Student Loans Archives

Jan

2026

An overhead shot of hands using a laptop next to a beverage and a phone, indicating that someone is figuring out how to pay back federal student loans.

Strategies to Pay Back Federal Student Loans

By Becca Stanek | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If you borrowed money from the government to help pay for college, the time will come when you need to pay your student loans back. That time typically arrives six months after you graduate or drop below half-time status.

While the prospect of paying student debt may seem daunting while you’re a student with little to no income, don’t stress. The U.S. Education Department offers a number of repayment options, including plans that require you to pay only a small percentage of your monthly salary. Plus, there are steps you can take to make it easier to repay your student loans and potentially save money on interest.

Read on to learn more on how to start paying back your federal student loans.

Table of Contents

Types of Federal Student Loans
When Do You Have to Pay Back Federal Student Loans?
How to Pay Federal Student Loans
The Takeaway

Key Points

• You typically begin repaying federal student loans six months after graduating or dropping below half-time enrollment, but interest may accrue during this grace period.

• There are several repayment plans for loans disbursed before July 1, 2026, including the standard 10-year fixed plan and income-driven repayment (IDR) options tied to your income.

• You can consolidate multiple federal loans into a single Direct Consolidation Loan to simplify payments, though it doesn’t lower your interest rate.

• Refinancing federal loans through a private lender might lower your monthly payments or interest rate, but you’ll give up federal protections and forgiveness benefits.

• Your repayment plan isn’t permanent — you can switch plans as your financial situation changes, and consider consolidating or refinancing later if needed.

Types of Federal Student Loans

To determine the right student loan repayment strategy, it’s important to know what type of student loans you have. Here’s a look at the main types of federal student loans.

Direct Subsidized Loans

Direct Subsidized Loans are a type of federal student loan only for undergraduates who have demonstrated financial need. With these loans, the government pays the interest on the loan while you are in school and during the grace period.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students, and eligibility is not based upon financial need. Borrowers are responsible for all interest that accrues on the loan.

Direct PLUS Loans

Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for education expenses. These loans are unsubsidized, meaning that interest accrues throughout the life of the loan, including while the student is enrolled in school.

Starting on July 1, 2026, though, Direct Grad PLUS Loans will no longer be available. Students will instead rely on Direct Unsubsidized Loans, which will have new annual and lifetime borrowing caps. Parent PLUS Loans will still be an option, but new limits will apply starting on July 1, 2026.

Direct Consolidation Loans

Direct Consolidation Loans allow borrowers to combine multiple existing federal loans into one new loan with a single monthly payment. This simplifies repayment and can extend the repayment term, potentially lowering monthly costs. However, it won’t reduce your interest rate, since the new rate is a weighted average of the original loans rounded up to the nearest eighth of a percent.

When Do You Have to Pay Back Federal Student Loans?

You need to begin paying back most federal student loans six months after you leave college or drop below half-time enrollment.

Direct PLUS Loans enter repayment once your loan is fully disbursed. However, graduate/professional students who take out PLUS loans get an automatic deferment, which means they don’t have to make payments while they are in school at least half time and for an additional six months after they graduate.

If you’re a Parent PLUS Loan borrower, though, payments are due upon disbursement. You can, however, request a deferment (it’s not automatic). This deferment means you won’t have to pay while your child is enrolled at least half time and for an additional six months after your child leaves school or drops below half-time status.

Grace Periods and Deferment Options

A grace period is the span of time after you graduate, leave school, or drop below half-time enrollment during which you are not required to make federal student loan payments. Most federal loans, including Direct Subsidized and Unsubsidized Loans, offer a six-month grace period. Grace periods give borrowers time to find work, organize finances, and prepare for repayment.

Deferment allows borrowers to temporarily pause federal student loan payments due to qualifying circumstances such as economic hardship, unemployment, military service, or returning to school. During deferment, interest does not accrue on subsidized loans, though it typically continues to accumulate on unsubsidized loans.

Note that under the 2025 federal budget bill, loans made after July 1, 2027 are no longer eligible for deferments based on unemployment or economic hardship.

How to Pay Federal Student Loans

When you leave school, you’ll be required to complete exit counseling. This is an online program offered by the government that helps you prepare to repay your federal student loans. Once you’ve completed your exit counseling, here’s what you’ll need to do to start paying back your federal student loans.

1. Find Your Student Loan Servicer

You can find your federal student loan servicer by logging into your account at StudentAid.gov, where all federal loans and their assigned servicers are listed in your dashboard. This portal provides the servicer’s name, contact information, and details about each loan.

2. Review and Select a Repayment Plan

You’ll then have the option to pick a repayment plan. If you don’t choose a specific plan, you’ll automatically be placed on the 10-year Standard Repayment Plan. However, you can change plans at any time once you’ve begun paying down your loans.

Here’s a look at your repayment plan options, plus tips on why you might choose one plan over another.

Standard Repayment Plan

The Standard Repayment Plan is the default loan repayment plan for federal student loans. Under this plan, you pay a fixed amount every month for up to 10 years (for loans disbursed before July 1, 2026). For loans disbursed after this date, the repayment term will depend on your federal student loan balance. This can be a good option for borrowers who want to pay less interest over time.

Income-Driven Repayment Plans

With income-driven repayment plans (IDRs), the amount you pay each month on your student loans is tied to the amount of money you make, so you never need to pay more than you can reasonably afford. Generally, your payment amount under an IDR plan is a percentage of your discretionary income.

Graduated Repayment Plan

The Graduated Repayment Plan starts with lower payments that increase every two years. Payments are made for up to 10 years (between 10 and 30 years for consolidation loans). If your income is low now but you expect it to increase steadily over time, this plan might be right for you. Keep in mind that this plan is only available for loans disbursed before July 1, 2026.

Extended Repayment Plan

The Extended Repayment Plan, also only available for loans disbursed before July 1, 2026, is similar to the Standard Repayment Plan, but the term of the loan is longer. Extended Repayment Plans generally have terms of up to 25 years. The longer term allows for lower monthly payments, but you may end up paying more over the life of your loan thanks to additional interest charges.

3. Make a Payment

Once you know your servicer and your repayment plan, the next step is making your actual student loan payment. Most borrowers choose the most convenient method, but your servicer typically offers several options.

Online

Most servicers allow you to make payments directly through their online portal, where you can schedule one-time or recurring payments. Paying online is usually the fastest and most reliable method, making it easy to track your balance and payment history.

By Mail

You can also make payments by mailing a check or money order to your loan servicer. Be sure to include your account number and allow enough time for the payment to arrive and be processed before your due date.

4. Set Up Autopay and Payment Alerts

You might also consider signing up for autopay through your loan servicer. Since your payments will be automatically taken from your bank account, you won’t have to worry about missing a payment or getting hit with a late fee. Plus, you’ll receive a 0.25% interest rate deduction on your loan.

5. Explore Other Repayment Options

If your current repayment plan isn’t sustainable, there are several ways to adjust your monthly payments or overall loan strategy. You could consider loan forgiveness, refinancing to a private student loan, or student loan deferment or forbearance.

Loan Forgiveness

Federal student loan forgiveness programs can reduce or eliminate your remaining balance if you meet specific criteria, such as working in public service or teaching in underserved areas. Programs like Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness reward borrowers who make consistent payments while serving their communities. These options can significantly reduce long-term loan costs for eligible borrowers.

Refinancing to Private Student Loan

When you refinance your student loans, you combine your federal and/or private loans into one private loan with a single monthly payment. This can simplify repayment and might be a smart move if your credit score and income can qualify you for lower interest rates.

With a refinance, you can also choose a shorter repayment term to pay off your loan faster. Or, you can go with a longer repayment term to lower your monthly payments (note: you may pay more interest over the life of the loan if you refinance with an extended term).

If you’re considering a refinance, keep in mind that refinancing federal loans with a private lender disqualifies you from government benefits and protections, such as IDR plans and generous forbearance and deferment programs.

Deferment or Forbearance

Deferment or forbearance can temporarily pause your student loan payments during financial hardship, unemployment, health issues, or other qualifying situations. While these options offer short-term relief, interest may continue to accrue, depending on the loan type. They should be used sparingly and strategically to avoid increasing your overall loan balance.

Again, for loans made after July 1, 2027, borrowers are no longer eligible for deferments based on unemployment or economic hardship.

Recommended: Student Loan Consolidation vs Refinance

The Takeaway

If you have federal student loans, you generally don’t need to start paying them down until six months after you graduate. At that point, you’ll have the opportunity to choose a repayment plan that fits your financial situation and goals. Whatever plan you choose, you’re never locked in. As your finances and life circumstances change, you may decide to switch to a different payment plan, consolidate, or refinance your student loans.

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

Is there a way to get rid of federal student loans?

If you repay your loans under an income-driven repayment plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years. Other ways to pursue federal student loan forgiveness are through Public Service Loan Forgiveness and Teacher Loan Forgiveness.

What is the best option for repaying student loans?

The best federal student loan repayment plan for you will depend on your goals and financial situation. If you want to pay the least possible in interest, you might want to stick with the standard repayment plan. If, on the other hand, you want lower monthly payments and student loan forgiveness, you might be better off with an income-driven repayment plan.

What happens if you don’t pay federal student loans?

Typically, If you don’t make payments on your loan for 90 days, your loan servicer will report the delinquency to the three national credit bureaus. If you don’t make a payment for 270 days (roughly nine months), the loan will go into default. A default can cause long-term damage to your credit score. You may also see your federal tax refund withheld or some of your wages garnished.

Can you refinance federal student loans into private loans?

Yes, you can refinance federal student loans into private loans, but this means losing federal benefits like income-driven repayment plans and loan forgiveness options. Private lenders offer competitive rates, but eligibility depends on credit score and financial stability. Consider the pros and cons carefully.

How does income-driven repayment affect loan forgiveness?

For loans disbursed before July 1, 2026, income-driven repayment plans can lead to loan forgiveness after 20-25 years of on-time payments, depending on the plan. Payments are based on your income, making them more manageable. However, any forgiven balance may be taxable as income, and you must maintain eligibility throughout the repayment period.

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).

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SOSLR-Q425-048

Jan

2026

Is It Possible to Pause Student Loan Payments?

By Casey Bond | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

The average student loan borrower with federal loans graduates with $39,075 in debt. If you were to pay that amount on the Standard Repayment Plan at a rate of 5.50%, you’d have to shell out $424 per month for the next 10 years.

But depending on where life takes you after graduation, you may not be able to afford it. There are plenty of circumstances that may make repayment difficult, including going back to school, going into active military duty, and losing a job.

As such, it’s important to know how to pause student loan payments when you can’t afford them. Depending on who your lender is, though, the options can vary. Keep reading for our complete guide on pausing student loan payments.

Table of Contents

Two Ways You Can Pause Student Loan Payments
Federal Student Loans
Private Student Loans
How Deferment and Forbearance Can Affect You
What If You Don’t Qualify to Pause Student Loan Payments?
Determine If Pausing Student Loan Payments Is Right for You
The Takeaway

Key Points

• Borrowers can pause student loan payments through deferment and forbearance, though eligibility and terms vary depending on federal or private loans.

• Federal loan deferment allows borrowers to stop payments for up to three years, with interest accruing on unsubsidized loans but not on subsidized loans.

• Federal loan forbearance grants temporary payment relief but requires borrowers to pay all accrued interest, though interest does not capitalize for most loan types when forbearance ends.

• Private lenders set their own deferment and forbearance policies, meaning options may be limited and approvals are not guaranteed.

• Alternative options include enrolling in an income-driven repayment plan to lower monthly payments or refinancing to secure a lower interest rate or extended loan term.

Two Ways You Can Pause Student Loan Payments

Depending on your situation, you may be able to pause student loan payments through student loan deferment or forbearance. Each of these options has different requirements and outcomes, so it’s essential to understand how they work.

1. Student Loan Deferment

Note that under the ‘Big, Beautiful Bill,’ loans made after July 1, 2027 are no longer eligible for deferments based on unemployment or economic hardship.

Student loan deferment allows you to reduce or pause your payments for a set period of time. In the meantime, however, the deferred loan will continue to accrue interest, in most cases. For example, if you have an unsubsidized loan or a PLUS loan, you should consider making interest-only payments during the deferment, otherwise the interest will capitalize (be added to the loan balance) at the end of the deferment period.

This means that you’ll have a new, higher balance that includes the principal amount at the beginning of the deferment period plus the unpaid interest that accrued during deferment.

The exception is if you have subsidized federal loans or Perkins Loans, in which case you won’t be responsible for paying accrued interest.

2. Student Loan Forbearance

Another option is putting loans in forbearance. Like deferment, forbearance allows qualified applicants to delay payments for a set period of time.

The primary difference is that you’re responsible for paying any interest that accrues during the forbearance period, regardless of which type of loan you have.

Again, it is possible to make interest-only payments during the forbearance period. With most loans, interest will not capitalize at the end of the forbearance.

Key Differences Between Deferment and Forbearance

Student loan deferment and forbearance both pause payments, but they differ in how interest is handled and the conditions under which they’re granted.

• Interest accrual: During deferment, subsidized federal loans typically do not accrue interest, while all loans accrue interest during forbearance.

• Eligibility requirements: Deferment has more specific qualifications (such as unemployment, economic hardship, or returning to school), while forbearance is generally easier to qualify for.

• Length of relief: Deferment can last longer depending on the situation, while forbearance is often granted in shorter increments.

• Impact on total cost: Because interest usually pauses on subsidized loans during deferment, it is often less expensive long-term than forbearance.

• Types available: Forbearance includes both general and mandatory options, while deferment is only granted when specific criteria are met.

Federal Student Loans

The U.S. Department of Education offers both deferment and forbearance on all of its student loans. Note that depending on when your loans were disbursed, the terms may vary. For loans disbursed on or after July 1, 2027, unemployment and economic hardship deferments will no longer be available. Forbearances for loans disbursed on or after this date will be capped at nine months in a 24-month period as opposed to 12 months for loans disbursed before July 1, 2027.

Both deferment and forbearance need to be applied for through your student loan servicer. Here’s what you need to know about both options.

Qualifying for Federal Loan Deferment

If you have federal loans, you may be able to defer your student loan payments for up to three years. Here’s how to know if you may be eligible:

• You have any federal student loan, subsidized or unsubsidized.

• You’re enrolled at least half-time at an eligible school, and you received a Direct PLUS Loan or FFEL PLUS Loan as a graduate or professional student. In this case, your loans will be deferred while you’re in school at least half-time plus six months after you leave.

• You’re a parent who took out a Direct PLUS Loan or FFEL PLUS Loan on behalf of your child student, and they’re enrolled at least half-time at an eligible school. In this case, your loans will be deferred while your child remains in school plus six months after they leave.

• You’re enrolled in an approved graduate fellowship program.

• You’re enrolled in an approved rehabilitation training program for the disabled.

• You’re unemployed and unable to find employment (for loans disbursed prior to July 1, 2027).

• You’re experiencing economic hardship (for loans disbursed prior to July 1, 2027).

• You’re serving in the Peace Corps.

• You’re on active duty military service in connection with a war, military operation, or national emergency. In this case, your loans will be deferred while you’re on active duty plus 13 months afterward.

Qualifying for Federal Loan Forbearance

The federal government has two types of forbearance: general and mandatory. Both can last for up to 12 months at a time before July 1, 2027, but if you still qualify once that period is up, you can request a renewal. (After July 1, 2027, forbearance is capped at nine months in a 24-month period.)

General forbearance is also sometimes called discretionary forbearance because your loan servicer gets to choose whether or not to approve your request.

You can request general forbearance if you’re unable to make your monthly payments due to:

• Financial difficulties

• Medical expenses

• Change in employment

• Other reasons your loan servicer will accept

Mandatory forbearance is not at the discretion of your loan servicer, and can be granted if you meet any of the following requirements:

• You’re serving in a medical or dental internship or residency program and meet specific requirements.

• The total amount you owe on all of your loans is 20% or more of your gross monthly income.

• You’re serving in an AmeriCorps position for which you’ve received a national service award.

• You’re a teacher and qualify for teacher loan forgiveness.

• You qualify for partial payments on your loans through the U.S. Department of Defense Student Loan Repayment Program.

• You’re a member of the National Guard and have been activated by a governor, but don’t qualify for the military deferment.

How Interest Accrues During Payment Pauses

During a student loan deferment, interest continues to accrue on most federal loans, including Direct Unsubsidized Loans and PLUS Loans, even though payments are temporarily paused. Only certain loans — like Direct Subsidized Loans — avoid interest buildup during deferment. If unpaid, any accumulated interest may capitalize at the end of deferment, increasing your total loan balance.

If you enter forbearance, interest will continue to accrue even though payments are paused. Once the forbearance period ends, you’ll repay that accrued interest through your regular monthly payments. For most federal loan types, this interest does not capitalize when forbearance ends.

Private Student Loans

While the options and requirements for these programs are clear on federal student loans, they can be a little trickier with private student loans. That’s because there are so many different private student lenders, and each has its own policy and criteria for determining eligibility.

How to Request Deferment or Forbearance With a Private Lender

Requesting deferment or forbearance with a private lender typically involves contacting your lender directly to explain your situation and ask about available hardship options. Unlike federal loans, private lenders do not offer standardized programs, so the process may require submitting financial documents, proof of hardship, or a formal application.

Limitations and Varying Policies by Lender

Private student loan deferment and forbearance options vary widely by lender, and not all lenders offer both. Some may grant only short-term relief, limit the number of months you can pause payments, or require continued interest payments during the pause. Interest almost always continues to accrue on private loans, which can increase your total cost over time.

Because policies differ so much, borrowers should carefully review their loan agreement, ask the lender about specific terms, and compare options before committing to any repayment pause.

How Deferment and Forbearance Can Affect You

Both deferment and forbearance can offer temporary relief when you’re struggling to make payments, but they also come with trade-offs. Understanding their potential effects on your credit and long-term repayment goals can help you decide whether they’re the right option.

Impact on Credit Score and Loan Forgiveness

Deferment and forbearance typically do not hurt your credit score as long as your loans are in good standing when you request the pause. Payment activity during these periods is usually reported as current, which helps you avoid the negative credit impact of missed or late payments.

That said, if you miss a payment while you’re waiting for your deferment or forbearance request to get approved, it may hurt your credit. At 90 days overdue, your lender can report the missed payment(s) to the credit bureaus.

These pauses can also affect your progress toward loan forgiveness. With federal programs like Public Service Loan Forgiveness (PSLF), only months in active repayment count toward the required total, meaning time spent in deferment or forbearance generally doesn’t advance you toward forgiveness. This can extend the number of years you stay in repayment.

What If You Don’t Qualify to Pause Student Loan Payments?

Depending on your lender and situation, you may not be eligible for deferment or forbearance. If this happens, there are a couple of options to consider.

Income-Driven Repayment Plans

If you have federal student loans, it may be possible to reduce your monthly payment by enrolling an income-driven repayment plan.

If you qualify, you can decrease your monthly payment to a percentage of your discretionary income. It won’t stop your loan payments altogether, but it can help make them more affordable.

Refinancing Your Student Loans

Whether you have federal or private loans, you can opt to refinance your student loans. Refinancing could help you save money by reducing your monthly payment, either by securing a lower interest rate or lengthening the repayment term. Note that you may pay more interest over the life of the loan if you refinance with an extended term.

You may also be able to switch to a different lender that offers hardship programs or other support if you’re having trouble making payments.

Keep in mind that refinancing federal loans with a private lender will cause you to lose certain benefits, including income-driven repayment options and access to federal loan forgiveness programs. Use a student loan refinancing calculator to see if a refinance could help you.

Budgeting and Financial Counseling Options

If you can’t pursue an income-driven repayment plan or student loan refinancing, take a closer look at your budget and seek financial counseling to help you stay on track. A detailed budget allows you to identify unnecessary spending, prioritize essential expenses, and free up money for loan payments.

Nonprofit credit counseling agencies can also provide personalized guidance, helping you create a manageable repayment strategy, negotiate lower interest rates on other debts, or explore hardship programs you may not know about.

Determine If Pausing Student Loan Payments Is Right for You

Before requesting a pause on your student loan payments, it’s important to evaluate whether this step supports your long-term financial goals.

• Can I afford my monthly payments without sacrificing essential expenses like housing, food, or healthcare?

• Am I facing a temporary financial hardship that will realistically improve in the near future?

• Will pausing payments cause interest to grow in a way that makes repayment more expensive later?

• Do I qualify for an income-driven repayment plan that could lower my payments without fully pausing them?

• How will postponing payments affect my progress toward loan forgiveness (if applicable)?

• Do I have other high-interest debts that should take priority right now?

• Will pausing payments help relieve financial stress, or will it delay necessary budgeting changes?

• Am I prepared for the payment amount I’ll owe when the pause ends?

Answering these questions can help you decide if pausing your student loan payments is right for you or if there’s a better alternative.

The Takeaway

Pausing student loan payments is possible through deferment and forbearance options, both for federal and private loans. While these can provide temporary relief, it’s important to understand the implications, such as the continued accrual of interest on unsubsidized federal and most private loans. As an alternative, explore income-driven repayment plans or refinancing your student loans.

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

FAQ

Can pausing student loan payments hurt your credit?

Pausing student loan payments through deferment or forbearance typically doesn’t hurt your credit if you arrange it properly with your lender. However, if you pause without authorization or miss payments, it can negatively impact your credit score and lead to other financial consequences.

Do interest rates increase during deferment or forbearance?

Interest rates do not increase during deferment or forbearance, but interest may continue to accrue, depending on the type of loan. For subsidized federal loans, interest is paid by the government during deferment. For unsubsidized loans and private loans, interest accrues and can capitalize, increasing the total debt.

How long can you pause student loan payments?

You can pause student loan payments for up to three years through deferment, and forbearance typically allows pauses of up to 12 months at a time, with a maximum of three years. However, interest may continue to accrue during these periods. Also, starting July 1, 2027, forbearance limits will change to nine months at a time per 24-month period.

What are alternatives to pausing student loan payments?

Alternatives to pausing student loan payments include income-driven repayment plans, which adjust your monthly payment based on your income, and student loan refinancing. Refinancing with a private lender could allow you to reduce payments or interest, but you will lose access to federal protections and benefits.

Can you pause private student loans like federal loans?

Private student loans can be paused, but the terms are set by the lender and may differ from federal loans. Some lenders offer deferment or forbearance options, but interest typically continues to accrue, and the duration and eligibility criteria vary. Check with your lender to inquire.

SOSLR-Q425-049

Jan

2026

A calendar on a desk, with different dates flagged on it.

How Soon Can You Refinance Student Loans?

By Sarah Brooks | Fresh Out of School, Student Loans, student_loan | No Comments

Typically, student loan borrowers cannot refinance their debt until they graduate or withdraw from school. At that point, federal student loans and the majority of private student loans have a grace period, so it can make sense to refinance right before the grace period ends.

Depending on your financial situation, the goal of refinancing may be to get a lower interest rate and/or have lower monthly payments. Doing so can alleviate some of the stress you may feel when repaying your debt. In this guide, you’ll learn how soon you can refinance student loans, and what options are available, plus the potential benefits and downsides of each.

Table of Contents

What Do Your Current Loans Look Like?
Can You Refinance Student Loans While Still in School?
Which Loans Can Be Refinanced While Enrolled?
Which Loans Can’t Be Refinanced While Enrolled?
Is It Worth Refinancing Only Some of Your Loans?

Key Points

• Most borrowers can refinance after graduation or when they leave school; some lenders allow earlier refinancing with strong financials.

• Refinancing federal loans with a private lender forfeits federal benefits like income-driven repayment and forgiveness.

• It’s possible to refinance only select loans, such as those with high rates or variable interest rates.

• You may refinance with a cosigner if you don’t meet a lender’s eligibility criteria.

• Alternatives include federal loan consolidation, income-driven repayment plans, or interest-only payments while still in school.

What Do Your Current Loans Look Like?

Before deciding whether or not to refinance your student loans, you need to know where your loans currently stand. Look at the loan servicers, loan amounts, interest rates, and terms for all loans before making a decision.

Contact Info for Most Federal Student Loans

The government assigns your federal student loans to a loan servicer after they are paid out. To find your loan servicer, visit your account dashboard on StudentAid.gov, find the “My Loan Servicers” section, and choose “View loan servicer details.” You can also call the Federal Student Aid Information Center at 800-433-3243.

Loans Not Owned by the Education Department

For federal loans that aren’t held by the Education Department, here’s how to get in touch:

• If you have Federal Family Education Loan Program loans that are not held by the government, contact your servicer for details. Look for the most recent communication from the servicer, or check your billing statements for their contact information.

• If you have a Federal Perkins Loan that is not owned by the Education Department, contact the school where you received the loan for details. Your school may be the servicer for your loan.

• If you have Health Education Assistance Loan Program loans and need to find your loan servicer, look for the most recent emails or communication about these loans, or check your billing statements.

Private Student Loans

Private student loans are not given by the government, but rather by banks, credit unions, and online lenders. You’ll need to find your specific lender or servicer in order to find out your loan information. Your lender may also be your loan servicer, but not necessarily. Check your most recent communication, including emails, from the lender for their contact information. If they are not the servicer for your loan, ask them who is.

How to Find Out Who Services Your Loan

As noted above, you can find the servicer for your federal student loans on your account at StudentAid.gov in the “My Loan Servicers” section. For loans not owned by the Education Department (except Perkins Loans), check recent billing statements or communications about the loans for your servicer’s contact information. If you have Perkins Loans, contact your school for information about your servicer.

For private student loans, contact your lender for details. They may also be the servicer of your loan, and even if they aren’t they can tell you who is.

Can You Refinance Student Loans While Still in School?

Although it’s not common, you may be able to refinance your student loans while still in school with certain lenders. However, doing so may not make the most sense for your situation.

When you refinance student loans, you exchange your current loans with a new loan from a private lender, preferably with a lower rate. This rate is based on such factors as current market rates and your credit profile.

Pros and Cons of Refinancing Before Graduation

Some of the advantages of refinancing your student loans while still in school include potentially getting more favorable loan terms, such as a lower interest rate on your loans if you qualify, which could lower your monthly payments.

Refinancing also allows you to consolidate all your loans into one loan, which can make them easier to manage.

However, there are disadvantages to refinancing while still in school. For one thing, it can be difficult to qualify for refinancing without a job and a steady income. You may need a creditworthy cosigner in order to qualify. Not only that, many lenders require borrowers to have a bachelor’s degree to be eligible for refinancing.

It’s also important to be aware that refinancing federal loans makes them ineligible for federal benefits and programs, such as income-driven payment plans and forgiveness.

In addition, once you refinance, you will need to start making loan payments, which may be challenging while you’re still in school.

Which Loans Can Be Refinanced While Enrolled?

You can refinance any type of student loan while enrolled in school, assuming that the lender allows it. If you’re still in school and want to refinance, a lender will typically want to make sure you have a job or job offer on the table, are in or near your last year of school, and have a solid credit profile. As noted above, you could also consider refinancing your student loans with a cosigner if you do not meet the lender’s requirements on your own.

A couple of important points if you are considering refinancing federal student loans with a private lender:

• Doing so means you will forfeit federal benefits and protections, such as forbearance and forgiveness, among others.

• If you refinance for an extended term, you may have a lower monthly payment but pay more interest over the life of the loan. This may or may not suit your financial needs and goals, so consider your options carefully.

Which Loans Can’t Be Refinanced While Enrolled?

If you find a lender willing to refinance your student loans while still in school, they may not exclude certain types of loan. However, it is generally best not to refinance federal student loans while enrolled. Federal Subsidized Loans, for example, do not start earning interest until after the grace period is over. Since you aren’t paying anything in interest, it doesn’t make sense to refinance and have to start paying interest on your loans immediately.

Federal Loans With Active Deferment or Forgiveness Benefits

If you’re in school at least half-time, your federal loans are automatically in deferment, meaning you don’t have to make payments on them. If you refinance your loans, you lose that benefit, and you need to start making payments on your refinanced loans.

Also, if you plan to pursue student loan forgiveness like Public Service Loan Forgiveness after you graduate, refinancing student loans isn’t the best option for you. Refinancing gives you a new private loan with a new private lender, thereby forfeiting your eligibility for forgiveness and other federal benefits and protections.

Is It Worth Refinancing Only Some of Your Loans?

It may be worth refinancing only some of your loans in certain situations. Here are some instances in which you might want to consider this option.

When Partial Refinancing Might Make Sense

The student loans it may make sense to refinance might include:

• Loans that have a variable interest rate (if you’d prefer a fixed rate)

• Loans with a relatively high interest rate, since refinancing may save you money. A student refinance calculator can come in handy when estimating what you might save over the life of the loan.

When you might want to think twice about refinancing:

• If you have federal loans and plan on using an income-driven repayment (IDR) plan, for example, it makes sense not to include those loans in the refinance (see more about IDR payment plans below).

• If you have a low, fixed interest rate currently, you should probably keep those loans as is. The main reason to refinance is to secure a lower interest rate or a lower payment.

Pros and Cons of Refinancing Student Loans

Pros	Cons
• Possibly lower your monthly payment • Possibly lower your interest rate • Shorten or lengthen the loan term • Switch from variable to fixed interest rate, or vice versa • Combine multiple loans into one	• Lose access to federal benefits and protections • Lose access to remaining grace periods • May be difficult to qualify • May end up paying more in interest if you lengthen the term

Pros

Cons

• Possibly lower your monthly payment

• Possibly lower your interest rate

• Shorten or lengthen the loan term

• Switch from variable to fixed interest rate, or vice versa

• Combine multiple loans into one

• Lose access to federal benefits and protections

• Lose access to remaining grace periods

• May be difficult to qualify

• May end up paying more in interest if you lengthen the term

Examples of Refinancing Before Earning a Degree

Some borrowers might want to refinance before earning their bachelor’s degree. Others might choose to wait until they are graduate students.

Case Studies: Undergraduate vs Graduate Borrowers

Undergraduate students may have a challenging time refinancing their student loans without a strong credit profile and a job with a steady income. They might need a cosigner in order to qualify for refinancing.

Graduate students are typically eligible to refinance their undergraduate student loans, assuming they meet the lender’s requirements or use a cosigner. Parents with Parent PLUS Loans are also typically allowed to refinance their loans prior to their child graduating.

Rules will vary by lender, so make sure to do your research and choose a lender that will work with your unique situation.

Alternatives to Refinancing

If refinancing your student loans isn’t the right option for you, there are some alternatives to refinancing you can explore.

Income-Driven Repayment Plans

Income-driven repayment plans for federal student loans base your monthly payments on your discretionary income and family size and extend your loan term to 20 or 25 years. These plans can make your monthly payments more affordable. However, you may pay more interest overall on an IDR plan.

There are currently three IDR plans — the Income-Based Repayment (IBR) Plan, the Pay As You Earn (PAYE) Plan, and the Income-Contingent Repayment (ICR) Plan. On the IBR plan, any remaining balance on your loans is forgiven when your repayment term ends.

Due to the One Big Beautiful Bill, however, changes are coming to IDR plans in July 2027, when most of the plans, except IBR, will no longer accept new enrollees.

Federal Loan Consolidation

Another alternative to refinancing is consolidating student loans. Consolidation combines your federal student loans into one loan with one monthly payment. One of the main differences between consolidation and refinancing is the interest rate on a federal loan consolidation is the weighted average of the rates of the loans you are consolidating, rounded up to the nearest one-eighth of a percentage.

You typically won’t save on interest, but you can lower your monthly payment by extending the loan term. Doing this, however, means you’ll probably pay more in interest over the life of the loan. Consolidating can make your loans easier to manage because you’ll have just one loan payment to make.

Weighing Perks and Interest Rates

Before deciding whether refinancing is right for you, it’s important to consider what you might gain and what you would give up.

Losing Federal Protections vs Lower Monthly Payments

Essentially, you need to consider the cost of losing federal benefits against the perk of potentially securing a lower interest rate through refinancing. Remember,if you refinance your federal student loans with a private lender, those loans will no longer be eligible for federal protections and programs like income-driven repayment plans, federal forbearance, and student loan forgiveness. If you think you might need those programs, refinancing likely doesn’t make sense for you.

But if you can qualify for a lower interest rate, refinancing may be a good fit. Your monthly payments would probably be lower in that case and you also might get a more favorable loan term. Just remember that shortening or elongating your loan term can affect your monthly payment and the total cost over the life of your loan.

For some borrowers, lengthening the term and lowering the monthly payment will be a valuable option, even though it can mean paying more interest over the life of the loan. Only you can decide if this kind of refinancing makes sense for your personal financial situation.

The Takeaway

It’s possible to refinance student loans as soon as you establish a financial foundation or bring a creditworthy cosigner aboard. You can even refinance your student loans while in school, although not all lenders offer this option and it may not make sense for your situation.

It’s also important to understand the implications of refinancing federal student loans with a private lender. If you don’t plan on using federal benefits and protections and you can land a lower interest rate, it might be a move worth considering.

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

FAQ

How soon after taking out a loan can you refinance?

You can refinance a student loan as soon as you meet a lender’s specific eligibility requirements. Many lenders prefer borrowers to have graduated before they refinance and to have a stable job and steady income. However, some lenders do allow students to refinance while they are still in school, though the student may need a creditworthy cosigner in order to qualify.

Can I refinance student loans before graduation?

It’s possible to refinance student loans before graduation, though it can be challenging. While many lenders don’t offer the option to refinance while you’re still in school, there are some that do. Keep in mind that you may need a creditworthy cosigner to qualify for refinancing.

What are the risks of refinancing federal student loans early?

Risks of refinancing federal student loans early include losing access to important federal benefits and programs such as income-driven repayment plans, deferment, and forgiveness. For example, while you’re in school, your federal loans are automatically in deferment, meaning you don’t have to make payments on them. If you refinance your loans, you lose that benefit and need to start making payments on your refinanced loans once they are disbursed.

Can I refinance just some of my student loans?

Yes, you can refinance just some of your student loans. With refinancing, you can pick and choose the specific loans you’d like to refinance. For instance, you could choose to refinance only your private student loans, and keep your federal loans to preserve access to federal benefits and protections. You might also choose to refinance only your student loans with high interest rates. It’s completely up to you.

Will refinancing affect my credit score?

Refinancing requires a hard check of your credit, which typically causes a slight dip in your credit score. However, the drop is generally just a few points and it’s temporary. Making on time loan payments may help build your credit again over time.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SOSLR-Q425-057

Jan

2026

30 College Scholarships for Minority Students

By Kevin Brouillard | Going to College, Student Loans, student_loan | Comments Off

Scholarships are a type of financial aid that you don’t need to pay back. Students may find scholarships that are need-based or merit-based, as well as scholarships for minorities that are historically underrepresented on college campuses.

College scholarships for minorities are available for both undergraduate and graduate students. We’ve outlined a list of scholarships for minority students below, plus some tips for applying and what to expect for eligibility requirements.

Table of Contents

Eligibility Requirements
How to Find Minority Scholarships
General Scholarships for Minority Students
Scholarships for Specific Minority Groups
Tips for Applying
The Takeaway

Key Points

• Scholarships for minorities are a form of grant aid that does not need to be repaid.

• Minority scholarships come from many sources — federal, institutional, and private — and can target underrepresented ethnic groups.

• Eligibility often depends on a mix of criteria: academic merit (GPA, leadership, talent), financial need (often via FAFSA), or shared cultural/ethnic background.

• These scholarships cover a wide variety of fields and majors, including STEM, business, law, architecture, and the arts.

• In addition to scholarships, minority students can rely on grants, federal student loans, and private student loans to pay for college.

Eligibility Requirements

It’s important to check the eligibility requirements before applying for scholarships and grants. There are multiple types of scholarships that students could qualify for based on where they live, their chosen field of study, or being recruited as a student athlete.

Academic, Financial, and Demographic Criteria

Minority scholarships are often based on financial need, academic merit, or a combination of the two. Competitive merit scholarships can involve GPA minimums, community service experience, or proficiency in the arts or a specific academic discipline.

Need-based scholarships, which are based on a student’s financial need, can help make college more affordable for students from low-income backgrounds. Whether applying for federal grants or private scholarships, students need to fill out the Free Application for Federal Student Aid (FAFSA®).

Additionally, demographic criteria — such as belonging to an underrepresented racial or ethnic group — are typically central to eligibility, with some scholarships further narrowing qualifications based on heritage, first-generation status, or intended career path.

How to Find Minority Scholarships

There are many scholarship options for students from underrepresented populations. Finding minority scholarships begins with completing the FAFSA to determine eligibility for need-based awards, such as Pell Grants.

Resources for Locating Minority-Focused Awards

Finding scholarships designed for minority students can be easier with the right tools and support systems. Many colleges, nonprofit organizations, and government agencies maintain databases specifically dedicated to funding opportunities for underrepresented groups.

Helpful resources include:

• University financial aid offices and multicultural resource centers

• Scholarship search engines that filter by demographic criteria

• Professional associations offering field-specific awards for minority students

• Community-based organizations and local foundations

• Government-sponsored directories of state and national programs

Using Scholarship Search Engines Effectively

Searching for scholarships online is a common approach. The Department of Labor maintains a scholarship database, known as CareerOneStop.

SoFi’s scholarship finder is another resource to find free money to help pay for college, graduate school, or trade school. Users can filter results by residency, field of study, ethnicity, and other criteria.

General Scholarships for Minority Students

Below are some scholarships for minority students to begin their search.

• AMA Diversity Leadership Scholarship: Supports underrepresented marketing students who demonstrate leadership within their campus chapter or community.

• Government Finance Professional Development Scholarship: Multiple scholarships for minority students enrolled in a course of study preparing for a career in state or local government.

• Robert Noyce Teacher Scholarship Program: Scholarships to support undergraduate science, technology, engineering, and mathematics (STEM) majors become effective K-12 STEM teachers.

For a chance to win SoFi’s monthly $2,500 Scholarship Sweepstakes, simply let us know your name, email address, and school.

Scholarships for Specific Minority Groups

Scholarships for minorities can be specific to certain ethnicities and heritages, rather than open to all minority groups.

Minority students should also look into grants for college. Like scholarships, grants typically don’t need to be repaid. A couple distinctions to note: Grants are usually based on financial need versus academic merit, and funds are often from federal and state government instead of private and non-profit entities.

After scholarships and grants, students can rely on federal student loans and private student loans.

Here’s a look at college scholarship opportunities for several different minority groups.

Scholarships for African American Students

Black and African American students can apply for specific minority scholarships and grants to help minimize college debt. Scholarship eligibility may be based on a student’s major, location, and the type of institution.

• CBC Spouses Education Scholarship: Scholarships for African American or Black students who demonstrate leadership through community service, pursuing an undergraduate, graduate, or doctoral degree.

• HBCU Sustainable Communities Initiative Scholarship: Awards for students attending Historically Black Colleges and Universities (HBCU) and majoring in STEM, business, or sustainability-related disciplines.

• Historically Black Law School Scholarship Program: Awards a scholarship to one student at each historically black law school in the U.S.

• National Forum for Black Public Administrators Scholarships: Awards for African American students enrolled in a four-year degree program who demonstrate leadership related to public service.

• NSBE Scholarship Program: Multiple scholarships for African-American undergraduate and graduate students majoring in engineering.

Scholarships for Hispanic/Latino Students

Hispanic and Latino students have unique funding opportunities to apply for among the list of scholarships and minority grants for college. Eligibility may depend on the institution type and location, as well as a student’s location and financial need.

• Café Bustelo® El Café Del Futuro Scholarship: Scholarships for college students with a passion for community involvement and enrolled at a Hispanic Association of Colleges and Universities member institution.

• Dr. Juan Andrade Jr. Scholarship for Young Hispanic Leaders: Need-based awards for full-time students of Hispanic ancestry who are committed to servant leadership.

• Hispanic Heritage Foundation Youth Awards: Scholarships for students of Hispanic heritage enrolled at an accredited higher education institution.

• HSF Scholar Program: Merit-based awards for U.S. citizens, permanent residents, eligible non-citizens, or DACA of Hispanic heritage enrolling in undergraduate or graduate school.

• Latinos in Technology Scholarship: Scholarships and summer internship opportunities for Latino and Hispanic students enrolled in a STEM program in their junior or senior year at a college in Northern California or a graduate of a high school in Northern California.

Scholarships for Native American Students

Some minority scholarships are available to Native American students exclusively. Tribal enrollment and field of study are two eligibility requirements to be mindful of.

• American Indian Education Fund Scholarships: Awards for Native American, Alaska Native, and Native Hawaiian students pursuing undergraduate and graduate degrees.

• Catching the Dream Scholarship: Awards for Native American and Alaska Native students to study business administration, economic development, and related subjects.

• American Indian College Fund: Awards for American Indian and Alaska Native students seeking technical, undergraduate, and graduate degrees at tribal colleges or accredited non-profit schools.

• Udall Undergraduate Scholarship: Awards undergraduates from Native American or Alaska Native backgrounds who commit to environmental stewardship, tribal public policy, or Native healthcare careers, including financial support and leadership training.

• Native Forward Direct Scholarship: Offers financial assistance to American Indian and Alaska Native undergraduate, graduate, and professional students enrolled in U.S.-accredited institutions, helping cover educational costs mid-year for those who demonstrate unmet financial need.

Scholarships for Native Hawaiian Students

There are a variety of scholarships for Native Hawaiian students to help pay for the cost of college. Eligibility for scholarships may vary based on the field of study and a student’s residency.

• AIANTA Tourism & Hospitality Scholarship: Financial assistance for Native Hawaiian, Alaska Native, and Native American students toward a degree or certificate in hospitality, culinary arts, or related fields.

• AISES Scholarships: Scholarships for Native Hawaiian and Native American undergraduate and graduate students pursuing STEM degrees.

• CCAPW Scholarships: Assistance for American Native Hawaiian and Pacific Islander women from specific central California communities.

• Ho‘oilina Scholarship: Awards Hawai‘i public high school graduates who enroll in Travel Industry Management at University of Hawai‘i at Mānoa with a four-year scholarship to help cover tuition and related costs as they train to become future professionals in tourism and hospitality.

• Native Hawaiian Health Scholarship Program: Scholarships for Native Hawaiians pursuing careers in primary and behavioral health disciplines.

Scholarships for Asian American Students

There are minority scholarships designated for Asian American students. Note that scholarship eligibility may be specific to certain ethnic groups and ancestry.

• Asian Pacific Fund Scholarships: Offers multiple scholarship programs catering to various Asian and Pacific Islander communities, supporting undergraduate and graduate students in different fields based on heritage, financial need, and academic merit.

• Kimbo Foundation Scholarship: Multiple awards for Korean-American college students who demonstrate academic achievement, leadership potential, financial need, and volunteer or community service commitment.

• NSRCF Scholarships: Multiple awards for high school seniors of Southeast Asian ancestry living in designated areas of the United States.

• Taiwanese American Scholarship Fund: Need-based scholarships for Taiwanese American college students of all majors.

• Korean American Scholarship Foundation Scholarship (KASF): Designed specifically for Korean-American high school seniors, undergraduates, and graduates; awards range generally from a few hundred to several thousand dollars, helping recipients with college expenses.

Scholarships for Pacific Islander Students

There are a variety of scholarships for Pacific Islander students to help cover the cost of college. Below are five to choose from.

• Hoʻoulu Scholarship Fund: Offers financial support to Pacific Islander students who previously attended college but paused their studies and are now returning.

• Ida M. Pope Memorial Scholarship: Awarded to Hawaiian‑ancestry women majoring in health, science, or education fields, recognizing academic achievement and supporting their continued education.

• Kapiʻolani Pacific Islander Scholarship (via Kapiʻolani Community College): Provides tuition relief to students from U.S.-affiliated Pacific Islands, covering a portion of tuition costs for credit courses while enrolled.

• Asian & Pacific Islander American Scholarship Fund (APIASF) Scholarship: Offers one-time or multi-year awards (from around $2,500 up to $20,000) to undergraduate students of Asian American, Native Hawaiian, or Pacific Islander heritage.

• Blossom Kalama Evans Memorial Scholarship Fund: Administered by the Hawaiʻi Community Foundation, this fund supports Hawaiian‑ancestry students (including undergraduates, juniors, seniors, or graduate students) with financial need.

Scholarships for Middle Eastern and North African (MENA) Students

Scholarships for Middle Eastern and North African (MENA) students provide vital financial support to help these students pursue higher education in the U.S. and abroad. Here are five to choose from:

• Arab America Scholarships: Financial award for U.S. students of Arab descent that helps cover college tuition and encourages educational and civic engagement.

• AAMA Houston Chapter Scholarship: Offered to Arab American students in medical, dental, nursing, or related health fields.

• Amideast Hope Fund Scholarship: Aimed at deserving Palestinian youth, this award supports those seeking undergraduate study in the U.S. who need financial assistance and academic opportunity.

• U.S.-MEPI Student Leaders Program Scholarship: From the U.S.–Middle East Partnership Initiative, this scholarship supports undergraduate or graduate students from MENA countries with academic funding and leadership training.

• ExxonMobile MENA Scholars Program: A competitive scholarship for students from the Middle East and North Africa pursuing advanced degrees (often in STEM or related fields) at U.S. universities.

Tips for Applying

Applying for scholarships can be made easier with some prior planning. After identifying scholarship options, making note of application deadlines is a useful place to start.

Tailor Your Personal Statement

If a scholarship requires an essay or personal statement, double check that you’re following the prompts and word limit requirements. Highlighting your personal experience, strengths, and achievements can help you stand out as an applicant.

Request Letters of Recommendation Early

Letters of recommendation are a common application requirement. Think about which teachers or employers would be best suited to write a recommendation — and give plenty of notice if asking them to do so.

Organize Deadlines and Materials

Staying organized is key when applying for scholarships, as missing a deadline or submitting incomplete materials can disqualify you. Create a calendar or spreadsheet to track each scholarship’s due date, required documents, and submission method. Keep copies of transcripts, recommendation letters, essays, and financial information in one easily accessible folder, ensuring you can quickly tailor materials for each application.

The Takeaway

Scholarships and grants are a great way for minority students to pay for college and reduce student debt. But many students require additional financing, such as federal and private student loans, to fund their 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

Are there scholarships for multi-racial students?

Yes, multi-racial students can access minority scholarships that relate to any part of their multicultural heritage or ancestry. Eligibility requirements for minority status or specific ethnic groups are typically outlined in the scholarship description.

Do minority scholarships consider financial need?

Entities offering minority scholarships may consider a student’s financial need, academic merit, or a combination of the two.

What documents are required for minority scholarships?

To apply for minority scholarships, students may need to submit their transcripts, letters of recommendation, standardized test scores, essays, and the FAFSA.

Are there scholarships for undocumented minority students?

Yes, there are scholarships specifically for undocumented minority students. Many come from nonprofit organizations, community foundations, and state or private scholarship funds dedicated to helping undocumented or DACA‑eligible students. These scholarships often focus on financial need, academic merit, and community involvement.

Can I apply for more than one minority scholarship at a time?

Yes, you can apply for multiple minority scholarships at the same time. Each scholarship has its own eligibility requirements and deadlines, so applying to several increases your chances of receiving funding.

Photo credit: iStock/Maca and Naca

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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SOISL-Q425-051

Jan

2026

Step-by-Step Guide to Filling out a FAFSA Form for the First Time

9 Steps to Filling Out the FAFSA Form for School Year 2026-2027

By Julia Califano | Going to College, Student Loans, student_loan | Comments Off

Editor’s Note: The new FAFSA form for the 2025-2026 academic year is available. Based on early testing by students and families, the process seems to be improved from the 2024-2025 form. Still, it’s best to get started on the form and aim to submit your application as soon as possible.

Table of Contents

Completing the FAFSA for the 2026-2027 Academic Year
Documents You’ll Need to Fill Out the FAFSA
9 Steps to Filling Out the FAFSA
What’s Different About the 2026-27 FAFSA
FAQ

Filling out the Free Application for Federal Student Aid (FAFSA®) is one of the most important steps in paying for college. Completing the form accurately and on time can unlock access to federal grants, work-study opportunities, and student loans. Many states and individual colleges also rely on FAFSA information to determine eligibility for their own need-based and merit-based scholarships and grants.

Although recent updates have significantly simplified the FAFSA, the process can still feel intimidating — especially for first-time applicants and their families. This guide walks you through what you need to know, from gathering the right documents before you begin to what to expect when completing the application online.

Key Points

• The FAFSA for the 2026-2027 school year is open, and submitting it early is strongly recommended for maximizing financial aid eligibility.

• Applicants must consent to the IRS Direct Data Exchange to automatically import 2024 federal tax information directly into the FAFSA.

• Both the student and parent contributors (if dependent) must create a StudentAid.gov account to complete and sign the form.

• The former Expected Family Contribution (EFC) has been replaced by the Student Aid Index (SAI), which determines aid eligibility.

• The simplified “Better FAFSA” includes fewer questions and allows students to list up to 20 colleges on their application.

Completing the FAFSA for the 2026-2027 Academic Year

The FAFSA for the 2026-2027 school year determines financial aid eligibility for students attending college between July 1, 2026 and June 30, 2027. The application typically opens in the fall of the prior year, allowing students and their families ample time to prepare and submit their information.

However, because some types of financial aid are awarded on a first-come, first-served basis, it’s strongly recommended to complete the FAFSA as early as possible. Submitting early can increase your chances of receiving the maximum amount of aid you may qualify for and make it easier to pay for college.

💡 Quick Tip: Fund your education with a competitive-rate, no-fees-required SoFi private student loan that covers up to 100% of school-certified costs.

Documents You’ll Need to Fill Out the FAFSA

Before starting the online FAFSA form, it’s helpful to gather all required documents in advance. Having this information ready can make the process smoother, faster, and less stressful while reducing the likelihood of errors or delays.

Information and documents you may need to complete the FAFSA include:

• Your Social Security Number

• Your Alien Registration Number (A-Number), if you’re not a U.S. citizen

• Federal income tax returns

• Records of child support received

• Current balances of cash, savings, and checking accounts

• Bank statements and records of investments (if applicable)

• Records of net worth of investments, businesses, and farms

• Records of untaxed income (if applicable)

If you’re classified as a dependent student, your parents will also need most of the same information for their portion of the FAFSA.

9 Steps to Filling Out the FAFSA

Below are the key steps to completing the FAFSA online for the 2026-2027 school year.

1. Create a StudentAid.gov Account

Before you can begin the FAFSA, both you and your parent(s), if required, must create a StudentAid.gov account. This account provides a username and password that allows you to securely log in, complete the FAFSA electronically, and sign the form digitally.

2. Start a New FAFSA Form

To begin, navigate to the FAFSA application page and select “Start New Form.” You’ll be prompted to log in using your StudentAid.gov account credentials. After logging in, you’ll select “Student” to indicate that you are completing the form as the student applicant.

3. Enter Your Personal Information

You’ll be asked to provide basic personal details, including your full name, date of birth, Social Security number, and contact information. It’s important to double-check all entries for accuracy, as errors in this section can cause processing delays or issues matching your information with official records.

4. Provide Personal Circumstances

This section is designed to determine if you’re a dependent or independent student for financial aid purposes. If you’re classified as a dependent student, you’ll need to include both your financial information and your parent’s information.

Being a dependent student does not mean your parents are required to pay for your education, but it does affect how your financial aid eligibility is calculated.

5. Complete the Financial Information Section

To be eligible for federal student aid, you must provide consent for the FAFSA to import your tax information directly from the Internal Revenue Service (IRS) using the IRS Direct Data Exchange. For the 2026–2027 FAFSA, the form uses 2024 federal tax information. Once consent is given, relevant tax data will automatically populate your application, helping to save time and reduce errors and omissions.

You’ll also need to report information about your financial assets, such as cash in bank accounts and any investments you own. If you are married, your spouse’s financial information may also be required. Do not include your parents’ assets in this section — they will provide their information separately in their portion of the FAFSA.

6. Provide List of Colleges

You can list multiple colleges on your FAFSA, and each school you include will receive your financial information to determine your financial aid package. Even if you haven’t finalized your college decision, it’s wise to include all schools you’re seriously considering.

You can add or remove schools later if your plans change. Importantly, colleges cannot see which other schools you’ve listed on your FAFSA.

Recommended: College Search Tool

7. Invite Parent Contributors (If Required)

If you are a dependent student, you’ll need to invite your parent(s) to complete their portion of the FAFSA. This is done by providing their email address, which triggers an invitation allowing them to access the form.

If your parents are married and file a joint tax return, only one parent needs to fill out the FAFSA. If they are married but filed separately, both parents are contributors. If your parents are divorced or separated and do not live together, the parent who provided more financial support during the past 12 months is the required contributor.

8. Review and Submit your FAFSA

Before submitting, carefully review all responses to ensure everything is accurate and complete. You’ll then acknowledge the terms and conditions, provide your electronic signature, and submit your section of the form.

If a parent or another contributor is required, the FAFSA will not be processed until all contributors have completed and signed their respective sections. Once all signatures are submitted, your FAFSA is considered complete.

9. Review Your Submission Summary

One to three days after submitting your completed FAFSA, you’ll receive a FAFSA Submission Summary. This document summarizes your responses and provides a basic estimate of your eligibility for federal student aid. It also includes your Student Aid Index (SAI), which colleges use to determine your eligibility for Federal Pell Grants and other federal, state, and institutional aid programs.

💡 Quick Tip: Even if you don’t think you qualify for financial aid, you should fill out the FAFSA form. Many schools require it for merit-based scholarships, too.

What’s Different About the 2026-27 FAFSA

The U.S. Education Department launched the new “Better FAFSA” form, mandated by the FAFSA Simplification Act, beginning with the 2024-2025 aid year. The 2026–2027 FAFSA continues these updates, including:

• Fewer questions: The FAFSA has been reduced from over 100 questions to approximately 36.

• Direct data exchange: Applicants must consent to the IRS Direct Data Exchange, which automatically imports federal tax information to reduce errors.

• Student Aid Index (SAI): The former Expected Family Contribution (EFC) has been replaced by the SAI, which can range as low as -1,500 to better identify students with the greatest financial need.

• Expanded school list: Students can now list up to 20 colleges on the online FAFSA, doubling the previous limit.

• FAFSA Submission Summary: Instead of a Student Aid Report (SAR), you receive a FAFSA Submission Summary after filing the FAFSA form.

The Takeaway

Completing the FAFSA is a critical step in securing financial aid for college. While the “Better FAFSA” updates have made the application more streamlined — with fewer questions and direct IRS data exchange — it still requires careful attention to detail. By following these nine steps, from creating your StudentAid.gov account and gathering required documents to inviting parent contributors and reviewing your submission, you can navigate the process with confidence.

Submitting your FAFSA as early as possible is strongly recommended, as some aid is awarded on a first-come, first-served basis. Your resulting Student Aid Index (SAI) will play a key role in determining your eligibility for grants, loans, and scholarships that can make college more affordable.

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FAQ

What is the #1 most common FAFSA mistake?

One of the most common FAFSA® mistakes is failing to submit the form early enough. While the federal deadline for the FAFSA is generally late, state and college-specific deadlines are often much earlier, and some aid is awarded on a first-come, first-served basis. Submitting the FAFSA as close to its opening date as possible (typically October 1st of the prior year) maximizes your chances of receiving the most aid.

Are parents or students supposed to fill out FAFSA?

Both students and parents may need to fill out the FAFSA®, depending on the student’s dependency status. The student is responsible for starting and submitting the application using their own Federal Student Aid (FSA) ID. If the student is considered dependent, a parent must also provide financial information and sign the form with a separate FSA ID, which is common for undergraduates applying for aid.

What three things will you need to fill out the FAFSA?

While several documents are helpful, three crucial items needed to fill out the FAFSA are:

• Social Security number: Your valid Social Security card and number are required. (If you are not a U.S. citizen, you may need your Alien Registration Number instead).

• Federal income tax information: You’ll need access to information from your federal income tax returns from the relevant tax year, which can be transferred automatically using the IRS Direct Data Exchange.

• Records of other income and assets:This includes information on current balances of cash, savings, and checking accounts, as well as the net worth of any investments, businesses, or farms. You may also need records of untaxed income received, such as child support.

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