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College is expensive. On top of tuition and room and board, you’ll also need to buy quite a few things to set up your dorm room – from power strips and lamps to bedding and decor. Fortunately, there are ways to save money on dorm room essentials without sacrificing on style, function, or comfort. What follows are 32 smart college shopping tips and tricks that will help you set up your room without breaking the bank.

Tips to Save Money Shopping for Dorm Room Essentials

If you are looking to save when it comes to college dorm shopping, here are some helpful tips.

1. Research Your Dorm

Before going dorm room shopping, look into how big your dorm room is and what furnishings are provided by the university. Then, you’ll have an idea of what you need to buy and can avoid spending money on things that you’ll have when you get to the dorm.


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

2. Check Out the Dorm Room Rules

It’s also important to find out the rules for your dorm room. For instance, perhaps your college won’t allow you to have candles or incense burning in your room, or it won’t let you bring a microwave. You’ll know you don’t need to purchase these items because they are forbidden.

3. Don’t Buy Too Much

Dorm rooms are (often) tiny. When looking into how to shop for your college dorm, less is generally more. Avoid buying oversized items and don’t feel like you need to get every single item on those “college dorm essentials” lists.

Think of the things you already use in your daily life and use that as a guide for what you’ll need in college. If you find there is something you’re missing when you arrive, you can always pick it up after move-in day.

4. Create a College Dorm Checklist

Make a comprehensive list of what you need before you start shopping. When you’re in the store, don’t be tempted to spend just because something is cute or it seems like you’ll absolutely need it. You typically need much less than you think.

5. Take Inventory of What You Have

You may already own a bunch of things you need for your dorm room, such as a shower caddy or a small fan. Go around your room at home and take inventory of what you have so you can decide what to buy.

6. Assess the Laundry Situation

Before you purchase a laundry basket or bag, you may want to find out where the washing machines are located — are they in your dorm or across the quad? Based on the answer, you might choose a laundry bag over a basket or vice versa, and can avoid buying the wrong thing (and wasting money).

7. Use Coupons

Look for coupons in your local circulars as well as online when determining what to buy for college dorms. Check out coupon websites like RetailMeNot and Coupons.com, or use a browser extension like
Honey to snag the best deals.

8. Shop at Discount Stores

Why pay full price when you can go to a discount store and find exactly what you need for less? Check out places like Ross, HomeGoods, Marshalls, or Dollar Stores for deals on college shopping needs.

9. Look for All-in-One Sets

Complete sets — such as Bed-in-a-Bag, towel, dish, and toiletry sets — are often an excellent value compared to buying each item individually. Sets also make packing easier, since everything is essentially already packed. Just make sure you actually need everything (or most) of the items included in the set.

10. Sign Up for Target Circle

Another retailer that has a wide selection of items for dorm rooms is Target. People who sign up for their rewards program, Target Circle, can receive exclusive access to special discounts and promotions.

Recommended: How to Save Money in College – 20 Ways

11. Use Amazon Prime

Students can get a significant discount on an Amazon Prime membership, plus discounts on flights and free food delivery. You’ll also receive fast, free delivery on all your college dorm essentials.

12. Use a Cash-Back Credit Card

If shopping with a credit card, use one that offers cash-back. If you are searching for a credit card, try to find one that has no annual fee and a welcome bonus.

13. Don’t Buy the Cheapest Stuff

While it may be tempting to buy the cheapest dorm room items possible, buying flimsy things that will need to be replaced may not be cost-effective. Items will need to be sturdy enough to last you over the next four years or so. Even if you have to pay a little more up front, it’s going to be worth it if your stuff actually lasts until graduation.

14. Leave the Printer at Home

Some colleges offer free printing services as part of tuition. If that’s the case at your school, don’t worry about buying a printer.

15. Shop The Sales

Consider shopping when stores are running sales. This could be on shopping holidays like Labor Day and the Fourth of July, or in August when college kids are getting ready to head back to school.

16. Don’t Fall for the “Great for Dorms” Tags

Be wary of items labeled as ideal for dorms. These may be marked up and it may be possible to find a less-expensive counterpart that isn’t necessarily marketed for college dorm rooms.

17. Do Price Matching

Look into the prices of products at different stores to make sure you’re getting the best deal. If you find a lower price at another store, ask your preferred store if they will match the other deal. Many will.

18. Use Your College ID for Discounts

If you already have your student ID, you may be able to snag some bargains on college dorm essentials from some local stores. Keep your ID on you at all times when you’re out and about and shopping for the school year.

Recommended: 10 Money Management Tips for College Students

19. Create a Budget

Come up with a budget for your college dorm checklist and then stick to it. When you go shopping without a set college shopping budget, you could end up spending way too much.

20. Look for Hand-Me-Downs

Did your siblings go to college? How about your friends? They may have dorm room essentials they’re no longer using and would be happy to give them to you. Ask around and see if they have anything they’re willing to pass on before you spend money.

21. Check in With Your Roommate

If you coordinate with your roommate on things you need to buy, you can save money. For instance, maybe they’re willing to buy some cleaning supplies if you provide snacks or bring a vacuum.

Recommended: College Freshman Checklist for the Upcoming School Year

22. Try Thrift Stores

Check out your local thrift stores and hunt down bargains on dorm room essentials.

23. Buy on Facebook Marketplace

You can also find deals on Facebook Marketplace. Log on and search for deals near your home or college, or find sellers who are willing to ship your dorm room essentials to you.

24. Use Craigslist

When figuring out what to buy for college dorms, you might also check out Craigslist for local items for sale. Don’t be afraid to haggle to pay the prices you can actually afford for your college dorm stuff.

25. Shop with Cash Back Websites

Take a look at sites like Rakuten or Upromise that allow account holders to earn rewards on purchases. You can shop for dorm room items and earn cashback or other rewards on the items you were already planning to buy.

26. Use Gift Cards

Did you receive gift cards from family members and friends when you graduated from high school? Then put them towards your college dorm checklist so you don’t have to spend your own money on items.

Recommended: Top Gifts for College Students

27. Start a Registry

Your family and friends may want to contribute and purchase some of your dorm room essentials for you. Stores like Walmart, and Target make it easy to start a college dorm registry you can share with your loved ones.

28. Look for Free Shipping

Look for free shipping to avoid expensive shipping costs. If you’re going to college far away from home, double check that the stores you are ordering from offer free shipping to that location.

29. Wait to Shop

If you’re on the fence about some purchases, wait until you move into the dorm. This way you can avoid spending money on something you won’t actually use.

30. Rent Instead of Buying

Sometimes, colleges will offer you the chance to rent bigger ticket items, like a minifridge, for your dorm room. If you price it out, you may find this is cheaper than buying the item, especially if you split the rental cost with your roommate.

31. Shop With Friends

You might want to get a group of friends together to go shopping together. You can share tips and possibly get better deals by purchasing in bulk and splitting up what you buy.

32. Sign Up for Stores’ Email Lists

Stores send coupons, sale alerts, and more out to their mailing lists. Consider signing up for the mailing list for stores at which you plan to do a considerable amount of dorm room shopping.

33. Set Up Price Alerts

You can set up price alerts through tools like Droplist and CamelCamelCamel to find out when college dorm stuff is going on sale so you know when to purchase it.

Bonus Tip: Best Places to Buy College Stuff

When shopping for college dorm stuff, where you shop can have a big impact on how much you spend, whether you’re shopping online or in person. Here are a few stores that offer a variety of dorm room essentials, typically at competitive prices:

• Amazon

• Target

• Walmart

• Overstock

• Wayfair

• HomeGoods

• Marshalls

• TJ Maxx

• Ross

• The Container Store

• The Dollar Tree

• IKEA


💡 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

Shopping for college dorm room essentials can feel overwhelming, but things like making a list, creating a budget, shopping online with free shipping, and taking advantage of student discounts can help make it more manageable, and more affordable.

Another way to help with college expenses is to take advantage of any financial aid you are eligible for. You apply for aid simply by filling out the Free Application for Federal Student Aid (FAFSA) each year. Your financial aid package may include grants, scholarships, work-study, and federal loans, which can be used for tuition as well as other college expenses.

If you still have gaps in funding, you might also look into private student loans. These are available through banks, credit unions, and online lenders. Rates may be higher than federal loans, but you can often borrow up to the full cost of attendance. Just keep in mind that private loans may not offer the borrower protections — like income-based repayment plans and deferment or forbearance — that automatically come with federal student loans.

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

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

Photo credit: iStock/kali9

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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.

SOIS0823044

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Tuition-free college sounds like a fantasy. But at some colleges and universities, it is possible for students to qualify to attend without paying tuition costs.

Not all colleges offer free tuition, and some may require students who are receiving free tuition to maintain certain academic standards or meet other requirements. Other colleges may offer a reduced-tuition option for eligible students.

When considering that attending a four-year college can cost tens of thousands of dollars, the appeal of free tuition is obvious. Read on for more details about how free-tuition programs work and an overview of colleges that offer free or reduced tuition.

What Is Tuition-Free?

Yes, it’s true: There is a limited number of schools that offer free college tuition to students. There are also schools that offer free tuition if your parents earn less than a certain amount of money per year.

Keep in mind that offers of free college tuition often may not include other costs like books, fees, transportation, or room and board. Researching the total cost of education at your chosen institution will give you a complete picture of your financial obligation.

Still, tuition is, generally speaking, a huge cost — so not having to pay it could mean huge savings.

Why We Need Tuition-Free College

The answer to this question is probably pretty obvious: For many families, college is prohibitively expensive. Parents who want to foot the bill for their kids may feel stressed and guilty when they find they can’t afford the cost of college out of pocket, and students themselves may feel the repercussions of the exorbitant cost of school for decades.

Still, there are both pros and cons to consider when deciding whether a tuition-free university is right for you. Here are some things to consider.


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

The Pros of Free College Tuition

The first pro is the most obvious: You could save a lot of money. Maybe you had planned on taking out student loans to pay for school. Think of the financial freedom you could enjoy if you didn’t have to spend years paying off student loans after graduation.

Second, free tuition can help make college more accessible for low-income students. If your family can’t financially contribute to your education, and you aren’t willing or able to accumulate educational loan debt, free tuition programs can make college a possibility.

The Cons of Free College Tuition

Few colleges offer free tuition to all students, which means your options for schools may be more limited. Some tuition-free programs are competitive. A few of these programs are connected with the U.S. Military and require students to serve after graduation. A lot of the tuition-free colleges are small, private schools, and many are religion-based. You may want to consider whether these are environments you would enjoy for four years.

Because there are so few schools offering free tuition, attending school may require you to move further away from home. Depending on the student, this could be a pro or con.

Some schools have certain requirements for those who attend and/or receive free tuition, such as participating in a work-study program, maintaining a certain GPA, or living on campus.

Before you apply to a tuition-free program, you’ll want to consider all the pros and cons to decide if the program is right for you.

Recommended: What is the Average Cost of College Tuition?

Schools That Offer Free College Tuition to All Students

Here are 31 tuition-free colleges in the U.S.: 15 offer free tuition for all students, and 16 offer free tuition to students from low-income families.

Service Academies

The United States Air Force Academy (Colorado)

The Air Force Academy provides free tuition, room, board, and medical and dental benefits. Students must serve as an officer in the Air Force for at least eight years, and at least five of those years must be in active duty.

The United States Coast Guard Academy (New London, Connecticut)

The Coast Guard Academy offers students free tuition, room, and board. Students must serve as a Coast Guard officer for at least five years after graduation.

The United States Merchant Marine Academy (Nassau County, New York)

Midshipmen receive free tuition, uniforms, books, room, and board. Basic medical and dental care are also provided by the Academy’s Office of Health Services. However, any healthcare expenses that exceed the provided health plan will need to be covered. Students are also responsible for transportation during leave periods. The Academy recommends applying for student loans if you need help with these expenses. Service obligations after graduation may vary between five and eight years.

The United States Military Academy at West Point (West Point, New York)

Tuition, room, board, and medical and dental insurance are free for West Point students, and they also receive a monthly stipend. Incoming Plebes, as new students are called, have to pay a one-time fee of $8,400 to cover uniforms, books, and other equipment. Graduates are commissioned as Second Lieutenants in the Army. You must serve a minimum of eight years, though that obligation is a combination of Active Duty and Reserve.

The United States Naval Academy (Annapolis, Maryland)

The Navy covers students’ tuition, room, board, and medical and dental costs. In return, they must serve in active duty for at least five years after graduation.

Four-Year Schools

Alice Lloyd College (Pippa Passes, Kentucky)

This liberal arts college provides free tuition to residents of Central Appalachia , which spans five states including Kentucky, Ohio, Tennessee, Virginia, and West Virginia. Students are required to participate in the Student Work Program , which involves at least 10 hours per week and 160 hours per semester. They must cover expenses other than tuition.

Barclay College (Haviland, Kansas)

This Christian school provides a scholarship equal to the amount of tuition to students who live on campus. Students must cover the cost of room, board, or other fees.

Berea College (Berea, Kentucky)

Berea is a liberal arts school that provides free tuition to all students. In order to qualify, students must come from families with limited resources. The average annual family income of Berea students is less than $32,000. Students, however, pay some costs , including room, board, health and dental care, which add up to about $4,000 per semester. Almost all Berea students (96%) receive Pell Grants to cover those costs.

College of the Ozarks (Point Lookout, Missouri)

This Christian liberal arts college provides free tuition for full-time students, provided they participate in the work-study program, which involves 15 hours per week and two 40-hour workweeks per year. Room, board, fees, or books are not included.

Curtis Institute of Music (Philadelphia, Pennsylvania)

The conservatory provides free tuition to undergraduate and graduate students through merit-based scholarships. If students need financial assistance for other fees and living expenses, they can participate in the work-study program.

Macaulay Honors College at The City University of New York (New York City, New York)

The highly selective honors college is part of the City University of New York. It provides free tuition to New York state residents who are admitted to the program. Students must maintain a certain GPA during their time at Macaulay, and they are responsible for additional fees including covering room and board.

Warren Wilson College (Swannanoa, North Carolina)

Warren Wilson is a small, private liberal arts college in North Carolina. Students who qualify for federal and/or North Carolina state-based aid receive free tuition. You must be a North Carolina resident, enroll as a full-time student, live on campus, and participate in the work-study program. If you don’t qualify for free tuition at Warren Wilson, the school is known for providing generous scholarships.

Webb Institute (Glen Cove, New York)

This engineering college provides free tuition to all students and financial aid opportunities to cover additional fees. The school offers only one undergraduate degree: a dual Bachelor of Science in Naval Architecture and Marine Engineering.

Junior Colleges

Deep Springs College (Deep Springs, California)

This unique two-year college is located on a remote cattle ranch in California. Only 12 to 15 students are admitted each year, and tuition, room, and board are free. Students can apply for additional scholarships if they need help covering other expenses.

Williamson College of the Trades (Media, Pennsylvania)

This men’s vocational college teaches trades such as carpentry, power plant technology, and masonry. Each student receives the Williamson Scholarship, which is need-based and can be as high as $32,430, which is $140 shy of the school’s estimated costs for tuition, room, board, and annual fees.

Schools That Offer Free or Reduced Income-Based College Tuition

The following schools offer varying amounts of tuition assistance depending on a student’s family income level. Based on the information a student provides on the yearly Free Application for Federal Student Aid (FAFSA®), schools take into account both parent contributions and student contributions to determine financial need.

Recommended: SoFi FAFSA Guide

Offers of free tuition may sometimes mean that the parent contribution is equal to zero, but there may still be an expected student contribution.

Ivy League Schools

Brown University (Providence, Rhode Island)

Brown fully covers tuition for families earning $125,000 or less. In addition, students of families making less than $60,000 a year will receive scholarships that cover all expenses including tuition, room, board, and books. Students can apply for additional scholarships to help support other expenses. The university’s website specifies that student contribution expectations are set annually.

Columbia University (New York City, New York)

Students qualify to attend tuition-free if their parents earn less than $150,000 annually and have typical assets. For students coming from families who earn less than $66,000 annually, there is no expectation of parental financial contribution. All incoming first-year students are expected to pay $2,400, which is the minimum student contribution as part of their financial aid award.

Cornell University (Ithaca, New York)

Cornell guarantees no parental contribution and no loans for students whose families earn less than $60,000 per year and typical assets. For students from families with total annual income up to $75,000, the annual aid offers include grants and work-study only — students are not expected to need to take out loans.

Dartmouth College (Hanover, New Hampshire)

For students whose families earn less than $65,000 per year with typical assets, there’s no expectation of parental contribution, and the aid award does not include any loans. Students are expected to contribute toward their own expenses, but they can choose to take a loan if needed. The Dartmouth Scholarship provides free tuition for students from families with total incomes of $125,000 or less who possess typical assets.

Harvard University (Cambridge, Massachusetts)

Harvard’s website states that as of the 2023-24 school year, if a student’s family earns under $85,000 annually, parents won’t pay anything for tuition or other fees. If they earn between $85,000 and $150,000, families and students pay between zero and 10% of their income per year. A student may still qualify for financial aid if their family earns more than $150,000.

Princeton University (Princeton, New Jersey)

Princeton offers full tuition, room, and board for students whose parents earn less than $65,000 per year. After that, financial aid is offered on a tiered scale, with families earning between $65,000 and $160,000 receiving full tuition and a portion of room and board fees.

University of Pennsylvania (Philadelphia, Pennsylvania)

Students from families with incomes less than $75,000 (and typical assets) receive financial aid packages that cover tuition, fees, room, and board. UPenn states they are also eligible for additional benefits like laptop funding and summer opportunity funds. Students from families with incomes between $75,000 and $140,000 (and typical assets) receive financial aid packages that cover at least tuition. Students from families with incomes higher than $140,000 may be eligible to receive aid packages that are greater than half of tuition. Penn emphasizes that it’s committed to meeting 100% of demonstrated financial needs with grant-based aid.

Yale University (New Haven, Connecticut)

Yale expects zero parent contribution for students whose families earn less than $75,000 per year and have typical assets. Students from families who earn between $75,000 and $200,000 (with typical assets) contribute a percentage of their annual income towards their child’s education, on a sliding scale that begins at 1% and moves toward 20%.

Other Elite Schools

Duke University (Durham, North Carolina)

Beginning with the fall 2023 semester, Duke will provide full tuition grants for undergraduate students from North Carolina and South Carolina whose family incomes are $150,000 or less. For North and South Carolina residents, students whose families earn $65,000 or less will receive full tuition, plus financial assistance for housing, meals, and other campus expenses, and there’s no expectation they will need to take out loans.

For families who earn under $60,000 annually, Duke does not require any parental financial contribution. First-year students are expected to make a minimum contribution of $2,600 regardless of income.

Massachusetts Institute of Technology, or MIT (Cambridge, Massachusetts)

MIT ensures scholarship funding for students whose family income is less than $140,000 (plus typical assets) so most can attend tuition-free. Most students whose families earn less than $65,000 receive aid to cover tuition, fees, housing, and some dining costs.

Rice University (Houston, Texas)

Students from families who earn less than $75,000 annually can attend Rice with an aid package that covers tuition, fees, room and board. Students from families with annual incomes between $75,000 and $140,000 are awarded full-tuition scholarships, and students from families earning between $140,000 and $200,000 will receive scholarships covering at least half of their tuition.

Stanford University (Stanford, California)

Stanford does not expect parental contribution toward educational costs for students whose parents earn a total annual income below $100,000 and typical assets. Students are expected to contribute toward their own expenses — usually around $5,000 — from their summer income, part-time work during the school year, and their own savings. Students from families who earn less than $150,000 per year plus typical assets can typically attend Stanford tuition-free.

Texas A&M University (College Station, Texas)

As of fall 2023, Texas A&M will cover both tuition and fees for students whose family income is $60,000 or less. Beginning in the fall semester of 2021, families who earn more than $60,000 but less than $130,000 qualify for scholarships or grants, ranging from $500-$1,500 based on income and financial need.

University of Chicago (Chicago, Illinois)

If your family’s adjusted gross income is less than $125,000, you’re eligible to receive free tuition to the University of Chicago. If your family’s AGI is less than $60,000, the school will also cover room, board, and other fees.

University of North Carolina (17 campuses across North Carolina)

As of fall 2024, UNC will cover tuition and mandatory fees for North Carolina students whose families earn less than $80,000 annually and have typical assets. Students from families with a total income that is at or below 200% of the poverty guideline and who meet additional economic criteria to qualify can attend UNC debt-free thanks to the Carolina Covenant aid program.

Vanderbilt University (Nashville, Tennessee)

Vanderbilt’s financial aid program is ranked number one by Princeton Review in 2023. Instead, Vanderbilt claims to meet 100% of families’ demonstrated financial need (through grants and a “reasonable work expectation”) based on the FAFSA and they do not use income bands to determine who receives aid. Vanderbilt’s financial aid packages do not include student loans.

Financing Your Education If You Don’t Qualify For Free Tuition

Not all students will qualify for or attend a school that offers free tuition. There are several options for financing college.

Tuition Payment Plans

Students and their parents may be able to take advantage of a tuition payment plan, which allows you to break up the cost of tuition, room, and board, over the course of a semester or year.

Scholarships and Grants

Scholarships and grants are often referred to as “gift aid,” because you don’t typically have to pay back scholarships or grant money after graduation as you do with student loans.

Scholarships are often offered based on merit, while grants are typically based on financial need. Gift aid can come from different types of institutions — from your college to local community organizations to large corporations.

Recommended: A Guide to Unclaimed Scholarships and Grants

Student Loans

Unlike scholarships and grants, you do have to repay student loans upon leaving school or graduating. Student loans are split into two broad categories: federal and private loans.

Federal student loans are disbursed by the government, which sets fixed rules about repayment and interest rates. You apply for these loans by filling out the FAFSA.

Private financial institutions may provide private student loans. Each private loan company sets its own repayment requirements and determines their own interest rates. You apply for these loans directly through the lender.

Private student loans are generally considered as an option only after all other sources of aid have been exhausted. This is because they lack the same borrower protections as federal student loans, such as income-driven repayment plans or the option to pursue Public Service Loan Forgiveness.


💡 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

There are a number of schools that offer free tuition plans or substantial financial assistance to students. Free tuition programs can make higher education more accessible to lower-income students. As mentioned, some schools may have requirements around work-study, academics, or living on campus, in order for students to qualify for free or reduced tuition.

Students who aren’t enrolled in a school that offers free tuition have a few options for financing their education including savings, federal financial aid, scholarships, and federal student loans.

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

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

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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. SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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.

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.

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

SOIS0823053 Read more

College is expensive, with the yearly cost of attendance at some private schools now topping $75,000. Looking at these numbers, you may wonder how you will ever possibly afford to send your kids to college.

But before you get too disheartened, it’s important to understand that a college’s published “sticker price” is often very different from what you actually have to pay (known as the net price). What’s more, just putting a small amount of money aside each month in a college fund can add up to a significant sum over time, especially if you take advantage of a tax-advantaged college savings account.

Read on to learn key things about how to save for college — from estimating how much you need to set aside to picking the right college saving fund.

Determining the Cost of College for Your Children

Tuition costs vary widely, depending on the type of school your child wants to attend, the type of degree they’ll earn (bachelor’s or associate), and even geographic location.

According to the College Board, the average annual college tuition costs for the 2022-23 school year were:

•   $10,940: public four-year in-state (a 1.8% increase from 2021-21)

•   $28,240: public four-year out-of-state (a 2.2% increase from 2021-22)

•   $39,400 : private nonprofit four-year (a 3.5% increase from 2021-22)

•   $3,860: public two-year in-district (a 1.6% increase from 2021-22)

The College Board also studied the annual, inflation-adjusted change in college tuition and fees over the last decade:

•   -1%: four-year public schools

•   -4%: two-year public schools

•   +6%: four-year private (nonprofit) schools

If your kids are young, you may wonder how much college will cost when it’s time for them to head off. Fortunately, there are many online calculators that can help you figure this out, taking factors like your child’s age, the type of school you expect your child to attend, and the expected rise in the cost of college into account.

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

Net Price vs. Sticker Price

Every college and university, private or public, lists a sticker price, which is also known as the cost of attendance (COA). This price includes tuition, fees, room and board, books, supplies, and miscellaneous expenses.

The net price, on the other hand, is what a student would actually pay, after factoring in any financial aid provided by the college and the federal government.

Financial aid is based on your family’s income, as well as the student’s academic achievement. Aid is offered in the form of grants, scholarships, work-study, and sometimes federal student loans. Schools offer aid based on financial need, a student’s “merit,” or a combination.

When you fill out the Free Application for Federal Student Aid (FAFSA), you will receive a Student Aid Index, or SAI. (Previously, this was called the Estimated Family Contribution, or EFC.) Colleges use this number to determine the amount of financial aid they award to accepted students. Typically, colleges come up with a financial aid package to help bridge the gap between the school’s sticker price and what your family can afford to pay.

Indeed, sometimes colleges with the highest sticker price end up costing less than a college with a much lower sticker price.

Recommended: How to Start Saving for Your Child’s College Tuition

Using a Net Price Calculator

Fortunately, you can get an idea of what the net price will be for a particular college before you apply by using the government’s net price calculator. This tool can help students and their families get a better idea of the cost of college, after subtracting scholarships, grants, and other financial aid.

Keep in mind, though, that the net price calculator is going to require specific details about your income and assets, so the more transparent you are regarding your personal finances, the more precise your calculation is likely to be.

When is a Good Time to Start Saving for Your Child’s Education?

Generally, the sooner the better. In fact, it can be wise to set up and start making small monthly contributions to a college savings fund soon after your child is born.

For some familes, however, it may not be possible to start saving that early. It’s equally important to pay attention to your other expenses and family’s needs. For example, you may want to prioritize building an emergency and paying off expensive credit card debt over saving for college. It’s also a good idea to make sure you’re on track with retirement savings. At the end of the day, students are able to get loans for an education but it’s not possible to take out loans to fund retirement.

Some Options for Saving

529 Plan

A 529 education savings plan is an investment account that can be used to save for the beneficiary’s qualified education expenses. The funds can be used to pay for higher education or private elementary or high schools. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.

All 529 plans are set up at the state level. However, you don’t have to be a resident of a particular state to enroll in its plan.

If your child decides not to go to school, it’s possible to roll the account over into the name of another family member. If the funds aren’t used for education-related expenses, there may be taxes and penalties.

Family members and friends can also contribute to a child’s college savings plan. They may choose to make deposits to an existing 529 account or set up one themselves, naming a beneficiary of their choice.

Some 529 savings plans offer an age-based investment option to automatically adjust the risk of the investment strategy as the beneficiary gets older. This type of investment approach might be similar to how a target date fund works in your retirement plan.

Regular Savings Accounts

You can also save for your child’s college tuition using a savings account at a traditional bank, credit union, or online bank. Just keep in mind that interest rates, even for high-yield savings accounts, tend to be relatively low. Plus, savings accounts don’t offer the tax advantages you can get with some other college savings vehicles.

It may be difficult to reach education financing goals through a traditional savings account alone since the interest rate might not keep pace with the inflation of college expenses.

Roth IRAs

Although generally used for retirement savings, a Roth IRA can be used to pay for the cost of college. Contributions to a Roth IRA are made with after-tax dollars but earnings grow tax-free.

Generally, to withdraw the earnings from an IRA without paying a penalty (or taxes), the account holder needs to be at least 59 ½ years old. However, if you made the first contribution to your Roth IRA at least five years before, you can also withdraw the growth penalty-free for qualified education expenses, including tuition, books, and supplies.

Keep in mind that, while there may not be an early withdrawal fee, the earnings withdrawn may still be subject to income tax.

Other Options to Pay for College

Sometimes saving alone isn’t enough to cover the cost of college. In that case, there are other funding options available that could help students and their families pay for college.

Private Scholarships

Scholarships are essential free money for college because you don’t have to pay them back. Scholarships are typically merit-based and are offered through a variety of organizations and institutions, including nonprofits, corporations, and even directly from universities and colleges. In some cases, scholarships are awarded on the basis of nationality, ethnicity, or economic need. There are a number of searchable databases that compile different scholarship opportunities.

Federal Financial Aid

When you complete the FAFSA each year, you will become eligible for federal financial aid. This can include scholarships, grants, work-study, and federal student loans (which may be subsidized or unsubsidized).

Private Student Loans

If savings and financial aid aren’t enough to cover the full cost of college, you can fill in gaps using private student loans. These are available through private lenders, including banks, credit unions, and online lenders.

Loan limits vary from lender to lender, but you can often get up to the total cost of attendance, which gives you more borrowing power than with the federal government. Interest rates vary depending on the lender. Generally, borrowers (or cosigners) who have strong credit qualify for the lowest rates.

Keep in mind, though, that private loans may not offer the borrower protections — like income-based repayment plans and deferment or forbearance — that automatically come with federal student 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.

The Takeaway

College tuition can be a daunting expense. Setting up a dedicated account to save for college tuition can help make the process much more manageable. There are accounts, like 529 plans, that are designed specifically to pay for educational expenses.

In addition to savings, students and their families may rely on scholarships, grants, federal student loans, or even private student loans to pay for tuition and other educational expenses.

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

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

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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.

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

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While college is a good option for many people, it isn’t for everyone — and not going to a four year college doesn’t mean you can’t have a meaningful career.

More people than ever before have a college degree, but a four-year program isn’t the only way to be successful. Even employers are realizing that there are many skills that can’t be captured in a degree program. In fact, some major tech companies, including Google and Apple, no longer require applicants to have a four-year degree for some of their positions.

There are certain jobs for which you need a college degree, like an electrical engineer, marketing manager, or teacher, but there are plenty of careers out there that don’t require additional degrees.

Reasons You Should Not Go To College

There are a number of valid reasons to delay college — or put it off entirely. Here are some to consider:

•   You’re not excited about your options. Maybe you didn’t get into the schools you expected to or you’re having second thoughts when you try to imagine yourself attending the schools you did get into. If the thought of college fills you with dread or doubt rather than excitement, taking a year off to reassess your options can be a good strategy.

•   You’re unsure what career you are interested in pursuing. You may want to explore different options by being exposed to college-level courses at a community college, or spend time volunteering, working, or traveling.

•   You’re already working. If you already have a job, you may be wanting to lean into your current job or save money to go to school in a few years.

•   You’re exploring non-degree avenues. There are many high-paying trades that don’t require a degree but may require on-the-job experience or an apprenticeship.

•   You have a plan for a gap year. Some people like to take a year to travel, work, or otherwise take a break in between high school and college to further explore their identity and what they want to do in the future.

•   You feel you’re going to college only to please your family. If you feel pressured to go to college, it may be a sign that college isn’t the right option for you, at least right now.

•   You have essential family obligations. Some students need to help their families and may not be able to take time off to go to school. These students may consider community college or a part-time degree program. Speaking with your current high school counselor may help you find ways to juggle multiple responsibilities.

•   You want to take time to pursue a talent. From sports to the performing arts to a creative path, some people choose to explore a talent more seriously, focusing time, energy, and resources prior to going to college. This can be a decision you make with the help of your family and any coaches or teachers.

Reasons You Should Go To College

College can be a great time to grow and learn and, for some, it’s a natural step. Here are some other reasons why college may make sense:

•   You’re excited and realistic about college. You recognize college may have ups and downs but feel confident that college feels “right” as your next step — not just something your family or teachers expect from you.

•   A college degree will help you achieve your career goals. You’ve done your research and/or talked with alums and people working in your targeted field and feel confident that college makes sense for your career goals.

•   College fits into your overall financial plan. You have a sense of how much college will cost and a plan for how you will pay for it, which might include a combination of financial aid, savings, and federal or private student loans. You also want to make sure you will be able to manage any student loan payments after you graduate.

•   You have a ‘Plan B’ in case you realize that college isn’t the right fit. Sometimes people realize one semester into school that college may not be what they need at that moment in their lives. It can be helpful to talk about what this may be, so that you don’t feel trapped if school doesn’t feel like it’s a good fit.

Source: National Center for Education Statistics

Alternatives to a College Degree

Just because you aren’t interested in a four-year degree doesn’t mean you need to forgo higher education entirely. Alternative educational models, like trade schools and community colleges, offer many practical certification and two-year associate degree programs that can help you get ahead.

It is important to know that even if you’re not planning to pursue a four-year degree, you still have options when it comes to creating a career that is right for you.


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

Trade School

Sometimes known as technical or vocational schools, trade schools can prepare you for a specific job, such as a dental hygienist, electrician, cosmetologist, or web developer. These programs are normally much shorter than four years, and certain programs may allow you to finish in only a few months. There are both public and private trade schools.

Trade schools don’t award bachelor’s degrees. Instead, when you graduate from a trade school, you typically receive a diploma or certificate indicating that you are trained and certified to perform a specific job. Some trade school programs do offer associate degrees, which are the same type of degrees offered by many community colleges.

Recommended: How to Know if Trade School is Right for You

Community College

As mentioned above, community colleges usually offer two-year degrees called associate degrees. These degrees can either stand alone or be a stepping stone to obtaining a bachelor’s degree at a four-year school.

Indeed, many community colleges offer career preparation programs that are designed to help students jump into the workforce without the need for a bachelor’s degree.

Community college could also be a great way to test out college life and see if you want to continue pursuing higher education. They tend to be much less expensive than four-year universities, which means it won’t cost you an arm and a leg before you decide if higher education is right for you.

Apprenticeships

Apprenticeships are paid positions designed to teach the apprentice about a specific job or industry. They can help you learn how to use industry-specific tools and technologies and help you develop your skills over a period of time. This may be in fields as diverse as plumbing to transportation engineering to baking.

Apprenticeships can be a win-win for employers and employees because they allow those starting out to begin working (and earning a paycheck) immediately, and they help employers fill vacant jobs.

Recommended: A Complete Guide to Apprenticeships

Certificate Programs

Similar and sometimes overlapping with trade schools, certificate programs offer specialized training in a specific area. This may include coding, cybersecurity, yoga, fitness, getting a commercial driver’s license (CDL) or other areas where specialized knowledge may be a prerequisite. These certificates may also be helpful in making job seekers eligible for positions with higher starting salaries.

Recommended: Are Coding Bootcamps Worth the Money?

Taking a Gap Year

A gap year is when a student takes a year off between high school and college. Some colleges allow accepted students to defer for a year, holding a place for them in the next year’s incoming class. Some people create a travel itinerary, others may work or volunteer for the year. There are some gap year programs that create opportunities for students, but keep in mind that some programs may be costly.

Starting a Business

If you are already passionate about — and have a lot of knowledge about — a specific field or industry, you might consider skipping college altogether and jumping into that business.

Starting your own business takes a lot of hard work, but it could mean that you get to be your own boss and work in an industry you love. And because you could quickly become an expert on the products or services you provide, you aren’t necessarily at a disadvantage because you lack a degree.

If You Do Go the College Route

There are plenty of options if you choose not to attend a four-year college. However, there are also options within the world of college, including the type of college you choose, the major you decide to pursue, and how you pay for college.

There’s no denying that college can be expensive. In the 2022-2023 school year, the average cost for tuition and fees at an in-state college was $10,423, while the average sticker price for a private college was $39,723. And, these numbers don’t include room and board. This can be a big financial commitment, especially if you are on the fence about pursuing higher education.

That’s why it can be a good idea to begin creating a payment strategy early. A great first step is to fill out the Free Application for Federal Student Aid (FAFSA) to see how much federal aid — including scholarships, grants, work-study, and federal student loans — you qualify for.

Federal student loans do have limits on how much a student can borrow each year they are enrolled in school. Some students may need additional funds to bridge the gap. In that case, some may consider borrowing a student loan from a private lender, such as a bank or credit union, to help cover college costs.

In general, it can be a smart idea to tap all your federal loan and grant options before you consider private student loans. That’s because federal loans offer some protections, such as deferment options, that private loans may not. However, private loans can cover up to 100% of the cost of attendance, including money to pay for books, room and board, and personal expenses.


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

The Takeaway

College can lead students on a new career path, but depending on your goals and other factors, may not be necessary. Some students may choose to pursue a trade or vocational program instead of a four-year degree, while others may simply want to wait a year or so to earn and save more money to cover the cost of going to 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.

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

---

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.

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