For Students Archives - Page 4 of 20

What Is the Minimum Credit Score Needed for Student Loans?
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.

January 23, 2025 | By: Ascent
How to Calculate Student Loan Interest: A Step-by-Step Guide
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.

August 11, 2025 | By: Ascent
Why You Should File the FAFSA® as Early as Possible
The Free Application for Federal Student Aid, or FAFSA, is the first step in the application process for federal student aid, encompassing all federal loans. For students looking to secure financial aid for the upcoming school year, it can pay off to be proactive and file the FAFSA as early as possible. Read on to find out why, plus we'll review important FAFSA deadlines, eligibility requirements, and tips for a successful application process. 5 Benefits of Filing the FAFSA Early Filling out the FAFSA early maximizes your chances of securing the most possible federal aid. The sooner you apply, the sooner you’ll have a clear view of the bigger financial picture. This gives you more time to seek out alternative sources of funding—like private student loans—should federal aid not cover the full cost of your tuition and expenses. Those are just a few reasons to file the FAFSA as early as possible. Here’s the full list: 1. Maximize Financial Aid Opportunities Some federal student aid, namely grants and scholarships, areis awarded on a first-come, first-served basis. Completing the FAFSA early gives applicants the best chance of securing the maximum federal financial aid they may qualify for. 2. Access to State Grant Programs Not only is some federal aid granted on a first-come, first-served basis, but a portion of state aid is as well, especially state grant programs. Since many of these programs determine eligibility at least partially through the FAFSA, filing early may increase your eligibility for state grants and other state student aid. 3. Avoid Last-Minute Panic The college and student aid application processes can be stressful, especially when facing critical deadlines. Avoiding last-minute rushing gives you time to ensure your FAFSA submission is thorough and accurate. This can help curb your stress levels and ensure you can provide the most accurate information on the application. 4. Ease of Comparison Between Colleges The sooner you complete the FAFSA, the sooner you may receive your financial aid award letters. This can give you more time to carefully compare the aid packages offered by different colleges and make the best possible decision for your educational (and financial) future. 5. More Time to Pursue Other Forms of Financial Aid Submitting the FAFSA and getting your results as early as possible gives you more time to explore and pursue other financial aid options, such as scholarships and private grants. It also gives you more time to pursue private student loans as a supplemental option should federal aid leave a gap between funding and your total expenses. FAFSA Eligibility Requirements To qualify for federal student aid through the FAFSA, prospective students must meet the following general FAFSA eligibility requirements: A demonstration of financial need as determined by information provided in the FAFSA U.S. citizenship, U.S. national status, or eligible noncitizen status A valid Social Security Number, unless the applicant is a citizen of the Freely Associated States A high school diploma, GED, or other recognized ability-to-benefit alternative Enrollment (or acceptance for enrollment) in an eligible degree or certificate program Continued satisfactory academic progress In addition to the above, you’ll also have to consent to have your personal tax information transferred into the FAFSA form and sign a certification statement pertaining to your intended use of funds and qualification to obtain further education. For a visual aid on the information above, check out this FAFSA eligibility infographic. The Importance of Meeting FAFSA Deadlines Meeting FAFSA deadlines is critical for several reasons. First, it can help ensure that you receive the maximum federal financial aid you’re eligible for. Second, it can impact your ability to meet deadlines for state and institutional aid programs. Lastly, advanced planning can help your family plan for college funding and their anticipated contribution. Conversely, missing important FAFSA deadlines can have negative consequences. The pool of available funds you’re eligible to receive might be reduced, limiting financial aid options, and the disbursement of your financial aid may be delayed. Additionally, many aid programs have strict deadlines, leaving applicants who file late submissions ineligible for certain types of aid. With that in mind, here are some important FAFSA deadlines for the 2024-25 school year: December 31, 2023 – The 2024 FAFSA goes live; the earliest possible application date February 1, 2024 – The first state deadline for priority consideration (some states don’t offer priority consideration, and those that do have different dates) April 2, 2024 – The first state deadline for program consideration (all states have different dates) June 30/July 1, 2024 – The deadline for many states (most states set their deadline either at this point or before) June 30, 2025 – The last possible date a 2024 FAFSA can be submitted September 14, 2025 - The deadline for any corrections or updates to be submitted School deadlines – Each institution may have its deadline; check with the school you’re interested in attending The 2025-26 FAFSA form is scheduled for public release on or before December 1, 2024. Additional deadlines will be added as they are announced, so check back for updates. Although not ideal, there are still options if you submit the FAFSA late. However, it will limit your options considerably. According to StudentAid.gov, “some states and colleges continue to award aid to FAFSA latecomers.” Still, your odds of receiving aid become slim, and payouts are often lower. Contact the financial aid offices at schools you’re considering for assistance and information on their options for late submissions. Private scholarships, grants, and loans are one possibility to potentially replace federal or state aid for students who miss deadlines. Tips for a Successful FAFSA Application Completing the FAFSA can significantly impact the financial aid you’re eligible to receive. Here are some tips for a successful application. Gather the necessary documents and information immediately and keep them in a single, easily accessible location. This includes Social Security numbers, tax returns, tax forms (such as your W-2), and other financial records. Provide up-to-date and fully accurate information to increase approval chances and minimize delays or errors in the application process. Complete and submit the FAFSA as early as possible to maximize possible aid. Seek professional guidance from financial aid professionals or counselors if you are unsure about any aspect of the FAFSA. Keep track of all federal, state, and institutional application deadlines that apply to you, and make sure you meet them. Carefully review the confirmation page for accuracy and completeness after you submit the FAFSA and address any issues immediately. Update your FAFSA if your financial circumstances change significantly. Learn More with Ascent You deserve to achieve your academic dreams. But to do so, you must be able to fund them. Whether you’re looking for graduate or undergraduate student loans, Ascent is here to help with a range of options to finance your education, including cosigned student loans and no cosigner student loans. Visit our Bright Future Hub for more resources to help you succeed in college and beyond. FAQ Do you get more money from FAFSA if you apply early? You can often get more money from FAFSA if you apply early. There are a few reasons for this. You may be prioritized for the many federal, state, and institutional aid programs allocated on a first-come, first-served basis. You will also have more time to apply for scholarships, grants, and private student loans and to compare the financial aid packages offered by institutions you’re considering. Why is it best to file the FAFSA as early as possible? There are many reasons why it’s best to file the FAFSA as early as possible. Some of the most important include: Maximizing the financial aid opportunities available to you Maximizing access to state and institutional aid programs Receiving award notifications faster Having more time to make informed decisions about college acceptance and financial planning Maximizing the chances of taking part in the Federal Work-Study program Planning and comparing financial aid packages and eligibility as soon as possible Meeting institutional and state financial aid application deadlines Reducing stress and last-minute panic Minimizing the possibility of mistakes and errors that could negatively impact financial aid eligibility When should I fill out my FAFSA? You should fill out your FAFSA as soon as possible. The FAFSA for the 2024-25 school year is live and can be filled out anytime. Be aware that each state and institution will have its own FAFSA application deadlines, as will many private scholarships and grants. The last possible day to fill out the 2024-25 school year FAFSA is June 30, 2025.

October 08, 2025 | By: Ascent
Which Interest Rate Is Better for a Student Loan, Variable or Fixed?
If you submitted the Free Application for Federal Student Aid (FAFSA) and are anticipating a gap between your covered financial aid and your tuition expenses, you’re not alone. Like many students and families in your situation, you’re likely exploring supplemental financing options to help you cover the rising costs of college. This is where options like scholarships and private student loans can come in handy. Understanding the different options for student loans can be a stressful, but important step as you prepare for your educational journey. One consideration you need to make when selecting a student loan is the interest rate. You can choose from two major types of interest rates: fixed or variable. Whether a student loan with a fixed or variable interest rate is a better choice depends on many factors, including your financial circumstances, educational goals, and loan terms. Read on to understand how student loans work and the differences between fixed and variable interest rate student loans. What Is a Fixed Rate Student Loan? A fixed rate student loan is a type of student loan with an interest rate that remains the same for the duration of the loan. The payment due on a fixed rate student loan will not change over the life of the loan. Fixed rate loans can help protect borrowers from increases in market interest rates that could otherwise cause payments to fluctuate. Fixed rate student loans can cover some education-related expenses, including tuition, fees, housing, textbooks, and other educational necessities. Fixed rate loans can apply to undergraduate, graduate, and professional degrees. Typically, repayment on a fixed rate student loan begins once the student completes their degree program, and repayment is done through installments over a fixed number of years. Many lenders offer flexible repayment options, so be sure to compare lenders while you are doing your research. Pros and Cons of Fixed Rate Student Loans There are many advantages of fixed rate student loans, including: Stability and predictability of monthly payments. The ability to accurately and confidently budget your future payments. Protection for borrowers from fluctuations and increases in market interest rates. Knowledge of the total cost of the loan from when it is signed. A potentially lower overall cost if interest rates rise significantly over time. High desirability for risk-averse borrowers. On the other hand, there are also some disadvantages of fixed rate loans, those include: Likely higher initial interest rates. Likely higher initial loan payments. No benefits or cost savings if interest rates go down. Lower flexibility than variable rate loans. Potentially higher overall loan costs when market interest rates remain low over time. The loan may not reflect future economic conditions or market interest rates. What Is a Variable Student Loan? Also known as an adjustable-rate student loan, a variable student loan has an interest rate that can periodically change. In most circumstances, changes in variable rate student loans are caused by updates to a specified financial index. The terms of your loan will determine how often the interest rate may change, whether annually, semi-annually, or monthly. Due to changing interest rates, the payments on a variable rate student loan may fluctuate significantly over the life of the loan. Variable rate loans expose borrowers to fluctuations in market interest rates. Like fixed rate student loans, variable rate loans can be used to pay expenses for undergraduate, graduate, and professional degree programs and for education-related expenses, such as tuition, fees, room and board, textbooks, and other necessities. Repayment for variable rate student loans typically begins after the borrower is no longer enrolled in their degree program unless deferred for some reason, such as entering a new degree program. Repayment takes place over a set time through installments. Like fixed rate loans, multiple student loans can be consolidated into a single variable rate student loan. Pros and Cons of Variable-Rate Student Loans There are many advantages of variable rate student loans, including Likely lower initial interest rates. Likely lower initial loan payments. May decrease interest rates and loan payments over time. High cost-effectiveness in low interest rate environments. Potentially lower overall loan costs in low interest rate environments. Greater flexibility than fixed rate student loans. May better reflect future economic conditions or market interest rates. On the other hand, some disadvantages of variable rate student loans include: Expose borrowers to interest rate volatility. Eliminate the ability to accurately budget for more than a short period in the future. Potentially higher interest rates. Potentially higher monthly payments. Potentially higher overall loan costs if interest rates rise over time. Less desirable for risk-averse borrowers. May expose borrowers to greater refinancing risks. Dependency on market conditions. Uncertainty of the total cost of the loan until it is paid in full. Do not protect borrowers from fluctuations and increases in market interest rates. Factors to Consider When Choosing Between Fixed vs. Variable Rate Student Loans Many factors must be considered when choosing between a fixed rate vs variable rate student loan. Here are some of the primary factors you should evaluate: The Interest Rate Outlook: If interest rates are expected to remain low or increase gradually over the life of the loan, variable rate loans are often more desirable, and vice versa. Risk Tolerance: If you prefer stability, accurate planning, and low risk fixed rate loans are a better choice. If you are willing to accept some risk of paying more under certain market conditions in order to potentially pay less initially, variable rate loans might be a better choice. Loan Repayment Timeline: The shorter the loan repayment time, the less likely you are to experience significant interest rate changes. Loan Terms and Conditions: Be sure to carefully review the terms and conditions of each loan you are considering, including any and all rate caps or limits on variable rate adjustments. Overall Financial Goals and Stability: You should consider your financial priorities, such as a consistent monthly payments, minimizing risk, paying the least possible amount, projected salary, and much more. Should I Get a Fixed or Variable Rate Student Loan? Deciding on what type of loan to apply for can be challenging. Unfortunately, unless you can predict the future, it is impossible to know whether a fixed or variable student loan will be the right choice for you. However, making an informed decision about the best decision for your situation is possible. The first thing to consider are your loan options based on income, credit score, and other eligibility criteria. You may only get approved for certain loans depending on your credit score and other factors. You will need to compare all the terms and conditions of the specific loans to decide on the right one for you. When comparing fixed vs. variable rate student loans, you must balance many factors and consider your circumstances and preferences. For example, if you are uncomfortable with risk, a variable rate loan will probably not appeal to you. On the other hand, if the potential to save money over the long term is worth some risk to you, a variable rate loan might be ideal. If you anticipate your salary will remain relatively stable over time, a fixed rate loan might be more advantageous. For a better understanding of your potential rates and repayment options, it can be helpful to review some hypothetical APR and repayment examples. If you are ready to view your personalized rate, you can check your rate in minutes without impacting your credit score. Learn More with Ascent Choosing the right student loan is a major decision that will impact your finances during and after college. Knowledge is power, so research which loan type is best for your unique circumstances. Whether you are looking for more information on how to get a student loan or comparing undergraduate student loans, Ascent is here to provide various financial wellness resources for students and families. If you need an additional financial boost to help cover your tuition expenses, we offer several loan types to meet your needs including cosigned student loans and no cosigner student loans. We look forward to helping you take the next step toward pursuing your goal in college, and beyond. Fixed Rate vs Variable Rate Student Loan FAQs Can I Change my Student Loan from Variable to Fixed? In many cases (but not all), you can change your student loan from variable to fixed if you meet certain criteria. You can do so by consolidating multiple student loans into a single fixed rate student loan or by refinancing the loan. Whether or not these options are available to you, as well as the specific terms that are available to you, will depend on several factors, including the type of student loans you have, the policies of the lender or loan servicer, the terms of your loan, and your creditworthiness and repayment history. Can you Refinance on a Fixed Loan? It may be possible to refinance a fixed rate student loan. You will typically have to obtain a new loan with different terms, including a new interest rate. Whether you can refinance a fixed rate student loan depends on several factors, including the loan type, the lender’s policies, and your financial situation. It may also be possible for you to consolidate your fixed rate student loans with other student loans to form a new, single student loan.

November 04, 2024 | By: Ascent
Graduate PLUS Loans: Your Comprehensive Guide
Diving into advanced education is an exciting chapter in anyone's life. It's a time of personal growth, career development, and pursuing passions. But the financial side of this journey can sometimes feel overwhelming. That's where Direct PLUS or Grad PLUS Loans come in. These college loans are designed to support graduate and professional students pursuing higher education. In this guide, we'll learn about Grad PLUS Loans and explore their features, benefits, and how they may fit into your financial strategy for an advanced degree. Key Takeaways The passage of the “Big Beautiful Bill” (OBBBA) eliminates Grad PLUS loans for new borrowers after July 1, 2026. Grad PLUS Loans are federal loans for graduate and professional students that can cover the full cost of attendance—including tuition, housing, and other expenses—once other federal loan options have been exhausted. Eligibility for Grad PLUS Loans requires a credit check, enrollment at least half-time in a qualifying program, and meeting federal student aid requirements. Students with adverse credit may still qualify with a cosigner or extenuating circumstances. Grad PLUS Loans offer fixed rates and borrower protections, but private graduate loans may offer unique benefits or more competitive interest rates for borrowers with strong credit. Repayment typically begins six months after graduation or dropping below half-time. Interest accrues during this grace period, so it pays to understand how capitalization works and whether making early payments is worth it. What is a Grad PLUS Loan? A Grad PLUS Loan is a federal loan that can help cover some school costs for those pursuing advanced graduate degrees. What sets Grad PLUS Loans apart from other student loans is their ability to cover the total cost of attendance. Beyond just tuition, these loans can also apply to books, housing, and other education-related expenses, filling in the financial gaps where other types of aid may fall short. Graduate PLUS Loans are specifically available to graduate and professional students who have exhausted their eligibility for Direct Subsidized or Unsubsidized Loans. Grad PLUS loans are made available by the U.S. Department of Education and have a fixed interest rate that is set annually. Interest rates for Grad PLUS Loans may be higher than other federal student loans, so be sure to factor this in when planning repayment. Eligibility of Grad PLUS Loans While Grad PLUS Loans offer valuable financial support for graduate and professional students, they are not available to just any student. To qualify for Grad PLUS Loans, you must meet certain criteria: Enrollment Status: You must be a graduate or professional student enrolled at least half-time in a program leading to a graduate or professional degree or certificate at a school participating in the Direct Loan Program. General Eligibility for Federal Student Aid: Like other federal student loans, you need to meet the general eligibility requirements for federal student aid. This includes being a U.S. citizen or eligible non-citizen, having a valid Social Security number, maintaining satisfactory academic progress, and not defaulting on federal student loans. Satisfactory Credit History: Graduate PLUS Loans require a satisfactory credit history. While you are not required to meet a specific credit score threshold, having an adverse credit history may affect your eligibility. An adverse credit history means you’ve experienced certain negative credit events, such as bankruptcy, foreclosure, or defaulted loans. If you have an adverse credit history, you may still be eligible for a student loan with a cosigner. You may also be able to demonstrate extenuating circumstances. If you’re looking for a Ph.D. student loan or loan for your MBA, Grad PLUS Loans can be an option to cover the full cost of attendance for your graduate or professional studies. However, if you do not qualify for Grad PLUS loans or find that federal loans do not cover your full tuition expenses, you can consider private graduate student loans to help supplement this gap. Key Features of a Grad PLUS Loan Grad PLUS Loans are designed with the students’ best interests in mind, offering financial support and protections to make pursuing higher education more attainable and manageable. Before deciding, it's essential to understand all aspects of these loans and consider how they align with your unique financial needs and academic goals. Here are several of the key features of these types of loans: Loan Limits Grad PLUS Loans stand out for their flexible loan limits. Unlike other federal loans, which have set annual and lifetime limits, the Grad PLUS Loan is designed to cover the full cost of attendance. This means they can cover everything from tuition and books to housing and other education-related expenses, making them a particularly beneficial option for programs with high tuition costs. Interest Rates Interest rates can make a big difference in the total cost of a loan. With Grad PLUS Loans, you don't have to worry about fluctuating rates. Grad PLUS Loans offer fixed interest rates, which means the rate you get when you take out the loan won't change over the life of the loan. The stability of the Grad PLUS loan can make it easier to plan for your loan repayment. Borrower Protections Life can be unpredictable. Graduate PLUS Loans come with borrower protections, providing a safety net during challenging times. These protections include options for loan deferment, forbearance, and access to income-driven repayment plans. These options can provide much-needed flexibility when dealing with financial hardship or changes in income. Application and Repayment of Grad PLUS Loans Applying for a Grad PLUS Loan is a straightforward process, like other types of Federal Aid: 1. Complete the FAFSA: You can start the process by filling out the Free Application for Federal Student Aid (FAFSA). This form determines your eligibility for federal aid, including Grad PLUS Loans. 2. Submit the Direct PLUS Loan Application: After completing the FAFSA, proceed to the Direct PLUS Loan Application. This application is specific to the Grad PLUS Loan and provides information about your school, desired loan amount, and authorizing a credit check. 3. Credit Check and Eligibility: Unlike other federal loans, Grad PLUS Loans require a credit check to assess your creditworthiness. An adverse credit history may affect your eligibility, but you can still qualify by obtaining an endorser or documenting extenuating circumstances to the U.S. Department of Education. 4. Loan Approval and Award Letter: Once approved for the Grad PLUS Loan, your school's financial aid office will send you an award letter. This letter outlines the loan amount and provides instructions for accepting or declining the loan. Repayment of Grad PLUS Loans As you progress through your academic journey, understanding the repayment process for Grad PLUS Loans is crucial for your financial success. Here's a breakdown of key points to keep in mind: Grace Period: Repayment for Graduate PLUS Loans typically begins six months after you graduate, leave school, or drop below half-time enrollment. During this grace period, you have time to organize your finances and start earning an income before making payments. Interest during the Grace Period: It's essential to be aware that interest continues to accrue on the loan during the grace period. If you defer payments, the accrued interest will be added to the loan balance (capitalized) when repayment begins. Repayment Options: During the grace period, you can make interest-only payments or defer your payments. Considering your financial situation and goals will help you decide on the best repayment option for your circumstances. Grad PLUS Loans Compared to Other Options Grad PLUS Loans are a great resource, but they are just one of the financial aid options available. It's important to consider all your options and choose the best fit for your needs. Federal Loan Options vs. Grad PLUS Loans Federal loans, such as Direct Unsubsidized Loans and Direct Subsidized Loans, are often the first stop for many students. These loans typically offer lower interest rates than Grad PLUS Loans, which can result in lower overall costs. However, they also have lower loan limits, which may only cover part of the cost of attendance for some programs. This is where Grad PLUS Loans can step in to fill the gap. Private Student Loans vs. Grad PLUS Loans Private student loans are another option to consider if you want to close the gap between your federal loan coverage and your tuition costs. These loans can offer competitive interest rates (especially for borrowers with strong credit), flexible repayment terms, and additional benefits not offered with federal loans. At Ascent, we are proud to offer over 40 repayment options–more than any other lender–in addition to perks like 1% cash back at graduation, dedicated U.S.-based customer service, and access to career coaching resources and internship support. The Importance of Financial Literacy and Loan Repayment Financial literacy plays a vital role in the lives of students taking on student loans. As you embark on your educational journey, it’s important to equip yourself with the knowledge and understanding of various financial concepts related to borrowing and repaying loans. Being financially literate means comprehending the terms and conditions of your loans, the impact of interest on your total repayment amount, and the array of repayment options available to you. Financial wellness is important to Ascent, which is why our borrowers have access to extensive financial literacy throughout their application and once they are a borrower, to ensure students (and cosigners) understand the responsibilities of borrowing money to pay for college. Learn More with Ascent At Ascent, we are committed to helping students navigate the financial aspects of their educational journey. Whether you want to learn the basics of student loans or explore options for graduate student loans, we provide the necessary resources and support. Explore our financial wellness resources or contact us to learn more about Ascent’s graduate student loan options today. FAQ How Much Can You Borrow with Grad PLUS? One of the standout features of Grad PLUS Loans is their flexible loan limits. You can borrow up to the full cost of attendance minus any other financial aid received. This includes tuition, books, housing, and other education-related expenses. This flexibility can make Grad PLUS Loans a valuable resource for funding your education. What is the Difference Between a PLUS Loan and a Grad PLUS Loan? While PLUS Loans and Grad PLUS Loans are part of the federal loan program, the main difference is who can borrow the money. PLUS Loans are available to parents of dependent undergraduate students, while Grad PLUS Loans are designed for graduate and professional students. Do Grad PLUS Loans Get Forgiven? Yes, Grad PLUS Loans are eligible for certain forgiveness programs. For example, if you work in public service, you may be eligible for Public Service Loan Forgiveness. Grad PLUS Loans are also eligible for income-driven repayment plans, which cap your monthly payments at a percentage of your income and can lead to loan forgiveness after a certain period.

August 11, 2025 | By: Ascent
What is FAFSA and how does it work?
The Free Application for Federal Student Aid (FAFSA) is a form current and future students need to fill out to get financial aid. Learn more from Ascent Funding.

December 29, 2025 | By: Ascent
How Much College Aid Are Students Missing Out On?
How Much College Aid Are Students Leaving on the Table?

August 15, 2024 | By: Ascent
When Do I Have to Pay Back My Student Loans?
The world of higher education often means navigating student loans, which can sometimes be confusing. These loans can be a helpful tool for pursuing your academic goals, so you might wonder, "Do I have to pay student loans while in school?” The answer to this question depends on several factors, and understanding how student loans work and your financial responsibilities while still in school is key to managing your finances effectively. This article will guide you through the details of when, and how, you might need to start repaying your student loans based on your unique circumstances. Key Takeaways Different loan types have different repayment timelines. Most federal loans offer a grace period following graduation, but some private loans may require immediate repayment. Federal student loans generally provide more flexible repayment options, including income-driven plans, deferment, forbearance, and loan forgiveness options. Private loan repayment terms vary by lender. It’s important to shop around before borrowing. Ascent provides repayment options for 5, 7, 10, 12,15, or 20 years, depending on the loan type. Interest begins accruing on student loans immediately after disbursement. While the government pays interest on subsidized loans during enrollment and the grace period, students can reduce overall costs on unsubsidized or private loans by making interest payments while in school. Understanding your loan terms is critical to avoiding surprises, including when repayment starts and how interest accrues. Review your loan agreement to understand your repayment obligations. Understanding Payment Obligations for Private Student Loans Private student loans are a popular choice for many students and can help bridge the financial gap if federal loans and scholarships fall short of your total expenses. However, it's essential to be aware that private student loans often come with repayment terms different from those of federal loans. Repayment obligations for private student loans can vary depending on the lender. Some lenders may require you to start making payments while still in school. In contrast, others might offer a grace period that allows you to begin repayment after graduation. Reading and comprehending your loan agreement will clarify when your repayment obligations kick in. Key Differences Between Private and Federal Student Loan Repayment While private and federal student loans finance education, they differ in repayment terms. Federal student loans may provide more flexibility, including income-driven repayment plans, loan forgiveness programs, and additional deferment and forbearance options. On the other hand, private student loans are typically offered by banks, credit unions, and financial institutions. These financial institutions generally set the terms and conditions, including interest rates and repayment schedules. Private loans may offer different flexibility or benefits than federal loans. Nevertheless, they can be a valuable resource for students seeking additional funding beyond federal aid. Here’s a quick comparison between the two: AspectFederal Student LoansPrivate Student LoansRepayment OptionsOffer income-driven plans, loan forgiveness, deferment, and forbearance optionsRepayment terms set by lenders may vary in flexibilityInterest RatesFixed or variable rates set by the governmentSet by the lender and may depend on creditworthiness and market conditionsGrace PeriodTypically offers a grace period after graduation before repayment beginsVaries by the lender; some may require immediate payments during school while other lenders, like Ascent, offer up to 9 months of a grace period Loan ForgivenessEligible for public service loan forgiveness and other forgiveness programsFew private lenders offer forgiveness programsDeferment and Forbearance OptionsGenerous deferment and forbearance options for economic hardshipsTerms and availability may vary depending on the lender External Factors Impacting Student Loan Repayment Your ability to repay your loan isn’t always in your control. Broader economic conditions like recessions or high inflation can take a toll on your wallet. So can personal financial challenges like changes in income, employment status, or family size. What can you do if you find yourself struggling to keep up with payments? Some options to explore include: Deferment or forbearance: You may be able to postpone making student loan payments or reduce your payment amount through deferment or forbearance options. Generally, you’ll have to meet certain criteria to qualify. And you may still accrue interest during pauses in payments. Loan consolidation: You can combine multiple federal loans into a single Direct Consolidation Loan, which may provide access to additional repayment plans and options. Loan forgiveness programs: Depending on the industry you work in, you may qualify for partial or full student loan forgiveness. For example, public service workers meeting specific criteria may be able to take advantage of the Public Service Loan Forgiveness (PSLF). Income-driven repayment (IDR) plans: IDR arrangements enable you to base your monthly payment on income and family size. Examples include Income-Based Repayment (IBR), Pay As You Earn (PAYE), Income-Contingent Repayment (ICR) Plan, and the Saving on a Valuable Education (SAVE) Plan (formerly known as the REPAYE Plan). In more extreme cases, events like the COVID-19 pandemic can lead to temporary relief measures, such as loan forbearance or suspension of interest accrual. Do You Have to Pay Private Student Loans While in School? Whether you pay student loans while in school depends primarily on your lender's terms and conditions. Some private student loan lenders require you to make full or interest-only payments while in school, while others may defer payments until after you graduate or leave school. Many private lenders offer flexible repayment options you can tailor to your situation. For example, Ascent offers some of the most diverse repayment options in the industry, with options spanning 5, 7, 10, 12, 15, or 20 years, depending on the loan type. Eligible borrowers may also be able to pause payments for up to 9 months after graduation, or take advantage of our progressive repayment program that lets you gradually increase your payment amount over time. It's important to understand your loan's terms before you borrow. If you're unsure about any aspect of your loan agreement, don't hesitate to ask your lender for clarification. Remember, taking out a student loan is a significant financial decision, and it's essential to understand all the details. Interest Accrual During School One important aspect to consider when taking out private student loans is how interest accrues on student loans during school. Unlike some federal student loans, which may not accrue interest while in school or during deferment periods, private student loans typically accrue interest from the day the loan is disbursed. This means that even if you're not required to make payments while you're in school, the interest on your loan continues to accumulate. This accruing interest can significantly increase the total amount you owe over the life of your loan, so it’s important to factor this into your financial planning. Important Considerations and Resources When dealing with private student loans, it's crucial to consider all aspects of the loan, not just the repayment terms. Be sure to consider the interest rate, whether fixed or variable, and any potential fees associated with the loan. It's also a good idea to check if there are any benefits or discounts available, such as cash back rewards for automatic payments. Remember, if you're struggling with managing your student loan payments, plenty of resources are available to help. Many lenders offer hardship programs or temporary payment reductions for borrowers facing financial difficulties. Don't hesitate to contact your lender if you have trouble making payments. Loan Terms and Repayment Conditions Understanding your loan terms and repayment conditions is crucial when dealing with private student loans. These terms dictate how much you'll pay over the life of your loan and when you're expected to start making payments. Some private lenders like Ascent offer flexible repayment options for college loans, so read your loan agreement carefully or contact your lender for details. Contacting Loan Services If you have any questions or concerns about your private student loans, don't hesitate to contact your loan servicer. Your loan servicer is there to help you understand and manage your student loans. They can provide information about your terms, repayment options, and potential fees or penalties. Other Financial Assistance While student loans can be a helpful tool in financing your education, they're not the only option. Scholarships, grants, and work-study programs can also provide valuable financial assistance. These types of aid can be particularly beneficial as they don't need to be repaid. Here's a more detailed look at these alternatives: Scholarships: These are funds that you do not have to pay back and are often awarded based on merit, which can include academic, athletic, artistic, or other abilities. Scholarships can come from various sources, including schools, private organizations, nonprofits, and community groups. Merit-based Scholarships: These scholarships are awarded based on a student's academic, artistic, or athletic talent rather than financial need. They can come from colleges or private organizations. Need-based Scholarships: These scholarships are awarded based on a student's financial need. They often require students to complete the Free Application for Federal Student Aid (FAFSA®) to determine eligibility. Grants: Like scholarships, grants are a type of financial aid that you do not have to pay back. However, grants are typically need-based and may be offered by your state or federal government, college or career school, or a private or nonprofit organization. Federal Grants: The U.S. Department of Education offers several federal grants to students attending four-year colleges or universities, community colleges, and career schools. Pell Grants and Federal Supplemental Educational Opportunity Grants (FSEOG) are the most common. State Grants: Many states offer grants, which can be awarded based on need, merit, or specific areas of study. Check with your state's Department of Education to see what's available. Work-Study Programs: These programs provide part-time jobs for students with financial needs, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student's course of study. Exploring all your options when planning for your education costs is important since every little bit of financial aid can help. Many students will combine several financial aid sources to fund their education to ensure they’re maximizing their federal aid. Learn More with Ascent At Ascent, we're committed to helping students navigate the world of student loans during school and beyond. Whether you're just starting your college journey or are already working on repaying your loans, we're here to help every step of the way. Check out our financial wellness hub for more tips on student success, and keep in mind that all Ascent borrowers have access to AscentUP, a resource of academic support, budgeting tips and workplace readiness skills. FAQ Do I Have to Pay Student Loans While in School? Whether or not you have to pay student loans while in school depends on the type of loan and the lender's terms. For federal student loans, repayment generally starts after you graduate, leave school, or change your enrollment status to less than half-time. This means that you typically won't have to make loan payments during your time as a student, allowing you to focus on your education without immediate financial burdens. The situation can be different for private student loans. Some private lenders may require payments while you're still in school. In contrast, others may offer deferment options until after you graduate. If your lender requires in-school payments, factoring this into your budgeting and financial planning during your academic years is crucial. How Soon Do You Usually Have to Pay on a Student Loan? The repayment timeline for a student loan can vary based on the type of loan and the terms set by the lender. For federal student loans, repayment typically begins six months after you graduate, leave school, or drop below half-time enrollment. These six months are known as a grace period, which allows you some time to find stable employment and get your finances in order before starting to repay the loan. During this grace period, interest may still accrue on certain federal loans, so it's important to understand the implications. Repayment terms for private student loans can vary widely, so check with your lender to understand when your repayment obligations will begin. Some private lenders may offer a grace period, which could be shorter or longer than the federal grace period. Knowing these timelines will help you plan and ensure a smooth transition into the repayment phase after completing your education.

August 11, 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
Private vs. Federal Nursing Loans: Which is Best?
Federal vs.

June 09, 2025 | By: Ascent
How to Afford Nursing School
Pursuing a nursing career is an exciting decision that brings the promise of affecting countless lives. As you embark on your career in healthcare, it’s important to have a roadmap of how you’ll finance your nursing school education. From tuition and textbooks to uniforms and lab fees, the cost of nursing school can quickly add up. Through careful planning and research, nursing school students can navigate the path to a rewarding career while gaining financial wellness skills along the way. This article will share key tips on how to enter this rewarding field. Key Takeaways Scholarships and grants don’t need to be repaid, making them valuable for reducing out-of-pocket costs while paying for nursing school. Nursing-specific awards are available from schools, nonprofits, and healthcare organizations. Students should first complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for financial aid for nursing school, including federal grants and loans. Private student loans can help pay for nursing school if scholarships, federal loans, and grants don’t completely cover the cost. Compare rates, terms, and benefits across multiple lenders to make an informed decision. Loan forgiveness programs like Public Service Loan Forgiveness (PSLF) and Nurse Corps Loan Repayment Program (NCLRP) can significantly reduce student debt, especially for nurses working in underserved areas or high-demand fields. Understanding How to Afford Nursing School Nursing school is an investment in a rewarding career, but it comes with its costs. While tuition and other expenses might seem overwhelming at first, know there are multiple financial options you can explore to help you along your journey. From scholarships to federal aid, there are many avenues designed to help students pay for college. By researching and understanding these options early on, you can create a financial plan that allows you to focus on your education while responsibly covering your expenses. 4 Ways to Pay for Nursing School Nursing students often finance their education using one or a combination of the following options. If you plan to attend a nursing program and can’t fully cover your expenses with funds on hand, you may consider the following options: 1. Federal Student Loans Federal student loans serve as a lifeline for countless students, offering a more affordable way to finance higher education. These loans are backed by the U.S. government, which often means they come with lower interest rates compared to their private counterparts. Determining your eligibility for federal student loans begins with completing the Free Application for Federal Student Aid (FAFSA®) application. The FAFSA is a primary gateway to federal financial assistance for higher education and can open doors to various federal aid options tailored to your financial situation. Federal student loans offer various repayment plans, some of which are based on your post-grad income. This can make them a more manageable option for new graduates. However, it's crucial to borrow only what's necessary. While federal student loan terms are more lenient, the loan is still borrowed money that can result in long-term financial implications if not repaid. To secure federal aid, it's essential to submit your FAFSA application early and ensure all information is accurate to maximize the aid you can receive. Regularly checking for updates and understanding the yearly deadlines can also position you better in the aid allocation process. 2. Private Student Loans When federal loans, scholarships, and grants aren't enough, private student loans are an option that can help bridge the financial gap. Private lenders like Ascent offer student loan options like undergraduate student loans and medical school loans to help students finance their education. Private lenders may offer larger loan amounts compared to federal loans. It’s essential to understand the interest rates and repayment terms to ensure you don’t take on a loan you can’t pay back. Each lender will have unique eligibility criteria, so compare rates and terms across multiple lenders to ensure you're making an informed decision. 3. Nursing Scholarships Scholarships are an asset for nursing students because they provide financial support without the burden of repayment. Numerous organizations, institutions, and even individuals offer scholarships for students pursuing a nursing career. Whether based on academic excellence, community involvement, or specific areas of nursing, these awards can significantly reduce out-of-pocket expenses. When applying for scholarships, start your search early, make sure you fit the eligibility criteria, and keep an organized list of deadlines so you don’t miss out on potential funds. Additionally, university hospitals and nonprofit organizations like the American Association of Colleges of Nursing offer scholarships and financial aid resources for students across the country. If you’re passionate about nursing but wondering how to pay for nursing school, nursing school scholarships are the best place to start. 4. Grants for Nursing School Much like scholarships, grants are financial gifts that students don't have to pay back. The primary difference between scholarships and grants is that grants are typically awarded based on financial need. Sources of grants can be diverse, ranging from federal programs like the Pell Grant to state-specific grants and private organizations. Because they do not need to be repaid, grants tend to be highly sought after. Early application and thorough research are key to helping secure funds to help you manage the costs of your nursing education. Student Loan Forgiveness and Reimbursement for Nursing Students The healthcare industry needs dedicated professionals, and underserved areas can be impacted by the lack of health resources. Recognizing this, various loan forgiveness programs have been established to incentivize nurses to serve in these communities. Some of these programs include the Public Service Loan Forgiveness Program (PLSF), Nurse Corps Loan Repayment Program (NCLRP), and many more. By committing to work in specific medical fields or regions with a high demand for healthcare services, nurses can benefit from significant reductions in their student loan balances. Some of these programs might cover a portion of the loan, while others might offer complete loan forgiveness. Working in underserved areas exposes nurses to diverse medical cases and allows them to make impactful differences in communities that truly need their expertise. While the financial benefits are undoubtedly appealing, the opportunity to profoundly impact lives and communities is an equally compelling reason for many nurses to consider these programs. Resources and Support for Nursing Students If you’re ready to embark on the journey to a rewarding career in healthcare, remember that you’re not alone. From public and private scholarships to work-study programs, there are many financial resources dedicated to helping nursing students pay for school. Financial Literacy for Nursing Students While investigating how to pay for nursing school, it's vital to equip yourself with the knowledge and tools to manage your finances effectively. Financial literacy is more than just understanding how much you owe; it's about making informed decisions that can benefit your financial health in the long run. If you’re considering an advanced degree, understanding the nuances of graduate student loans is an important first step. Graduate student loans often have different terms, interest rates, and benefits than undergraduate student loans. Additionally, if you're venturing into specialized areas of nursing or other health professions, many lenders offer health professions student loans with terms that meet the unique needs of students in health-related fields. By understanding your financial options early on, you'll be better prepared to navigate the complexities of student loans, budgeting, and saving. This knowledge will not only help you during your time in school but also set the foundation for a secure financial future as you embark on your nursing career. Learn More with Ascent Embarking on a nursing career is a fulfilling journey, and the experience can be made even more seamless if you know how to plan for and manage your expenses. From federal and private student loans to scholarships and grants, there are multiple options to help you fund your education and achieve your dreams. As you navigate the path to becoming a nurse, Ascent has the resources and support you need to make informed financial decisions about your education. Visit our financial wellness hub or check out our blog for more tips and student success resources to help you in school and beyond. FAQ How do you get nursing school paid for? Securing funds for nursing school involves exploring a mix of financial aid options. Scholarships and grants are excellent starting points as they don't require repayment. Additionally, federal and private loans can bridge any remaining financial gaps, but it's crucial to understand their terms and repayment structures. How much is nursing school? The cost of nursing school can vary widely based on several factors. Different institutions have distinct tuition rates, and the program's length, whether it's an associate's, bachelor's, or advanced degree, can influence the overall cost. To get a clear picture, prospective students should reach out to specific schools or programs for detailed tuition and fee information. Do nurses get tuition forgiveness? Indeed, many nurses can benefit from tuition forgiveness programs. These initiatives are often designed for those who commit to working in underserved or high-need areas for a specified period. By fulfilling these work commitments, eligible nurses can have a portion, if not all, of their student loans forgiven.

August 11, 2025 | By: Ascent