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Want to squeeze in a couple of classes this summer but not sure how to pay for them? You have several options, including federal and private student loans. The summer loan application process is generally the same as it is for the regular academic year. But the federal government limits how much you can borrow, so it’s important to consider your choice carefully.

Here’s what you need to know about paying for summer classes.

Costs of Going to School in the Summer

Tuition is one of the biggest costs associated with going to school in the summer. That said, some colleges offer summer courses at a reduced cost, or you may be able to take classes at a community college for a lower price and transfer the credits to your school. If you don’t plan on living at home, you’ll also need to budget for housing, food, transportation, and other personal expenses.

The short-term cost of going to school during the summer may be worth it in the long run, though. Taking extra classes can help you finish your degree — and start drawing income from a full-time job — faster.

Recommended: What Is the Average Cost of College Tuition?

Ways You Can Find and Get Money for Summer Classes

Just like during the fall or spring terms, financial aid is available during the summer. Here’s a look at some common types of assistance.

Grants

Grants can help offset the cost of summer courses and typically don’t need to be repaid. One popular type of grant is the Pell Grant, which is awarded by the federal government and based on financial need. Qualifying students can receive Pell Grants for 12 terms, and in certain circumstances, they may be eligible to receive additional funds for the summer term.

Some schools offer grants to students who are enrolling in summer classes. Contact the financial aid office to see if your school offers this option. Your state may also provide grants to help students cover the cost of summer classes. Visit the website of your state’s department of education to find out if this option is available to you.

Scholarships

Like grants, scholarships usually do not need to be repaid, and in general, you’re free to use the funds for a summer term. There are thousands of available scholarships based on financial need or merit offered by a variety of sources. Searching scholarship databases can help you narrow your options.

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

Work-Study

Federal Work-Study gives students with financial need part-time employment to help them earn extra money to pay for education expenses. Check with your college’s financial aid office to find out if the school participates in the program.

Student Loans

The loans you apply for to pay for the regular school year can also be used to cover summer courses. There are different types of federal student loans to explore: Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

Once you’ve exhausted federal aid options, you may consider private loans to pay for summer classes. Generally, lenders allow you to borrow up to the school-certified cost of attendance.

Federal vs Private Student Loans: How They Compare

Federal student loans are funded by the federal government and offer borrowers protections such as deferment, forbearance, and the option to pursue Public Service Loan Forgiveness. Most federal student loans do not require a credit check, and interest rates are fixed for the life of the loan. Students must fill out the FAFSA annually and be enrolled at least part-time to qualify for aid.

The federal government limits the amount of money students can borrow per academic year and in total, and this includes any aid you receive for summer classes. The limit is based on your dependency status and how long you’ve been in school. For example, in the 2026-27 academic year, a first-year dependent undergraduate may qualify for up to $5,500 in student loans, with a limit of $3,500 on what can be subsidized. An independent first-year undergraduate student may qualify for up to $9,500 in student loans, with a limit of $3,500 on what can be subsidized.

Private Loans

Private loans are offered by private lenders, such as banks, credit unions, and online lenders. Interest rates may be fixed or variable and are determined by the lender based on criteria including an applicant’s financial history and credit score. Many lenders require students to be enrolled in school at least part-time.

Depending on the loan terms, borrowers may be required to make payments while they are enrolled in school, and lenders may or may not provide a grace period. Private student loans also lack the borrower protections afforded to federal student loans.

Students who take out the maximum amount of federal aid may consider private loans as an option to pay for summer classes. Generally, private lenders allow you to borrow up to the school-certified cost of attendance.

When Applications Are Due

FAFSA applications for the following academic year are typically due around the end of June. The application requires borrowers to check the school year in which the funds will be used. If you’re submitting a FAFSA for the summer term, ask your school which year to check on the form and if any other forms are required. The sooner you submit the application, the more likely you are to receive funding, since many sources of aid are offered on a first-come, first-served basis.

What You’ll Need to Apply

To help the FAFSA application process go smoothly, it helps to have some information and a few documents on hand. This includes your Social Security Number (or Alien Registration Number if you’re an eligible noncitizen), your federal income tax returns, W-2s, and other records of income, bank statements and any record of investments, records of untaxed income, if applicable, and your StudentAid.gov account username and password. Dependent students will need most of that information for their parents.

If you’re applying for a private student loan, you’ll apply directly with the lender. Applicants typically need to have a solid credit history and proof of income, be at least 18, and be a U.S. resident. Adding a cosigner to the loan may be an option that can help potential borrowers strengthen their application.

Recommended: Do I Need a Student Loan Cosigner?

Understand Your Loan Options

When you’re considering student loans for summer classes, it’s important to explore all available options. Federal student loans, such as Direct Subsidized and Unsubsidized Loans, may be available if you meet eligibility requirements and have remaining aid from the academic year.

If federal aid isn’t enough, private student loans can help fill the gap, offering flexible borrowing limits based on your school’s cost of attendance. However, private loans typically require a credit check and may have higher interest rates than federal options.

Comparing loan terms, interest rates, and repayment options will help you choose the best financial solution for your summer coursework.

How to Pay for Summer Classes

There are several ways to finance your summer coursework, depending on your financial situation and eligibility. Consider the following options to cover tuition and related expenses:

•   Federal student aid. Use remaining federal loans or apply for a Pell Grant if eligible.

•   Private student loans. Borrow from private lenders if federal aid isn’t sufficient.

•   Scholarships and grants. Search for summer-specific funding opportunities that don’t require repayment.

•   Work-study programs. Earn money through on-campus or part-time jobs while taking classes.

•   Personal savings or payment plans. Use savings or set up a tuition payment plan with your school.

Evaluating these options carefully can help you find the most cost-effective way to pay for your summer courses.

The Takeaway

If you’re considering enrolling in summer classes, financial aid can help you cover the bill. Grants, scholarships, work-study, internships, and part-time jobs are all options to explore, as are federal and private student loans.

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.

FAQ

Can federal student loans be used to pay for summer classes?

Yes, federal student loans, including Direct Subsidized, Direct Unsubsidized, and Direct PLUS Loans, can be applied toward summer courses. To determine eligibility, students should complete the Free Application for Federal Student Aid (FAFSA).

What should students do if federal aid isn’t sufficient to cover summer class expenses?

If federal aid doesn’t fully cover summer class costs, students might consider private student loans. Private lenders typically allow borrowing up to the school’s certified cost of attendance. It’s important to note that private loans usually cover only one academic year at a time, so a separate application may be necessary for summer term funding.

Are student loans applicable to expenses beyond tuition during the summer term?

Yes, student loans can be used to cover not only tuition and fees but also living expenses during the summer term. This includes costs such as housing, food, transportation, and other related expenses.

Photo credit: iStock/Prostock-Studio

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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.

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.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

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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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.

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.

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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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.