual and Repayment Flexibility

It’s important to understand how interest accrual works when it comes to managing education debt. Federal loans begin accruing interest differently depending on whether they are subsidized or unsubsidized, and this interest can capitalize if left unpaid. With subsidized loans, you’re not responsible for the interest while in school and for six months after graduating. Unsubsidized loans begin accruing interest as soon as they’re disbursed.

Fortunately, federal repayment plans offer flexibility — such as income-driven repayment and extended plans — allowing nurses to align monthly payments with their income and career stage. Choosing the right repayment plan helps limit long-term costs and keeps loan payments manageable as you transition into the workforce.

Applying for Nursing Student Loans

The process to apply for nursing student loans depends on the loan option chosen.

Comparing Loans

If you’re thinking about taking out student loans, the first step is to fill out the Free Application for Federal Student Aid (FAFSA®). This application is used to determine aid including work-study, federal student loans, scholarships, and grants.

When it comes to loans, you might want to compare federal student loans that may be offered in your aid package, as well as private student loans.

Prioritizing federal student loans before private student loans can be a good idea, since federal loans offer advantages like income-driven repayment plans and Public Service Loan Forgiveness, which forgives any remaining federal student loan balance after certain borrowers make 120 qualifying payments.

If private nursing student loans are still needed to pay for college, check offers across multiple private lenders. Comparing a handful of private student loan offers can help you find competitive rates and terms.

Applying for Loans

Federal nursing student loans and private student loans have distinct application processes. As stated above, you must submit the FAFSA before the academic year to see if you’re eligible for federal aid.

Private student loans don’t require the FAFSA. Instead, private nursing student loan applications can be submitted online, in person, or by mail, depending on the lender. They require the would-be borrower, or a cosigner, to meet credit and income requirements.

After Applying

It’s a good idea to start the process early when seeking federal student loans for your nursing education. The time between submitting the FAFSA and disbursement of the loan funds to your school can be months.

The turnaround time after applying to receive private student loan funds can be notably shorter. Getting prequalified for a loan can take just minutes.

In general, if you’re approved for a private nursing student loan, you can expect to wait up to 10 weeks after your loan is approved to receive the funds.

Setting Up Repayment While in School

Setting up repayment while in school can help nursing students stay ahead of their loan obligations and reduce long-term costs.

One easy thing to do is prioritize small monthly payments toward unsubsidized loan interest. Doing this can prevent capitalization, keeping total debt lower after graduation.

Alternative Financing Options for Nursing Students

Securing nursing school student loans is only one of many ways to finance your higher education. Other options include personal loans, grants, employer sponsorship, and more.

Personal Loans

Personal loans are a general-purpose loan option that you may be able to use towards nursing school. Not all lenders allow personal loans to be used for education, though.

Repayment begins as soon as funds are disbursed. Check your rate and decide if a personal loan makes sense. One perk of personal loans is you could get funding within 24 hours of loan approval.

Grants

Grants are provided through the federal government, state, your school, nonprofit entities, and private organizations. Since grant funding doesn’t need to be paid back, this aid alternative lets nursing students leave school with less student debt.

Employer Sponsorship

If you plan on working while you’re enrolled in nursing school, you can ask if your company has a sponsorship program. Generally in this situation, your employer will send funds directly to your school.

Nursing School Loan Repayment Assistance Programs (LRAPs)

Nursing school Loan Repayment Assistance Programs (LRAPs) offer nurses financial relief by helping repay a portion of their student loan debt in exchange for service commitments. These programs are typically available at the federal, state, or employer level and often target nurses working in underserved or high-need areas. Options may include:

•  Nurse Corps Loan Repayment Program

•  National Health Service Corps Loan Repayment Program

•  NHSC Rural Community Loan Repayment Program

•  NHSC Students to Service Loan Repayment Program

Military Programs for Nursing Education Funding

Military programs for nursing education funding provide financial support for students pursuing nursing degrees in exchange for service commitments. Options like the Army Nurse Corps, Navy Nurse Candidate Program, and Air Force Health Professions Scholarship Program can cover tuition, fees, and living expenses. These programs offer both educational benefits and guaranteed career opportunities upon commissioning.

Private Student Loans

As mentioned above, private student loans for health professions can help bridge funding gaps when federal aid, scholarships, and grants aren’t enough to cover tuition and expenses. Issued by banks and private lenders, these loans often require a credit check and may offer variable or fixed interest rates. While they can provide quick access to funding, private loans typically lack the flexible repayment plans, subsidies, and forgiveness options available through federal student loans.

The Takeaway

Nursing students have a variety of student loan options to support their education, including subsidized and unsubsidized federal loans, PLUS loans, and private loans. Students can also rely on scholarships, grants, and employer sponsorships to help pay for nursing school. And finally, once graduated, there are financial relief programs available to help pay back student loans.

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

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

FAQ

How do nursing students get loans?

Nursing students can see if they’re eligible for federal student loans by submitting the FAFSA. Private nursing student loans are also available through various private lenders.

Can nursing school loans be forgiven?

Nursing professionals might be eligible for loan forgiveness through federal programs like Public Service Loan Forgiveness and the Nurse Corps Loan Repayment Program.

What is the average student loan amount for a nurse?

The median student loan debt among nurses ranges from $40,000 to $55,000, according to the most recent report by the American Association of Colleges of Nursing. Depending on the type of degree they have, though, loans can range from $23,000 to $185,000 or more.

Are there special programs for nurses working in underserved areas?

Yes, nurses working in underserved areas can qualify for programs like the Nurse Corps Loan Repayment Program, which covers up to 85% of nursing education debt, and the NHSC Loan Repayment Program, which supports nurses serving in Health Professional Shortage Areas. Many states also offer their own loan assistance programs for eligible nurses.

Can nurses qualify for Public Service Loan Forgiveness (PSLF)?

Yes, nurses can qualify for Public Service Loan Forgiveness (PSLF) if they work full-time for a qualifying nonprofit or government employer and make 120 qualifying payments under an income-driven repayment plan. Many hospital systems, public health departments, and nonprofit clinics meet the employment requirements for PSLF eligibility.

Photo credit: iStock/erdikocak

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.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOISL-Q425-044

Read more
Close modal

See what SoFi can do for you and your finances.

Select a product below and get your rate in just minutes.

Student Loan
Refinancing

Personal
Loans

Online
Investments

Other

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

✝ 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.

©2026 Social Finance, LLC All rights reserved.
TLS 1.2 Encrypted
Equal Housing Lender