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While the terms “computer science” and “computer engineering” are often used interchangeably, they are actually separate fields that focus on different aspects of computer technology. Simply put, computer science is the study of all aspects of computers with an emphasis on software systems, while computer engineering focuses more on designing and building hardware systems.

Whether you choose to major in computer science or computer engineering, some — but not all — of the coursework will be the same. However, the types of jobs you will be best-suited for will differ. Which path is best for you will depend on your skill set and career interests. Here’s what you need to know about computer science vs. computer engineering.

What Is Computer Science?

Those working in computer science focus mainly on computing theory, programming algorithms and models to develop software or computer systems that people utilize around the globe. A computer science program will typically cover topics like design and analysis of algorithms, data analysis, an introduction to operating systems, and different programming languages. Computer scientists generally focus on software and are typically the ones to create algorithms that make programs like artificial intelligence, machine learning, cloud computing, and even video games work.


💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

What Is Computer Engineering?

Computer engineers generally focus on creating, testing, and evaluating the technology for hardware and software interfaces. If you choose computer engineering as your major, the program will likely cover topics like computer architecture, computer networks, and physics. It is a computer engineer’s job to develop new processors, microchips, and other components that physically go into computers and smartphones to make them work each and every time someone clicks the “on” button. This field may often require a combination of electrical engineering skills and computer science knowledge.

Similarities and Differences Between Computer Science and Computer Engineering

While computer science and computer engineering are two distinct areas of study, there are similarities between the two. Both professions, for example, involve working with computers. Both also involve data and math and work to advance the field of computing. Because of these similarities, both areas of study could share prerequisites and coursework at your chosen college or university.

Computer Science vs Computer Engineering Job Outlook

Individuals with a computer science or computer engineering degree may be qualified for a variety of different types of tech positions in a wide range of industries. Here’s a closer look.

Computer Science Job Outlook

There’s some good news for those looking at becoming computer scientists in the near future. According to the most recent data from the U.S. Bureau of Labor Statistics (BLS) , the employment of computer and information research scientists is projected to grow 21% from 2021 to 2031, much faster than the average for all occupations.

What’s more, computer and information research scientists earned a median of $131,490 per year in 2021.

The types of jobs you may be able to get with a computer science degree include: software developer, database administrator, web developer, project manager, full-stack developer, engineering manager, user interface designer, information security analyst, information technology specialist, mobile application designer or developer, and more.

Computer Engineering Job Outlook

According to the BLS, the employment rate for computer hardware engineers is projected to grow much more slowly over the same timeframe. From 2021 to 2031, the job market for computer hardware engineers is expected to grow 5%, which is as fast as average as the average occupation.

The positive? The average salary for computer hardware engineers is still comparatively high, sitting at a comfortable $128,170 per year in 2021. And while many entry level jobs in computer science require a master’s degree, entry-level computer engineering positions generally only require a bachelor’s degree, which can save both time and money.

As computer scientists, those with a computer engineering degree could qualify for roles under a variety of job titles. These include: telecommunications engineer, computer architect, communication engineer, network systems engineer, systems architect, and simply, computer engineer.

Recommended: Return on Education for Bachelor’s Degrees

Computer Science vs Computer Engineering — Which One Is Better?

The question of “which is better, computer science or computer engineering?” really comes down to personal choice. To make this decision for yourself, it may be a good idea to consider what your dream computing job looks like.

Computer scientists can typically specialize in the following areas:

•   Artificial Intelligence

•   Human-Computer Interaction

•   Software Engineering

•   Mobile and Web Computing

•   Game Design

•   Computer Graphics

•   Data Science

•   Programming languages

Computer engineers can typically specialize in the following areas:

•   Hardware systems

•   Robotics and Cybernetics

•   Computer and Network Security

•   Distributed Computing

•   Embedded Systems

As you can see, both computer science and computer engineering are related. However, each comes with unique and exciting specialty areas. Which one is better will depend on your skills, interests, and goals.

The First Step to Becoming A Computer Scientist or Computer Engineer

While computer science is expected to experience more growth in the coming years than computer engineering, both fields can lead to a varied, lengthy, and well-paid career. Both also generally require at least a four-year college degree, which can be a significant financial investment. Once you pinpoint some schools and programs that interest you, you’ll likely need to figure out how you’ll manage the financial side of getting a computer science or computer engineering degree.

Fortunately, there are a number of ways to cover your college costs. A great place to start is by filling out the Free Application for Federal Student Aid (FAFSA). This form puts you in the running for grants, scholarships, work-study positions, and federal student loans.

If financial aid and savings aren’t enough to cover the full cost of attendance (COA) for college, you might next look into getting a private student loan. Unlike federal student loans, which are provided by the government, private student loans are available through banks, credit unions, and online lenders. Rates tend to be higher than federal student loans, but borrowing limits are typically higher. These loans are not need-based and generally require a credit check. Borrowers (or cosigners) with excellent credit tend to qualify for the lowest rates.

Keep in mind that private student loans may not offer the same borrower protections that federal student loans offer, such as Public Service Loan Forgiveness or income-driven repayment plans.


💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

The Takeaway

While there is some overlap between computer science and computer engineering, the terms refer to two different majors and tech specialties that lead to different types of jobs after you graduate. Computer science tends to focus on computer theory and software, whereas computer engineering is more focused on computer design and hardware.

A career in either field can be rewarding, both financially and intellectually, though job growth is expected to be higher in computer science than computer engineering over the next eight years.

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

Photo credit: iStock/SeventyFour

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.

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.

SOIS0823047

It’s no secret that college can be expensive. What’s not-so-widely known is that there are a number of states that offer eligible residents free tuition for both two- and four-year degree programs.

While many of these programs only cover tuition (not room and board and other expenses), they can be a huge help if you are looking for an affordable way to get a college degree. Read on to learn more about how free college programs work, where to find them, and how to fill in any remaining financing gaps.

What Are Free College Tuition Programs?

Free college tuition programs are typically state-sponsored programs that offer free tuition to eligible students. To qualify, you typically need to be a resident of the state and, in some cases, demonstrate financial need. Some states will also award free tuition to students that come from communities that are underrepresented in college attendance​ or who are first generation college students.

Often, tuition-free programs only cover the cost of tuition, which means you may still have other expenses to cover, including fees, supplies, and room and board. However, there are some free college tuition programs that will cover school fees or provide stipends for necessary expenses like textbooks.
​​

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

States With Free College Tuition

What follows is a roundup of states that offer free tuition to two-year, four-year, and/or certificate programs.

California Promise Program

The California College Promise Grant waives fees for nearly half of students in the California Community College system , while others only need to pay $46-per-unit fee. For example, if you’re a California resident enrolling in 12 units, you would pay $552 each semester. Students that live out of state pay more.

Indiana 21st Century Scholars Program

The 21st Century Scholars Program encourages Indiana students in the 7th and 8th grade to stay in school and keep up their grades by promising them money for college if they meet program requirements.

Oklahoma’s Promise

To qualify for the Oklahoma’s Promise scholarship program, Oklahoma students must be enrolled in the 8th, 9th, or 10th grade and their parents’ federal adjusted gross income can’t exceed $60,000 (with one or two dependent children) or $70,000 (with three or four dependent children).

New York Excelsior Scholarship

Through the Excelsior Scholarship , New York families and individuals that make up to $125,000 a year will qualify to attend college tuition-free at all CUNY and SUNY two- and four-year colleges in New York State.

Washington College Bound

In the state of Washington, students can apply to participate in the College Bound scholarship program, which gives eligible students public college tuition, or an equivalent amount for an approved private college or career school. Students must apply for financial aid and attend a participating college in Washington.

Recommended: In-State Tuition: a Look at Establishing Residency

Arkansas Future Grant

The Arkansas Future Grant covers the cost of tuition and fees for certain certificate and associate degree programs at public education institutions in Arkansas.

Delaware SEED Program

The Delaware SEED Program gives scholarships to Delawareans of all ages who would like to pursue an academic degree (including an associate or bachelor’s degree) or a workforce training certificate at Delaware Tech.

Hawai’i Promise Scholarship

The Hawai’i Promise Scholarship provides free in-state tuition to students with financial needs who attend the University of Hawai’i Community College. This program covers direct education costs including tuition, books, supplies, transportation, and school fees.

Kentucky Work Ready Kentucky Scholarship Program

The Work Ready Kentucky Scholarship Program assists Kentucky college and high school students in paying for tuition as they work towards earning an industry‐recognized certificate or diploma.

Maryland Community College Promise Scholarship

Students who are pursuing certificates, vocational certificates, or associate degrees may qualify for the Maryland Community College Promise Scholarship if all other aid options are exhausted and they are enrolled in select Maryland community college programs.

Minnesota MnSCU Two-Year Occupational Grant Pilot Program

Minnesota students may qualify for financial assistance through the MnSCU Two-Year Occupational Grant Pilot Program if enrolled in qualifying career and technical programs at MnSCU two-year college.

Missouri A+ Scholarship

Missouri students who attended A+ designated high schools may qualify for the Missouri A+ Scholarship if they attend a select public community college, vocational school, or technical school.

Montana Promise Act

Students attending a two-year institution of the Montana university system and taking select courses may qualify for the Montana Promise Act . To be eligible, students must be enrolled in a Montana community or tribal college, or other Montana university system two-year institution at least part-time.

Recommended: What Is the Cost of Attendance in College?

Nevada Promise Scholarship

The Nevada Promise Scholarship is a last-dollar scholarship that can cover up to three years of tuition and mandatory fees not covered by other forms of gift aid for Nevada high school graduates to attend community college.

The Oregon Promise Grant

Oregon students seeking assistance paying for college should consider applying for the Oregon Promise
Grant which covers the tuition costs at any Oregon community college for students who recently graduated high school or passed the GED test.

Recommended: What Are College Tuition Payment Plans and How Do They Work?

Rhode Island Promise

The Rhode Island Promise program allows recent Rhode Island high school graduates to obtain an associate degree at the Community College of Rhode Island tuition-free.

Tennessee Promise

The Tennessee Promise program is a scholarship and mentoring program for students attending any of Tennessee’s 13 community colleges, 27 colleges of applied technology, or other select eligible institutions.

Finding Ways to Pay for College

Free tuition programs may not be available to all students. In that case, paying for college may require compiling together a few different sources of financing.

Students can fill out the Free Application for Federal Student Aid (FAFSA®) each year to apply for federal aid, including scholarships, grants, federal student loans, and work-study programs.

If college students need help covering the costs of pursuing higher education and don’t receive enough financial aid to do so, they have the option of applying for private student loans. Unlike federal student loans, which are issued by the U.S. government, private loans come from private institutions, such as banks, credit unions, and online lenders.

Generally, students will want to exhaust federal student loans first, as they come with government-backed benefits such as low fixed interest rates and income-driven repayment plans that are not available with private student loans.

While private student loans can cost more than federal student loans, you can often borrow up to the total cost of attendance (including room and board), which gives you more borrowing power than you can get with the federal government.


💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

The Takeaway

Some states offer free tuition programs that provide residents with resources to help cover their tuition costs. For those that qualify, these programs can provide much-needed financing to help them pursue their education goals.

Sometimes, state and federal aid isn’t enough to cover a students’ college costs. In that case, some students may explore private student loans. Though these loans may lack some of the borrower protections available for federal student loans, they can be an option for filling in funding gaps. When shopping for private student loans, it can be helpful to compare potential interest rates and fees with different lenders to find the best deal.

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

Photo credit: iStock/Vimvertigo

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.

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.

SOIS0823045

When a borrower stops making payments on student loans for a period of time, they could end up in default. And in some cases, lenders may send defaulted loans onto collections.

If your student loans end up in collections, it can have some bad financial consequences. Your credit score may be damaged, and sometimes your wages may be garnished. While it can be very stressful, there are steps you can take to fix the problem.

Before we dive in, it’s important for you to know this is an incredibly complex topic. We’re going to try to break it down the best we can, but full disclosure: The information we’re sharing here is general in nature and does not take into account your specific objectives, financial situation, and needs; it should not be considered advice. SoFi recommends you speak to a professional about your unique situation so you can make sure you make the right decision for your circumstances.

How Student Loans End up in Collections

Student loans don’t go away until you’ve paid them off. If you haven’t been paying off your student loans, your debt can go into default, because you are failing to fulfill your contractual obligation to repay your loan.

Americans owe more than $1.7 trillion in student loan debt as of the second quarter of 2023. When you consider that the average federal student loan debt for the class of 2023 was over $37,574, it’s no surprise that some have trouble keeping up with it. In fact, an average of 7% of student loans are in default at any given time.

💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

Delinquent Federal Student Loans

The first day after missing a payment on a federal student loan, the loan becomes delinquent. The loan will remain delinquent until the overdue balance is paid, or the borrower makes alternate arrangements such as applying for deferment or forbearance or switching their payment plan.

After 90 days of missing payments for federal student loans, the loan servicer will report the late payments to credit bureaus, which could negatively impact the borrower’s credit score.

Recommended: Defaulting on Student Loans: What You Should Know

Federal Student Loans in Default

For federal loans, you typically go into default after you haven’t paid your loan bill for nine months or 270 days.
When in default, the entire balance of the loan comes due. But just because a loan is in default, doesn’t mean it automatically goes to a collections agency.

At this point, you may have the opportunity to make arrangements with your loan servicer. For example, your lender may help you tailor solutions that lower your monthly bill to make payments more manageable for you.

However, if you don’t come to an agreement, your lender can send your debt to a collections agency that will collect it for them.

No federal loans went into default during the Covid-19 student loan pause. That’s changing as of September 2023, but thanks to the one-time Fresh Start program, borrowers who have defaulted loans can take steps to have their default status removed from their credit reports and restart payments with no penalties.

Private Student Loans in Default

The timeframe may vary for private loans depending on the terms and conditions of the loan. Generally speaking, private student loans may go into default after 90 days ​of missed payments. You should read your loan agreement for more information on when your loan provider will send your defaulted loans to collections.

What Does It Mean to Have a Loan Sent to Collection?

Once your debt is sent to a collections agency, that agency will do everything they can to get you to pay. Unfortunately, on top of collecting the debt, collections agencies typically charge fees, for which you’ll also be responsible.

Once your debt is in collections, the collections agency might try to work out a repayment plan with you as a first step. If you continue to not pay, the agency can then take actions to recoup the money, such as trying to garnish your wages.

Garnishment means the agency can take a certain amount from each paycheck and apply it toward your debt — in the case of federal student loans, it’s not more than 15%. For federal student loans, lenders are not required to take the borrower to court before garnishing wages.

Private student loans function differently. They are not subject to the same special regulation as federal student loans. Private lenders interested in garnishing wages must follow garnishment rules laid out for private debt. In this case, the lender is required to take the borrower to court and obtain a judgment in their favor before any wages can be garnished.

Recommended: What Happens If You Just Stop Paying Your Student Loans

What Happens When Your Loans Go into Default and Collections?

Some other not-so-great things can happen when your loans go into default and collections.

First, if you have defaulted on federal student loans, you may lose access to various federal loan repayment plans and forbearance or deferment on federal loans. These programs are important tools designed to make it easier for you to pay off your loans. Loan forgiveness is offered to those who have jobs in certain government, healthcare, and nonprofit sectors. Forbearance allows you to temporarily stop making student loan payments or reduce the amount you pay each month.

Your credit score may take a hit as well. With both private and federal student loans, the lender or the collections agency will report the late payments to the three major credit bureaus, and that might then lower your credit score.

A low credit score might cost you down the line, making it difficult to secure future loans at reasonable interest rates, should you want to buy a house or a car, for example. It may even mean you won’t qualify for a loan at all. Avoiding default might help you maintain these important financial tools.

Recommended: Student Loan Deferment vs Forbearance: What’s The Difference?

How to Get Your Loans Out of Default

The best thing you can do to avoid your student loans going into default and being sent collections is to pay your bills on time. And if you think you’re going to miss a payment, reach out to your loan provider to see if they’ll offer support.

But if you’ve defaulted, there may still be options for you to recover.

Options for Federal Student Loans

If you have federal student loans, you can try to rehabilitate your student loan in collections. Here’s how the program works: After you’ve made three consecutive on-time, voluntary, full payments on a defaulted federal loan, you can consolidate your federal loans.

The new direct loan pays off the old loans in full and consolidates them. Once you have made nine out of 10 consecutive, voluntary, on-time payments to this new loan, the loan may be rehabilitated and the default may be removed from your record. With a Direct Consolidation Loan, your eligible federal loans will be combined into one loan with a fixed interest rate — and the new rate will be the weighted average of the rates on the loans being consolidated (rounded up to the nearest one-eighth of 1%).

Options for Private Student Loans

When it comes to private student loans, private lenders may or may not offer borrowers the opportunity to rehabilitate their loans. You should contact your lender and ask what you can do to get your loan out of default. Sometimes borrowers who have rehabilitated a private student loan may ask to have the default removed from their credit report, but there is no guarantee that it will be removed.

In some circumstances, the statute of limitations on debt may be a consideration for private student loan debt. This is a legal time frame in which a creditor is allowed to collect on the debt, and it is determined by state law. In the case that the statute of limitations on private student loan debt has been met, entering into a rehabilitation plan may restart the limitations period.

Additionally, it’s important to note that some lenders may charge off private student loans that are delinquent for 120 days, or a set period of time, which may vary from lender to lender. When a lender charges off a loan, it means they have written off the loan as a loss and close the account. They typically sell your loan to a debt buyer or collections agency. But you are still legally obligated to pay off the loan. If the debt is charged off, the lender may not be willing to work with the borrower.

What to Do If Your Student Loan Goes to Collections

If you do find yourself in the unfortunate situation of having debt in collections, there might be steps you can take.

First, you could talk to your collections agency. It might seem scary, and it may be tempting to ignore their calls and letters, but doing so isn’t going to make them stop. Remember: Collections agencies want you to pay. It’s in their best interest for you to ultimately pay back your loan. In many ways, this is a situation in which the ball is in your court.

When you talk to them, the collections agency might offer payment options tailored to your individual circumstances, depending on if you’re employed and how much money you earn.

They might offer solutions such as allowing you to pay a discounted lump sum, or they might set up a manageable monthly payment plan if you don’t have a lot of income.

Having your loans in default or collections might have serious effects on your credit and your financial stability. If you’re afraid of defaulting on your loans, or if you already have, consider taking action as fast as you can. Taking control of the situation could help keep it from getting worse.


💡 Quick Tip: It might be beneficial to look for a refinancing lender that offers extras. SoFi members, for instance, can qualify for rate discounts and have access to career services, financial advisors, networking events, and more — at no extra cost.

The Takeaway

In an ideal world, the best way to avoid going into student loan default is to make payments on time and in full. But if you have competing financial priorities, it may be difficult for you to pay your loans on time.

If your student loans end up in collections, it may damage your credit score, and with federal loans, your wages may be garnished. But there are steps you can take to rehabilitate your defaulted loans, depending on whether you have private or federal loans.

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

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

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.

This article is not intended to be legal advice. Please consult an attorney for advice.

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

SOIS0823052

The day you leave for college may still seem like a long way off, but high school can be a great time to start saving for future college expenses, especially as the cost of higher education continues to climb each year.

Just making a few simple moves, like picking up a part-time or summer job and signing up for AP classes (which may allow you to skip some college classes and save on tuition), can go a long way once you get to campus.

Read on for more tips on how to start saving up money for college while you are still in high school.

Advancing Yourself With AP Classes

Achieving an AP Exam score of 3 or higher may allow incoming freshmen to skip introductory college courses or gain credit toward graduation. The College Board reports that nearly all colleges and universities in the U.S. offer credit, advanced placement, or both based on your AP scores.

Most colleges have a policy outlining the minimum scores needed to earn credit for specific AP Exams, plus how much credit will be awarded and how it applies to your degree or graduation requirements. The College Board offers an AP credit policy search online, but it’s wise to double check with your individual school.

Earning college credit before you even step foot on campus freshman year can be a great way to save money on future college classes in the long run. You might even be able to graduate early, which could mean thousands of dollars in savings depending on which university you attend. Of course, there are fees to take the AP Exams, but that amount may be offset by the amount of credit hours you’re able to gain if you score well.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Picking up a Part-Time or Summer Job

Working in high school and setting aside at least a portion of your earnings in a savings account earmarked for college can definitely come in handy when it comes time to cover expenses like books, meals, entertainment, or off-campus rent.

Recently, some companies with part-time and entry-level jobs — perfect for high school students — have started offering tuition support or reimbursement for eligible employees. At Starbucks, for instance, part- and full-time employees are able to get 100% of their tuition reimbursed for a first-time bachelor’s degree through Arizona State University’s online program. Working at Chipotle, you may also be able to receive some tuition assistance every year.

Managing Expenses by Budgeting

It’s never too early to start good money habits, such as maintaining a balanced budget. You might start with a simple spreadsheet that tracks your monthly income (like allowance or any paychecks you earn) as well as your monthly spending, separating your expenses into essential and nonessential. You may be able to free up more money for college savings by cutting back on nonessential expenses. The popular 50/30/20 budget rule suggests putting 20% of your income toward savings for long-term money goals, like saving for school.

Starting to save in high school could potentially help minimize the financial burdens you face during college. Maintaining a budget in high school could also help prepare you for keeping your expenses in line as a college student.

When making a college budget, make sure you research what things like books, transportation, rent, and groceries are going to cost in the area. You can then look at what you might be able to cut in order to save more, like smaller meal plans, off-campus housing, renting used textbooks, or taking the bus rather than bringing your car.

Recommended: 33 Ideas for Saving Money While Dorm Shopping

Switching up Your Savings Account

A high-yield checking or savings account could earn you significantly more money by paying a high-than-average interest rate. This could help your college savings fund grow quicker.

If you earn a regular paycheck, one easy way to save is to split up your direct deposit between your checking and savings account. This way, you guarantee some money automatically ends up in savings, making it a little harder to spend. You could also set up an automatic transfer within your account so that you don’t have to constantly remind yourself to save.

Researching Scholarships and Grants

Scholarships and grants are both forms of aid that don’t need to be repaid, essentially making them free money. Getting a scholarship, or a few, can go a long way in lessening the financial burden you face in college. Some scholarships are awarded to incoming freshmen so spending some time researching scholarships and grants could pay off in the long run.

There are online databases, like FastWeb or Scholarships.com, that aggregate information about different scholarships and what their application process looks like. Each scholarship is likely to have their own eligibility criteria and application requirements so pay attention to the details when you are applying.

Different Ways to Pay for College

The U.S. government offers aid in the form of federal student loans, but also grants and some scholarships, which can significantly reduce the cost of college. It’s important when applying to schools to consider all of the costs involved. You can estimate your financial aid online ahead of time, so you can make an educated decision about where to attend school.

If savings, financial aid, and federal student loans aren’t enough to pay for college, private student loans are another option to consider. These loans are made by private lenders and aren’t required to follow the same regulations as federal student loans. Because of this, they lack the borrower protections afforded to federal student loans and are generally considered an option only after all other sources of funding have been reviewed.

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

The Takeaway

High school is the perfect time to start preparing for college and how you’ll pay for it. Taking on a summer or part-time job can boost your income and allow you to start socking away money for future college expenses. Other ways to make the cost of college more manageable include taking AP classes, researching scholarship options, applying for federal financial aid, and taking out federal or private student loans.

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

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.

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.

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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College is expensive. In the 2022-23 academic year, tuition and fees averaged $39,400 for students at private universities — that’s $157,600 for all four years. Tuition and fees at public colleges were lower, but still steep — averaging $28,240 for out-of-state students and $10,950 for in-state students.

Keep in mind that these numbers don’t include all the other necessary expenses of college life, such as room and board, books, supplies, clothing, and entertainment. At the same time, it’s difficult for college students to earn a lot during these years, given the demands of school.

Fortunately, there are numerous options for financing the cost of higher education, including scholarships, loans, and part-time work. There are also ways to trim your expenses while you’re in college, which can mean borrowing less money, and owing less in loan repayments (and interest) down the line.

Saving Money as a College Student

Luckily, once you adopt a money-conscious mindset, you’ll likely find there are many ways to save money in college. Plus, building the habit of budgeting now can serve you well as you move on to life and enter the real world. Here are some tips for how to save money in college.

1. Take Advantage of Student Discounts

Lots of businesses and service providers offer special deals to students. You can buy clothing, shoes, and furniture for your dorm or apartment for less at certain retailers with a valid student ID.

Entertainment is another area where you can save. Some movie theaters offer student discounts at some locations or on certain days. Some museums and sports events offer discounted access to students as well. You may also find discounts on certain music and video streaming sites. And you can save on travel with discounts at certain car rental and car insurance companies, as well as on trains and buses.

💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs

2. Buy Your Books (and Other Necessities) Used

Renting or buying used textbooks is a classic way to save money in college. You can find used books at many campus bookstores and through online retailers.

Used books often come at a fraction of the price of a brand new book, and many are in perfectly good condition. Plus once you’re done, you can try to resell the book.

You can save by buying other items second-hand as well. You might try looking for used clothing and furniture at thrift stores, garage sales, estate sales, flea markets, or on sites like Craigslist, OfferUp, and Facebook Marketplace.

Recommended: 33 Ideas for Saving Money While Dorm Shopping

3. Cook Meals at Home

Food can eat up a big chunk of your college budget, since students with limited cooking skills and small kitchen spaces may be tempted to eat out for every meal. But restaurant tabs can add up quickly.

Shopping wisely for your own ingredients and making simple meals in your living space can help you save a lot of money — and leftovers from one home-cooked meal can be lunch the next day, for even more savings.

4. Serve as an R.A.

Becoming a resident assistant (R.A.), can not only be rewarding but also help you cut down on living expenses. R.A.s are a sort of big brother or sister in dorms, organizing social events, advising younger students, enforcing rules, and mediating disagreements. Many R.A.s receive free or discounted housing and meals, and some also get a stipend.

5. Cut Out the Extras

One of the best tips to save money in college is to look for areas in your budget where you can trim by choosing a less expensive option.

If you frequent coffee shops, for example, perhaps you can brew your own java a few days a week, or find a less fancy option with free refills.

Instead of always going out to bars with friends, maybe you can take turns hosting get-togethers in your on- or off-campus apartments. If you belong to a fancy gym, you might search for lower-cost options on campus, join a sports league, or jog/run outdoors.

Instead of a spring break trip to an all-inclusive resort a plane-ride away, consider a group camping trip or sharing a house at a nearby lake. Get creative — the trip will likely be just as fun.

6. Pay Your Bills on Time

When you pay all of your bills by the due date, you can avoid unnecessary fees and help keep interest from piling up. If you’re worried about forgetting, you may be able to set autopay through your credit card, the service provider itself, or your bank.

Staying on top of bills not only avoids added costs but may also help keep your credit report in good shape. That could help you qualify for better terms on loans and credit cards down the line.

7. Take Advantage of Family Discounts

You may have left home, but maybe don’t cut the cord completely just yet. Many phone and car insurance plans are cheaper if you sign up with family members, rather than as an individual. If your family is on board, this can be one of the easiest ways to go about saving money in college.

If you’re under age 26, you should be eligible to stay on your parents’ health insurance plan, which may be less expensive than purchasing your own. You might also see if your parents will unofficially keep you on various “family plans” by sharing their logins for things like video streaming services.

8. Sign up for Cash Back Credit Cards

If you’ve decided to use a credit card, you might as well earn some cashback while you’re at it. As long as you pay your bill in full each month to avoid fees and interest, you may benefit from a reward credit card. You could earn points that can be applied as a statement credit, sent to you in check form, or put toward merchandise or gift cards.

When signing up for a cashback credit card, look for one with a low or no annual fee that offers the highest amount of cashback possible. And remember, any benefits will likely evaporate if you do not pay your balance in full every single month.

9. Frequent the Library

Instead of purchasing books, look for them at your local or on-campus library. Your library may also offer magazines and movies so you don’t have to spend money on those, either. Many public libraries now offer digital loans you can download and enjoy instantly on your favorite device.

You might also consider using the library as a free and quiet place to study instead of spending money at the local coffee shop. To make your library experience even more enjoyable, invite friends to form a study group.

10. Give Up Your Car

If you live on campus, you may not actually need a car and all its associated monthly costs (insurance, repairs, gas, and parking, to name a few). Look into free campus shuttles and public transportation to get you where you need to go.

If you need to use a taxi or rideshare service, you can comparison shop to find the cheapest option, and if you’re looking to take a longer trip, split the cost of a rental car with friends.

11. Look Into Work-Study Options

Work-study is a need-based federal program that provides student-friendly, part-time jobs to help cover school expenses. As a bonus, the work experience may benefit you when it comes time to jump into the job market.

To apply for work-study, you must fill out the Free Application for Federal Student Aid (FAFSA) and indicate that you would like to be considered for work-study. Selecting this option, however, doesn’t automatically mean that you will receive work-study as part of your financial aid package. Acceptance depends on a few factors, including when you apply (earlier is generally better), your level of financial need, and the school’s funding level.

12. Look for Discounted Banking Products

Some banks offer college savings and checking accounts that don’t charge the same types of fees or have the same balance requirements as normal accounts do.

It’s a good idea to shop around and look into different banks (including banks with local branches and online banks) and compare what kinds of benefits they are offering to college students before making your decision.

13. Take Advantage of Free Campus Activities

Colleges often host a number of different activities for students throughout the week. There might be dances, plays and musicals, sporting events and more, all for free.

By choosing these activities instead of going off-campus, you can save money without sacrificing on fun.

14. Stay Focused

Though college can be a lot of fun, you also need to keep your eye on the prize (graduation) and stay on top of your schoolwork.

Taking more than four years to graduate could blow your higher education budget and negatively impact your earning potential. Some hyper-focused students even graduate in fewer than four years.

Recommended: Return on Education for Bachelor’s Degrees

15. Buy in Bulk

This one requires a little price sleuthing, but for nonperishable items you use a lot of, you’ll typically save money buying in bulk. This is true whether you have access to a membership at a bulk goods store like Costco or Sam’s Club, or you’re choosing between package sizes at a superstore like Target or Walmart. If you can’t use or store an enormous quantity of, e.g. toilet paper, consider going shopping with a friend and splitting the goods.

16. Turn in the FAFSA Every Year

Every year, you need to fill out your FAFSA form to qualify for financial aid. If you don’t turn it in, you could be throwing away free money.

While in the past the form was long and somewhat complicated, a new, simplified FAFSA form is coming in December 2023 for the 2024-25 academic year. The application will be pared down to just 36 questions from 108. There will also be some changes in financial aid eligibility rules, making it easier for some families to qualify — so definitely don’t skip the FAFSA.

17. Sell Your Textbooks

Once you’ve completed your courses for the year, you can take the books you purchased and resell them to get some of your money back.

To get the best possible price, compare quotes from your campus bookstore against the going online sale rate. Websites like BookScouter help you compare prices before you list your books for sale.

18. Consider Printing Expenses

You may already pay for use of on-campus printers with your student fees. Don’t spend additional money on printers, ink, and paper if it’s cheaper to utilize the printing resources at the library or other places around your campus.

19. Look Into Local Restaurant Deals

To enjoy a nice meal out while saving money, keep your eye out for deals at local restaurants. Many establishments offer happy hour specials or special discount nights.

You may also be able to access valuable coupons by downloading the restaurant’s app, signing up for their emails, and/or filling out surveys printed at the bottom of your receipts. There are also sites that offer restaurant coupons, such as Restaurant.com.

20. Find the Free Food!

You can’t get cheaper than free. Departments and organizations on campus will often offer free food like pizza and sandwiches to entice students to attend their events.

Keep an eye out for signs around campus. You could score some free dinner and you might find some interesting people or a new hobby while you’re at it.

💡 Quick Tip: Would-be borrowers will want to understand the different types of student loans that are available: private student loans, federal Direct Subsidized and Unsubsidized loans, Direct PLUS loans, and more.

Other Ways to Finance College

Saving can get you far. But you may still need help coming up with the full cost of attendance for college. Fortunately, by filling out the FAFSA, you will automatically be in the running for federal financial aid, which may include grants, scholarships, work-study, and subsidized federal loans.

It can also pay to research private scholarships opportunities online and apply for any you think you might qualify for. Though each award may be small, if you are able to get a few scholarships, it can add up to a significant sum.

You may then want to fill in any gaps in funding with unsubsidized federal loans and, if necessary, private student loans. Private student loans are available through banks, credit unions, and online lenders. Loan limits vary by lender, but you can often get up to the full cost of attendance, which is more than you can borrow from the federal government. Interest rates may be fixed or variable and are set by the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

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

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

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.

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.

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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