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

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

Eligibility Requirements

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

Academic, Financial, and Demographic Criteria

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

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

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

Recommended: Balancing Being a Student Athlete & Academics in College

How to Find Minority Scholarships

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

Resources for Locating Minority-Focused Awards

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

Helpful resources include:

•   University financial aid offices and multicultural resource centers

•   Scholarship search engines that filter by demographic criteria

•   Professional associations offering field-specific awards for minority students

•   Community-based organizations and local foundations

•   Government-sponsored directories of state and national programs

Using Scholarship Search Engines Effectively

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

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

General Scholarships for Minority Students

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

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

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

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

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

Scholarships for Specific Minority Groups

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

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

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

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

Scholarships for African American Students

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

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

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

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

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

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

Scholarships for Hispanic/Latino Students

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

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

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

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

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

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

Scholarships for Native American Students

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

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

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

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

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

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

Scholarships for Native Hawaiian Students

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

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

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

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

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

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

Scholarships for Asian American Students

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

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

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

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

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

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

Scholarships for Pacific Islander Students

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

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

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

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

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

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

Scholarships for Middle Eastern and North African (MENA) Students

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

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

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

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

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

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

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

Tips for Applying

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

Tailor Your Personal Statement

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

Request Letters of Recommendation Early

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

Organize Deadlines and Materials

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

The Takeaway

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

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

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

FAQ

Are there scholarships for multi-racial students?

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

Do minority scholarships consider financial need?

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

What documents are required for minority scholarships?

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

Are there scholarships for undocumented minority students?

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

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

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

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Photo credit: iStock/Maca and Naca

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

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.

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

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

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

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

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

Completing the FAFSA for the 2026-2027 Academic Year

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

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

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

Documents You’ll Need to Fill Out the FAFSA

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

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

•  Your Social Security Number

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

•  Federal income tax returns

•  Records of child support received

•  Current balances of cash, savings, and checking accounts

•  Bank statements and records of investments (if applicable)

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

•  Records of untaxed income (if applicable)

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

9 Steps to Filling Out the FAFSA

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

1. Create a StudentAid.gov Account

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

2. Start a New FAFSA Form

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

3. Enter Your Personal Information

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

4. Provide Personal Circumstances

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

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

5. Complete the Financial Information Section

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

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

6. Provide List of Colleges

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

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

Recommended: College Search Tool

7. Invite Parent Contributors (If Required)

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

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

8. Review and Submit your FAFSA

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

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

9. Review Your Submission Summary

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

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

What’s Different About the 2026-27 FAFSA

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

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

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

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

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

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

The Takeaway

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

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

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

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

FAQ

What is the #1 most common FAFSA mistake?

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

Are parents or students supposed to fill out FAFSA?

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

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

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

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

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

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

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Photo credit: iStock/Vladimir Sukhachev

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 Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.

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

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

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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Sometimes student loan debt can start to feel like it’s slowing you down. Maybe the interest rate is too high, you’re not happy with your loan terms, or you’re frustrated with the lender’s customer service. If so, you have the right to look for a new lender and transfer your debt to a different company.

However, you can’t simply ask a new lender to take on your debt with the same terms. To transfer your student loan, you generally need to take out a new loan with a new lender or servicer. The process of switching will be different depending on whether your student loans are private or federal, and it may involve consolidating the loan or refinancing.

If you’re thinking about a loan transfer, keep in mind that there’s no guarantee you’ll end up in a more favorable situation just by switching lenders. Here’s what you need to know about student loan transfers.

How Do I Transfer Student Loans to Another Private Lender?

If you have private student loans, the main way to transfer your debt to another lender is to refinance your loans. This involves taking out a new loan with a different lender and using it to pay off your current student loans. Moving forward, you only make payments on your new loan to your new lender.

If you have multiple private student loans, refinancing can simplify repayment by giving you only one monthly payment to manage. And, if your financial picture has improved since you took out your original private student loans, you may be able to qualify for a lower interest rate. Another perk of refinancing is the ability to lengthen your repayment timeline to reduce your monthly payment amount. Keep in mind, though, that a longer repayment period will generally end up costing you more in the long run.

You’ll need to meet certain criteria to be eligible for private student loan transfer via student loan refinancing. Most lenders have a minimum income threshold as well as a minimum credit score (often in the upper 600s). If you don’t meet the income or credit requirements, you may be able to qualify by adding a cosigner.

Many lenders offer prequalification, which lets you see what type of rates and terms you may be able to qualify for without impacting your credit score. To find the loan with the best rate, it can be a good idea to shop around and compare lenders through prequalifying. Once you find a lender you want to work with, you’ll need to officially apply for the student loan refinance.

Can I Transfer My Sallie Mae Loans to Another Lender?

Currently, Sallie Mae only offers private student loans. Prior to 2014, however, the lender serviced federal student loans. If you want to refinance a Sallie Mae loan you took out before 2014, you’ll need to check whether it’s federal or private before moving forward.

If you took out a Sallie Mae loan after 2014, it’s a private student loan, and you can refinance the loan with another private lender. This might be a good idea if you can qualify for a lower interest rate.

What’s the Difference Between a Lender and a Loan Servicer?

While the terms lender and loan servicer are often used interchangeably, they are not the same thing. Here’s a look at how they differ.

Student Loan Lender

A lender is an institution or company that originates and funds the student loan. In other words, they’re the one lending you the money. For example, if you apply for a federal student loan, the federal government is your lender. If you apply for a private student loan, you can choose between a number of private lenders.

A Student Loan Servicer

A federal student loan servicer is the middleman between you and the federal government (the lender). Servicers handle your student loan billing and payments, and they keep track of whether you pay your loans on time. They will help you if you’re having trouble with your repayment plan or need to change your address or other personal information.

You do not get to pick your servicer. During the course of your federal student loan, your servicer might change a few times. For example, if you had a loan with Great Lakes, it was likely transferred to Nelnet some time between March 2022 and June 2023. You’ll typically get notified of a student loan transfer two two weeks prior to your transfer date.

If you have a federal student loan and you’re not sure who your servicer is, you can log in to your account on StudentAid.gov to find out.

Can I Change My Student Loan Servicer?

You can’t change your federal student loan servicer directly. However, if you’re willing to do some legwork, there are two main ways to move your federal student debt to a new servicer or lender.

If you want to keep your federal loan status but switch to a different loan servicer, you can transfer your loans by consolidating them into a Direct Consolidation Loan. If your main objective is to save on interest, you may want to look into refinancing your student loans with a private lender. Read below to learn more about each scenario.

What About Consolidating My Student Loans?

One way to switch loan servicers is to consolidate your federal student loan(s). This allows you to transfer the debt to a different servicer but keep your federal student loan status, since the lender will still be the federal government.

The consolidation process lets you combine several federal student loans into a single, easier-to-manage Direct Consolidation Loan. While it does not reduce your interest rate, it can lower your payment by extending the term. The downside is that the extended term will mean you pay more in interest over time.

Since not all federal loans have the same interest rate, the interest rate on a new Direct Consolidation Loan will be a weighted average based on your current loan amounts and interest rates. Any unpaid interest is added to your principal balance. The combined amount will be your new loan’s principal balance. You’ll then pay interest on the new principal balance.

Consolidation can be a good option if you are unhappy with your servicer or have several servicers and want to simplify your student debt by having only one payment.

If you have Federal Family Education Program or Parent PLUS loans, you need to consolidate to be eligible for income-driven repayment, public service loan forgiveness, and other relief programs.

You can complete a consolidation loan application at StudentAid.gov.

What About Student Loan Refinancing?

Another way to change your federal student loan servicer is to refinance your federal student loans with a private lender. If you also have private student loans, you can refinance them together with federal loans, giving you a single loan payment each month.

Generally, refinancing federal student loans may make sense if you can qualify for a lower interest rate. If you have higher-interest federal student loans, such as graduate PLUS loans or Direct Unsubsidized Loans, you may be able to get a lower rate by refinancing. To qualify for the best rates on a private student refinance, you generally need to have strong financials (or can recruit a cosigner who does).

It’s important to note that refinancing federal student loans with a private lender means losing federal protections, such as income-driven repayment plans, federal deferment and forbearance programs, and loan forgiveness options like Public Service Loan Forgiveness (PSLF).

If you’re interested in refinancing your federal loans, it’s a good idea to review offers from multiple lenders to find the best deal. Many private lenders will allow you to prequalify via a soft credit check so you can see your likely new interest rate without negatively impacting your credit score.

What About Transferring My Student Loan Balance to a Credit Card?

You generally can’t pay federal student loans with a credit card. If you have private loans, however, another option for student loan transfer is to move the balance onto a credit card and pay your monthly bills there. Some credit card issuers allow student transfers, but not all.

Generally speaking, this tactic only makes sense if you can qualify for a card with a 0% introductory rate and can pay off the entire balance before that promotional period expires (often between 12 and 21 months). Otherwise, you could be left paying even more in interest than you would with the original loan.

To see if you can manage this repayment schedule, simply divide your loan balance by the number of months you would need to pay it off before interest applies. Also check to make sure the credit card offers a high enough credit limit to accommodate your loan, and find out if there are any transfer fees.

If you decide it’s a good deal and are confident you can make it work, you would apply for the credit card and, once approved, give your credit card account details to your loan servicer. Your credit card issuer would then pay off your private student loan debt and move the balance to your credit card account. Moving forward, you only make payments to the credit card issuer.

Is It Possible to Transfer Student Loans From Parent to Student?

The federal government does not offer a way to transfer Parent PLUS loans to the child. However, if you’re looking to have your Parent PLUS loans transferred to your child, refinancing the loans with a private lender allows you to do that.

To make this type of loan transfer, you’ll first need to identify Parent PLUS refinance lenders that allow loan transfers. After that, your child may want to prequalify with a few of these lenders to see where they can get the best rate.

If your child meets the lender’s qualifications on their own, you can fully transfer the loan to them. If they don’t, you can serve as a cosigner on the refinanced loan and work with them to meet the lender’s cosigner release requirements. Many lenders allow cosigner release after a set number of successful payments.

The Takeaway

If you’re interested in transferring your student loans to a new servicer or lender, you have some options. If you have federal student loans, you can consolidate your loans to get a different servicer. If you have federal, private, or a mix of both types of student loans, another option for loan transfer is to refinance your loans with a private lender.

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 happens if my student loans are transferred to a new servicer?

If your federal student loans are transferred to a new loan servicer, you will be notified at least two weeks in advance and provided with the new servicer’s name and contact information, according to the Education Department. The new servicer will take over the loan, and they should reach out to you when the loan transfer is complete. At that point, they will handle the billing, payments, and customer service for your student loans.

Can I stop my student loans from being transferred?

Generally, you cannot stop your federal loans from being transferred to a new loan servicer. Federal loans are owned by the Education Department, which assigns them to a servicer. If the contract with that servicer ends, your loans will be transferred to a new loan servicer.

Can a student loan transfer lower my payments?

Transferring your student loans might lower your monthly payments if you refinance the loans and qualify for a lower interest rate. You could also lower your payments by extending the payment term through refinancing — or with a federal Direct Consolidation Loan — but a longer loan term will cost you more in interest over the life of the loan. Be aware that refinancing federal student loans into private loans makes them ineligible for federal benefits like income-driven repayment and forgiveness.

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

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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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