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About 25.6 million Americans made a move in 2023, which amounts to 7.8% of the country’s population. As you may be aware, a move can be expensive. Current estimates reveal that a local move for the contents of a three-bedroom home costs approximately $2,200, while a long-distance move is easily twice that. What’s more, amid the chaos of purging and packing, it’s easy to forget some of the moving-related costs you might face.

To help you get organized and budget appropriately, read on for the full story.

Understanding Moving Expenses

While it may not be as fun as, say, budgeting for a wedding, figuring out costs for moving can be similarly complex. There can be numerous aspects to wrangle, from purchasing the proper packing supplies, to deciding whether to DIY your move or hire professionals, to understanding insurance needs. Consider the following.

Types of Moving Expenses

Here are some of the costs you are likely to incur when moving:

•  Transportation, or actually moving your possessions from point A to point B

•  Moving services, meaning having professionals load, transport, and unload your belongings

•  Packing, which usually involves cartons and bubble wrap (or you might pay to have movers pack delicate or valuable items)

•  Insurance to cover the value of your belongings as they are transported

•  Rent and security deposits. The location you’re moving to may require a security deposit and first month’s rent in advance.

•  Cleaning fees. You may have to pay to have your former and new residences cleaned.

•  Lodging. As you travel from your former home to your new place, you may have to stay a number of nights in a hotel or motel. Some people need to bridge the gap between homes with a short-term rental as well.

•  Storage. You might have to put some items in storage, depending on the timing and specifics of your move.

•  New furniture and appliances. Often, when people move, they discover they need to buy new pieces, whether that means window shades, a fridge, rugs, or a dining table.

Factors That Affect Moving Costs

There are numerous variables when you move, but here are a few key ones to consider:

•  How far you are moving. A move across town will involve less time, effort, and expense than a move across the country (or overseas).

•  How much you are moving. If you are a recent college graduate with just a few pieces of furniture, your move is likely to cost less than, say, a family of four packing up their whole home (basement and attic including) and relocating.

•  Time of year. Summer tends to be the busy season, with students leaving school and finding new places to settle and families wanting to get to their new house before the school year starts. This increased demand can increase prices.

•  Services needed. If you are going to pack the contents of your studio apartment and have a friend with a van to help you move, you’ll likely spend considerably less than you will if you are a family of four who wants movers to pack and transport all your furniture and other items.

•  Storage. If you have to store all your possessions for a couple of weeks before you can have access to your new place, those costs can add up.

•  Access to locations. Someone whose move involves a single-level home with an ample driveway will likely have a shorter move than someone who lives in a 20th-floor apartment on a crowded city block. And shorter moves are less expensive than longer ones.

How to Create a Moving Budget

Once you know when and where you are moving, you can map out a moving budget.

•  Take inventory of what you want to move. Consider clothes, contents of your kitchen and bathroom(s), items stored in closets, and belongings in the attic, basement, and garage, if applicable. This will help you determine how big a truck you need and how much packing material you need.

•  Unless you’re planning to DIY your move, get multiple quotes from movers and carefully check reviews for the key contenders.

•  Don’t forget to add in line items such as packing materials, insurance, storage, and your daily expenses as you move.

•  Assess transportation and lodging costs as you move, plus pet boarding expenses, if needed.

•  Calculate the costs of getting settled in your new home: Rent, security deposit, new furnishings, cleaning fees, and so forth.

Once you have all the potential costs tallied, you can consider how to allocate funds to cover these expenses. Since moving costs can add up, you might want to think about ways to avoid putting the charges on a high-interest credit card.

Cost of Hiring Professional Movers

Next, take a closer look at one of the biggest expenses of moving: the cost of hiring a professional team to get you to your new home.

Average Cost of Hiring Movers

As you might guess, the cost of hiring movers can range widely depending on location, distance of the move, and how much you’re moving. Here are some general figures to be aware of:

•  For a local move (meaning 100 miles or less), costs typically range from $800 to $2,500.

•  For a long-distance move (more than 100 miles), costs are usually considerably higher, ranging from $2,200 to $5,700.

There can be additional fees to consider: extra insurance for valuable items, the cost of packing and moving supplies, the fee for professional packing of items, and special services for moving items like, say, a piano or a pool table. You may also want to calculate how much tipping your movers might cost; omitting that expense could be a budgeting mistake. Recommendations typically say between 10% and 20% of the cost of your move is appropriate.

Recommended: Personal Loan vs Credit Card: What’s the Better Option?

Tips for Saving Money on Professional Movers

As you contemplate moving and how much it will cost, you may want to try various ways to keep the price down:

•  Declutter before your move. The less stuff you have, the less packing materials you’ll need and the faster (and cheaper) your move will be.

•  Pack what you can. While valuable art or a prized guitar may not be good candidates for packing yourself, you can likely save money by packing, say, your clothes in your suitcases and duffel bags vs. paying a professional to do the job.

•  Move during the off-season. There’s less demand during seasons other than summer, so you might get a better deal.

While of course you want to stick to your budget, keep in mind that the cheapest quote for moving may not be the best option. A moving company’s reputation for safe, on-time services can matter more than a rock-bottom price.

DIY Moving: Budgeting and Expenses

Thinking of doing your own move? Consider these aspects:

•  The cost of renting a truck or van will require funding. As you might guess, the bigger the truck and the longer you use it, the more costly it will be. According to Angi.com, renting a truck can cost between $20 and $100 a day for a local move, but a long-distance move can incur charges of $300 to $2,000 or more a day. The average cost in the U.S. is about $1,000. (Keep in mind that you need to resolve what happens to a truck that you might drive cross-country to move. Can you drop it off at a location near your new home, or will you have to pay a fee for its return to its home base?

•  You’ll also need to budget for packing materials. Online packing calculators can help you determine your needs and the cost, but estimates say that for a small-to-medium home (a two-bedroom apartment or house), you’ll likely need to spend at least a couple hundred dollars on cartons, not including such supplies as bubble wrap ($2 for 10 feet) and tape ($2.50 and up per roll). Don’t forget some sturdy markers to help you label what’s inside each box.

•  You might rent reusable boxes (typically plastic ones) to use for your move. Another item that can be wise to rent is wardrobe boxes, which allow you to move clothing that’s hanging in your closet into these boxes for easy transportation.

•  Moving blankets are another expense. These can cost $10 and up a pop if you purchase them. You may be able to rent them from a moving company to use for your DIY move.

•  Don’t forget about dollies and hand trucks to get boxes from one location to another.

Recommended: Personal Loan Calculator

Hidden Moving Costs to Be Aware Of

As you get ready to move, don’t overlook these costs (some of which were mentioned above):

•  Storage costs for any items that need to be held securely before they can be moved into your new home. You might easily pay between $100 and $300 a month for this service. You also might need to pay insurance fees to protect your items.

•  Any temporary housing you may need

•  Transportation costs. You may be in a situation in which you fly cross-country but need to ship your car (the average cost of shipping a car is $1,650). Or maybe you’ll drive, triggering gas, lodging, and road food costs.

•  If you’re moving to a different state and have a car, you’ll need to apply for a new license and register your car with the local DMV, which can wind up costing a couple hundred dollars. That’s another item to add to your moving expenses checklist.

•  You will likely need to update documents and do a significant amount of address changing for all your online and other accounts. You might face some delays in receiving payments (such as passive income), so that is worth considering in advance as well.

•  Security deposit and first month’s rent, if applicable, at your new place. Also utilities setup and any transfer fees; locks and smoke and carbon monoxide detectors

•  Stocking your kitchen at your new home (pantry and grocery expenses are not insignificant)

Tips for Reducing Moving Expenses

Here are some ways you can bring down your moving costs (some were already referenced above):

•  Downsize as much as you can before moving. The less you have, the faster and cheaper your move can be.

•  Find affordable or free moving materials. Options can include getting free cartons and other supplies from friends and family, sourcing boxes from local retailers, or renting things like plastic containers, wardrobes, and moving blankets vs. purchasing them.

•  Schedule your move appropriately, avoiding the busy and pricey summer high season.

•  Check the Internal Revenue Service’s allowable tax deductions and reimbursements for moving. The IRS website shares details of what you might qualify for.

Planning for Additional Moving Expenses

Part of the goal of this planning is to help you avoid putting many of these potential charges on your credit card, since they typically charge high interest rates. Maybe you can dip into funds held on reserve: That’s what emergency savings are for.

You can also use a 0% interest credit card, crowdsource from friends and family, or consider a personal loan.

Personal loans are a form of installment debt, where you receive a lump sum that you then repay in equal monthly payments. There are different types of personal loans, so you can choose the terms that best fit your budget and circumstances.

Believe it or not, moving expenses are one of the most common uses for personal loans. And because of their relatively low fixed rates compared to high-interest credit cards, you can roll in related new-home expenses like new furniture and painting.

Recommended: Get Your Personal Loan Approved

The Takeaway

Moving is a major financial commitment, but it doesn’t have to break the bank. When planning a move, first decide whether you’re going to DIY or hire pros. Then make a list of other expenses: packing supplies, funds for a security deposit at your new place, and new furniture and household items. You may need to tap your savings or take out a personal loan to afford these charges.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What are the typical costs associated with moving?

A local move (meaning less than 100 miles) can cost from $800 to $2,500, while a long-distance move can cost a couple of thousand dollars and up. Costs include professional movers or truck rental, packing supplies, transportation to your new location, possibly lodging, and costs such as a security deposit and new vehicle registration at your new home.

What is a reasonable amount for moving expenses?

There is no one figure that’s reasonable for moving expenses. The amount of possessions you need to move, how far you are moving, and when you are moving are among the factors that matter. It can also impact costs if you hire professional movers vs. doing it yourself. In general, a move can easily cost at least one or two thousand.

What are ways to lower the cost of moving?

To lower the cost of moving, you might do the move yourself with friends and family, source free boxes from local retailers, and declutter before you move, not after.

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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.

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

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.


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.


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.


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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Has this happened to you? You’re thinking about getting a personal loan but haven’t yet applied. Then you get a letter in the mail: “You’re preapproved or prequalified for a personal loan!” What does that mean?

Some lenders use “prequalified” interchangeably with “preapproved,” but they are different. Here, we’ll discuss preapproval vs. prequalification and how to know if you’re a good candidate for a personal loan.

What Does Being Prequalified for a Loan Mean?

Prequalification is sometimes considered the first step in the loan approval process. You can think of it as a less comprehensive version of a preapproval. Prequalification simply means that you fit the general description of a customer typically qualified for a loan.

Based on your general profile, the lender can give you an idea of the size of loan you can qualify for. While prequalification can be done fairly quickly, it does not involve a full analysis of your credit report or verification of the financial information you provide. Because of that, there’s no guarantee that your loan will be approved.

Recommended: What Is a Personal Loan?

What Does Loan Preapproval Mean?

Preapproval is a more in-depth stage of the personal loan approval process. A lender will have accessed your financial history to assess you as a potential customer. Being preapproved means that, based on the information accessed, you most likely will be approved for a loan.

Preapproval allows the lender to show you the size of the loan you might qualify for, and the interest rate and loan terms they’re willing to offer. It’s a step closer to final approval of your loan application. However, this doesn’t automatically translate to being fully approved. For example, a hard credit inquiry can pull in information previously unseen by the lender that was not considered at the preapproval stage.

Does Prequalification or Preapproval Affect Your Credit Score?

Lenders typically prequalify you on the basis of financial information that you provide and perhaps a soft inquiry into your credit history. Soft inquiries don’t affect your credit score, so it’s unlikely that prequalification will either.

Because the prequalification process varies by lender, however, it’s impossible to say for sure that prequalification won’t impact your credit. If it does, the impact will be small and temporary.

Preapprovals are more rigorous than prequalifications and closer to what you’ll experience when you actually apply for a loan. Preapprovals often involve a hard credit inquiry, which does impact your credit. But again, any effect will be minor.

Recommended: Should You Borrow Money During a Recession?

How Do I Know If I’m a Good Candidate for a Personal Loan?

A personal loan application considers your existing debt and your ability to repay the loan. Your current employment will factor into how well-suited you are to repay the loan, as will your credit score. In most cases, this means you need a good credit score to qualify for an unsecured personal loan at a low interest rate.

Lenders will also consider your “DTI” — the ratio of your income to existing debt — and what kind of monthly payments you can afford.

If you can’t otherwise qualify because of a poor credit score, consider asking a close friend or family member to cosign your personal loan. Adding a cosigner with a good credit score to your application can help you get a lower interest rate on your loan.

Will You Prequalify for a SoFi Personal Loan?

Some nontraditional lenders, like SoFi, look at other parts of a financial package when evaluating a candidate’s personal loan application.

SoFi considers additional factors such as your earning potential and cash flow after expenses. This means that even if you have a shorter credit history (because you just graduated college, for example) you may still qualify for a personal loan based on your education and career.

To find out if you qualify for a SoFi personal loan, first go through the online prequalification process. This requires you to create an account, and input your basic personal information, education, and employment history. It takes only a few minutes, after which SoFi will immediately show you which loan options you prequalify for.

After selecting a preliminary personal loan option, you’ll have to finalize your application by uploading documentation to verify your personal information. This may include pay stubs and bank statements. Once you’re approved, the loan is typically disbursed within a week.

The Takeaway

Wondering what it means to be prequalified vs. preapproved? You’re not alone. The terms may sound similar, but there are differences to be aware of.

Prequalification is often the first step of the loan application process, and it typically takes less time and requires fewer details from the borrower. Preapproval is the second step of the process. Here, you can see the size of the loan you could qualify for and the potential terms and interest rate. However, neither step is a guarantee that you’ll be approved for the loan.

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.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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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.

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

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.

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Editor’s Note: The new FAFSA form for the 2025-2026 academic year is available. Based on early testing by students and families, the process seems to be improved from the 2024-2025 form. Still, it’s best to get started on the form and aim to submit your application as soon as possible.

Applying for federal aid is a crucial step most high school students take while transitioning to college life. Parents going through the college admissions process for the first time, though, may not realize that they also play a huge role in helping their children apply for grants and scholarships through the Free Application for Federal Student Aid or FAFSA.

Applications for the 2025-2026 FAFSA opened on November 21, 2024, and will remain open until June 30, 2026. If you’re looking for facts about FAFSA that will help your child apply for college aid for the 2025-2026 academic year, we’ve compiled some of the most important information on how you can help your child during the FAFSA process.

FAFSA Facts and Tips

Filling out FAFSA for the first time? These facts and FAFSA tips can help you prepare for the application process and offer suggestions for getting the most aid.

1. FAFSA Is Required to Receive Government Student Loans

For those who may be new to the financial aid process, FAFSA is the form students fill out to apply for federal financial aid, including federal student loans. More than 17 million students fill out the FAFSA each year. Your child won’t be eligible for government-funded college aid, such as federal loans or grants if they don’t apply.

Recommended: 12 Steps to Filling Out the FAFSA Form for School Year 2025-2026

2. Your Child Could Qualify for Grants by Filling Out FAFSA

While you can get subsidized or unsubsidized loans through FAFSA, your child may also be eligible for grants. One common federal grant is the Pell grant, which is awarded to first-time undergraduate students who show exceptional financial need, such as coming from a low-income family.

3. It Determines Work-Study Eligibility

Federal work-study is a way for students to earn income at a part-time job while in college. These jobs can be on or off-campus and vary by school, although not all schools participate in the program. You have to fill out FAFSA to determine if you’re eligible for work-study programs.

4. Some Schools Use FAFSA to Determine What Aid They Offer

If the schools your child applies to offer their own aid, such as need-based scholarships, they may use FAFSA to determine eligibility. You may want to check with the schools your child is applying to and ask if they have a separate application for internal scholarships and grants.

Recommended: FAFSA Guide

5. Most Applicants Under Age 24 Are Considered Dependents

Most students under the age of 24 who are neither married nor parents themselves won’t be able to apply as an independent student . As a result, for most incoming freshmen, their parents’ income is counted in the determination of financial need.

6. Your Child Needs Your Information to Apply

If your child is filing as a dependent, then they’ll need some basic information about your finances, such as your income and paid taxes. You may also elect to apply for a Parent PLUS loan at some point, which can help cover your child’s educational expenses if they don’t receive enough in loans and grants to cover costs. Note that you may need to provide additional information to apply for a Parent PLUS loan.

7. High-Income Families May Want to Still Apply

If your family is middle- or upper-class, you may wonder if your child will receive any FAFSA aid. However, applying is free, and family income is just one of many factors considered during the application process. Additionally, your child’s school still may require the FAFSA to consider them for institutional aid, such as non-need based scholarships, so it may be worth applying for even if you don’t think your child will need or receive aid.

8. Grades Don’t Affect FAFSA Eligibility

FAFSA does not have a GPA requirement to apply. However, your child may want to keep in mind that they could lose any aid given to them through FAFSA if they have poor grades for multiple semesters after they receive the aid.

9. Deadlines May Differ by State and School

While the FAFSA doesn’t close until June 30, 2026 for the 2025-2026 academic year, FAFSA application deadlines vary by state and school. State and school deadlines may close prior to the federal deadlines. If you’re not sure what deadlines apply to your student, consider checking with the financial aid office of each school your child applies to and asking what their FAFSA deadlines are.

10. Having Multiple Kids in College No Longer Affects Financial Aid Awards

In January 2024, a new law went into effect that removes the number of family members in college from the financial aid calculation. Before, families with multiple children in college may have qualified to receive more aid. That is no longer the case. However, at the same time, the Pell Grant opportunity has been expanded so that students who might not have gotten a Pell Grant before may now get one. These are two of many changes created through the FAFSA Simplification Act, which aims to simplify the FAFSA form and therefore encourage more families to fill it out.

11. Expected Family Contribution Is Also Changing

Expected family contribution (EFC) is an estimate of how much FAFSA believes families can contribute to the cost of a student’s education. However, as part of the FAFSA Simplification Act, EFC was replaced with the Student Aid Index (SAI), which went into effect for the 2024-2025 academic year.

12. FAFSA Is Changing the Process for Children of Divorce

Before the new simplified FAFSA, in the case when a child’s parents are separated, the custodial parent’s information was included on the form. However, with the new changes, the parent who provides the most financial support to the student is responsible for filling out the FAFSA.

13. Your Child Will Need Their Social Security or Alien Registration Number

As your child prepares to fill out the FAFSA, they’ll need their Social Security or Alien Registration number if they are not a U.S. citizen.

14. Have Certain Nontaxable Income Information at the Ready

On the 2025-2026 FAFSA, there are far fewer questions about nontaxable income for parents than there used to be. What you will still need to provide are such things as the amount of the untaxed portion of any IRAs and pensions you may have, and deductions and contributions to self-employed SEP IRA, SIMPLE IRA, and qualified plans.

15. Your Child May Need to Report Grants and Scholarships

Most first-time college students won’t need to report any grants or scholarships they received. However, they may have to include them on the FAFSA if they had to report them on their taxes, such as:

•   AmeriCorps benefits living allowances and education awards

•   Taxable work-studies, assistantships or fellowships

•   Other grants or scholarships reported to the IRS

If you have any doubts about what types of grants may be taxable, consider consulting a tax professional.

16. Have Bank Statements Available

To fill out FAFSA, you’ll need bank statements for both you and your child. This information helps determine how much aid your child will be eligible for.

17. You Don’t Have to Have a Social Security Number to Sign the Form

If you’re filing the FAFSA online and you don’t have a Social Security number, you can create a federal student aid (FSA) ID without it. Your FSA ID is your login and password. Then you can proceed with filling out your portion of the form.

18. You Don’t Need to File Taxes Before Submitting the FAFSA

If you filed for an extension for your tax return, you can use your W-2 or 1099 statements. But you will need to update the FAFSA once you file. This is because which tax bracket you’re in can impact how much aid your child is eligible for.

19. You’ll Need to Have a List of Assets Ready

FAFSA uses parental assets to help determine aid eligibility. You’ll need to know how much in assets you have, which include (but are not limited to):

•   Money in cash, savings, and checking accounts

•   Non-retirement investments (such as stocks and mutual funds)

•   Businesses

•   Investment farms (in other words, you don’t live on and operate the farm)

•   Other investments, such as real estate and stock options

20. Some 529 Plans Are Also Considered Assets

When filling out information about assets, you’ll also need to provide the value of the 529 College Savings Plans you own. Also, if your dependent child owns a 529 plan, you will need to report it as a parental asset — and not as the student’s asset. However, a 529 owned by anyone else, such as the student’s grandparents, is no longer reported as an asset on the FAFSA.

21. Your Primary Home Doesn’t Need to Be Listed as an Asset

One common FAFSA mistake is listing your primary home as an asset. However, FAFSA does not require you to do so. In fact, listing it as an asset can decrease the amount of aid your child receives.

22. You Don’t Need Your Retirement Information

FAFSA also doesn’t count the value of retirement accounts as assets. Again, including them can inflate the number of assets you have and therefore may decrease the amount of aid your child is offered. However, as mentioned above, you will need to report the untaxed contributions and withdrawals from these accounts on the FAFSA.

23. You’ll Need to Include Each School Your Child Is Applying To

When you and your child fill out the FAFSA, you’ll want to have a list of all the schools your child may be interested in applying to. You’ll need each school’s federal school code to add them to the list of schools you want your FAFSA information sent to, although you can also search for this information on the form itself if you can’t find it on the school’s website. It may be wise to include schools your child isn’t sure they want to apply to yet since it’s easier to simply add the school to the list now than having to send the school your FAFSA information later.

24. Schools, Not the Government, Will Give You Financial Aid Updates

Part of the reason you’ll need to send your FAFSA to schools your child is considering applying to is because schools, not the government, send out financial aid packages. As such, each school your child applies to may offer a different financial aid package.

25. Skipping Information Can Be Costly

Before hitting submit, you might want to double check that every section of the FAFSA is filled out (and accurate). Skipping FAFSA sections may result in delays in your application being processed, errors that prevent you from submitting, or even a decrease in the amount of financial aid you may get.

26. Your Child Will Need to Take Student Loan Entrance and Exit Counseling

Students who receive Direct Subsized or Unsubsidized loans or Direct PLUS loans for graduate students are required to take student loan entrance counseling. If a student is a first-time student loan borrower or a graduate student who has not previously received a Direct PLUS loan, they will need to take entrance counseling before their loans are disbursed. The counseling informs student borrowers about the terms and conditions of their loans, including interest rates, repayment options, and how to avoid default or delinquency.

Your child can take entrance counseling by logging into their account on StudentAid.gov. The session must be completed in one session. It’s important to note that some schools have different entrance counseling requirements, so check with the financial aid office to make sure nothing else is needed.

Similarly, after graduation, federal student loan borrowers need to take mandatory student loan exit counseling to help them navigate how the student loan repayment process works. A reminder will be sent to your child’s email in their last year of school about when this exit counseling is due. However, you and your child may want to consider reviewing student loan exit repayment options before the counseling is due to ensure they pick the best option based on their financial situation.

27. File Early to Get the Most Aid

While it may seem like you have a ton of time to fill out the FAFSA, it may be best to complete it sooner rather than later. Delaying can mean financial aid for your state or school dries up before your child can even be considered for it. Additionally, knowing how much aid each school is offering your child may help them when deciding on which school to attend.

28. You Could Be Selected for FAFSA Verification

After your child receives their student aid report, they may get a message saying they were selected for verification. FAFSA verification is used by some schools to simply verify that students’ FAFSA information is accurate. Some schools randomly select people to be verified, some verify all students, and some may elect not to verify any students.

29. You Can Appeal Your Aid Package

Once your child has their financial aid packages, they may find that they were offered less than they expected or hoped for. If your child’s dream college didn’t offer enough aid (or perhaps even didn’t offer them any aid), they may be able to appeal for more financial aid. This process may be especially important if your financial situation has changed since you and your child first applied for FAFSA. While schools may deny the request, it doesn’t cost you or your child anything but time to ask for more aid.

30. You Can List Unusual Circumstances That Affect Your Finances

Another way to try and increase your financial aid package is by listing unusual financial circumstances both on your FAFSA and in an appeal letter to schools you’re applying to. Some common unusual circumstances include (but are not limited to):

•   Having tuition expenses in elementary and/or secondary schools

•   Experiencing unusual medical or dental expenses not covered by insurance

•   Having a family member become unemployed recently

•   Experiencing changes in income and/or assets that could affect aid eligibility

31. You’ll Have to Reapply Every Year

Once you’ve filed your FAFSA, you may want to keep your login information in a safe place. You’ll need that information to file for FAFSA every year your child is in school, and losing your FSA login information may delay your ability to apply next year. You may also want to set a reminder on your phone or calendar to apply next year, although FAFSA will send you an email reminder when next year’s FAFSA is open.

The Takeaway

Filling out and submitting the FAFSA is an important first step in helping your child pay for college. Knowing how the FAFSA works and how to optimize the amount of aid your child receives can help increase the amount of federal aid they’re offered.

However, if your child’s financial aid package isn’t enough to cover college costs, they may want to consider private student loans. It’s important to note, however, that private student loans don’t offer the same borrower protections as federal student loans. That’s why it’s wise to consider all the options to make the best choice to help pay for your child’s education.

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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Photo credit: iStock/wagnerokasaki

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., 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 04/24/2024 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org).

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

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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