Private Student Loan Advice & College Financing Resources

 U.S. News & World Report, the global authority in rankings and consumer advice, has named Ascent the winner of the Best Private Student Loans for Parents as part of the 2026 Lending Awards.  “Being recognized by U.S. News & World Report as a Best Private Student Loan for Parents award winner underscores our focus on expanding access to education and driving economic mobility for student, that ultimately supports the entire family and future generations. We remain committed to delivering transparent, flexible solutions that support students and the parents and families who invest in their success,” said Ken Ruggiero, Co-Founder and CEO of Ascent Funding.  The awarded lenders were determined using a comprehensive, data-driven methodology which assessed factors including rates and fees, affordability, eligibility requirements, and customer service for lenders. For more information, read the Lenders Awards methodology.    “The 2026 Lending Awards recognize exceptional institutions, while also providing current and prospective borrowers with informed insights on financial institutions that can best support their personal financial needs and goals,” said Greg Garrison, consumer banking analyst at U.S. News.  U.S. News publishes consumer lending advice, calculators, mortgage rate forecasts, and more to help readers make the best money-related decisions for them. Consumers can find advice about personal and student loans, and much more at Money.USNews.com.  Why Ascent Stands Out  Ascent offers a range of benefits designed to support families navigating the costs of higher education:  Cosigner release opportunities* – Many students initially apply with a cosigner, with the option to release the cosigner later. This can be a significant benefit for the cosigner and the student, helping reduce long-term financial responsibility for the parents, and help the student borrowers establish their own strong credit.  No application, origination, or disbursement fees1 – Borrowers can focus on funding their education without added costs along the way.   Flexible repayment terms that fit every student – Ascent offers multiple repayment plans with fixed and variable interest rates, giving students the freedom to choose what works for them. Undergraduate students can start payments up to 9 months after graduation, while graduate and professional students have extended grace periods tailored to their programs (up to 36 months for medical, 12 months for dental).    AscentUP and internship program2 – Wrap-around support services and career-building opportunities designed to help students succeed in school, and prepare for the workforce, including access to exclusive paid internship opportunities.  Support for multiple programs – From traditional undergraduate and graduate degrees to career and trade school programs, Ascent offers options that meet diverse educational paths.  1% cash back graduation reward* – Eligible borrowers who meet terms and conditions can earn a reward when completing their program.  DACA eligibility – Eligible DACA students may apply for an Ascent loan, expanding access for students who may have fewer private loan options.  How Winners Are Selected  U.S. News evaluates lenders through a combination of quantitative metrics and editorial review, analyzing multiple key areas:  Interest rates and fees – Lenders are assessed on cost competitiveness, including any hidden or upfront charges.  Repayment flexibility – Options that allow borrowers to adjust schedules or choose terms that fit their budget are prioritized.  Cosigner support and release policies – For parents or students with limited credit history, these options can be a deciding factor.  Hardship programs – Availability of deferment, forbearance, or other protections when financial challenges arise.  Accessibility – Including eligibility for non-U.S. citizens, borrowers with shorter credit histories, and students in nontraditional programs.  Only lenders that balance affordability, transparency, and borrower support are recognized as winners. Being named a Best Private Student Loans for Parents signals that Ascent excels in these areas, helping families make informed financial decisions.  About U.S. News & World Report  U.S. News & World Report is the global leader for journalism that empowers consumers, citizens, business leaders and policy officials to make confident decisions in all aspects of their lives and communities. A multifaceted media company, U.S. News provides unbiased rankings, independent reporting and analysis, and consumer advice to millions of people on USNews.com each month. A pillar in Washington for more than 90 years, U.S. News is the trusted home for in-depth and exclusive insights on education, health, politics, the economy, personal finance, travel, automobiles, real estate, careers and consumer products and services.  About Ascent  Ascent is a leading provider of innovative financial products and wrap-around student support services that enable more students to access education and achieve academic and economic success. Everything Ascent offers is designed by leading industry professionals and with advanced technology and innovation to increase every student’s ability to plan, pay, and succeed.   Ascent’s rare Outcomes-Based Loan provides funding to credit-invisible borrowers who generally do not benefit from traditional credit. Ascent products also include: Cosigned Loans, Solo Loans, Career Loans, Parent Loans, Graduate Loans, Access Loans, Enterprise Loans and Impact Loans.  * For more information, including eligibility requirements, terms, and conditions, please visit https://www.ascentfunding.com/ascentbenefitsterms  1Only Ascent college loans are eligible for no fees. Ascent career training loans are subject to a one-time origination fee of 5.0% of the loan amount. All Ascent loans are eligible for no application, disbursement, late, NSF or early payment fees.  2 Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.  Please note: Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval.  Please borrow responsibly by maximizing scholarships and free financial aid, comparing federal and private student loans, and choosing the loan that best fits your needs. 

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.

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.

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. 

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. 

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.

Not sure if you need a cosigner for your student loans? Learn more about the different factors you should consider to help you decide.

Wondering what to do if you can't find a cosigner to cosign your student loan? Read about five options you can explore!

Major Takeaways from Ascent & SAFE Credit Union Webinar: Paying for College 101: Navigating FAFSA®, Scholarships & Loans With tuition costs on the rise, securing financial aid is key to making higher education more affordable and reducing financial stress. Understanding your options—grants, scholarships, work-study programs, and student loans—can help you navigate the process with confidence. We partnered with SAFE Credit Union to host a webinar, “Paying for College 101: Navigating FAFSA®, Scholarships & Loans.” We gathered expert panelists from Ascent including Erin Annis, School Support Coordinator, and Kumba McGill, Relationships Manager, to speak with the Event Host, Savannah Brown, Community Development Specialist at SAFE Credit Union. The discussion focused on demystifying financial aid, offering practical tips, guiding students through the FAFSA process, and answering valuable questions. If you missed the webinar, no worries! Feel free to watch it here. Understanding your financial aid options is crucial for making informed decisions about financing your education. Our panelists thoroughly reviewed four types of financial aid: federal and state grants, scholarships, work-study programs, and student loans. FAFSA®, also known as the Free Application for Federal Student Aid, is the key to accessing federal financial aid, including grants, scholarships, work-study, and loans, with many states and colleges using it for additional aid. Submitting it early maximizes funding opportunities, making college more affordable through need-based aid and low-interest loans. Our panelists suggest that if you have these qualities, you are eligible to submit an application: Financial Needs You need money to help pay for your education High School Diploma or GED U.S. Citizen and eligible non-Citizens Enrolled or accepted in an eligible degree or certificate program To maintain your eligibility, we advise you to do the following: Maintain a +2.0 GPA Do not default on any student loans Keep your non-citizen status intact Do not get it revoked Enroll in a qualifying degree/certificate program Reach the maximum amount you can borrow from the federal government for a lifetime To get you started, our panelists guided students and parents through the process of how to complete the FAFSA application. Before beginning the process, here are some quick notes: Students should start and complete this application as soon as possible and regardless of if they think they qualify Parents will have to fill out their own sections if students are dependent Under the age of 24, not married, no children, not in the military or homeless Students and parents must use different email addresses when creating their FSA ID Pro Tip: If you're unsure about a question, use the “Hint (?)” icons for guidance on providing exactly what is needed. Next, our panelists recommend you grab a cup of coffee or tea to carry you through this hefty process: To stay prepared, you should have the following documents beside you: 2023 federal tax forms and W-2's Untaxed income Child support Verterans’ non-educated benefits Supplemented Support Income (SSI) Cash and investment balances Your top schools Up to 20 options Financial aid offers Here are the steps to completing the FAFSA application: Log into FAFSA.gov Use your FSA ID Used as your electronic signature Save this along with your password! If you submitted FAFSA last year, use same FSA ID Fill out FAFSA Sections 36 questions Enter basic demographic information Insert your college choices Choose your dependency status Questions to determine your dependency If dependent, answers all questions “No” Parents need to fill out their portion Fill out parents’ information and income IRS DRT: invite, consent, and approval are required Fill out student income IRS DRT Sign, submit, and you are all done! Included are important due dates and deadlines to consider: 2025-2026 FAFSA forms are available now! Submit them by 11:59 CT, June 30, 2025 Schools send financial aid offers estimated by mid-to-late February Look out for the following: School/ state deadlines for institution or state aid/grant School offers Institution aid First come first serve Complete the application as soon as possible! Phew! Now that we have covered the FAFSA application process, you have access to a wide range of financial aid opportunities. In addition to federal and state grants, we’ve outlined three more key sources of financial aid to help support your education: Scholarships & Grants: “Free Money,”, no payment required! Federal & State Grants Free aid based on financial needs (ex. Pell Grants, FSEOG) Scholarships Merit-based, need-based, specialized opportunities Local & national databases provide access to thousands of scholarships Private companies and organizations To date, Ascent has given away over [scholarship_awards_amount] in scholarships to students and families. Enter now for a chance to win one of our easy-to-apply, no-essay scholarships! You do not need to have an Ascent loan to enter. Here are some strategies to secure a scholarship or grant: Tailor your applications to the specific scholarship/grant Write compelling essays that draw in your readers Track deadlines – apply early! Work Study Programs: Earn While You Learn Need-Based Aid Paid towards tuition Determined by FAFSA Part-Time Employment Earn money for expenses through on-campus employment Direct Pay & Earnings Wages paid directly to students, not applied to tuition How to Apply? Job Application is required Apply for and be hired by campus departments Funding for campus jobs Departments receive funding for positions, students actively seek & secure employment to utilize the award Student Loans: Federal vs. Private Federal (FAFSA required!) Lower interest rate, flexible repayment options Subsidized loans: interest is not charged while in school Unsubsidized loans: interest is charged while in school Private Best used after exhausting all federal aid options Compare lenders: interest rates, repayment terms, benefits Paying for college may seem overwhelming, but with the right resources and knowledge, you can navigate the financial aid process with confidence. From FAFSA® and scholarships to work-study programs and student loans, there are many ways to make higher education more affordable. By applying early, exploring all funding options, and staying informed about deadlines, you can maximize your financial aid opportunities and set yourself up for success. Remember, you're not alone on this journey! Ascent and SAFE Credit Union are here to support you with valuable resources, scholarships, and guidance.

Update: On 3/20/25, President Donald Trump signed an executive order calling for the dismantling of the U.S. Department of Education (ED). He said during a White House event on 3/21/25 that student loans will be handled by the Small Business Administration. Read the latest news coverage here. What’s Happening with the Department of Education Every year, more than $120 billion in federal student aid moves through the U.S. Department of Education (ED) to help nearly 10 million students and their families pay for college. And while the system has had its share of administrative headaches in the past few years, it has built reliable pathways connecting students to grants, loans, and work-study jobs at thousands of schools across the nation. As you may have heard, the Trump administration is reportedly preparing an executive order that would attempt to downsize or potentially eliminate the ED, a department that manages roughly $1.7 trillion in federal student loans. This proposal is more than a policy adjustment—it would be a massive shift that could impact everything from how students apply for financial aid to the protections borrowers have. As of publication on March 13, 2025, the Trump administration initiated mass layoffs at the ED, reducing its workforce by nearly 50%. The headlines keep coming, and sifting through noise can be overwhelming when trying to grasp how it might impact your financial future. But, if you're one of the millions of students or borrowers counting on federal aid to fund your education, the truth is that these changes could directly affect your education plans and how you pay for your degree, so it’s important to stay informed. What This Could Mean For Your Education Funding If the Trump administration succeeds in dismantling the ED, what does this mean for you as a student or borrower? You've probably gotten used to filling out the Free Application for Federal Student Aid (FAFSA) a certain way, knowing who to call with questions, and understanding when your aid will arrive. With the proposed changes, financial aid could be moved to a different agency or even to state governments. And as we saw in 2024 following the troubled rollout of the FAFSA Simplification Act, changes to established processes can send ripples through the student loan ecosystem, delaying access to critical financial aid. Shift Toward Private Lenders One proposal getting a lot of attention would shift student lending from the federal government to private lenders, essentially privatizing the student loan market. If private lenders take a bigger role in financial aid, one result could be a surge of loan options for students and their families, including more flexibility in loan options and terms or specialized loans for certain majors. But there’s a trade-off. Private lenders typically have stricter credit requirements than federal programs, which means credit score and income could matter more. Given many undergraduates are just beginning to shape their career paths and may have little to no credit history or income, they may need to apply with a cosigner in order to qualify. Increase in Interest Rates & Variability If federal lending moves entirely to the private sector, borrowers might also be concerned that interest rates will increase and be more varied across different lenders and loan types. While federal loans offer the same fixed rate to everyone, private lenders adjust their rates based on a borrower’s credit profile. And, interest rates are already climbing across the board. In fact, 10-year Treasury yields (which influence all types of lending rates) have hit their highest point since 2007, which means even existing variable-rate private loans could get more expensive as the market shifts. Just like buying a house, timing matters, and the market is heating up. It will be more important than ever to choose the right private lender based not only on interest rates, but the terms and benefits they provide, such as automatic payment discounts, cash back at graduation, or access to skills training and career coaching (which we provide all borrowers through AscentUP). Fewer Paths to Loan Forgiveness For those of you already juggling federal loan repayment, you know the drill—just when you figure out the system, it changes again. The SAVE plan provides for lower monthly payments, faster paths to forgiveness, and protection from ballooning interest, but is temporarily unavailable and on shaky ground. All borrowers currently enrolled in the SAVE plan have been automatically placed into an interest-free forbearance and the time spent does not provide credit toward Public Service Loan Forgiveness (PSLF). If the SAVE plan is blocked permanently, then borrowers could face higher monthly payments, longer loan terms, and uncertainty about loan forgiveness. If you've been working toward Public Service Loan Forgiveness (PSLF), know that there is a possibility the PSLF program could be scaled back or eliminated. There is a chance that current borrowers could be grandfathered in—but you'll want to stay on top of announcements. While Ascent’s private education loans function independently from federal student loan programs, when major policy shifts occur, these changes can disrupt the entire infrastructure and potentially reshape some or all of the options available to students and their families. When a key player changes the rules of the game—all the players are impacted and have choices to make. What You Can Do We've all dealt with uncertainty before, and while it's never comfortable, you will get through it. Here are some steps you can take to help prepare for potential changes in policy: Get your paperwork in order: Organize your records of the federal aid you've received, such as award letters and loan statements, in one place. Know your numbers: Make sure you understand your current loan terms, interest rates, and repayment timeline. Knowing where your current loans stand will help you adapt if there is a change in policy. Understand how interest rates work: If there are major changes in the market, knowing how interest rates can impact your loan balance could become even more important. Here’s how to calculate your student loan interest: Find your daily interest rate (take your annual rate and divide by 365) Calculate daily interest accrual (multiply your loan balance by that daily rate) Figure monthly payments (multiply daily accrual by days in your billing cycle) Stay informed about policy changes: Follow trusted sources for updates and bookmark reliable financial aid websites like https://studentaid.gov/. Don't panic: Remember, most policy shifts roll out gradually. The changes we're discussing would likely phase in between now and October 2025, with full implementation expected by July 1, 2026. There is time to adapt and adjust your financial plans, if necessary. Explore your funding options: Understand the alternative funding options that might be available to you beyond federal student loans, including private student loans, grants, scholarships, and work-study programs. Ascent is Here to Help Whatever happens with the Department of Education, Ascent is committed to helping students and their families access and fund higher education responsibly. The landscape may change, but our priority—your educational and financial success—will not. We're in this together.

As a parent or guardian of a college-bound student, it’s important to ensure your child is financially prepared to cover the cost of higher education. And as Decision Day approaches, you might wonder whether your child can get a student loan on their own, or if they will need your financial support. Read on to learn if parents or guardians can apply for student loans, which student loan options are available to parents, and what to be aware of when taking out a student loan in your name. Key Takeaways Parents, guardians, or sponsors can support students by cosigning private loans or taking out loans in their name, such as federal Parent PLUS Loans.  Parent PLUS loans come with fixed interest rates, income-based repayment options, and potential loan forgiveness. Private student loans vary by lender but may offer higher loan limits, lower interest rates, and cosigner release. Parent-borrowed loans may offer better terms based on credit, but also come with full repayment responsibility. Compare interest rates, terms, and protections carefully. A financial aid advisor can help guide your decision. Can a Parent or Guardian Take Out a Student Loan for Their Child? Parents or guardians can take out a student loan for their child, which can be beneficial for several reasons. One key advantage is that you may qualify for a substantially larger loan amount than your child could on their own. Creditworthiness is generally a major factor in the loan approval process, and it is not uncommon for students to have little or no credit history. In some cases, students may be unable to qualify as solo borrowers. You may also qualify for a lower interest rate on a student loan than your child could for similar reasons. Securing a lower interest rate can save your child a considerable amount over the lifetime of the loan. Additionally, depending on your qualifications, you could receive more favorable loan terms in other ways, such as more flexible repayment options. Applying for a parent student loan or a cosigned student loan are two options parents can consider, with one major difference. With a parent student loan, you (the parent), or the grandparent, guardian, or sponsor taking out the loan is solely responsible for repayment. With a cosigned student loan, on the other hand, you are accepting shared responsibility for repaying the loan if the primary borrower cannot.  A parent student loan does not require the student to qualify, nor does the student carry any financial obligation to repay the loan. Opting for a cosigned student loan, however, can help your child build their credit history, if the loan is paid back on time. Types of Student Loans Available to Parents Two primary types of student loans are available to parents or guardians: federal parent PLUS loans and private student loans.  Federal Parent PLUS Loans Federal parent PLUS loans, also known as Direct PLUS loans, are provided by the federal government and are designed for biological or adoptive parents. Parent PLUS loans cover the difference between the amount of federal student aid a student receives and the full cost of attendance, which is also the maximum amount of a parent PLUS loan. To apply for a parent PLUS loan, your child must fill out and submit the Free Application for Federal Student Aid (FAFSA®).  Like any financial decision, taking out a parent PLUS loan should be evaluated carefully. While this loan type may provide more funding than other financial aid programs, parents should be conscious of borrowing only what they need—and can repay—to avoid long-term financial repercussions. Private Student Loans Various lenders, such as banks, credit unions, and other organizations, provide private student loans directly to parents, or as a cosigner. The application process and eligibility requirements vary by lender and loan type, as do the loan terms. Some lenders, like Ascent, also offer undergraduate student loans designed specifically for parents or guardians and cosigned student loans.  Private Student Loans for Parents vs. Parent PLUS Loans There are several key differences between private student loans and federal parent PLUS loans.  Advantages of parent PLUS loans include: Interest Rates: Whereas private loan rates will depend heavily on the market and the borrower’s qualifications, a parent PLUS loan offers a fixed interest rate set by the federal government.   Repayment Plans: Parent PLUS loans have various repayment plans, including standard, graduated, and income-contingent options. These plans provide flexibility for those looking for a plan that most closely aligns with their financial situation. Deferment and Forbearance Options: Parent PLUS loans typically have many deferment and forbearance options, which can be a lifeline should you experience economic hardship. Loan Forgiveness Programs: Parent PLUS loans may be eligible for the Public Service Loan Forgiveness (PSLF) program, which is highly advantageous for parents with qualifying public service jobs. Key features of private student loans include: Loan Terms: Private student loans offer more variety in terms of interest rates, and repayment plans, meaning that parents choose the best terms for their financial situation. Cosigner Release Options: Some private student loans offer the option of releasing the parent cosigner from loan obligations after the student meets certain loan repayment criteria. Approval Process Timeline: Private loans typically have faster application and approval processes than federal loans. Lending Limits: Private loans may allow parents to borrow significantly higher amounts, in some cases, the full cost of attendance. It’s important to note that the amount a particular parent borrower qualifies for will vary based on creditworthiness and lender. Additional benefits: Private student loan providers often offer additional benefits including cash back rewards, automatic payment discounts, or access to coaching resources like AscentUP. Pros and Cons of Taking the Loan Out in Your Name While there are many advantages to taking out a student loan for your child in your name, there are also some disadvantages. Let’s explore the pros and cons. Benefits of Parents Taking out a Student Loan Access to More Funding: Parents typically have more established credit histories than their children, so they can often qualify for higher loan amounts. Potentially Lower Interest Rates: While the federal government sets parent PLUS loans’ fixed interest rates, parents can often qualify for lower interest rates than their children on private loans. Alleviating Immediate Debt for the Student: A loan in your name removes some of the student's immediate financial burden, allowing them to focus on their studies. Things to be Mindful of When Taking out a Student Loan Responsibility Falls on You: You are ultimately responsible for repaying the loan, regardless if your student completes their program  Impact on Your Credit: Taking out a loan can impact your credit, especially if it is for a large amount. Late or missed payments can hurt your credit score, and the loan will impact your debt-to-income ratio (DTI), which can impact your ability to secure other forms of credit. Opportunity for Open Discussion around Finances  with Your Child: Mixing family and finances can be tricky, and the financial obligation of the loan should be met with openness and honesty. Open communication about expectations, repayment plans, and financial responsibilities can help prevent misunderstandings.  Overview of the Student Loan Application Process for Parents Every private student loan has a different application process, so you must contact each lender to discuss the process for their graduate or undergraduate loans. However, the application process for federal parent PLUS loans is similar. For parent PLUS loans, the steps look like this: Complete the FAFSA. This determines eligibility for most federal student aid programs. Log in to StudentAid.gov. After submitting the FAFSA, use your FSA ID to log in to the Federal Student Aid website. Select “Apply for a PLUS Loan.” Use the “Apply for Aid” tab and choose “Apply for a Parent PLUS Loan” for the relevant award year. Complete the parent PLUS loan application. Provide the required personal and financial information on the application form, such as income, employment, and contact information. You must undergo a credit check. Unlike other federal student loans, the Department of Education assesses your credit history to determine eligibility. Sign the Master Promissory Note (MPN). If approved, you must sign the Master Promissory Note on the studentaid.gov website. This legal document outlines the terms and conditions of the loan and documents your promise to repay it. Receive a loan decision. The Department of Education will notify you whether you’ve been approved for the loan, along with the loan amount and terms. Accept or decline the loan. You can accept the full loan amount, choose a lower amount based on your child’s specific needs, or decline the loan if you no longer need it or have found a better option. Tips on How to Determine Which Type of Student Loan Is Right for Parents Now that we’ve established that parents can take out student loans for their children, the next step is figuring out which loan type best suits their needs. Here are some tips for determining which loan is best for your financial future and your child’s education. Evaluate Your Financial Situation. Assess your income, savings, existing debts, and overall financial capacity to determine what loan repayments you can afford. Research Available Options. Understand federal and private options regarding interest rates, repayment plans, borrower protections, and other terms to determine which best aligns with your needs. Compare Interest Rates. Consider whether fixed or variable rates are more advantageous to you and the specific rates offered on specific loans. For example, if you value the predictability of a fixed rate with ample deferment and forbearance options, a parent PLUS loan might be your best bet. Compare Loan Limits to Need. Different loans have different limits, which may or may not meet your child’s needs. Understand Repayment Options. Different loans offer different repayment options, some of which may be more advantageous for your situation. Assess Your Creditworthiness. Evaluate your credit history and credit score to understand how they might impact your loan approval, interest rates, and available loan terms. Consider Cosigning. Evaluate whether it would be better to be a cosigner yourself or find another cosigner, especially one with a strong credit history. Review Available Borrower Protections. Consider whether deferment, forbearance, loan forgiveness programs, and cosigner releases are available. Seek Professional Advice. Financial aid advisors and student loan experts can provide personalized guidance based on your circumstances and needs. Contact our support team today!  Learn More with Ascent Ascent is committed to helping students achieve their goals in college and beyond. That's why we offer a library of financial wellness resources and a variety of loan options to meet your financial needs.  Learn more about our college loan options for parents. FAQ Do parents need to cosign student loans for their children? Parents often do not need to cosign student loans for their children if the student borrower can qualify independently. However, cosigning a loan for your child may increase the total loan amount available, reduce interest rates, and secure more favorable terms. Can my child get a student loan on their own? Whether your child can get a student loan independently depends on several factors, including their financial need, creditworthiness, credit score, and the school’s total attendance costs. The best way to determine this is to have them fill out the FAFSA, apply for federal student aid, and then apply for private student loans to address any remaining funding gaps. Application criteria will also vary by lender. How do you get private student loans for parents with bad credit? Although getting private student loans for parents with bad credit can be more difficult, there are options. Some lenders may have more flexible credit requirements or allow collateral to secure the loan. You can also investigate lenders who specialize in helping borrowers with bad credit.