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When it comes to college admissions, two standardized tests stand out: the ACT and the SAT. Both are designed to assess a student’s readiness for higher education, but they have distinct differences in format, content, and scoring.

Keep reading to learn more about how these tests compare, which one you should take, and how colleges feel about these two exams.

Purpose, Structure, and Cost

The SAT and ACT are two exams that serve the same purpose. Colleges utilize both exams to determine admission and award merit-based scholarships. Both tests are similar in length and structure, with the SAT taking 2 hours and 14 minutes, and the ACT taking 2 hours, 55 minutes (without essay), and 3 hours, 40 minutes (with essay) to complete.

For the 2025-26 school year, it costs $68 to register for the SAT. There are additional charges if you change test centers ($34) or you register late ($38). Your first four score reports are free if you order them within nine days after the test date. After that, any additional reports you want to send to multiple colleges cost $15 each.

The cost to register for the ACT for the 2025-26 school year is $65 with no writing ($25) or science ($4). There are additional charges if you change test centers ($44) or you register late ($38). Your registration fee covers reports for you, your high school, and up to four colleges (if you provide the codes when you register). Additional score reports are $19.

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

The Subject Matter

These two exams cover similar subject matter and include an optional essay portion, although there are some key differences worth noting when it comes to preparing to take these exams. The main difference between the ACT and SAT subject matter is that the ACT has a science section, whereas the SAT does not.

ACT Subject Matter

The ACT includes four main sections: English, Math, Reading, and Science, with an optional Writing section. The English section focuses on grammar, usage, and rhetorical skills, while the Math section covers a broader range of topics, including trigonometry and advanced algebra. The Reading section tests comprehension and analysis of passages, and the Science section evaluates a student’s ability to interpret, analyze, and evaluate scientific information and data.

SAT Subject Matter

The SAT is structured into two main sections: Evidence-Based Reading and Writing, and Math, with an optional Essay section. The Evidence-Based Reading and Writing section is divided into Reading and Writing & Language tests, focusing on critical reading, vocabulary, and writing skills. The Math section is split into two parts: one that allows the use of a calculator and one that does not, and it emphasizes problem-solving and data analysis, with a greater focus on algebra and less on advanced math topics like trigonometry.

How Each Exam Is Scored

Both the SAT and ACT have unique scoring systems. Here’s a bit of information on each.

How the SAT Is Scored

The SAT is scored on a scale of 400 to 1600. Breaking down the scoring process a bit further, the SAT has not just a “total score,” but “section scores.” Each of the main sections, reading/writing and math, may be scored up to 800 points. These scores are then combined for the total.

Last but not least, students will receive subscores, evaluating their performance of certain or subject areas. These scores are included as a part of the total score, but this breakdown can be insightful for students looking to retake the test and improve their skill set.

Recommended: How to Help Your Child with SAT Practice

How the ACT Is Scored

The ACT is scored on a scale of 1 to 36. The ACT scoring system begins by taking into account how many questions a student answers correctly. The “raw scores,” which represent the number of correct answers on each test, are then converted to “scale scores.” Each subject section — English, Math, Reading, and Science—receives a scale score.

The “composite score,” which ranges from 1 to 36, is an average of each subject test, rounded to the nearest whole number. The scoring process is completed after identifying the percentage of correctly answered questions.

Recommended: Ultimate College Application Checklist

Do Colleges Prefer the ACT or SAT?

Both the ACT and SAT are widely accepted by U.S. colleges and schools generally don’t have a preference for one over the other. Many people believe that the SAT is more popular, especially with elite colleges, but that is a higher education urban legend.

There may, however, be some regional preferences between ACT vs SAT. College Raptor analyzed the numbers of students who applied to colleges with ACT or SAT scores (numbers that colleges and universities report to the government) and found that, while many states were split down the middle, a few lean more in one direction towards ACT or SAT. For example, Wisconsin leans heavily towards an ACT preference — there, 95.27% of applicants submitted ACT scores.

Knowing Which Test to Take

While some students opt to take both the SAT or ACT, some choose just one in order to focus on preparing for the test they believe they are more likely to score higher on. Neither test is generally easier than the other, but some students may find their different structures suit their needs better.

The SAT focuses more on critical reading, writing, and problem-solving, with a greater emphasis on algebra and data analysis in its Math section. The ACT, on the other hand, includes a Science section and covers a broader range of math topics, including trigonometry. If you excel in science and math, the ACT might be a better fit. If you are strong in reading and writing, the SAT could be more advantageous.

Taking a full-length practice test of each exam can give you a better idea of which test you’ll score higher on. Once you’ve determined which is a better fit, you can spend their time and resources preparing for just one test instead of two. If you feel comfortable preparing for and taking both exams, doing so can be beneficial as you will have two scores to choose between to send to colleges.


💡 Quick Tip: Federal student loans carry an origination or processing fee (1.057% for Direct Subsidized and Unsubsidized loans first disbursed from Oct. 1, 2020, through Oct. 1, 2026). The fee is subtracted from your loan amount, which is why the amount disbursed is less than the amount you borrowed. That said, some private student loan lenders don’t charge an origination fee.

Paying for College

The options don’t stop after you complete the test (or tests) of your choice. Once you use your solid scores to get into the college of your dreams, you and your family may be faced with some other big decisions, especially when it comes to paying for college.

Luckily, there are options — including grants, scholarships, and federal student loans — that can help offset the out-of-pocket costs. If you’ve exhausted those avenues and still have a funding gap, you may want to explore private student loans and or parent loans.

Private student loans are available through banks, credit unions, and online lenders. Unlike federal loans, applying for a private loan requires a credit check. Students who have solid financials (or a cosigner who does) typically qualify for the best rates and terms. Just keep in mind that private loans don’t come with the same protections, like government-sponsored forgiveness programs, that you get with federal loans.

The Takeaway

In the ongoing debate between the ACT and SAT, it’s clear that most colleges do not have a strong preference for one over the other. Both tests are designed to measure college readiness and are widely accepted. Ultimately, the choice should be based on which test aligns better with your strengths and testing style.

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.

FAQ

Do most colleges prefer the SAT or ACT?

Most colleges do not have a strong preference for one test over the other. They accept both and consider them equally in the admissions process.

How can students decide which test to take?

Students should consider their strengths and testing style. If you excel in science and advanced math, the ACT might be a better fit. If you are strong in reading and writing, the SAT might suit you more. Taking practice tests for both can also help determine which one you perform better on.

What are the main differences between the ACT and SAT?

The ACT includes a science section and covers more advanced math topics, while the SAT focuses more on critical reading and writing. The ACT is generally more straightforward, while the SAT can be more complex and requires strong reasoning skills.

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.

As useful as a college’s website can be, touring colleges can be a great way to get the inside scoop and access to hard-to-find information. Instead of sifting through endless pages online, you can get answers from the people who know the school best.

You might feel lost when it comes to figuring out which questions to ask on a college tour, but here’s a guide into some basic categories to help make it less overwhelming for you and your parents, if they’re joining you.

Campus Life

What college is like involves a lot more than just attending large lectures and pulling all-nighters at your computer. Each campus will have its own culture and social life that you’ll want to explore.

Usually, in the first few weeks of the year, there will be events where clubs, Greek communities, and student councils set up tables and try to recruit members.

Getting involved in on-campus activities, clubs, and extracurriculars can be a great way to build a network, explore your interests, and importantly, make friends. So it can be helpful to get an idea of the types of activities a school offers and how you can get involved while you’re on your college tour.

Ask if your guide knows when these events are planned and what types of organizations will be present.

Another important facet of campus life is, of course, the food. Your guide will probably show you where the various food courts and dining halls are, but it doesn’t hurt to ask about what is available and what their recommendations are. And if you have specific dietary restrictions, you may want to ask what types of accommodations dining halls can make.

Some more questions you might want to ask about campus life include:

•   Where do most people hang out on campus?

•   What time do places (e.g., library, coffee shops, restaurants, gym, etc.) close?

•   Is it easy to find parking near campus?

•   How are people grouped in dorms (by their year in college or interests)?

•   Do most freshmen live on campus? Is there a freshman dorm?

College is going to be your home for about four years, your experience will be impacted by the time you spend both in and out of the classrooms on campus.


💡 Quick Tip: Private student loans offer fixed or variable interest rates. So you can get a loan that fits your budget.

Classes

A large portion of your time in college will, naturally, be spent in your classes. Your tour will probably cover certain types of buildings, like the engineering building, the liberal arts buildings, etc. But if your guide doesn’t mention where classes for your major will be taking place, make sure to ask so that you are familiar with the campus layout.

If you haven’t researched how big your classes will be, this could also be a good time to ask those questions. See if your guide has information on how common large lectures are as opposed to smaller class sizes.

You may prefer a school where smaller class sizes are the norm. This can make it easier to get to know your classmates and professors. Or, you might like the excitement of being in a large lecture hall.

Registering for college courses can be a hectic experience, especially for popular classes with limited spots available. Every college has its own system and it can impact whether or not you get the courses you want.

Ask your guide what the school’s process is for class registration and if you might have issues getting desired courses within your major.

Recommended: College Visit Checklist for Parents

Sports

Another way to get involved in your school’s social scene is through sports. Your school will likely have official sports teams as well as intramural sports.

Going to the official games with friends is a fun way to show your school pride and spend time with classmates outside of studying.

Some questions you can ask your guide about sports are:

•   Where are the sports played, on-campus or off?

•   Which ones are the most popular to watch?

•   What’s the average cost (if any) for a sporting event ticket?

If there’s a sport that you’re particularly fond of watching, ask your guide about the school’s team.

If you’re athletic or want to become more athletic, joining an intramural sports team can be a fun way to get exercise and socialize at the same time.

While you’re on your tour, ask where the school gym is and where and when intramural sign-ups usually happen. Another question you might ask on your college tour is if a gym membership is included in tuition and what you get access to, as some intramural sports may have an extra sign-up cost.

Living Situations

Some of the most important questions to ask on a college tour will have to do with the available living situations. Choosing your college living situation is a huge decision.

There are usually a few options depending on how far away from home your school is. If you’re going out of state, you’ll probably have the option to live in a dorm or find somewhere to live off-campus. Some schools require out-of-state freshmen to stay on campus during their first year, so asking about this on the tour can help you understand what’s required at your school.

Since every school’s dorms will be different, here’s a list of questions worth asking while you’re on the tour:

•   How many people are assigned to a room? If it’s suite-style, how many people share common living spaces such as the kitchen and bathrooms?

•   How do they assign roommates, and when do you learn who your roommate is?

•   What is the process for changing your roommate if problems occur?

If you choose to stay in the dorms, you want to make sure your college will be supportive of making sure it’s a safe and friendly environment for students.

Off-campus living may be an option for your first year, but even if it isn’t, it can still be good to ask about it on your college tour. Ask what options are available nearby and what the average cost is for rent. It can be helpful to also gauge how many upperclassmen live on-campus vs. off-campus too.

Consider asking if the school has a system for finding roommates, like an online forum, so you can meet other students and find trustworthy people to room with.

Some schools may opt to assign roommates for freshmen, so understanding what the standard protocol at the school is can be helpful.

If you’re touring schools close to home, you may have the option of living at home. If you’re considering commuting, you could ask your guide how they think commuting affects students’ ability to enjoy campus life and their ability to stay involved in events/organizations.

Work and Career Opportunities

It’s pretty well known that college isn’t cheap. Hopefully, you’ll be able to get some help paying for tuition and books with various forms of financial support, but it doesn’t hurt to see what job opportunities will be available for you on campus.

Ask your tour guide if jobs are available to students and where you can get more information.

For long-term career goals, it’s important to know if your school hosts job fairs or networking events in your field. Many colleges will support students beyond just getting a degree.

During your tour, ask what events and services your school provides to help students start their careers post-graduation.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Financial Aid

Paying for college can be a stressful topic, but your tour guide may have a good understanding of what you’re feeling, having already gone through the process themselves. While you’re touring different schools, it can be important to ask what financial aid options are available that are unique to the school.

Wherever you end up going, the way to apply for financial aid is by completing the Free Application for Federal Student Aid (FAFSA). This will let you know if you are eligible for any federal aid, which may include grants, scholarships, work-study, and federal student loans.

That isn’t the only way to finance your education. Federal student loans and private student loans are both available. To fill in any gaps in funding, you may also want to explore private student loans. These are available through banks, credit unions, and online lenders. To apply for a private student loan, you generally fill out a loan application either alone or with a cosigner. Rates vary depending on the lender but borrowers with solid credit typically qualify for the lowest rates.

Just keep in mind that private student loans may not offer borrower protections, such as deferment and income-driven repayment plans, that come with federal student loans.

The Takeaway

College tours can provide a valuable window onto what a campus is like and what a school offers. While on the tour, it’s a great opportunity to get answers to your questions about everything from dorm room options to class sizes, from extracurricular activities to social events. Your guide can likely give you an insider perspective that you won’t get from a website or brochure. You might also ask about typical financial aid and career services offered, since affording college and launching your work life are likely of interest.

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.

FAQ

Should you go on college tours?

College tours are a good way to gain insights onto a campus and how it operates. You can also hear from a student guide about important insider topics and ask questions from a current student.

What are good questions to ask on a college tour?

Good questions to ask on a college tour can cover such topics as typical class size, dorm details, extracurricular activities, and typical costs. The information you learn can help you decide if a school is a good fit for you.

Do parents go with you on school tours?

The answer to whether parents go with you on school tours is that it can depend. Some students and parents definitely want to take tours together and discuss what they have seen and heard. Other students would rather go solo or visit campuses with a couple of their friends or a sibling. Lastly, don’t be surprised if a school divides the tour up into two kinds of groups, one for students and one for parents. That can be a way for students to develop their own independent view of the campus.

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.

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).

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.

SOISL-Q325-099

Attending college is a big milestone that both parents and students look forward to for many months.

While this is a highly anticipated event, college move-in day can also be a very stressful and emotional day for both students and parents. Attending a college that is out of state can be another nerve-wracking factor.

Moving can be challenging, especially if it’s hot or you have to climb up several sets of stairs. Fortunately, there are several things you can do ahead of time over the summer that can help ensure the day goes as smoothly as possible.

Preparing for the Big Day

Getting organized beforehand is one surefire way to prepare for the big move as a college freshman. Here are a few ideas to help you and your child get ready for move-in day.

Getting Familiar with Dorm Room Rules

Being prepared and learning what the college dorms allow students to bring can relieve some potential headaches. Colleges typically post a list of items that students can bring and ones that are prohibited in the residence halls.

Sticking to the basics is a good start since your child can buy more items from a local store or have it shipped to them at a later date.

Recommended: College Essentials: What to Bring to College

Coordinating with Your Roommate

Recommend that your child contact their roommate over the summer and discuss their interests and what items each of them are bringing. This can be one way to help avoid bringing duplicates, especially for larger items like TVs or bean bags.

Another idea is to coordinate the time you are going to move in so you can assist each other during the process. This can also be helpful if the parents are interested in meeting each other.

Packing with Purpose

Packing for college can be a frustrating task, but one way to expedite the chore is to have your child label all the containers and boxes so you know what’s already packed and can easily find things once you arrive. If you have items that are more fragile, consider putting them into heavy plastic containers so they are less likely to be damaged during the move.

Also consider making a list of must-have items to limit the chance that something important is forgotten. For example, bedding, computer, school supplies, a first aid kit, and basic tool kit — which can be extremely useful on move-in day.

Consider the Climate

If your child is attending a college that is out of state or in a different climate, you may have to build out a more weather-appropriate wardrobe. For instance, if your child is moving to a college in the Midwest from Florida, you might buy and pack weatherproof boots, jackets, scarves, gloves, and other clothing suited for colder temperatures.

If they are attending college in a warmer climate, consider packing more t-shirts and shorts and leave some of the sweatshirts and wool sweaters at home.

Recommended: College Planning Guide for Parents

Planning Travel Arrangements

Once you’ve organized and packed all of your child’s belongings, it’s time to decide how you’ll get everything to campus. This will likely depend on factors like how far away the school is.

Consider renting an SUV or a moving van if the university is within driving distance and you own a smaller vehicle. If you plan on driving your own vehicle, pack the car strategically, so items you’ll need first (like cleaning supplies), are easily accessible when you arrive.

If you’re planning to fly to the college, another strategy may be to mail some of the belongings to the residence hall ahead of time, if it is permitted.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than Federal Parent PLUS Loans. Federal PLUS Loans also come with an origination fee.

What to Expect on Move-In Day

Below are some ways to make college move-in day easier on you and your student.

Limit the Number of People

While going to college is exciting for your child and your family, consider limiting the number of people you bring with you on moving day.

Having too many people could actually slow down or complicate the process. Plus, it’s likely that many students and their parents will all be in the residence halls at the same time. Dorm rooms can be pretty small and having more people in the space could create more chaos and tension.

Instead, consider planning a visit when there is more flexibility. Many colleges have a family weekend in the fall. This could provide an opportunity for a longer, more relaxing and fun visit, especially if grandparents, aunts, and uncles also want to tag along.

Be Prepared for Hot Weather

Since many students move in during late summer, it can help to be prepared for heat (and humidity, depending on the local climate). It’s likely going to be hot, especially if the residential dorm does not have central air conditioning and only window units or getting to a top floor requires traipsing up and down several flights of stairs.

Consider bringing a fan to help circulate some air while you get everything settled.

Wear Comfortable Clothing

Doing all that heavy lifting is no easy task. Wear comfortable clothing and shoes for the move and bring another outfit to change into later as you tour the campus or grab dinner with your child.

Bring Snacks

Bringing water and snacks is generally a good idea too, especially if you are moving furniture and other heavier items. Putting the drinks in a cooler will help keep them cold, especially if the room does not have a refrigerator. Make sure you have enough for the roommate and their parents.

Remember a Dolly

Determine whether the residence hall has a dolly or other items that you can borrow because they can help make the move easier. Signing up for those items early can help ensure that you can use them the day you move in. Otherwise, you can buy one from a local hardware store or split the costs with a roommate or another friend who is living in the same residence hall.

Students who have other friends who are also moving in during the same day might want to consider connecting beforehand so they can help each other move, especially bulky or heavier pieces of furniture.

Buy Some Items Later On

If your student lives near a grocery or drugstore, they can buy other items later on or they can have the items delivered to them. Many retailers offer free shipping and stores at college campuses often have special offers suited for students.

Move-in day can be emotional, for everyone involved. As hard as it is to say goodbye, try not to hang around too long — let your child adjust to their new surroundings, hang out with their new roommate, make new friends in their residence hall, and get ready for their first day as a freshman.

Considering SoFi Private Student Loans

As you gear up for move-in day, you may have other concerns, including how you’re going to cover the cost of your child’s education. Financing your child’s education is a large responsibility and can be complicated. While there are some ways to prepare for college, like filling out the FAFSA to apply for federal aid, some families do not receive enough to pay for tuition and room and board entirely.

After exhausting federal aid options, you might want to explore private student loans. Just keep in mind that private student loans don’t offer the same protections, like government-sponsored forgiveness programs, that come with federal student loans.

The Takeaway

College move-in day is a significant milestone for both students and parents, marking the beginning of a new chapter filled with excitement and challenges. From packing efficiently and arriving early to staying positive and knowing when to step back, each step plays a crucial role in setting the stage for a successful college experience.

When it comes to how to pay for college, students and parents can rely on cash savings, scholarships, grants, federal student loans, and private student loans.

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

FAQ

How can parents best help with college move-in day?

Parents can best help with college move-in day by arriving early, packing efficiently, staying positive, meeting roommates and their families, and knowing when to step back. This ensures a smooth transition and sets the stage for a successful college experience.

What is a crucial step for parents to take after helping their child move in?

A crucial step for parents after helping their child move in is to know when to step back and allow their child to begin their independent college life. This might involve saying goodbye and leaving the campus, trusting that they are ready for this new phase, and encouraging them to explore and engage with their new environment.

How can parents support their children emotionally during college move-in day?

Parents can support their children emotionally by staying positive, being encouraging, and acknowledging their feelings. It’s important to reassure them that it’s normal to feel nervous or excited and to remind them of the exciting opportunities and experiences that await them in college.

About the author

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

When an undergraduate’s financial aid doesn’t meet the cost of attendance at a college or career school, parents may take out a Direct PLUS Loan in their name to bridge the gap.

These loans, also called Parent PLUS Loans, are available to parents when their child is enrolled at least half-time at an eligible school. Before you apply, it’s important to understand the benefits and challenges of this kind of federal student loan.

A “Direct” Difference

First, to clarify, there are federally funded Direct Loans that are taken out by students themselves. Then there are federally funded Direct PLUS Loans, commonly called Parent PLUS Loans, when taken out by parents to help dependent undergrads.

To apply for a Parent PLUS Loan, students or their parents must first fill out the Free Application for Federal Student Aid (FAFSA®).

A parent applies for a PLUS Loan on the Federal Student Aid site. A credit check will be conducted to look for adverse events, but eligibility does not depend on the borrower’s credit score or debt-to-income ratio.

💡 Quick Tip: Some lenders help you pay down your student loans sooner with reward points you earn along the way.

Pros of Parent PLUS Loans

Nearly 4 million parents (and in some cases, stepparents) have taken out Parent PLUS Loans to lower the cost of college. Here are some upsides.

The Sky’s Almost the Limit

The government removed annual and lifetime borrowing limits from Parent PLUS Loans in 2013, so parents, if they qualify, can take out sizable loans up to the student’s total cost of attendance each academic year, minus any financial aid the student has qualified for.

Note that for any loans disbursed on or after July 1, 2026, new federal limits will apply. Rather than borrowing up to the cost of attendance (minus any other aid), parents can borrow $20K per year, or $65K total per student.

Fixed Rate

The interest rate is fixed for the life of the loan. That makes it easier to budget for the monthly payments.

Flexible Repayment Plans

Current options include a standard repayment plan with fixed monthly payments for 10 years, an extended repayment plan with fixed or graduated payments for 25 years, and income-based repayment plans.

•  Note that as of July 1, 2026, there will only be one available repayment plan, the standard fixed repayment plan. Income-driven repayment plans will be eliminated.

More College Access

PLUS Loans can allow children from families of more limited means to attend the college of their choice.

Loan Interest May Be Deductible

You may deduct $2,500 or the amount of interest you actually paid during the year, whichever is less, if you meet income limits.

Recommended: Are Student Loans Tax Deductible?

Cons of Parent PLUS Loans

Many Parents Get in Too Deep

The program allows parents to borrow without regard to their ability to repay, and to borrow liberally, as long as they don’t have an “adverse credit history.” (If they did have a negative credit event, they may still be able to receive a PLUS Loan by filing an extenuating circumstances appeal or applying with a cosigner.)

The average Parent PLUS borrower has more than $34,000 in loans, a financial hardship for many low- and middle-income families.

And if a student drops out, parents are still on the hook.

Interest Accrual

Parent PLUS Loans are not subsidized, which means they accrue interest while your child is in school at least half-time. You’ll need to start payments after 60 days of the loan’s final disbursement, but parents can request deferment of repayment while the student is in school and for up to six months after. Interest will still accrue during that time.

Origination Fee

The government charges parents an additional fee of 4.228% of the total loan.

Fewer Repayment Options

Parents who struggle with payments typically have access only to the most expensive income-driven repayment plan, which requires them to pay 20% of their discretionary income for 25 years, with any remaining loan balance forgiven. And parents must first consolidate their original loan into a Direct Consolidation Loan.

Fewer Repayment Options

Parents who struggle with payments can switch to the income-based repayment (IBR) plan, which requires them to pay 10-15% of their discretionary income for 20-25 years, with any remaining loan balance forgiven. Parents must first consolidate their original loan into a Direct Consolidation Loan.

•  Note that new Parent PLUS loans (and consolidation loans repaying Parent PLUS Lonas) issued on or after July 1, 2026, must use a standard fixed repayment plan (10–25 years, depending on loan balance). Income-driven repayment options will be eliminated for these loans. If you want to consolidate into the IBR plan, you must do so before July 1, 2026.

Options to Pay for College

Instead of PLUS Loans, private student loans may be used to fill gaps in need.

Private lenders that issue private student loans typically look at an applicant’s credit score and income and those of any cosigner. The lenders set their own interest rates, term lengths, and repayment plans. Some do not charge an origination fee.

You may want to compare annual percentage rates among lenders, and decide if a fixed or variable interest rate would be better for your financial situation.

Any time a student or parent needs to borrow money for education, a good plan is a good idea.

Sometimes scholarships can significantly reduce the amount of money that needs to be paid out of pocket for college, and personal savings and wages can also help. But it isn’t unusual for students to also need to take out loans.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than Federal Parent PLUS Loans. Federal PLUS Loans also come with an origination fee.

Refinancing a Parent PLUS Loan

The goal of Parent PLUS Loan refinancing is to get a lower interest rate than the federal government is charging.

And student loan refinancing may allow children to transfer PLUS Loan debt into their name.

Refinancing could potentially lower your interest rate, which gives you the option to either:

•  Reduce your monthly payments

•  Pay the loan off more quickly, which may allow you to pay less interest over the life of the loan

Note that Parent PLUS Loans come with certain borrower protections, like the income-based repayment option and deferment options, that you would lose if you refinanced. Also note that if you refinance with an extended term, you may pay more interest over the life of the loan.

Eligibility for refinancing Parent PLUS Loans depends on factors such as your credit history, income, employment, and educational background.

The Takeaway

Millions of parents have used Federal Parent PLUS Loans to help pay for their children’s college education. In addition to Parent PLUS Loans, students can apply for scholarships, grants, and private student loans to help pay for college.

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

FAQ

How does the Parent PLUS Loan work?

The Parent PLUS Loan is a federal loan option where parents borrow money to help pay for their child’s college education. It covers tuition and other education-related expenses, with eligibility based on credit history. Repayment typically begins immediately, and interest rates are fixed.

Who is responsible for paying back a Parent PLUS Loan?

The parent who takes out the Parent PLUS Loan is responsible for repaying it. While the loan helps cover the child’s education expenses, the financial obligation lies solely with the parent, not the student. Repayment begins shortly after the loan is disbursed.

How long do you have to pay back Parent PLUS Loans?

Parent PLUS Loans typically have a repayment period of 10 years, with the first payment due about 60 days after the final disbursement. However, extended repayment plans of 25 years are also an option for those with more than $30,000 in Direct Loan debt.

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 Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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