For Parents and Cosigners Archives - Page 4 of 8

Webinar Recap: Cracking the Code on Scholarships
As the cost of education increases, scholarships have become a lifeline for countless students looking to pursue their academic dreams. However, with so much competition and so many options, the scholarship search can be disheartening. Understanding the nuances of scholarship applications, finding the right opportunities, and writing a winning scholarship essay remain daunting tasks for many. Luckily, Ascent and Road2College joined forces to discuss scholarship options, featuring panelists Will Greiger, Allie Danziger, and Debbie Schwartz. In case you missed our webinar, “Cracking the Code: Your Guide to Unlocking Scholarships,” you can watch some of the recording here: https://www.youtube.com/watch?v=X53OnJ5VQp0 What are the different types of scholarships? Understanding what types of scholarships are available is critical when trying to decide which ones to apply for. Will Greiger, CEO and Co-founder of Scholarships360, breaks down the four main types of scholarships: 1. Federal & government scholarships: These include grants such as the Pell Grant and other types of aid awarded through the Free Application for Federal Student Aid (FAFSA ®). Some states also have aid programs that fall into this category as well. 2. Scholarships from colleges: Like government scholarships, a college may also use information gleaned from your FAFSA to award you need-based aid. Many college scholarships are based off academics or talents (aka merit-based scholarships). A subset of college scholarships is a departmental scholarship, which you might earn for being in a specific area of study, studying abroad, or being a part of a club. 3. Non-profit scholarships: Non-profits are well-known for their generosity in scholarship awards. Some examples of these organizations would be the Elks Club, the Girl Scouts, or a smaller, local non-profit in your community. 4. Scholarships from private organizations: Many private companies also give out scholarships! To date, Ascent has given away over $330,000 in scholarships to students and families. Enter now for a chance to win one of our no-essay student scholarships – it only takes a few minutes! You do not need to have an Ascent loan to enter. https://www.ascentfunding.com/scholarships/ Common scholarship myths To get you started on the right foot, we take a moment to break down and debunk these top misconceptions about applying for scholarships: 1. “Only top achievers & athletes get scholarships” - While being a star athlete or straight A student can be a great thing to mention when applying for scholarships, there are plenty of opportunities out there if that’s not you. Researching for more niche scholarships that align with your unique passions, or entering more content style scholarships could be the best way to go. Plus, many scholarships are focused more on the financial need of the applicant, meaning federal and government scholarships may be a great fit for you! 2. “Scholarships are too competitive, so don’t bother applying!” - Applying for financial aid may feel competitive, but researching and applying for scholarships that align with your talents to boost you toward the top of the applicants. Applying for local scholarships will also mean less competition. 3. “Start researching for scholarships your senior year of high school” - While there may be plenty of scholarship opportunities out there during your senior year, there are scholarships available to you as early as your freshman year and plenty to keep exploring throughout your college journey. 4. “You must be a great essay writer to win scholarships” - Essay scholarships can feel daunting, and you should always invest time and effort into your submissions, but showcasing your creativity and who you are as an individual in your essay can be just even more valuable. Starting your scholarship search: Before diving into your scholarship hunt, our panelists suggest a quick look inward to find what you should be looking for in a scholarship: - Consider what makes you unique and start there. This will give you insight on the types of scholarships you should look for based off your passions, talents, and life experiences. - Be specific when you consider all the qualities of yourself that you might include in your scholarship research. Even the smallest or strangest interests could generate scholarship opportunities! - The more niche, the better! Finding a scholarship opportunity revolving around a lesser-known hobby or interest can mean less competition and a better chance of winning that money for school. A few key takeaways: As you embark on your journey of paying for college, we’ll leave you with these four key takeaways to keep your scholarship search successful: 1. Scholarships offer invaluable financial support for students and families on their educational journey. 2. Start your scholarship search early to maximize your opportunities 3. Leverage your various scholarship research tools, including online platforms, educational institutions, and organizations 4. Apply for as many scholarships as you can! Congrats to our latest scholarship winner! One of our top priorities at Ascent is to contribute to the success of all students. That’s why we have given over [scholarship_awards_amount] in scholarships to date! Join us in congratulating our most recent scholarship winner below: Kamiyah B., Pace University, Unlocking Scholarships $500 Scholarship Giveaway

January 17, 2025 | By: Ascent
How Long Does it Take to Get Student Loans? (Federal and Private)
How long does it take to get a student loan? Factors such as when you submit the Free Application for Federal Student Aid (FAFSA®), your credit score, and the loan certification process all play a role in determining when you will receive your student loan funds. However, we understand that you must get your student loans in time to pay for tuition, books, and other college expenses. Let’s unpack how long the application and review process takes for federal and private student loans and the steps you can take to get ahead of the process. Key Takeaways Start your student loan application as early as possible—ideally right after your college acceptance—to give yourself enough time to complete paperwork, resolve issues, and secure funding before tuition is due. Federal student loans typically take several weeks to a few months to process, depending on when you complete the FAFSA and how quickly your school certifies the loan. Private student loan timelines vary by lender but often take anywhere from a few days to a few weeks, depending on eligibility checks, credit evaluations, cosigner involvement, and school certification. Loan disbursement usually happens shortly before the academic term begins, with funds going directly to the school to cover tuition and fees. Monitor your loan status using lender-specific portals or federal tools like the FAFSA mobile app, and contact your lender directly if you haven’t received your loan funds by the expected date. When to Apply for Student Loans The best time to apply for student loans is as soon as possible. For most students, this is shortly after their acceptance. There are several reasons for this timeline. Overall, loan providers (including the federal government) receive increasing applications as the school year approaches. Some loans and other forms of student aid are granted on a first-come-first-served basis, meaning that an earlier application makes it more likely you will receive them. Because timing fluctuates considerably from applicant to applicant, it’s challenging to estimate exactly how long it takes for student loan approval. However, you should still be aware of the general timeline for the process. Starting the loan application process as early as possible will help save you some stress in the long run and may even increase your chances of securing funding. It’s also important to consider that even if you qualify for federal loans, these may only cover part of the cost of college attendance. Because of this, it’s common to apply for other financing options, such as private student loans, or alternative forms of financial aid, such as grants and scholarships. Starting the application as soon as possible will give you more time to find supplemental funding if needed. How Long Does it Take to Get Federal Student Loans? How long does it take to get a student loan from the federal government? The average time to receive your funds can vary significantly based on several factors, primarily when you fill out your FAFSA application. The process generally takes several weeks to a few months, depending on how many applications they receive. Here is a general list of steps to be completed to receive your funds: Create an FSA ID: The Federal Student Aid (FSA) is your electronic signature for the FAFSA and other federal student aid documents. To create your FSA ID, visit https://studentaid.gov/fsa-id/create-account/launch. Gather necessary information: You will need your Social Security Number, full name, date of birth, tax information, and other details about your family’s financial situation. Complete and submit the FAFSA: The Free Application for Federal Student Aid is the application for federal student aid and will determine your qualifications for federal student loans. Receive and review your Student Aid Report (SAR): After processing your FAFSA, the government will send you your SAR. Review for accuracy and make any necessary corrections. Review financial aid offers: Colleges and universities you have applied to will send you financial aid offers once your FAFSA has been processed. Accept or decline federal student loans: If you choose to accept the loans, you will follow the instructions provided by the school. Complete entrance counseling: If you are a first-time borrower of federal student loans, you must complete entrance counseling to learn about your rights and responsibilities as a borrower. Sign the Master Promissory Note (MPN): The MPN is a legal document in which you promise to repay your federal student loan. How Long Does It Take to Get a Private Student Loan? Like federal loans, the typical timeline can vary. This is because each lender has its process, and each applicant must navigate it uniquely. Generally, most applications take a few days to several weeks or months. Here is a general list of steps to complete when working with Ascent to receive your funds: Determine loan amount – Calculate the amount you need to borrow, including tuition, fees, living expenses, and other educational expenses. Remember that private loans can cover up to 100% of the total cost of attendance, minus other aid received. Check your eligibility – Every lender has eligibility requirements for borrowers, but most consider credit history, income, enrollment status, and similar factors. Gather necessary information – The exact information required will vary but will likely include personal, academic, and financial information. Apply for the loan – Most loan applications can be completed online or at a lender’s office. Pass the credit check – Most lenders require a credit check to determine your creditworthiness. With Ascent, you can check your rate in under 3 minutes without impacting your credit score. Find a cosigner if necessary – If you lack sufficient credit history or do not meet the eligibility requirements of the loan, you may need a cosigner. (Even if you qualify without a cosigner, applying with one may qualify you for a lower rate or better terms). Get the loan approved – The lender will review your application after it’s submitted. Review and accept loan terms – If you are conditionally approved, you must carefully review all the loan terms, including interest rate, fees, and repayment terms. Then, you must decide whether to accept the loan offer. Complete school certification – Once you accept the loan offer, the school’s financial aid office may need to certify the loan amount by confirming your enrollment status and ensuring the loan amount adheres to the school’s cost of attendance. Finalize the loan – Complete any additional requirements the lender demands, such as signing the loan or providing additional documentation. Once your loan is finalized, review your loan terms and conditions to determine when the payment will be issued to your school. For example, Ascent’s student loans are distributed to schools on the second Wednesday after the program starts. How to Monitor Your Student Loan Status For a federal student loan, you must first access your personal FSA account to monitor your federal student loans. From there, you can view loan details and identify the loan servicer for each loan. You can also create an account on studentaid.gov using our FSA ID to access your federal student aid information and manage your loans. There is also a Federal Student Aid Mobile App that can help monitor your federal loan status. The process of monitoring your private student loans will vary significantly from lender to lender. The best way to begin is to contact your lender directly. Check your loan agreement or the lender’s website for contact information. Many lenders have an online portal where you can log in to view your account, while some (including Ascent) may offer a mobile app for added convenience. If you have specific questions or concerns about your student loan, contact your lender’s customer service department or the phone number on your monthly statement. If you’d like to contact your dedicated Ascent college student loan specialist, contact us at 877-216-0876 or help@ascentfunding.com. Private Student Loans vs. Federal Student Loans: What’s Right for Me? Choosing what type of loan is right for you is entirely determined by your unique needs and circumstances. Some students will find that federal loans alone will meet their needs, but most will find they will need additional funding sources. Similarly, the amount of aid available to students will dramatically differ based on needs. The only way to know for sure whether federal, private, or both student loans are the right choice for you is to complete the application process and compare your options. Whatever option you choose, you must begin the process as soon as possible to give yourself the most time and options. For more information about student loans, visit our Student Loans 101 page or learn how to get a student loan. Learn More with Ascent Prioritizing your student financial aid and ensuring it is all in place before you start your college education is crucial to your success with the loan process. That means you should start the student loan application process as soon as possible. Luckily, you can start the process today. Ascent offers a variety of undergraduate student loans and graduate student loans to help you achieve your financial goals and academic dreams. With cosigned student loans and no cosigner student loans, you can find a loan type that best fits your unique needs. How Long Does it Take to Get a Student Loan FAQs How Long Do Student Loans Take to Process? The time it takes to process a student loan varies significantly by the lender and the school. While some loans may be processed in as little as a few days, others may take several months. Are Student Loans Given to You Immediately? Most student loans are paid out after some time and will be disbursed directly to the school shortly before the start of the school year. Why Hasn’t My Student Loan Been Disbursed? The only way to find out why your student loan hasn’t been disbursed is to contact your lender and speak with one of their representatives. Some common reasons why a lender would not have disbursed a student loan include incomplete loan requirements, enrollment status, school certification delays, incomplete verification process, incomplete loan acceptance, or the loan not yet scheduled to be disbursed.

August 11, 2025 | By: Ascent
Paying for Law School: Everything You Need to Know
Pursuing a career as a lawyer can set you up for a rewarding future in the legal field, but the path to passing the bar requires a significant investment of time and finances. Paying for law school might seem like a big hurdle, but you can still achieve your dream with preparation and research. Understanding the cost of your education and finding the financial aid that works best for you is crucial to your success. Continue reading for some tips and cost breakdowns to get you on your way to paying for law school. Calculating the Cost of Law School: What Your First Year May Look Like If you’re ready to become a lawyer, understanding how you plan to pay for law school should be your first step. Remember, law school expenses extend beyond tuition; costs like textbooks, living expenses, and bar exam preparation can add up. The first step in your financial planning should be to calculate the total cost of your law school education. Tuition can vary widely depending on whether you attend a public or private institution or are an in-state or out-of-state student. Be sure to include other expenses like books, supplies, and living costs such as rent, utilities, and food. Sample Budget for the First Year of Law School Here's a sample budget for what the first year of law school might look like, broken down by category: Yearly Tuition and Fees Public School Tuition (in-state): $13,000 - $40,000 Private School Tuition: $45,000 - $69,000 Student Fees (library, gym): $1,000 - $2,000 Books and Supplies Textbooks: $1,000 - $1,500 Notebooks, pens, and other supplies: $100 - $200 Living Expenses Rent: $800 - $1,200 per month ($9,600 - $14,400 per year) Utilities (electricity, water, internet): $150 - $250 per month ($1,800 - $3,000 per year) Food: $300 - $500 per month ($3,600 - $6,000 per year) Transportation Public Transit: $70 - $120 per month ($840 - $1,440 per year) Car (if applicable): $200 - $400 per month ($2,400 - $4,800 per year) Health Insurance Student Health Plan: $1,500 - $3,000 per year Miscellaneous Personal Expenses (clothing, entertainment): $100 - $200 per month ($1,200 - $2,400 per year) Emergency Fund: $500 - $1,000 Total Estimated Cost for the First Year Public School (In-state): $45,000 - $68,000 Private School: $65,040 - $90,000 These figures are just estimated ranges, and the actual costs for your specific program can vary based on your location, personal spending habits, and other factors. How to Pay for Law School: 4 Tips After budgeting for school and living expenses, it’s time to get hands-on with the best tips to pay for law school. Utilize Financial Aid Resources Using all the financial aid resources available is crucial to determining how to afford law school. Start by filling out the Free Application for Federal Student Aid (FAFSA®) to determine your federal grants and loan eligibility. After assessing your FAFSA eligibility, make an appointment with your law school's financial aid office. They can usually provide students with personalized guidance and may know of school-specific scholarships or grants you can apply for. Other sources of financial aid, such as private loans or employer tuition reimbursement programs, may also be available if you're currently working and meet other eligibility criteria. Note: Stay up-to-date on the latest FAFSA deadlines here. Research Grants and Scholarships Scholarships and grants are invaluable resources that you don't have to pay back. Scholarships are often merit-based, while grants are usually need-based. Your first stop for both should be your law school's financial aid office, which can provide information on institution-specific opportunities. Legal organizations like the American Bar Association (ABA) and local bar associations also offer valuable scholarships to law students. Don't overlook your school's alumni network; many alumni groups fund scholarships for incoming students. In addition to federal grants, state governments offer grants, especially for residents attending in-state law schools. Law schools also offer need-based grants, so consult your financial aid office for details on your eligibility. Lastly, it’s a good idea to check with private organizations and foundations, such as the Law School Admission Council (LSAC), and your local, regional, or state bar association to see whether you qualify for grants based on either need or merit. Using Student Loans to Pay for Law School Utilizing student loans is a great option to pay for law school if you notice a gap in your financing. When considering using student loans, it's crucial to understand the terms and conditions of your loan and select a repayment plan that fits your budget and financial plans to maximize your financial wellness. Here are some tips for navigating the process: Research graduate school loans: Before embarking on your law school journey, understand the impact of attending law school on your financial future and carefully review the terms and conditions of potential loans. Graduate school loans are a great option for many. Explore all options: There are two main student loan options: federal and private law school loans. Federal loans often have lower interest rates and more flexible repayment options, but they may not cover all your educational expenses. Private law school loans can help fill the financial gap left by federal loans but may come with higher interest rates and less flexible terms. Plan early: After securing loans, plan your repayment strategy. Private loans offer grace periods and deferment options so you can focus on school and start paying off your loan after graduation, but it is still helpful to start budgeting for this as soon as possible. At Ascent, students can get up to a 1% discount when they sign up for automatic payments. Plus, when you enroll in auto payments, you never have to worry about missing a payment and what that may do to how much you owe. Be proactive: To minimize interest payments over the life of the loan, consider paying more than the minimum if your loan provider and budget allow it. Proactively planning your loan repayment can alleviate future stress and result in long-term cost savings. Learn More with Ascent From paying for college guides to undergraduate loans, Ascent is here to provide the tools and resources to make informed decisions about your education. Whether you're an undergraduate considering law school or already knee-deep in law study, explore our financial wellness resources for more tips on achieving your goals. FAQs Will FAFSA pay for law school? The Free Application for Federal Student Aid (FAFSA®) is the gateway to federal financial aid, including loans and grants for law school. While FAFSA itself doesn't pay for law school, it enables you to apply for federal financial aid that can help cover tuition and other expenses. It's important to fill out the FAFSA as early as possible to maximize your eligibility for federal aid. Law students often qualify for Federal Direct Unsubsidized Loans and Graduate PLUS Loans, which can substantially amountsto cover your school costs. Make sure to review the terms and conditions carefully to understand your repayment obligations. How do I waive my LSAT fee? The Law School Admission Test (LSAT) fee can be expensive for some prospective law students. However, the Law School Admission Council (LSAC) offers fee waivers for those who can demonstrate extreme financial need. The waiver covers the cost of two LSAT exams, the Credential Assembly Service fee, and a set number of law school reports. To apply for an LSAT fee waiver, you must provide detailed financial information to LSAC for review. This often includes tax forms and other financial documents. Approval can take several weeks, so try to apply before your LSAT test date to ensure you receive the waiver in time. What is the maximum federal loan for law school? The maximum amount you can borrow through federal student loans for law school varies depending on the type of loan and your circumstances. For Federal Direct Unsubsidized Loans, the maximum annual limit for graduate or professional students, including law students, is $20,500. However, you may also be eligible for a Graduate PLUS Loan, which can cover the remaining cost of attendance after other financial aid has been applied. There is no fixed maximum amount for Graduate PLUS Loans; instead, the limit is determined by your school's calculated cost of attendance minus any other financial aid you receive. Remember that both types of loans come with different interest rates and repayment terms.

January 17, 2025 | By: Ascent
Navigating Credit Scores: Your Key to Long-Term Financial Success
Your credit score is a number between 300 and 850 that’s determined by a range of factors including the current amount of debt you have, the type and number of bank accounts you have open, how you utilize your credit, your payment habits, and your credit history (if you have any). By understanding credit scores and why they matter, you’re well on your way to reaching financial independence. Why does my credit score matter so much? Many people think that the main reason they need a good credit score is the ability to borrow money. While this is true and better credit can lead to better approval rates for credit products (like a credit card or loan), lower interest rates, and better credit terms and benefits, a good credit score is also important for your career success. Many careers and professional opportunities today may require you to manage finances or determine your department’s spending and budget, and at the very least show that you are responsible with finances. Employers occasionally check credit history as part of the interview process – and you want your credit history to look good! Curious what kind of student loan rates you can get without impacting your credit score? Check your rates here. Have a lower score? Here are 6 ways to build your credit history: 1. Learn to budget Think of budgeting as a roadmap for your money. You calculate how much money you earn, and figure out what you can and can’t afford. When you budget well, you're more likely to pay your bills on time and manage your debts responsibly. This shows lenders that you're reliable, which can gradually increase your credit score. Whether it’s finding a mentor, using free education tools like AscentUP2, helpful budgeting apps, or keeping track of subscriptions that can sneak up on you, budgeting is essential for managing your finances effectively and achieving your financial goals. If you’re looking for more information on how other students budget, learn from Gemma Cook, a past intern at Ascent, on her best practices on our blog! 2. Apply for a secured card A secured credit card can help you build your credit history. As an example, with the NerdUp by NerdWallet card, you don’t need credit history to build credit history. Designed for people looking to build or rebuild their credit history, there’s no interest, no annual fees, no application fees, and no catch*. How the NerdUp by NerdWallet card works: Make a deposit: Put down an initial deposit of $100 or more to set your credit limit Build your credit: As you make on-time payments and strengthen your credit, you may start to become eligible for unsecured cards. Get a new card: When you're ready to graduate, NerdWallet will recommend smart unsecured credit cards from its partners based on your spending. 3. Keep track of deadlines to avoid late or missed payments Be sure to keep track of when your bills are due - if you miss a payment or pay late, it can negatively affect your credit score. But don't worry! By staying organized, being proactive, and making sure you pay on time, you're showing lenders that you're good at managing your money which gives you an opportunity to boost your credit score. Be sure to keep a planner or set calendar reminders with all your due dates and sign up for autopay to avoid late or missed payments! (TIP: Some lenders will give you discounted rates when you sign up for autopay.) 4. Consider credit counseling Credit counseling can be a smart move if you're struggling with debt or managing your finances. When you meet with a credit counselor, they'll take a close look at your finances, including your income, expenses, debts, and savings. Based on this information, they'll help you come up with a plan to manage your money better. Working with a credit counselor not only helps you manage your finances better but can also positively impact your credit score. So, it's not just about managing your money—it's also about making your credit score look good too! 5.Add your rental history to your credit reports Adding your rental history to your credit reports can be a smart move for building your credit history. Your payment history is a key factor in determining your credit score, and including on-time rental payments can demonstrate responsible financial behavior to lenders. By showing that you consistently pay your rent on time, you're building a positive credit history, which can help you qualify for loans, credit cards, and other financial products with better terms in the future. 6. Choose your lenders wisely Good lenders can help you build a strong credit history, making it easier to get approved for loans and credit cards in the future. But if you choose lenders who aren't so great—maybe they have sneaky fees or unfair practices—it could actually hurt your credit and wallet. At Ascent, we are committed to helping students and families build responsible credit; as a leading student lender, we are focused on each student’s journey to academic and financial success, ensuring they have the right tools, knowledge and skills to be set up for long-term success. We put our borrowers first with benefits like a 1% cash back graduation reward1, access to AscentUP2 a professional training platform to help learners get access to career readiness tools and resources that can help them succeed in school and in their careers, autopay discounts3, and much more. So, take your time, do some research, and choose a lender that treats you right, and helps you reach your credit goals without any nasty surprises! Your credit score can stick with you for a long time, but it doesn't have to be a burden. With the right tools and patience, you can build your score and create more opportunities for yourself. It's all about establishing credit responsibly, being proactive and managing your credit wisely by paying bills on time and keeping balances low. It takes time, but with dedication, you can make positive changes and set yourself up for financial success! *NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from Mastercard International Inc. The NerdUp maximum credit limit is $10,000. Any deposits above this amount will not increase your credit limit beyond $10,000. Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report. There are instances when cardholders will be assessed a fee, including but not limited to ATM withdrawals, cash advances, returned payments, or late payments. See NerdUp by NerdWallet and cardholder terms and conditions for details. 1Ascent’s 1% Cash Back Graduation Reward is for eligible college students only and subject to terms and conditions. Eligible students must request the graduation reward from Ascent. Learn more at AscentFunding.com/CashBack. 1% Cash Back Reward amount dependent upon total loan amount for Ascent college loan borrowers; approximately $365 average reward amount based upon eligible borrowers who received Cash Back Rewards in 2023.     2Eligibility for the AscentUP platform requires that a student be an undergraduate associated with an Ascent college loan, either as the borrower or through a parent, grandparent, guardian, or sponsor who has applied for an Ascent parent loan. Ascent’s graduate student loans and consumer loans for bootcamps do not qualify for access to AscentUP. Eligible students must agree to the AscentUP terms of service and privacy policy before accessing AscentUP. 3The 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. 

August 15, 2024 | By: Ascent
How Do Student Loans Work? A Comprehensive Guide for Parents
If your child plans to attend college, one of your primary concerns may be how to help them fund their education through options like undergraduate student loans. Student loans could help make their dreams a reality. But navigating the complex world of student loans isn’t easy. This student loan guide for parents covers what you need to know to support your child through the student loan process. We’ll demystify the process by breaking down everything from how to choose between federal and private student loans to how to consolidate and refinance student loans. Can Parents Get Student Loans For Child? As a parent, supporting your child through the student loan process helps pave the way for their academic and financial success. In addition to helping your child graduate with minimal debt, your involvement in the loan process could help them secure a larger loan amount or more favorable loan terms. Helping your child choose the right student loan typically begins with researching the types of federal and private student loans available. Before comparing lenders, you should also familiarize yourself with interest rates, repayment plans, loan forgiveness plans, and other loan terms. While student loans are one form of financial aid, you should encourage your child to explore all available financial aid options, including: Federal aid, such as Pell Grants and subsidized loans, may be available depending on your family’s financial circumstances. Students can determine their eligibility by completing the Free Application for Federal Student Aid (FAFSA®). Explore our FAFSA 101 guide for an in-depth review of the FAFSA application process and deadlines you and your child should be aware of. Scholarships and grants are available through various sources, including private organizations, charities, labor unions, community groups, and religious organizations. Some organizations award based on academic or extracurricular achievements, financial need, or a specific field of study, while some organizations (like Ascent) extend scholarship eligibility directly to parents. Private student loans are issued by banks, credit unions, and lenders like Ascent. Private student loans can cover any gap between federal aid and the full cost of tuition and expenses, helping to limit out of pocket costs. Private loan interest rates vary by lender and are influenced by the borrower’s credit score, credit history, loan type, and other factors. Private student loans may offer more flexible borrowing limits, more repayment options, and faster approval times compared to federal loans. Choosing Between Federal or Private Student Loans While thousands of student loan options are available, federal and private student loans are the two most common types. The United States government provides federal student loans and typically has uniform application processes, eligibility requirements, interest rates, and loan terms. Private student loans are issued by private organizations, with loan options, terms, and approval criteria that vary by lender. Federal Student Loans for Your Child Several types of federal student loans are available, each with unique terms and conditions. The most common include PLUS loans, direct subsidized loans, and direct unsubsidized loans. Parent PLUS loans are another loan option specifically designed to help parents finance their dependent children’s undergraduate education by bridging the gap in financial need not covered by other forms of aid. One major advantage of federal student loans is that the government offers several loan forgiveness and repayment programs. Two of the most prominent are: Public Service Loan Forgiveness (PSLF): This program is available to those working in qualifying public service jobs. Income-Driven Repayment (IDR): These plans base your monthly payments on your income, and the remaining balances are forgiven after a certain period. Federal loan repayment begins shortly after your child graduates. Typically, there is a six-month grace period before payments begin. Depending on your child’s financial circumstances, several repayment plans are available, including income-driven, as mentioned above, as well as standard, which offers a fixed monthly payment over a set period of time, usually 10 years and extended, which offers repayment beyond the 10 years. While it’s hard to know what post-graduation will look like, you can find comfort in options like student loan deferment and student loan forbearance which may also be available to help your child have a smoother repayment journey during financial hardship, if needed. Private Student Loans for Your Child Private student loans can help bridge the financial gap when federal student aid does not cover the full cost of your student’s degree. They can also help cover tuition expenses if your child is deemed ineligible for federal aid, based on financial need. Each private lender and loan type has unique qualification criteria, loan terms, and conditions. Carefully research your options and compare different lenders. Consider elements such as lender reputation, interest rates, repayment term options, quality of customer service, and if they offer support in your career journey post-graduation. Unlike federal student loans, which have fixed interest rates that remain the same regardless of market conditions, private loans may offer either fixed or variable rates that go up and down. Understanding the future economic outlook is critical when determining which type of interest rate will be best for your student over the long term. It is also important to know the repayment terms, grace periods, and available forbearance options, which can vary significantly from those available on federal student loans. Application Process and Eligibility Requirements While some lenders allow you to check your rates without a hard credit check upfront, private lenders generally conduct a credit check to determine loan eligibility. If your child has a limited credit history or poor credit, they may not be eligible for no cosigner student loans. However, as their parent, you may be able to cosign your child’s loan or apply for a parent student loan, the latter in which the parent or guardian is the sole borrower. Applying as a cosigner has several benefits. As a cosigner, you may help your child meet minimum qualification criteria, qualify for a larger loan amount, or secure more favorable terms. This decision should not be taken lightly, however, as cosigning means you will take responsibility for repayment of the loan if they cannot. Every private lender has a unique application process, and your child will need to apply directly with each of their chosen lenders with a separate application for each loan. Approval and available interest rates will be contingent on your child’s creditworthiness, including their credit score and credit history (or lack thereof). In addition, cosigning a loan can impact your credit positively or negatively, depending on how repayment is handled. Make sure that you and your child are fully aware of all terms and conditions before accepting any private loan to ensure you can fulfill your financial obligation. Planning for Student Loan Repayment with Your Child Helping your child plan for student loan repayment may dramatically improve their financial health and reduce their stress during and post-graduation. Charting a repayment plan is a big step toward managing your child’s student debt successfully and responsibly. It also helps them understand the implications of their financial commitment, budget effectively, and avoid stress. A structured plan can help your child make timely payments and build a positive credit history. Here are five tips for healthy repayment practices: ACH Payments: Set up automatic payments so you don’t miss a payment! Some lenders (like Ascent) offer a discount for enrolling in automatic payments. Proper Budgeting: Don’t budget just for student loan repayments. Craft a comprehensive budget that includes all monthly loan payments, essential living expenses, savings, recreational money, and all other regular expenses. Extra Payments: Making extra payments or paying more than the minimum when possible will speed up the repayment process and reduce the total interest paid. Some student loan providers will even offer discounts to incentivize borrowers to start making minimum payment during in school and grace periods. Refinancing: Refinancing can lower interest rates, decrease monthly payments, and lower the total repayment cost. Loan Forgiveness Programs: Forgiveness programs like PSLF offer a pathway to debt relief after a qualifying period, especially for federal student loans. Emergency Fund: Building an emergency fund provides a financial safety net that helps avoid missed loan payments when unexpected expenses arise. Additional Student Loan Resources for Parents Although the world of student loans can seem complex, your family is not alone in this process. Plenty of resources exist for parents and students alike to help navigate this major financial decision. Here are some to check out: Financial aid offices and counselors at colleges and universities you are considering Parent support networks like College Parents of America or institution-specific groups Online tools and mobile apps for tracking repayment of student loans and other debt, such as Mint and EveryDollar The Federal Student Aid (FSA) website The Institute of Student Loan Advisors (TISLA) Ascent’s Student Loans 101 guide and blog Learn More with Ascent At Ascent, we’re committed to helping your child achieve their educational dreams while building a strong financial foundation for their future. From our award-winning loan options to our dedication to student success and financial wellness, we go beyond the typical student loan experience. Our graduate and undergraduate student loans are designed with your family in mind. Whether you’re cosigning your child’s loan or applying for a parent student loan, Ascent has the right loan for you with some of the most flexible and competitive repayment terms in the industry. FAQ Do parents have to take out student loans for their kids? Parents do not have to take out student loans for their kids, and many lenders (including Ascent) offer non-consigned loans for students who qualify. A cosigned loan may be a good option for students who do not qualify for a loan in their name. A cosigned loan can help student borrowers build their credit history. In contrast, the added financial security of the cosigner may help qualify them for a better interest rate and loan terms. Plus, borrowers with cosigners can apply to release their cosigner after making 12 consecutive full, on-time payments. How much can a parent borrow for student loans? The amount a parent can borrow for student loans will vary from one parent to the next depending on their financial qualifications, the loan type, and the lender terms.

December 29, 2025 | By: Ascent
An Update on FAFSA Delays: What Parents and Students Need to Know
There have been countless adjustments to the Free Application for Federal Student Aid (FAFSA) process this past year, and the changes keep coming. A revamped FAFSA application process was introduced for the 2024-2025 academic year, with changes that aim to provide a smoother submission experience for students and families. One of the most pivotal changes was the shift from Expected Family Contribution (EFC) to the Student Aid Index (SAI) as the metric to help determine a family’s eligibility for federal student aid. Previously, many families completing the FAFSA thought the EFC was the amount they’d be expected to contribute to college costs. In reality, the EFC reflected the amount of aid families were eligible for. The “rebranding” of this metric as the Student Aid Index (SAI) was intended to reduce confusion, but that is apparently not what is happening in practice. FAFSA delays – What's going on? Problems in the FAFSA process are certainly coming to a boil, with some local governments even declaring a state of emergency over the issue. Recent data from the National College Attainment Network revealed the number of successful submissions among high school seniors has dropped nearly 30% from 2023. This drop is even more pronounced for low-income and minority families, which could exacerbate disparities in college attendance for the upcoming fall semester if more financially vulnerable families opt out of registration due to a lack of reliable funding. Technical glitches are behind some of the recent issues. Some returning FAFSA applicants have reportedly lost access to their submission data from the previous year. This means students looking to make minor adjustments to their existing FAFSA can no longer do so. Others have reported blank fields or incorrect codes on their processed forms. There may also be instances of the application platform importing incorrect or partial tax data, which can result in mismatched information. For example, applicants and contributors without a Social Security number may encounter an error message if the information they enter on the invitation doesn't match what's listed on their StudentAid.gov account. Additionally, a technical glitch reportedly prevented undocumented parents of U.S. citizen students from completing their portion of the FAFSA for months, with no known workaround. There has been a significant effort to find solutions to these types of FAFSA, according to fsapartners.ed.gov. [cross_promotion_banner] How Delayed FAFSA impacts students? For many students and their families, problems with the FAFSA are only adding to the existing pressures of the college application season. And the impact is alarming. Even College Decision Day, which typically falls on May 1, has been delayed by hundreds of schools that have yet to receive the FAFSA data needed to inform financial aid letters. This situation has created a sense of unease for parents reluctant to send their children off to college without knowing the full scope of their family’s financial commitment. In turn, students may hesitate to choose a school if they have not received their financial aid results. And they could be forced into a quick decision to meet college application deadlines. While some students await technical assistance for FAFSA glitches, non-U.S. Citizens looking for aid continue to await crucial answers about Social Security numbers and Federal Student Aid (FSA) IDs. Where can students and families go for guidance? The FAFSA situation is fluid and continues to evolve daily. One of the best things parents and students can do now is stay in the loop on all things FAFSA as the bugs are resolved. Monitoring updates via StudentAid.gov and utilizing their FAFSA Help Center can help students and families stay up to date. The Knowledge Center on the Federal Student Aid website is another helpful resource for real-time updates on the 2024-2025 FAFSA. What you can do while you wait: If you are awaiting IT assistance to complete the FAFSA, be proactive and ensure you have all your personal information and documentation ready. Who you can reach out to in the meantime: For updates tailored to your preferred colleges and your financial aid eligibility, you may want to reach out to the schools’ financial aid offices directly. Financial aid advisors may have advice on next steps specific to their college or university. They can also advise on additional funding options to explore while you await your FAFSA outcome. As you reach out to schools, it's a good idea to confirm their specific application deadlines and whether your school of interest has implemented a grace period to accommodate those impacted by the FAFSA delays. Explore alternative funding Financial aid can be a lifeline for many students, providing the necessary resources to pursue their career dreams. While the FAFSA issues are worked out, students can explore other ways to pay for college, including scholarships, grants, private student loans, and work-study programs. Each type of financial aid serves a unique purpose and has its own set of eligibility criteria and repayment terms, so be sure to do your research to understand which is best for your unique financial circumstances. For example, scholarships and grants are types of financing that do not need to be repaid, whereas federal and private student loans must be repaid with interest. Work-study programs, on the other hand, provide students with part-time employment to help pay for their education expenses while building valuable career experience. The Ultimate Guide to Paying for College offers expert tips and best practices for paying for college, including: Choosing a school that aligns with your budget Understanding tuition bills so you can manage them effectively Getting the most out of your financial aid Taking the stress out of student loans Borrowing responsibly This interactive guide gives parents, guardians, students, and cosigners the confidence to navigate college financing. Ascent is here to help! Ascent is committed to providing students and their families with the knowledge and resources to succeed this FAFSA season, no matter the obstacles. While you wait to hear back about your financial aid, consider the alternative routes you can take to pay for school. At Ascent, we’ve given out up to $80,000 in scholarships annually to students in need. Browse Ascent’s scholarship opportunities, including our monthly no-essay scholarship opportunities here. Check out our FAFSA resources to ensure the best chance of getting the funding you need for school. On the Ascent Blog, we lay out everything from the very basics of the FAFSA process to choosing the right school. And our Ultimate Guide to Paying for College can help deepen your understanding of the tuition process. We designed this quick and interactive program because Ascent cares about the ability of all students to receive aid and attend their dream school.

January 17, 2025 | By: Ascent
How to Read Your College Tuition Bill: A Guide
Starting college is an adventure filled with new experiences, learning, and personal growth. Part of this process is learning how to manage your finances to help ensure smooth sailing on your college journey. One of the first steps you can take to help effectively manage your college finances is understanding your college tuition bill. Knowing how to read your tuition bill can help inform your financial obligations as you explore your options to pay for school. Whether you are considering taking out college loans or tackling unexpected scenarios, like covering the cost of past-due tuition, staying updated on your college finances and being familiar with your financial documents can help save you time and reduce stress as you prepare for this journey. This article will explain what to expect from your tuition bill, how to interpret it, and what solutions are available if you encounter issues. What to expect from your college tuition bill If you are new to interpreting financial statements, you are not alone. For many students, receiving and understanding their first tuition bill might feel overwhelming. Your college tuition bill outlines the charges you must pay for the semester or quarter, so it’s important to understand the bill's components and when your payments are due. Keeping track of due dates and deadlines is crucial to avoiding late fees and complications. Colleges usually have a specified due date for settling tuition fees, and missing these deadlines can disrupt your education. For this reason, it’s important to consider funding options like scholarships or cosigned student loans early if your finances may fall short of your tuition expenses. How to read a tuition bill statement Reading your tuition bill statement is the first step to understanding your college costs. This document has many numbers and terms but breaking it down can make managing your money easier. Getting comfortable with the terms and expenses on your bill can help you plan and stay on track with your budget. Key components of a college bill Every college has its own bill format, but all tuition bills will display different aspects of your college experience. It’s important to familiarize yourself with your specific college's line items and wording. Here's a breakdown of the key components you might find on your college bill: Tuition Fee: The core cost of your education and the courses you'll be taking. Housing Charges: Costs for on-campus accommodation (if you choose to stay on campus). Meal Plans: Charges for the meal plans provided by the college. Lab Fees: Additional costs for courses with laboratory components. Library Fees: Fees associated with library services and resources. Sports Facility Fees: Costs of using the college’s sports and recreational facilities. Health Insurance Premiums: Charges for health insurance coverage provided by the college. Parking Fees: Costs associated with bringing and parking a car on campus. Other Miscellaneous Fees: Any additional costs or fees related to campus resources and services. Understanding and reviewing these charges will provide a clear picture of your financial obligation for the semester, quarter, or school year, which can help you plan accordingly. Payment options and due dates Various payment options are available when it comes to settling your college bill. These might include online payments, bank transfers, or even payments through checks. It's important to choose a method that is reliable and convenient for you. Some colleges also offer payment plans that allow you to spread the cost over a few months, making the payments more manageable. Late payments can lead to late fees, holds on your account, or, in severe cases, deregistration. If you cannot meet the payment deadline, look into options like loans for past-due tuition, which can provide a necessary financial cushion. Example of a college tuition bill Previewing a sample college bill can provide a practical perspective on what you can expect before receiving your own. Most colleges offer a breakdown of each charge, making understanding where your money is going easier. Analyzing each section will ensure you are well-informed and prepared to meet your financial obligations. A sample college bill might look like the below: Item Description Amount (USD) Tuition Fee Full-time undergraduate tuition $15,000 Housing On-campus housing for one semester $5,000 Meal Plan Standard meal plan $2,500 Lab Fees Chemistry & Biology labs $300 Library Fees Library resources access $100 Sports Facility Access Gym and sports facilities $200 Health Insurance Student health insurance $1,000 Parking Fees Semester parking permit $150 Technology Fee Campus Wi-Fi, computer access $250 Miscellaneous Fees Other campus fees $200Total$24,700 Resolving issues with your college bill Encountering issues with your college bill can be stressful, but knowing where to go on campus to ask questions can help relieve some anxiety. You can visit your financial aid office or contact the student account services center. They can clarify the charges and guide you through resolving any discrepancies. Understanding the financial aid and scholarships reflected in your bill is also crucial. Sometimes, financial aid may not be disbursed when the bill is generated, or other issues affect how your financial aid is reflected on the final bill. If there are errors, you can request a review or an adjustment to ensure your financial aid and scholarships apply to your tuition bill. Learn more with Ascent Embarking on your college journey is an exciting phase, and having a solid understanding of your tuition bill is a step towards a hassle-free experience. Whether understanding undergraduate loans or gaining more insight into managing your college finances, Ascent has a wealth of resources to help students and their families with the financial knowledge and support to prepare for this next step in your life. Visit ascentfunding.com today to access more financial wellness resources and tips for student success. FAQ How do I know if financial aid paid my tuition? Financial aid disbursement to your tuition account is usually reflected on your tuition bill. If your financial aid award covers your tuition, it will show a zero balance or even a credit if the aid exceeds the charges. However, you can check with the financial aid or student accounts office to confirm the disbursement. When do you need to pay your college bill? The due date for paying your college bill is usually specified on the bill itself. Meeting these deadlines is crucial to avoid late fees or other penalties. If you're enrolled in a payment plan, ensure you meet the deadlines for each installment to stay in good financial standing with the college. Does college debt ruin your credit? College debt, like any other debt, can impact your credit score. Timely payments on your college loans will positively impact your credit score, while missed or late payments can significantly lower it. If you’re behind on your payments, loans past due tuition can help you maintain a healthy credit score, which will benefit future financial endeavors in the long run. .wp-block-table td { border: 1px solid; padding: 2px 5px; } @media (min-width:991px) { .wp-block-table td { padding: 5px 10px; } }

January 17, 2025 | By: Ascent
FAFSA Application Timeline: How Long Does it Take to Process?
How long does the FAFSA take to process? We've compiled a quick reference guide on how long it takes to get FAFSA results.

January 17, 2025 | By: Ascent
Student Aid Index (SAI) vs. EFC - What's the Difference?
Understanding your financial aid options is one of the most challenging steps for students and families when applying to colleges. For most, this process begins by applying for federal financial aid through the Free Application for Federal Student Aid (FAFSA®). The FAFSA has included the Expected Family Contribution (EFC) for many years. This metric indicates the financial strength of a prospective student and their family and is used to help determine how much financial aid the student is eligible to receive. As of 2023, the EFC was replaced by the Student Aid Index, or SAI. The SAI was introduced as part of a larger series of changes designed to improve the FAFSA and the financial aid process overall. The SAI was specifically developed to eliminate some of the confusion regarding the EFC and to improve the calculation to more accurately identify students who are truly in most need of aid. This article will examine the differences between EFC vs. SAI and their role in applying for federal financial aid through the FAFSA. Key Takeaways The Student Aid Index (SAI) replaced Expected Family Contribution (EFC) beginning with the 2024-2025 FAFSA application cycle. SAI was introduced as part of the FAFSA Simplification Act in 2020 to make financial aid easier to understand for students and their families. While SAI and EFC both measure a student’s financial need, they are not the same. Under SAI, small-business and family-farm assets are counted rather than excluded, and the number of students in college at the same time is no longer factored in—both of which were part of the EFC calculation. The main advantage of the SAI over the EFC is that it requires less information from families, making the FAFSA process easier and more straightforward. What is Expected Family Contribution (EFC)? The EFC, or Expected Family Contribution, was previously used in the FAFSA application process to indicate a student and family’s financial strength. Prior to being replaced by the SAI, the EFC was used by colleges and financial aid offices to help determine financial aid eligibility. While its name has been changed, its function in the financial aid application process is the same. The EFC is an index used to compare a student’s financial needs against those of other students. The calculation is based on the financial information provided in the FAFSA and includes factors such as family income, family assets, family size, and other criteria. The EFC is not a dollar amount nor a reflection of the amount a family will be required to contribute toward tuition. It’s used by colleges and universities to compare students’ financial needs in relation to one another. A lower EFC correlates to greater financial need and eligibility for aid, while a higher EFC correlates to lower financial need and financial aid eligibility. What is the Student Aid Index (SAI)? Similar to the EFC (which it has now replaced), the SAI is a number the federal government provides after the FAFSA is submitted. This number is then used to help colleges and financial aid offices determine a student’s eligibility for federal financial aid. Like its predecessor, the SAI is calculated based on information provided in the FAFSA, including the income, assets, taxes, and demographics of the prospective student and their family. The SAI is not a dollar amount, and it does not represent the amount the student or their family must contribute. Instead, the SAI categorizes and compares students' financial abilities and needs. How Student Aid Index is replacing Expected Family Contribution In December 2020, the United States Congress passed the FAFSA Simplification Act, which mandated many changes to federal financial aid programs. For example, the act greatly simplified the FAFSA form, which will now be several dozen questions instead of over 100, and expanded eligibility for Pell Grants. One of the biggest changes the act mandates is the replacement of the EFC with the SAI. The FAFSA Simplification Act set deadlines for when different portions of the act were to go into effect. The initial change from the EFC to the SAI took place in 2023. Schools must switch from using the EFC to the SAI by the 2024-2025 award year when EFC will be discontinued entirely. The application process will be very similar for most students. Prospective students will apply for the newly modified FAFSA using the new form. The government will then provide them with their SAI in the same manner that they provided the EFC. [cross_promotion_banner] Student Aid Index vs. EFC: Key Differences The Student Aid Index was designed to provide more clarity around the meaning of the EFC, but not to completely change its function in the FAFSA process. In fact, the SAI is very similar to the EFC and is calculated almost identically. However, there are some key differences between EFC and SAI. Name Change – The term ‘Estimated Family Contribution’ was confusing in the FAFSA process, as many families assumed it was the estimated amount the family would be required to contribute. The Student Aid Index is less confusing and accurately reflects the number used. Elimination of the Small Business Exclusion – The EFC included a Small Business Exclusion, which allowed families to exclude certain small business assets from the assets reported on the FAFSA. The SAI no longer allows this exclusion. Modification of the Family Farm Exclusion – The EFC contained the family farm exclusion, allowing families to exclude certain family farm assets from the assets reported on the FAFSA. The SAI does not allow for this exclusion, but in some circumstances, the net worth of the family farm can still be excluded as an asset. Allowing of Negative Numbers – The EFC did not allow negative numbers. Instead, the lowest possible EFC was 0. The SAI does allow for negative results. The lowest possible EFC is -1,500. Elimination of Counting Children Currently in College – The EFC allowed parents to consider how many children they had in college. At one point in the calculation, the EFC allowed parents to divide by the number of children in college that they had. The SAI has entirely eliminated the number of students a parent currently has in college from the calculations. This is likely the most significant change for many families. There are also a number of benefits of the SAI vs. the EFC. Some of the most important include: Simplified Calculation – The SAI’s formula is simpler than the EFC, with fewer possible exclusions and steps. This makes it easier for families to understand and can reduce opportunities for misinterpretation. Increased Accuracy – Because there are fewer exclusions and steps to the SAI calculations, families have fewer opportunities to make mistakes about what can and should be included and what can’t and shouldn’t. Perhaps most importantly, the SAI results more accurately represent which students are truly in most need of aid. Easy Input – The SAI requires families to input less information. This makes the process easier, faster, and less likely to result in confusion or mistakes. Reduced Confusion – The EFC caused confusion because many people thought it was the amount the family would pay. The SAI eliminates this confusion, and more accurately represents its intended purpose. EFC vs. SAI: Adapting to changes in financial aid calculation If you’ve never applied for financial aid before, transitioning from the SAI to the EFC will not impact your FAFSA application process. It will impact only the terminology you see on your Student Aid Report (SAR), which you will receive after your FAFSA is submitted and processed. The biggest difference is that your SAI number is less likely to confuse you and more likely to accurately reflect your financial needs. Due to the modifications in how the SAI is calculated, some scenarios exist in which students may be eligible for less financial aid using the new SAI vs. the EFC. This is especially true for families with multiple children currently enrolled in college and those with small business or family farm assets. Learn more about SAI vs. EFC with Ascent Ascent is determined to support students in achieving their financial goals to succeed in college and beyond. Whether you’re looking to get ahead of FAFSA deadlines or are ready for a deep dive into FAFSA 101, we have the resources to help you navigate the college application process from start to finish. If your federal aid isn’t enough to fully cover your expenses, Ascent offers cosigned student loans and non-cosigned student loans to meet your unique needs. Check your rates today without impacting your credit score or contact us for more information. FAQs What Is replacing EFC? The SAI is replacing the EFC effective in the 2024-2025 award year, although it’s probably more accurate to say that the SAI is modifying and improving the EFC. EFC and SAI serve the same purpose in the federal financial aid process: to help the government and educational institutions determine which students most need financial aid. The SAI has refined the calculation and adjusted the verbiage to accurately reflect its purpose. Is EFC the same as SAI? The Expected Family Contribution (EFC) is not the same thing as the Student Aid Index (SAI). While the two are very similar, the SAI was introduced to replace the EFC, and there are a few key differences between the two. The SAI is calculated slightly differently from the EFC, especially regarding what families can exclude as assets and if families can consider the number of children they currently have in college. These changes make the SAI a more accurate reflection of which students actually have the greatest need for financial aid. The SAI has also been rebranded to eliminate confusion caused by the EFC. These differences will be minimal for most families, and their EFC and SAI will similarly impact what financial aid is available. Is EFC going away? The EFC will be retired in 2023. Beginning in the 2024-2025 school year, the federal government and schools that accept federal aid must fully replace the EFC with the SAI. Although the SAI is replacing and modifying the EFC, the two calculations are very similar, and the results will be very similar for most families. In fact, much of the EFC is included within the SAI, although some parts have been moderately changed.

August 11, 2025 | By: Ascent
How Does Tuition Work: Can I Pay in Installments?
Embarking on your college journey is an exciting new adventure, filled with the promise of new experiences, personal growth, and endless opportunities. But for many students, the looming shadow of tuition fees and associated costs can put a damper on this new chapter of life. This is where tuition payment plans may help provide some relief. Tuition payment plans, sometimes called college payment plans, are designed to break down a single tuition bill into smaller, more manageable payments. This can help you budget more effectively and make the financial weight of tuition payments feel less overwhelming. In this guide, we'll dive deep into tuition payment plans to help you make informed financial decisions about funding your education. Do Colleges have Payment Plans? Just like undergraduate and graduate loans, tuition payment plans are programs to ease the financial burden of higher education. These plans can act as a financial bridge for students and their families, providing an alternative to the traditional lump-sum payment method. Payment plans for college are offered by many educational institutions. In short, these plans break down tuition bills into smaller increments, which can be a big help when budgeting for the school year. By spreading payments over time, they may help relieve some of the financial strain that a semester of tuition can impose. The concept of a tuition payment plan is like an installment plan, which is commonly offered for major life purchases, such as furniture or cell phones. Tuition payment plans, however, are specifically crafted with a student's academic calendar and financial needs in mind. How does a tuition payment plan work? When you opt for a tuition payment plan, you enter into an agreement with your college or university. The agreement outlines the frequency and the amount of each installment. Depending on the institution and the specific plan, these installments may be monthly, quarterly, or by academic semester. Many tuition payment plans are interest-free, but some might have small fees or interest attached. This is especially common if the payment period extends beyond the academic year. It's important to familiarize yourself with the details of the plan to help you avoid—or at least anticipate— potential late fees or penalties. What costs do tuition installment plans cover? Tuition installment plans are designed to address primary academic expenses. These expenses often apply to the tuition itself, as well as other institution-mandated charges like lab fees or technology fees. Some plans may extend to cover room and board if you live on campus, which can further reduce your monthly expenses. It’s important to note that these plans usually don't extend to more variable expenses. This includes items like textbooks, personal supplies, and off-campus living costs. Check out our checklist to pay for college for important tips and resources that can help you plan for your total expected expenses. Navigating different types of tuition payment plans Whether you receive a monthly allowance, work part-time, or expect a lump sum payment or gift later in the year, most colleges offer plans to help you budget for college. Here’s a look at two of the most popular plans available today: Monthly installment plans For many students and families, managing large expenses can be daunting. Monthly installment plans offer a solution by breaking down your tuition bill into smaller, more manageable payments. Distributing the cost over several months may better align with the month-to-month budgeting habits of many households. This plan can be particularly beneficial if you receive a steady monthly income, ensuring college expenses stay consistent with their financial flow. Features: Splits the total tuition cost into equal monthly payments. Offers predictability for those who track to a monthly budget. May not require interest, but there might be a small administrative fee. Ideal For: Students and families with a consistent monthly income or prefer regular, smaller payments. Deferred payment plans Not everyone funds their college expenses with a regular monthly income. This is one reason some colleges offer deferred payment plans. This option benefits students utilizing non-recurring funds, such as scholarships, grants, or even personal savings, to cover tuition expenses. Certain types of funding are often received later in the academic year, and deferring a portion of the tuition allows for coordination between payment timing and incoming finances. Aligning these schedules can help students cover their educational costs without undue stress. Features: Allows students to defer a significant portion of their tuition. Payments are made after the semester concludes. May come with interest or a higher administrative fee. Ideal For: Students who expect to receive funds later in the academic year or have irregular income patterns. Advantages and drawbacks of tuition payment plans Understanding the pros and cons of tuition payment plans can empower students and their families to make informed decisions that align with their financial situations and goals. Here’s a look at the pros and cons. Pros Enables Manageable Payments Over Time: Tuition payment plans break down the hefty sum of tuition fees into smaller, more manageable payments. For instance, instead of paying $12,000 upfront for a semester, a student might pay $2,000 every month for six months. This structured approach can make budgeting easier and help reduce financial strain. Reduces the Need for Extensive Loans: By opting for a tuition payment plan, students might find they need to borrow less or not at all. For example, a student might only need a loan for half the tuition amount if they can establish a payment plan for the remainder. This can help reduce the future debt they take on through student loans. Often Interest-Free, Making It Cost-Effective: Many tuition payment plans are interest-free, which can result in significant savings over time. Let’s take a student who might otherwise take out a loan with a 5% interest rate. An interest-free payment plan could save hundreds or even thousands of dollars in interest throughout their education. Cons Not All Colleges Offer Them: While tuition payment plans are becoming more common, only some institutions offer them. A student might find their dream college, only to discover that such a payment option isn't available. This could complicate financial planning. Some Might Charge Setup or Late Fees: While the plan itself might be interest-free, there may be other costs. This is why reading the fine print before entering into any financial agreement is important. For instance, a college might charge a $50 setup fee, or late fees for missed payments. These fees can add up over time and cause financial strain, especially if the fees are unexpected. Doesn't Cover All College Expenses: A tuition payment plan may cover your primary academic costs, but what about textbooks, off-campus housing, or personal expenses? Relying solely on a payment may leave you short when it comes to these other essential costs. How to secure your tuition payment plan A good starting point to secure a tuition payment plan is calling your college's financial office or visiting their website. These platforms typically provide comprehensive information about available payment plans, including explaining the terms and conditions. Familiarize yourself with the application process, which usually involves filling out forms and providing financial documentation. Some colleges may have strict eligibility criteria to qualify for a tuition payment plan, such as maintaining a certain GPA or enrolling in a specific number of credit hours. Be sure to familiarize yourself with any requirements before applying. Remember that while tuition payment plans can help you more effectively manage your expenses, they may come with associated fees. Some colleges may charge a setup fee, while others might levy charges for late payments or modifications to the plan. Be aware of these potential costs upfront to avoid any unexpected surprises. Lastly, a pro tip for prospective enrollees: start your planning and applications early. Colleges often have deadlines for enrollment in these plans which can lead to missed opportunities. Early enrollment not only ensures you secure your preferred plan but also gives you ample time to adjust your budget and financial commitments accordingly. This can help eliminate last-minute scrambles and stress. Tips on making the most of your tuition payment plan While a tuition payment plan can help you better manage your finances, it is not a set-it-and-forget-it solution. Proactive planning and discipline are necessary if you want to really benefit from a payment plan. Here are some strategies that can help you make the most of your tuition payment plan: Budget Effectively: A well-structured budget is the backbone of a successful financial plan. Once enrolled, proactively setting aside funds for upcoming installments can help set you up for success once your next payment is due. These reserves could come from a portion of your monthly income or a savings account set aside specifically for this purpose. Familiarize yourself with budgeting hacks like the 50/30/20 rule, which can help establish a structured plan. Video Embed opportunity: https://youtu.be/fEp8cfM5rw4 Leverage Online Tools: The digital age has introduced a variety of useful tools designed to make financial management more accessible. Many colleges and universities offer online platforms where you can track, manage, and even modify your payment plan. These platforms often provide real-time updates on due dates, remaining balances, and payment histories. Some might even offer alerts or reminders, ensuring you're always in the loop about upcoming payments. Automate Payments: Automating the process is one of the most effective ways to ensure timely payments. Most financial institutions and college payment platforms allow for automatic scheduled payments. If you have the funds ready, using this feature can eliminate the risk of forgetting a payment. While automation can be a lifesaver, ensuring your linked account has sufficient funds is crucial to avoid overdraft fees. It is also good practice to periodically review your tuition statements to confirm the correct amounts are being deducted. By budgeting effectively, leveraging available tools, and automating payments, you can make the most of your tuition payment plan without additional stress. Learn more with Ascent Ascent is more than just a financial institution; we're a partner in your educational journey. Whether you are looking for budgeting hacks or tips on paying for college, we have the resources to help you make informed decisions. Learn more about our student loans or view our financial wellness resources for more student success tips. FAQ's Are tuition payment plans available at all colleges and universities? Tuition payment plans have become increasingly popular as a flexible financial solution for students, and many colleges and universities now offer them as an option. However, it's not a universal offering. The availability of these plans often depends on the institution's size, financial policies, and the demand from the student body. Can I use a tuition payment plan for both tuition and other college expenses? Tuition payment plans are primarily designed to help students manage the significant costs of tuition. Most plans will cover tuition and other mandatory fees associated with enrollment. In some cases, colleges might extend the plan to cover room and board, especially if housing is provided by the institution. Remember that discretionary expenses, such as textbooks, off-campus housing, or personal expenses, are typically not included. Getting a clear breakdown of what's covered under your plan is essential to avoid unexpected out-of-pocket expenses during the academic year. How does using a tuition payment plan affect my credit score? At their core, tuition payment plans are not credit agreements, so enrolling in one won't directly impact your credit score. However, the nuances come into play if the college or university involves a third-party lender or if there's a contractual agreement to pay. Missing payments or defaulting on your agreement can lead to negative reports to credit bureaus, which could adversely affect your credit score. Treating your tuition payment plan with the same financial responsibility as any other financial commitment is essential. Staying informed and making timely payments will ensure your credit remains unaffected while you pursue your education.

January 17, 2025 | By: Ascent
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