Private Student Loan Advice & College Financing Resources

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. 

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.

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.

A cosigner is someone who takes legal responsibility for a loan in addition to the primary borrower. Learn more about student loan cosigners.

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.

The Credit Impact To Cosigning a Student Loan If you’re wondering how cosigning a student loan affects credit, the answer is—it depends. Cosigning a student loan could have positive impacts on your credit, negative impacts on your credit, or no impact on your credit. It depends on how the student borrower, in this case the student whose loan you are cosigning, makes payments. However, many factors can influence the impact of cosigning a student loan on your credit.   Is a Cosigner Necessary for All Student Loans? Let’s start with the basics of what is a cosigner. A cosigner is someone who agrees to accept responsibility for the repayment of a loan if the student borrower fails to fulfill their financial obligation. Ultimately, the cosigner assumes the financial risk if the student borrower defaults on their loan or fails to make timely payments.  Whether a cosigner is required will depend on the student borrower’s specific financial circumstances and requirements their lender may have. These qualifications generally include financial factors such as the student borrower's age, income, credit score, and other criteria.  Even if a student qualifies for a loan without a cosigner, opting to apply with a cosigner can have additional benefits. Depending on the lender, adding a cosigner may help the student qualify for a larger loan and more favorable rates and terms. When is a Cosigner Necessary for Student Loans?  Several factors determine whether a cosigner is necessary for college loans or graduate student loans. Some of the student’s criteria that might determine whether a cosigner is required include:  Age – Some lenders may require cosigners for student loans if the student borrower is below a certain age, usually between 18 and 22 years old (depending on the state).  Credit Score – Most lenders will require a cosigner if the student borrower has no credit history or a low credit score.   Employment History – Many lenders will require a cosigner if the student borrower lacks sufficient employment history (this is a common scenario for aspiring college students just finishing high school).  Income – Most lenders will require a cosigner if the applicant’s income does not meet the minimum requirement, which is very likely to be the case for many prospective students.  Debt-to-Income Ratio – Most lenders will require a cosigner if the applicant’s debt-to-income ratio is above a certain threshold.  Even though most private student loan lenders will require a cosigner, not all will, or at least, not in all circumstances. Ascent offers both loans with a cosigner and no-cosigner student loans, depending on your needs and eligibility.  How Your Credit Score is Impacted When Cosigning a Student Loan The impact of cosigning a student loan on your credit score is determined by the financial circumstances and planning of the student borrower when paying back the loan.   First, any potential cosigner should understand that the student loan application process often involves a hard credit check, also known as a hard inquiry. A hard inquiry is triggered when a lender reviews your credit score to help assess your creditworthiness. This activity will have little to no short-term impact on your credit score. However, too many hard inquiries over a short period can raise a flag to lenders that you are seeking to borrow beyond what you can pay back.  In the long-term, determining whether cosigning a student loan will impact your credit score depends on whether the student loan payments are made. If the loan payments are made on time, and the loan is paid back by the required date, the cosigners’ credit score may even improve. Cosigning can help the student borrower and cosigner build credit if they have little or no credit history.  On the other hand, if payments are late or the loan defaults, the student borrower and the cosigner will see this reflected on their credit report. In addition to negatively impacting your credit score, as a cosigner, you may be exposed to long-term financial and potential legal consequences should the lender or debt collectors attempt to collect the unpaid debt.   Other than the potential impact on your credit score, there are other financial implications of cosigning a student loan. It is important to note that there is no special classification for cosigned student loan debt on your credit score—the borrowed amount will show up as debt just as if you took out the loan yourself. This means that the loan amount will be factored into your debt-to-income ratio, which can affect your creditworthiness until the loan is paid down or off completely. If you are considering cosigning, consider how this debt could impact your future financial opportunities, such as your ability to take out other loan types, like an auto or home loan.  Requirements for Cosigning a Student Loan  Each student loan provider may have unique requirements regarding who is eligible to cosign a student loan, which may vary by loan type. For example, a lender may have stricter requirements for cosigners of loans above a certain amount. However, there are some common requirements that a student loan cosigner usually needs to meet.  U.S. Citizenship – Many U.S.-based lenders require cosigners to be U.S. citizens or permanent residents.  Age Requirements – Most lenders have age requirements for cosigners; usually, you must be at least 18.  Good Credit History – All lenders require that cosigners meet or exceed a minimum credit score; larger loans may require a higher credit score.  Stable Income/Employment History – Lenders often require cosigners to have a verified stable income and employment history.  Low Debt-to-Income Ratio – Most lenders will require student loan cosigners to have a debt-to-income ratio that does not exceed a maximum amount.  Responsible Financial Management – Lenders often look at the cosigner’s overall financial responsibility, such as their history of making a timely loan or credit card payment.  Meeting Requirements Over Time – Many lenders will require that the cosigner not only meet other requirements but have met them for a sustained period, for example, two years.  Relationship to Student Borrower – Although this is not a common requirement, most cosigners are family, including parents and close friends.  Benefits of Being a Student Loan Cosigner While inherent risks are associated with being a student loan cosigner, there are also potential benefits that may make this decision worthwhile. Some notable benefits of becoming a cosigner include:  Facilitating Access to Education - By cosigning a student loan, you play a crucial role in helping someone pursue their education. Access to higher education can open doors to better career opportunities and personal growth for the student borrower.  Building or Enhancing Credit History - As a cosigner, you contribute to establishing or improving the student borrower's credit history. Timely repayments can positively impact both the student borrower's and your credit scores, potentially leading to better financial opportunities in the future.  Fostering Financial Responsibility - Acting as a cosigner provides an opportunity to mentor and guide the primary borrower through financial planning. By sharing the responsibility, you can impart valuable lessons about budgeting, responsible spending, and meeting financial obligations.  Potential for Favorable Loan Terms - Your involvement as a cosigner may help secure more favorable loan terms, such as lower interest rates or more flexible repayment options. This can ease the financial burden on the student borrower and create a more manageable repayment plan.  Risks of Being a Student Loan Cosigner There are several risks involved in being a student loan cosigner. Some of the most important things you need to be aware of and look out for include:  Full Obligation to Cover the Debt – As a cosigner, you are equally responsible for repaying the full amount of the loan. If the student borrower fails to make payments or defaults, you are legally obligated to cover the debt, which can have long-term financial implications.  Negative Impact on Your Credit Score – Being a student loan cosigner can negatively impact your credit. The impact can be especially massive if the student borrower misses payments or defaults.  Difficulty in Removing Yourself from the Loan – Depending on the lender, it can be a difficult process to remove a cosigner from a student loan, even if the student borrower has established good credit.  Potential Legal Challenges – If the student borrower defaults on the loan, the lender can take legal action against the cosigner. In some cases, this could even result in wage garnishment or legal judgments.  What Is a Cosigner Release?  A cosigner release is a provision included in some student loan agreements in which the cosigner may be removed from the loan responsibility after meeting specific qualifications. These terms will vary by lender but generally include an analysis of the student borrower’s payment history and qualifications as a solo borrower. The cosigner may be released from the loan once the student borrower meets these conditions and other required terms. If the lender approves the cosigner release, the cosigner is no longer obligated to repay the debt.  Having the option of being released from the cosigner obligation reduces the long-term financial risk for the cosigner, as they will no longer be responsible for the financial consequences should the student borrower default on the loan. For example, Ascent borrowers can apply for cosigner release after making the first twelve consecutive, regularly scheduled payments and meeting other eligibility criteria.  Learn More with Ascent From applying to college and beyond, Ascent supports students and their families with financial wellness resources and college loan options to help you achieve your financial goals. Learn more about our cosigned student loan options or contact us today for more questions about cosigning a loan from Ascent Funding.   FAQ Whose credit is affected on a cosigned loan? The student borrower's and the cosigner’s credit are impacted when applying for a cosigned student loan, but they do so differently. The student borrower is primarily responsible for making timely payments and managing the loan. If the student borrower does so, their credit score will improve, as will the cosigner's. If the student borrower misses payments or defaults on the loan, their credit score will be negatively impacted, as will the cosigner's. However, the cosigner can make loan payments anytime to prevent a missed payment.  Can you remove yourself as a cosigner?  Whether or not you can remove yourself as a cosigner from a student loan depends largely on the terms of the specific loan and the lender. Removing yourself as a cosigner from a student loan may be difficult unless the lender offers a cosigner release option.   How do I protect myself as a cosigner? You can protect yourself as a student loan cosigner in many ways. Some of the most effective and important include:  Understand all terms of the loan  Communicate openly and regularly with the student borrower about the loan and their financial situation.  Review any cosigner release provision in the terms of the loan.  Regularly monitor credit reports.  Set up payment alerts.  Maintain an emergency fund to cover payments.  Know your rights and responsibilities as a cosigner.  Encourage responsible borrowing. 

Finding a cosigner for your student loan can be a difficult process. Ascent has four tips for finding a cosigner for your student loan.

Weighing the pros and cons of becoming a student loan cosigner? Learn about the benefits and potential risks of being a cosigner on a student loan from Ascent Funding.