by Melissa Brock | Feb 24, 2025 | College Money Tips |
College tuition costs continue to rise. Parents often struggle to manage the costs even with substantial financial aid, and students are (justifiably) fearful of the debt they’ll amass trying to pay their own way. The hope of course is that action will ultimately be taken to reduce student debt burdens and lower the cost of college. For the time being though, lots of families need to find creative solutions — including parents adopting side hustles to pay tuition.
Benefits of Side Hustling to Help You Save for College
Chances are, if you’re familiar with the term “side hustle,” it’s primarily with regard to young adults working full time for the first time. These days, we often expect young people to be working “day jobs” and “side hustles” simultaneously as they look to save up money and establish financial independence. But this isn’t the only use for a side hustle. It can also be a worthwhile venture for a mom — and perhaps a single mom in particular — looking to manage college tuition costs.
Usually, conversations about managing those costs begin with talk of savings, and this is perfectly logical. If you’re a mom hoping to pay for some or all of your child’s (or children’s) tuition costs, you should be looking for ways to save. If you start early, you can take advantage of a variety of methods that help to build on savings over time, and ultimately establish very useful funds that can be applied to tuition checks when the time comes. At the same time though, savings options do fundamentally draw money from your existing income. They are effectively costs that affect your bottom line, perhaps for years at a time.
This speaks to the key benefit of adding a side hustle to your tuition plans. While savings drain your core income, a side hustle provides you with extra income — allowing you to make additional money that you can funnel directly toward payments (or perhaps directly into a savings account, deepening on timing and arrangements). Of course, a side hustle still requires time and effort. But it’s fair to think of it as a way to make extra money for tuition, rather than to further drain the core income you depend on as a working mother.
The other key benefit, as we just alluded to, is that by generating extra income, you may be able to add generously to a savings account or similar, stable investment that can appreciate over time. If, for instance, you are managing a 529 plan for college costs, the money within that plan grows by a small percentage each year. Funneling side hustle earnings into the plan gives you more money that can appreciate over time, rather than just more raw funds.
Now that we’ve covered some of the benefits of side hustles for moms looking to manage college tuition costs, let’s look at some of the best specific jobs worth considering. It’s important to note that a strong, well-crafted resume can increase your chances of landing your dream job. Moms often have limited time yet still want their applications to stand out. In such cases, turning to CraftResumes can help you present your skills and experience in the most compelling way.
Side Hustle 1: Crafting
With so many ways to sell goods online today, a lot of moms will develop profitable side hustles simply making and selling their own goods. Whether that means homemade tee shirts, jewelry, household decorations, or Christmas ornaments, if the products are well made they can be sold online.
Side Hustle 2: Blogging
It takes strategy and diligence to make a profitable blog. But if you know what to write, you speak to a particular audience, and you learn some SEO basics, you can generate enough attention to make some money simply writing in your free time.
Side Hustle 3: Proofreading
Students and professionals alike are always in need of proofreading services, and today you can easily link up with clients for this kind of work through freelancing sites online.
Side Hustle 4: Transcribing
Like proofreading, transcription services are always in demand on freelance platforms (such as Upwork and others like it). It tends to be easy work to perform in free time, and while pay isn’t lucrative, it does add up.
Side Hustle 5: Taking Paid Surveys
There are all sorts of opportunities to answer paid surveys, and some of them take only minutes at a time. This is a job a working mother can do in a carpool line, at the park while younger kids play, etc.
Side Hustle 6: Selling Art
This is a terrific side hustle for working moms who happen to have a talent for art, naturally. But here again, the internet and social media have made it much easier to sell valuable work. In time, a mother with talent in this space can even develop what is essentially a personal business, generating more and more meaningful income as attention and appreciation for the work spread.
Side Hustle 7: Selling Photos
Everything we just noted regarding art applies to photography, for those who have more skill in this area. Here too though we’ll also note that stock photo sales can make for a handy side hustle, because profits can be generated for work already done. That is, even if you’re only making $1 per download on a photo, those dollars may keep coming in for months or years.
Side Hustle 8: Selling Baked Goods
For those moms who have a talent for baking (or making any sort of treat, really), there is also some potential to generate meaningful side income. Whether through online or local sales, there’s always a market for tasty goods!
Side Hustle 9: Testing Products
Numerous services exist that help to pair willing participants with product-testing opportunities, both digitally and in person. Simply by trying out a product in your own time and offering your thoughts on it, you can earn some decent payments.
Once in-person shopping returns to a normal activity level (after the pause of 2020), secret shopping will be an option that some will actually have fun with. This is basically a practice by which a company will pay people to browse through its stores and report on the quality of the service.
Side Hustle 11: Altering Clothing
This is another option in the craft and artistry department. But for moms who are skilled with alterations, there is always the option of setting up a part-time local business.
Side Hustle 12: Tutoring
Tutoring is an excellent part-time option that can sometimes involve fairly appealing rates. Sometimes online but particularly in person, a skilled tutor can reasonably ask for $50 an hour or more.
Side Hustle 13: Assisting With Test Prep
This is very similar to tutoring. But for those moms who want more guaranteed business, test prep is a sort of tutoring niche that makes for a great side hustle. There will always be kids seeking help with standardized testing, and helping them with the process is both rewarding and profitable.
Side Hustle 14: Teaching Private Lessons
It’s a broad category, but teaching a skill — be it in music, sports, art, etc. — is also an excellent side hustle. Here, as with tutoring, $50 or more per hour is a reasonable ask, meaning the extra funds can really add up.
Side Hustle 15: Teaching Online Courses
In a similar vein to tutoring and teaching private lessons, moms with expertise in certain subjects also have the option of setting up full online courses. This can take a fair amount of work, as it involves conveying expertise and doing the marketing work that will attract paying students or subscribers. But the real appeal is that a well-made online course can be used repeatedly to generate more profits from new students.
Side Hustle 16: Personal Training
For moms with experience in fitness, personal training is also an excellent option. Particularly if there’s an opportunity to take on a few client at one time, side income from an activity like this can quickly add up.
Side Hustle 17: Coaching or Refereeing
Moms who enjoy sports can also have a little bit of fun with a local side hustle participating in youth sports. At parks and community centers and the like, there is often a need for children’s team coaches or referees. These can sound more like demanding jobs, but the truth is they usually involve just a few hours’ work each week.
Side Hustle 18: Web Design
Web design is always in demand, and a mom with particular skill (and a track record or examples to prove it) can command very competitive rates in this department. Whether through a personal website advertising services or through freelance platforms, regular, high-paying side work can be generated.
Side Hustle 19: Accounting
Accounting can be a little trickier than some of these options in that you’ll typically need qualifications to get good, paying work. At the same time though, a working mother today has the option of pursuing an online accounting degree today, and acquiring those qualifications cheaply and affordably. This can lead to substantial income through remote, freelance accounting work for companies in need.
Side Hustle 20: Tax Advising
As with accounting, tax advice is something people tend to look to the experts for. However, if you can prove understanding and capability — and offer more competitive rates than professional CPAs — it is possible to generate good business. Plus, a mother who does good work advising others on taxes can quickly accumulate referrals and good reviews that in turn lead to more business.
Businesses today need to maintain social media activity to remain competitive, and a lot of them are looking for help doing it. Finding even one company that will pay to have its accounts maintained can make for a very profitable side hustle
Side Hustle 22: Babysitting
This idea more or less speak for itself. But for mothers who may have a few hours to spare in a given week, it’s still a great side hustle option.
Side Hustle 23: Pet Sitting
Even more manageable than babysitting is pet-sitting! Particularly for moms who may work at home, taking on a pet or two to help out a neighbor or friend can result in what is almost passive income. A few walks and feedings are easy enough in exchange for a nice chunk of change
Side Hustle 24: Driving An Uber (or Lyft)
Driving for ride-sharing services has become a very popular side hustle. Not all moms will have the time or flexibility for something like this, but those with older kids may be able to work in a bit of of driving in early evenings or on the weekends. The money isn’t lucrative, but it does add up.
Side Hustle 25: Driving for Delivery Services
It’s difficult to say whether or not delivery services will remain as popular once the pandemic is behind us (this article being written in early 2021). But for the time being, driving for grocery and product deliveries (through services like Postmates, DoorDash, etc.) is a nice, easy way to earn some extra cash.
Side Hustle 26: Cleaning Homes
For those moms who don’t mind the work (or even enjoy tidying things up), cleaning others’ homes is always an option too. It’s not at all unreasonable to charge $100 or more for a few hours of cleaning, such that even doing this a few times a month can add up to a nice bit of side income.
Side Hustle 27: Doing Yard Work or Gardening
For moms who love to be outside, or enjoy working on gardening and landscaping, this is one side hustle that can be the best of both worlds! Lots of people will pay handsomely to have their yard and gardens spruced up, particularly for those moms who will offer more competitive rates than larger landscaping services.
Side Hustle 28: Becoming a Virtual Assistant
This is a relatively new concept in the side hustle world, but one that can provide quite a lot of reasonably well-paid work. Ultimately, tasks for virtual assistants can range from managing appointments, to doing remote reception duty, to arranging travel, and more. But the general idea is to become an all-purpose virtual go-to for a given company’s need during defined hours.
Side Hustle 29: Work as a Doula
The work of a doula can seem like professional medical care at times, but the truth is you do not actually need certification or a degree to perform this role. It might be reassuring to clients of course, but it is possible for a mom seeking a side hustle to step right into doula work. It won’t be the most regular work, but it’s rewarding and profitable, and can of course be done alongside other side hustles.
Side Hustle 30: Renting Out Your Car
Just as Airbnb has enabled people to rent out their homes, there are now services that temporarily rent out cars as well. For any mom with the flexibility to manage this, it can be an excellent opportunity for passive side income.
Side Hustle 31: Brewing Coffee
This is an idea for which it’s important to be careful about weighing costs versus profits. But the opportunity to brew one’s own coffee can be quite a lot of fun, and can even result in something of a home business. Sourcing beans, working out a specific recipe or gimmick, and marketing fresh-brewed coffee locally is side hustle some moms will enjoy exploring.
Side Hustle 32: Life Coaching
Life coaching may be somewhat vague, but it’s also a fairly in-demand service. For those moms who feel they can inspire or motivate, or who have personal stories of overcoming obstacles in life, it’s certainly another option to explore.
Side Hustle 33: Writing Books
Writing a book takes a lot of work, and can certainly become a full-time job. However, thanks largely to self-publishing options and online sales avenues, a lot of people find that they can generate relatively modest profits on simpler projects. That might mean writing a personal guidebook regarding a given experience or skill; it might mean penning an original children’s book. Whatever the case, if it goes well it can result in at least a few thousand dollars to put toward a college fund.
Side Hustle 34: Illustrating Books
Similarly, some moms with a talent for drawing or graphic design may also find work illustrating books. A lot of authors ultimately wind up seeking illustration help, either for covers or for pictures within books, and some of hem (or in some cases their agents) will pay well for the help.
Side Hustle 35: Starting a Podcast
Podcasts aren’t easy to make a lot of money on, but they can generate some profits through subscriptions, patronage or even ads. So moms with good ideas in this department may as well give it a shot!
For an easy and effective way to start podcasting, you could create an online radio station like Radio Cult to provide all the necessary tech and guidance to get your station up and running smoothly, making it the best solution or anyone looking to enter the world of radio broadcasting.
Side Hustle 36: Starting a Food Truck
This is a little bit more of a side business than a side hustle. And as with brewing coffee, it’s an idea with which it’s important to measure costs versus revenue to ensure profitability. For a mom with a talent in a certain area of cuisine though, starting a food truck can produce meaningful side income.
Working as a performer — be it through music or something similar — is also a good way to bring in some cash now and then. On a busy city sidewalk or in a town public square, a talented performer can sometimes gather anywhere from $20 to $50 in an hour of work!
Choose the Right Side Hustle
So there you have some interesting ideas! Choosing the right side hustle for you will of course depend on your own talents, abilities and circumstances. But hopefully the breadth of suggestions above inspire you to give it some thought. You can choose from all kinds of side hustles for moms that can help with college costs. Some of them are even enjoyable or rewarding as well!
by Melissa Brock | Feb 20, 2025 | Financial aid and scholarships |
In many cases, there’s a gap between the cost of a college and what financial aid offers. Bummer, huh?
Direct PLUS loans are a type of federal student loan available to parents of dependent undergraduate students and independent graduate students to help pay for college-related expenses. They can bridge the gap between what your child earns in scholarships and other aid and the amount they owe.
Direct PLUS loans and Parent PLUS loans are the same thing, which may seem confusing. However, Parent PLUS loans are only available to undergraduate students. Parents cannot take out loans for graduate students.
Let’s walk through how to apply for a Parent PLUS loan.
Who Applies for Parent PLUS Loans?
Either parent may apply for a Parent PLUS loan, and so can an adoptive parent or stepparent. Your child must be enrolled at least half-time in an eligible program, and you and your child must be U.S. citizens or eligible non-citizens.
Understanding Parent PLUS Loans
Parent PLUS loans cover up to the cost of attendance, minus other financial aid the student receives, and you must undergo a credit check. If you have an adverse credit history, it may hamper your potential to get a Parent PLUS loan.
Parent PLUS loans are non-need based loans for parents of undergraduate students — grandparents cannot apply. (Sorry, Nonnie and Papa!) They’re also for graduate students, but we’ll focus on undergraduate students in this case.
You can borrow up to the cost of attendance at the school your child attends, minus other financial assistance your child receives. Note that you’ll get your credit checked to see if you’re creditworthy — in other words, will you repay the loan if you borrow the money?
The interest rate (the rate at which you will repay the loan) is 9.08%, which is a fixed interest rate for the life of loans disbursed on or after July 1, 2024 and before July 1, 2025. You’ll also pay a loan fee on all Parent PLUS loans, which is a percentage of the loan amount. You can tap into several repayment options.
How to Apply for a Parent PLUS Loan
Let’s walk through the steps of how to apply for a Direct Parent PLUS loan. Before you choose to move ahead with a Parent PLUS loan, note that you must repay it.
In addition, review your credit history and determine how much you need to borrow to ensure you’re moving forward with the right option for you and your child. Then, take the following steps:
First, If you have placed a security freeze on your credit file, you must lift or remove the freeze at the credit bureaus, because your application will not go through.
Step 1: Create an FSA ID.
So, how to apply for a FAFSA Parent PLUS loan? First, create an FSA ID and password to complete the Free Application for Federal Student Aid (FAFSA).
Step 2: Complete the Direct PLUS application.
Next, use your own FSA ID to complete the Direct PLUS loan application, which takes about 20 minutes. You’ll need your permanent/mailing address (if different from permanent address), telephone number, email address, alien registration number (if you are an eligible non-citizen), along with the name, address and phone number of two personal references. Keep your student’s full name, SSN and date of birth and your employer name and address handy as well.
Step 3: Complete the Master Promissory Note (MPN).
If you’re approved, you’ll be presented with a Master Promissory Note that you must complete to receive your funds, which explains all of the terms and conditions of Direct PLUS Loans. It’s your legally binding agreement to repay all Direct PLUS Loans you receive under the Direct PLUS Loan MPN.
Step 4: Disbursement occurs.
Finally, the funds get sent to your child’s school. Your child’s school will disburse the loan money by crediting it to your school account. If there is money left over, the school will pay it to you by check, or with your permission, disburse the leftover money to your child.
Step 5: Apply for Parent PLUS loans every year.
You can apply for a Parent PLUS loan during more than one of your child’s undergraduate years, but you must complete a Direct PLUS Application for each year you wish to receive a parent PLUS loan.
What Happens if You Get Denied for a Parent PLUS Loan?
It’s happened before: crushing disappointment as you realize you’ve been denied a Parent PLUS loan for your child’s education. However, there are things you can do.
Consider obtaining an endorser (co-signer) or appealing the credit decision. You may also want to consider other alternatives, though those options may also require you to undergo a credit check.
Alternatives to Parent PLUS Loans
If you’re not sure that Parent PLUS loans are right for you (because as the parent, you’ll have to repay them), you may want to consider the following alternatives:
- Private student loans: Private student loans are loans offered by private lenders, such as banks, credit unions, or online lenders, to help cover educational expenses. Unlike federal loans, private student loans often require a credit check and may have variable interest rates and less flexible repayment options. Learn more: Private vs. Federal Student Loans for College
- Scholarships: Scholarships are everyone’s favorite! They are financial awards given to students based on academic, athletic, artistic, or other achievements, or financial need. Scholarships do not need to be repaid and are often provided by schools, private organizations, or government programs.
- Grants: Grants are financial aid provided to students, usually based on financial need, to help cover educational expenses. Like scholarships, grants do not need to be repaid and are often funded by federal or state governments, colleges, or private organizations.
- Federal student loans: While Parent PLUS loans are federal student loans, the U.S. Department of Education offers other types of loans to help students pay for college or career school, including Direct Subsidized loans and Direct Unsubsidized loans. They typically have fixed interest rates, flexible repayment options, and borrower protections such as income-driven repayment plans and loan forgiveness programs.
Consider All the Implications Before Applying for a Parent PLUS Loan
Now that you know how to apply for a federal Direct Parent PLUS loan, should you? Learn more about how to get rid of student loans.
As the parent borrower, you’re legally responsible for repaying Parent PLUS loans, so consider your financial situation and decide whether they make sense for your situation. If you’re worried about jeopardizing your financial future, don’t borrow this type of loan.
It’s important to recognize that this loan carries higher interest rates, no grace period, and fewer repayment options. Your loan servicer will contact you and provide regular updates on the status of your loan, and you can choose between several repayment plans, including Standard, Graduated and Extended.
FAQs
What are the requirements for a Parent PLUS loan?
You must be the biological, adoptive or stepparent of a dependent undergraduate student. You must also be a U.S. citizen, permanent resident or other eligible non-citizen. You must not have an adverse credit history and your child must meet the general eligibility requirements for federal student aid.
Is it hard to get approved for a Parent PLUS loan?
No, it’s not difficult to get approved, particularly if you don’t have an adverse credit history. However, do your research to ensure that the Parent PLUS loan fits your needs best. Parent PLUS loans have a relatively high interest rate compared to other types of loans.
How long does it take for a Parent PLUS loan to be approved?
The time that it takes to process a loan is contingent upon you meeting/completing all loan eligibility criteria, including the application, Master Promissory Note, credit check and U.S. citizenship status or an eligible non-citizenship status as defined by the FAFSA.
by Melissa Brock | Feb 14, 2025 | Financial aid and scholarships |
Financing a college education can feel overwhelming, especially when sorting through different loan options. Among federal student loans, Federal Direct Subsidized Loans offer key advantages. What is a subsidized loan?
These loans help reduce financial strain by covering interest costs under specific conditions, making them a top choice for students who qualify.
For parents, navigating the complexities of student loans is crucial. You might have dozens of questions: How do subsidized loans work? Who qualifies? What are their limitations?
We’ll help. This guide breaks down everything you need to know to make informed decisions.
What Are Subsidized Loans?
Subsidized loans are federal student loans for undergrads who need financial help. Here’s the key difference from unsubsidized loans: Interest doesn’t build up right away. With subsidized loans, you don’t owe interest while you’re:
- Enrolled at least half-time
- In the six-month grace period after leaving school
- In an approved deferment period
These loans are part of the William D. Ford Federal Direct Loan Program managed by the U.S. Department of Education. With subsidized loans, the government pays the interest at certain times. This means the total cost of the loan is less. Subsidized loans are a great choice for families who want to lower student debt and avoid extra interest.
Who Qualifies for Subsidized Loans?
Not every student can get a subsidized loan. They’re made for students from lower-income families. This is a loan based on financial need, not just how much you can borrow. The government pays the interest while you’re in school and during deferment. This helps families who have financial need who might not be able to afford college without help. It lessens their financial stress.
Eligibility Requirements
Here are the eligibility requirements:
- Must be an undergraduate student; graduate and professional students do not qualify
- Must be enrolled at least half-time in an eligible degree or certificate program
- Must demonstrate financial need, as determined by the Free Application for Federal Student Aid (FAFSA)
- Must be a U.S. citizen or eligible non-citizen with a valid Social Security number
- Cannot have defaulted on other federal student loans
Since eligibility depends on financial need, students from higher-income households typically don’t qualify. The FAFSA evaluates income, family size, and other factors to determine need-based aid. If a student’s expected family contribution (EFC) is too high, they may only be eligible for unsubsidized loans instead.
How Much Can Students Borrow?
The most you can borrow with subsidized loans goes up each year you’re in college:
- First-year undergraduate: $3,500
- Second-year undergraduate: $4,500
- Third-year and beyond: $5,500
Aggregate Loan Limits
The total amount a student can borrow across all undergraduate years is $23,000.
If a student needs more funding beyond these limits, they must explore other options like unsubsidized federal loans, private student loans, scholarships (including merit-based scholarships) or grants.
Benefits of Subsidized Loans for Students and Parents
Subsidized loans provide major advantages over other borrowing options. Knowing these benefits helps parents guide their children toward smarter financial decisions.
- No interest while in school: Subsidized loans don’t accrue interest while the student is enrolled at least half-time. This keeps borrowing costs lower and prevents loan balances from growing before repayment starts.
- Interest-free grace period: After graduation, students get a six-month grace period before repayment begins. No interest builds up during this time, giving graduates a chance to find a job without financial pressure.
- Lower total debt: Since interest doesn’t accumulate during school or deferment, borrowers pay less overall compared to those with unsubsidized or private loans. Lower interest means faster debt repayment and less money spent over time.
- Flexible repayment plans: Subsidized loans qualify for income-driven repayment plans, which adjust monthly payments based on earnings. This makes repayment easier, especially for graduates starting with lower salaries.
- Deferment without interest accrual: Students who go to graduate school or face financial hardship can defer payments without interest adding up. Unsubsidized loans don’t offer this benefit—interest continues to grow even during deferment.
Learn more: Federal vs. Private Loans for College
Limitations of Subsidized Loans
Subsidized loans reduce interest costs, but they have limitations that students and parents must consider. Borrowing limits, strict eligibility rules, and loan fees can make them insufficient to cover full college costs. Many families need additional funding options to fill the gap.
For many students, relying solely on subsidized loans may not be enough. Families often need to explore other funding options, such as unsubsidized loans, scholarships, or work-study programs, to fill the gap.
- Strict borrowing limits: The government sets borrowing limits that may not be enough to cover the full cost of attendance, particularly at private universities or out-of-state schools. Loan amounts range from $3,500 to $5,500 per year, with a lifetime cap of $23,000 for undergraduate students.
Many colleges, especially those with higher tuition, mandatory fees and housing costs, exceed these limits. As a result, students and families often need to explore additional funding options, such as:
- Unsubsidized federal loans (which accrue interest from day one)
- Private student loans (which often have higher interest rates and stricter repayment terms)
- Scholarships and grants (which require extensive research and applications)
- Work-study programs or part-time jobs (which may not provide enough income to bridge the gap)
Because subsidized loans alone rarely cover the full cost of attendance, families must create a comprehensive funding plan early in the college search process.
Limited Eligibility
Subsidized loans are need-based, which means students from middle- or high-income families often don’t qualify. Eligibility is determined through the Free Application for Federal Student Aid (FAFSA). This application calculates the Expected Family Contribution (EFC) based on income, assets, and household size.
Even if a student qualifies in their first year, they must reapply every year. A change in financial circumstances—such as higher income, an inheritance, or fewer dependents—can cause them to lose eligibility in later years.
Independent students, who aren’t financially dependent on their parents, may also find it harder to qualify. Their own income and assets are taken into account, which can affect eligibility.
No Availability for Graduate Students
One of the biggest limitations of subsidized loans is that they are exclusively available to undergraduate students. Those pursuing master’s, doctoral, or professional degrees cannot access this interest-free benefit.
Graduate students must explore other federal loan options, such as:
- Grad PLUS Loans, which allow borrowing up to the full cost of attendance but require a credit check and accrue interest immediately.
- Unsubsidized Direct Loans, which have higher borrowing limits but still accumulate interest while in school.
- Fellowships, assistantships, and grants, which may provide funding without requiring repayment.
Since graduate school tuition is often significantly higher than undergraduate costs, losing access to subsidized loans can increase borrowing costs and long-term debt burdens.
How to Apply for a Subsidized Loan
Parents and students must follow these steps to secure subsidized loans:
- Complete the FAFSA: The Free Application for Federal Student Aid determines eligibility for all federal aid, including subsidized loans.
- Review the Student Aid Report (SAR): This document outlines the student’s Expected Family Contribution (EFC) and aid eligibility.
- Accept Aid Through the School’s Financial Aid Office: If eligible, the student must formally accept the subsidized loan through their school.
- Complete Entrance Counseling: First-time borrowers must complete an online loan counseling session.
- Sign a Master Promissory Note (MPN): This legally binding document outlines loan terms and repayment obligations.
Repayment Strategies for Parents and Students
So, how to get rid of student loans? Planning for repayment ensures financial stability after graduation. While subsidized loans offer interest-free benefits during school and deferment periods, understanding how to manage payments efficiently can prevent unnecessary financial strain. Here are several strategies to reduce debt and stay on track.
Make Interest Payments Early
Although subsidized loans don’t accrue interest while the student is in school, making early principal payments can reduce the total amount owed. Even small, consistent contributions—like $25 or $50 per month—can significantly lower debt after graduation.
Parents can encourage their child to start making payments early, even if it’s just a small amount. This not only helps reduce overall loan costs but also builds financial responsibility. Many loan servicers offer automatic payment options, making it easier to stay on track.
Once the six-month grace period ends, interest begins accumulating. If possible, making early payments before repayment officially starts can prevent the loan balance from growing, helping students save money in the long run.
Choose the Right Repayment Plan
Federal loans offer several repayment options, allowing borrowers to select a plan that fits their financial situation and future career prospects.
- Standard Repayment Plan: Fixed monthly payments over 10 years. This plan results in the lowest total interest paid but may have higher monthly payments.
- Graduated Repayment Plan: Payments start lower and gradually increase every two years. This is ideal for borrowers who expect their income to grow over time.
- Extended Repayment Plan: Allows repayment over 25 years, lowering monthly payments but increasing total interest costs.
- Income-Driven Repayment (IDR) Plans: Payments are adjusted based on income and family size, making them more manageable for graduates with lower salaries. These plans include Pay As You Earn (PAYE), Income-Based Repayment (IBR), Revised Pay As You Earn (REPAYE) and Income-Contingent Repayment (ICR).
Choosing the right plan depends on expected income, career stability, and financial goals. If a borrower can afford to stick with the Standard Repayment Plan, they’ll pay off the loan faster with less interest. However, income-driven plans provide flexibility for those in lower-paying fields.
Consider Loan Forgiveness Programs
Federal loan borrowers may qualify for loan forgiveness programs, which can eliminate remaining debt after a set number of qualifying payments. These programs are especially valuable for students pursuing careers in public service, education or nonprofit work. However, note that not everyone gets forgiveness, so it’s best not to completely rely on those.
- Public Service Loan Forgiveness (PSLF): Forgives federal student loans after 120 qualifying payments for borrowers working in government or nonprofit sectors.
- Teacher Loan Forgiveness: Provides loan forgiveness for teachers who work in low-income schools for at least five years.
To take full advantage of these programs, borrowers must meet strict eligibility requirements. They also need to ensure payments are made under a qualifying repayment plan. Note that loan services offer automatic payment options to ensure you don’t miss a payment.
Consider Refinancing for Lower Interest Rates
Federal loans have fixed interest rates, but refinancing with a private lender may offer a lower rate. Borrowers with strong credit and stable income can save on interest over time. However, refinancing comes with a major downside—federal protections are lost. Income-driven repayment plans and loan forgiveness programs no longer apply once a loan is refinanced through a private lender.
For parents with Parent PLUS Loans, refinancing can help secure better terms and lower monthly payments. However, before making a decision, it’s important to compare lenders. Lower rates can mean long-term savings, but losing federal benefits may not be worth it. Consider all options before committing to refinancing.
Take Advantage of Auto-Pay Discounts
Many loan servicers offer a 0.25% interest rate reduction for borrowers who enroll in automatic payments. While this may seem small, every bit helps when repaying student loans. Auto-pay ensures payments are made on time, avoiding missed payments and potential late fees.
Smart Borrowing Choices
Subsidized loans provide significant financial relief for families, but they come with limitations. While subsidized loans should be the first choice when borrowing for college, they may not cover all expenses. Parents should explore scholarships, grants and work-study programs to minimize student debt. Making informed choices today ensures a more manageable financial future after graduation.
by Melissa Brock | Feb 6, 2025 | Ask the admission office |
Which is better for students: internships or part-time jobs? Great question.
But first, consider this statistic: The National Association of Colleges and Employers (NACE) reported that 62% of 2023 graduating seniors took part in an internship at some point in their college career — and 59% of those were paid.
Many students struggle to manage their studies, finances and career goals, but your child’s goals, talents and experience often determine which of these two possibilities they choose.
Understanding the pros and cons of internships and part-time jobs might help. After reading this article, you’ll learn how internships and part-time jobs differ, their benefits and how to help your child choose the one that best suits their goals.
Understanding the Basics: What Are Internships and Part-Time Jobs?
Student internships and part-time jobs are common ways to get work experience. Each has varied benefits depending on your student’s goals. Career-focused internships build skills and provide industry insights. Students learn the practical applications of their academic learning through set goals, assignments and outcomes. Internships last weeks or months and are generally more instructional than paid.
Unstructured part-time occupations are more general. They focus on earning a living and facilitating students. Operations typically trump professional development in these situations. While they may not be related to your child’s career, part-time jobs help them develop transferable skills like communication, time management and problem-solving. Both alternatives are useful, but recognizing their main distinctions is the first step to choosing one that meets your child’s needs and goals.
Internships: A Gateway to Professional Experience
Students seeking a career benefit from internships. These occupations let them experience an industry’s daily operations. They offer projects and activities that teach industrial conventions, technical skills and interpersonal dynamics.
For example, an internship in digital marketing may involve developing content, reviewing campaign results and attending strategy sessions with experienced mentors. Your child can learn and implement what they study with this hands-on experience.
Internships also help with networking. As an intern, they’ll work with professionals who may mentor or promote them. Many employers consider internships a trial period for possible hiring, so these connections can lead to future chances. Internships show future employers that your child has taken the initiative to get relevant experience, distinguishing them from academic prospects. Some unpaid internships are worth the time and effort because they gain information, skills and professional connections.
Part-Time Jobs: Flexible Work and Income
On the other hand, part-time jobs can help students manage work and school while earning a living. They require fewer hours than full-time jobs, making them more flexible for students. Part-time employment provides crucial workplace skills for any retail, hospitality or office career.
For example, retail customer service (“Can I help you coordinate that outfit?”) improves communication and problem-solving, whereas barista employment (“Whip or no whip?”) improves multitasking and time management.
However, part-time jobs do not always allow students to adapt their hours to exams and deadlines, creating a challenge when balancing academic and work commitments.
For students feeling overwhelmed, questions like “How to write my college paper fast?” often come to mind as they struggle to manage their workload effectively.
However, such challenges make it essential for students to evaluate whether part-time work can fit into their academic and personal responsibilities without causing undue stress.
Comparing the Benefits: What Are the Gains from Each?
Both internships and part-time work have benefits, but which your child prioritizes depends on their goals and circumstances. Industry-specific information and practical experience are best gained through internships.
For example, graphic design students may intern at a design agency to work on real customer projects, get expert criticism and improve their creativity. These experiences enhance their field knowledge and give them an edge when searching for jobs after graduation. Internships offer:
- Industry-specific knowledge
- Networking opportunities
- Resume enhancement
- Career exploration
However, students wanting financial security or skill development may consider part-time jobs. Even without industry experience, they teach soft skills like cooperation, adaptability and customer service.
For example, working in a busy restaurant helps them focus, handle stress and work with varied individuals. These transferable talents can boost their employability in any sector. Choosing between internships and part-time jobs relies on priorities — professional advancement or quick revenue? Part-time jobs may more readily help with:
Which Option Builds More Professional Connections?
Professional networking is a major benefit of internships. These programs immerse students in an industry and offer networking and professional interaction. In an internship, students may attend team meetings, work on projects or present to stakeholders. These experiences help build relationships with mentors, supervisors and colleagues who can offer advice, references and employment leads.
Part-time work may not connect your child with industry specialists. They may build close ties with coworkers or bosses, but these professions rarely expose them to industry-specific networks. Part-time employment teaches students how to create rapport and maintain professional relationships, which are useful in any career.
Here’s the deal: Whether applying for internships or part-time jobs, networking and professionalism are always valuable.
Learn more: Paying for College and Ways to Get College Paid For
How Do Internships and Part-Time Jobs Impact Academic Performance?
Many students struggle to balance their jobs and academics, and the type of work they pick can affect their performance. Part-time jobs and internships often both allow students to adapt their hours during exams and project deadlines.
However, part-time work, especially in fast-paced industries like retail or hospitality, can cause burnout. It’s important to balance employment and academics, whether your child works an internship or part-time.
Financial Considerations: Paid vs. Unpaid Opportunities
Many internships are unpaid in competitive areas like media, fashion and non-profits — or they may offer small stipends. You can usually find paid internships in IT and engineering.
Not getting paid might be a major downside for students who need a consistent income. However, part-time work usually pays well and provides a steady income. Students can look into part-time retail, hospitality or freelancing jobs. These jobs can cover rent and tuition while maintaining flexibility. They offer financial independence to many students but may not offer career-specific training like internships.
Ultimately, your child should decide whether they prefer professional expertise over instant earnings.
Learn more: Why is College so Expensive? and How to Reduce College Costs
Does Field of Study Influence the Decision?
Your child’s academic discipline also determines whether they choose an internship or part-time work. Engineering, health care and legal students typically require internships. Your child can construct a professional portfolio and acquire technical skills with hands-on experience related to their education. An engineering intern may work on design and analysis projects, whereas a pre-med student may assist with clinical chores to boost their resume.
However, part-time work may aid students in humanities, liberal arts and general business who don’t need technological skills. These jobs can teach your child soft skills like communication, organization and problem-solving, which are appreciated across industries. For students pursuing computer science or software engineering, internships can be extremely valuable — particularly for those looking to hire backend developers in the future or who understand team dynamics in tech environments. Some part-time employment, including freelance writing or virtual assistance, might help your child earn money and obtain valuable skills. Your child’s pick should match their field’s expectations.
Which Option Offers More Flexibility?
Flexibility is a key factor for students trying to manage their jobs, school and home life. Part-time jobs are usually more flexible. Many retail and hospitality companies or service jobs know students have busy lives, so they provide flexible hours for classes, exams or holidays. This flexibility is especially helpful for students who balance various tasks like clubs, internships or taking care of others.
Internships are very helpful for building a job, but they often don’t offer much flexibility. Many jobs have set hours or need students to work full-time during certain times, like summer break.
Can Internships Lead to Full-Time Employment?
One of the best reasons to do an internship is that it can help your child get a full-time job later. Many companies use internships to find and prepare future workers. Employers prefer to hire candidates who have already been taught and know how their organization works. For instance, a tech company might give full-time jobs to interns who have done well in their code or software development work during the internship.
Part-time jobs can sometimes lead to permanent positions, but this usually happens only if the job matches your child’s work goals. For example, a student working part-time in a law office might move into a full-time job there after graduation.
Internships are specifically designed to ease this transition, making them a strategic choice for students who want to secure a job in their chosen field immediately after graduation.
When deciding between an internship and a part-time job, consider your career goals and the types of opportunities available. If you’re interested in the hospitality industry, you can start your next job search in hospitality to find positions that fit your schedule and experience level.
Striking the Right Balance: Can Your Child Do Both?
Students can benefit from doing both internships and part-time work together. Your child can get professional training and earn money by working part-time during the school year and doing internships in the summer or winter breaks. For example, your child might work part-time as a barista during the school year to earn money and intern at a marketing agency in the summer to gain skills.
Balancing both requires good time management and self-control. Taking on too many responsibilities can cause your child to feel exhausted or affect their schoolwork. Setting clear priorities and planning maximizes every opportunity. Combining internships and part-time jobs can be a great option for driven students if your student can handle it all. (Some students just can do it all.)
Analyze the Pros and Cons of Internships vs. Part-Time Jobs
Help your child consider what they need most — experience in their field, extra income or a mix of both. Combining them may be preferable if your child’s schedule allows.
Finally, don’t underestimate self-care and time management. It’s tempting to chase possibilities, but your child’s education and health should come first. A weekly schedule or tool to track deadlines and hours can make a big difference in juggling work, school and life.
FAQs
Check out our frequently asked questions if you still have questions about which one will fit your student’s needs: internships or part-time jobs.
Is an internship or part-time job better?
It honestly depends on your child’s career goals, availability and commitment level. If your child wants to go into engineering, for example, an internship might be an ideal route because many engineering internships pay well. If your student can make it happen, they may want to consider doing both, particularly if they’re going into a field that usually doesn’t pay their interns.
Are interns considered part-time employees?
Yes, if they’re paid. They’re employees of a company and they are entitled to the same legal protections as other employees. However, if they are not paid, they are not considered employees of the company. Internships are highly regulated by the Department of Labor and have to meet certain requirements to be unpaid. If an internship doesn’t meet certain requirements, the internship must be paid.
Is $20 an hour good for an internship?
As always, it depends. It depends on your standards for payment, the industry’s standards and other factors. However, generally, $20 an hour might be low depending on the area in which the internship occurs. For example, in Los Angeles or New York, that might not be enough to live on, whereas in North Dakota, it might be an acceptable wage.
by Melissa Brock | Feb 3, 2025 | Ask the admission office |
Nursing is one of the most vital professions in the health care industry, offering opportunities for meaningful work, career stability and professional growth.
However, the journey to becoming a nurse comes with its fair share of financial challenges. Tuition costs, certification fees and other educational expenses can be overwhelming, especially for students who may face additional financial barriers.
Fortunately, minority nursing scholarships provide crucial support, helping students focus on their studies and professional development without the constant stress of financial burdens.
Importance of Minority Nursing Students in Colleges and Universities
Supporting minority nursing students is crucial for several reasons, particularly in the context of today’s health care landscape. Minority nurses can provide culturally competent care and offer unique perspectives and experiences that can enhance patient care, ensuring that health care services are sensitive to the cultural and social needs of diverse populations.
This is especially important in regions with significant minority populations, where health care disparities often exist. By supporting minority nursing students, we can help create a workforce that reflects the demographics of the communities they serve.
Encouraging minority nursing students in colleges and universities can also address the ongoing nursing shortage. As the demand for health care professionals continues to rise, it’s important to cultivate a diverse talent pool to meet the needs of an increasingly diverse patient population. By encouraging minority students to enter the nursing field through scholarships and mentorship programs, we can help fill this gap and ensure that all patients receive high-quality care.
Supporting contributes to the overall improvement of health outcomes in underserved communities. Research has shown that patients are more likely to seek care and adhere to treatment recommendations when they feel understood and respected by their health care providers. Minority nurses can bridge the gap between health care systems and marginalized communities, helping to build trust and improve access to care.
By providing financial assistance, mentorship and resources, we can empower these students to overcome barriers and succeed in their educational pursuits. This not only benefits the individual students but also enhances the quality of care provided in health care settings, ultimately leading to better health outcomes for all. Investing in minority nursing students is an investment in the future of health care, promoting equity and inclusivity in a field that serves everyone.
Why Minority Nursing Scholarships Matter
The nursing profession thrives on diversity. A diverse nursing workforce ensures that patients from all backgrounds receive culturally competent care, ultimately improving health care outcomes. However, many minority students struggle to finance their education, which can prevent them from entering the field. Minority nursing students often face:
- Financial barriers
- Lack of mentorship opportunities
- Systemic inequalities
Scholarships designed specifically for minority nursing students help bridge this gap by providing financial assistance to those who need it most.
Beyond financial relief, scholarships also empower students by opening doors to mentorship programs, networking opportunities and career advancement. With adequate funding, aspiring nurses can concentrate on honing their skills, complete clinical training and gain valuable experience, setting themselves up for long-term success in the health care industry.
Scholarships and financial aid specifically designed for minority students can alleviate some of these burdens, allowing them to focus on their studies rather than worrying about how to pay for their education. This financial support is vital for increasing enrollment and retention rates among minority nursing students, ultimately leading to a more diverse nursing workforce.
Financial Aid Opportunities for Minority Nurses
Many minority students come from low-income families and may struggle to afford tuition, textbooks, and other essential expenses associated with nursing programs. Scholarships, grants and loans specifically designed for minority students can make a significant difference in their ability to enroll in and complete nursing programs.
Various organizations and institutions offer scholarships targeted at minority nursing students. Organizations like the National Black Nurses Association and the Hispanic Nurses Association offer scholarships to support minority students in nursing. These scholarships often consider academic performance, community service and leadership potential, encouraging students to excel in their studies while giving back to their communities.
Grants, such as those offered through the Federal Pell Grant program, provide funding that does not need to be repaid, making them an excellent option for students who demonstrate financial need. Some states also offer specific grants for minority students pursuing nursing, further expanding the financial support available.
What about loan forgiveness programs? I’m not a huge fan of loan forgiveness programs, as many students who apply for loan forgiveness may not actually receive forgiveness. However, it can benefit minority nursing students in some situations, especially those who commit to working in underserved communities after graduation.
Finally, financial aid opportunities often come with mentorship programs that connect students to experienced nurses and health care professionals. These relationships can provide guidance, support and encouragement, helping minority nursing students navigate the challenges of their education and future careers.
Long-Term Benefits of Scholarship Support
Securing minority nursing scholarships is more than just a way to pay for school — it’s an investment in your future. Financial support allows students to complete their education without accumulating excessive debt, making it easier to focus on clinical training and career development.
Scholarships also pave the way for long-term professional growth by connecting students with influential mentors, job opportunities, and continuing education programs. As a result, minority nursing graduates enter the workforce with strong financial stability and a solid foundation for career advancement.
How to Find Scholarships for Minority Nursing Students
The first step to securing funding is thorough research. Numerous organizations, foundations, and educational institutions offer scholarships tailored to minority nursing students. Some of the most well-known scholarship providers include:
Staying proactive is key. Make it a habit to frequently check scholarship databases, college financial aid offices and professional nursing organizations for updated funding opportunities. By staying informed, you increase your chances of securing financial aid that aligns with your needs and career aspirations.
How to Strengthen Your Scholarship Applications
Applying for scholarships can be competitive, but with a strategic approach, you can stand out from the crowd. Here are some actionable tips to increase your chances of success, and reach out to melissa@collegemoneytips to get a full plan for applying for scholarships.
1. Understand the eligibility requirements.
Every scholarship has specific criteria, such as GPA requirements, financial need, minority status and enrollment in an accredited nursing program. Before applying, carefully review each scholarship’s requirements to ensure you qualify.
2. Craft a compelling personal statement.
Your personal statement is your opportunity to shine. Use this section to highlight your background, career aspirations, and why you are passionate about nursing. Share personal experiences that shaped your desire to pursue a nursing career and explain how the scholarship will help you achieve your goals.
3. Meet deadlines and follow instructions.
Missing a deadline can mean losing out on crucial funding. Keep a calendar with all scholarship deadlines and submission requirements. Pay attention to details — some scholarships may require essays, recommendation letters or proof of financial need.
4. Leverage additional resources.
Utilize financial aid offices, mentorship programs and professional nursing organizations for guidance. Many of these resources offer workshops, webinars and one-on-one advising to help students navigate the scholarship application process effectively.
Role of Scholarships in Increasing Diversity in Nursing
Scholarships play a crucial role in increasing diversity in nursing by providing financial support to underrepresented groups. The nursing profession has long faced challenges related to diversity, with significant disparities in representation among racial and ethnic minorities. Offering scholarships specifically targeted at these populations, educational institutions and organizations can help bridge the gap and create a more inclusive workforce. Scholarships can also:
- Alleviate financial pressures, allowing students to focus on their studies rather than worrying about how to pay for tuition, books and other expenses.
- Provide additional resources and support systems. They can also foster a sense of community among recipients. This can include mentorship opportunities, networking events, and academic support services.
- Help minority nursing students build connections with peers and professionals in the field, which can enhance their educational experience and improve their chances of success in their careers.
- Contribute to retaining minority students in nursing programs.
Scholarship programs can also play a role in changing the perception of nursing as a career among minority communities. By highlighting successful minority nurses and their journeys, scholarship initiatives can inspire young people to consider nursing as a viable and rewarding profession. This can lead to increased interest in nursing careers among underrepresented groups, further enhancing diversity in the field.
Look for Scholarships to Boost Your Future
The demand for skilled nursing professionals continues to grow, and minority nurses play a crucial role in shaping a more inclusive and effective health care system. If you are a nursing student facing financial challenges, don’t let money be a barrier to your dreams.
By actively seeking out minority nursing scholarships, crafting strong applications and leveraging available resources, you can secure the funding you need to thrive in your nursing career. Scholarships enable underrepresented groups to pursue nursing education, fostering a more inclusive workforce. The support that accompanies scholarships, such as mentorship and networking opportunities, further contributes to the success and retention of minority students in nursing programs.
A diverse nursing workforce is crucial for delivering culturally competent care, ultimately leading to better health outcomes for patients from various backgrounds. As the health care landscape continues to evolve, investing in scholarships for diverse nursing students is essential for building a health care system that reflects and meets the needs of the communities it serves.
FAQs
Can you get a scholarship for being a minority?
Yes, you can. Scholarship committees can name specific minority groups for eligibility, but it’s a good idea to check into the full list of qualifications, including income requirements, for each scholarship. It’s important to note that the Supreme Court prohibited the use of race-based affirmative action in college admissions, meaning that colleges and universities can no longer offer race-based admission. In other words, students cannot receive merit-based aid from colleges and universities related to their race.
How to get free money for nursing school?
Start researching scholarships, prepare your applications and invest in your future as a health care professional. Your dedication to nursing deserves recognition and support, and with the right financial aid, you can achieve your goals and make a lasting impact in the field of health care.
In addition, file the FAFSA to learn more about the institutional aid you can qualify for. Reach out to [email protected] to come up with the right scholarship plan for you.
