Private Student Loan Advice & College Financing Resources

We’re proud to share that Ascent has been recognized as one of Southern California’s Best Places to Work by Best Companies Group, an independent organization that honors companies creating strong workplace experiences for their teams.  Best Places to Work SoCal is a research-driven program from Best Companies Group that reviews participating companies’ practices, programs, and benefits, then gathers employee feedback about their workplace experience. Companies that meet the program’s criteria are named among the Best Places to Work SoCal. For Ascent, this recognition reflects more than our benefits or programs. It reflects the people who make our work meaningful every day.  At Ascent, we’re focused on building a workplace where people feel supported, trusted, and able to grow. Our mission is to help students access education and move toward academic and economic success, and we know that work starts with our own team. When employees feel valued and connected to the work they do, they’re better equipped to make a meaningful impact.  Our team is curious, collaborative, and open to new ideas. Leaders encourage learning, create space for feedback, and support career growth across the company. We believe great ideas can come from anywhere, and we work to make sure employees feel heard, included, and empowered to contribute.  Supporting employees means supporting the whole person. Ascent offers flexible and hybrid work options, generous PTO and leave policies, paid parental leave, wellness support, continuing education opportunities, and a 401(k) match. These benefits are designed to help team members care for themselves, grow professionally, and build sustainable careers.  Recognition is also part of how we show appreciation. Through programs like Cosmic Kudos, professional development opportunities, and company-wide celebrations, Ascent makes time to acknowledge the work happening across the team. It’s one way we help create a culture where people support each other, celebrate progress, and take pride in the impact they’re making.  “We’re proud to have built a workplace where employees feel trusted, supported, and genuinely connected to the work they do,” said Emily Skoubo, Director of Human Resources at Ascent. “This recognition reflects the collaborative culture our team has created together and our continued focus on providing an environment where people can grow, contribute, and feel valued.”  At its core, Ascent’s culture is people-first and purpose-driven. Team members support one another, celebrate wins together, and stay connected to a shared goal: helping students and families plan for, pay for, and succeed in school. That mix of mission, collaboration, and opportunity is what makes Ascent a great place to work.  We’re grateful to every employee who helps shape that culture every day and proud of what we’ve built together. As Ascent continues to grow, we’ll keep investing in our people, strengthening our culture, and creating opportunities for employees to do meaningful work while building rewarding careers. Because when our people succeed, the students and families we serve benefit too. 

Making the decision to go to dental school is a big decision. That’s why it’s important to have a clear understanding of the financial investment that you are signing up for. As you begin to explore your dental school options, you’ll also come across how you’ll navigate the costs and fund your education. Whether you are just starting to think about dental school, or starting your application, this guide will offer you the tools and information you may need about DAT fees, finding ways to pay for your tuition through scholarships, payment plans and more, to make your process easier and get you started on the right track.   “Pursuing a career in healthcare is undeniably challenging, but for those fueled by true passion, it becomes a deeply rewarding journey. The first and most important step is developing the right mindset and being prepared.” - S. Chintalapudi, Dental School Applicant  What is the DAT & What Are the Fees?  The DAT is the Dental Admission Test and it is crucial to your application process. The exam includes four sections timed over five hours and fifteen minutes. It is accepted by all dental schools in the U.S., and select schools in Canada, and is one of the factors that is considered when evaluating a potential student. When you apply for the exam, there is a non-refundable and non-transferable exam fee of $560. There is also a partial fee waiver that can cover 50% of the exam fee and 100% of a full practice test, but there are a limited number available per year. Additionally, you may have to qualify for additional requirements that you can find on the American Dental Association website and Candidate Guide.   In addition to figuring out how you will pay for the costs of the test, also make sure to choose the right testing day for you. Give yourself enough time and budget to take all the practice exams you may need and hire a tutor if  needed. Planning for your DAT exam properly will help set you up for success, both academically and financially!  “Beyond tackling rigorous science classes, you might need tutoring, which can range from free to $30 an hour. Shadowing dentists and volunteering are typically free but require significant time investment. Then comes preparing for the DAT. Prep courses range from $400 to over $1,000. Accelerated courses focusing on “high-yield” topics add another $100 or more per class. While many resources are available, programs like DAT Booster or Bootcamp often provide sufficient preparation within three months to six months.” - S. Chintalapudi, Dental School Applicant  Understanding Tuition  Similar to undergraduate tuition, dental school tuition can vary depending on if you are attending a public or private institution. On average, public dental schools have a total tuition of about $180K and private total tuition of up to $330K, as according to the ADA. However, tuition does not include everything you may need when in school. There are additional costs for dental instruments, textbooks, living expenses such as housing, food, transportation, and other potential school materials. These expenses could impact you by potentially adding another $32,000 or so to your total expenses.   “When interviewing at each school, the administration is pretty transparent on what the cost breakdown for everything is, but I didn’t expect dental school to cost more than medical school!” - T. Nguyen, Current Dental School Student   What are your funding options?  Don’t let the expenses overwhelm you. There are many ways you can fund your tuition and other expenses while in school.   Work Study: There are work study programs that give you the opportunity to earn money while also gaining experience on or off campus. Check with your school to verify if this is an option for you!   Part-Time Employment can also help provide a source of income as you balance work and study hours.   Payment plans may be another option for you if your school offers them. Payment plans allow you to separate your tuition payments into installments rather than paying the full amount all at once, which can make the expense more manageable.   Scholarships are also an option for you whether you are an undergraduate or graduate student. Ascent has helped students by awarding over $330,000 in no-essay scholarship giveaways! Big or small, any amount you are awarded can help cut your costs.   Ascent offers Dental School Loans with flexible repayment plans!  Get the financial flexibility you need to attend dental school by exploring your options and taking note of how you can prepare as you start applying.   “Expenses can accumulate quickly, including DAT prep courses, interview travel costs, primary and secondary application fees. However, planning ahead and seeking out resources and mentorship can make a significant difference in navigating this process more smoothly.” - M.Le, Dental School Applicant  Before you begin your dental school journey, keep in mind the costs of the Dental Admission Test (DAT), tuition, and living expenses. Being proactive in figuring out your funding options is the first step to preparing for a successful journey. While the application process and funding options can seem intimidating, Ascent is here to provide the information and resources that you may need. Contact a student loan specialist today.  

While managing your student loans can be intimidating, there are ways to simplify staying on top of repayment! It is important to organize information such as what type of student loan you have, certain dates you need to know, your repayment plan, and how to track your payment progress in a way that makes it easy to stay on top of. In this guide, we’ll break down how you can organize and manage your student loan repayment without stress.  The Cost of Missing Payments  Staying disorganized with your student loans could turn into some serious financial consequences. Losing track of payments could lead to missing payments, which then could lead to late fees, higher interest rates, and this could put your credit score in jeopardy. Don’t let your student loans become a long-term burden and take care of your future by being prepared and staying organized today.   Your Student Loan Options  First off: to manage your student loan repayment, you have to understand what type of loan you have. Do you have a federal student loan, a private student loan, or both? Gather the information you need about your loans, including the amounts, interest rates, and due dates. These key details will help you stay organized and avoid missing payments. Where can you get this information? Try checking your loan documents in an online dashboard or account. Make sure you know how to contact your loan servicer, which is the company that handles your payments, in case you have questions or concerns.  Creating your Payment Plan  Once you’ve gotten a clear understanding of your loans, you’re ready to create a payment plan! Most student loans have monthly minimum payments, which are the smallest amount that you are required to pay each month. However, paying more than the minimum payment can help you pay off your loan faster! If your budget allows it, or if you’re able to, paying more than the minimum can make a huge difference over time, and lower the amount of student loan interest you will pay in the future. With Ascent, there are no early repayment fees!   To stay on top of your monthly payment, and avoid missing one, you can enroll in automatic payments where the funds are automatically taken out of your bank account. Here at Ascent, we offer borrowers a 0.25%-1.00% discount on every payment when you are signed up for autopay*. If autopay is not available for you, or if you want another way to keep track of your payments, set personal reminders such as adding a reminder in your digital calendar or writing it in your physical calendar – however you keep track of important school or work deadlines. The key to having a successful plan is finding one that works for you.  Track your Payment Progress   After you’ve created a payment plan, it is essential to stay on top of your repayment by tracking your progress. Keeping track of your payment history and loan balance can help spot any potential discrepancies and see how far you’ve gotten. In addition, stay in touch with your loan servicer as they can provide updates on your account and let you know of any issues relating to your payments. Keeping an open line of communication with your servicer is a way to be proactive with your loan, so that you’re never caught off guard. Ascent has an app that makes it easy for you to manage your loans whenever and wherever you may be. The AscentConnect App allows you to make payments, set up autopay, check your updated loan details or balance, and more.  Extra Way to Pay: Scholarships  Applying to scholarships is an additional way to get funding for your student loan repayment. There are scholarships available for undergraduate and graduate students. Most scholarship applications are free, and it doesn’t hurt to apply - the key is to never stop applying! Even if you don’t think you’d be a good fit, you never know. Every scholarship that you are awarded can go toward reducing your loan balance or your expenses. The more you apply, the better your chances of being awarded some financial aid. Ascent has given away over $330,000 in scholarship giveaways to date. Apply now and make sure you sign up for our newsletter to stay up to date with future opportunities to win dollars for school.   Paying Off Your Student Loans:  Understanding your student loan type, creating a repayment plan, tracking your progress, and finding ways to reduce expenses are key steps in effectively managing your student loan repayment. While paying off student loans can feel overwhelming, breaking the process into manageable steps can make it easier and more manageable. Stay consistent with your student loan payments, and while it may take time, you'll pay off your loans sooner than you think!   * The final ACH discount approved depends on the borrower’s credit history, verifiable cost of attendance, and is subject to credit approval and verification of application information. Automatic Payment Discount of 0.25% is for credit-based loans and a 1.00% discount is for outcomes-based loans when you enroll in automatic payments. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. Automatic Payment Discount of 0.25% available for Credit-Based Loans and Career Training Loans and an Automatic Payment Discount of 1.00% available for Undergraduate Outcomes-Based Loans. Learn more at AscentFunding.com/Ts&Cs. 

Ways to pay for college: Why the order matters If you're figuring out how to pay for college, the price can feel overwhelming. The good news is that most students don't pay the full sticker price. Once scholarships, grants, and other aid are applied, what you actually owe is often much lower. It also helps to know that you probably won't pay for college with just one source. Most families combine four or five different sources: free money, federal aid, work, savings, and sometimes a loan to cover what's left. The order you use them in matters. Start with money you never have to pay back, then move to federal aid, and only then consider borrowing from a private lender. This guide walks you through each step so you can build a plan that keeps your costs as low as possible. Key takeaways Know your real number first. Your cost of attendance and net price matter more than the sticker price. Start with free money. Scholarships and grants never need to be repaid. File the FAFSA. It unlocks grants, work study, and federal student loans. Work, save, and use payment plans to shrink what you borrow. Borrow federal before private. Federal loans come with fixed rates and borrower protections. Fill any remaining gap last with private student loans, after cheaper options are used. Cut costs where you can, so there's less to cover in the first place. Step 1: Know your real number Before you look at ways to pay for college, figure out what you actually need to cover. When you think about how to pay for college tuition, remember that tuition is only one piece. Start with the cost of attendance. Cost of attendance is the school's estimate of the full cost of a year of college, including tuition and fees, housing, meals, books, supplies, transportation, and personal expenses. Tuition might be only part of what you'll spend. Next, look for a net price calculator on each school's website. You enter some basic information about your family's finances, and the calculator estimates what you might pay after grants and scholarships. Two schools with very different sticker prices can end up costing about the same. Finally, know the difference between an aid offer and a bill. Your aid offer lists the grants, scholarships, work study, and loans you're eligible for. Your bill shows what you owe the school directly. Loans in your aid offer still have to be repaid, so they don't actually lower your cost, they just change how you pay it. Step 2: Scholarships and grants Scholarships and grants are free money. You never have to repay them, which is why they should be the first place you look for funding. Grants are usually based on financial need. They can come from the federal government, your state, or your school. The federal Pell Grant is the best known, with a maximum award of $7,395 for the 2026–27 award year. Scholarships can be based on grades, talent, community service, your intended major, your background, or simply entering a giveaway. You can find them through: Your school's financial aid office Your high school counselor Local businesses, community groups, and religious organizations Employers, including your parents' employers Free scholarship search websites Lenders and companies, including Ascent's no-essay scholarship giveaways Apply to as many as you reasonably can. Think of it as a numbers game: the more you apply for, the better your chances. Don't skip the small, local awards. A $500 scholarship from a community organization may get far fewer applicants than a big national award, so your odds can be much better. Several small scholarships can add up quickly. Keep a simple list of deadlines and requirements, and reuse essays where the prompts overlap. Scholarships aren't just for high school seniors, either. Many are open to current college students, so keep applying every year. Step 3: File the FAFSA The Free Application for Federal Student Aid, or FAFSA, is your key to federal aid. It's also free to file, so you should never pay anyone to submit it for you. The FAFSA unlocks: Federal grants, like the Pell Grant Federal Work-Study, which helps you earn money through a part-time job Federal student loans, which usually cost less and offer more protections than private loans Your FAFSA isn't just for federal aid. Many states and colleges use the information on it to decide who gets their own grants and scholarships, so filing it can help you qualify for even more free money. File even if you think your family earns too much. There's no income cutoff to file, and some aid, like Direct Unsubsidized Loans, isn't based on need. Many schools also require the FAFSA before they'll consider you for their own scholarships. Timing matters too. The 2027–28 FAFSA is open now, and the federal deadline is June 30, 2028. State and school deadlines are often much earlier, so file as soon as you can. You'll also need to submit a new FAFSA each year you're enrolled in school to continue receiving financial aid. To learn more, read how the FAFSA works and check your FAFSA eligibility. Step 4: Work study and part-time jobs Earning money while you're in school can reduce what you need to borrow. Federal Work-Study is a need-based program that you qualify for through the FAFSA. It helps you find a part-time job, often on campus or with a community service organization. Your aid offer shows how much you're eligible to earn, but you still have to find and work the job. Work study pay is typically sent to you as a paycheck, not applied directly to your bill. Work-Study earnings are generally taxable, but they aren't counted as income when your school calculates your federal student aid eligibility for the following year. A regular part-time job works too, on or off campus. It may pay more, but it may be less flexible around your class schedule. Be realistic about hours. Working a moderate number of hours per week can fit alongside a full course load, but working too much can hurt your grades and make it harder to graduate on time. Work income usually covers living expenses like books, food, transportation, and personal expenses. It rarely covers tuition on its own, but every dollar you earn is a dollar you don't have to borrow. Step 5: Savings and payment plans Savings and family contributions can cover a big share of college costs without adding debt. 529 plans are tax-advantaged savings accounts for education. Money grows tax free and can be withdrawn tax free for qualified education expenses, like tuition, fees, housing, books, and supplies. If your family has a 529, check the plan's rules before withdrawing so you use it for qualified costs. Family contributions can come from parents, grandparents, or other relatives, whether from savings or current income. Talk openly as a family about what everyone can realistically contribute each year so there are no surprises. Tuition payment plans let you spread your bill over monthly payments during the semester instead of paying it all at once. Many schools offer them for a small enrollment fee or none at all, and they usually don't charge interest. That means your family can pay part of the bill from monthly income rather than borrowing. Together, these options can shrink the gap you need to cover with loans. Step 6: Federal student loans If savings and payment plans don't cover everything, federal student loans are usually the next step. They're offered by the U.S. Department of Education, and you qualify by filing the FAFSA. There are two main types for undergraduate students: Direct Subsidized Loans are for students with financial need. The government pays the interest while you're in school at least half time, during your grace period, and during deferment. Direct Unsubsidized Loans are available to undergraduate students regardless of need. Interest starts adding up from the day the loan is paid out. Federal loans have fixed interest rates set by Congress, so your rate won't change over the life of the loan. For the 2026–27 award year, the rate for undergraduate Direct Loans is 6.52%. There are annual and total limits on how much you can borrow, based on your year in school and whether you're a dependent or independent student. For example, a dependent first-year student can borrow up to $5,500 per year. Federal loans offer multiple repayment options including income-driven repayment options, deferment and forbearance, and forgiveness programs such as Public Service Loan Forgiveness for eligible borrowers. Borrow only what you need, even if you're offered more. You can accept part of your loan amount and turn down the rest. Step 7: Use private student loans to cover the rest If you've used scholarships, grants, work, savings, and federal aid and still have a gap, a private student loan can help cover what's left. Private loans are supplemental. They're meant to fill a remaining gap, not replace federal aid. Here's how private student loans typically work: They're often credit based. Lenders look at credit history and income, so approval and rates will vary. A cosigner is usually needed. Most undergraduate students don't have enough credit history to qualify on their own, so a parent or other trusted adult often cosigns. A cosigner shares responsibility for the loan and may help you get a better rate. You can often choose fixed or variable rates. A fixed rate stays the same for the life of the loan. A variable rate can start lower but may change over time. Before you borrow, compare lenders on interest rates, fees, repayment options, grace periods, and whether they offer cosigner release. Eligible juniors and seniors may also be able to get a student loan without a cosigner, like Ascent's outcomes-based loan. Many lenders let you check your rate without affecting your credit score. Whether you apply with a cosigner or on your own, Ascent's undergraduate student loans can help you cover your remaining costs, with flexible options and resources so you can pay for school with confidence. Step 8: Cut the cost instead of funding it Sometimes the best way to pay for college is to need less money in the first place. Here are a few ways to lower your total cost: Start at community college. You can complete general education courses at a lower cost, then transfer to a four-year school. Check transfer agreements so your credits count. Stay in state. Public schools usually charge much lower tuition for state residents. Earn credit early. AP, IB, CLEP, and dual enrollment courses can help you skip some college classes and save on tuition. Live at home or commute. Housing and meals can be one of the biggest parts of your cost of attendance. Graduate faster. Some programs offer three-year degrees, and taking a full course load each term can help you avoid paying for extra semesters. Ask about employer tuition help. Some employers offer tuition assistance for employees, including part-time workers. If you're going back to school as an adult, make sure to ask your employer about tuition assistance first. Even one or two of these can make a real difference in your total cost. How to pay for college without parents If you're paying for college on your own because your parents aren't able to help, you still have options. Start with the FAFSA. If you're under 24, you'll usually need to include parent information. But you may qualify as an independent student if you're married, a veteran, supporting a child, a ward of the court, or experiencing homelessness, among other situations. If you have unusual circumstances, such as an unsafe home, your school's financial aid office can review a dependency override. Independent students can often receive more federal aid, including higher Direct Loan limits. If you need a private loan, a cosigner doesn't have to be a parent. A grandparent, relative, family friend, or other trusted adult with good credit may be able to cosign. If no one can cosign, look into student loans without a cosigner. Some lenders offer loans based on factors beyond credit history, such as your school, major, or expected graduation date. How to pay for college with no money saved Not having savings doesn't mean college is out of reach. Start by filing the FAFSA as early as possible. It's free, and it unlocks grants, work study, and federal loans. Students with the greatest financial need often qualify for the most grant aid. Next, stack as much free money as you can. Apply for scholarships every year, and ask your school's financial aid office about institutional grants. Finally, choose a school you can afford. Compare net prices, not sticker prices, and consider community college or an in-state public school. A school that offers more aid can end up costing less than one with a lower sticker price. How parents pay for college Parents who want to help pay for college usually use a mix of these options: 529 plans and savings. Money saved over time is usually the least expensive way to help. Parent PLUS loans. These are federal loans for parents of dependent undergraduate students. For loans first disbursed on or after July 1, 2026, borrowing is capped at $20,000 per year and $65,000 total per student. Private parent loans. Private parent loans can help cover remaining costs, with the loan in the parent's name. Cosigning. Instead of borrowing themselves, parents can cosign their student's private loan. The loan stays in the student's name and helps them build credit. To compare Parent PLUS and parent student loans in detail, see Parent PLUS vs parent student loans. A realistic example Here's how one student might stack different sources to pay for a year of college. These are illustrative numbers for example purposes only. Your costs and aid will be different. Say a student's cost of attendance is $30,000 for the year. Here's how they might cover it: SourceAmountFederal and state grants$4,000Scholarship from the school$6,000Local scholarship$1,000Federal Direct Loan$5,500Work study$2,500Family contribution and payment plan$8,000Total before a private loan$27,000Remaining gap$3,000 After using free money, work, family help, and federal aid, this student has a $3,000 gap. That's where a small private student loan could come in. Because they used cheaper options first, they borrow far less than they would if they'd started with a private loan. To see what monthly payments might look like, try our student loan calculator. Frequently asked questions What is the best way to pay for college? The best way to pay for college is to use the cheapest money first: scholarships and grants, then savings, then federal aid, then a private loan for whatever is left. Free money never has to be repaid, so it should always come first. Savings and family help can cover costs without adding debt. Federal loans come next because they offer fixed rates and borrower protections. A private loan should fill only the remaining gap. How do most people pay for college? Most families combine multiple sources to pay for college rather than relying on just one. According to NASFAA’s 2026 coverage of how families paid for college in the 2025–26 academic year, those sources can include family income and savings, scholarships and grants, and borrowing. Mixing sources helps families keep borrowing lower and spread costs across different options. Can you pay for college without loans? Yes, but it usually takes a mix of free money, working in school, choosing a less expensive school, and family help. Students who receive large grants or scholarships, start at community college, live at home, and work part time may be able to graduate without borrowing. It's not realistic for everyone, though. If you do need to borrow, keeping the amount small and choosing federal loans first can help. How do I pay for college if my parents won't help? Start by filing the FAFSA and checking whether you qualify as an independent student, which can increase the federal aid you receive. If you have unusual circumstances, ask your financial aid office about a dependency override. For a private loan, a cosigner doesn't have to be a parent. A relative or trusted adult may be able to help. You can also look into loans that don't require a cosigner. Should I take federal or private loans first? Take federal loans first, every time. Federal student loans have fixed interest rates set by Congress and don't require a credit check for undergraduates. They also offer income-driven repayment and forgiveness options that private loans don't have. Private student loans are best used to cover any gap that remains after you've used scholarships, grants, savings, and federal aid. How much should I borrow for college? Borrow only what you need to cover your remaining college costs after scholarships, grants, savings, and other financial aid. Before borrowing, consider how much you expect to earn after graduation and whether the monthly loan payments will fit within your budget. A student loan calculator can help you estimate what your monthly payments might look like after graduation. The best way to pay for college: Build your plan in order Paying for college works best when you follow the right order. Know your real number, then use scholarships and grants and file the FAFSA. Work, save, and use payment plans to shrink what you borrow, then take federal loans before anything private. Look for ways to cut costs along the way. If there's still a gap after all that, a private student loan can help you cover the rest. Ready to cover what's left? Apply Now

Interested in applying for private student loans? Learn more about the step-by-step process of how to apply for a private student loan from Ascent Funding.

The federal student loan payment pause is set to end soon. Make sure you are financially prepared with information from Ascent Funding.

Around 18 million students complete the FAFSA® annually, yet billions of dollars in federal aid go unclaimed each year.  Filling out the FAFSA doesn’t have to be stressful. Understanding how to get started and what information you need to have to fill it out can feel overwhelming – but we’re here to help. For the 2025-2026 FAFSA webinar, we gathered our experts William Wozniak, VP of Communications and Student Services at INvestEd, and Peg Keough, Director of Education at College Aid Pro, to speak with Kumba McGill, our webinar host and Relationship Manager at Ascent. Bill, Peg, and Kumba covered all the important details you need to know to navigate this year’s FAFSA. Get a beginner’s rundown of the FAFSA at 5:50 - What is the FAFSA and why is it important?  Here are the five major takeaways from our session to help you navigate the FAFSA with confidence: Not sure if you're eligible for aid? Apply anyway! The Free Application for Federal Student Aid, also known as the FAFSA, is the starting point for determining eligibility for federal grants and loans, work-study opportunities, state and institutional aid, and even some private scholarships. That’s a whole lot of opportunity in just a single application! In almost all cases, it’s better to file for the FAFSA than it is to not file for the FAFSA. The amount of aid you could be eligible for might surprise you! Skipping it could mean leaving money on the table. Learn about eligibility at 21: 20 - Who is eligible & how do I stay eligible? The 2025-2026 FAFSA has been simplified Good news! The FAFSA has been significantly streamlined. These updates are designed to make the FAFSA more accessible and less time-consuming. This year, the application has been slimmed down – from 108 questions to only 36! Instead of filling out questions you don’t even need to consider, the form uses something called “skip logic” and will skip questions that don’t apply to you, ensuring a quicker and more user-friendly experience. Additionally, tax information is now automatically pulled in from the IRS. (Hooray!) This will save time and reduce errors commonly made when transferring information from tax documents. Make Sure You Understand Key Changes Every FAFSA season brings changes, and this year is no exception. In addition to simplifying the application and importing tax information, this year’s application aims to provide overall greater access to financial aid. If you haven’t been eligible for some types of aid in the past, you may now be eligible for it this year. If it’s been a while since you’ve filled out the FAFSA, you might remember the Expected Family Contribution (EFC). This has been replaced with the Student Aid Index (SAI). The SAI is calculated slightly differently than the EFC – but many families will not see a big difference. Family size and Adjusted Gross Income (AGI) calculations have changed, which would expand eligibility for Pell Grants. Furthermore, the FAFSA is now available in more languages – making it accessible to more families. Listen to the changes in-depth at 17:15 – What's changed? Be prepared to submit additional information Being prepared to submit additional information also means being informed on deadlines. Depending on how you or your student applies for admission (early decision, early action, or regular decision), your college may prioritize your application differently. Learn more about important due dates and deadlines at 11:15 - Important due dates and deadlines If your state offers aid, submitting the FAFSA sooner than later is highly encouraged because some states award aid first-come, first-served. Check your state’s deadline on the FAFSA website. Completing the FAFSA is just the beginning. Colleges may request extra documentation, such as proof of income changes or details about special circumstances. To avoid surprises, submit your FAFSA early – ideally a week before the earliest college deadline. Documents that you will need include: 2023 Federal tax forms and W2s Information about untaxed income (e.g. child support, veterans education benefits, etc.) Current cash or investment balances For more on preparing for your application, go to 27:32 - What do I need to get started? Explore all your options While the FAFSA is an essential first step, it’s not the only resource for paying for college. Scholarships, private loans, and state-specific aid programs can also play a significant role. Filing the FAFSA can even help you identify gaps that these additional resources might fill. Hear how our experts view additional options at 1:07 – What are my other options? In Conclusion All in all, paying for college doesn’t need to be stressful – but it does take some proactive planning. Starting with the FAFSA ensures you have access to as many opportunities as possible. For a detailed breakdown of these insights, watch our webinar recording – and don’t hesitate to reach out to our team of student loan experts with any questions! https://www.youtube.com/watch?v=xYo-DDmWZq8

Dos and Don’ts for Freshmen: Navigating Your First Year with Student Loans  Congratulations on starting this exciting chapter of your life! While starting college can be exciting and new, remember that it is also normal to be confused and have questions – especially if you are financing your education through loans. If you have student loans, knowing how to manage these loans will help you set yourself up for financial success!   To help you prepare for your first year with student loans, we’ve prepared some dos and don’ts to help you navigate your first year with student loans.  Do: Visit your school’s financial aid office  Financial aid offices are on college campuses with the #1 goal of providing information and support to students that need financial assistance. While the office can help you manage your current loans and expenses, there are also opportunities like scholarships and grants that can help lower the amount of money needed on a loan. Ascent also has dedicated student loan specialists to help guide you through applications and answer any questions you may have; additionally, Ascent borrowers receive access to AscentUP, with unlimited access to budgeting resources to support you on how to pay back your loan. At Ascent, we are committed to your success and give that extra help to our borrowers every step of the way!  Don’t: Pass up scholarship opportunities  Don’t overlook scholarships, regardless of where you are in your education!  Did you know that 1.7 million private fellowships and scholarships awarded every year? Scholarships can significantly reduce tuition costs or any other financial expenses that go towards your education, such as textbooks and transportation. Ascent has awarded over [scholarship_awards_amount] in scholarships to date, including no-essay applications that may help you cover some school-related expenses – and are not just for Ascent borrowers. Don’t forget – scholarships should not only be on your radar as you enter college, but the entirety of your college career! Take a look at our active scholarships now: Ascent Scholarships.  Do: Budget and keep track of your expenses  Budgeting and tracking your expenses are crucial to make sure you are spending and saving money appropriately. Tuition, living expenses, social outings, credit card payments, and any other expenses can pile up quicker than you may expect. To keep your costs down, take every opportunity you have when it comes to student discounts and deals; which make it easier to save even more money as a student! When you set a budget, you can avoid unnecessary debt and financial stress. Additionally, you can prioritize spending your money on your essentials like food, rent, textbooks and other supplies, while also putting aside money for savings and emergencies.   Don’t: Wait until graduation to think about repayment   Do not procrastinate or push off thinking about how you are going to pay back your loans! Keep track of your payment due dates, add them onto your digital calendar or reminders list, or write it down. As a borrower, you can review the repayment option you selected in your documents which are available in your Ascent Dashboard under Repayment Schedules. You can also consider setting up automatic payments. When you are enrolled in automatic payments, you take out the extra stress every month of remembering to make a payment. Instead, the payment is automatically deducted from your bank account.   Additionally, Ascent offers borrowers a 0.25%-1.00% discount on every payment when signed up for autopay*. That’s right, we pay you to make smart financial choices. Don’t forget that when you have some extra cash (like a signing bonus or holiday gift!) to contribute to your loan for early payments, or to pay off your loan earlier than expected, it will always benefit you – with Ascent there are no application, origination, disbursement or early repayment fees.  Just remember to keep in regular communication with your loan servicer to stay informed on any changes or updates relating to your loan or payments.  Do: Apply for FAFSA before any student loans  FAFSA opened on December 1st for the 2025-2026 academic year and helps determine your federal aid eligibility.  Regardless of if you think you will be eligible – fill it out. Applying for FAFSA creates opportunities for potential financial assistance that can significantly reduce the cost of your education. This includes Pell Grants, federal student loans, and work-study programs.  Additionally, make sure to submit your FAFSA before you apply for private student loans to see what you can receive first.  As you make your way through this new chapter of your academic journey, remember that the choices you make in your first year can influence both your college and financial experience. When you include tasks like visits to the financial aid office, applying for scholarships and FAFSA, and budgeting and figuring out repayment into your routine, you will be setting yourself up for success. Keep these dos and don’ts in mind as you make the most of your freshman year!  *ACH or Automatic Payment Discount is subject to credit approval and verification of application information. When you enroll in automatic payments, an Automatic Payment Discount of 0.25% is applied to credit-based private education loans and a 1.00% discount is applied to outcomes-based private education loans. For Ascent consumer loans made prior to March 3, 2024, the current Automatic Payment Discount is an interest rate reduction of 0.25%. For Ascent consumer loans made after March 3, 2024, the current Automatic Payment Discount is an interest rate reduction of 1.00%. Automatic Payment Discount is not available for delinquent accounts. For more information about Ascent’s consumer loan and benefits, visit Ascent Terms and Conditions. For more information about Ascent’s private education loan and benefits, see repayment examples and review Ascent’s Terms and Conditions and Borrower Benefits.

What happens when you default on your student loans? This question may arise in the minds of many borrowers, particularly during financially challenging times. Before accepting a college loan, it’s important to understand that neglecting student loan repayments can lead to consequences beyond immediate financial distress. These ramifications can influence your daily life and impact your financial health.  This article will discuss the potential risks associated with defaulting on student loans and provide strategies and knowledge to help prevent them. A strong understanding of your contractual obligations and the resources to help you repay your loans successfully is the first step toward maintaining your financial health.  The Importance of Paying Back Your Student Loans  Student loans, like any other loan, represent a promise. You've borrowed money to fund your education and pledged to pay it back. When you honor this promise, it's a win-win situation. Your credit score remains robust, making future borrowing easier, and it showcases your financial responsibility. You're meeting your financial obligations to your lender by repaying your student loans.  But what if things aren't going so smoothly? We know handling student loans with a cosigner or without can be tough. Life happens, work can be unpredictable, and balancing everything at once can feel like a juggling act. However, not paying student loans doesn't make these problems disappear. In fact, failing to pay back your student loans can make things much worse.  The Impact of Not Paying Student Loans If you are in a financial bind and considering defaulting on your student loans, know there are resources available to help you navigate these waters. The last thing you want to do is make a financial decision that will impact your financial well-being for years to come. The Federal Student Aid website is a great place to start. It's packed with helpful resources to guide you on your repayment journey. Remember, it's all about taking it one step at a time.  Below are some potential consequences borrowers may face for not paying back student loans.  Legal Ramifications Defaulting on student loans can lead to serious legal and financial repercussions. If you fail to make your scheduled loan payments for at least 270 days, your federal student loans enter a state of default. This can trigger a series of consequences, including wage garnishment and withholding of tax refunds.  Once your loan enters default, the entire unpaid balance and all accrued interest become due immediately—a process known as acceleration. The federal government can then garnish up to 15% of your disposable income without a court judgment. Additionally, your tax refunds and federal benefit payments may be garnished or withheld to repay your overdue student loan balances, a process known as Treasury Offset.  Consequences can vary based on the type of student loan—federal or private—and the specific terms of your loan agreement. Therefore, it's crucial to understand your loan terms and seek advice from a financial advisor or legal professional if you struggle to make payments. Ascent has a library of financial wellness resources to help you understand your options regarding responsible borrowing.   Negative Effects on Credit Score Your credit score might seem abstract, but it's a key player in your financial journey. This three-digit number can influence your ability to secure future loans, the interest rates you'll be offered, and even your eligibility for renting an apartment. If you cannot make student loan payments, it's important to know that this can lead to a dip in your credit score.   Late or missed payments on your student loan can negatively impact your credit score. Furthermore, when your loan defaults, your credit report may reflect multiple missed payments, significantly lowering your credit score.   Student loan repayment isn’t just about consequences, though. Making regular on-time payments on student loans will help you build and maintain a healthy credit score, setting you up for financial success in the future.  Ineligibility for Federal Student Aid  One of the lesser-known consequences of defaulting on your student loans is the potential ineligibility for further federal student aid. This could pose a significant barrier if you plan to return to school or pursue further education. You may put your grad school dreams on hold until your defaulted loans are resolved.  The impact of not paying back your student loans can be severe and long-lasting. Failure to pay back your student loans and the impact this decision could have on your credit score may impact your future and financial health for years to come. The penalties associated with default can also result in hefty expenses, especially for borrowers who are already financially vulnerable.   It's important to note that the consequences of defaulting on student loans can vary depending on several factors, including the type of loan, the duration of the default, and state laws. Therefore, it's crucial to understand the terms of your loan agreement and seek advice from your lender or a legal professional if you're struggling with repayment.   Exploring Alternative Repayment Options  If you're struggling to make student loan payments, it's important to know that alternative repayment options are available. These options can make your debt more manageable and help you avoid the negative consequences of defaulting on your loans.  Loan Forgiveness Programs  Loan forgiveness programs can be a lifeline for those struggling with student loan debt. These programs can eliminate part or all of your loan if you meet certain conditions. For instance, the U.S. Department of Education offers forgiveness and discharge programs for federal student loans. You may qualify to have some or all of your loans forgiven or discharged in certain situations, such as working in public service or in instances of total and permanent disability.  Repayment Plans In addition to loan forgiveness programs, repayment plans can help make your monthly payments more manageable.  Remember, the key is to take action and explore these options before your loans go into default. If you're unsure what steps to take, consider contacting your loan servicer or a financial advisor for guidance.  Seeking Professional Help for Student Loan Repayment  Navigating the complexities of student loan repayment can seem daunting, but remember, you're not alone. Professionals and resources are available to help you manage your student loan debt, understand the intricacies of your loans, explain your options like student loan forbearance or student loan deferment, and even negotiate with your lenders on your behalf.  Learn More with Ascent At Ascent Funding, we're devoted to helping students and their families understand the ins and outs of student loans. Whether you're working to manage your student loan payments or simply eager to understand more about committing to a student loan, we have many resources tailored to your needs.  No matter where you are in your journey—whether you are embarking on your college adventure or already addressing student loan repayment—explore our Financial Wellness Hub and find resources to guide your path to financial success for years to come.   FAQ What are the Implications of Not Repaying My Student Loans? Deciding not to repay your student loans carries several severe legal and financial consequences. From a legal standpoint, your creditor could take action against you to recover the debt. This might take the form of wage garnishment, where a percentage of your earnings is automatically directed toward repaying the loan, or you may face a lawsuit. In some extreme federal student loan cases, the government can withhold your income tax refund or social security benefits.  From a financial standpoint, defaulting on student loans can drastically lower your credit score. A lower credit score can lead to a series of negative outcomes. For instance, it can make it harder for you to secure loans or credit in the future, or you may be charged higher interest rates. It also makes it difficult for you to rent an apartment, get a cell phone plan, or even get a job, as some employers check credit scores. So, it's critical to understand that evading repayment of your student loans is not a sustainable strategy and can lead to significant challenges down the line.  Will My Student Loans Automatically Disappear After 7 Years?  Whether your student loans will drop off your credit report after a finite amount of time depends on the type of student loan and the statute of limitations for the state you live in. Private student loans have a statute of limitations ranging between three to ten years, depending on your state of residence. Federal student loans, however, do not have a statute of limitations, which means they can stay on your credit report indefinitely or until the loan is paid off.   How Long Can I Go Without Making Payments on My Student Loans?  The duration you can go without making payments on your student loans before defaulting depends on your loan type. For federal student loans, you're typically considered in default after you haven't made a payment for 270 days (approximately nine months). For private student loans, the time frame can vary significantly and depends on the terms set by your lender—it could be a much shorter period.  However, missing even one payment can negatively impact your credit score. It can also lead to late fees and potentially accelerated repayment of the full loan amount. It's crucial to understand the consequences of not paying student loans and to take proactive measures to avoid default. If you're struggling to make payments, contact your loan servicer. They can provide information about deferment, forbearance, or income-driven repayment plans that could provide some temporary relief. 

As with all loan types, your credit score significantly impacts your eligibility for private student loans. Your credit score may also affect critical aspects of the loan, such as the total loan amount, interest rate, lender options, and repayment terms. But what is the necessary credit score for student loans? Read more to find out.  Federal Student Loans vs Private Student Loans Credit Scores  In most cases, your credit score can impact your approval for a loan, your interest rates and loan terms, and whether you need a cosigner. The credit score requirements of federal student loans and private student loans differ significantly, as do their benefits.  Credit Requirements and Benefits of Federal Student Loans  Federal loans, including Direct Subsidized Loans and Direct Unsubsidized Loans, do not have strict credit score requirements. Instead, federal loan eligibility is based primarily on financial need and enrollment status. Additionally, federal student loans do not require a cosigner.  There are many benefits of federal student loans. Direct Subsidized Loans offer interest subsidies (meaning the government pays the interest on the loan) while the borrower is in school or during grace or deferment periods. Federal loans offer income-driven repayment plans that adjust monthly payments based on the borrower’s income.   Public Service Loan Forgiveness is available for borrowers who have made the equivalent of 120 qualifying payments and work in public service jobs, such as working for government agencies or nonprofits. Federal loan borrowers facing financial challenges may also qualify for deferment or forbearance programs to reduce or postpone payments.  Federal Loans have fixed interest rates that remain for the life of the loan, and these rates may be lower than those from private lenders. Federal student loans also have predictable, standard repayment plans, but many borrowers have the option of graduated or extended repayment plans.  Credit Requirements and Benefits of Private Student Loans The credit score requirements of private student loans vary tremendously between providers, but most loan products require a certain credit score. Your credit score and history can impact the terms of your private loans, which is why private student loans often require cosigners. This is especially true for borrowers with low credit scores or minimal credit history.   Private student loans may offer many benefits and include customizable features. They can have fixed interest rates, variable interest rates, or rates that change over time based on market conditions. Private lenders often provide greater flexibility in choosing repayment terms, allowing borrowers to customize repayment plans based on their situation. ​​For example, Ascent has up to 40 repayment options–more than any other student loan–ranging from 5 to 20-year terms, depending on your program and the loan options.   Additional benefits like zero fees, cash back at graduation, and automatic payment discounts are other common perks to look out for when evaluating lenders. Some private lenders (including Ascent) also offer cosigner release options, which will relieve cosigners from responsibility for the loan if the primary borrower meets certain criteria.   Remember that loan terms, rates, and benefits will vary significantly between lenders and borrower qualifications, so it is important to do your research and find the best fit for your needs. Often, students may apply for a combination of federal and private student loans in order to cover the full cost of tuition expenses.   Understanding Credit Score for Private Student Loans  While every lender requires different credit score requirements for specific loans and terms, understanding the general credit ranges can help predict the type of loan and loan terms you will get based on your credit score.   For example, FICO® scores are based on the credit score ranges below:  Poor Credit: 300 to 579  Fair Credit: 580 to 669  Good Credit: 670 to 739  Very Good Credit: 740 to 799   Excellent Credit: 800 to 850   ​​​  As with any type of credit-based loan, a higher credit score is generally a sign that the borrower may be more credit worthy, and therefore more likely to pay the loan back on time. ​This could have an impact on your eligibility or the loan terms you are offered. ​But​, fear not,–there ​are options for aspiring borrowers with low credit scores or no credit history at all. If you are unable to qualify for a loan on your own, you can consider applying for a student loan with a cosigner.  While many lenders do have a minimum credit score, these requirements will often vary based on the loan product, credit history, and whether you are applying with or without a cosigner. In many cases, the only way to find out how your credit score will impact your eligibility or interest rate is to apply.   How to Find Out Your Credit Score for Student Loan Applications There are several ways to determine your credit score. The easiest option for many individuals is to obtain their credit score from major credit reporting agencies, including Equifax, Experian, or TransUnion. You are also entitled to one free credit report each year from AnnualCreditReport.com. Checking your credit report annually is a great way to keep track of your credit score and does not count as a hard inquiry against your credit profile.   Some credit monitoring agencies also provide ongoing access to your credit score, and many banks and financial institutions also offer free access to credit scores through their online platforms. Some credit card statements also include your credit score.  ​​​Many lenders will also allow you to check your rate without affecting your credit score in just minutes. This can be helpful if you are looking to get an idea of your ​prequalified​ rates or compare rates across different private lenders.   Tips to Improve Your Credit Score for Student Loans  Luckily, there are many ways to improve your credit score for student loans. Some of the most important strategies you can use include:  Make timely payments on all your bills, credit cards, and loans.  Reduce your credit card balances to keep your credit utilization rate (the ratio of your credit card balances to your credit limits) below 30%  Check credit reports and dispute any errors.  Only open new credit accounts after you have completed the student loan application process.  Diversify your credit mix using various types of credit, including credit cards, installment loans, and retail accounts.  Establish a good credit history if you have limited credit history. For example, opening a low interest credit card is a strategy that many college students use to start building credit early on.   Getting Student Loans Without a Cosigner A cosigner agrees to share the obligation to repay the loan if the primary borrower is unable or unwilling to do so. Getting student loans without a cosigner can be challenging, especially if you have limited credit history or low credit scores. However, there are some strategies that you can use that will make it more likely.  Build a positive credit history.  Investigate multiple loan providers, both private and federal.  Apply to lenders that consider other factors besides credit scores.  Demonstrate stable income or employment.  Apply for scholarships and grants.  Even if you can qualify for a student loan without a cosigner, applying with a cosigner may help you qualify for a larger loan, lower interest rates, or better loan terms.  Although cosigned loans are most common for students with poor credit or little credit history, there are options available for prospective students who do not have or want a cosigner. For example, Ascent offers credit-based and outcomes-based loans without a cosigner for eligible students. In addition to credit-friendly programs, some lenders may offer secured loans, where the borrower provides collateral, such as a savings account or real estate, to secure the loan. Secured loans can be a great option for students with low or no credit and are figuring out how to pay for college.   If you do plan to apply with a cosigner, visit our blog for more tips on how to find a cosigner for your student loan.  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 college loans and undergraduate student loans, we are here to help students and their families make informed decisions about their future in college, and beyond.  Credit Score for Private Student Loan FAQ Is it Hard to Get Approved for a Student Loan?  The difficulty to get approved for a student loan depends on many factors. Borrowers with a high credit score and good credit history may find it easy to get approved for a low-interest rate loan with favorable terms. On the other hand, borrowers with poor credit scores or little credit history may struggle to get approved for a student loan, particularly if they do not qualify for federal student aid. Luckily, Ascent makes the application process as simple and easy as possible.  What Disqualifies You from Getting a Student Loan? Different lenders will disqualify you from getting a student loan for different reasons. The good news is even if one disqualifies you, another may not. Some common reasons for disqualification may include:  Defaulting on existing or previous student loans  Exceeding borrowing limits  Failure to meet satisfactory academic progress (SAP) requirements  Conviction of drug offenses  Filing for bankruptcy  Failure to register for the Selective Service (the draft)  Not being enrolled in an eligible program  Outstanding refund owed on a federal grant  Does Bad Credit Affect Getting Student Loans? Bad credit can have a tremendous impact your student loan application. Many lenders will not lend to you at all, and those that will lend to you, will often only do so if you agree to relatively unfavorable terms or to have a cosigner. Bad credit may decrease the total loan amount you are approved to borrow, and increase your interest rate. 

Understanding how student loan interest works and how it's calculated can help you manage your debt more effectively–and potentially save you money. Staying informed and making smart decisions about your student loans can help you invest in your education without sacrificing your financial future.  Key Takeaways Student loan interest is calculated daily and added to your balance monthly. Interest typically begins accruing upon disbursement. Calculate your student loan interest by finding the daily interest rate (annual interest rate divided by days in the year). Next, multiply your daily interest rate by your outstanding loan balance to determine how much interest accrues each day. Then multiply your daily interest accrual by the number of days in your billing cycle to determine your monthly interest charges. Capitalization occurs when unpaid interest is added to your principal balance. This makes your total debt bigger, so you’ll pay interest on a higher amount going forward. This typically happens after a deferment or grace period. There are two main types of interest rates: fixed and variable. Fixed rates remain the same, offering predictable payments. Variable rates fluctuate with the market, potentially affecting your monthly payment and total repayment amount. Understanding Student Loan Interest  When you take out a student loan, you're not just borrowing the amount you need for school; you’re also agreeing to pay interest, a cost calculated as a percentage of the principal amount. Interest is essentially the price you pay for the opportunity to borrow the money. Understanding how interest is calculated on student loans is crucial for managing your debt and planning your financial future.  Interest on student loans is typically calculated daily and added to your loan balance monthly. The amount of interest you owe depends on your loan's interest rate, the amount of your loan, the time it takes to repay it, and other loan terms. Generally, the longer you take to repay your loan, the more interest you'll pay.  Types of Student Loan Interest The primary types of student loan interest are fixed and variable. Let’s take a deeper look at the two and how they differ.   Fixed Interest Rate Loans Fixed interest rate loans have an interest rate that remains the same for the life of the loan. This means your monthly payments will be predictable, and you'll know exactly how much you'll pay over the loan term. Federal student loans typically have fixed interest rates, not based on credit score or financial history, but are set by law.   Variable Interest Rate Loans Unlike fixed-interest rate loans, variable interest rates fluctuate over time to mirror market conditions. Variable interest rates are typically tied to a financial index and can rise or fall based on the current market interest rates. While variable rates are sometimes lower than fixed rates, they're also less predictable. If rates increase significantly, so could your monthly payment and total loan cost.  Differentiating Principal and Interest Payments When you make a payment on your student loan, it's applied to both the principal and the interest. Initially, a large portion of your payment goes toward the interest. Over time, as the principal balance decreases, more of your payments are applied to the principal. Understanding this concept can help you make informed decisions about how to calculate interest on student loans and how extra payments or a different repayment plan might affect your total cost.  Steps on How to Calculate Student Loan Interest Let’s start by breaking down the equation for calculating student loans. Interest = Principal Balance x Daily Interest Rate x Time  Principal Balance: The initial amount borrowed on your student loan.  Daily Interest Rate: Your annual interest rate is divided by the number of days in the year.  Time: The number of days you want to calculate the interest.  You can calculate the amount of interest that accrues on your loan by plugging these values into the equation. Continue reading for the steps on how to calculate student loans:  1. Find Your Daily Interest Rate The first step in calculating your student loan interest is to find your daily interest rate. This is your annual interest rate divided by the number of days in the year. For example, if your annual interest rate is 5%, your daily interest rate would be approximately 0.0137%.  2. Determine Daily Interest Accrual Charge Next, you'll need to determine how much interest accrues each day. You do this by multiplying your outstanding loan balance by your daily interest rate. For instance, if your loan balance is $20,000 and your daily interest rate is 0.0137%, you would accrue about $2.74 in interest per day.  3. Multiply by Days in Billing Cycle to Find Monthly Payment Finally, to find out how much interest you'll be charged in a month, multiply your daily interest accrual by the number of days in your billing cycle. Continuing with the previous example, if your billing cycle is 30 days, you would accrue about $82.20 in interest for that month.  Tools and Resources for Calculating Student Loan Interest   ​​​​​From college degree ROI calculators to federal loan simulators, there are plenty of tools and resources available to help you understand how to calculate student loan interest. These tools can provide a detailed explanation of your loan, including how much of your payments are towards interest versus the principal and how extra payments or a different repayment plan might affect your total cost.  In addition to online calculators, your loan provider should give you detailed loan statements that break down your payments into principal and interest. Your provider should give you a clear picture of how your payments are applied and how much of your loan balance is still outstanding. If you’re unsure how to read your loan statement or have questions about your interest rate, don’t hesitate to reach out to your lender for assistance.  What is Capitalization of Interest? When calculating your student loan interest, it's also important to understand the concept of capitalization. Capitalization is when any unpaid interest on your student loan is added to the principal balance. This can happen at certain times, like when your loan enters repayment or after a period of deferment or forbearance.  When interest is capitalized, it increases the principal balance of your loan, which means you'll be paying interest on a larger amount. This can increase the total cost of your loan and make your monthly payments higher. This information can help you plan your payments and potentially save money in the long run.  When Student Loan Interest Starts  Interest on student loans typically starts accruing as soon as the loan is disbursed. This means that your loan could accumulate interest even while you’re still in school. However, with some types of loans, like subsidized federal loans, the government will pay the interest while you're in school, during the six-month grace period after you leave school, and during any periods of deferment. That’s why it is important to understand the difference between subsidized vs. unsubsidized loans.   For unsubsidized loans, the interest starts accruing when the loan is disbursed. If you choose not to pay the interest while you're in school or during your grace period, it will be capitalized, or added to your principal balance, when you start repayment.  The Importance of Understanding Student Loan Terms  Understanding how student loan interest works is just one part of managing your student loans effectively. It's also important to know the terms of your loan agreement, including your repayment schedule, the consequences of missing a payment, and what options you have if you're struggling to make your payments.  For example, many student loans offer deferment or forbearance options, which allow you to temporarily stop making payments or reduce your payment amount if you're facing financial hardship. However, interest may continue to accrue during these periods, which can increase the total cost of your loan.  Learn More with Ascent  At Ascent, we're committed to helping students and families navigate the world of college loans and make informed financial decisions. We offer a range of financial wellness resources to help you understand your loan options and manage your student loan debt effectively. Whether you're just starting your college journey or seeking graduate student loans to help you further your education, we're here to help you reach your academic and financial goals.  FAQ  How do you reduce the total interest paid on student loans? You can use several strategies to reduce the total interest paid on your student loans. One of the most effective ways is making a payment more than the minimum monthly amount. Paying above the minimum can help you reduce your principal balance faster, which means you'll be charged less interest over the life of the loan.  Another strategy is to refinance your student loans. Refinancing involves taking out a new loan with a lower interest rate to pay off your existing loans. Refinancing can reduce your monthly payment and the total amount of interest you pay. However, refinancing isn't right for everyone, and it's important to consider the pros and cons before deciding.  What happens if you don't make student loan payments?  You could face serious consequences if you don’t make your student loan payments. Your loan could become delinquent, and if you continue to miss payments, it could go into default. This can damage your credit score, making it harder for you to get credit cards, auto loans, or mortgages in the future.  In addition, if you default on federal student loans, the government can collect the debt, including garnishing your wages or withholding your tax refund. If you're struggling to make your student loan payments, it's important to reach out to your lender as soon as possible. They may be able to work with you to find a solution, such as changing your repayment plan, applying for deferment, or forbearance.  Do student loans have interest? Yes, student loans do have interest. The interest rate can vary depending on the type of loan and the lender. By law, federal student loans have fixed interest rates, while private student loans can have either fixed or variable rates. The interest on your student loans can significantly affect the total cost of the loan, so it's important to understand how to calculate interest on student loans and consider the interest rate when choosing a loan.