Private Student Loan Advice & College Financing Resources

Getting your financial aid offer is an exciting step in your college journey. If you notice there is still a gap to cover, it can feel a little daunting at first. The good news is there are clear, practical ways to build a plan and keep moving forward.  This guide walks through how to close that gap step by step. You will start by maximizing funding you do not have to repay, then explore ways to reduce costs, and finally understand how to use student loans thoughtfully if you need them.  Step 1: Understand Your “Gap” Number   Before diving into solutions, start with a clear picture of what you actually need. Confirm your total cost of college and identify the portion that isn’t yet covered, your funding gap. Once you know your gap, you can explore ways to increase aid, reduce expenses, and build a strategy that works for your situation.  The key is to follow the right order. Maximize funding you don’t have to repay first, then make thoughtful decisions about the rest.  Colleges provide a Cost of Attendance (COA), which goes beyond tuition. It usually includes housing, meals, books, transportation, and personal expenses. Subtract any scholarships, grants, or other free aid you have received, and the remainder is your net cost, the true amount you need to cover.  Funding gap formula:  Net cost = COA − (grants + scholarships)  If you’re in grad school or considering enrolling, the Ascent’s Grad School Funding Calculator can help you identify your funding gap quickly and clearly, so you know exactly what you need to cover.  For undergrad students, Ascent offers a Student Loan Calculator to help you estimate your monthly payments and total loan costs.   Step 2: Ask About a Financial Aid Appeal  If your financial situation has changed, you may be able to request a review of your aid offer. This is often called a financial aid appeal or professional judgment review.  It’s worth exploring if your family has experienced something like a job loss, reduced income, unexpected medical expenses, or other significant life changes. Schools understand that financial situations evolve, and many have a process in place to reassess your aid.  Reaching out to your financial aid office is the first step. From there, you’ll typically submit a short explanation of your situation along with documentation that supports it.  Being clear, specific, and timely can make a difference here. Even small adjustments to your aid package can help reduce your overall gap.  Step 3: Focus on Scholarships and Grants First  Before turning to borrowing, invest time in scholarships and grants. These forms of aid reduce what you will need to repay later, making them a smart first step. Start with trusted resources such as Federal Student Aid and  College Board Scholarship Search.    Don’t overlook local opportunities. Scholarships through your school, community organizations, employers, or other local groups often have fewer applicants and can be easier to win. From there, you can expand your search to state and national programs.  Consistency is key. Set aside time each week to apply, reuse materials such as resumes or essays, and track deadlines to stay organized. Even smaller awards add up over time and can make a meaningful difference in your total college costs.  Some scholarships reopen regularly, giving you more chances to win. For example, Ascent’s $1,000 “Plan, Pay and Succeed” Scholarship Giveaway awards one student $1,000 each month. The application takes just a few minutes and does not require an essay. Students ages 14 and older who are enrolled at least half-time in high school, college, or a technical training program can apply, and because the scholarship runs monthly, you can enter again for another chance to win.  Step 4: Make Sure You’ve Used All Available Aid  If you haven’t already, completing the FAFSA (Free Application for Federal Student Aid) and any required school or state forms is an important step. Even if you’re unsure whether you’ll qualify for need-based aid, these forms can unlock access to additional resources.  This can include grants, institutional aid, and work-study opportunities. Some schools also offer payment plans that allow you to spread costs across the semester, which can make expenses more manageable.  Taking full advantage of what’s already available ensures you’re not leaving potential funding on the table.  Step 5: Look for Ways to Reduce Your Costs  When you’re working to close a gap, lowering your expenses can be just as impactful as finding new funding.  Small adjustments, such as choosing a different housing option, renting textbooks instead of buying new ones, or selecting a meal plan that better fits your habits, can add up quickly.  It’s also worth double-checking your academic plan. Making sure you’re taking the right courses and staying on track for graduation can help you avoid unexpected costs later.  These changes don’t have to be drastic to be effective. Even modest savings can reduce how much you need to cover elsewhere.  Step 6: Consider Income Options While in School  Earning income while in school can reduce how much you need to borrow. For example, work-study programs are federal jobs offered through your school, often on campus, and are designed around your class schedule. To apply, you must indicate interest on the FAFSA. If awarded, the school will provide a job listing and set the number of hours you can work.  Part-time jobs or internships off-campus are another option. Choose roles that fit your schedule and ideally build skills for your future career. Before accepting a job, calculate your take-home pay versus any extra costs like commuting, parking, or materials. Even a few hundred dollars a month can reduce how much you need from loans.  Tip: If you’re looking for internship help, check for programs that connect students with opportunities and career support. For example, Ascent offers the AscentUP internship program to help students explore internships and build career-ready skills.  Step 7: Understand Your Loan Options  After maximizing scholarships, grants, and income, many students still have a funding gap. This is where loans often become necessary.  First, you can consider whether federal or private student loans, or a combination of both,  work best for you.  Federal student loans: Offered by the government, these loans have fixed interest rates, standardized repayment terms, and protections like deferment or income-driven repayment. To apply, complete the FAFSA and review your award offer. Federal loans are often the first choice because of these protections.  Private student loans: Offered by banks, credit unions, and lenders like Ascent, private loans can cover the remaining cost of attendance. Terms vary based on credit, income, and cosigner status.  Here’s how the private loan process typically works:  Submit an application to the lender with your personal, financial, and school information, including how much you plan to borrow. Most applications are completed online and only take a short time to fill out.  Many students apply with a cosigner for student loans, often a parent or trusted adult, since most students don’t yet have established credit or income. A cosigner is equally responsible for the loan and can help improve approval chances and secure a lower interest rate.In fact, Ascent borrowers who apply with a cosigner are 4x more likely to be approved.*  After approval, the lender requests school certification. Your school confirms your enrollment, cost of attendance, and that you are not borrowing more than your remaining need.  Once finalized, funds are sent directly to your school and applied to tuition and other charges. Any remaining amount is refunded to you for approved expenses like housing, books, or other education-related costs.  Repayment options vary, but many private student loans offer in-school options such as deferred payments, interest-only payments, or small fixed payments  Tools such as Ascent’s Student Loan Calculator can help you plan for both borrowing and repayment confidently.  Step 8: Borrow Responsibly and Revisit Your Plan  Borrowing can be a useful tool, but it works best when it’s part of a thoughtful plan.  Keeping your total borrowing as low as possible, understanding your future monthly payment, and checking in on your plan each semester can help you stay on track.  If you’re able to make small payments while in school, even covering interest, it can reduce your total cost over time. And as your situation changes, revisiting your approach ensures it continues to support your goals.  Bottom Line  If your financial aid isn’t enough, you still have a clear path forward.  Start with scholarships and grants, explore ways to reduce costs, and look for opportunities to earn income while in school. If you need to borrow, take time to understand your options and choose a plan that fits your budget and your goals.  With the right approach, you can build a strategy that works for you and keep your journey toward graduation moving forward with confidence.  Learn More with Ascent   Paying for college can be challenging, and Ascent is committed to providing students and families with the financial resources needed to pursue their dreams.      From financial wellness resources to our flexible private student loans and undergraduate student loans, we are here to help students and their families make informed decisions about their future in college, and beyond.  Frequently Asked Questions  What if my financial aid doesn’t cover housing and meals?  Start by confirming what your school included in its cost estimate, then compare housing and meal options to find potential savings. From there, explore additional scholarships, income options, and payment plans before turning to loans.  Can I combine scholarships with a private student loan?  In many cases, yes. Scholarships and grants are typically applied first, and loans may be used to cover remaining eligible expenses. Schools may adjust aid if total funding exceeds your cost of attendance.  Do I need a cosigner for a private student loan?  It depends on your financial profile and the lender. Many students apply with a cosigner to strengthen their application. If you do, it’s important that both of you understand the responsibility involved.  Should I consider federal loans before private loans?  Many students review federal loan options first because of their standardized terms and protections. Private loans can then help cover any remaining gap, depending on your needs and eligibility.  *4x higher acceptance rates were observed between November 2024 through January 2025 across all products when a loan application is cosigned vs without a cosigner. Ascent’s minimum credit requirements vary based on loan product, credit history, and whether you’re applying with a cosigner. You can see your rates without impacting your credit score to help you determine which product could be best for you based on your unique circumstances. 

Applying for a private student loan can feel overwhelming, especially if it’s your first time dealing with things like credit, interest rates, and loan paperwork. You might be wondering how approval works, what lenders look for, or how you can improve your chances of getting approved.  The good news is that there are simple, practical steps you can take to make your application stronger from the start!  Whether you’re applying on your own or with a cosigner, preparing ahead of time can help you find better options and feel more confident in the process.  Here are seven essential tips to help you improve your private student loan application and set yourself up for success.  1. Check Your Credit Before You Apply  Your credit history plays an important role in many private student loan applications. Before you apply, take time to review your credit report and FICO® Score so you know where you stand.  Many banks and credit card companies offer free access to your score, and you can also request your credit report through Experian, Equifax, or TransUnion.   Reviewing your credit early helps you understand what’s affecting your score and where you can improve. If you’re just starting out, focus on making every payment on time, keeping credit card balances low, and avoiding maxing out your limit. Small habits like setting up autopay or paying more than the minimum when you can, can build strong credit over time and make the process feel more manageable.  2. Dispute Errors on Your Credit Report  Checking your credit is important, but accuracy matters just as much. Your credit report shows the full picture of your borrowing history, including every loan, credit card, and payment in your name. Lenders review this entire report, not just your score, when evaluating your application.   As you review it, look for anything that does not seem right, such as accounts you do not recognize, incorrect balances, or payments marked late when you paid on time.  If you find an error, take action. You can dispute inaccurate information directly with the credit bureau and the lender that reported it. Fixing mistakes early can help protect your credit and prevent small issues from affecting your approval.  3. Apply With a Cosigner When It Makes Sense  If you’re new to credit or have a limited credit history, applying with a cosigner can strengthen your application. A cosigner is someone—often a parent or trusted family member—who agrees to share responsibility for the loan.  Because many cosigners have longer credit histories, their involvement can help:  Increase approval chances  Improve interest rate options  Unlock higher borrowing limits  At Ascent, we saw 4x higher approvals offs when students apply for an Ascent loan with a cosigner*. For many students, having a cosigner is a practical way to access better loan terms while building their own credit at the same time.  Also, keep in mind that some lenders, like Ascent, offer a cosigner release which helps set students up for financial success and removes cosigner’s responsibility.  4. Borrow Only What You Need  Private student loans are usually limited to your school’s certified cost of attendance, which includes tuition, housing, meals, books, and basic living expenses. Before applying, take a few minutes to review these costs and think honestly about what you really need to cover.  A helpful approach is to start with your total school costs, then subtract any money you already have from savings, scholarships, grants, or family support. The remaining amount is often a better estimate of what you actually need to borrow.  Applying for scholarships  Completing the FAFSA (Free Application for Federal Student Aid) each year to access federal student loans and other university-based financial aid  Contacting your school’s financial aid office to negotiate your financial aid offer.  Taking advantage of on-campus work-study programs to make some money during school  Borrowing only what you need now can make a big difference later. Smaller loan balances often mean lower monthly payments after graduation and more flexibility as you start your career.  5. Show Strong Financial Habits  Lenders look for signs that borrowers can manage money responsibly. Simple habits can make a meaningful difference in how your application is reviewed.  Focus on:  Paying all bills on time  Keeping credit card balances low  Avoiding unnecessary debt  Maintaining existing accounts in good standing  These habits strengthen your credit profile over time and signal reliability to lenders.  6. Do Your Research on Loan Types  When you apply for a private student loan, you usually have the choice between fixed-rate and variable-rate loans. Understanding the difference can help you pick the option that fits your circumstances.  Variable-rate loans can go up or down over time with the market. This can save you money if you plan to pay off your loan quickly, but it also comes with more uncertainty.  Fixed-rate loans stay the same for the life of your loan, so your payments won’t change. They can give you peace of mind, but your rate won’t drop if market rates go down.  Doing a little research now can help you choose a loan type that works for you today and keeps your options open for the future.  7. Apply When You're Financially Ready Timing matters. Applying when your credit is in good shape, your cosigner is also prepared, your documents are organized, and your school information is confirmed can make the process smoother and less stressful.  Before you apply, make sure you have:  Your school and program details  Cost of attendance information  Any income documentation, if required  A cosigner lined up, if needed  Having everything ready can help prevent delays, reduce mistakes, and make it easier to get approved quickly. It also gives you a clear picture of how much you actually need to borrow so you can plan with confidence.  What If You’re Not Approved Right Away?  If your application isn’t approved on the first try, it doesn’t mean you’ve failed, and it doesn’t mean you’re out of options. Many students strengthen their applications by adding a cosigner, improving their credit, or adjusting their borrowing amount.  About Ascent   Ascent is a mission-driven fintech company committed to redefining student lending through a focus on access, affordability, and lasting economic impact. Backed by institutional capital, we offer innovative loan options for college and career training programs—helping more students qualify, with or without a cosigner.    But funding is just the start. From career readiness tools to financial wellness resources to over $330,000 in no-essay scholarships, everything we build is designed to turn education into real opportunity.    * 4x higher acceptance rates were observed between November 2024 through January 2025 across all products when a loan application is cosigned vs without a cosigner. Ascent’s minimum credit requirements vary based on loan product, credit history, and whether you’re applying with a cosigner. You can see your rates without impacting your credit score to help you determine which product could be best for you based on your unique circumstances. 

Heading to college in 2026 is exciting, but paying for it can feel stressful, especially if this is your first time dealing with financial aid or student loans.   The good news is you don’t have to figure it all out at once. Starting early gives you a big advantage. You can find scholarships, understand federal aid, and figure out which student loan options make sense for you.  In this guide, we will walk you through tips on student loans so you know what to expect and exactly how to prepare.  Start With the FAFSA as Soon as It Opens  One of the first steps every high school senior should take, even if you plan on taking out student loans, is completing the FAFSA (Free Application for Federal Student Aid).  This form determines your eligibility for federal grants, work-study, and federal loans and many colleges and scholarships use it to award aid, too.  For the 2026–27 academic year, the FAFSA opened up on October 1, 2025, and the deadline to submit in time for most federal aid is June 30, 2027. Submitting early gives you the best chance at available grants and need-based aid, which don’t have to be repaid.   Even if you don’t think you’ll qualify for need-based aid, it’s still worth submitting. You might be surprised by what you’re eligible for, and completing it keeps your options open.  Apply for Scholarships Early and Often  Scholarships are one of the easiest ways to reduce how much you might need to borrow for college. Start looking early and check opportunities at the local, state, and national level, including awards from colleges, community groups, and employers.  Even smaller scholarships can add up fast, so don’t overlook them. And remember, Ascent also offers monthly scholarship giveaways!  For more information, check out our webinar on How to Pay for College with Scholarships, here.  Do Your Homework on Student Loan Options  We know student loans can feel overwhelming, but taking a little time now to understand your options can make a big difference later. The goal is to find a private student loan that works for your budget and your future.  Private student loans typically come in two types: fixed-rate and variable-rate:  Variable-rate loans can go up or down over time with the market. This can save you money if you plan to pay off your loan quickly, but it also comes with more uncertainty.  Fixed-rate loans stay the same for the life of your loan, so your payments won’t change. They can give you peace of mind, but your rate won’t drop if market rates go down.  Doing a little research now, comparing options, and asking questions can help you pick the loan that’s right for you. And remember, you don’t have to figure this out alone. Parents, guardians, your school’s financial aid office, and the team at Ascent can help you weigh your choices and feel confident about your decision.  Plan How Much You Really Need to Borrow  When getting ready to apply for a private student loan, plan how much you really need to borrow and only borrow what is necessary.   Private lenders limit loans to the cost of attendance, but this does not equal just tuition – this includes things like housing, textbooks, even a laptop. Your college will certify your cost of attendance when you apply and you can likely even see that when you decide to enroll at that school.  Smart budgeting can help you minimize your loan amount and avoid extra interest and repayment stress after graduation.  Consider a Cosigner for Student Loans  If you’re new to credit or have a limited credit history, applying with a cosigner can strengthen your application. A cosigner is who agrees to share responsibility for the loan, often a parent or trusted family member.   Because many cosigners have longer credit histories, their involvement can increase your chances of approval, improve your interest rate options and potentially unlock higher borrowing limits.   For many students, this is a practical way to access better student loan terms while building their own credit at the same time. Also, keep in mind that some lenders, like Ascent, offer a cosigner release which helps set students up for financial success and removes cosigner’s responsibility.  Keep Your Credit and Financial Habits Strong  If you decide to use private student loans, your credit score (or a cosigner’s score) may affect approval and interest rates. Learn how credit works, pay bills on time, and avoid opening too many new accounts too quickly. Good habits now can set you up for better borrowing terms and financial confidence later.  You’ve got this, and your financial planning now can set you up for success long after graduation!  Looking for more information? Check out our Ultimate Guide to Budgeting for College Students.  Learn More with Ascent  Navigating the student loan application process can be challenging, and Ascent is committed to providing students and families with the financial resources needed to pursue their dreams.     From financial wellness resources to our flexible private student loans and undergraduate student loans, we are here to help students and their families make informed decisions about their future in college, and beyond. 

The elimination of Grad PLUS loans will fundamentally reshape how graduate students finance their education, challenging both access and affordability. Financial aid offices must proactively adapt policies, train staff, and guide, students to navigate a more complex funding system. 

Whether you're currently in school, preparing to start, or managing your loan repayment, Ascent provides practical tools and insights to help you make informed financial decisions with confidence. Paying for college can be confusing, especially with all the recent changes to financial aid and student loans. To help make things a little clearer, we partnered with Mission Federal and the University of San Diego to host “Understanding Student Loan Changes Amidst Uncertainty,” a webinar designed for students and families.   Ascent’s SVP and GM of AscentUP, Allie Danziger, Mission Fed's VP of Marketing and Community Relations, Neville Billimoria, and University of San Diego’s Director of Financial Aid, Kellie Nehring, shared helpful advice on FAFSA updates, scholarships, student loans, and how to plan for different college paths, whether that’s a four-year university, a community college, or something in between.  If you missed the webinar, no worries! You can watch it here but we’ve also summarized the learnings below.   Changes to Federal Loan Policy  Big shifts are on the horizon—new federal policy changes are set to reshape repayment, forgiveness, and loan eligibility in ways that every student and family should know about.  Starting July 1, 2026, federal loan regulations will undergo major updates that will directly impact how students and parents pay for college, beginning with the 2026–2027 academic year. Graduate students will no longer be able to borrow Grad PLUS Loans, a change that could make financing advanced degrees more challenging. For undergraduates, Parent PLUS Loans will still be available, but borrowing will be capped at $20,000 per year—posing funding gaps for families at higher-cost schools while having less effect at more affordable institutions. The good news? If you’re starting school this Fall and plan to use Grad PLUS or Parent PLUS Loans, your borrowing won’t be affected for the upcoming academic year. Still, these upcoming changes are prompting schools to explore creative solutions, from expanding institutional loan options to connecting families with private lenders. For students and parents alike, understanding these shifts early is key to preparing for the future of college financing.  Parent PLUS Loans have unique repayment rules that families should understand before borrowing. Eligibility requires a credit check, and repayment begins just 60 days after the second disbursement, often during the spring semester of a student’s first year. These payments cannot be deferred until six months after graduation, meaning parents may need to start making payments while their student is still in school. International students aren’t eligible for federal aid, but they may still qualify for other financial aid programs and resources.  Guidance for Navigating Student Loans  As you plan for the road ahead, it’s important to understand the key details of student loans to stay informed and make confident financial decisions.  Completing the Free Application for Federal Student Aid (FAFSA) each year is the first and most important step in determining your eligibility for federal financial aid. Depending on your situation, you may also need to fill out an institutional or state application to maximize your options. For many students, federal loans will play a key role: subsidized loans are need-based and don’t accrue interest while you’re in school, as long as your Student Aid Index is lower than your school’s cost of attendance. On the other hand, unsubsidized loans begin accruing interest right away, though repayment is deferred until six months after graduation or withdrawal. Once repayment starts, it’s critical to stay on track—missing payments, even during forbearance, can create lasting challenges. Remember, you’ll be repaying the loan servicer that manages your account, so building good habits now will set you up for success after graduation. The good news is that repayment plans can be tailored to your income, giving you some flexibility as you begin your career.  Federal student loan interest rates typically shift by about 5–10% each year and reset every July 1st for the upcoming academic year. In contrast, private lenders adjust rates which can make them more competitive depending on the market.   Ascent offers low rates and multiple benefits that help students plan, pay, and succeed in college. Our borrowers also receive access to our AscentUP program which provides tools, resources, and coaching, as well as access to paid internship opportunities, to support students on professional development, building confidence, developing new skills, and jumpstart dream careers.  More Ways to Pay  Beyond student loans, there are several ways to help make college more affordable.  Campus jobs offer flexible hours and valuable experience, often available through the financial aid office, athletics department, or housing office. If you qualify, federal work-study can provide an added chance to earn money while gaining valuable experience. The key is to explore these options early at the schools you’re considering, so you can combine resources and create a strategy that makes paying for college feel more manageable.  When it comes to paying for college, scholarships are the ultimate win— it’s free money you never have to pay back. There are scholarships out there for nearly everything—academics, athletics, leadership, volunteering, unique hobbies, and even your favorite ice cream flavor. The more you apply for, the more chances you have to stack up real savings. For students 14+, Ascent offers no-essay scholarships! Check out the latest opportunities and enter to win here!  As you navigate paying for college, remember that you don’t have to do it alone—your school’s financial aid team is there to support you. Whether it’s asking about scholarships, staying on top of deadlines, appealing for additional aid, or finding out who to contact about repayment options, reaching out early can make a huge difference. Building a relationship with the financial aid office not only helps you avoid frustration and discouragement but also ensures you have a trusted resource to turn to whenever questions come up. Don’t hesitate to ask plenty of questions, seek advice, and lean on the broader network of support around you. By gathering input from multiple sources and staying connected, you’ll be better equipped to make confident, informed decisions about your financial journey! 

Student loans are a hot topic these days, and for good reason. There have been massive shake ups in education under the Trump administration, from the proposed dissolution of the U.S. Department of Education to sweeping changes to how student loans could be administered and managed in the future. The potential impact of these proposed changes is not limited to undergrads and future college students and their families. With the cost of a master's degree averaging between $44,000 to $71,000, many graduate students also rely on federal student aid, such as Grad PLUS loans, to fund their continuing education. If you’re a grad student, you're probably wondering how these changes might impact your future and your ability to pay for graduate school. Let's walk through the potential changes and explore some alternative financial aid options, should Grad PLUS loans become unavailable. Key Takeaways Grad PLUS loans are a type of federal loan offered by the U.S. Department of Education that can cover up to the full cost of attending graduate school. Republican lawmakers have proposed changes to the federal student loan programs that administer graduate loans, including reduced caps on unsubsidized loans and eliminating Grad PLUS loans altogether. If these proposed changes become law, current graduate students will likely be grandfathered in, but future graduate students may need to seek alternative sources of financial aid. Scholarships, fellowships, need-based grants, graduate assistantships, work-study programs, federal unsubsidized loans, and private student loans are alternative funding options graduate students can consider.   What Are Grad PLUS Loans? Grad PLUS loans are a type of Direct PLUS loan specifically for eligible graduate and professional students. These credit-based federal loans are offered by the U.S. Department of Education and allow students to borrow up to the full cost of attendance (graduate tuition, fees, and living expenses) minus any other financial aid received. They come with a fixed interest rate and borrower protections, and they’re a popular option because federal unsubsidized loans often don’t cover the full cost of advanced degrees. According to recent federal data, Grad PLUS loans account for a significant portion of graduate student debt. As many as 1.8 million borrowers hold these loans, totaling up to $117.2 billion. This has caught the attention of some policymakers, who are starting to take a closer look at these loans. The high borrowing limits and growing debt load have sparked increased scrutiny of Grad PLUS loans, especially as discussions around the student loan crisis and reforms have intensified. Policymakers are raising the possibility of reform—or even elimination—as ways to reduce the overall burden of graduate-level debt. Will the Grad PLUS Loan Program be Cut? Discussions around eliminating the Grad PLUS loan program have gained traction on Capitol Hill, especially among Republican lawmakers who want to rein in federal spending on graduate education. These lawmakers argue that unlimited borrowing under the program inflates the cost of graduate degrees and places an undue debt burden on students. They’ve introduced bills such as the College Cost Reduction Act of 2024, which proposed eliminating Direct PLUS loans. While it didn’t pass, similar themes in legislation have been introduced in 2025. The Graduate Opportunity and Affordable Loans Act, introduced by Alabama Senator Tommy Tuberville in January 2025, proposes to eliminate the ability of graduate and professional students to receive Direct PLUS loans and sets the aggregate limit on unsubsidized loans to $65,000 for a graduate student. While the bill was referred to the Committee on Health, Education, Labor, and Pensions, it has yet to proceed. Even though neither bill targeting Grad PLUS loans has passed, they each signal lawmakers’ appetite for reforming graduate lending. That means potential changes to how students finance advanced degrees.  What Grad PLUS Loan News Means for Borrowers As policymakers debate the future of federal student aid, Grad PLUS loans are undeniably on the chopping block. For current and prospective graduate students, that adds another layer of uncertainty to an already stressful financial climate. Rising tuition costs and fewer affordable borrowing options could leave many students scrambling to cover expenses.  Finding student loans for graduate school, including from private lenders, will become more necessary for students who’ve exhausted free financial aid options.  Current Grad PLUS Borrowers Students already enrolled or recent graduates with active Grad PLUS loans probably won’t see major changes, at least in the short term. If Congress eliminates the program, existing borrowers will likely be “grandfathered” in, meaning they can keep their current loans and repayment terms as they are. The uncertainty around the Grad PLUS loan 2024-2025 cycle could complicate financial planning for those midway through multi-year programs. If you’re in either of these groups, pay close attention to Grad PLUS loan news developments and start researching backup funding strategies in case future borrowing under Grad PLUS is capped or phased out. Future Grad PLUS Borrowers Future graduate students might be at bigger risk of losing out on Grad PLUS funding. If this federal loan program is eliminated, students may need to rely more heavily on private loans to finance their education. While private loans are just as effective at funding advanced degrees and may offer additional benefits like access to career readiness tools, they may also come with tighter credit requirements, variable interest rates, and other considerations—so it is important to compare your options. This shift from federal to private loans could disproportionately impact students with limited or poor credit histories. As a result, some may delay graduate studies, choose lower-cost institutions, or seek employer-sponsored education benefits. Others may turn to part-time enrollment or work full-time when studying, lengthening the time needed to complete a degree. If you’re thinking about attending grad school, now is the time to start preparing: Compare graduate program costs and consider how you might pay for your desired program if Grad PLUS loans go away. Research and apply for graduate scholarships, fellowships, and other grants. To do so, you’ll need to complete the Free Application for Federal Student Aid (FAFSA) every year. Apply for graduate assistantships or federal work-study programs. Availability of these programs may impact your school choice.  Look into employer education benefits to help cover the cost of graduate school.  Take steps to build a strong credit profile, research private loan terms, and prepare to borrow if you still need to cover costs. Ascent Is Here to Help We know that paying for grad school is an important concern for all students, and that Grad PLUS loans have been a vital resource. Even if they go away, however, there are still options. Try to be selective about your desired program, pursue all your options for free financial aid, and take your time comparing lenders for private student loans.  Ascent can help you find the right loan terms and interest rate to support your graduate education, but we’re here for you beyond borrowing. Our resources for students and families offer guidance about paying for school, better budgeting, career-readiness, and more. Amid ongoing student loan changes, Ascent remains committed to empowering student success and financial wellness.  FAQs What alternative loan options are available if the Grad PLUS ends? If Grad PLUS loans are phased out, future graduate students should first explore financial aid that doesn’t need to be repaid such as scholarships, fellowships, grants, graduate assistantships, work-study programs, and employer tuition reimbursement programs. If there are any gaps in funding, graduate students should consider federal unsubsidized loans and private student loans. Can private student loans cover the full cost of grad school? In many cases, private student loans can cover the full cost of attending graduate school, from tuition and fees to living expenses. Private loans have unique eligibility and loan limits determined by the lender, and they usually depend on your credit history or income. That makes planning and comparing loans from different providers a necessity. Will Grad PLUS loans be forgiven? Grad PLUS loans may be eligible for forgiveness under existing federal programs like the Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) plan forgiveness, provided you meet the necessary qualifications. However, there’s no separate forgiveness initiative specifically for Grad PLUS loans at this time.

Student loan borrowers have a lot on their minds–and for good reason. Executive orders threatening the possible elimination of the Department of Education and a variety of other student loan changes introduce new disruptions to an already stressful situation. The 8th U.S. Circuit Court of Appeals’ recent decision to block the Biden administration’s SAVE Plan introduced even more uncertainty. Many borrowers on the Saving on Valuable Education (SAVE) Plan now find themselves in limbo, not paying on their loans or accruing interest, but not progressing toward loan forgiveness. Students, borrowers, and their families need to understand how recent decisions and actions by courts and Congress can impact their loans and repayment plans. Key Takeaways The 8th U.S. Circuit Court of Appeals upheld an injunction blocking the Biden administration’s Saving on Valuable Education (SAVE) Plan in February 2025, halting its implementation.  The Biden administration created the SAVE Plan in 2023 as an income-driven repayment plan to streamline loan payments and forgiveness for many borrowers. As a result of the court’s decision, SAVE Plan enrollees currently have their loans in forbearance, with no payments due or interest accrued. On March 26, 2025, the U.S. Department of Education reopened applications for Income-Based Repayment (IBR), PAYE, and ICR plans. Ascent provides tools to help students understand the benefits and drawbacks of student loans, including how the cost of education can impact their chosen degree’s return on investment. Understanding the SAVE Plan and Court Actions The SAVE Plan is an income-driven repayment (IDR) program introduced by the Biden administration in 2023. It replaced the Obama-era program, which was formerly known as Revised Pay As You Earn (REPAYE). The goal of this plan was to lower monthly student loan payments and offer borrowers a faster path to forgiveness that considered their income and family size more heavily than previous plans. However, in February 2025, a federal court injunction prevented the U.S. Department of Education from implementing the SAVE Plan and parts of other IDR plans. As a result, IDR and online consolidation applications became temporarily unavailable. The legal challenges to the SAVE Plan have been ongoing, with the following key dates:  August 2023: The SAVE Plan officially launched, replacing the REPAYE Plan. Borrowers could enroll to access lower monthly payments and interest protections. October 2023: Major elements of the SAVE Plan took effect, including an increased income exemption and a stoppage of unpaid interest growth for qualified borrowers. March 2024: Multiple Republican-led states challenged the SAVE Plan, arguing overreach of executive authority.  July 2024: A preliminary injunction via a federal court blocked full implementation in July 2024. August 2024: The Supreme Court declined to fast-track an appeal, meaning the SAVE Plan remained blocked while litigation continued. February 2025: The 8th U.S. Circuit Court of Appeals upheld the injunction, citing concerns over the Education Department’s authority and potential financial impacts on states. The online IDR application is available again (as of March 26, 2025). Borrowers can still apply for Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) plans. Loan consolidation is also available. What Happens to Borrowers Enrolled in the SAVE Plan? Borrowers on the SAVE Plan are directly impacted by these legal battles. Currently, SAVE Plan participants are placed into administrative forbearance; they’re not legally required to make monthly payments, and the interest on their loans won’t accrue. For those on a tight budget, that can be helpful. That said, forbearance isn’t forgiveness, and months spent in forbearance don’t count toward loan forgiveness programs like the Public Service Loan Forgiveness (PSLF) or traditional income-driven repayment forgiveness. The U.S. Department of Education expects this pause to continue until at least December 2025, unless court rulings change the situation. If you’re a borrower in forbearance, stay up to date on the status of your loans. Ensure your loan servicer has your up-to-date contact information, and check in with studentaid.gov for the latest student loan news. How Are Loan Forgiveness Options Affected? The SAVE Plan block greatly impacts loan forgiveness paths, including PSLF. Because enrolled borrowers are now in administrative forbearance, the months they spend without making payments don’t count toward the 120 qualifying payments for PSLF or the 20 to 25 years necessary for IDR forgiveness. That pause could delay borrowers’ progress unless future policy changes address the gap. SAVE Plan borrowers may want to explore alternative IDR plans like PAYE or IBR to stay on track toward PSLF or IDR forgiveness. Alternatively, if you’ve already completed 120 months of qualifying employment, the PSLF Buyback program lets you “buy back” certain months spent in forbearance, helping you stay on track toward loan forgiveness. Knowing what other repayment options are available can make a world of difference when managing student debt. What Will Happen to Other Income-Driven Repayment Plans? Given the news about the SAVE Plan, many borrowers might have concerns about other income-driven repayment options. As previously noted, the U.S. Department of Education has reopened applications for certain IDR plans, including IBR, PAYE, and ICR, as of March 26, 2025. Borrowers can now apply for or recertify these student loan repayment plans through the online application. However, the broader political climate around student loan reform suggests changes might be on the horizon. Future administrations or legislative actions could aim to retool or modernize IDR plans, especially if the SAVE Plan remains permanently blocked. Borrowers can prepare for any future changes by making proactive decisions: Stay enrolled in current IDR plans and continue making qualifying payments. Monitor official updates from the Department of Education for any policy changes. Explore alternatives if you’re nearing forgiveness milestones or need to adjust your payment strategy. Consult your loan servicer when uncertain about your plan’s status or your next steps. The biggest takeaway for any student loan borrower is to keep up with student loan news over the coming months, especially as the state of repayment and forgiveness programs continues to change. Considerations for Future Borrowers While following student loan news is important for current borrowers, it’s just as critical for future borrowers, students, and parents to stay up to date. Future college students should think carefully about how they will finance their education. The uncertainty of programs like the SAVE Plan and potential reforms to other IDR plans highlights why incoming students should prioritize grants, scholarships, and other financial aid whenever possible and consider the return on investment of their chosen degree. Completing the Free Application for Federal Student Aid (FAFSA) is a key step to financing education, even in the face of changes to federal loan programs. The FAFSA gauges loan eligibility and is often the only way to qualify for need-based Pell Grants, work-study jobs, and campus aid. Complete the FAFSA as early as possible to avoid missing out on potential aid opportunities. And before you take out student loans, use tools like our College Degree ROI Calculator to help estimate the average annual cost of a degree against the first-year salaries in your chosen field.  Ascent Is Here to Help Understanding student loan repayment can help you avoid financial headaches, but it’s easy to feel overwhelmed by ongoing changes and shifting policy updates. Ascent is here to help. In addition to our variety of private student loans, we have a library of student success resources to support students and their families in college—and beyond. Plus, when you’re ready to jump-start your dream career, our AscentUP program can provide professional development training and coaching to help you build confidence and develop the skills you need for your next chapter. Check out our blog for more resources and information surrounding education, student loans, and financial wellness today. FAQs What happens now that the SAVE plan is blocked? Borrowers currently enrolled in the SAVE Plan have been placed in administrative forbearance. During this time, monthly payments are not required, and interest does not accrue. Borrowers should keep in mind that months spent in forbearance don’t count toward forgiveness programs, which might prolong the process of paying off your loans or having them forgiven. Why was the SAVE plan blocked? The SAVE Plan faced many legal challenges from Republican-led states, which argued that the Department of Education exceeded its authority in creating the program without congressional approval. On February 18, 2025, the 8th U.S. Circuit Court of Appeals upheld a preliminary injunction against the SAVE Plan, agreeing with the states that the plan's provisions—particularly those related to loan forgiveness—went beyond the Department of Education's statutory authority. Is there any chance the SAVE plan will be reinstated? Given the current political climate and other actions taken by the Trump administration, it’s unlikely that the SAVE Plan will be reinstated anytime soon. Can I still apply for income-driven repayment (IDR) plans like PAYE or IBR? Yes, you can still apply for certain income-driven repayment (IDR) plans like Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR). Following a temporary suspension due to a court injunction in February 2025, the U.S. Department of Education reopened applications for these plans on March 26, 2025.  Can private loans offer similar terms to what SAVE would’ve provided? Most private student loans do not offer the same payment structures or forgiveness options as federal programs like SAVE. That said, some private lenders offer forbearance or income-based options. Carefully compare terms before you refinance or choose a private student loan provider.

Planning for college is an exciting milestone for both students and their families—from choosing the right school, to deciding on a major. But while this journey is filled with anticipation, it's also common for parents to feel overwhelmed by one major concern: the cost. So, how can families afford college without breaking the bank? There are plenty of options available to help parents and students approach paying for college in a way that is financially smart–and sustainable. Let’s explore how factors like college selection, financial aid eligibility, and personal savings strategies can play a role in reducing your student’s out-of-pocket educational expenses.  Key Takeaways Saving money early through savings accounts, CDs, or 529 Savings Plans can help pay for your child’s education. Support your child in completing the Free Application for Federal Student Aid (FAFSA) to determine if they’re eligible for need-based scholarships and grants to help pay for college.  Picking an affordable school can help reduce college costs, but you’ll need to balance your child’s educational priorities with your budget. Federal and private student loans can shore up any gaps in college funding, but it’s important to understand rates, terms, and repayment options. Each one has different benefits. Start Saving Early Saving for college early is one of the biggest ways to help pay for your kids’ college education. Starting the right kind of savings or investment account for your kids can make a big difference when considering how to pay for college. Compound interest is a powerful tool, and the more money you can invest earlier in your child’s life, the more those funds will grow over time. High-yield savings accounts and certificates of deposit (CDs) are excellent long- and short-term tools for growing your money, but they’re not the only ones. One of the most popular options for college savings, the 529 Savings Plan, makes investing in your children’s college education simple. How to Open a 529 Savings Plan A 529 Savings Plan is a tax-advantaged investment account designed to help families save for future education expenses. Each state sponsors a plan, and the money you contribute grows tax-deferred. Withdrawals from a 529 plan are tax-free if used for qualified expenses, including: Tuition Fees Books Approved room and board costs You can start a 529 Savings Plan by following this process: Compare plans: While many people choose their home state’s plan, you’re not required to stick with it. Shop around for low fees and strong investment options. Open an account: Visit the plan’s official website or use your financial advisor to open the account online. Name a beneficiary: This is typically your child, but you can change it later if needed. Set up contributions: You can make one-time deposits or schedule automatic transfers to grow the savings steadily over time. Sharing account information with family members simplifies the process of letting them contribute, too. Remember, even small contributions can add up. The earlier you begin saving, the more time your money has to grow. Don’t Skip the FAFSA While a 529 savings plan can set the stage for parents paying for college, it’s important to tap into every available financial aid source, starting with the FAFSA. The FAFSA isn’t just a resource for low-income families. It’s the gateway to federal grants, work-study programs, student loans, and many state and institutional scholarships. Submitting it early can increase your student’s chances of receiving the maximum financial aid and avoid overpaying for college. The application typically opens in October each year, so mark your calendars. While the FAFSA isn’t a complicated form, it does require a lot of information. There are tons of resources available on studentaid.gov to guide you and your child through the application process. In addition, many schools offer support through their financial aid offices or virtual workshops. Pursue Scholarships and Grants First Speaking of financial aid, scholarships are a great resource to help parents pay for college. Free money in the form of scholarships and grants doesn’t have to be paid back and can significantly reduce your student’s college expenses each year. Help your student seek out and apply for as many scholarships and grants as possible.  To improve their chances of qualifying for scholarships, encourage your student to build a robust resume with strong academic performance or extracurricular activities. Colleges often award money to high achievers to attract top talent, but they aren’t the only providers of scholarships. Various civic and fraternal organizations, professional associations, and affinity groups award money, too. Use a scholarship search tool to see what’s out there for your student. Grants and scholarships are one of many different ways to pay for college. Leveraging them to lower your overall costs can help reduce reliance on other forms of aid that do need to be repaid. Learn About Student Loans If free financial aid and savings still leave a gap, parents paying for college often turn to student loans to help cover the remaining costs. Not all loans are created equal, though. Understanding your options is important to help avoid long-term financial strain. Some of the most common student loan types include: Federal Direct Subsidized and Unsubsidized Loans: Taken out by the student, these loans tend to offer the lowest interest rates and flexible repayment options. Subsidized student loans offer the advantage of not accruing interest while the student is in school. Parent PLUS Loans: Another type of federal loan, Parent PLUS loans are student loans for parents (biological and adoptive) of dependent undergraduate students. These loans typically have higher interest rates than student loans and require a credit check. Private Student Loans: If federal loans aren’t an option, lenders like Ascent offer a wide range of private loans with (or without) a creditworthy cosigner, typically a parent. Some lenders also offer parent student loans designed specifically for parents or guardians looking to take out a loan on their student’s behalf. When researching private lenders and loan types, don’t forget to consider other loan benefits, like ACH payment discounts and access to coaching and internships.  Before signing the dotted line for any student loan, it is important to compare loan terms, interest rates, and repayment options. Resources like loan calculators and financial aid counselors can help parents understand the long-term impact of each borrowing decision. Encourage the Right School Choice Where your student goes to school—and what they plan to study—is just as important as how you pay for it. Consider using a student loan or degree ROI calculator to help your student understand the impact of what they’re borrowing and how their career goals intersect.  Ascent’s Bright Futures Engine is an excellent tool to help you and your student anticipate how their planned major, chosen school, and financial aid can impact the expected ROI of their degree. If your student wants to attend a certain school and major in elementary education, they can input the school and major to see their: Estimated yearly costs for that school Expected average first-year salary Bright Futures Engine index, which is a number that translates to the anticipated ROI of attending that school for said major. The higher the score, the higher the expected return on investment. The Bright Futures Engine doesn’t take into account financial aid amounts on its own, but you can input your expected financial aid to help increase the Bright Futures Engine index. Input multiple schools and majors to help you determine which options are worth your investment. Ultimately, the school choice depends on what kind of experience your child wants. Each institution has academic and social pros and cons, and you’ll have to weigh them against the financial considerations to make the right choice. Learn More with Ascent Learning how to pay for your kid’s college looks different for each family. The goal isn’t to cover every cost (although that may be possible). Instead, it’s to help your child graduate with as little debt as possible while keeping your finances healthy. That’s why Ascent offers resources for parents and families to help budget, plan for college, and even borrow money for school through cosigned student loans. Explore our full lineup of student resources and learn how Ascent can help, no matter your student’s path. FAQs How do most parents pay for kids’ college? Most parents pay for college using a combination of savings plans, income, financial aid, and student loans. Scholarships and grants are another popular way to fund education, as are gifts from friends and family. Early planning reduces the need for borrowing and can make costs more manageable over time. Is paying for a child’s college tax-deductible? Tuition payments aren’t generally tax-deductible, but there are some tax credits available. A 529 Savings Plan is a tax-advantaged way to help pay for college, and the student loan interest deduction can help eligible borrowers reduce their tax burden after college. When should we start filling out FAFSA? You should submit the FAFSA as soon as it opens, usually on October 1 each year. Applying early increases your chances of receiving more financial aid, especially for need-based and first-come, first-served programs. What expenses should we expect beyond my child’s tuition cost? Tuition is the lion’s share of what students have to pay for, but it’s not the only expense. Expect to budget for room and board, books and supplies, transportation, activity fees, and other personal expenses. These can add thousands to the total cost of attending school, so factor them in when planning for your child’s education.

Does the thought of completing the Free Application for Federal Student Aid (FAFSA) give you a headache?  You’re not alone. Millions of students complete this federal form each year, navigating deadlines, account creation, and document requirements along the way. It’s easy to feel overwhelmed, but skipping the FAFSA or making a mistake on the form could cause you to miss out on financial aid. Familiarizing yourself with the ins and outs of the FAFSA application process—and submitting your application early—can ensure you maximize the aid you are eligible for. This guide explores some of the common FAFSA errors and tips to help you avoid mistakes or delays in the application process. Key Takeaways Skipping the FAFSA entirely could cause you to miss out on valuable financial aid. Any student can fill out the FAFSA, regardless of income, so fill it out even if you don’t think you qualify. Complete the FAFSA as early as possible to avoid missing critical school- and state-specific deadlines. This also increases your chances of securing first-come, first-serve aid. FAFSA errors can delay your application status or impact the amount of aid you qualify for. Make sure your information is accurate and double-check your application details carefully before submitting. You can correct information on the FAFSA after your form has been processed if you make a mistake, or if your financial circumstances change. 1. Skipping the FAFSA Entirely Unsurprisingly, one of the costliest FAFSA errors is not filling it out at all. Many students or families assume they won’t qualify for financial aid due to income or other factors, but that’s a big mistake. Each year, billions of dollars in federal aid go unclaimed, including over $4 billion in Pell Grants alone. Even if you don’t qualify for need-based financial aid, the FAFSA is often a requirement for scholarships, work-study programs, and low-interest student loans. Don’t miss out. Confirm your FAFSA eligibility and apply, even if you don’t know how much aid you might qualify for. 2. Completing the Wrong Year It’s easy to fill out the wrong year’s FAFSA by mistake, especially when multiple versions are available online. Double-check that you’re completing the form for the correct academic year. The FAFSA typically opens on October 1 each year, although it has been delayed in the past.  3. Missing the FAFSA Deadline Missing the FAFSA deadline is an easy way to miss out on financial aid. The federal deadline typically falls on June 30 of the academic year, but states and schools often have significantly earlier cutoffs. In addition, corrections or updates must be submitted by 11:59 CT on September 12. Check with your state and school’s financial aid office for the specific deadlines relevant to your circumstances. 4. Failing to File Early While it may seem there’s plenty of time to meet these deadlines, failing to file the FAFSA early can cost you. Waiting to apply can lead you to miss out on first-come, first-served aid, such as work-study opportunities, state grants, or institutional scholarships.  Not only does filing early give you the best chance of maximizing your financial aid opportunities, filing the FAFSA early can give you more time to compare the aid packages offered by different colleges. It can also provide extra time to pursue supplemental forms of financial aid, like private student loans, if needed. 5. Using the Wrong Tax Information One of the more technical—but critical—FAFSA errors is entering the wrong tax details on the form. Your dependency status will determine whose tax information is needed on the form, regardless of who will be paying the tuition. If you are a dependent, this tax information will likely come from your parents. Verify whose information is required to avoid this common FAFSA error. The FAFSA requires tax data from two years before the start of the academic year. For example, if you’re applying for financial aid for the 2025-2026 school year, you’ll need to provide tax information from 2023.  Using figures from the wrong year could delay processing or, even worse, reduce aid eligibility. Some of the required details include: Filing status Income Tax Paid Adjusted Gross Income (AGI) Income Earned from Work Tax-Exempt Interest Education Credits Using the IRS Data Retrieval Tool (DRT) is one of the easiest and most accurate ways to input your tax information, and eligible users can also securely import their tax data directly from the IRS DRT into the FAFSA.  6. Misunderstanding Dependency Status Unfortunately, many students assume that being financially independent means independent status for the FAFSA, but that’s not always the case. The FAFSA uses specific criteria to determine whether you’re dependent or independent, including: Age Marital status Military service Legal guardianship Most undergraduate students are classified as dependent and must report their parents’ financial information. If you believe you should be considered independent, consult the FAFSA dependency guidelines or contact your school’s financial aid office for clarification. 7. Entering the Wrong Personal Data In addition to knowing whose tax information to use, you’ll want to double-check the accuracy of basic details like Social Security number, date of birth, and even the legal names of all required parties. Even small errors, like using nicknames instead of legal ones, can lead to avoidable headaches. 8. Delaying While Deciding on a School You may think you need to put off the FAFSA until you make a final decision about which school to attend, but you don’t actually have to wait. If you're undecided, you should still submit the FAFSA early and list all the schools you’re considering. You can include up to 20 schools on the form, and it’s easy to remove or add schools later through your FAFSA account.  Take your time in selecting the right school, but don’t delay your access to financial aid. After all, your chosen school can’t offer a full financial aid package without your FAFSA on file. 9. Thinking There Are Age Restrictions Another common FAFSA error is thinking the application is only for traditional full-time students. Access to financial aid isn’t just limited to these students, although they’re the most common recipients. Non-traditional students like those working full-time and attending school part-time or those returning to school after an extended break can complete it, too. No matter your reason or timeline for attending college, completing the FAFSA can help open a wide range of financial aid options for you. 10. Not Knowing How to Make Changes FAFSA processing time can vary based on whether you file with an email address and sign with a Federal Student Aid (FSA) ID or a physical signature page, but you will eventually receive a FAFSA Submission Summary with key details. Read this report closely to ensure the information is accurate. If not, you can make any necessary changes through the FAFSA website. You typically have until October to correct any FAFSA errors or make changes, so don’t delay. In some cases, special financial circumstances will warrant changes after you submit your application. These circumstances can include reduced income from a pay cut, loss of employment, or newly incurred medical expenses. These situations can greatly impact your eligibility for financial aid, so make your school aware of them immediately. Learn More with Ascent Filing your FAFSA is just the start of your education and financial aid journey. And while paying for college is a pressing concern for many students and families, there are several forms of financial aid that can help make college more affordable. If grants and scholarships don’t cover the full cost, undergraduate loans—including private student loans from Ascent—can provide the extra support you need to pursue your education. Ascent is committed to providing students and families with resources needed to achieve their education goals. Learn more about how to better budget, plan for college, and fund educational expenses with our student resources hub. FAQs What should I do if my FAFSA has an error? If you notice an error after submitting the FAFSA, don’t panic. You can correct most mistakes by logging into FAFSA.gov and clicking “Make FAFSA Corrections.” Review your Student Aid Report (SAR) for issues and update it as soon as possible to avoid delays in aid processing. What happens if you make a mistake on the FAFSA? FAFSA mistakes can delay your application, reduce aid, or even render a person ineligible for some programs. Errors like incorrect income details or Social Security numbers must be corrected immediately. Most issues can be fixed online, but you can also contact your school’s financial aid office for help. What should you do if you submit a FAFSA application and realize there’s a mistake? Log in to your FAFSA account, correct it, and resubmit the form in a timely manner. If the mistake involves a signature, parent information, or dependency status, follow the additional instructions provided.  How do I know if I did my FAFSA correctly? After submission, you’ll receive a confirmation email and Student Aid Report. Review it to ensure all information is accurate and complete. If anything looks off, update it immediately. You can also contact your school’s financial aid office to confirm receipt and resolve any issues.

Students often go directly from high school to higher education, and those who are just starting school haven’t had time to build work history. For those starting college later in life, you may be considering quitting your job to attend school. Students without a steady income will be glad to know that you can get a student loan without a job—but it depends on the type of loan you apply for.  Federal student loans don’t require you to have a job or income. Private student loans generally require you to have income and a credit history, but there are ways to improve your chances of qualifying, like by applying with a cosigner.  Understanding how income can affect your options can help you plan for school and avoid stress later, so let’s walk through what to know and how to get the funding you need. Key Takeaways You don’t need a job or income to qualify for federal student loans. Private student loans often require proof of income, but applying with a cosigner can help you qualify and, in some cases, secure a better rate. The Free Application for Federal Student Aid (FAFSA) is the key to getting federal aid and should be filled out every year. Before borrowing, be sure to look into free forms of financial aid like grants, scholarships, and work-study programs to help minimize your out-of-pocket expenses. Can You Get a Student Loan Without a Job or Income? Yes, you can get student loans without a job or steady income. In fact, many students borrow money for college before they ever get their first paycheck. While your income may matter in some cases, it’s not always a dealbreaker: Federal student loans do not require income or a credit check. These loans are based on your financial need, which is determined by the FAFSA. Private student loans often require income or a cosigner with income. Some lenders may look at your future earning potential or other criteria if you don’t have a job or a cosigner. Federal Student Loans: No Income Required Federal student loans provided by the U.S. government are a good option for students who may not have a job or steady income yet because they are based on financial need, not employment status or income.  You can determine how much you can borrow by completing the FAFSA. While there are no income requirements, you’ll still need to meet the following criteria:  Students must be U.S. citizens or eligible noncitizens. Students must be enrolled in an eligible certificate or degree program at an eligible college or trade school. The results of your FAFSA application will determine which types of loans you are eligible for and how much aid you can receive. Part-time and online students can still qualify for federal loans, but the amount may be lower than what full-time students can qualify for.  You’ll typically need to be enrolled at least half-time to be eligible, which means completing at least 6 credit hours in a semester. Federal student loans can also be applied to many online programs as long as the school is accredited and able to accept federal funds for tuition.  Federal loans for students with no income include Direct Subsidized Loans, Direct Unsubsidized Loans, or even Federal Pell Grants. Direct Subsidized Loans are helpful if you have financial need because the government pays the interest while you’re in school.  Private Student Loans and Income Requirements Private lenders usually want to see proof of income before they approve your loan, but you can still get private loans for students with no income if you have a cosigner.  A cosigner is someone who agrees to take on the loan with you, like a parent, a grandparent, or a trusted adult. For students who are unemployed, have poor credit, or have little to no credit history, applying with a cosigner can improve the likelihood of qualifying for a loan. In some cases, applying with a cosigner can even result in a lower rate or more favorable loan terms. Some private loan options may consider a student’s earning potential based on their field of study and expected future income. For example, Ascent offers outcomes-based student loans for juniors and seniors applying without a cosigner who would not otherwise qualify based on income requirements. Eligibility for this loan type is based on several factors including your major, GPA, cost of attendance, and graduation date.  Besides income requirements, some private lenders might require full-time enrollment, while others may accept part-time students. Some may also require your school to be accredited.  Take Advantage of Free Funding First There’s no shortage of loan options to help you pay for school if you’re unemployed or working with a limited income. Remember to start with the types of financial aid that you don’t have to pay back to minimize your out-of-pocket expenses: Grants are free money from the government, and eligibility for federal grants is determined by the same FAFSA application that determines federal student loan eligibility. Work-Study is a federal program that allows students to work part-time to help pay for tuition. Eligibility is determined by the FAFSA, and students who submit the FAFSA early have a higher chance of being awarded Federal Work-Study funds, since funding and job placements are limited.  Scholarships are free money based on things like academic achievements, extracurricular activities, or additional criteria like community involvement and interests. Scholarships can be awarded by private organizations like schools and nonprofits, and each scholarship will have its own unique award criteria. Ascent Is Here to Help Pursuing a college degree is an exciting endeavor, but figuring out the best way to pay for school can be confusing for all types of students. Start by completing the FAFSA each year and take advantage of financial aid that you don't need to pay back like grants and scholarships.  If you’re still short of funds and concerned about meeting student loan eligibility requirements, don’t worry. Federal loans are available for students with no income, and Ascent offers both cosigned student loans and non-cosigned loans for unemployed students.  Win a no-essay scholarship giveaway and check out our student loan tips and resources for more information on paying for school. Our free webinar series is also a good place to start if you'd rather watch than read. FAQs Can I get student loans with no income? Yes, you can still get student loans even if you don’t have any income. Federal student loans do not require a job, credit score, or income to qualify. You may need a cosigner with income to apply for private loans.  Ascent offers outcomes-based loans that don’t require a cosigner to eligible students. What counts as income for student loan applications? For federal loans, your income can include your parents’ or legal guardians’ income if you’re considered a dependent. If you're independent, only your income and assets are reported.  Private lenders may look at wages from a job, freelance work, or other steady income. If you have a cosigner, the lender will count their income instead of yours. How does income verification work for student loans and financial aid? For federal student loans, income is verified through your FAFSA using tax returns from previous years. If you or your parents didn’t file taxes, there are other ways to report your income.  Private lenders usually ask for recent pay stubs, tax documents, or bank statements to confirm how much money you or your cosigner earn.  Will lenders consider my future income potential when evaluating my application? Some private student loan lenders will look at your future earning potential when deciding if you qualify. They might consider your major, school, GPA, or projected salary after graduation. While this isn’t a guarantee, it may help you qualify even if you don’t have income now. Would working part-time help improve my student loan eligibility? For federal loans, working part-time won’t affect your eligibility much. For private loans, having income increases your chances of getting approved without a cosigner. Even a small, steady income can make a difference in your application.

If you’re a part-time student, you might be balancing work, family, or other responsibilities while completing your degree, making financial aid especially important to you. You may be wondering if you qualify for financial aid or if it’s even worth it to fill out the Free Application for Federal Student Aid (FAFSA) if you’re only in school part time.  The good news is yes—part-time students can often get financial aid. Even if you’re only taking a few classes, you should complete the FAFSA to see what you’re eligible for. While the amount of aid may be smaller than what full-time students get, every little bit helps.  We’ll walk through part-time student financial aid options and requirements so you can make the most of what’s available. Key Takeaways Part-time students can qualify for financial aid such as grants, scholarships, federal loans, and work-study programs as a part-time student. You’ll need to be enrolled in at least 6 credit hours per semester to be eligible for federal financial aid and many private options.  Part-time students may receive less aid than full-time students, but support is still available. Private student loans can help fill any funding gaps after you've used all available federal student aid. Understanding Part-Time vs. Full-Time Enrollment When it comes to qualifying for certain types of financial aid, your enrollment status matters:  Colleges consider you a part-time student if you take between 6 and 11 credit hours in a semester.  Full-time students must be enrolled in 12 or more credit hours per semester.  It's important to enroll in 6 or more credit hours per semester if you want to qualify for federal grants and loans. For scholarships and private loans, the number of credit hours required can vary, but many follow the same rules as federal financial aid.  Can Part-Time Students Get Financial Aid? Yes, you can get financial aid as a part-time student.  Most federal and state financial aid programs start at 6 credit hours per semester. That typically means if you're taking at least two classes, you can qualify. Part-time students can also get scholarships and private loans. To determine how much financial aid you can get, you’ll need to complete the FAFSA. This is a government form you’ll fill out to determine your financial need. As long as you’re taking at least 6 credit hours in the semester, you’re eligible for FAFSA. The total amount of aid you receive will depend on your financial situation and the number of credit hours you’re taking. How FAFSA Works for Part-Time Students Even if you’re only a part-time student, FAFSA is still the best place to start figuring out how to pay for college. FAFSA connects you to federal grants, loans, and federal work-study programs. It also helps your school understand if you qualify for state or school-based aid, and how much. FAFSA covers part-time students and full-time students in the same way. You’ll answer questions about your income, family size, and what schools you’re applying to. The government uses that info to calculate your Student Aid Index (SAI), which helps decide how much aid you’ll get.  Once your school receives your FAFSA information, they’ll send you a financial aid award letter outlining the types and amount of aid you qualify for. Financial Aid Types Available to Part-Time Students There are several types of financial aid that part-time students can use. Some options come from the federal government, while others can come from your state, school, or private organizations. Federal Pell Grants, federal student loans, and work-study programs are all available to part-time students. Scholarships and private student loans can also be applied to college tuition. Let’s take a closer look at where part-time students can get financial aid. Grants Federal grants are a type of financial aid that don’t have to be paid back. As a part-time student, you may still qualify for grants like the Federal Pell Grant.  State grants and school-based grants might also be available, depending on where you live and go to school. Check with your school’s financial aid office to see if there are additional grant opportunities available for part-time students. Scholarships Scholarships are another great way to lower your college costs, and many scholarships don’t require you to be a full-time student. Some scholarships are based on academic merit, while others are awarded based on background, interests, or field of study.  You can find scholarships through your school, local organizations, or national programs. Ask your school counselor or use online search tools like Scholarships360 to find options part-time students qualify for. Like grants, you don’t have to pay back scholarships, and since there is no cap on how many scholarships you can be awarded, applying to as many as possible can help reduce your out-of-pocket expenses. Federal Loans Federal student loans are available to many part-time students. There are two main types: subsidized and unsubsidized. Subsidized loans don’t gain interest while you’re in school at least half-time, which usually means 6 credits.  Unsubsidized loans start collecting interest right away, but they are available for students whose income is too high to qualify for subsidized loans. Federal loans can help you cover costs that grants and scholarships don’t. Private Student Loans to Fill in the Gaps Sometimes, federal aid isn’t enough to cover all your school costs—even if you’re only going part-time. Part-time students can get financial aid from private lenders to pay for tuition, books, fees, and other school expenses not covered by federal aid. As with federal loans, you’ll need to meet certain enrollment requirements to qualify. You’ll usually also need to meet minimum income and credit score requirements. Private loans offer benefits like a fast application process and flexible repayment options that work with non-traditional students.  Ascent offers private student loans with and without a cosigner, no fees, 40 repayment options, and student-friendly benefits to help throughout your experience. Ascent’s undergraduate borrowers also get access to expert coaching and resources to support degree completion and career success.  With any loan, be sure to read the terms carefully before you borrow, and don’t borrow more than you need to cover your expenses. Learn More with Ascent Going to college part-time doesn't mean you lack financial options. Many part-time students can get financial aid if they’re enrolled in at least 6 credit hours for the semester. FAFSA is a great place to start, but you may also want to explore private student loans to help cover the rest.  Ascent offers flexible loan options for all types of students—but we’re also here to support your journey however we can. Check out the key takeaways from our latest FAFSA webinar to learn more about how to apply for financial aid as a part-time student. FAQs Does FAFSA provide aid for part-time college students? Yes, FAFSA provides financial aid to many part-time students. You need to take at least 6 credit hours per semester to qualify for most federal programs. The amount of aid you get will depend on your enrollment level and financial need. How many credits do I need to take to qualify for financial aid? Most financial aid programs require you to take at least 6 credits per semester, which is considered half-time or part-time enrollment. Anything less than that may limit your options or make you ineligible. How do I indicate that I'm a part-time student on my FAFSA application? You don’t need to select “part-time” on the FAFSA itself. Your school will determine your enrollment level based on your class schedule. They’ll use that to figure out how much aid you qualify for. Are there private loans designed for part-time students? Private loans can be good options for both part-time and full-time students. Compared to federal loans, private student loans for part-time students can offer more competitive rates based on credit and more flexible repayment terms.  Can working adults get financial aid for part-time study? Yes, many working adults qualify for financial aid while attending school part-time. You can apply through FAFSA and look into private loans or scholarships. Being a non-traditional student won’t stop you from getting help paying for college.