What should I do if my FAFSA has an error?

If you notice an error after submitting the FAFSA, don’t panic. You can correct most mistakes by logging into FAFSA.gov and clicking “Make FAFSA Corrections.” Review your Student Aid Report (SAR) for issues and update it as soon as possible to avoid delays in aid processing.

What happens if you make a mistake on the FAFSA?

FAFSA mistakes can delay your application, reduce aid, or even render a person ineligible for some programs. Errors like incorrect income details or Social Security numbers must be corrected immediately. Most issues can be fixed online, but you can also contact your school’s financial aid office for help.

What should you do if you submit a FAFSA application and realize there’s a mistake?

Log in to your FAFSA account, correct it, and resubmit the form in a timely manner. If the mistake involves a signature, parent information, or dependency status, follow the additional instructions provided.

How do I know if I did my FAFSA correctly?

After submission, you’ll receive a confirmation email and Student Aid Report. Review it to ensure all information is accurate and complete. If anything looks off, update it immediately. You can also contact your school’s financial aid office to confirm receipt and resolve any issues.

Blog Archives - Page 3 of 27

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

May 28, 2025 | By: Ascent
What to Do After College: A Practical Guide for Life after Graduation
Graduation is coming up soon, and with it comes a big question: What now? By now, you’re used to attending lectures, submitting assignments, and pulling the occasional all-nighter. So, what happens when the structure disappears, and the deadlines stop? Post-grad life can feel both exciting and overwhelming. Everyone’s asking, “What’s next?” and it’s okay if you don’t have the answer yet. It’s important to remember that graduating in a strong job market can look a lot different than graduating in a recession. Economic conditions can impact the opportunities available and the pace you move at, so give yourself some grace if things feel uncertain. Whether you’re starting a full-time job, considering grad school, or figuring things out one step at a time, there is no single “right” path. What matters most is choosing the best path for you. This guide will walk you through your options and help you navigate post-grad life with confidence. Take a Moment to Reflect If you’ve always wanted to write, cook, or learn a language, now is your chance! You’ve worked hard to get here; it’s healthy (and smart) to take a pause before moving into the next chapter. You can use this extra time to travel, volunteer, reflect, or recharge. Pursue personal goals you’ve always put off, whether it be a new hobby or finally going on that dream vacation. Journal or talk to a mentor to figure out what you want to accomplish, not just what’s expected. If you’re planning time off or thinking about travel, it’s also a good idea to create a basic financial plan. Budgeting tools like Ascent’s free budgeting resource can help you organize your expenses and feel more confident about your choices. Explore Career Options If you’re ready to work, it’s time to dive into exploring career opportunities: Identify your interests, strengths, and values. What industry do you want to work in, location, work-to-life balance, salary expectations. What does job security mean to you, and how important is it in your decision-making? Look into full-time jobs, internships, or freelance/part-time opportunities. Writing, tutoring, assistant roles, social media management, graphic design, etc. If you’re preparing to apply, check out a free resume template or visit Ascent’s Career Center for tools that can help you take the next step with confidence. Network through LinkedIn, Handshake, alumni groups, and local events. Polish your resume (and highlight that new degree!). Set up informational interviews (coffee chats) to learn from people already working in fields that interest you. Pro Tip: See if your professors or career service center at your school can help you connect with alumnae Remember: Don’t be afraid to apply even if you don’t meet 100% of the qualifications. Consider Graduate School or Additional Education Is grad school the right move—or just the “safe” next step? Graduate programs can open doors to specialized roles, higher pay, and advance research or leadership opportunities. But they’re also a major investment of time, money, and energy. It’s worth asking: is this path aligned with your long-term goals, or are you choosing it out of uncertainty? If you’re unsure, remember there are many ways to keep learning and growing without committing to a Master's degree. Alternatives include: Professional certifications (marketing, tech, finance, etc.) Coding bootcamps and short-term skill programs Online courses from platforms like Coursera, edX, or Google Career Certificates Professional skills training through AscentUP Before applying, ask yourself: Does this program directly advance my career goals? Am I pursuing grad school because it genuinely excites me or because it feels more comfortable than facing the unknowns of the job market? Would I benefit more from gaining hands-on experience first and reassessing it later? Can I speak to alumni from this program to learn about their outcomes? Tip: Compare program costs to potential salary increases and job placement rates to help evaluate long-term value. If you’re confident that further education is the right step for you but are concerned about financing it, resources like Ascent can help. They offer student loans not just for traditional graduate degrees, but also for bootcamps and professional development programs, supporting students in all stages of their learning journey. As you explore your options, take time to compare program costs with potential salary increases and job placement rates—this can help you evaluate the long-term value and return on your investment. Start Your Own Venture If you’re entrepreneurial, you can take this time to take a shot at your own thing! To minimize risk, start small, whether that be through side hustles, freelancing, or online businesses. Try platforms like Fiverr, Etsy, and eBay. You can also test your ideas with minimal investment. Try validating your concept by running a quick survey, gathering feedback, or soft launching on social media platforms like Instagram or TikTok to gauge interest. Use resources like the Small Business Administration, local incubators, or freelancing platforms. Open a separate business bank account, track your income and expenses, and investigate basic legal protections if needed. Building something of your own can teach you valuable skills. Why it’s worth it: Even if it doesn’t turn into your full-time career, starting something of your own builds practical, transferable skills from marketing and budgeting to client communication, project management, and resilience. It also gives you clarity on what you actually enjoy doing (and what you don’t). Best of all? You’ll walk away with a unique, real-world experience that stands out on your resume and gives you something memorable to talk about in interviews. Don’t Compare Your Journey to Others Everyone’s post-grad timeline looks different and that’s normal! Avoid getting trapped in comparisons on social media. Focus on your own growth instead of chasing someone else’s timeline. If social media tends to trigger comparison, try setting healthy boundaries through limiting screen time, muting certain accounts, or unfollowing pages that make you feel behind. Redirect that energy towards comparing how much you have developed and achieved over the years and reflect on how you can keep growing! Remember: Real success is built over years, not overnight. Conclusion + Next Steps There’s no single path to success after graduation, and that’s completely normal. Whether you’re diving into a new job, taking a moment to reflect, or still figuring things out, the most important thing is to start somewhere. Even small wins like updating your LinkedIn profile, scheduling a coffee chat, or signing up for a free course can help you build momentum. Uncertainty is part of the process, and it’s okay not to have all the answers right now. What matters is that you’re moving forward with intention and staying open to new possibilities. Looking for tools to support your journey? Ascent offers helpful student resources for planning your next move, financing continued education, and gaining confidence along the way. You’ve worked hard to get here. Keep going, and trust that you’re capable of building a future that feels right for you. You’ve got this.

May 12, 2025 | By: Kristina Nguyen
Do You Need Income for Student Loans?
Students often go directly from high school to higher education, and those who are just starting school haven’t had time to build work history. For those starting college later in life, you may be considering quitting your job to attend school. Students without a steady income will be glad to know that you can get a student loan without a job—but it depends on the type of loan you apply for. Federal student loans don’t require you to have a job or income. Private student loans generally require you to have income and a credit history, but there are ways to improve your chances of qualifying, like by applying with a cosigner. Understanding how income can affect your options can help you plan for school and avoid stress later, so let’s walk through what to know and how to get the funding you need. Key Takeaways You don’t need a job or income to qualify for federal student loans. Private student loans often require proof of income, but applying with a cosigner can help you qualify and, in some cases, secure a better rate. The Free Application for Federal Student Aid (FAFSA) is the key to getting federal aid and should be filled out every year. Before borrowing, be sure to look into free forms of financial aid like grants, scholarships, and work-study programs to help minimize your out-of-pocket expenses. Can You Get a Student Loan Without a Job or Income? Yes, you can get student loans without a job or steady income. In fact, many students borrow money for college before they ever get their first paycheck. While your income may matter in some cases, it’s not always a dealbreaker: Federal student loans do not require income or a credit check. These loans are based on your financial need, which is determined by the FAFSA. Private student loans often require income or a cosigner with income. Some lenders may look at your future earning potential or other criteria if you don’t have a job or a cosigner. Federal Student Loans: No Income Required Federal student loans provided by the U.S. government are a good option for students who may not have a job or steady income yet because they are based on financial need, not employment status or income. You can determine how much you can borrow by completing the FAFSA. While there are no income requirements, you’ll still need to meet the following criteria: Students must be U.S. citizens or eligible noncitizens. Students must be enrolled in an eligible certificate or degree program at an eligible college or trade school. The results of your FAFSA application will determine which types of loans you are eligible for and how much aid you can receive. Part-time and online students can still qualify for federal loans, but the amount may be lower than what full-time students can qualify for. You’ll typically need to be enrolled at least half-time to be eligible, which means completing at least 6 credit hours in a semester. Federal student loans can also be applied to many online programs as long as the school is accredited and able to accept federal funds for tuition. Federal loans for students with no income include Direct Subsidized Loans, Direct Unsubsidized Loans, or even Federal Pell Grants. Direct Subsidized Loans are helpful if you have financial need because the government pays the interest while you’re in school. Private Student Loans and Income Requirements Private lenders usually want to see proof of income before they approve your loan, but you can still get private loans for students with no income if you have a cosigner. A cosigner is someone who agrees to take on the loan with you, like a parent, a grandparent, or a trusted adult. For students who are unemployed, have poor credit, or have little to no credit history, applying with a cosigner can improve the likelihood of qualifying for a loan. In some cases, applying with a cosigner can even result in a lower rate or more favorable loan terms. Some private loan options may consider a student’s earning potential based on their field of study and expected future income. For example, Ascent offers outcomes-based student loans for juniors and seniors applying without a cosigner who would not otherwise qualify based on income requirements. Eligibility for this loan type is based on several factors including your major, GPA, cost of attendance, and graduation date. Besides income requirements, some private lenders might require full-time enrollment, while others may accept part-time students. Some may also require your school to be accredited. Take Advantage of Free Funding First There’s no shortage of loan options to help you pay for school if you’re unemployed or working with a limited income. Remember to start with the types of financial aid that you don’t have to pay back to minimize your out-of-pocket expenses: Grants are free money from the government, and eligibility for federal grants is determined by the same FAFSA application that determines federal student loan eligibility. Work-Study is a federal program that allows students to work part-time to help pay for tuition. Eligibility is determined by the FAFSA, and students who submit the FAFSA early have a higher chance of being awarded Federal Work-Study funds, since funding and job placements are limited. Scholarships are free money based on things like academic achievements, extracurricular activities, or additional criteria like community involvement and interests. Scholarships can be awarded by private organizations like schools and nonprofits, and each scholarship will have its own unique award criteria. Ascent Is Here to Help Pursuing a college degree is an exciting endeavor, but figuring out the best way to pay for school can be confusing for all types of students. Start by completing the FAFSA each year and take advantage of financial aid that you don't need to pay back like grants and scholarships. If you’re still short of funds and concerned about meeting student loan eligibility requirements, don’t worry. Federal loans are available for students with no income, and Ascent offers both cosigned student loans and non-cosigned loans for unemployed students. Win a no-essay scholarship giveaway and check out our student loan tips and resources for more information on paying for school. FAQs Can I get student loans with no income? Yes, you can still get student loans even if you don’t have any income. Federal student loans do not require a job, credit score, or income to qualify. You may need a cosigner with income to apply for private loans. Ascent offers outcomes-based loans that don’t require a cosigner to eligible students. What counts as income for student loan applications? For federal loans, your income can include your parents’ or legal guardians’ income if you’re considered a dependent. If you're independent, only your income and assets are reported. Private lenders may look at wages from a job, freelance work, or other steady income. If you have a cosigner, the lender will count their income instead of yours. How does income verification work for student loans and financial aid? For federal student loans, income is verified through your FAFSA using tax returns from previous years. If you or your parents didn’t file taxes, there are other ways to report your income. Private lenders usually ask for recent pay stubs, tax documents, or bank statements to confirm how much money you or your cosigner earn. Will lenders consider my future income potential when evaluating my application? Some private student loan lenders will look at your future earning potential when deciding if you qualify. They might consider your major, school, GPA, or projected salary after graduation. While this isn’t a guarantee, it may help you qualify even if you don’t have income now. Would working part-time help improve my student loan eligibility? For federal loans, working part-time won’t affect your eligibility much. For private loans, having income increases your chances of getting approved without a cosigner. Even a small, steady income can make a difference in your application.

May 28, 2025 | By: Ascent
Does FAFSA Cover Part-Time Students?
If you’re a part-time student, you might be balancing work, family, or other responsibilities while completing your degree, making financial aid especially important to you. You may be wondering if you qualify for financial aid or if it’s even worth it to fill out the Free Application for Federal Student Aid (FAFSA) if you’re only in school part time. The good news is yes—part-time students can often get financial aid. Even if you’re only taking a few classes, you should complete the FAFSA to see what you’re eligible for. While the amount of aid may be smaller than what full-time students get, every little bit helps. We’ll walk through part-time student financial aid options and requirements so you can make the most of what’s available. Key Takeaways Part-time students can qualify for financial aid such as grants, scholarships, federal loans, and work-study programs as a part-time student. You’ll need to be enrolled in at least 6 credit hours per semester to be eligible for federal financial aid and many private options. Part-time students may receive less aid than full-time students, but support is still available. Private student loans can help fill any funding gaps after you've used all available federal student aid. Understanding Part-Time vs. Full-Time Enrollment When it comes to qualifying for certain types of financial aid, your enrollment status matters: Colleges consider you a part-time student if you take between 6 and 11 credit hours in a semester. Full-time students must be enrolled in 12 or more credit hours per semester. It's important to enroll in 6 or more credit hours per semester if you want to qualify for federal grants and loans. For scholarships and private loans, the number of credit hours required can vary, but many follow the same rules as federal financial aid. Can Part-Time Students Get Financial Aid? Yes, you can get financial aid as a part-time student. Most federal and state financial aid programs start at 6 credit hours per semester. That typically means if you're taking at least two classes, you can qualify. Part-time students can also get scholarships and private loans. To determine how much financial aid you can get, you’ll need to complete the FAFSA. This is a government form you’ll fill out to determine your financial need. As long as you’re taking at least 6 credit hours in the semester, you’re eligible for FAFSA. The total amount of aid you receive will depend on your financial situation and the number of credit hours you’re taking. How FAFSA Works for Part-Time Students Even if you’re only a part-time student, FAFSA is still the best place to start figuring out how to pay for college. FAFSA connects you to federal grants, loans, and federal work-study programs. It also helps your school understand if you qualify for state or school-based aid, and how much. FAFSA covers part-time students and full-time students in the same way. You’ll answer questions about your income, family size, and what schools you’re applying to. The government uses that info to calculate your Student Aid Index (SAI), which helps decide how much aid you’ll get. Once your school receives your FAFSA information, they’ll send you a financial aid award letter outlining the types and amount of aid you qualify for. Financial Aid Types Available to Part-Time Students There are several types of financial aid that part-time students can use. Some options come from the federal government, while others can come from your state, school, or private organizations. Federal Pell Grants, federal student loans, and work-study programs are all available to part-time students. Scholarships and private student loans can also be applied to college tuition. Let’s take a closer look at where part-time students can get financial aid. Grants Federal grants are a type of financial aid that don’t have to be paid back. As a part-time student, you may still qualify for grants like the Federal Pell Grant. State grants and school-based grants might also be available, depending on where you live and go to school. Check with your school’s financial aid office to see if there are additional grant opportunities available for part-time students. Scholarships Scholarships are another great way to lower your college costs, and many scholarships don’t require you to be a full-time student. Some scholarships are based on academic merit, while others are awarded based on background, interests, or field of study. You can find scholarships through your school, local organizations, or national programs. Ask your school counselor or use online search tools like Scholarships360 to find options part-time students qualify for. Like grants, you don’t have to pay back scholarships, and since there is no cap on how many scholarships you can be awarded, applying to as many as possible can help reduce your out-of-pocket expenses. Federal Loans Federal student loans are available to many part-time students. There are two main types: subsidized and unsubsidized. Subsidized loans don’t gain interest while you’re in school at least half-time, which usually means 6 credits. Unsubsidized loans start collecting interest right away, but they are available for students whose income is too high to qualify for subsidized loans. Federal loans can help you cover costs that grants and scholarships don’t. Private Student Loans to Fill in the Gaps Sometimes, federal aid isn’t enough to cover all your school costs—even if you’re only going part-time. Part-time students can get financial aid from private lenders to pay for tuition, books, fees, and other school expenses not covered by federal aid. As with federal loans, you’ll need to meet certain enrollment requirements to qualify. You’ll usually also need to meet minimum income and credit score requirements. Private loans offer benefits like a fast application process and flexible repayment options that work with non-traditional students. Ascent offers private student loans with and without a cosigner, no fees, 40 repayment options, and student-friendly benefits to help throughout your experience. Ascent’s undergraduate borrowers also get access to expert coaching and resources to support degree completion and career success. With any loan, be sure to read the terms carefully before you borrow, and don’t borrow more than you need to cover your expenses. Learn More with Ascent Going to college part-time doesn't mean you lack financial options. Many part-time students can get financial aid if they’re enrolled in at least 6 credit hours for the semester. FAFSA is a great place to start, but you may also want to explore private student loans to help cover the rest. Ascent offers flexible loan options for all types of students—but we’re also here to support your journey however we can. Check out the key takeaways from our latest FAFSA webinar to learn more about how to apply for financial aid as a part-time student. FAQs Does FAFSA provide aid for part-time college students? Yes, FAFSA provides financial aid to many part-time students. You need to take at least 6 credit hours per semester to qualify for most federal programs. The amount of aid you get will depend on your enrollment level and financial need. How many credits do I need to take to qualify for financial aid? Most financial aid programs require you to take at least 6 credits per semester, which is considered half-time or part-time enrollment. Anything less than that may limit your options or make you ineligible. How do I indicate that I'm a part-time student on my FAFSA application? You don’t need to select “part-time” on the FAFSA itself. Your school will determine your enrollment level based on your class schedule. They’ll use that to figure out how much aid you qualify for. Are there private loans designed for part-time students? Private loans can be good options for both part-time and full-time students. Compared to federal loans, private student loans for part-time students can offer more competitive rates based on credit and more flexible repayment terms. Can working adults get financial aid for part-time study? Yes, many working adults qualify for financial aid while attending school part-time. You can apply through FAFSA and look into private loans or scholarships. Being a non-traditional student won’t stop you from getting help paying for college.

May 28, 2025 | By: Ascent
Does Student Aid Cover Online College Courses?
Choosing a college isn’t just about majors and mascots. For a lot of students, the decision boils down to cost and flexibility—can you take classes around your work schedule, stay closer to home, or even log in from anywhere? Those are some of the main benefits of online programs. But if you're counting on financial aid to help pay for school, there’s a big question to answer first: Does student aid cover online college? The short answer? Often, yes–but not always. Many accredited online colleges use the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal grants and loans. However, not all online programs qualify for FAFSA, so it’s important to know what to look for before you apply. This article will cover how financial aid works for online schools, what types of aid you can apply for, and how to find online colleges that accept FAFSA. Whether you're just starting applications or are ready to make your decision, we’ll help you figure out your options and next steps. Key Takeaways Many accredited online colleges accept FAFSA, and students of accredited online colleges qualify for the same types of financial aid as on-campus students. Grants, scholarships, work-study, and federal student loans may be available to eligible online students. You must choose an accredited school and a qualifying program to use FAFSA for online education. Private student loans can help cover any remaining costs of online college when federal aid and scholarships aren't enough. Do your research and consider all the funding options available to you before you borrow student loans. Types of Financial Aid for Online Colleges Online students can qualify for grants, scholarships, and student loans, just like students on campus. Other options, like work-study, might not be available. Let's break down each type of financial aid for online students. Grants Federal grants are money that you don’t have to pay back, which makes them one of the best ways to pay for college. Most grants are based on financial need and can be applied for by filling out the FAFSA. One of the most common grants is the Federal Pell Grant, which many students use to pay for classes, books, and other school costs. If your online college is accredited and accepts federal aid, you can usually use the Federal Pell Grant there. Some states and schools also offer their own grants that you can apply toward online programs. Complete the FAFSA and check with your school’s financial aid office to see what additional grants you might qualify for to ensure you’re maximizing your free financial aid. Scholarships Scholarships are another type of free money for college, but they’re usually awarded based on academic achievements, extracurriculars, community involvement, or other criteria, instead of financial need. Scholarships don’t have to be paid back, and most do not require a FAFSA application to be eligible. Scholarships can be awarded by schools, companies, nonprofit organizations, and even private donors. Many scholarships can be applied to online programs as long as your school meets the rules for the specific award. You can search for scholarships online on websites like Scholarships360, and you can also ask your school if they offer any for online students. Just like grants, scholarships can help lower the total amount you need to borrow for school. Work-Study Work-Study is a federal program that provides part-time jobs to students with financial need to help cover school costs. Most jobs are on-site at the school, but others can be off-campus with nonprofit organizations or public agencies. Some schools even offer remote opportunities. The jobs available for work-study vary by school, so check with your school’s financial aid office to see what’s available. If you’re taking online classes through a school with a physical location, you might be able to work on campus, at an approved site nearby, or remotely. But if your school is fully online, your work-study options may be limited. Federal Student Loans Federal student loans come from the government. Like grants, the amount is based on financial need and eligibility is determined by the FAFSA. Federal student loans can be utilized for online colleges that accept FAFSA—these colleges are accredited and eligible to receive federal funds. One benefit of federal loans is that they offer flexible repayment plans and access to things like Public Service Loan Forgiveness (PSLF), student loan deferment, and forbearance if you run into financial trouble. Private Student Loans Even after seeking out free forms of aid and applying for federal student loans, many students find that their financial aid is not enough to fully cover their tuition. If you have exhausted your options for financial aid and federal loans, applying for private loans can help close the gap to pay for online college. Private student loans can be funded by banks, credit unions, or private lenders like Ascent. These loans aren’t tied to the FAFSA, and the amount you are qualified for will usually depend on your income and credit history, or the income and credit history of your cosigner. Benefits of private loans include flexible terms, quick approval, and more choices on your loan amounts. And while you may have borrowing limits based on your income and credit history, the amount you can borrow is typically higher than what you’ll get through federal loans. All lenders have different loan options and terms, so it is important to do your research and weigh all the benefits before applying. Finding Online Colleges That Accept FAFSA If you're planning to use FAFSA for online college, it is important to make sure the school and program you choose meet the right standards before enrolling. Not all online schools accept federal financial aid, and choosing the wrong one could mean missing out on critical funds to help you pay for college. Taking the time to check a few key details now can help you be sure you’ve found online colleges that accept FAFSA: Accreditation: Make sure the online school is accredited by a recognized agency. You can find a list of accredited institutions on the U.S. Department of Education’s website. Federal aid eligibility: Ask the school’s financial aid office if they accept federal student aid for your specific online program. Make sure the school has a FAFSA code so you can list it on your application. Program type: Confirm whether the degree or certificate program is fully online and if that impacts your aid options like scholarships or work-study opportunities. If you’re not sure where to start, talking to an admissions counselor, a financial aid advisor, or a career counselor can help point you in the right direction and make sure your financial aid plan lines up with your goals. Learn More with Ascent Figuring out how to pay for college online can be stressful, but it doesn’t have to be complicated. Ascent offers a variety of financial wellness resources designed to help students and their families succeed in college—and beyond. If you’re ready to explore additional avenues for financial aid, Ascent’s private student loans can help you achieve your financial goals with loan terms and repayment options that fit your budget and timeline. Explore our college loan options or check your rate today without impacting your credit score. FAQs Can I use FAFSA for online colleges? Yes, many online colleges accept FAFSA, but the school must be accredited and approved to accept federal student aid. Most schools list accreditation information on their financial aid page or you can ask their admissions office. What types of student aid can be used for online education? Most financial aid options for online schools are the same as what they would be for students on campus. If your program is fully remote, your work-study options may be more limited. Completing the FAFSA can help you determine your eligibility for grants, scholarships, work-study, or federal student loans. Do I need to specify in my FAFSA application that I'm an online student? No, the FAFSA doesn’t ask if you're taking classes online. You just list the school you're planning to attend using their FAFSA school code. The school will match your application with your program and decide what aid you can get. Will my financial aid package be smaller if I study online? Not always—your aid package depends on your financial need and your school’s cost of attendance. Some online programs cost less, which may reduce the total aid amount you receive. But you can still qualify for many of the same types of federal aid as on-campus students. Can I transfer current FAFSA coverage if I am transitioning to an online program? Yes, if your online program is eligible for federal aid, you can update your FAFSA to reflect the change. You may need to add the new school’s FAFSA code and check for any additional steps. It’s a good idea to contact the new school’s financial aid office to help you through the transition.

May 28, 2025 | By: Ascent
Navigating Education Evolution: An Ask Me Anything session with Ascent’s CEO Ken Ruggiero
Education is always evolving, and keeping track of the changes can be overwhelming. From critical FAFSA updates to new Department of Education regulations, staying informed has become increasingly complex. Recognizing these challenges, we're taking a proactive approach to support you. On April 10th, we hosted an exclusive Ask Me Anything (AMA) session with our CEO, Ken Ruggiero, creating a direct line of communication between you and our leadership. The session revealed widespread uncertainty about the impact of recent changes on financial aid processes and next steps. Your concerns are our priority, which is why this AMA was designed to provide clear, authoritative answers to your most pressing questions. Couldn't make it to the live session? We've got you covered. We've carefully compiled the most significant questions and comprehensive answers in this detailed recap. Our goal is to transform uncertainty into understanding, empowering you to navigate these changes with confidence. When you say, "dismantle the U.S. Department of Education," what do you mean? There's been growing discussion about potential changes to the U.S. Department of Education, including the possible transfer of federal student loans to the Small Business Administration (SBA). While nothing has officially changed yet, President Trump issued an executive order on March 20, 2025, to begin dismantling the Department of Education. Following this, he announced that the SBA will take over the administration of the student loan portfolio. That said, there may be some challenges to making these changes a reality. Since much of the federal student loan system is governed by law, it’s not clear how these would be implemented without approval from Congress. We know this news can be confusing and stressful, especially if you’re relying on federal aid right now. But rest assured, your current loans and aid are unaffected for the time being. While these changes may impact future borrowers, we’ll be here to keep you updated and support you through any changes that come your way. Will my payments still be deferred until I finish school? If you chose in-school deferment when you took out your loan from Ascent, your payments will remain deferred as long as you’re enrolled at least half-time. This means you won’t need to make monthly payments until after you graduate or drop below half-time status, depending on your loan terms. It's also important to note that a change in the administrator of the federal student loan program should not affect your eligibility to defer payments while you're in school. However, making early payments during deferment can still reduce your total loan cost and help you get ahead with repayment. I want to know if there will still be funding for students that are going to school outside of private lenders? I thought FAFSA helps us avoid interest on loans. Great question! You’re not alone in wondering this. Yes, federal student aid through FAFSA is still currently available. Nothing has changed how students apply for, or receive, federal grants, work-study, or subsidized loans. While there have been recent discussions about potential shifts in how federal education is managed, no changes to FAFSA or federal aid have been approved at this time. If you’re planning for school, it’s still a good idea to complete your FAFSA application as soon as possible and explore all options- federal and private loans- as well as scholarships to make the best financial decision for your situation. Will FAFSA payments be altered or canceled altogether because of the DOE getting cut? As of today, we haven’t heard anything about FAFSA payments being altered or canceled due to changes with the Department of Education. While there have been some changes within the DOE, they’ve assured that essential programs like FAFSA are still up and running. You can continue applying for financial aid as usual, and we’ll keep you updated if anything changes. Why is FAFSA taking so long this year? FAFSA is taking longer this year due to a major redesign for the 2024–2025 academic year, aimed at simplifying the process. However, technical issues and reduced staffing at the Department of Education have caused delays in processing and sending information to colleges. We know it’s a stressful time, especially when you're waiting on financial details to make decisions, but these delays are part of the transition to the new system. Can I still submit my FAFSA if I haven’t yet? Yes, you can still submit your FAFSA! The federal deadline to submit the FAFSA for the 2024-2025 academic year is June 30, 2025. However, some states and schools have earlier deadlines for their own aid programs. Just keep in mind that some funding might be limited the longer you wait, so try to submit it as soon as you can to maximize your chances of getting the most aid available. How is FASFA and other forms of aid like TAP, going to be affected? And how can people go about paying for their education? We know how important financial aid is, and we want to reassure you that FAFSA and programs like TAP are still available to help you pay for school. There’s been a lot of talk about changes, but for now, nothing has affected these programs, so you can still count on them to support you. With the income-based repayment plan no longer available, how much will students expect to pay monthly in repayments and what advice can you share about how to do this with a small income? Good news – the application process for income-driven repayment (IDR) plans, including SAVE, PAYE, ICR, and IBR, is now open again after a brief pause. This means borrowers can apply for these plans and potentially reduce their monthly payments based on income, providing valuable relief if finances are tight. However, while the application process is back up and running, several provisions of these plans remain on pause. For more details, visit: https://studentaid.gov/announcements-events/idr-court-actions. If you’re working on a smaller income, we recommend looking into one of these plans. Along with that, taking a look at budgeting strategies can help you make the most out of your funds. Don’t forget to check out any forgiveness programs that might be available to you, as well. They could really make a difference in the long run. For further assistance, student borrowers should reach out to their loan servicers or visit the Federal Student Aid website for the most up-to-date guidance and resources. Can you provide general info on a Parent Plus Loan? A Parent Plus Loan is a federal loan that lets parents help cover the cost of their child’s college education. It can cover up to the full cost of attendance, minus any other aid, and has a fixed interest rate of 9.08% for the 2024-2025 school year. This process includes a simple credit check, and while payments usually start after the loan is disbursed, parents can request to defer payments while their student is in school. Thank you for this opportunity. As a prospective international student, what are my chances of getting funding, considering these new changes? Thank you. Ascent offers loans to international students with creditworthy U.S. cosigner. While recent changes to the Department of Education may impact federal loan processes, Ascent’s eligibility for international students remain simple: you’ll need a U.S. cosigner and be enrolled at least half-time. To stay informed about loan options and eligibility criteria, we welcome international students to visit our International Student Loans page. How can I reduce my payments to something actually manageable? Making your loan more manageable is all about staying proactive! You can set up automatic payments to keep things simple and avoid any late fees. If you’re able, try to pay a little extra each month – even small payments can help reduce your balance faster. And remember, the Ascent team is always here to help! To explore more options for making your loan payments more manageable, you can contact Ascent’s customer service team. How can I push for the Department of Education to stop changes?!! It’s understandable to want your voice heard, especially when it comes to something as important as education and student loans. There are lots of ways to get involved – reaching out to your reps, joining advocacy groups, or signing petitions can all help. Here are a few petitions you can sign: Link & Link Find the best way that works for you to get involved. Your voice counts! Why does Ascent care? At Ascent, we’re committed to helping students achieve their goals, and we know education is an important investment in your future. Our goal isn’t just about providing loans – it’s to empower you with clear, accessible options so you can make the best financial choices for your future. Your success means a lot to us, both while you’re in school and beyond.

April 22, 2025 | By: Jazmin Chen
The Best Tips for Transferring from a Community College to a 4-Year University
Many students dream of attending top universities like UCLA, UC Berkeley, USC, or Ivy League schools such as Columbia and Cornell, but face two major obstacles: competitive admissions and high tuition costs. A common misconception is that if you don’t get into your dream school straight out of high school, you’re stuck with your alternative. What many people don’t realize is that transferring is a strategic move—not a backup plan. By completing general education requirements at a community college, students can cut tuition costs in half while keeping their options open for prestigious four-year universities. Why Starting at Community College Can Save You Thousands College tuition has never been higher, making cost a major factor in choosing a school. According to the Education Data Initiative, the average cost of attendance for students living on campus at a four-year university is: In-State Public University: $27,146 per year, which is $108,584 over four years Out-of-State Public University: $45,708 per year, which is $182,832 over four years Private Nonprofit University: $58,628 per year, which is $234,512 over four years These figures don’t include expenses like textbooks, food, and transportation, which add thousands more per year. In comparison, community college tuition is typically under $5,000 per year. Since your first two years are often focused on general education classes—completing them at a community college cuts overall tuition costs in half while still earning the same degree once you transfer. Some states even offer tuition-free community college programs, like the California Promise or Tennessee Promise, which help eligible students attend with little to no cost. Depending on your state and financial situation, enrollment fees may also be waived. Transfer Admission Guarantee (TAG): A Direct Path to a UC For students attending a California Community College (CCC), the UC Transfer Admission Guarantee (TAG) program offers guaranteed admission to one of these six UC campuses: UC Davis UC Irvine UC Merced UC Riverside UC Santa Barbara UC Santa Cruz While TAG does not apply to UCLA, UC Berkeley, or UC San Diego, students can still apply to those schools through the regular UC transfer process. To qualify for TAG, CCC students (including international students) must: Maintain at least a 3.4 GPA in transferable courses (some majors require higher) Complete required coursework, including IGETC (Intersegmental General Education Transfer Curriculum, California’s general ed transfer pathway) and major preparation courses Earn at least 30 transferable semester units before applying and 60 by the time of transfer TAG applications are submitted between September 1–30, a year before transfer. Students must still complete the UC application in November. UCLA Transfer Alliance Program (TAP) If you’re aiming for UCLA, the Transfer Alliance Program (TAP) provides priority admission consideration for students who complete an honors program at a participating California Community College. TAP students who aren’t accepted into their first-choice major may also be considered for an alternate major, giving them a better chance of admission in UCLA’s competitive transfer process. Other State Transfer Guarantees While TAG and TAP are specific to California, many other states offer similar programs: SUNY (New York): Transfer Guarantee to a four-year SUNY school Florida’s 2+2 Transfer Program: Guaranteed university admission after earning an AA degree University of Texas CAP: Transfer agreements with top schools like UT Austin No matter where you live, many universities have formal transfer agreements that allow students to start at a more affordable college before transitioning to a top university. How to Use Student Loans (and Private Loans) Strategically The cost of attendance for college isn’t just about tuition—it includes textbooks, supplies, food, housing, and transportation. These additional expenses can add up quickly, making financial aid and scholarships essential for many students. Filing the FAFSA (Free Application for Federal Student Aid) is the first step to determining eligibility for financial aid such as: Pell Grants (need-based, no repayment required) Federal student loans (low-interest loans with flexible repayment options) Work-study programs (part-time jobs that help students earn money while in school) If grants and federal loans don’t fully cover your expenses, private student loans can help bridge the gap. Private student loans are offered by banks, credit unions, and lenders like Ascent to cover extra costs such as tuition, housing, and other school-related expenses. Unlike some federal loans, private loans may require a credit check or cosigner but often provide competitive rates and flexible repayment options. Ascent stands out by offering both cosigned and non-cosigned student loans, giving students more flexibility when financing their education. You can check your rates in less than 3 minutes without impacting your credit score. Ascent provides free resources, tools, and scholarship opportunities to help students make informed decisions about paying for college. Scholarships for Transfer Students Many universities and private organizations offer scholarships specifically for transfer students, helping reduce tuition costs and reliance on loans. Some notable scholarships include: USC Transfer Merit Scholarship UCLA Transfer Scholarship Texas Christian University Transfer Scholarships Jack Kent Cooke Foundation Undergraduate Transfer Scholarship Phi Theta Kappa (PTK) Scholarships Coca-Cola Academic Team Scholarship In addition to these, Ascent has given away over $330,000 in scholarship giveaways to date and is always adding more scholarship opportunities—open to all students, with no essay or GPA requirement. These Ascent scholarship giveaways are a great opportunity for transfer students to earn extra money toward tuition, books, or other school expenses. Smart Borrowing Tips For students who need to take out loans, borrowing wisely is key to avoiding excessive debt. Here are a few smart borrowing tips: Borrow only what you absolutely need for essential education costs Set up autopay to qualify for interest rate discounts and avoid missed payments Consider making monthly payments while in school—even small amounts like $25/month help you pay off your loan faster If you’re exploring private loans, Ascent offers flexible private student loans designed for transfer students with both cosigned and non-cosigned options, competitive rates, and repayment plans built to fit your needs. By making informed financial decisions, students can maximize the benefits of transferring while keeping costs manageable. Bonus Resource: Ascent also offers AscentUP, which is an online platform with 50+ hours of expert content designed to help students build financial skills, stay on track academically, and prepare for their careers. It’s free for borrowers and a great way to boost your financial confidence while working toward graduation, and gain access to remote, paid internship opportunities. Final Thoughts: Transferring is a Smart Financial Strategy Starting at a community college is a clear and cost-effective path to a top university while keeping your education expenses under control. When used wisely, student loans can be an investment in a better education and future earning potential. Scholarships, transfer programs like TAG and TAP, and smart borrowing strategies can help students graduate from a prestigious university with significantly less debt. Transferring is a strategic way to earn the same degree at a fraction of the cost. With the right planning, you can position yourself for success at your dream school while keeping your financial future secure. Whether you’re just starting out at community college or preparing to transfer to your dream school, Ascent is here to help. From flexible private student loans to monthly scholarships and resources like AscentUP, we’re committed to helping students fund their education and their future responsibly. Explore your options with Ascent today! About the Author Kristina Nguyen is a community college student studying Business Administration with an emphasis in Marketing. As President of the Business Club and Transfer Club at her school, she helps students navigate the transfer process, connect with industry professionals, and access scholarship resources. After graduating from high school at 16, Kristina entered community college unsure of what to expect and unaware of the many opportunities available. Now, as she prepares for her own transfer to a four-year university, she’s passionate about helping other students feel confident in their journey and realizes there’s no shame in taking an alternative route to their goals.

June 09, 2025 | By: Kristina Nguyen
Expected Changes to Student Loans in 2025
Big shifts are already underway for student loans in 2025. President Trump is back in office, and his administration has already rolled out several new executive orders that could significantly change how student loans work—from who manages them to how you pay them back. Some of these 2025 student loan updates are already in motion, while others are still taking shape. Whether you have student loans or plan to borrow in the future, this is the time to stay informed and prepare for what might be ahead. Key Takeaways Student loan management may move from the Department of Education to the Department of the Treasury or Small Business Administration, which could change how federal loans are serviced. Federal loan repayment and forgiveness programs may change. You might see fewer options or changes to programs like Public Service Loan Forgiveness (PSLF). Certain tax breaks for student loan borrowers may end in 2025, like tax-free loan forgiveness and the student loan interest deduction. Lawmakers are considering other tax changes that could impact borrowers, like removing the nonprofit status of hospitals, which could affect PSLF eligibility for workers. Changes to the Department of Education On March 20, President Trump signed an executive order to begin phasing out the Department of Education (ED) and reassigning key programs, such as student loans and special education services, to different departments. According to the administration, the goal is to give states more control and cut back on federal involvement. This could result in some of the biggest student loan changes in 2025. These changes won’t happen overnight, of course, but some have already started. Two areas are changing the most: who manages your loans and how repayment might work. Changing Who Manages Student Loans As part of this overhaul, President Trump proposed to move student loan oversight from the Department of Education to the Small Business Administration (SBA). Transitioning oversight to the Treasury Department is another possibility. The timeline for this transition is uncertain. While President Trump stated this would happen immediately, Congress will need to act in support of the proposed changes. If you have existing federal loans, the terms and conditions won’t change, but you could see changes in customer service, repayment plan options, or paperwork if loan oversight moves to another government agency. If you have private student loans, everything will stay the same, because these changes don’t affect private lenders. Impact on Repayment and Forgiveness The administration also wants to make changes to income-driven repayment (IDR) plans, which allow you to pay back federal student loans based on your income. It all started with a court order blocking the SAVE Plan, a Biden administration program, from going into effect. The Trump administration then removed all IDR applications from the ED website. As of March 26, the applications for Income-Based Repayment, Income-Contingent Repayment, and Pay As You Earn plans are back up, and servicers are expected to begin processing them again soon. But the future of SAVE Plans remains uncertain. While eligibility requirements for student loans and IDR plans haven’t changed, your repayment and forgiveness options may have. Many borrowers on IDR plans have been placed in forbearance, with no confirmation of how long it could last—and for some, the time spent in forbearance doesn’t count toward their Public Service Loan Forgiveness (PSLF) timeline. As far as PSLF goes, the program still exists, but lawmakers may change the definition of “public service”—and therefore which jobs qualify for forgiveness. The bottom line is that there is still a lot of uncertainty regarding 2025 student loan repayment changes under IDR and PSLF. If you’re enrolled in these programs, download your Federal Student Aid (FSA) information to keep tabs on your loan details, and ensure your contact information is up-to-date with your loan servicer so you’ll receive any important communications. Changes to Taxes and Student Loans It’s not just ED programs making student loan repayment changes in 2025. While President Trump is leading the changes in the executive branch, lawmakers in Congress are considering tax reforms that could directly impact borrowers. Here’s what's being considered. Taxing Student Loan Forgiveness and Discharge Student loan forgiveness or discharge means you don’t have to pay back some or all of your federal loans. In general, forgiven or discharged debt is taxable. Under the American Rescue Plan Act of 2021, certain student loans forgiven between January 1, 2021 and December 31, 2025, are exempt. But those tax protections are set to end after 2025 unless Congress steps in. If this exemption expires, it means that loans forgiven after December 31, 2025, will be taxable. For example, if the government forgives $30,000 in loans, that amount will be added to your taxable income. Lawmakers haven’t made a final decision, but time is running out to keep the tax break in place. Student Loan Interest Tax Deductions Currently, you can deduct up to $2,500 in student loan interest each year when you file your taxes. This deduction lowers your taxable income and can help reduce your overall tax bill, and borrowers across the country rely on it. As lawmakers debate how to offset other planned tax cuts, a leaked memo from the U.S. House Budget Committee indicated the Student Loan Interest Tax Deduction may be on the chopping block. If you claim this deduction, keep an eye on what Congress decides this year. Eliminating the Nonprofit Status of Hospitals According to the same memo, lawmakers are also considering changing the tax-exempt status of nonprofit hospitals. Eliminating their nonprofit status would mean they would have to pay taxes like for-profit businesses. This may sound unrelated to student loans, but it could impact healthcare workers working toward Public Service Loan Forgiveness (PSLF). PSLF allows borrowers to qualify for federal loan forgiveness after 10 years of making payments while working at nonprofit or government jobs. If hospitals lose their nonprofit status, employees there might no longer qualify for PSLF. This suggested change is not set in stone. If it were officially proposed, it could be one of the biggest student loan changes in 2025 because of the number of nurses, doctors, and other hospital staff working toward PSLF. Taxing Scholarships and Fellowships Right now, students don’t pay taxes on scholarships and fellowships that go toward tuition and other qualified school expenses. That tax break makes it easier for graduate students and low-income students to afford higher education. Making these funds taxable income is another suggestion mentioned in the leaked House Budget Committee document. If this happens, students would need to report their scholarship or fellowship money when filing taxes. While it’s still under debate, students and schools across the country are watching this issue closely. What It All Means for You With nearly 43 million student loan borrowers in the U.S., it’s no surprise that student loan changes in 2025 are a hot topic. Some changes are already in motion, while others are still in the early stages of debate. The best thing you can do to prepare for possible changes is to stay informed about your loan details and official news. Here are a few ways to stay ready: Log into your loan servicer account regularly. Watch for updates and make sure your contact info is correct. Sign up for alerts from the FSA. They’ll communicate any changes in oversight. Follow reliable news sources. Stick to outlets that cover student loan policy clearly and factually. Keep records. Save emails, letters, or statements from your loan servicer, especially if you’re working toward forgiveness. Current students and those paying back loans are facing confusion and uncertainty in 2025. Whether you have federal or private student loans, contacting your loan servicer or a financial advisor is a good place to start if you have questions. FAQs What are the major student loan policy changes coming in 2025? First, the federal government plans to move student loan management from the Department of Education to the Small Business Administration or Treasury Department. This could affect how you apply for loans, repay them, or contact customer service. There may also be changes to federal loan repayment plans, loan forgiveness, and tax rules, although they’re not yet final. Will there be any new student loan forgiveness programs in 2025? So far, no new forgiveness programs have been approved this year. Lawmakers are still debating whether to change current programs like Public Service Loan Forgiveness (PSLF) or income-driven repayment forgiveness. However, these changes are more likely to result in fewer options for students, not more. Should I refinance my student loans before the 2025 changes take effect? It depends. Most of the potential 2025 student loan changes are still uncertain. Borrowers on income-driven repayment plans or working toward Public Service Loan Forgiveness might want to wait and see how it all shakes out. However, borrowers with good credit scores might be able to get a better interest rate by refinancing to a private loan, lowering their monthly payments and paying less over the life of the loan. Refinancing to a private loan could also provide stability in a time of uncertainty, as policy changes to federal student loans would not impact your private loan terms. Will the student loan changes in 2025 impact private student loan interest rates? The 2025 policy changes apply to federal loans, not private ones. Your private loan interest rate depends on your lender and the current market, not federal rules. That said, if the overall economy shifts because of these changes, lenders could adjust their rates too—but not directly because of the student loan policies. Will closing the Department of Education make private student loans a better option? Closing the Department of Education probably won’t affect the appeal of federal loans. However, other actions might. For example, if Congress makes changes to federal student loan forgiveness or eligibility, it could make private loans more appealing. Nothing is final, and students should keep an eye on any changes.

May 28, 2025 | By: Ascent
The Impact on Student Loans If the Department of Education (ED) Shuts Down
In recent weeks, President Donald Trump has renewed his efforts to dismantle and defund the U.S. Department of Education (ED), picking up the argument against what he and his administration view as federal overreach and wasteful spending. While the legality of this push to eliminate the ED is still being considered, it’s raised questions among families, educators, and others. What happens if the Department of Education closes entirely? How does this impact federal student loans, existing repayment plans, and future aid access? Will it affect those with private student loans? Here, we’ll explore how potential disruptions to the ED could affect existing student loans and financial aid for current and prospective college students. Key Takeaways President Trump cannot completely shut down the Department of Education without congressional approval, and it’s unknown if that will occur. The Trump administration has significantly reduced ED headcount, slashed funding, and refocused department goals. Student loans will continue to exist, but oversight of them may shift to the Department of the Treasury or Small Business Administration. Students should still file the Free Application for Federal Student Aid (FAFSA) as soon as possible to help find financial aid, including Pell Grants and other funding. Private student loans are not likely to be impacted by these changes. Can the Trump Administration Shut Down the Department of Education? Technically, no. At least not without assistance from Congress. As a cabinet-level agency, only Congress can abolish the ED. But an outright shutdown of the agency differs from significant defunding and restructuring, which is what the Trump administration (through the Department of Government Efficiency (DOGE) and new education secretary Linda McMahon) is currently doing. At President Trump’s direction, about half of the ED’s staff has been fired, its education-research arm has been heavily scaled back, and the focus of its civil rights division has been substantially reduced. That’s significant disruption for an organization that oversees the performance of American students, conducts important research into educational trends, and helps administer vital financial aid programs to students, such as Pell Grants and federally subsidized loans. Eliminating (or significantly shrinking) the Department of Education has long been a policy priority for Republican lawmakers, especially during the Trump administrations. These sweeping personnel and budget cuts are among the initial steps in a contested effort. What Will Happen to Student Loans If the Department Shuts Down? According to recent reports, President Trump proclaimed that oversight and management of the federal student loan portfolio—nearly $1.7 trillion in loans for nearly 43 million borrowers—will shift from the ED office of Federal Student Aid (FSA) to the Small Business Administration (SBA). There’s also the potential that those loans may end up in the hands of the Treasury Department, although some Republicans oppose that move—or have at least expressed hesitation. What does that mean for borrowers who already have loans? Well, first: You still have loans, and they still need to be paid. But some federal loans are already in a state of limbo. Until recently, nearly 8 million federal borrowers have not been making payments because a judge has frozen their Biden-era repayment plans. Income-driven repayment (IDR) plans—which base monthly student loan payment amounts on income and family size—were also briefly paused, but as of March 26, FSA announced those applications are now open. Some income-driven plans can be as low as $0 and are usually a percentage of your discretionary income, so it’s worth staying informed about them if you find yourself having difficulties paying. In addition, there is uncertainty about the SBA’s capacity to manage these loans; the agency recently announced plans to cut its workforce by more than 40%. The timeline for this transition is also in doubt. While President Trump insisted the SBA restructure would happen immediately, the FSA’s role as loan administrator is protected by law. This means Congress must act to enact the changes, but it remains to be seen if congressional support for the sweeping reorganization is there. Would FAFSA Still Exist If the Department of Education Doesn’t? Current borrowers are not the only ones concerned about the ED’s future. Future students and their families want answers, too, especially regarding FAFSA—the application for student aid that more than 9.9 million students fill out each year. Completing the FAFSA helps identify grants and federal loan opportunities available to help meet the increasing costs of college. In the face of an ED shutdown, what would happen to it? Even if the ED is eliminated, many experts don’t think there’s an immediate risk of losing FAFSA access. The 2024-2025 FAFSA delays underscored the form's importance and led to significant problems for students and colleges. Eliminating the form would pose substantial logistical challenges and could lead to widespread issues. As it currently stands, there are no plans to end the FAFSA form completely. While that doesn’t mean there’s an immediate risk to FAFSA going away in 2025, student loan borrowers and prospective college students need to stay abreast of major changes to how the form is handled. Some experts even think that shifting FAFSA oversight from the ED to the Treasury Department might not make much difference. No matter what happens, it’s important to continue filing the FAFSA form each year. Not doing so could put you at risk of missing out on important financial aid that can make college more affordable. Would Private Student Loans Be Affected by a Department of Education Shutdown? Unlike federally backed loans, private student loans and their borrowers won’t see significant changes due to disruptions in ED operations. The ED doesn’t oversee these loans, which means your loan servicing, payment schedules, and terms won’t change. The predictability of private loan servicing compared to federal loans could be a benefit to students and families who want to avoid confusion, especially for those shopping for cosigned student loans. Cosigned loans impact the student borrower’s credit as well as that of the person who helps them secure the loan. A more predictable loan servicing agreement reduces the risk of damage to both signers’ credit scores should a payment lapse due to miscommunication or other issues. How You Can Prepare The best way to prepare for significant policy changes is to have your records in order and stay calm. Download your FSA information to track your outstanding loan balances, payment amounts, and interest rates. Verify that your loan servicer’s emails are whitelisted and that your address and contact information are correct. Remember, policy shifts take time, and you will have opportunities to prepare. No matter what happens if the Department of Education closes, keeping detailed documentation can help protect you from miscommunication or disputes. If you’re considering student loans for the first time, knowing how to navigate the financial aid system can help reduce the risk of confusion regarding your loans and college costs. Follow Ascent or check out our blog for more up-to-date developments on how the changing financial aid landscape might impact your future. FAQs Would an ED shutdown impact federal student loan rates or variable private loan rates? Yes, in theory. If ED shuts down, the federal government may hand off student loans to private lenders or other state-run systems, such as the Treasury Department or SBA. These may offer different rate provisions or income-driven repayment options. Variable private loan rates, tied to market benchmarks, might shift depending on how the lending landscape changes. Would college become more expensive if the Department of Education closed? It’s possible. College expenses are increasing regardless of what happens to the Department of Education. Still, the agency plays a key role in distributing financial aid like Pell Grants and subsidized loans. Without it, states and private institutions could set their own financial aid policies, potentially widening the affordability gap. Oversight of for-profit schools could also weaken without consumer protections, which has historically proven problematic for students. For-profit schools typically aren’t subject to the same accreditation of other universities, which can put students at financial risk as they pursue degrees that may not get them the jobs they want.

May 28, 2025 | By: Ascent
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What is a Cosigner for a Student Loan?
A cosigner is someone who takes legal responsibility for a loan in addition to the primary borrower. Learn more about student loan cosigners.

May 28, 2025 | By: Ascent