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Disappointed by your financial aid package? Sometimes students don’t get as much aid as they hoped for. Occasionally, they’re denied any aid at all. Before you give up on going to your dream school, know that the decision isn’t necessarily final.

A financial aid appeal letter allows you to plead your case and share any new information. However, it’s essential to know how to write a letter compelling enough to change minds.

Here, you’ll find proven tips for building a persuasive argument and a sample financial aid appeal letter template to get you started.

When to Write a Financial Aid Appeal Letter

At what point in time after you receive your financial aid offer should you send an appeal letter? As soon as possible. That’s because some financial aid is handed out on a first-come, first-served basis. The sooner you appeal the decision, generally, the more funds there will be to draw on.

💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

Why Write a Financial Aid Appeal Letter

There are two main reasons why students appeal their financial aid offer: not getting the amount of aid they need and getting denied outright.

The Financial Aid Offer Fell Short

A student’s financial aid offer is based in part on the school’s certified cost of attendance (COA) and the student’s Student Aid Index, or SAI (formerly called Expected Family Contribution, or EFC). The latter is calculated based on information provided in the Free Application for Federal Student Aid (FAFSA®) form.

But a lot can happen between when you file your FAFSA and when you receive your student aid offer letter. Your circumstances may have changed. Some common life changes that can affect your financial aid calculation include:

•   Parent’s job loss or switch to a lower-paying position

•   Medical emergency or other financial commitment that ate up the cash your family had set aside to help you

•   Parents’ divorce

•   New member through birth, adoption, or guardianship

•   Parent’s death

Recommended: Independent vs Dependent Student: Which One Are You?

Not Meeting Eligibility Requirements

In order to qualify for federal financial aid, students need to meet a handful of eligibility requirements. The criteria include being enrolled or accepted for enrollment in an eligible degree program and maintaining “satisfactory academic progress,” which may include maintaining a minimum grade-point average (GPA). The full list of eligibility requirements is available on the Federal Student Aid website at StudentAid.gov.

If you don’t meet one of the requirements before the financial aid office makes its decision or you lose eligibility after receiving an offer, you may not get the help you need.

Recommended: What Are the FAFSA Income Limits for Eligibility?

What to Say in a Financial Aid Appeal Letter

Before you begin writing your letter, you’ll want to verify if your school has an official appeals application or form. In addition, you can check your school’s financial aid office for details on the financial aid appeal process. Some schools offer appeal forms online or have walk-in hours to address appeal questions.

If your school doesn’t offer a form, here’s a look at some specific things you may want to include in your appeals letter.

Address a Specific Person

It’s a good idea to avoid generic greetings like “To Whom It May Concern.” Instead, you’ll want to identify a specific individual at the financial aid office. If you are unsure whom to address, reach out to the financial aid office to ask.

Highlight Examples

Your case will likely be more compelling if you can provide details about your situation and why you are unable to pay for college. Consider writing a bulleted list so you can provide straightforward facts about your family’s financial situation. A bulleted list will also make it easier to connect details with support documentation.

Provide Documentation

If you have any relevant documents that can help support your case, you will want to include them with the letter. For example, a death certificate, doctor’s note, or unemployment benefits letter can give the financial aid office the evidence that it needs.

State a Dollar Amount

If you’re asking for a specific amount, consider including a budget breakdown of how you’d spend that money, including tuition, room and board, supplies, books, and transportation costs.

Add a ‘Thank You’

You may want to end your letter by thanking the person you’re sending it to. You may also want to express your excitement about attending the school.

Sample Financial Aid Appeal Letter

Date
Person’s name (if available)
or
Financial Aid Appeal Committee
Name of school
Office of Financial Aid

Dear Person’s name,

I am writing to appeal the financial aid offer I received. My proposed package included $00,000 in scholarships and grants and $00,000 in federal student loans, for a total award of $00,000. However, the amount I will need to cover my cost of attendance and living expenses this year is $00,000. I am requesting an increase in student loans or gift aid to cover the remaining $00,000.

Since completing and submitting the FAFSA, my family has experienced a change in circumstances. My father was laid off from his job in February and is still looking for work. He provided the primary income for our household, so our family’s total income has dropped from $00,000 to $00,000 per year.

My family and I would be grateful if you would approve an increased aid amount of $00,000 to help me afford the cost of school this year. I’m thrilled to have been accepted to my school of choice and am eagerly looking forward to starting in the fall.

I appreciate your taking the time to consider my appeal. Thank you very much.

Sincerely,
Your name

3 Tips for Writing a Financial Aid Appeal Letter

A good financial aid appeal letter can potentially shift your financial aid office’s decision in your favor. Here are some things to keep in mind while you’re writing it.

1. Be Polite

Not getting the financial aid you feel you need can be a frustrating experience. When it comes time to direct your request to someone specific, look for a contact in your school’s financial aid office and address the letter to them directly. If you’ve received some aid, you could thank them for the amount and perhaps explain how much you appreciate them considering your appeal.

It can be difficult to leave emotion out of the equation, but a respectful tone can have a positive influence.

2. Keep It Concise

Be clear with your request and how much aid you need. Then give a straightforward explanation of why it’s needed. If you were denied aid for an issue with eligibility, you might want to explain the reason why it happened. For example, maybe your grades dipped because you were diagnosed with a severe illness, lost an immediate family member, or became homeless.

Try to keep your letter to one page. This is not the time for a manifesto. The financial aid office will likely be reviewing multiple letters, and brief messages can be surprisingly powerful.

3. Proofread the Letter

After writing and thoroughly proofreading the letter yourself, consider having a trusted friend or family member give the letter another read. It’s not always easy to catch errors on your own, and the easier your letter is to read, the better the impression you’ll make.

What to Do if Your Appeal Is Unsuccessful

If your appeal is denied, you may still have other options for covering college costs.

For example, you may be able to qualify for scholarships through your school or a private organization. Check your school’s website for opportunities, as well as websites such as Scholarships.com, Fastweb, and the College Board. SoFi also offers a helpful scholarship search tool.

Even if you were denied a federal Direct Subsidized Loan, you may have the option of taking out a Direct Unsubsidized Loan, which is not need-based. Or, if your parents are willing to help, they can apply for a Parent PLUS Loan through the Federal Student Aid website. These loans are also not need-based, and the maximum amount they can borrow is your school’s cost of attendance minus any financial aid you’ve already received.

Finally, you may also be able to apply for a private student loan. These loans are available through banks, credit unions, and online lenders. Loan amounts vary by lender, but you can often borrow up to the full cost of attendance. These loans require a credit check, so if you’re still relatively new to credit, you may need a parent to cosign the loan. As you consider these options, take the time to research their costs and terms to make sure you get the best deal for you. You’ll want to exhaust all federal aid options first before applying for a private student loan.

💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

The Takeaway

Writing a financial aid appeal letter can help students qualify for additional financial aid. Appealing an aid offer won’t always result in an increased award, but writing an effective letter can potentially improve a student’s chances of getting more aid. A few suggestions to strengthen your letter include being concise, providing supporting documentation, being specific in how you’ll use the funds, and keeping the letter polite in tone.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

When should you appeal a financial aid offer?

You can appeal when your aid offer doesn’t meet your financial needs or your circumstances have changed. Submit your appeal as soon as possible because some aid may be limited.

What should you include in a financial aid appeal letter?

Explain your circumstances, state how much additional aid you need, and provide supporting documentation. Keep the letter concise, specific, and respectful.

What if your financial aid appeal is denied?

You can explore other options, including scholarships, federal student loans, and private student loans. Compare the costs and terms of each option before borrowing.

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About the author

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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All student loans are not alike. In fact, shopping around for a loan is not so different from buying a car. Some lenders offer better deals than others, and it helps if you know a little something about what’s under the hood.

Read on to find out what to look for when comparing student loans, from interest rates and fees to payback terms and special protections for borrowers. Soon, you’ll be able to choose a loan with confidence that it’s the right one for you.

Understanding Private Student Loans

Private student loans can help bridge the gap when federal aid and scholarships aren’t enough to cover the full cost of college. Unlike federal loans, which are backed by the government, private student loans are offered by banks, credit unions, and online lenders, each with its own terms, interest rates, and eligibility requirements.

What Are Private Student Loans?

Private student loans are education loans provided by private lenders to help students pay for tuition, books, and living expenses. They typically require a credit check and may have fixed or variable interest rates. Unlike federal loans, private loans do not offer benefits such as income-driven repayment plans or loan forgiveness programs.

Recommended: A Complete Guide to Private Student Loans

Differences Between Private and Federal Student Loans

Private and federal student loans differ in several key ways, including eligibility requirements, interest rates, and repayment options.

Federal loans are funded by the government and typically offer fixed interest rates, income-driven repayment plans, and loan forgiveness programs, making them more flexible for borrowers. They do not require a credit check (except for PLUS loans) and often have lower interest rates.

In contrast, private student loans are provided by banks, credit unions, and online lenders, usually requiring a credit check and often a cosigner. These loans may have fixed or variable interest rates, fewer repayment options, and no federal borrower protections.

Recommended: Private vs Federal Student Loans

Undergraduate Student Loans

Undergraduate private student loans are designed for students pursuing a bachelor’s degree. These loans typically require a creditworthy cosigner since most undergraduates have limited credit history. Interest rates may be fixed or variable, and repayment options vary by lender.

Graduate Student Loans

Graduate student loans cater to students seeking advanced degrees, such as master’s, law, or medical degrees. Students can access federal loans, such as Direct Unsubsidized Loans, which typically offer fixed interest rates and flexible repayment options. Private lenders also provide graduate loans, often requiring a credit check or cosigner for approval.

Specialized Student Loans

Some private lenders offer specialized student loans for specific fields, such as medical, dental, law, or business school students. These loans may have unique benefits, such as extended grace periods, higher borrowing limits, and flexible repayment options to accommodate the rigorous demands of certain professional programs.

Recommended: What You Need to Know About Student Loans, Grants, and Scholarships

4 Key Factors to Consider When Comparing Loans

When comparing private student loans, it’s important to evaluate several key factors to ensure you choose the best option for your financial needs. Weighing the factors below will help you choose the right lender and loan for you.

1. How Much Do You Need to Borrow?

When calculating how much you’ll need to borrow the first year, answer the following questions to the best of your knowledge:

•   Will you have an off-campus job?

•   Will you receive any tuition assistance from your family?

•   How is tuition structured at your institution? At some colleges, you may pay per credit. Other colleges have flat tuition, regardless of how many credits you take.

•   Living expenses should be a part of your calculations. Are there ways to trim those costs? For example, can you live at home or with roommates? Can you rely on public transportation instead of your own car?

•   How many years will it take to complete your course of study? Does it make sense to take an accelerated program and complete coursework in fewer years? On the flip side, can you stretch out coursework to make more time for a part-time job?

•   Do you need to spend all four years at your first-choice college? Some students minimize their overall tuition bill by spending a year or two at a state or community college before transferring to a pricier dream school.

You may even want to look at how well your future income will cover your bills after graduation. Search job listings and talk to recent grads in your potential field of study to get the scoop on entry-level salaries.

All this will give you a solid understanding of how much you’ll need to borrow. The next step is to compare the loans available from a variety of lenders.

2. Do You Need a Cosigner?

Private loan terms are mostly determined by the borrower’s financial history, employment status, and credit score. The longer your history and higher your score, the better your interest rate. Since most students have a minimal credit history, they often apply for student loans with a cosigner.

A cosigner is someone who agrees to pay the loan in case the main borrower is not able to. A cosigner needs to provide financial information (such as employment status) and agree to have their credit checked. Should there be any issues with repayment on the loan, both the borrower’s and the cosigner’s credit may be affected.

3. What Are the Loan Terms?

Your loan terms will determine the overall cost of your loan and your monthly payments. These terms include the following.

Interest Rate

Your interest rate will partly determine how much money you owe over the life of the loan. Many private lenders have an online tool that allows potential borrowers to see their estimated interest rate before they apply for the loan.

Interest rates may be either fixed or variable. A fixed rate means the rate won’t change during the life of the loan. A variable rate can fluctuate over time. Variable rates may start lower than fixed rates but can go higher in the future. Sometimes, a variable rate makes sense for people who plan to pay off the loan quickly. A fixed rate is a good idea for people who want to budget the same amount per month.

Length of Loan

A shorter loan term typically has higher monthly payments but is less expensive, since interest has less time to accrue. A longer repayment period usually has lower monthly payments, but will cost you more in interest overall.

Another factor to consider is prepayment penalties. This is when a lender charges you a fee for paying off your loan before the end of the loan term. Many private lenders allow prepayment without any fees, but make sure to check with any lenders you are considering.

Repayment Options

Repayment schedules vary by lender. Some may allow borrowers who are in school to defer payment until after they graduate. Others may allow student borrowers to make interest-only payments.

Find out whether or not the lender offers flexibility in switching repayment plans during the life of the loan.

Loan Fees

Lenders make money on loans by charging borrowers interest. Some student loan lenders also charge additional fees. Student loan fees may include:

•   Origination fees charged by the lender for processing the loan

•   Late payment fees

•   Returned-check fees

•   Loan collection fees

•   Forbearance and deferment fees

Before you choose a private loan, find out what fees (if any) you may incur.

Recommended: How Do Student Loans Work?

4. How Good Is the Lender’s Customer Support?

The above three factors are what’s known as loan terms. The last factor has to do with how the lender will support you, the borrower, during the life of the loan. This includes:

Customer Service

If you have questions or concerns, how can you contact your lender? Can you call a live person, or must you deal with a chatbot?

Financial Tools

Some lenders offer financial resources and tools to their borrowers, such as webinars, articles, and calculators.

Factors Affecting Private Student Loan Rates

Private student loan interest rates are influenced by several factors, including the borrower’s creditworthiness, loan term, and whether the rate is fixed or variable. Lenders assess financial history, income, and the presence of a cosigner to determine risk. Additionally, market conditions and lender policies play a role in setting interest rates.

Credit Score

A borrower’s credit score is one of the most significant factors affecting private student loan rates. Higher credit scores typically qualify for lower interest rates, as they indicate responsible financial behavior and lower risk to lenders. Those with lower credit scores may face higher rates or require a cosigner to secure better terms.

Pros and Cons of Private Student Loans

Private student loans can be a useful option for borrowers who need additional funding beyond federal aid. While they offer flexibility and higher borrowing limits, they also come with potential downsides, such as varying interest rates and fewer borrower protections. Understanding the pros and cons can help determine if they are the right choice.

Benefits of Private Student Loans

Benefits of private student loans include:

•   Higher borrowing limits than federal loans

•   Competitive interest rates for borrowers with strong credit

•   Flexible repayment options, such as interest-only payments while in school or extended loan terms

Drawbacks of Private Student Loans

Cons of private student loans include:

•   Lack of income-driven repayment plans and loan forgiveness options

•   Higher interest rates for those with lower credit scores

•   Often require a cosigner, which can put financial responsibility on someone else if the borrower struggles with repayment

The Takeaway

If you’re new to borrowing money, as most undergrads are, you may not know what to consider when choosing a student loan. Before you shop around, determine how much you need to borrow by creating a college budget that includes tuition and fees, books and supplies, and living expenses.

When comparing loans from different lenders, you’ll want to look at the interest rate, length of the loan, any fees and penalties, and the lender’s reputation for customer service. It all comes down to saving money over the life of the loan. If you’re careful, you won’t pay more than you need to.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

What factors should you consider when comparing student loan lenders?

When comparing lenders, consider interest rates, loan terms, fees, repayment options, and customer service reputation. Evaluating these factors ensures you choose a lender that offers the best financial flexibility and minimizes long-term borrowing costs.

How do interest rates impact the cost of a student loan?

Interest rates determine how much you’ll pay over the life of the loan. Fixed rates provide stable payments, while variable rates can change over time, potentially increasing costs. Choosing a lower rate can help reduce total repayment amounts.

What are some common repayment options offered by student loan lenders?

Many lenders offer options such as deferment while in school, interest-only payments, and income-driven repayment plans. These flexible repayment options can help students manage their finances and avoid defaulting on their loans.

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Photo credit: iStock/LSOphoto

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SOISL-Q326-049

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Applying for federal aid is a step most high school students take as they transition to college life. Parents going through the college admissions process for the first time, though, may not realize that they also play a huge role in helping their children apply for grants and scholarships through the Free Application for Federal Student Aid (FAFSA®).

The 2027-2028 FAFSA form opens to students on October 1, 2026. While you technically have until June 30, 2028 to submit the form, it’s highly recommended that families complete it as soon as possible. That’s because some aid offered by colleges and states is awarded on a first-come, first-served basis.

Here, we’ve compiled some of the most important information on how you can help your child during the FAFSA process.

FAFSA Facts and Tips

Filling out the FAFSA for the first time? These facts and FAFSA tips can help you prepare for the application process and offer suggestions for getting the most aid.

1. The FAFSA Is Required to Receive Government Student Loans

For those who may be new to the financial aid process, the FAFSA is the form students fill out to apply for federal financial aid, including federal student loans. More than 17 million students fill out the FAFSA each year. Your child won’t be eligible for government-funded college aid, such as federal loans or grants, if they don’t apply.

Recommended: Step-by-Step Guide to Filling Out the New FAFSA Form

2. Your Child Could Qualify for Grants by Filling Out the FAFSA

While you can get subsidized or unsubsidized loans through FAFSA, your child may also be eligible for grants. One common federal grant is the Pell Grant, which is awarded to first-time undergraduate students who show exceptional financial need, such as coming from a low-income family.

3. It Determines Work-Study Eligibility

Federal work-study is a way for students to earn income at a part-time job while in college. These jobs can be on or off campus and vary by school, although not all schools participate in the program. You have to fill out the FAFSA to determine if you’re eligible for work-study programs.

4. Some Schools Use the FAFSA to Determine What Aid They Offer

If the schools your child applies to offer their own aid, such as need-based scholarships, they may use the FAFSA to determine eligibility. As we noted above, it’s recommended that families submit the form as soon as possible after it becomes available in October, because some school aid is awarded on a first-come, first-served basis.

You may also want to check with the schools your child is applying to and ask if they have a separate application for internal scholarships and grants.

Recommended: FAFSA Guide

5. Most Applicants Under Age 24 Are Considered Dependents

Most students under the age of 24 who are neither married nor parents themselves won’t be able to apply as an independent student. As a result, for most incoming freshmen, their parents’ income is counted in the determination of financial need.

6. Your Child Needs Your Information to Apply

If your child is filing as a dependent, then they’ll need some basic information about your finances, such as your income and paid taxes. You may also elect to apply for a Parent PLUS loan at some point, which can help cover your child’s educational expenses if they don’t receive enough in loans and grants to cover costs. Note that you may need to provide additional information to apply for a Parent PLUS loan.

7. Higher-Income Families May Want to Still Apply

If your family is middle- or upper-class, you may wonder if your child will receive any FAFSA aid. However, applying is free, and family income is just one of many factors considered during the application process. Additionally, your child’s school still may require the FAFSA to consider them for institutional aid, such as non-need-based scholarships, so it may be worth applying for even if you don’t think your child will need or receive aid.

8. Grades Don’t Affect FAFSA Eligibility

The FAFSA does not have a GPA requirement to apply. However, your child may want to keep in mind that they could lose any aid given to them through the FAFSA if they have poor grades for multiple semesters after they receive the aid.

9. Deadlines Differ by State and School

The FAFSA form doesn’t close until June 30, 2027, for the 2026-2027 academic year, and June 30, 2028, for the 2027-2028 academic year. However, FAFSA application deadlines vary by state and school. State and school deadlines may close prior to the federal deadlines. If you’re not sure what deadlines apply to your student, consider checking with the financial aid office of each school your child applies to and asking what their FAFSA deadlines are.

10. Having Multiple Kids in College No Longer Affects Financial Aid Awards

The federal aid formula no longer reduces the Student Aid Index (SAI) simply because a family has more than one child enrolled in college at the same time. Before, families with multiple children in college may have qualified to receive more aid. That’s no longer the case. However, at the same time, the Pell Grant opportunity has been expanded so that students who might not have gotten a Pell Grant before may now get one. These are two of many changes created through the FAFSA Simplification Act, which aims to simplify the FAFSA form and therefore encourage more families to fill it out.

12. The FAFSA Has Changed the Process for Children of Divorce

Before the new simplified FAFSA, in the case when a child’s parents are separated, the custodial parent’s information was included on the form. However, now the parent who provides the most financial support to the student is responsible for filling out the FAFSA.

13. Your Child Will Need Their Social Security or Alien Registration Number

As your child prepares to fill out the FAFSA, they’ll need their Social Security or Alien Registration (if they are not a U.S. citizen) number.,

14. Have Certain Nontaxable Income Information at the Ready

You may need to provide the amount of the untaxed portion of any IRAs and pensions you may have and deductions and contributions to self-employed SEP IRA, SIMPLE IRA, and qualified plans.

15. Your Child May Need to Report Grants and Scholarships

Most first-time college students won’t need to report any grants or scholarships they received. However, they may need to report the taxable portion of scholarships and grants if that amount was included as income on their federal tax return, such as:

•   National Health Service Corps Scholarship Program

•   Taxable work-studies, assistantships, or fellowships

•   Other grants or scholarships reported to the IRS

If you have any doubts about what types of grants may be taxable, consider consulting a tax professional.

16. Have Bank Statements Available

To fill out the FAFSA, you’ll need bank statements for both you and your child. This information helps determine how much aid your child will be eligible for.

17. You Don’t Have to Have a Social Security Number to Sign the Form

If you’re filing the FAFSA online and you don’t have a Social Security number, you can create a federal student aid (FSA) ID without it. Your FSA ID is your login and password. Then you can proceed with filling out your portion of the form.

18. You Don’t Need to File Taxes Before Submitting the FAFSA

If you filed for an extension for your tax return, you can use your W-2 or 1099 statements. But you will need to update the FAFSA once you file. This is because which tax bracket you’re in can impact how much aid your child is eligible for.

19. You’ll Need to Have a List of Assets Ready

The FAFSA uses parental assets to help determine aid eligibility. You’ll need to know how much in assets you have, which include (but are not limited to):

•   Money in cash, savings, and checking accounts

•   Non-retirement investments (such as stocks and mutual funds)

•   Businesses

•   Investment farms (in other words, you don’t live on and operate the farm)

•   Other investments, such as real estate and stock options

20. Some 529 Plans Are Also Considered Assets

When filling out information about assets, you’ll also need to provide the value of the 529 College Savings Plans you own. Also, if your dependent child owns a 529 plan, you will need to report it as a parental asset, not as the student’s asset. However, a 529 owned by anyone else, such as the student’s grandparents, is no longer reported as an asset on the FAFSA.

21. Your Primary Home Doesn’t Need to Be Listed as an Asset

One common FAFSA mistake is listing your primary home as an asset. However, the FAFSA does not require you to do so. In fact, listing it as an asset can decrease the amount of aid your child receives.

22. You Don’t Need Your Retirement Information

The FAFSA also doesn’t count the value of retirement accounts as assets. Again, including them can inflate the number of assets you have and therefore may decrease the amount of aid your child is offered. However, as mentioned above, you will need to report the untaxed contributions and withdrawals from these accounts on the FAFSA.

23. You’ll Need to Include Each School Your Child Is Applying To

When you and your child fill out the FAFSA, you’ll want to have a list of all the schools your child may be interested in applying to. You’ll need each school’s federal school code to add them to the list of schools you want your FAFSA information sent to, although you can also search for this information on the form itself if you can’t find it on the school’s website. It may be wise to include schools your child isn’t sure they want to apply to yet since it’s easier to simply add the school to the list now rather than having to send the school your FAFSA information later.

24. Schools, Not the Government, Will Give You Financial Aid Updates

Part of the reason you’ll need to send your FAFSA to schools your child is considering applying to is because schools, not the government, send out financial aid packages. As such, each school your child applies to may offer a different financial aid package.

25. Skipping Information Can Be Costly

Before hitting submit, you might want to double-check that every section of the FAFSA is filled out (and accurate). Skipping FAFSA sections may result in delays in your application being processed, errors that prevent you from submitting, or even a decrease in the amount of financial aid you may get.

26. Your Child Will Need to Take Student Loan Entrance and Exit Counseling

Students who receive Direct Subsidized or Unsubsidized loans or Direct PLUS loans for graduate students are required to take student loan entrance counseling. If a student is a first-time student loan borrower or a graduate student who has not previously received a Direct PLUS loan, they will need to take entrance counseling before their loans are disbursed. The counseling informs student borrowers about the terms and conditions of their loans, including interest rates, repayment options, and how to avoid default or delinquency.

Your child can take entrance counseling by logging into their account on StudentAid.gov. The course must be completed in one session. It’s important to note that some schools have different entrance counseling requirements, so check with the financial aid office to make sure nothing else is needed.

Similarly, after graduation, federal student loan borrowers need to take mandatory student loan exit counseling to help them navigate how the student loan repayment process works. A reminder will be sent to your child’s email in their last year of school about when this exit counseling is due. However, you and your child may want to consider reviewing student loan exit repayment options before the counseling is due to ensure they pick the best option based on their financial situation.

27. File Early to Get the Most Aid

While it may seem like you have a ton of time to fill out the FAFSA, it may be best to complete it sooner rather than later. Delaying can mean that financial aid for your state or school dries up before your child can even be considered for it. Additionally, knowing how much aid each school is offering your child may help them when deciding on which school to attend.

28. You Could Be Selected for FAFSA Verification

After your child receives their student aid report, they may get a message saying they were selected for verification. FAFSA verification is used by some schools to simply verify that students’ FAFSA information is accurate. Some schools randomly select people to be verified, some verify all students, and some may elect not to verify any students.

29. You Can Appeal Your Aid Package

Once your child has their financial aid packages, they may find that they were offered less than they expected or hoped for. If your child’s dream college didn’t offer enough aid (or perhaps even didn’t offer them any aid), they may be able to appeal for more financial aid. This process may be especially important if your financial situation has changed since you and your child first applied for the FAFSA. While schools may deny the request, it doesn’t cost you or your child anything but time to ask for more aid.

30. You Can List Unusual Circumstances That Affect Your Finances

Another way to try to increase your financial aid package is by listing unusual financial circumstances both on your FAFSA and in an appeal letter to schools you’re applying to. Some common unusual circumstances include (but are not limited to):

•   Having tuition expenses in elementary and/or secondary schools

•   Experiencing unusual medical or dental expenses not covered by insurance

•   Having a family member become unemployed recently

•   Experiencing changes in income and/or assets that could affect aid eligibility

31. You’ll Have to Reapply Every Year

Once you’ve filed your FAFSA, you may want to keep your login information in a safe place. You’ll need that information to file the FAFSA every year your child is in school, and losing your FSA login information may delay your ability to apply next year. You may also want to set a reminder on your phone or calendar to apply next year, although the FAFSA will send you an email reminder when next year’s FAFSA is open.

The Takeaway

Filling out and submitting the FAFSA is an important first step in helping your child pay for college. Knowing how the FAFSA works and how to optimize the amount of aid your child receives can help increase the amount of federal aid they’re offered.

However, if your child’s financial aid package isn’t enough to cover college costs, they may want to consider private student loans. It’s important to note, however, that private student loans don’t offer the same borrower protections as federal student loans. That’s why it’s wise to consider all the options to make the best choice to help pay for your child’s education.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Do I need to submit the Free Application for Federal Student Aid every year?

Yes, you must complete the Free Application for Federal Student Aid (FAFSA) each academic year to be considered for federal financial aid. Filing every year also allows colleges to determine your eligibility for grants, scholarships, work-study, and federal student loans.

What documents do I need to complete the Free Application for Federal Student Aid?

Before you begin, gather financial information for both you and your child. Depending on your circumstances, you may need tax records, bank statements, and information about certain assets to complete the application accurately.

Should I complete the Free Application for Federal Student Aid if I don’t think I’ll qualify for financial aid?

Yes, many colleges use the Free Application for Federal Student Aid (FAFSA) to award institutional scholarships and grants, even if you aren’t eligible for need-based federal aid. Since the application is free, it’s worth submitting to maximize your financial aid opportunities.

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Photo credit: iStock/wagnerokasaki

This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

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Federal student loans offer a specific selection of repayment plans that borrowers can choose from. Federal student loan borrowers may be assigned a repayment plan when they begin loan repayment, but they can change their repayment plan at any time without fees.

The One Big Beautiful Bill Act (OBBA) in 2025 changed the federal student loan repayment options. There are now differences in the plans available to new and existing borrowers that it’s important to be aware of.

Choosing the right repayment plan may feel overwhelming, but understanding the repayment plans currently available to federal student loan borrowers can help. This guide will walk you through the options.

Student Loan Repayment Options

Because of recent changes to the federal student loan program, the student loan repayment options covered in this article include options for new borrowers and existing borrowers.

Borrowers with existing student loans disbursed before July 1, 2026 have a number of repayment plans to choose from:

•   The Standard Repayment Plan has fixed payments for 10 years (10 to 30 years for those with consolidation loans). This plan typically has the highest monthly payments, but it allows borrowers to repay their loans in the shortest period of time.

•   The Extended Repayment Plan stretches out the repayment period so that borrowers put money toward student loans for up to 25 years. Payments can be fixed or they may increase gradually over time. To qualify, borrowers must have more than $30,000 in federal Direct Loans.

•   The Graduated Repayment Plan has a repayment period that is typically 10 years (10 to 30 years for those with consolidation loans). The monthly payments start out low and then increase every two years. This plan may be worth considering for borrowers who have a relatively low income now, but anticipate that their salary may increase substantially over time.

•   Income-driven repayment (IDR) plans tie a borrower’s discretionary income to their monthly payments. These options may be worth considering for borrowers who are struggling to make payments under the other payment plans or who are pursuing forgiveness, including Public Service Loan Forgiveness.

New borrowers with federal loans made on or after July 1, 2026 have these two repayment plans to choose from:

•   The Tiered Standard Plan ranges from 10 to 25 years based on the loan amount, and it has fixed payments. Generally, the more a borrower owes, the longer they will have to repay the loan.

•   The Repayment Assistance Plan has a term of up to 30 years and bases payments on a borrower’s adjusted gross income (AGI). After the term is up, any remaining balance will be forgiven.

Choosing a repayment plan is one of the basics of student loans. For help determining which plan may be a good choice for your situation, you can take this quiz. Or, you can go directly to the overviews of the different repayment plans below to get a better understanding of them.

Quiz: What Student Loan Repayment Plan is Right for You?

Student Loan Repayment Plan Options for Federal Student Loans

Here are the student loan repayment options, with details about each one, for borrowers with federal student loans — including loans issued before July 1, 2026, and those disbursed on or after that date.

Standard Repayment Plan

The Standard Repayment Plan ​is for borrowers with student loans that were disbursed before July 1, 2026. This plan extends repayment up to 10 years (10 to 30 years for those with consolidation loans) and monthly payments are set at a fixed amount.

One of the benefits of the Standard Repayment Plan is that it may save borrowers money in interest over the life of the loan because, generally, individuals on this plan will pay back their loan in the shortest amount of time compared to most of the other federal repayment plans.

However, a common challenge associated with the Standard Repayment Plan is that payments can be too high for some borrowers to manage.

Student Loans Eligible for the Standard Repayment Plan

The following federal loans disbursed before July 1, 2026 are eligible for the Standard Repayment Plan:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Direct PLUS Loans

•   Direct Consolidation Loans

•   Subsidized Federal Stafford Loans

•   Unsubsidized Federal Stafford Loans

•   FFEL PLUS Loans

•   FFEL Consolidation Loans

Tiered Standard Repayment Plan

The Tiered Standard Plan replaces the Standard Repayment Plan for those with loans issued on or after July 1, 2026. Monthly payments are fixed for the life of the loan, and repayment terms range from 10 to 25 years and are based on the total student loan balance. For those with less than $25,000 in federal Direct loans, the repayment term is 10 years; for loans from $25,000 to $49,999 the term is 15 years; for loans from $50,000 to $99,999, the term is 20 years; and for loans of $100,000 or more, the term is 25 years.

Student Loans Eligible for the Tiered Standard Repayment Plan

The following federal loans disbursed on or after July 1, 2026 are eligible for the Tiered Standard Repayment Plan:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Direct PLUS Loans

•   Direct Consolidation Loans

Extended Repayment Plan

If you have over $30,000 in Direct Loan debt with loans disbursed before July 1, 2026, and the payments are too high for you to manage on the Standard (10-year) Repayment Plan, you can choose the Extended Repayment Plan for your federal loans. Under this plan, the term is up to 25 years and payments are generally lower than with the Standard and Graduated Repayment Plans. You can also choose between fixed or graduated payments.

If you’re eligible, the Extended Repayment Plan may provide relief if you’re struggling to pay your monthly loan payments by lengthening your term and potentially lowering your monthly payments.

This can help keep you out of student loan default (which is important!). But it is critical to be aware that lengthening your loan term usually means you will be paying more interest over the life of the loan — because it will take you longer to pay off your loan — and it may not give you the lowest monthly payments, depending on your circumstances.

Student Loans Eligible for the Extended Repayment Plan

The following federal loans taken out before July 1, 2026 are eligible for the Extended Repayment Plan:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Direct PLUS Loans

•   Direct Consolidation Loans

•   Subsidized Federal Stafford Loans

•   Unsubsidized Federal Stafford Loans

•   FFEL PLUS Loans

•   FFEL Consolidation Loans

Graduated Repayment Plan

With this plan, if you have loans disbursed before July 1, 2026, you would pay your federal student loans back over a 10-year period (10 to 30 years for consolidation loans), with lower payments at the beginning of the term that gradually increase every two years.

The idea behind the Graduated Repayment Plan is that a borrower’s income will likely increase over time, but may not be much at the start of their career.

Of course, the income boost may not happen. With this plan, because interest keeps accruing on the outstanding principal balance over a longer period of time, even though you’re making payments, the longer you take to repay your loan(s), the more interest you’ll wind up paying in the end. (Remember, more payments with interest equals more interest paid total.)

Student Loans Eligible for the Graduated Repayment Plan

The following federal loans taken out before July 1, 2026 are eligible for the Graduated Repayment Plan:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Direct PLUS Loans

•   Direct Consolidation Loans

•   Subsidized Federal Stafford Loans

•   Unsubsidized Federal Stafford Loans

•   FFEL PLUS Loans

•   FFEL Consolidation Loans

Income-Driven Repayment Plans

With Income-Driven Repayment (IDR) Plans for loans disbursed before July 1, 2026, the student loan payment amount is based upon the borrower’s discretionary income and family size.

To be eligible for one of the three available income-driven repayment plans — Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) — you’ll need to go through a recertification process each year, and your monthly payment could change (increase or decrease) annually based upon your current income and family size.

Maximum payments are set at 10% or 15% of what’s considered your discretionary income (the difference between 150% of the poverty guideline and your adjusted gross income), depending on the loan and the plan.

An advantage of using income-driven repayment plans is that your payment can be adjusted to accommodate a lower income. And on the IBR plan, any remaining balance after 20 or 25 years may be forgiven if repayment has been satisfactorily made.

Note that the ICR and PAYE plans will close down completely and borrowers on these plans have the option to switch to IBR before July 1, 2028.

Repayment Assistance Plan

The new Repayment Assistance Plan (RAP) was created under the One Big Beautiful Bill Act. RAP is the only IDR plan available to student loan borrowers whose loans are issued on or after July 1, 2026. Existing borrowers (with loans issued before July 1, 2026) can choose RAP or IBR.

On RAP, your payment will be 1% to 10% of your adjusted gross income (AGI). The loan term on RAP is up to 30 years. Any remaining balance will be forgiven at the end of the loan term. If your monthly payment doesn’t cover the interest owed, the interest will be canceled. All borrowers are required to pay at least $10 per month on RAP.

Another Option to Consider: Student Loan Refinancing

Refinancing student loans with a private lender allows borrowers to replace their existing loans with a new loan from a private lender. This could help make repayment convenient because there will be just one monthly payment.

One of the other possible advantages of refinancing student loans is that borrowers who qualify for a lower interest rate may be able to reduce the amount of money they pay in interest over the life of the loan.

Borrowers typically need a certain credit score (or a cosigner) to qualify for student loan refinancing, along with other lending qualifications (like income and employment verification, among other factors).

And know this: Once federal student loans are refinanced with a private lender, they will become ineligible for federal benefits, including income-driven repayment plans, programs like Public Service Loan Forgiveness, and other borrower protections like deferment or forbearance.

Repayment Plans for Private Student Loans

The repayment plans for private student loans are set by the lender. If you have private student loans, you can review the loan terms or contact the lender directly to discuss the payment options available to you.

The Takeaway

Borrowers repaying federal student loans borrowed before July 1, 2026, have three traditional repayment plans to choose from (Standard, Extended, and Graduated) and several income-driven repayment plans. Borrowers with loans taken out on or after July 1, 2026 have just two plans — the Tiered Standard and the Repayment Assistance Plan.

When selecting a repayment plan, consider factors like your student loan debt, current income and expenses, and potential future income. For example, borrowers pursuing Public Service Loan Forgiveness will need to be in an income-driven repayment plan like the IBR or RAP plans. And borrowers who may qualify for a lower interest rate and don’t need federal benefits, may want to explore refinancing.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What student loan repayment plan is best?

There is no one “best” repayment plan — the best option for you depends on your specific financial situation and goals. Generally speaking, the 10-year Standard Repayment Plan (or the new Tiered Standard Plan, with terms ranging from 10 to 25 years, depending on the amount you borrowed), could help you spend less on interest over the life of the loan and pay off your loans faster. However, if your goal is lower monthly payments, an income-driven plan that bases payments on your income, like Income-Based Repayment plan or the Repayment Assistance Plan, may be a better option. Explore the different repayment plans to see which one is the right fit for your priorities.

What is the new Repayment Assistance Plan, and who should consider it?

On the Repayment Assistance Plan (RAP), which was introduced on July 1, 2026, payments are 1% to 10% of your adjusted gross income (AGI). The loan term on RAP is up to 30 years, and any remaining balance will be forgiven at the end of the loan term. If your monthly payment doesn’t cover the interest owed, the interest will be canceled. RAP is the only income-driven repayment plan available to student loan borrowers whose loans were issued on or after July 1, 2026. (Existing borrowers with loans issued before July 1, 2026 can choose RAP or the Income-Based Repayment Plan.) RAP is a qualifying plan for those pursuing Public Service Loan Forgiveness.

How do I pick the right repayment plan for my budget?

In general, if you can afford higher monthly payments and you want to pay off your loans faster and pay less in interest overall, the Standard Plan (or the Tiered Standard Plan for new borrowers) may be right for you. If you have a tight budget and you’re looking for smaller monthly loan payments, you can explore the income-driven repayment plan options that base payments on your income. You can use the repayment calculator at StudentAid.gov to compare the different federal student loan repayment plans and costs.

What are the repayment plan options if I have private student loans?

Private student loans don’t qualify for federal programs like income-driven repayment or Public Service Loan Forgiveness. If you’re struggling with payments on your private loans, contact your lender to explore options such as extended repayment terms or temporary payment reductions. Refinancing may also be an option if you have strong credit, but be aware that refinancing federal loans into private ones forfeits federal protections.

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SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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