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A personal loan can be a relatively low-interest way to access a lump sum of cash, which is usually paid back in monthly payments. This kind of unsecured installment loan (meaning you don’t need to put up collateral) can be used for a variety of purposes. For example, you might pay off high-interest credit card debt, fund a home renovation, or finance a family reunion trip to the beach next summer.

Here, you’ll learn the full story on one popular option, a $10,000 personal loan.

Reasons to Get a $10,000 Personal Loan

Many prospective borrowers are attracted to personal loans because of the freedom and flexibility that they offer compared to some alternatives. Reasons to get a $10,000 loan might include the following:

•   To pay off an unforeseen expense, such as costly car repairs or a major medical bill. (A borrower might use a lesser sum, like a $5,000 personal loan, in some situations.)

•   To consolidate other debts. For example, assume you have a $10,000 balance between two credit cards, each having an interest rate of over 20%. You might be able to secure a $10,000 personal loan with a significantly lower interest rate to pay off that debt.

•   To pay for a home renovation.

•   To start a side hustle.

•   To cover wedding expenses, such as venue costs, catering, or attire, through a wedding loan.

•   Any other legal need for a cash infusion.

Pros and Cons of Taking Out a $10,000 Personal Loan

Consider the pros and cons of taking out a $10,000 personal loan as you explore this option.

$10,000 Personal Loan Terms

Depending on the lender, the repayment periods typically range from 12 months to 84 months.

You can shop around for a personal loan with terms that allow for affordable monthly payments. Keep in mind that a longer term likely means you will pay more interest over the life of the loan.

When calculating the overall costs of a personal loan, consider such factors as the principal amount borrowed, interest rate, fees, and the loan term. You might use an online personal loan calculator to help you tally up costs.

Note: Also keep in mind that some personal loans are secured loans, meaning that you put up collateral which the lender can take ownership of if you default on the loan. Be clear on whether the loan you seek is secured or unsecured.

$10,000 Personal Loan Monthly Payments

Personal loans are typically repaid over a multi-year term through monthly payments. The cost of the monthly payments is influenced by the interest rate that applies to the specific loan. Interest rates are essentially the fees charged by the lender for providing the loan.

The lowest interest rates are typically offered to consumers with a good to excellent credit history and may also be influenced based on other factors including their current income. Generally speaking, lenders charge lower interest rates if they think an applicant is likely to repay their loan in a timely way.

The following chart shows the impact that interest rates have on the monthly payment and also how choosing a longer-term loan can increase the overall cost of the loan.

Personal loan interest rates are generally fixed, which means the monthly payment will remain the same. Variable-rate personal loans are offered by some lenders, and payments will be influenced by market conditions.

Recommended: $20,000 Personal Loan Rates and Requirements

$10,000 Personal Loan Fees

In addition to interest, some lenders charge origination fees that will also increase the overall cost of the loan.

The combination of the interest rate and any applicable fees is the annual percentage rate (APR) of the loan. Calculating the APR is necessary for determining the true cost of the loan. Recent Federal Reserve data shows the average APR of a 24-month personal loan to be 11.14%.

It’s important for applicants to closely review the terms of any potential loan agreement. For example, a lender may charge a late fee when payments are not received on time, and some may have prepayment penalties that apply if a borrower pays off the loan ahead of schedule.

Recommended: 39 Passive Income Ideas to Help You Make Money

What Credit Score Do You Need To Get a $10,000 Personal Loan?

Your credit score is a three-digit number that a lender checks to assess your creditworthiness. The most popular credit scoring systems (like FICO® Score) usually range from 300 to 850. Your credit score is calculated largely based on your credit history because past consumer behavior tends to predict the future.

Here are the usual credit score ranges according to FICO:

•   300 to 579: Poor

•   580 to 669: Fair

•   670 to 739: Good

•   740 to 799: Very good

•   800 to 850: Excellent or exceptional

There’s no single credit score needed for getting a personal loan. Keep in mind that a $10k loan is close to the average personal loan amount (the current average is $11,724). Rates may vary depending on the size of your loan.

Can You Get a $10,000 Personal Loan With Bad Credit?

In general, you need a good credit score to qualify for a personal loan. If you have bad credit (say, in the poor or fair range), you might still be able to secure a loan, but potentially at a higher interest rate. If your credit score is in the very good or exceptional range, you may qualify for even more favorable interest rates and terms.

If a personal loan with bad credit is more expensive than you like, you might look into personal loan alternatives, such as a salary advance or using credit cards.

How Long Does It Take to Get a $10,000 Personal Loan?

Personal loans are known for offering fast processing — or funding — times, particularly among online lenders. Many lenders today offer same-day or next-day funding of personal loans after approval. Applicants should be properly prepared with the documentation necessary to confirm their identity, address, and income, as well as current bank statements.

Requirements for a $10,000 Personal Loan

Requirements will vary across lenders. However, qualifying for a $10,000 personal loan typically requires a credit score in the good range, an active checking account, and a steady, verifiable income, among other factors.

Top $10,000 Personal Loan Lenders

Here’s a look at some of the current leading personal loan lenders, along with interest rate ranges.

How to Compare $10,000 Loan Offers

When comparing offers for a $10,000 personal loan, keep these tips in mind:

•  Focus on the APR vs. simply the interest rate to get a better idea of the actual costs of borrowing, with fees included.

•  Look at the total cost of the loan over its term. You’ll see that a longer term typically reduces your monthly payment but means you pay more interest over the life of the loan.

•  Do look into the fees involved, such as origination and late fees, as well as prepayment penalties. These can make a significant difference in some situations, so you want to take out a loan with a “no surprises” understanding.

Tips for Getting Approved for a $10,000 Loan

If you’re thinking about applying for a $10K personal loan, here are some ways to help improve your odds of success. You’ll see that understanding and optimizing your creditworthiness can be an important step.

•  Work on maintaining or building a credit score that’s at least in the good range, if not very good or exceptional for the most favorable terms.

•  Check your credit report for any errors and work to correct any that you find.

•  Calculate your debt-to-income ratio, or DTI, and focus on keeping it below 36% for the best odds of approval.

•  Only borrow how much you actually need, since applications for higher sums can face a more stringent approval process.

•  Gather all of your documentation (such as pay stubs, tax returns, and bank statements) needed for personal loan approval in advance

•  Prequalify for a loan and compare offers carefully.

The Takeaway

If you’re considering a personal loan, it’s a good idea to take the time to compare the various options available and make sure you understand the terms and costs of a loan. Those with lower credit scores are likely to encounter fewer choices and higher interest rates and fees, while those with a strong financial profile may have a number of solid offers to choose among.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is the monthly payment on a $10,000 personal loan?

The monthly payment on a $10,000 personal loan will fluctuate based on your credit score, the loan’s interest rate and fees, and the term of the loan, among other factors.

Do I need at least a 620 credit score to get a $10,000 loan?

There is no formal minimum credit score needed for getting a personal loan. Different minimums may apply across the various institutions that offer personal loans in the $10,000 range. Those with a 640 or higher credit score are likely to find a number of options for a $10,000 personal loan; those with higher scores may have more options as well as more favorable terms.

How long will it take to get a $10,000 loan?

Fast-funding options including same-day and next-day loans are common for 10,000 dollar loans. As long as you are prepared with some basic documentation that verifies your identity, address, and income, rapid approval and funding may be available.

Photo credit: iStock/Edwin Tan

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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.

SOPL0124045

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

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

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

What Are Nursing School Loans?

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

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

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

How Nursing School Costs Differ from Other Programs

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

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

Types of Loans Available for Nursing School Students

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

Direct Subsidized Loans

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

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

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

Direct Unsubsidized Loans

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

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

Direct PLUS Loans

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

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

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

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

Private Student Loans

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

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

State-Based Loan Programs for Nursing Students

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

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

Pros and Cons of Loans for Nursing School

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

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

Understanding Interest Accrual and Repayment Flexibility

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

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

Applying for Nursing Student Loans

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

Comparing Loans

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

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

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

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

Applying for Loans

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

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

After Applying

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

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

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

Setting Up Repayment While in School

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

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

Alternative Financing Options for Nursing Students

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

Personal Loans

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

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

Grants

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

Employer Sponsorship

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

Nursing School Loan Repayment Assistance Programs (LRAPs)

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

•  Nurse Corps Loan Repayment Program

•  National Health Service Corps Loan Repayment Program

•  NHSC Rural Community Loan Repayment Program

•  NHSC Students to Service Loan Repayment Program

Military Programs for Nursing Education Funding

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

Private Student Loans

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

The Takeaway

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

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

FAQ

How do nursing students get loans?

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

Can nursing school loans be forgiven?

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

What is the average student loan amount for a nurse?

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

Are there special programs for nurses working in underserved areas?

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

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

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

Photo credit: iStock/erdikocak

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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

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With the high cost of a college education, affording college with no money set aside might feel impossible. However, there are many forms of financial aid — whether from federal, state, school, or private organizations — that can help you pay for your college degree.

Learning how to pay for college with no money might require approaching your higher education costs from different angles. This includes cutting your college expenses, finding alternate financial aid sources, or both. Keep reading for specific ways to pay for college with no money saved.

Average Cost of College

How much you can expect to pay for college varies, depending on the school you choose, your degree level, whether you’re an in-state resident, and other factors.

According to the College Board, the average cost of tuition and fees for a full-time, in-state undergraduate student attending a public four-year school in 2025-26 is $11,950. Out-of-state students can expect to pay an average of $31,880 in tuition and fees for the same academic year. And students attending a nonprofit four-year private institution are charged an average $45,000 in tuition and fees.

Keep in mind that these figures are exclusively for tuition and fees. This cost doesn’t account for additional expenses that college students often face, like textbooks, school supplies, housing, and transportation.

Understanding the Total Cost of Attendance

Cost of attendance (COA) includes more than just tuition — it also encompasses fees, textbooks, housing, transportation, and personal expenses. By looking at the full picture, students will have a clearer idea of what they’ll actually need to cover each semester.

Many colleges publish estimated COA figures on their websites to help students plan, but it’s still important to review your own lifestyle, commute, and academic program to get the most accurate estimate.

How to Pay for College With No Money

The cost of being a college student can seem overwhelming when you don’t have savings available to directly pay for school.

If you want to go to college but have no money or you’re a parent who’s helping your child pay for college, here are a few ideas on how to go to college with no money saved.

Fill Out FAFSA® to See if You Qualify for Financial Aid

If you’re paying for college with no money saved, the first thing you’ll want to do is submit a Free Application for Federal Student Aid, also known as the FAFSA®.

The FAFSA determines if you qualify for federal financial aid. You can see if you’re eligible for the Pell Grant, Federal Work-Study, and Direct Loans. The information on your FAFSA is also commonly used to determine your eligibility for state, school, and other privately sponsored aid.

Grants

In addition to federal grants for college, search for grants from your state and school for additional funding. Grant funds generally don’t need to be repaid as long as you meet the grant program’s requirements.

Some organizations — nonprofit and for-profit — also host their own need- or merit-based grant programs for college students.

Scholarships

Scholarships are considered gift aid, meaning they typically don’t need to be repaid. There are a multitude of scholarship opportunities that are awarded due to financial need or merit.

You can search for scholarships online from various companies, organizations, community groups, and more. Ask your school’s financial aid office for help finding these advantageous sources of aid.

Negotiate With the College for More Aid

If your financial circumstances have changed since you submitted your FAFSA, request a professional judgment to have your school reevaluate your financial aid package.

Not all schools accept this request, but if yours does, this process gives you a chance to provide additional documentation that’s used to recalculate your financial need.

Start With Community College and Transfer

If you want to go to college but have no money, one option is to attend a community college for the first two years of your college education. According to the same College Board report, the average 2025-26 cost for tuition and fees at a local two-year college is $4,150 for a full-time undergraduate student.

After completing your general education courses at a junior college, you can then transfer to a four-year school.

Choose a Less Expensive University

The type of school you choose can also help you afford college if you don’t have money saved. As mentioned earlier, the cost of college varies widely between a public versus private institution.

Additionally, choosing a public school in your home state generally costs less than attending an out-of-state school. When reviewing cost, be sure to factor in the scholarships and grants you may qualify for.

Live at Home

Room and board is one of the largest expenses facing students. Instead of having to account for costs toward a dorm room or off-campus housing, living at home and commuting to school can help you keep expenses lower.

Talk with your parents about whether living at home while you earn your degree is an option.

Study Abroad

Some students may explore pursuing their degree abroad as one solution to cut expenses. Thanks to government subsidies in some countries, attending university abroad can be less expensive than staying in the U.S. In some cases, American students may even qualify for free tuition.

Work-Study

The Federal Work-Study program allows you to earn financial aid with part-time work through an employer partner. These jobs are often on campus and offer flexible hours that fit around a student’s class schedule.

Federal Student Loans

If you need to borrow money for college, a federal student loan is typically the first choice for students. The Department of Education offers subsidized and unsubsidized federal loans to students. These loans need to be repaid.

Undergraduate students might be eligible for subsidized federal loans in which the government pays for accrued interest while you’re enrolled in school, during your grace period, and while in deferment. These are awarded based on financial need.

Recommended: Types of Federal Student Loans

Private Student Loans

After exhausting all of your federal student aid opportunities, students may apply for a private student loan if they need additional cash to pay for college.

Private student loan rates and terms differ from federal loans. Generally, private student loans don’t offer borrowers income-driven repayment plans or flexible deferment or forbearance terms when you’re having trouble repaying your loan.

Also, loan details differ between lenders. To find a competitive private student loan, compare rates from a handful of lenders before choosing one.

Working Part-Time

To supplement the financial aid you’ve received, consider working part-time while you’re enrolled in school. Funds from a part-time job can help you pay for day-to-day costs as a student, like groceries, transportation, or general living expenses while you’re studying for your degree.

Borrowing From Family Members

If you have a money gap between the financial aid you’ve received and your college expenses, you could consider asking a close family member if they’re willing to offer you a family loan.

Depending on your family’s financial resources and your relationship with your parents or relatives, you might have access to this alternative low-interest financing option. When borrowing money from family, be clear about how much you need, how the funds will be used, and expectations regarding repayment after you leave school.

Look Into Tuition Reimbursement From Employers

Tuition reimbursement from employers can be a valuable way to reduce college costs if you’re working while pursuing your degree. Many companies offer financial assistance for approved courses or degree programs, often covering a portion of your tuition.

In exchange, you may need to maintain a certain GPA or agree to stay with the employer for a set period after completing your studies.

Explore State-Specific Financial Aid Programs

Many states offer their own financial aid programs to help residents afford college. These programs may include need-based grants, merit scholarships, tuition waivers, and specialized aid for high-demand fields. Because eligibility rules and award amounts vary widely by state, it’s essential to review your state’s higher education agency website and apply early.

Is College Right for You?

Attending a degree-granting, four-year college isn’t the only choice you have for furthering your education and career prospects. Enrolling in a trade school, seeking vocational training, or getting an apprenticeship can help you advance your skills for more job-focused opportunities.

Trade School

A trade school offers programs that teach students the hands-on skills for a technical or labor-based profession. Programs are typically shorter than traditional college degrees — often ranging from a few months to two years — and focus on practical skills needed for fields like plumbing, welding, automotive repair, healthcare, or cosmetology.

Vocational Training

Vocational schools provide students with the education to earn a certification or formal training quickly for service-oriented professions. Programs are typically shorter and more affordable, allowing students to enter the workforce quickly with specialized certifications or diplomas.

Apprenticeships and On-the-Job Training Options

Apprenticeships and on-the-job training programs provide a practical pathway to learn a trade or profession while earning a paycheck. Participants gain hands-on experience under the supervision of experienced professionals, often combining workplace training with classroom instruction.

These programs can lead to industry-recognized certifications or credentials, helping individuals build skills and advance their careers without accumulating traditional student debt.

Recommended: Guide to Student Loans for Certificate Programs

SoFi Private Student Loans

If you’ve decided that a traditional college education is for you, you might still need additional funds, despite exploring alternatives to afford college with no money.

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

Is there any way to go to college entirely for free?

Yes, but financial aid is highly variable and is determined based on your unique situation. Students might be eligible to enroll in college at no cost, depending on their financial need. Similarly, some students might be able to attend college for free based on merit, like with a full academic or athletic scholarship.

Is relying completely on student loans for college a good idea?

No, relying completely on student loans for college isn’t a good idea. To keep your student loan debt out of college as low as possible, it’s generally wise to seek out a mix of financial aid options. Prioritize aid that you don’t have to repay, like grants and scholarships, and use student loans as a last option when funding your college education.

Why is the cost of college so high in the US?

The high cost of college in the U.S. can be attributed to various factors. An increased demand for higher education and unrestrained administrative and facility costs have been cited as reasons for the ongoing rise of college costs.

What are the best options for paying for college with no savings?

The best options for paying for college with no savings include applying for federal aid via FAFSA, seeking grants and scholarships, participating in work-study programs, exploring state-specific financial aid, considering employer tuition reimbursement, and using affordable alternatives like community colleges, trade schools, or apprenticeships to reduce overall costs.

Can I get financial aid if my parents didn’t save for college?

Yes, you can still qualify for financial aid even if your parents didn’t save for college. Federal aid, state grants, and need-based scholarships consider income and financial circumstances, not just savings. Completing the FAFSA accurately helps determine eligibility for grants, work-study, and low-interest federal loans.

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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.

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A personal line of credit is a type of revolving credit line that can be used to pay for a variety of personal expenses. It works in a similar way to a credit card: A lender approves you for a specific credit limit, and you draw only what you need and pay interest only on the amount you use. This is different from a personal loan, which is a type of installment loan. With an installment loan, you receive a lump sum of money up front that must be repaid at specified intervals.

While both options allow you to borrow money, each comes with its own benefits and drawbacks. Continue reading for more information on personal lines of credit and when this type of financing may make the most financial sense.

What Is a Personal Line of Credit?

A personal line of credit is what’s known as a revolving credit vehicle. It’s similar to a credit card in that:

•  It has a maximum credit limit.

•  A minimum payment is required every month.

•  When the debt on the credit line is repaid, money can be withdrawn again.

Although a personal line of credit isn’t linked to a physical card, you can generally write checks, withdraw cash at an ATM, and transfer money into another account using the line. Generally speaking, the interest rates on a personal line of credit are lower than those on a credit card.

Personal lines of credit may be secured (requiring collateral) or unsecured (not requiring collateral). Whether secured or unsecured, some lines of credit require minimum payments of interest and principal, while others require only interest payments for a period of time, known as the draw period. That means that for a set period, you can draw money from your line of credit and need to make only interest payments during that time. After the draw period is over, the line of credit is no longer revolving (meaning, you can’t borrow against it anymore), and you’re typically required to make interest and principal payments.

Unlike personal loans, which tend to have fixed interest rates, a personal line of credit may have a variable rate during its draw period, then switch to a fixed rate once that period ends.

Recommended: Line of Credit vs. Revolving Credit

Where to Get a Personal Line of Credit

Personal lines of credit can be found at some banks, credit unions, and other financial institutions. However, not every lender offers them.

How to Get a Personal Line of Credit

The process for applying for a personal line of credit is usually similar to applying for other loans or credit cards. Lenders may accept applications online, in person, or over the phone, and specific application requirements may vary by lender.

Before formally applying, it’s a good idea to review your credit score and shop around at different lenders to compare the rates and terms you may qualify for. Many lenders will allow you to see if you prequalify, which may require a soft credit check, which won’t impact your credit score. Also be sure to evaluate any fees associated with the line of credit and review the draw period and repayment periods.

Once you’ve determined which loan you’d like to apply for, you’ll need to gather the required documentation (such as statements for proof of income). Your chosen lender will generally have a list of required documents. From there, you’ll fill out the application and wait for approval. At this stage, the lender will usually complete a hard credit inquiry which may temporarily impact your credit score.

When to Use a Personal Line of Credit

Personal lines of credit typically offer greater flexibility when it comes to accessing the loan and repaying it than other types of financing, such as a personal loan.

If you’re planning to do a home renovation, for example, you may not need a big chunk of money all at once. A line of credit allows you to access money over time to pay for things in dribs and drabs as you pick out the tile for your kitchen and your contractor finally gets around to installing it. This flexibility can reduce your interest charges because you are only borrowing money you plan to use immediately.

Another benefit of a line of credit is that you can pay it off and then typically borrow from it again. This can make it a good backup to have in case you suddenly experience an expensive emergency that you don’t want to put on your credit cards.

You may also be able to choose a line of credit with a draw period that allows you to only pay interest on the money borrowed for a period of time.

Awarded Best Online Personal Loan by NerdWallet.

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How a Personal Line of Credit Works

As we mentioned, personal lines of credit have a draw period and a repayment period. It’s important to understand how both work.

The draw period begins once you open a personal line of credit, and the funds are available for you to use as needed. You can borrow up to your credit limit, pay off the balance, and draw from it again. Your financial institution will likely send you a monthly bill, and you’ll need to make a minimum payment based on the amount you borrow, plus interest. (If you pay the balance in full each month, you may be able to avoid interest charges.)

The repayment period starts when the draw period ends. During this time, you won’t be able to borrow new funds. And you’ll likely be responsible for repaying the total amount you owe by the end of the repayment period.

Drawbacks to a Personal Line of Credit

One drawback is that unsecured lines of credit can be more difficult to qualify for than some other types of loans, such as a home equity line of credit (HELOC). This is because unsecured loans are generally more risky for the lender. Without collateral, the lender needs to be sure that the borrower has the ability to pay back their loan. That’s why for some, it may be easier to qualify for a HELOC (which uses your home as collateral) than a personal credit line. However, keep in mind that with a HELOC, you are taking on some additional risk by putting your house on the line.

Also, the flexibility that comes with a line of credit may be a double-edged sword. The ability to keep borrowing for an extended period of time could lead to feeling tempted to take on more debt or take longer to pay off debt… all of which could mean more interest charges over time.

Using a Personal Loan as a Personal Line of Credit Alternative

When comparing a personal line of credit vs. a personal loan, the major difference is that a personal loan is an installment loan. Like a personal line of credit, personal loans can be used to pay for nearly any personal expense. Borrowers receive a lump sum payment and pay back the loan in installments.

A personal loan may make more sense for borrowers who have a firm idea of their budget or a fixed expense, such as for medical bills, buying an engagement ring, or consolidating debt. Additionally, depending on creditworthiness, the average interest rate on a personal loan may be lower than that of a personal line of credit. Interest rates will vary by lender, so evaluate the options available to you.

Also compare any fees or penalties associated with the personal loan. If a personal loan has a prepayment penalty, you may not be able to benefit from paying off the personal loan early.

Recommended: Alternatives to Personal Loans

Other Personal Line of Credit Alternatives

•  HELOC: With a home equity line of credit, borrowers tap into the equity in their home to borrow a line of credit. This is a secured loan where the home functions as the collateral. This can help borrowers qualify for a more competitive interest rate than with an unsecured personal line of credit, but it also means that if the borrower has issues repaying the HELOC, their home is at risk.

•  Credit Card: In certain situations, a credit card may be used to help pay for emergency expenses. Be aware that credit cards generally have high interest rates — the average credit card interest rate was 24.04%, as of November 28, 2025.

•  Secured loans for a specific purpose: For example, if you are buying a car, you may be better off with a car loan over a personal line of credit or personal loan.

Personal Line of Credit vs Credit Card

A personal line of credit and a credit card both offer a pool of money you can borrow from and pay back over time. But there are key differences to keep in mind. Let’s take a closer look.

Flexibility and Usage

A credit card is designed for everyday convenience and can be a good fit for making small purchases like groceries, shopping, or dining out. To use, you just swipe or tap the card at a store or online checkout. Some credit cards may also earn cash back, points, or miles, which can be an added benefit.

A personal line of credit works more like a flexible bank loan. When you’re ready to use the funds, you might have the option to write a check, transfer the money to your bank account, or make a cash withdrawal. And unlike credit cards, PLOCs don’t typically earn rewards.

Interest Rate Differences

Credit cards tend to have higher interest rates than personal lines of credit. As mentioned, the average APR on credit cards is around 24.04% as of November 2025.

By comparison, the average APR on a personal line of credit is around 12.25%. Note that your credit score can impact the rate you receive for a personal line of credit. As a general rule, the stronger your credit score, the lower the rate you may qualify for.

The Takeaway

Personal lines of credit offer flexibility for borrowers because they are a revolving line of credit that functions similarly to a credit card. Borrowers can continue drawing on the line of credit for a set period of time to cover the cost of necessary expenses. For a one-time expense, however, you may be better off with a personal loan vs. a personal line of credit.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is the difference between a personal loan and a personal line of credit?

The biggest difference between a personal loan and a personal line of credit is that a personal loan is an installment loan. Borrowers receive a lump sum payment and pay back the loan in fixed monthly payments. A personal line of credit, on the other hand, lets you borrow up to a set limit, and you pay interest only on the funds you use.

Does a personal line of credit affect your credit score?

Yes, a personal line of credit impacts your credit score. Opening a PLOC can cause a temporary dip in your credit score, but if managed responsibly, it can help build your score over time.

Can you pay off and reuse a personal line of credit?

Yes. During the draw period, you repay the money you borrowed, and those funds become available for you to borrow again, up to your approved credit limit.

What are typical interest rates for personal lines of credit?

As of November 2025, the average interest rate for a personal line of credit is around 12.25%. However, the rate you receive will depend largely on your creditworthiness.

Is a personal line of credit secured or unsecured?

A personal line of credit can be either unsecured or secured, though most are unsecured.

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.

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If you already have a personal loan but need more funds, you may wonder if you can take out another one. Some lenders will approve you for a second personal loan if you stay under their maximum borrowing cap. You may also be able to get a new personal loan from a different lender, provided you meet their requirements. Already having a personal loan, however, could make it harder to get approved.

Read on to learn more about how many personal loans you can have at once, how stacking personal loans can impact your credit, and alternatives to consider.

Can You Have More Than One Personal Loan at Once?

Technically, there is no limit on how many personal loans you can have. Whether you can get approved for a second or third personal loan will depend on the lender and your qualifications as a borrower.

Some lenders limit the number of concurrent personal loans you can have to one or two. They might also restrict you to a maximum borrowing amount (such as $50,000) across all of the personal loans you hold with them.

If you’re maxed out with your current lender, you may be able to get a new personal loan with a different lender. Generally, lenders don’t reject applicants solely due to having an existing loan. However, they may decline approval if they feel you carry too much debt and might struggle to make an additional payment.

Does It Ever Make Sense to Have Multiple Loans?

There are some situations where it can make sense to have more than one personal loan. If you took out a loan to consolidate credit card debt and then got hit with an unexpected medical or car repair bill, for example, you may be better off getting a second personal loan rather than running up new and expensive credit card debt. Before taking out another personal loan, however, it’s worth checking to see if you might qualify for a lower-cost way to borrow money (more on that below).

If you’re looking to get another personal loan to bridge a gap between your spending and income, on the other hand, taking on additional debt could add to the problem. You may be better off looking at ways to reduce expenses and pay down your existing debt.

Pros and Cons of Taking Out Multiple Personal Loans

If you’re seriously considering taking out a second or third personal loan, it’s wise to familiarize yourself with the benefits and disadvantages of doing so.

Pros of Multiple Personal Loans

On the plus side, pros include:

•   Access to more cash

•   Often a quick approval and disbursement process

•   Ability to use loans for different purposes, such as debt consolidation and a home improvement project

•   Credit building, provided the debts are handled responsibly

Cons of Multiple Personal Loans

Next, consider the downsides of taking out multiple personal loans:

•   Spending more on interest

•   More stress on your budget, perhaps meaning you can’t save as much

•   Increased debt-to-income ratio (DTI)

•   More opportunities to miss a payment, which can negatively impact your credit score

•   Applying for new loans typically lowers your credit score by several points temporarily

Here is this information in chart form:

Ways Multiple Personal Loans Can Affect Your Credit

Having multiple personal loans can have both negative and positive impacts on your credit, as noted above. Any time you apply for new credit, the lender will do a hard pull on your credit, which can cause a small, temporary dip in your scores. Multiple hard credit inquiries in a short period of time, however, can significantly harm your credit. Late or missed payments can also negatively affect your credit score.

On the plus side, taking out a new personal loan and handling it responsibly (by making on-time payments) can positively influence your credit over time.

Other Potential Complications

Here’s a look at some other ways that having multiple personal loans can affect your finances.

•  Multiple payments: A new personal loan means a new monthly payment. Before you add to your debts, it’s a good idea to review your budget to ensure you can manage an additional monthly loan payment.

•  Debt-to-income ratio: Each personal loan impacts your debt-to-income ratio (DTI). This ratio measures how much of your monthly income goes toward current debt. A higher DTI can make it harder to qualify for other types of loans, such as a mortgage, in the future.

•  Higher interest rates: A lender could approve you for an additional personal loan but at a high annual percentage rate (APR), which is the personal loan’s interest rate blended with applicable fees and charges, because of your existing debt.

Getting Multiple Loans From the Same Lender

Before applying for an additional personal loan from your current lender, it’s a good idea to check their policies. Some lenders limit the number of outstanding personal loans you can take out at one time or cap the total amount you can borrow. In addition, some lenders require that you make a certain number of consecutive on-time payments (such as three or six) toward an existing loan before you can apply for another loan.

If you believe you’ll meet the lender’s requirements for a second personal loan — and you feel comfortable making the additional monthly payment — getting an additional loan from the same lender could be a smart strategy.

Recommended: Average Personal Loan Interest Rates

Qualifying for Another Personal Loan

If you apply for a personal loan with another lender, you won’t have to worry about a cap on the number of loans you have or the combined amount you can borrow. However, you will have to go through the whole application process, and the lender will likely perform a hard credit check. They will factor in how much debt you already carry, even though it may be with another lender.

You can get an idea of whether or not you’ll get approved for an additional personal loan by calculating your current DTI. To do this, simply add up all your current debt payments, including any auto loans, mortgage, credit cards, and student loans. If that number comes close to 50% of your monthly gross (pre-tax) income, another personal loan may not be in the cards. The max DTI for a personal loan is typically 50%. However, many lenders like to see a DTI that is less than 36%.

Recommended: Secured vs Unsecured Personal Loans: Comparison

Alternatives to Multiple Personal Loans

When you need to cover unexpected expenses, a personal loan (whether for several hundred dollars or a $15,000 personal loan or more) can be a great resource — but it’s not your only option. Here are some alternatives to personal loans you might consider.

0% Interest Credit Card

If your credit is strong, you may be able to take advantage of a credit card with a 0% introductory APR. The promo rate can last up to 21 months; after that, the card will reset to its regular APR.

If you can use the card to cover your costs and repay the balance before the 0% rate ends, it’s the equivalent to an interest-free loan. If you’ll need a significantly longer period of time, however, this route could end up costing more than a personal loan.

Home Equity Loans or Lines of Credit

A home equity loan or home equity line of credit (HELOC) may be worth exploring if you own a home and have built up significant equity. A home equity loan is a single lump sum you repay (plus interest) over time. A HELOC is a revolving line of credit that you can draw from as needed; you pay interest only on what you use.

Home equity loans and HELOCs are secured by your home, which lowers risk for the lender. As a result, they may come with lower interest rates than personal loans. A major downside of this type of loan is that, if you default on the loan, you can lose your home.

Debt Consolidation Loan

A debt consolidation loan is actually a type of personal loan, but it can be used to replace multiple debts with a single, more convenient loan.

Here’s how debt consolidation works:

•  Say, you already have a $5,000 personal loan.

•  You are also carrying credit card debt totaling a few thousand dollars.

•  Getting a new $10,000 personal loan can allow you to eliminate both of those debts. The funds from the new loan would pay off your existing loan and credit card balances, and you would then make payments on your new single personal loans until it’s paid off.

Having one loan vs. many can help some people avoid paying a bill late or missing a payment altogether.

The Takeaway

You can have as many personal loans as you like, provided you can get approved. Some lenders limit the number of loans they’ll extend to an individual at any one time, or cap the total amount one person can borrow. To get an additional personal loan with a new lender, you’ll need to meet their qualification requirements. Having an existing personal loan could make this harder to do. However, you may get approved if your monthly income is sufficient to cover the new payment. Before you jump in, you’ll want to consider how it will impact your overall debt, credit score, and credit history.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How long should you wait between loans?

A general rule of thumb is to wait at least six months between applying for new credit. Submitting multiple loan applications in a short time frame can result in several hard inquiries on your credit report, which can lower your credit score. It may also signal to lenders that you are in financial distress, which could make it harder to get approved for a new loan.

Do multiple loans affect credit score?

Multiple loans can positively and negatively impact your credit. Each new loan application can result in a hard inquiry on your credit report, which may temporarily lower your score. Having multiple loans can also increase your debt-to-income ratio, which can make you appear less creditworthy to lenders. If you consistently make on-time payments on all of your loans, however, it can positively impact your credit history over time.

What happens if you pay off a loan too quickly?

Paying off a loan early can have mixed effects. While it can save you interest payments, some lenders may charge prepayment penalties, which could offset the benefits of early repayment. When you’re shopping for loans, it’s a good idea to ask if there is an early payoff fee. Some lenders do not charge them.

Paying off a loan early can also have a slightly negative impact on your credit by bringing down your average credit history length and reducing your credit mix.

Paying off a loan early can also have a slightly negative impact on your credit by bringing down your average credit history length and reducing your credit mix.

Is it legal to have multiple personal loans?

There is no federal law against having multiple personal loans. As long as lenders approve you and you handle the debt responsibly, it should not be a problem. However, note that you typically cannot use personal loans for any illegal uses, business purposes, or tuition payments.

Can you be denied a personal loan if you already have one?

Yes, you can be denied a personal loan if you already have one. The lender may have a cap on how much applicants can borrow that you would exceed with a new loan, or your DTI (debt-to-income) ratio may exceed the amount they are comfortable with.

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.

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