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If you need a loan for college, you may be wondering whether a private student loan is the right choice for you. And, once you’ve made the decision to take out a student loan, you might want to know the differences between federal vs. private student loans and the deadlines associated with each.

Keep reading to learn all that information and more, so you can determine how and when to apply for student loans.

What Are Private Student Loans?

Private student loans are student loans that are offered by private lenders like banks or credit unions to help people pay for the costs associated with college. Similar to applying for an auto loan or mortgage, private student loans require a loan application and approval from the lender.

Depending on how much money you need for school, you can borrow a set amount from a private lender. The amount they grant you ultimately depends on financial factors like your income, credit score, and the credit history of yourself and/or your cosigner (if applicable).

Unlike federal student loans with fixed interest rates and terms, the fees, repayment plans, and interest rates for private student loans are set by the individual lender. Because of this, it’s important to “shop around” with private lenders until you find rates and terms that meet your financial needs.

Private student loans can help pay for tuition, books and supplies, transportation, and fees. Using your student loan for housing or room and board expenses is also an option.

Recommended: Examining the Different Types of Student Loans

Should I Get a Student Loan?

The question of whether or not you should get a student loan is quite personal and depends on your unique financial situation. In a nation where, in 2023, the average federal student loan debt per borrower is $37,338 and the average private student loan debt per borrower is $54,921, taking out student loans is clearly a popular decision, but whether it’s the right decision is a different story.

For starters, when deciding whether it’s a good idea to take on college debt, it helps to ask whether a degree would be valued in your desired career.

In addition, there are a few other steps you can take to see if taking out a student loan will be worth it in the long run:

•   Look up the tuition, room, board, and other costs of attending your desired college(s).

•   Create a budget to determine whether you can afford those costs after factoring in financial alternatives like scholarships, savings, family help, etc.

•   Use a student loan payment calculator to assess how much you can expect to pay in student loan debt when you graduate.

•   Research salary levels in your desired field to see if the expected compensation will cover the cost of student loan payments over time.

•   Assess how comfortably you can live at your expected income level, factoring in payment estimates from the student loan calculator.

Once you’ve whittled down this information, you should have a better idea of whether taking out student loans is aligned with your long-term financial goals.

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

Other Steps to Take Before Securing Student Loans

Exploring ways to pay for school without taking on student loan debt is the first line of defense in college financial planning.

Since this isn’t always an option, you can minimize your reliance on loans by taking the following steps:

1.    Pull funds from a 529 college savings plan that you or your guardians may have set up for future college costs.

2.    Apply for scholarships and grants to offset the cost of tuition, room, board and other expenses.

3.    Fill out a Free Application for Federal Student Aid (FAFSA®) form to start the process of securing federal grants or federal student loans and use this money to cover as much of your tuition as possible.

4.    Opt for Federal Direct Subsidized Loans and Perkins Loans if you qualify.

5.    Offset your remaining college costs with unsubsidized federal loans.

6.    Opt out of PLUS loans if possible, as their interest rates and origination fees can be steep.

Finally, once you’ve exhausted the six options above, you can turn to a private student loan to cover any remaining costs associated with your college education.

When Is a Private Student Loan a Good Option?

There are some instances where a private student loan might be an option worth considering:

•   You’d like to cover the gap between your financial aid package or scholarship and your college expenses.

•   You don’t have specific financial need requirements, but still want help subsidizing the cost of college.

•   You’re looking to shop around with lenders to compare multiple loan options before selecting.

•   You have strong credit or a cosigner with a strong credit score who could potentially help you qualify for a more competitive interest rate.

•   You’re hoping to refinance your student loans in the future.

When Should You Apply for a Private Student Loan?

Generally speaking, it’s wise to consider federal student loans first. If you then decide a private student loan is the right option for you, you might be wondering when to apply for private loans.

You can apply for a private student loan directly from the desired lender’s website. It’s wise to apply after you’ve made your final school decision and once you know how much you need to borrow. This prevents you from having to submit multiple student loan applications for all the schools you’re considering.

Private vs Federal Student Loans

When it comes to private vs. federal student loans, there are a few features and specifics that can help you make your decision:

 

Federal Student Loans	Private Student Loans
Funded by the federal government. Terms and conditions are set by law.	Funded by private student loan lenders like banks, credit unions, state agencies, or online lenders. Terms and conditions are set by the lender.
Payments aren’t due until after you graduate, leave school, or change your enrollment status to less than half-time.	Payments can be due while you’re still in school, but deferment is sometimes possible.
The interest rate is fixed, based on the federal interest rate at the time, and often lower than private loans.	The interest rate can be fixed or variable and is based on your individual financial circumstances.
No credit check is required to qualify, except for Direct PLUS Parent Loans.	Established credit and/or a cosigner may be required to qualify.
Interest may be tax deductible.	Interest may be tax deductible.
Loans can be consolidated.	Loans cannot be consolidated, but can be refinanced.
You may be able to postpone or lower your payments.	You need to check with your lender to see if you can postpone or lower your payments.
There are several different repayment plans.	You need to check with your lender about repayment plans (if any).
There is no prepayment penalty fee.	There could be a prepayment penalty fee.
You may be eligible for loan forgiveness if you work in public service.	Many private lenders don’t offer loan forgiveness.

 

Deadlines for Federal Student Loans

To apply for federal student loans, students must fill out the FAFSA. There are three separate deadlines to consider:

1. The College or University Deadline

College deadlines for filling out the FAFSA will vary based on the school itself, but typically occur before the academic year begins. Each college will have its own FAFSA deadline, so visiting its financial aid website for this information is an important first step.

To fill out the 2023–24 FAFSA form itself, you can use your 2021 tax information to apply as early as October 1, 2022, and it closes June 30, 2024.

2. The State Deadline

Your home state sets the second deadline when it comes to FAFSA applications. The deadlines are listed on the FAFSA form itself, or you can visit the state deadline list on StudentAid.gov.

3. The Federal Deadline

The U.S. Department of Education sets the final deadline on the list. This entity is in charge of FAFSA and their website will feature the 2023-24 FAFSA application until June 30, 2024.

Federal student aid programs have a limited amount of funds available, so the sooner you can submit your application and avoid encroaching on the hard deadlines, the better.

The 2024-25 FAFSA application will be available in December 2023.

Recommended: FAFSA 101: How to Complete the FAFSA

Deadlines for Private Student Loans

When applying for student loans from a private lender, there isn’t typically a set deadline in place. Still, this doesn’t necessarily mean you want to wait until the last minute, since you’ll need plenty of time before tuition, housing, and other fees are due to secure the funds from your student loan.

Many private student loan lenders can approve your application in a few minutes or less, but it can sometimes take up to two weeks for full approval. That’s why it’s smart to keep your eyes on your school’s payment deadlines and ensure your funds will be disbursed on time.

What Type of Private Student Loan May Be Right for You?

At the end of the day, there are ways to find the right private student loan for your unique circumstances. All it takes is some shopping around.

Considering the following factors can help you determine which type of private student loan makes the most sense for your personal situation:

•   Interest rates and fees

•   Payment flexibility

•   Lender credibility

•   Ability to refinance or release a co-signer

•   Whether the lender sells their loans

•   Repayment benefits

•   If the lender is a preferred partner of your college or university of choice (this information is usually found on the school’s website)

Because the rates and terms on a private student loan are determined by the individual lender and are impacted based on the borrower’s personal financial history, finding a private student loan may require a bit of shopping around.

Looking for Private Student Loan Options?

If you’re looking for a private student loan lender who understands the value of your education and thinks no-fees is a normal part of the application process, consider a private student loan with SoFi.

You can check your rate online and select one of four flexible repayment options on a loan that fits your budget.

The Takeaway

There are several factors that determine whether you should get a student loan — from what you can afford after factoring in financial alternatives like scholarships, savings, family help, etc. to how comfortably you can live with your student loan payments after graduation.

Generally speaking, it’s wise to apply for federal student loans first and turn to private student loans once you’ve exhausted other alternatives. This is because private student loans are not required to follow the same rules as federal student loans, and may lack benefits like income-driven repayment plans or the option to apply for Public Service Loan Forgiveness.

Private student loans are offered by private lenders like banks or online lenders to help people pay for college. You can apply for a private student loan by shopping around and comparing interest rates, fees, repayment options, and other features on the lenders’ websites.

The deadlines for federal student loans are based on the college you plan to attend, the federal FAFSA deadline for the academic year you’re applying for, and your state’s FAFSA deadline. Private student loans do not have an application deadline, but it’s a good idea to apply well before tuition and other college expenses become due.

Find out more about using a private student loan from SoFi to help pay for college.

Photo credit: iStock/insta_photos

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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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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.

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.

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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Graduate school can help you pursue your academic and professional interests, expand your connections, improve your marketability, and increase your earnings. But it often comes with a high price tag.

If you’re thinking about investing in your future by attending graduate school, you may be wondering, does FAFSA cover graduate school?

In short, yes. Just like undergrads, graduate students can fill out the Free Application for Federal Student Aid (FAFSA) every year in order to qualify for federal grants, work-study, and federal student loans.

Read on to learn more about getting financial aid — and other types of funding — to help pay for graduate school.

Do You Have to Fill Out FAFSA for Graduate School?

While filling out the FAFSA is not required to attend graduate school, students who are interested in receiving federal student aid as graduate students will need to fill out and submit the form.

You may be familiar with the FAFSA from your years as an undergraduate student. The process of getting financial aid for graduate school is basically the same, with eligibility largely determined by financial need.

However, there is one notable difference: Graduate students are considered independent students for FAFSA purposes, so you aren’t required to provide any information about your parents’ finances. Another difference: For the 2024–25 FAFSA form, if you’re married, you’ll need to provide your spouse’s information.


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

Grad School Financial Aid Eligibility

To be eligible for financial aid in graduate school you must meet basic FAFSA requirements. These include being a U.S. citizen (or qualifying noncitizen) enrolled or accepted in an eligible degree or certificate program. If you have any criminal convictions, have previously defaulted on a student loan, or owe a Pell Grant overpayment, that could affect your eligibility for federal aid.

FAFSA doesn’t have a maximum income cutoff, so it’s worth applying even if you have a steady income. There is also no age cutoff for financial aid, so you can complete and submit the form whether you graduated college recently or many years ago.

Some financial aid is awarded on a first-come, first-served basis, so it’s generally a good idea to fill out the FAFSA as soon as possible after its release. Due to an overhaul (and simplification) of the form, the FAFSA for the 2024-25 academic year will be available in December 2023 —- a delay from the usual October 1. Be sure to submit your FAFSA form by the earliest financial aid deadline of the schools to which you are applying, which is typically early February.

Here’s a look at what type of financial aid you may be eligible for as a graduate student.

Grants

Your financial aid package for graduate school may include federal and state grants based on your field of study, interest, or type of school.

For example, if you’re studying education, you might be eligible for the Teacher Education Assistance for College and Higher Education, or TEACH Grant. The TEACH grant provides up to $4,000 a year to education students who will teach in a low-income school or high-needs field after graduation.

Graduate students can also qualify for federal Fulbright Grants and Iraq and Afghanistan Service Grants. However, grad students are generally not eligible for the Pell Grant or Federal Supplemental Educational Opportunity Grant (FSEOG) Grant, which are largely reserved for undergraduates.

You can learn about state-based grant opportunities by contacting the department of education for your state, as well as the state where the graduate school is located.

Many graduate schools also offer grants based on financial need or academic excellence. These grants generally don’t need to be repaid, although there may be specific stipulations, such as maintaining a certain GPA.

Recommended: Grants For College – Find Free Money for Students

Work-Study

You may be familiar with work-study programs from your time as an undergraduate student. Graduate students are also eligible for the Federal Work-Study Program, which provides part-time jobs to students who demonstrate financial need.

Work-study is available to both full- and part-time students, though your graduate school must participate in the Federal Work-Study Program. Your school’s financial aid office can give you more details about the work-study program and the types of jobs available to you. Your program may also offer assistantships or teaching roles to help you pay for school (more on that below).

Federal Student Loans

The federal student loans you can access in graduate school are slightly different from those you can take out in undergraduate school. For example, you cannot take advantage of Direct Subsidized Loans, which are loans in which the government pays the interest while you are in college and during the six month grace period after you graduate. Direct Subsidized Loans are only available to undergraduate students with demonstrated need.

Here’s a look at the two types of federal loans available to grad students.

Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need. And, unlike a Direct Subsidized Loan (which is need-based), the government does not pay the interest while you’re in school or for six months after graduation. Interest will accrue while you are attending grad school and get added to your loan balance.

The interest rate is higher on Direct Unsubsidized student loans for graduate students than it is for undergraduate students.

If you are a graduate or professional student, you can borrow up to $20,500 each year in Direct Unsubsidized Loans. The interest rate is fixed at 7.05% for loans first disbursed between July 1, 2023, and July 1, 2024.

Grad PLUS Loans

If you need to borrow more than the annual limit for Direct Unsubsidized Loans to pay for grad school, you can also access a Federal Grad PLUS loan, which is also called a Direct PLUS Loan.

These federal loans are exclusively for graduate/professional students and parents of dependent undergraduate/professional students. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.

Grad Plus Loans are the most costly type of federal loan. For loans disbursed between July 1, 2023, and July 1, 2024, the interest rate is a fixed 8.05%. You’ll also pay a one-time disbursement fee of 1.057%.

Grad Plus Loans come with higher borrowing limits than other types of federal loans. You can borrow up to the cost of attendance of your graduate school program minus other financial assistance you get.

To apply for a Grad PLUS Loan, you need to fill out the Direct PLUS Loan Application.

Tips on Filling Out FAFSA as a Grad Student

Filling out the FAFSA as a graduate student is similar to filling out the form as an undergrad. However, your dependency status will differ because you’re no longer considered a dependent student. As a result, you typically do not need to input your parents’ information onto the FAFSA. You’ll only need to supply information about your (and if, you’re married, your spouse’s) income and assets, the graduate schools you want to receive your FAFSA information, and then sign and submit your form.

When Will You Hear Back?

It typically takes the education department three to five days to process the FAFSA if you submitted electronically; seven to 10 days if you mailed in a paper form.

If you provided a valid email address, you’ll receive an email notification that includes a link to your electronic Student Aid Report (SAR) at fafsa.gov. You’ll get a paper SAR through postal mail if you didn’t provide a valid email address. You’ll want to review your SAR carefully to make sure it’s complete and accurate and correct/update information if necessary.

The graduate schools you apply to will then review your FAFSA information and other documents and send you a financial aid award letter that details the scholarships, grants, and federal student loans you are eligible to receive. You may receive your financial aid award not long after you receive your acceptance letter to the graduate school. However, every school is different, so it’s a good idea to ask the admission or financial aid office of your school for more information.

Average Disbursed Amount

The average graduate student loan debt balance (from graduate school alone) is $78,118, according to the Education Data Initiative.

The maximum amount you can borrow under the Federal Direct Unsubsidized Loan program for graduate school is $20,500 a year, with a maximum lifetime limit of $138,500 (including undergraduate loans).

In comparison, a Grad PLUS Loan allows you to borrow up to the cost of attendance, minus any other financial aid received.

FAFSA for Grad School vs Undergrad

Graduate school financial aid is similar to undergraduate financial aid, but there are a few key differences. Here’s a look at how the two compare.

	Graduate Student Financial Aid	Undergraduate Student Financial
FAFSA Status	Independant	Dependant (typically)
Use financial information for	Student (and, if applicable, spouse)	Student and parents
Federal loans eligible for	Unsubsidized Direct Loans and Grad Plus Loans	Unsubsidized and Subsidized Direct Loans
Interest rate for Federal Direct Unsubsidized loans	7.05%	5.50%
Eligible for work-study?	Yes	Yes
Pell and FSEOG grant eligible?	No	Yes

Alternatives to Federal Aid

Federal aid isn’t the only way to pay for graduate school. Here’s a look at some other sources of funding.

Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. Unike federal student loans for graduate students (which come with fixed interest rates), private student loans may have fixed or variable rates.

Interest rates are set by the lender, so it can pay to shop around to find the best deal on a private student loan for grad school. Generally borrowers with excellent credit qualify for the lowest rates.

Similar to Grad Plus loans, you can usually borrow up to the full cost of attendance from a private lender. However, Grad Plus Loans come with a disbursement fee, while private lenders generally don’t charge this fee. If you have excellent credit (or can recruit a cosigner who does), you could potentially pay less with a private graduate student loan than a Grad Plus Loan. Keep in mind, though, that private student loans don’t offer the same protections (like access to forgiveness programs and income-based repayment plans) that come with federal student loans.


💡 Quick Tip: Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

Grants and Scholarships

You’ll be eligible for federal, state, and institutional grants by filling out the FAFSA. However, there are also funding opportunities available outside this system. Many private organizations have created grants and scholarships to help graduates pursue an education in the fields they support.

Look for scholarships and grants from professional associations in your field. Your graduate school department or career department can often help you find scholarships based on your qualifications. There are also several scholarship websites to help you find money for graduate school, including Fastweb and Scholarships.com.

Fellowships and Assistantships

Graduate fellowships and assistantships can both help you pay for graduate school but they work in different ways.

A fellowship is like a scholarship that you can use for any costs you incur as a student. These programs are often available from professional organizations relating to your major. With a fellowship, you may perform research activities on campus or outside of your school.

An assistantship, on the other hand, is typically school-based and more likely to directly provide full or partial tuition waivers. Some assistantships also come with living stipends. An assistantship typically involves doing work on campus, usually related to your major. You might get a research job, which often entails assisting a tenured professor on an upcoming study, or you could secure a teaching job, which gives you the chance to serve as an assistant or professor at the school.

Employer Tuition Assistance

If you work for an employer that offers tuition assistance, your company may cover some or all of the costs of your graduate or professional education as long as you meet the program’s eligibility requirements.

You may even be able to access tuition assistance through a part-time job. Your human resources office will have details about tuition assistance, qualifications, and reimbursement procedures.

The Takeaway

Just like undergrads, grad students can qualify for financial aid to pay for school. Your grad school aid package might include grants, work-study, and federal loans.

As a grad student, you can take out more in federal loans than you could as an undergrad, which may make it easier to attend a more expensive school. It’s generally a good idea to tap lower-cost Direct Unsubsidized Loans before considering PLUS Loans.

Other sources of funding for grad school include: private grants, scholarships, fellowships, assistantships, 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.

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

FAQ

How much can FAFSA disburse for graduate school?

As a graduate student, you can borrow up to $20,500 in unsubsidized federal loans each year. Grad PLUS Loans are also an option, and allow students to borrow up to the cost of attendance for graduate school.

Graduate students may also qualify for grants (which don’t need to be repaid) and work-study by filling out the FAFSA.

Is it harder to qualify for financial aid as a graduate student?

Not necessarily. While there are fewer need-based aid options for graduate students, your university or graduate program might provide merit- or research-based assistance. In addition, many private and nonprofit organizations offer scholarships and grants for graduate students.

Do you need to make a new FAFSA account for graduate school?

No, you do not need to make a new FAFSA account for graduate school. If you created an FSA ID as an undergraduate, you can use the same ID to apply for financial aid for graduate school.

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Photo credit: iStock/sturti

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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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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Some students view summer as a time to rest and relax, while others see it as an opportunity to get ahead in their college coursework. Since many classes can be done at a community college, summer courses may also cost less than the classes you take during the fall and spring semesters.

If you’ve already sorted out your financing of the fall and spring semesters, you may wonder how you’ll cover the cost of a summer session. The good news is that the aid you get through the FAFSA can typically be used to pay for summer classes too. Here’s what you need to know.

When Can FAFSA Cover Summer Classes?

Filling out the Free Application for Federal Student Aid (FAFSA) gives you access to grants, federal student loans, and work-study funds. Whatever aid you qualify for can be used for any term — fall, spring, and/or summer — provided you’ll be enrolled at least half time.

However, you’ll have to reach out to your school’s financial aid to find out which FAFSA year applies to the summer session. For instance, your school may use the 2023-24 for summer 2024, or they may require the 2024-25 FAFSA.

The type of financial aid you can use to offset the cost of summer classes includes:

•  Grants This is a form of gift aid and generally does not need to be paid back. You may be eligible for federal, state, and school-specific grants.

•  Federal student loans These are fixed-interest-rate loans from the government. Students with financial need may qualify for subsidized student loans. This means the government covers your interest while you are in school and for six months after you graduate. Unsubsidized student loans are available to all students, regardless of need.

•  Work-study This federal program provides part-time work, typically on campus, to help students with financial need earn money to help cover college-related expenses.

If you’re thinking of using financial aid to pay for summer classes, keep in mind that there is a maximum amount of aid (including federal student loans) you can get each year, regardless of when you take your classes. You can refer to your financial aid letter (which you likely received before the fall session started) to see the maximum amounts you have been granted. These annual limits stretch over fall, spring, winter, and summer sessions.


💡 Quick Tip: Make no payments on SoFi private student loans for six months after graduation.

Filling Out FAFSA for Summer Aid

The FAFSA is generally released each year on October 1. However, the 2024-25 FAFSA is an exception. Due to an overhaul (and simplification) of the form, the 2024-25 FAFSA will be available in December 2023. Since some aid is awarded on a first-come, first-served basis, it’s a good idea to fill out the FAFSA soon after it’s released. This can potentially increase your chances of getting all the aid you qualify for.

If you already have a FAFSA on file for the previous fall/spring academic year, you may not need to file a new one for the summer session. However, as mentioned above, schools have varying rules on what academic year they belong in for financial aid purposes. Before submitting the FAFSA, contact your college’s financial aid office to see if you need to fill out a new FAFSA and which year you should select.

Filling out the FAFSA for summer aid is the same as filling out the FAFSA for any term. You’ll need to create an FSA ID and then complete and submit your form online at studentaid.gov. You can also print out and mail a paper form.

Alternatives to FAFSA

If you don’t qualify for financial aid or you used up the aid you were awarded during the fall and spring semesters, don’t stress. There are other ways to offset the cost of summer classes.

Summer Jobs

If work-study is not available, you might look for a part-time summer job either on or off-campus to help pay your summer tuition. Working during the summer can also give you valuable work experience and help you start building your resume.

Internships

A paid internship can be an ideal summer job for a college student. These positions often pay well and allow you to gain experience and connections that can help you find employment after you graduate. Your school’s career center may have leads on summer internships. You can also search job boards and tap your personal and professional network to find summer internships.

Summer Class Scholarships

Many organizations, companies, and schools offer scholarships (both need- and merit-based) to college students. Typically, there aren’t restrictions on what term students can use the scholarship for, so you can apply for scholarships and use the awards to pay for your summer classes. Private scholarship amounts tend to be small, but if you can cobble together several awards, it could make a significant dent in your summer tuition.

Your school’s financial aid office or career center may be able to help you find scholarships based on your qualifications. You can also use one of the many online scholarship search tools to find scholarships you may qualify for.

Summer Grant Programs

Some universities offer grants that are designed specifically for students looking to take classes during the summer. For instance, California State University in Fullerton offers two summer tuition grants.

Many states also offer college grants that can be used for the summer term. The Pennsylvania Higher Education Assistance Agency, for example, allows eligible students to receive a Pennsylvania State grant for the summer term.

It can be worth reaching out to your school’s financial aid office to find out what summer funding programs may be available. Also visit the department of education for your state to see if there are any summer-specific state grants you might qualify for. Typically, institutional and state grants are need-based.

Private Student Loans

If you’ve reached your annual limit for federal student loans and need more funding to cover the cost of summer classes, you might consider applying for a private student loan.

These loans are offered by banks, credit unions, and online lenders and typically come with higher lending limits than federal student loans. In fact, you can usually borrow up to the full cost of attendance from a private lender, minus any financial aid. Interest rates vary by lender, so it can be a good idea to shop around. Generally borrowers (or cosigners) with excellent credit qualify for the lowest rates.

Keep in mind, though, that private student loans don’t offer the same protections (like access to forgiveness programs and income-based repayment plans) that come with federal student loans.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Why Take Summer Classes?

Whether you choose to study at your current college or a local community college, summer classes offer a number of benefits.

You might opt to go to school in the summer to retake classes you struggled with in the past in order to boost your GPA. Or if you’re behind in your credits, you might use the summer term to catch up and make sure that you can graduate on time. You can also use a summer session to knock out core or elective course requirements and fast track your degree.

Taking summer classes can also lead to cost savings. Some schools offer reduced tuition for these classes. You also might be able to take classes at a local community college for a lower price and transfer those credits to your school.

Recommended: Can You Get a Student Loan for Summer Classes?

The Takeaway

FAFSA aid can typically be used for any college term — including the summer. Just keep in mind that there is an annual maximum you can take out in federal loans, which includes the summer semester. Grants also usually have annual limits.

Other sources of funding for summer classes include private scholarships, summer college grants, income from a part-time job or paid internship, 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.

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

FAQ

Do summer classes count as semesters for FAFSA?

Technically, yes. While there is no specific federal funding for summer classes, the aid you are eligible for can be applied to summer tuition. You can find out from your school’s financial aid office which academic year FAFSA will apply to summer classes.

Which year of FAFSA covers summer classes?

It depends on the college’s policy. For instance, your school might require you to fill out a 2023-24 form for the 2024 summer session or the 2024-25 form. Before submitting the FAFSA, you’ll want to contact your college’s financial aid office to see which FAFSA year you should select.

Is there a maximum amount that you can receive from FAFSA overall?

Yes. There are annual limits on how much you can receive in federal financial aid, which includes grants, loans, and work-study programs. The limit for each type of aid varies by school, year, and other factors. You’ll want to be careful to plan your expenses and financing strategies with these limits in mind.

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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. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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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Parent PLUS loan forgiveness provides financial relief to parents who borrowed money to cover the cost of their children’s college or career school. It isn’t always a quick fix, but there are certain federal and private programs that might offer the financial assistance needed to help them get on track.

Keep reading to learn more about what the available student loan forgiveness possibilities are for Parent PLUS loans.

Are Parent Plus Loans Eligible for Student Loan Forgiveness?

Parent PLUS loans are eligible for several of the same student loan forgiveness programs as federal student loans for students, including:

•   Borrower Defense Loan Discharge

•   Total and Permanent Disability (TPD) Discharge

•   Public Service Loan Forgiveness (PSLF)

That said, Parent PLUS loans generally have fewer repayment options. The Parent PLUS loans do not qualify for the SAVE program or other income-driven plans. And guidelines are strict for the few programs that parent loans are eligible for.

Refinancing is another option for Parent PLUS loan borrowers — applying for a new private student loan with an, ideally, lower interest rate. That said, some lenders offer less flexibility for repayment and the fine print can be lengthy, so there’s an inherent risk associated with refinancing Parent PLUS loans.

It’s worth noting that refinancing a PLUS loan will eliminate it from any federal repayment plans and benefits.


💡 Quick Tip: Some student loan refinance lenders offer no fees, saving borrowers money.

Parent Student Loan Forgiveness Program

Parents who are on the hook for student loan debt can also qualify for student loan forgiveness. A Parent PLUS loan may be eligible for Parent Student Loan Forgiveness through federal programs that include Income-Contingent Repayment and Public Service Loan Forgiveness. Other forgiveness options may also be available through the state.

Income-Contingent Repayment (ICR)

An Income-Contingent Repayment plan, or ICR plan, is the only income-driven repayment plan that’s available for Parent PLUS borrowers. In order to qualify, parent borrowers must first consolidate their loans into a Direct Consolidation Loan, then repay that loan under the ICR plan.

Bear in mind:

•   A Parent PLUS loan that’s included in a Direct Consolidation Loan could be eligible for Income-Contingent Repayment.

•   A Parent PLUS loan that’s included in the Federal Direct Loan Program or the Federal Family Education Loan Program (FFELP) is also eligible for ICR if it’s included in the Federal Direct Consolidation Loan.

The ICR plan is a repayment plan for Direct loans. Monthly payments are the lesser of (1) what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income, or (2) 20% of your discretionary income.

Typically, the IRS considers canceled debt a form of taxable income, but the American Rescue Plan Act of 2021 made all student loan forgiveness tax-free through 2025 on federal returns. Some states will tax student loan forgiveness amounts; check with your accountant to be sure.

Public Service Loan Forgiveness (PSLF)

Borrowers with Parent PLUS loans may be eligible for the Public Service Loan Forgiveness Program. In order to pursue that option, they must first consolidate the Parent PLUS loan into a Direct Consolidation Loan.

Then, after they’ve made 120 qualifying payments (10 years’ worth), borrowers become eligible for the PSLF. The parent borrower (not the student) must be employed full-time in a qualifying public service job. PSLF also has strict requirements such as certifying employment, so it’s important to follow instructions closely if pursuing this option.

Student Loan Forgiveness for Death of Parent

Federal student loans qualify for loan “discharge” when the borrower dies. In the case of Parent PLUS loans, they are also discharged if the student who received the borrowed funds dies.

In order to qualify for federal loan discharge due to death, borrowers must provide a copy of a death certificate to either the U.S. Department of Education or the loan servicer.

Some, but not all, private lenders discharge student loans after the student or loan holder dies.

Recommended: Can Student Loans Be Discharged?

State Parent PLUS Student Loan Forgiveness Programs

Many individual states offer some sort of student loan repayment assistance or student loan forgiveness programs for Parent PLUS loan borrowers.

For an overview of options available in different states, you can take a look at The College Investor’s State-by-State Guide to Student Loan Forgiveness . For information on student loan and aid available take a look at the SoFi guide on state-by-state student aid available for borrowers.

Disability

In the event of the borrower becoming totally and permanently disabled, a Parent PLUS loan may be discharged. To qualify for a Total and Permanent Disability (TPD) discharge , borrowers must complete and submit a TPD discharge application, as well as documentation showing that they meet the requirements for being considered totally and permanently disabled.

Note that in order to qualify for TPD, the parent borrower must be considered disabled. This type of forgiveness does not apply to Parent PLUS loans in the event that the student becomes disabled.

Bankruptcy

If a borrower can demonstrate undue financial hardship upon repaying the student loan, they might be able to discharge their Parent PLUS loan. Note: Having student loans discharged in bankruptcy is uncommon. Proving “undue hardship” varies depending on the court that’s granting it, but most rulings abide by the Brunner test, which requires the debtor to meet all three of these criteria in order to discharge the student loan:

•   Poverty. Maintaining a minimal standard of living for the borrower and their dependents is deemed impossible if they’re forced to repay their student loans.

•   Persistence. The borrower’s current financial situation will likely continue for the majority of the repayment period.

•   Good faith. The borrower has made a “good faith” effort to repay their student loans.

Closed School Discharge

For parent borrowers whose children attended a school that closed while they were enrolled or who withdrew from the school during a “lookback period” of 120 days before its closure, a Closed School Discharge is another available form of student loan forgiveness.

If your child’s school closes on or after July 1, 2023, and you meet the eligibility requirements for a closed school discharge of your loans obtained to attend the closed school, you will generally receive an automatic closed school discharge one year after the date the DOE establishes as the school’s official closure date. This discharge will be initiated by DOE, and you will be notified by your loan servicer.

Although this closed school loan discharge is granted automatically after one year has passed since the school’s closure, you can always apply for and receive a closed school discharge as soon as the school’s official closure date is confirmed by the U.S. Department of Education. If your child 1) attended a school that closed less than one year ago, 2) meet the eligibility requirements for a closed school discharge, and 3) want your loans discharged, contact your loan servicer about applying for a closed school discharge now instead of waiting for one year to receive an automatic closed school discharge.

Borrower Defense

Borrower Defense Loan Discharge is available to Parent PLUS borrowers whose children were misled by their college or university or whose college or university engaged in certain forms of misconduct or violation of state laws.

To make a case for borrower defense, the Parent PLUS borrower must be able to demonstrate that their school violated a state law directly related to their federal student loan.


💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

Alternatives to Parent Plus Student Loan Forgiveness

When it comes to Parent PLUS loans, there are a few ways to get out of student loan debt legally, including the scenarios outlined below.

Refinance Parent Plus Loans

Refinancing a Parent PLUS loan is another option that could provide some financial relief. In doing so, you’ll lose the government benefits associated with your federal loans, as briefly mentioned above, such as:

•   Forbearance options or options to defer your student loans

•   Choice of repayment options

•   Student loan forgiveness

Refinancing a Parent PLUS loan into the dependent’s name is another option, which some borrowers opt for once their child has graduated and started working. Not all loan servicers are willing to offer this type of refinancing option, though.

Transfer Parent Plus Student Loan to Student

Transferring Parent PLUS loans to a student can be complicated. There isn’t a federal loan program available that will conduct this exchange, and, as mentioned above, some private lenders won’t offer this option.

Some private lenders, like SoFi, allow dependents to take out a refinanced student loan and use it to pay off the PLUS loan of their parent.

Explore Private Student Loan Options for Parents

Banks, credit unions, state loan agencies and other lenders typically offer private student loans for parents who want to help their children pay for college and refinancing options for parents and students.

Refinancing options will vary by lenders and some may be willing to refinance a Parent PLUS loan into a private refinanced loan in the student’s name. In addition to competitive interest rates and member benefits, SoFi does allow students to take over their parent’s loan during the refinancing process. Interest rates and terms may vary based on individual criteria such as income, credit score, and history.

The Takeaway

Parent PLUS Loan forgiveness offers financial relief to parents who borrowed money to help their child pay for college. To receive federal relief for Parent PLUS loans, parent borrowers can enroll in an Income-Contingent Repayment plan, pursue Public Service Loan Forgiveness, transfer their student loan to another student, take advantage of a state Parent PLUS student loan forgiveness program, or opt for private student loan assistance 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.

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SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

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.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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

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.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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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