Apr
25
2025
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How Does Student Loan Deferment in Grad School Work?

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

If you’re thinking about attending graduate or professional school, you may be wondering how to handle your undergraduate student loans. One question many potential grad students have is, if I go to graduate school, will my loans be deferred?

You could defer loans while in grad school for temporary relief, but other options like loan refinancing or an income-driven repayment plan could bring longer-term help.

Read on to learn more about how to defer student loans while in grad school, and other measures to consider.

Key Points

•   Federal student loans are automatically deferred for up to 36 months if you’re enrolled in graduate school at least half-time. Other circumstances that may qualify for deferment include economic hardship, cancer treatment, and unemployment.

•   Interest does not accrue on subsidized federal loans during deferment, but it does accrue on unsubsidized and Direct PLUS loans.

•   To apply for federal loan deferment, submit a request to the student loan servicer with required documentation.

•   An alternative option to deferment for federal loans is Income-Driven Repayment plans, which offer lower monthly payments based on discretionary income and family size over an extended repayment period.

•   Private student loans may or may not offer deferment, and terms and conditions vary by lender.

Deferment vs Forbearance

Graduation from undergrad or graduate school is followed by a payment grace period of six months for most federal student loans. But if you hit a snag at some point and can’t afford payments, both deferment and forbearance are designed to allow you to apply to postpone payments.

The main difference between deferment and forbearance: Interest accrues on only some federal student loans during deferment, whereas it accrues on nearly all of them in forbearance.

In forbearance, any unpaid interest is capitalized, or added to your loan balance, at the end of the payment pause, increasing the total amount you end up repaying.

To answer the question of, if I go to graduate school, will my loans be deferred?, it is possible to do, as long as you qualify for deferment.

Deferment, for up to 12 months at a time, for a maximum of 36 months, may be a better choice than forbearance if:

•   You have subsidized federal student loans and

•   You’re dealing with substantial financial hardship

If you apply to defer student loans while in grad school and don’t qualify, and your financial hardship is temporary, forbearance is an option.

If you have private student loans, many lenders will allow you to apply for a payment pause during hardship, too, though the terms and fees may be less borrower-friendly than is the case with federal student loans.

Do I Qualify to Defer My Payments?

Here’s how to defer student loans while in grad school: For federal student loans, you’ll need to submit a request to your student loan servicer, usually with documentation to show that you meet the eligibility requirements for the deferment. For private student loans, you’ll need to check the rules directly with the lender.

Besides in-school deferment, an automatic deferment that you are eligible for if you’re enrolled in school at least half time, a variety of circumstances may qualify you for federal student loan deferment. These are several of them.

Economic Hardship Deferment

You:

•   Are receiving a means-tested benefit, like welfare

•   Work full-time but have earnings that are below 150% of the poverty guideline for your family size and state

•   Are serving in the Peace Corps

Unemployment Deferment

You receive unemployment benefits or you are unable to find full-time employment.

Graduate Fellowship Deferment

You’re enrolled in an approved graduate fellowship program that provides financial support while you pursue graduate studies and research.

Military Service and Post-Active Duty Student Deferment

You are on active duty military service in connection with a war, military operation, or national emergency; or you’ve completed active duty service and any grace period.

Rehabilitation Training Deferment

You’re enrolled in an approved program that provides mental health, drug abuse, alcohol abuse, or vocational rehab.

Cancer Treatment Deferment

You may qualify for deferment while undergoing cancer treatment and for six months afterward.

When Interest Accrues in Deferment

If you’re looking into defer student loans while in grad school, you’ll want to check how interest would be handled on the loans during the payment pause. And if unpaid interest is capitalized, you’ll need to make sure you’re prepared to take on a higher overall cost of the loan.

During deferment, you are generally not responsible for paying interest on:

•   Federal Direct Subsidized Loans

•   Federal Perkins Loans

•   The subsidized portion of Federal Direct Consolidation Loans

•   The subsidized portion of Federal Family Education Loan (FFEL) Program Consolidation Loans

With deferment, you are generally responsible for paying interest on:

•   Federal Direct Unsubsidized Loans

•   Federal Direct PLUS Loans

•   FFEL PLUS Loans

•   The unsubsidized portion of Federal Direct Consolidation Loans

•   The unsubsidized portion of FFEL Consolidation Loans

•   Private student loans (if the lender allows deferment)

If you’re starting graduate or professional school or are in the thick of it, your federal borrowing options are Direct PLUS Loans (commonly called Grad PLUS Loans when borrowers are graduate students) and Direct Unsubsidized Loans (also available to undergrads).

As noted above, those loan types accrue interest during a deferment.

Direct loans for graduate students carry a 9.08% rate for loans disbursed after July 1, 2024 and before July 1, 2025 (the rates are set by federal law for each academic year), with a loan fee of 4.228%.

Private lenders such as banks, credit unions, and online lenders may offer private graduate student loans, sometimes with a fixed or variable rate and no loan fee.

Something to consider: If you pursue deferment on loans that you’re responsible for paying interest on during the deferment period, it’s a good idea to at least consider making interest-only payments during the deferment to manage costs while in grad school.

Options to Deferment in Grad School

There are at least two other ways, beyond forbearance, to get a handle on student loan payments in grad school.

Income-Driven Repayment

Some graduate students who have federal student loans might want to consider switching, even temporarily, to an income-driven repayment (IDR) plan.

Your monthly payment would be tied to family size and discretionary income, which may be low for a graduate student enrolled full time.

The three income-driven repayment plans currently in effect (as of late March 2025) stretch your payments over 20 or 25 years. On one of the plans, the Income-Based Repayment Plan, any remaining balance is typically forgiven after that time. (Forgiveness has been paused on the other IDR plans.) After graduation, you could switch the student loan repayment plan back to the standard 10-year plan if you wanted to.

Though borrowers often pay less each month using one of these plans, they’ll generally pay more in total interest over the duration of the drawn-out loan.

Refinancing

Another way to potentially lower your monthly payments without deferring your loans is to refinance your student loans. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

With student loan refinancing, a private lender pays off your loans with one new loan, ideally with a lower interest rate.

A decrease in an interest rate while maintaining the loan’s term is a way to save money each month and over the life of the loan. To understand how a change of even 1% can affect how much interest you’ll pay on a loan over time, you can use this student loan refinance calculator.

One thing to consider regarding federal loans: Should you refinance these loans, you’ll lose access to federal programs such as income-driven repayment and loan forgiveness. Be sure to consider this carefully before refinancing.

Private lenders may or may not have a deferment option.

Lenders that offer student loan refinancing typically require a good credit history and a steady income, among other factors. A student loan refinancing guide can help you learn more about the process.

The Takeaway

Student loan deferment before or during grad school could bring temporary relief from monthly loan payments. However, it could also add unpaid interest to loans and create a bigger balance to pay off. Those looking to manage payments long term may want to look into alternatives such as income-driven repayment plans and student loan refinancing.

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

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

FAQ

What does grad school deferment mean?

If you’re attending graduate school at least half-time, in most cases, your federal student loans will automatically be put in deferment. That means your payments will be postponed for 12 months at a time up to 36 months. If you have subsidized federal student loans, you are generally not responsible for paying interest on the loans while in deferment. You typically are responsible for paying interest on unsubsidized and Direct PLUS loans, including Grad PLUS loans.

How does student loan deferment work?

Student loan deferment allows you to temporarily pause your federal loan payments for 12 months at a time up to a maximum of 36 months. You may be eligible for deferment if you are facing such circumstances as unemployment, financial hardship, cancer treatment, or if you’re in an approved graduate fellowship program. Also, if you are enrolled in school at least half-time, your loans are automatically placed in deferment.

Depending on the type of federal loans you have, such as subsidized federal loans, you may not be responsible for paying the interest on them during deferment.

What are the disadvantages of deferring student loans?

The main disadvantage of deferment is that interest may accrue on your student loans while they are in deferment. That means your loan balance will increase and you will pay more over the life of the loan. You are generally responsible for paying the interest on federal unsubsidized loans and Direct PLUS loans, among others, while in deferment.

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

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Apr
25
2025
Guide to Grad PLUS Loans

Guide to Grad PLUS Loans

By | Fresh Out of School, Going to College, Student Loans, student_loan | Comments Off on Guide to Grad PLUS Loans

Grad PLUS loans are federal student loans for graduate and professional students. Although Grad PLUS loans have higher interest rates and fees than some other types of federal student loans, they also have a major benefit — virtually no borrowing limits. You can borrow up to the full cost of attendance of your school, minus any other financial aid you’ve already received.

Read on for more on how Grad PLUS loans work, including their eligibility requirements, interest rates, and repayment options.

Key Points

•   Grad PLUS loans are federal student loans for graduate and professional students that allow borrowing up to the full cost of attendance, minus other financial aid.

•   These loans have a fixed interest rate of 9.08% and a 4.228% disbursement fee for loans disbursed between July 1, 2024, and July 1, 2025.

•   Borrowers must pass a credit check, but those with adverse credit may be able to qualify with an endorser or by appealing based on extenuating circumstances.

•   Grad PLUS loans are eligible for federal repayment plans, including income-driven repayment and Public Service Loan Forgiveness.

•   Alternatives to Grad PLUS loans include Direct Unsubsidized Loans, grants, scholarships, and private student loans, which may offer lower interest rates and no origination fees.

What Are Grad PLUS Loans?

If you’re planning to attend a graduate or professional program, a Grad PLUS loan (also known as a Direct PLUS loan) could help cover costs. Issued by the Department of Education, Grad PLUS loans are student loans designed for graduate and professional students.

PLUS loans are not the only federal loans available to you as a graduate student — you can also borrow federal Direct Unsubsidized loans. Direct Unsubsidized loans have lower interest rates and fees than PLUS loans, but they come with borrowing limits.

If you’ve hit your limit and need additional funding, a Grad PLUS loan could cover the gap. As mentioned above, you can borrow up to the full cost of attendance of your program, minus any other financial aid you’ve already gotten. This flexibility can be helpful for students who are attending pricey programs.

Recommended: How Do Student Loans Work? Guide to Student Loans

What Can Grad PLUS Loans Be Used for?

Grad PLUS loans can be used for tuition, fees and other education-related expenses. These expenses include,

•   Housing

•   Food

•   Textbooks

•   Computers and other supplies

•   Study abroad expenses

•   Transportation

•   Childcare costs

A Grad PLUS loan will first be disbursed to your financial aid office, which will apply the funds toward tuition, fees, room and board, and any other school charges. The financial aid office will then send any remaining funds to you.

Recommended: What Can You Use Student Loans For?

Who Is Eligible for Grad PLUS Loans?

To be eligible for a Grad PLUS loan, you must be a graduate or professional student enrolled at least half-time at an eligible school. What’s more, your program must lead to a graduate or professional degree or certificate.

You’ll also need to meet the eligibility requirements for federal financial aid (more on this below), as well as submit the Free Application for Federal Student Aid (FAFSA®).

Typical Grad PLUS Loan Requirements

Besides being enrolled in an eligible graduate or professional program, you need to meet a few other requirements to take out a Grad PLUS loan:

Meet the Requirements for Federal Student Aid

Since Grad PLUS loans are part of the federal student aid program, you must be eligible for federal aid to borrow one. Here are some of the criteria:

•   Be a U.S. citizen or eligible noncitizen

•   Have a valid Social Security number (with some exceptions)

•   Have a high school diploma, General Educational Development (GED) certificate or other recognized equivalent

•   Maintain satisfactory academic progress while in school

•   Not already be in default on a federal student loan or owe money on a federal grant

If you’re a non-U.S. citizen or have an intellectual disability or criminal conviction, additional requirements might apply.

Submit the FAFSA

You’ll need to submit the FAFSA before you can borrow a Grad PLUS loan. After applying to grad school, you can submit this form, free of charge, on the Federal Student Aid website or by mail. Since the FAFSA only applies to a single academic year, you’ll need to submit it every year you’re in school and want to receive financial aid.

Complete the Grad PLUS Loan Application

Along with submitting the FAFSA, you’ll also need to fill out a separate application for the Grad PLUS loan. You can find and submit the GRAD Plus loan application on the Federal Student Aid website, though some schools have separate processes. Your financial aid office can advise you on the steps you need to take.

If your application is approved, you’ll need to agree to the terms of the loan by signing a Master Promissory Note. If you haven’t borrowed a Grad PLUS loan before, you’ll also be required to complete student loan entrance counseling.

Not Have Adverse Credit History (or Apply With an Endorser)

While you don’t need outstanding credit to qualify for a Grad PLUS loan, you can’t have adverse credit. According to the Department of Education, you have adverse credit if one of the following applies to you:

•   You have accounts with a total balance greater than $2,085 that are 90 or more days delinquent

•   You’ve experienced a default, bankruptcy, repossession, foreclosure, wage garnishment, or tax lien in the past five years

•   You’ve had a charge-off or write-off of a federal student loan in the past five years

If you have adverse credit, you have two options:

•   Appeal the decision due to extenuating circumstances. For example, you could provide documentation showing that you paid off a delinquent debt on your credit report.

•   Apply with an endorser who does not have adverse credit. Your endorser will be responsible for repaying the loan if you fall behind on payments.

💡 Quick Tip: New to private student loans? Visit the Private Student Loans Glossary to get familiar with key terms you will see during the process.

Grad PLUS Loans Interest Rates

Grad PLUS loans come with fixed interest rates that will remain the same over the life of your loan. They also have a disbursement fee, which is a percentage of your loan amount that gets deducted from your loan.

Congress sets rates and fees on federal student loans periodically. These are the current Grad PLUS loan interest rates and fees:

Interest Rate (for loans disbursed on or after July 1, 2024 and before July 1, 2025) Disbursement Fee (for loans disbursed on or after Oct. 1, 2020 and before Oct. 1, 2025)
9.08% 4.228%

Repaying Your Grad PLUS Loans

Grad PLUS loans are eligible for a variety of federal repayment plans:

•   Standard repayment plan, which involves fixed monthly payments over 10 years.

•   Income-driven repayment, including Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR). These plans adjust your monthly student loan payments to a percentage of your discretionary income while extending your loan terms to 20 or 25 years. If you’ve made on-time payments but still have a balance at the end of your term, it may be forgiven on the IBR plan only, as of late March 2025. (Forgiveness on the other IDR plans is currently paused.) The amount forgiven may be considered taxable income by the IRS.

•   Extended repayment, which extends your repayment term to 25 years and lets you pay a fixed or graduated amount.

•   Graduated repayment, which lowers your student loan payments in the beginning and increases them every two years. You’ll pay off your loan over 10 years, and your final payments won’t be more than three times greater than your initial payments.

Grad PLUS loans are also eligible for certain federal forgiveness programs, such as Public Service Loan Forgiveness.

Other Options to Pay for Grad School

Grad PLUS loans aren’t the only way to pay for graduate school. Here are some alternative options:

Direct Unsubsidized Loans

You can borrow up to $20,500 per year in Direct Unsubsidized loans as a graduate student with an aggregate loan limit of $138,500, including any loans you borrowed as an undergraduate.

Here are the interest rate and disbursement fee for graduate students:

Interest Rate (for loans disbursed on or after July 1, 2024 and before July 1, 2025) Disbursement Fee (for loans disbursed on or after Oct. 1, 2020, and before Oct. 1, 2024)
8.08% 1.057%

Grants and Scholarships

Besides student loans, you can also pursue grants and scholarships for graduate school. You can find grants and scholarships from a variety of sources, including the Department of Education, your state, your school, or a private organization. By earning grants and scholarships, you might not need to borrow as much in student loans.

Private Student Loans

You can also explore your options for private graduate student loans from banks, online lenders, or credit unions. Some lenders offer interest rates that start lower than Graduate PLUS loan interest rates and don’t charge an origination fee.

Although private student loans aren’t eligible for federal repayment plans or programs, some lenders offer flexible repayment options or deferment if you need to pause payments. But, because private student loans aren’t required to offer the same borrower benefits as federal student loans, they are generally borrowed as a last resort option after all other sources of financing have been exhausted.

The Takeaway

If you’re looking for ways to pay for graduate school, a Grad PLUS loan could help. You can use this flexible loan to cover your school’s cost of attendance, as well as choose from a variety of federal repayment plans when it comes time to pay it back.

Alternative options to paying for school include federal Direct Unsubsidized loans, scholarships and grants, 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.

SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no fees required.

FAQ

What kind of loan is Grad PLUS?

The Grad PLUS loan is a federal student loan issued by the Department of Education. It is designed specifically for graduate and professional students.

Is there a max on Grad PLUS loans?

There is virtually no limit on the amount you can borrow with a Grad PLUS loan. You can borrow up to your school’s cost of attendance, minus any other financial aid you’ve already received.

Can Grad PLUS loans be used for living expenses?

Yes, you can use Grad PLUS loans to cover your living expenses while at school. You must use your loan for education-related expenses, which can include housing, food, supplies, transportation, and other costs related to attending school.

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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).

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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.


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.

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.

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-Q225-007

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Apr
24
2025

Guide to Trump and Student Loans: Debt and Forgiveness

By | Fresh Out of School, Student Loans, student_loan | Comments Off on Guide to Trump and Student Loans: Debt and Forgiveness

In March 2025, President Donald Trump signed an executive order directing the U.S. Secretary of Education to close down the Department of Education (DOE). He also announced that the Small Business Administration would take over the student loan portfolio, though there have been no additional details.

It’s uncertain what will happen next, since closing the DOE would require an act of Congress. Read on to learn what student loan borrowers should know about Trump and student loans — including Trump’s stand on student loan debt and forgiveness — and steps to take to prepare for potential changes.

Key Points

•   President Trump issued an executive order in March 2025 to close down the Department of Education. He also announced that the Small Business Administration would take over the student loan portfolio.

•   The DOE was created by Congress, and closing the department fully would require an act of Congress.

•   Legal challenges have been filed against the Department of Education’s closure.

•   The President also signed an executive order that would limit eligibility for the Public Service Loan Forgiveness program.

•   The impact of the potential changes is uncertain. Borrowers should continue making student loan payments, however.

Overview of Proposed Changes

President Trump has indicated that there may be some upcoming changes to the way student loans are handled, though it’s unclear how things might evolve. Here’s where things stand as of mid-April 2025.

Potential Closing of the Department of Education

The Department of Education was created by Congress, which means that closing it fully would require an act of Congress. But since March 2025, the DOE’s workforce has been cut almost in half, and as a result, the department may operate in a significantly reduced way.

To put any changes in perspective, it’s helpful to know what the DOE does. The Department of Education has been responsible for overseeing 100,000 public and 34,000 private schools in the U.S., providing federal grants for needy schools and programs, evaluating public and private schools for curriculum quality, enforcing Title IX guidelines, and investing in education research and development.

The DOE has also managed the nearly $1.7 trillion in federal student loans borrowed by tens of millions of Americans, as well as about $30 billion in Pell Grants for lower-income college students.

Even though Trump technically cannot close down the department through an executive order, the DOE’s scope and effectiveness may be limited going forward.

Potential Reduction or Elimination of Loan Forgiveness Programs

One of the most well-known student loan forgiveness programs is the Public Service Loan Forgiveness (PSLF) program. PSLF forgives the remaining balance on a borrower’s federal Direct loans as long as they make 120 qualifying monthly payments under a qualifying repayment plan while working full-time for an eligible employer.

But changes may be coming to the program. In early March 2025, the President signed an executive order to limit the eligibility for PSLF. According to the order, organizations that do work involving “illegal immigration, human smuggling, child trafficking, pervasive damage to public property and disruption of the public order” would be excluded from eligibility. It is unclear, however, which organizations would no longer be considered a qualifying employer for the PSLF program.

For now, the DOE says PSLF is unchanged, and borrowers can continue to pursue forgiveness under the program. Trump’s executive order requested an update to the program’s regulations, a process that can typically take at least a year.

Changes to Repayment Plans

Income-driven repayment (IDR) plans — which include Income-Contingent Repayment (ICR), Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE) — were created to make repayment easier for borrowers who can demonstrate that paying back their student loans is a significant financial burden.

Under IDR plans, payments are based on a borrower’s discretionary income and family size, which may help lower student loan payments.

Ordinarily, the remaining balances on eligible student loans are forgiven under IDR plans after a borrower makes a certain number of qualifying on-time payments over 20 to 25 years. But as of late March 2025, forgiveness has been paused on all of the IDR plans except IBR. (The IBR plan is excluded because it was enacted separately by Congress.)

Applications for IDR plans were put on hold in early 2025, after a federal court injunction. But applications for three of the IDR plans are available again.

However, the SAVE plan is no longer available for new borrowers. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

Borrowers can get updates on IDR plans on the Federal Student Aid website.

Potential Impact on Borrowers

Although much remains uncertain, there are some possible challenges borrowers may face when it comes to Trump’s stand on student loan debt.

Administrative Challenges

The DOE manages federal student loans through its Office of Student Aid (FSA), dealing with loan disbursement and borrower assistance among other things. The President has announced that federal student loans might be taken over by the Small Business Administration, but it’s not clear what will happen on this front.

Borrowers should continue to make their monthly student loan payments. Review your student loan paperwork and make sure you understand student loan statements, how much you owe, and when the payments are due.

It’s also a good idea to regularly monitor your loan status, balance, and payments. If you spot something that doesn’t look right or you have questions, contact your loan servicer.

Changes in Repayment Options

So far, changes in repayment options include the SAVE plan no longer being available, as noted above. In addition, forgiveness is on hold for three of the IDR plans except for the IBR plan. This is something to keep in mind if you’re considering changing student loan repayment plans and hoping to achieve student loan forgiveness.

Legal and Political Considerations

Despite the executive order about the DOE, closing down the Department of Education and making significant changes to the student loan program would technically require action from Congress. The matter has headed to the courts.

Legal Challenges

In late March 2025, two lawsuits were filed against the Trump administration over the executive order to close the DOE. One was filed by the National Education Association, public school parents, the NAACP, and a labor union; the other lawsuit was brought by two Massachusetts school districts, the American Federation of Teachers, and a coalition of labor unions, among other groups.

Both lawsuits say that closing the Department of Education and moving student loans to the Small Business Administration violates federal law and the Constitution because only Congress can shut down the DOE and make these kinds of changes.

A spokesperson for the Department of Education said in response that the Trump administration has pledged to work with Congress to close the department.

Alternatives and Additional Support

Amid all the uncertainty, what should student loan borrowers do? For those looking for ways to potentially reduce their student loan payments or qualify for forgiveness, there are a few strategies to explore.

•   Student loan consolidation: Consolidating student loans is one option that could help you manage your payments. For instance, a Direct Consolidation Loan allows you to combine multiple federal loans into one new loan to streamline payments and potentially lower your monthly payment amount.

•   Paying down loan principal: You could also direct any additional money you have — such as a tax refund or a bonus at work — to help pay off your loan principal, which could help reduce the amount of interest you owe over the life of the loan.

•   State forgiveness programs: For those looking for loan forgiveness options, many states offer state-specific forgiveness programs, especially if you work in a public service field like teaching or health care. Search your state government website to see what may be available.

•   Employer repayment programs: Additionally, check to see if your employer has a loan repayment assistance program that could help you repay your loan. The terms of these programs vary depending on the employer, but in general, an employer might establish a maximum amount they will contribute, and the employee may have to work for the company for a specific period of time to be eligible. Check with your benefits or HR department.

•   Student loan refinance: Some borrowers may want to consider student loan refinancing, which involves paying off your existing student loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate, which could lower your monthly payments, or more favorable loan terms.

If you’re curious about how to refinance, be aware that you can refinance both private and federal student loans. However, it’s important to note that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment plans and Public Service Loan Forgiveness.

Recommended: Student Loan Refinancing Calculator

The Takeaway

While President Trump has issued an executive order to close the Department of Education and announced that the Small Business Administration will take over the student loan portfolio, there is much uncertainty about the proposed changes. In the meantime, student loan borrowers should continue to make their monthly payments.

Those looking for some debt relief can explore federal loan forgiveness programs such as income-driven repayment plans, state-specific loan forgiveness programs, and employer loan repayment assistance programs.

Additionally, borrowers might choose to pay extra toward their loan principal to help reduce the amount of interest they owe overall or explore student loan consolidation or refinancing.

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


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

FAQ

How could repayment plans change under the proposed policies?

There have been some changes to the federal income-driven repayment (IDR) plans under the Trump administration. With IDR plans, the remaining balances on eligible student loans are forgiven after a borrower makes a certain number of qualifying on-time payments over 20 to 25 years. But as of late March 2025, forgiveness has been paused on all of the IDR plans except Income-Based Repayment.

Additionally, the Saving on a Valuable Education (SAVE) plan is no longer available for new borrowers. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

What impact will these changes have on current student loan borrowers?

Current student loan borrowers may see some changes to IDR plans. For example, the only IDR plan currently offering forgiveness is IBR. Also, the SAVE plan is no longer available to new borrowers.

Otherwise, as of April 2025, the Department of Education is continuing to disburse federal Direct Loans and Pell Grants. And the process for filling out and submitting the Federal Application for Federal Student Aid (FAFSA) is not expected to change at the moment.

Will existing loan forgiveness benefits be revoked?

It’s unlikely that existing loan forgiveness benefits would be revoked, because once the federal government discharges debt and the borrower receives official notification of that discharge, it is typically considered final and irreversible. Any attempt to revoke loan forgiveness benefits would also likely be met with legal challenges.

What legal hurdles could impede the implementation of these proposals?

Lawsuits have already been filed against the Trump administration over the executive order to close the Department of Education. The lawsuits maintain that closing the Department of Education and moving student loans to the Small Business Administration violates federal law and the Constitution because only Congress can shut down the department and make these kinds of changes.

Are there alternative options for borrowers if federal programs are reduced?

If federal programs are reduced, borrowers have several alternative options for reducing their student loan payments and pursuing loan forgiveness. These include paying down student loan principal to reduce the amount of interest owed over the life of the loan, exploring state-specific loan forgiveness programs and employer loan assistance programs, and considering student loan consolidation or refinancing to make monthly loan payments more manageable.

Photo credit:iStock/Inna Kot

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

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


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.

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

This article is not intended to be legal advice. Please consult an attorney for advice.

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.

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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Apr
16
2025

Student Loan Forgiveness for Caregivers

By | Fresh Out of School, Student Loans, student_loan | Comments Off on Student Loan Forgiveness for Caregivers

There are approximately 53 million family caregivers in the U.S., according to the latest data. While caregiving is a labor of love, it can also involve some serious financial challenges. You might have to take time away from your job to care for your loved one, for instance, making it hard to pay your bills and student loans.

Fortunately, there are options that can help, including student loan forgiveness for caregivers. Read on to learn about ways to manage your student loans and get some debt relief.

Key Points

•   Caregivers face financial challenges, including managing student loans, due to caregiving responsibilities that may require them to take time off from or leave their jobs.

•   There may be federal student loan forgiveness options for caregivers, including Public Service Loan Forgiveness (PSLF) and forgiveness through income-driven repayment (IDR) plans.

•   State-specific student loan forgiveness programs may also be available for caregivers.

•   While there typically aren’t many options for private student loan forgiveness, some state programs offer forgiveness for private loans that caregivers may be eligible for.

•   Alternatives to student loan forgiveness for caregivers include deferment, forbearance, and refinancing of student loans.

Managing Student Loans as a Caregiver

Juggling student loan payments and other expenses with caregiving responsibilities can be difficult. Nearly two in 10 caregivers had to leave their job to care for a family member, and four in 10 had to reduce their hours, according to a survey from the Rosalynn Carter Institute for Caregivers. On top of a possible loss of income, many family caregivers are spending money to help their loved ones. Three-quarters of caregivers pay more than $7,200 in out-of-pocket expenses annually related to caregiving, according to a study by the AARP.

Caregivers who are struggling to make federal student loan payments can seek out help by contacting their loan servicer and exploring student loan repayment options and forgiveness programs to avoid missing payments and defaulting on their loans. Federal loan default occurs when you fail to make your scheduled loan payments for at least 270 days. If you go into default, you could suffer credit damage, wage garnishment, and have your tax refunds withheld.

For private student loans, you can contact your lender directly to see how they might be able to help. While private student loan forgiveness options are usually not available, there may be other types of loan modifications the lender might be willing to make.

Another option you may want to consider is to refinance your student loans. If you can qualify for more favorable rates and terms, that might make repayment easier.

Recommended: Student Debt Guide

Forgiveness Programs to Explore

Caregivers may be able to qualify for federal or state forgiveness programs that forgive or cancel the remaining balance of their student loans after a certain amount of time and other specific requirements are met. Here are some forgiveness programs to look into.

Public Service Loan Forgiveness (PSLF). PSLF forgives the remaining balance on your federal Direct loans if you’re employed full-time by the government or not-for-profit organization. To qualify, you need to repay your loans under an income-driven repayment plan or a 10-year standard repayment plan. You must make a total of 120 qualifying monthly payments.

In 2021, and again in 2023, a bill was introduced in Congress to make primary family caregivers for military veterans eligible for PSLF by expanding the definition of “public service job.” The bill is still working its way through Congress, but you may want to keep tabs on it if it applies to your caregiving situation.

Income-Driven Repayment (IDR). IDR offers a pathway to forgiveness. These plans base your monthly student loan payment amount on a percentage of your discretionary income and family size. If you repay your loans under an IDR plan, any remaining balance may be forgiven after 20 or 25 years.

State-specific forgiveness programs. A number of states offer student loan forgiveness programs, and yours may be one of them. For instance, your state may offer forgiveness programs to help certain individuals — particularly those in high-need locations and working in high-need occupations like health care and teaching — pay off some or all of their student loans. Some of these programs forgive both federal and private student loans. Check with your state department of education for more information about these opportunities.

Recommended: Student Loan Forgiveness Guide

Application Process and Documentation

To apply for Public Service Loan Forgiveness, you’ll need to submit a PSLF form by taking the following steps:

1. Make sure you qualify. To be eligible for PSLF, you must have federal Direct subsidized or unsubsidized loans, Direct PLUS loans, or Direct consolidated loans. You must also work full-time for a qualifying employer and be on an IDR plan.

2. Sign up for an IDR plan if you are not already on one. You can sign up at StudentAid.gov. You’ll need a Federal Student Aid (FSA) ID, as well as documentation such as financial information, tax forms, your mailing address, phone number, and email address.

3. Verify that your employer qualifies you for PSLF. The easiest way to do this is to use the PSLF Help Tool. This allows you to see if your employer is in the Department of Education’s database. If they aren’t, you can request that your employer’s eligibility be reviewed.

4. Send the PSLF form to your employer to sign and certify.

5. Sign and submit the fully completed PSLF form.

You’ll need to recertify your employment every year and any time you change jobs to continue to qualify for PSLF.

To apply for state-specific student loan forgiveness, follow the application steps outlined by each plan or program.

Alternatives to Forgiveness for Caregivers

Aside from caregiver student loan forgiveness, there are several other ways to get student loan debt relief. Here are three options to consider.

Deferment: In certain circumstances, including financial hardship, student loan deferment allows you to stop or reduce your payments on your federal student loans for up to three years if you qualify. If you have a subsidized federal loan, interest does not accrue during the deferment period. If you have an unsubsidized federal loan, interest will continue to accrue.

You need to apply for deferment. First, identify the type of deferment you’re requesting, such as economic hardship deferment. Next, fill out and submit a request form to your student loan servicer along with documentation to show that you’re eligible.

Private student loans may or may not offer deferment. Check with your lender.

Forbearance: Similar to deferment, student loan forbearance lets you temporarily stop or reduce your payments for your federal loans if you qualify. However, with forbearance, interest always accrues on your loans and forbearance periods are typically no longer than 12 months.

There are two types of federal forbearance, general and mandatory. To apply, you must identify which type you’re requesting. For family caregivers, general forbearance is likely the most applicable; you may be eligible for it due to financial difficulties, medical expenses, employment changes, or other reasons acceptable to your loan servicer. (Mandatory forbearance is for those serving in AmeriCorps or the National Guard, in a medical or dental internship or residency, or working as a teacher and qualifying for teacher loan forgiveness.) To apply for forbearance, fill out the form for the type of forbearance you’re requesting, and submit it along with documentation showing proof of your financial situation to your loan servicer.

Some private student loans may offer forbearance. Contact your lender to find out.

Student loan refinancing: Another option that might help some family caregivers with their student loans is refinancing. When you refinance, you take out a new loan from a private lender and use it to pay off your existing student loans. The new loan will have a new term and interest rate, which could help some borrowers if they can qualify for a lower rate. Keep in mind, however, that if you extend your loan term to help reduce your monthly payment, you may pay more interest over the life of the loan.

Another important consideration is that if you refinance federal loans, you will no longer qualify for federal benefits such as deferment, forbearance, or income-driven repayment programs. You’ll want to carefully weigh the pros and cons of refinancing.

The Takeaway

If you’re a family caregiver struggling to repay your student loans, there are options that may give you some relief. You might be eligible for Public Service Loan Forgiveness, a state-specific forgiveness program, or an income-driven repayment plan. You can also consider student loan deferment or forbearance to temporarily stop or reduce your payments, or refinance your student loans if you could qualify for more favorable rates or terms. Explore all the possibilities to determine which one can give you the help you need.

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

How long does it take to qualify for loan forgiveness?

It typically takes 10 years to qualify for Public Service Loan Forgiveness (PSLF) because you must make 120 qualifying monthly payments under an income-driven repayment (IDR) plan or the standard repayment plan while working for a qualified employer. At that point, your remaining balance is forgiven. If you instead pursue student loan forgiveness under an IDR plan, it takes 20 to 25 years to qualify for forgiveness, depending on the plan.

Can part-time caregivers qualify?

If you are a part-time caregiver who has federal Direct student loans and works full-time for a qualifying employer, you may be eligible for Public Service Loan Forgiveness. Under PSLF, working “full-time” means at least 30 hours a week or whatever your employer’s definition of a full-time job is. You could also pursue forgiveness under an IDR plan as a part-time caregiver. These plans base your monthly payment amount on a percentage of your discretionary income and family size.

What types of student loans are eligible for forgiveness?

Federal Direct student loans are eligible for Public Service Loan Forgiveness through income-driven repayment plans or the standard repayment plan. Various types of student loans —including, in some cases, private student loans — may be eligible for forgiveness through state forgiveness programs. Check with your state to find out.

About the author

Melissa Brock

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.


Photo credit: iStock/urbazon

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

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


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.

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.

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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Apr
16
2025
Student Loan Forbearance Extension: Can You Get It Extended?

Student Loan Forbearance Extension: Can You Get One?

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | Comments Off on Student Loan Forbearance Extension: Can You Get One?

The 2023 debt ceiling bill officially ended the three-year Covid-19 forbearance of federal student loans. As a result, student loan interest accrual resumed on Sept. 1, 2023, and payments in October 2023.

Although the pandemic-related pause that began in March 2020 is no longer in effect, the Biden administration has implemented a temporary “on-ramp” protection. Any federal student loan borrower who received the Covid-19 forbearance relief will be eligible for the 12-month on-ramp protection automatically. This means you’ll be protected from having your federal student loans reported as delinquent if you fail to make any required loan payments from October 2023 through September 2024.

Below we highlight how the on-ramp protection works and how federal student loan borrowers may also benefit from the Saving on a Valuable Education (SAVE) Plan.

What Is a Student Loan Forbearance Extension?

Congress authorized the initial Covid-19 student loan forbearance in March 2020 when it passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act suspended federal student loan payments and federal student loan interest accrual through September 30, 2020.

Two presidential administrations — starting with the Trump administration — extended the Covid-19 forbearance through executive action. The Biden administration issued several extensions to the Covid-19 forbearance up until the 2023 debt ceiling bill ended the practice.

Federal student loan borrowers facing financial difficulties may request a general forbearance, and some borrowers may qualify for a mandatory forbearance. A general or mandatory forbearance can temporarily suspend making loan payments during an approved period.

Federal student loan forbearances typically have 12-month durations, but you can request an extension if you meet the requirements. The cumulative limit on a general forbearance is three years.

Recommended: What Is Student Loan Forbearance?

Will Student Loan Forbearance Be Extended?

The passage of the 2023 debt ceiling bill guarantees the Covid-19 forbearance will not be extended. Federal student loan interest accrual resumed Sept. 1, 2023, and borrowers are now expected to make required payments when due.

So the Covid-19 student loan forbearance will not be extended, and the Biden administration’s one-time student loan forgiveness plan under the HEROES Act will not take effect. The Supreme Court rejected Biden’s broad debt relief plan in June 2023, finding the HEROES Act did not authorize the program.

Although the Covid-19 forbearance will not be extended under the HEROES Act, the Biden administration has implemented temporary “on-ramp” protections.

If you’re covered by the on-ramp, you’re protected from having your federal student loans reported as delinquent or placed in default from October 2023 through September 2024. But federal student loan interest will still accrue during the on-ramp, so failing to pay may increase your student debt burden.


💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

How to Extend or Pause Student Loan Payments in General

If you’re concerned about your ability to resume student loan payments beyond the temporary on-ramp protection, consider talking to your student loan servicer about:

•   General student loan forbearance

•   General student loan deferment

•   An income-driven repayment plan

•   Public Service Loan Forgiveness program

Income-Driven Repayment (IDR)

Based on your income and family size, an IDR plan can set your student loan payments at an affordable repayment amount per month for you. There are four plans, which last for a certain number of years and forgive any remaining balance after that:

•   Saving on a Valuable Education (SAVE) Plan

•   Pay As You Earn (PAYE) Plan

•   Income-Based Repayment Plan

•   Income-Contingent Repayment Plan

The SAVE Plan replaced the former REPAYE Plan in July 2023. If you were enrolled in the REPAYE Plan at that time, you’ve been automatically enrolled in the SAVE Plan.

The SAVE Plan can give you a $0 monthly payment if your income is within 225% of the federal poverty guideline (or less than $32,805 for a single borrower and $67,500 for a family of four in 2023).

Another benefit to the SAVE Plan is that your loan balance won’t grow over time if your monthly payment amount is less than the interest accruing.

Refinancing

It’s possible to consolidate both federal and private student loans into one new loan when you refinance your student loans with a private lender. If an applicant qualifies for a lower interest rate and a shorter term, it could reduce the amount of money paid in interest over the life of the loan. You may pay more interest over the life of the loan if you refinance with an extended term.


💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.

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Alternative Student Loan Financing Options

As you’re thinking about college funding, keep this in mind: You can choose from a number of college financing options, including scholarships, grants, and private student loans:

•   Scholarships. Scholarships are awarded based on merit or need, and students do not need to repay them. Students can get scholarships through businesses, colleges, and other organizations. There are online scholarship search tools that can help you find opportunities you might be eligible for.

•   Direct PLUS Loans. Direct PLUS Loans can help graduate or professional students pay for college. They can also help parents of dependent undergraduate students pay for their child’s college education. You might want to consider a parent PLUS loan refi to a lower rate if you’re repaying a PLUS loan.

•   Grants. Students can get grants from states, the federal government, a public body, and/or other organizations to pay for college.

•   Private student loans. Private student loans are given by commercial lenders, not the U.S. Department of Education. Unlike most federal student loans, you will undergo a credit check and possibly have to get a cosigner to sign on the loan with you.

The Takeaway

The Covid-19 forbearance is no longer in effect and won’t be extended under the HEROES Act. This means federal student loan borrowers are generally expected to make required loan payments when due. (A temporary on-ramp protection from October 2023 through September 2024 may protect you from typical delinquency impacts, but it won’t stop your interest from accruing.)

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

How do I know when my student loan payments will resume?

Federal student loan payments resumed in October 2023. You may receive billing statements from your federal loan servicer going forward.

What does student loan forbearance mean?

Forbearance means a borrower can temporarily suspend making loan payments during an approved period. There are two main types of forbearance for federal student loans: general and mandatory. This does not include the former Covid-19 forbearance, which ended as required under the bipartisan Fiscal Responsibility Act of 2023.

What are income-driven repayment plans?

An alternative to forbearance, income-driven repayment plans can set your monthly loan payments at an affordable amount for you. There are four plans. Each lasts a certain number of years and forgives any remaining balance after that. Beginning in July 2024, borrowers with original principal balances of less than $12,000 can have their remaining loan balance forgiven after 10 years of monthly qualifying payments under the SAVE Plan.

About the author

Melissa Brock

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.


Photo credit: iStock/Andrea Migliarini

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


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.

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).

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).

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

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