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If you get paperless mortgage statements or have autopay set up on your home loan, or even if you get statements in the mail, it might be easy to miss important information.

By paying close attention to exactly what’s included in your mortgage statements, you’ll avoid unpleasant surprises.

What Is a Mortgage Statement?

You probably became well versed on mortgage basics during the homebuying process. And you likely did the hard work of using a home mortgage calculator, qualifying for a mortgage, and getting that loan.

Now comes the mortgage statement, a document that comes from your home mortgage loan servicer. It typically is sent every month and includes how much you owe, the due date, the interest rate, and any fees and charges.

In the past, the information that was included and the format of a mortgage statement ran the gamut among lenders. Thanks to the Dodd-Frank Act, enacted in 2010, mortgage servicers must include specific loan information and follow a uniform model for mortgage statements.

Statements also include information on any late payments, how much you’ll need to pay to bring your balance into the black, and any late fees you’re dinged with. You can also find customer service information on your mortgage statement.

What Does a Mortgage Statement Look Like?

A mortgage statement has similar elements as a credit card or personal loan statement. As a picture is worth a thousand words, here’s a sample mortgage statement, courtesy of the Consumer Financial Protection Bureau:

What Is on a Mortgage Statement?

Deciphering what’s on a mortgage statement can help you know what to look for, how much you owe in a given month, how much you’re paying toward interest and principal, and how much you’ve paid year to date.

Let’s dig into all the different parts of a home loan statement.

Amount Due

This usually can be found at the top of your mortgage statement and is how much you owe for that month. Besides the amount, you’ll find the due date and, usually, the late fee you’ll get hit with should you be late on payment.

Explanation of Amount Due

This section breaks down why you owe what you owe. You’ll find the principal amount, the interest amount, escrow for taxes and insurance, and any fees charged. All of those will be tallied for a total of what you’ll owe that month.

Past Payment Breakdown

Below the section that explains the amount due, you’ll find a breakdown of your past payment: the date the payment was made, the amount, and a short description that may include late fees or penalties and transaction history.

Contact Information

This is typically located on the top left corner of the mortgage statement and contains your mortgage loan servicer address, email, and phone number should you need to speak to a customer service representative. Note that like student loan servicers, a mortgage loan servicer might be different from your lender.

Your mortgage loan servicer processes payments, answers questions, and keeps tabs on your loan payments, and how much has been paid on principal and interest.

You probably know what escrow is. If you have an escrow account, your mortgage loan servicer is tasked with managing the account.

Account Information

Your account information includes your account number, name, and address.

Delinquency Information

If you’re late on a mortgage payment, within 45 days you’ll receive a notice of delinquency, which might be included on your mortgage statement or be a separate document. You’ll find the date you fell delinquent, your account history, and the balance due to bring you back into good standing.

There might be other information such as costs and risks should you remain delinquent. There also might be options to avoid foreclosure. One possible tactic is mortgage forbearance, when a lender agrees to stop or reduce payments for a short time.

Recommended: Refinance Your Mortgage and Save

Understanding the Details

Your mortgage statement includes many details, all to help you understand what you’re paying in interest, the fees involved, and what your principal and interest amounts are. It’s important to look at everything to make sure you understand what information is included. If you have trouble deciphering the information, call your mortgage servicer listed on the document.

If you have an adjustable-rate mortgage, the mortgage statement also might include information about when that interest rate might change.

Important Features to Know

Besides the main parts of a mortgage statement, here are a few other key elements of a mortgage statement.

Delinquency Notice

As mentioned, you’ll receive a delinquency notice within 45 days should you fall behind on payments. Besides how much you owe to get back in good standing, the delinquency notice might also include your account history, recent transactions, and options to avoid foreclosure.

Escrow Balance

If you have an escrow account for your mortgage, the balance will show how much you owe in homeowners insurance and property taxes.

Note that this is different from how much money you have in your escrow account and how much money is collected, which is typically included in your annual escrow statement.

If you don’t have an escrow account, your taxes and homeowners insurance owed will usually be separate lines.

Recommended: Mortgage Calculator with Taxes and Insurance

Using Your Mortgage Statement

Now that we’ve covered all the elements of a mortgage statement, let’s go over how to use your mortgage statement and make the most of it.

Making Sure Everything Is in Order

Comb through your mortgage statement and make sure everything is accurate and up to date. Inaccurate information can lead to overpaying, potentially falling behind on payments, and headaches.

Keeping Annual Mortgage Statements

While you might not need to hold on to your monthly mortgage statements for too long, make sure you have access to your annual mortgage statements for a longer period of time. In case you run into an IRS audit, you’ll be required to provide documentation for the past three years.

Making Your Payment

There are a handful of ways you can make payments on your mortgage.

Online. This is probably the most common and simplest way to submit a mortgage payment. It’s free, and once you set up an account online and link a bank account to draw payments from, you’re set. You can also set up autopay, which will ensure that you make on-time payments. In some cases, you might be able to get a discount for setting up auto-debit.

Coupon book. A mortgage servicer might send you a coupon book to use to make payments instead of sending mortgage statements. A coupon book has payment slips to include with payments. The slips offer limited information.

Check in the mail. As with any other bill, you can write a check and drop it in the mail. However, sending a payment by snail mail might mean that your payment doesn’t arrive on time. If you are going this route, send payments early and consider sending them via certified mail.

How Long Should You Keep Mortgage Statements and Documents?

Just as you’d want to hold on to billing statements for other expenses, you’ll want to keep your mortgage statements in case you find inaccuracies down the line. Plus, the statements come in handy for tax purposes and for your personal accounting.

So how long should you keep your mortgage statements? Provided you can find your statements online by logging in to your account, you don’t need to hold on to paper statements for long. In fact, you can probably get rid of paper copies if you have access to them online. It might be a good idea to download the documents to your computer.

Other documents, such as your deed, deed of trust, promissory note, purchase contract, seller disclosures, and home inspection report, you should keep as long as you own the home.

Consider holding on to annual mortgage statements for several years, and in a safe place. It’s a good idea to store them on your computer and have hard copies on hand.

The Takeaway

It’s easy to gloss over mortgage statements, but not knowing what’s in them every month and not noticing any changes can result in costly mistakes. It’s also eye-opening to see how much of a payment goes to principal and how much to interest. Having that information at hand can also be helpful if you are considering a mortgage refinance.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

How do I get my mortgage statement?

You should receive a statement monthly, either in the mail or via an alert from your mortgage servicer saying the bill is due. If you don’t receive a statement and can’t access it online, contact your lender promptly.

What is a mortgage servicer?

A mortgage servicer is a company that manages home loans. They send your statement and collect and process your payment every month, as well as provide customer support. A mortgage servicer may be different from your lender, which is the institution that approved your application and loaned you the funds to buy your property.

Photo credit: iStock/Tijana Simic

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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.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

SOHL-Q424-118

A black credit card is a financial product extending a line of credit to wealthy, high-spending consumers. Colloquial references to a black credit card typically refer to the American Express Centurion Card that launched in 1999. It quickly developed a reputation for being more than a credit card — rather, it became a status symbol of ultra wealth and almost limitless spending power.

Here’s a look at what a black credit card is in detail, how to get one, and the card’s benefits and drawbacks.

What Is a Black Credit Card?

A black credit card is an ultra-luxury private banking credit card product that’s designed to support the credit needs of the world’s wealthiest individuals, which can include A-list celebrities, professional athletes, and multi-millionaires. These are individuals who likely spend six figures a year using their credit card.

Although the black credit card meaning was originally derived from the AmEx Centurion Card, it now includes other luxury cards that have since come to the market. The list of exclusive card products include the Dubai First Royale Mastercard and the J.P. Mortgage Reserve Card.

Although the Mastercard Black Card might have the phrase “black card” in its name, it’s more accessible and arguably not in the same caliber as the aforementioned cards. That’s because consumers can submit an application online for this card without first being invited, which is more in line with typical credit card rules.

How Black Credit Cards Work

Unlike other consumer credit cards, the most exclusive black credit cards aren’t available for online applications. Card issuers publish very limited details — if any at all — about how to apply for the card or what it takes to receive an invitation. All of the elusiveness can enhance the allure of black cards.

Aside from their exclusiveness, black cards are generally known for having no credit limit, allowing members to spend freely. However, credit card issuers have already determined who they feel is financially capable of wielding the black card’s limitless buying power.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

Requirements for Getting a Black Credit Card

Specific black credit card requirements and thresholds vary between black card products. However, they generally include the following factors:

•   Minimum annual spending

•   Income and/or net worth

•   Creditworthiness

If you believe that you meet the criteria for a black credit card, you can reach out to the card issuer directly to see if you’re eligible. American Express, for instance, may offer existing members an online form for its Centurion Card for those who want to request consideration.

Worth noting: The Centurion Card is currently said to have a one-time $10,000 initiation fee and an annual fee of $5,000 thereafter.

Recommended: The History of Credit Cards

What Kinds of Perks Do Black Credit Cards Offer?

Whether you’re still learning how credit cards work or are experienced with credit, you likely know that different cards offer varying benefits, including rewards, travel and shopping credits, and more. The perks of a black credit card also differ depending on the type of black card.

For example, the AmEx Centurion Card, offers the following black card benefits:

•   VIP airport lounges. Access to AmEx’s Global Lounge Collection, including the coveted The Centurion Lounge.

•   Travel accommodation enhancements. Upgraded bookings and credits through AmEx’s Fine Hotels and Resorts program, with 900 hand-selected, iconic properties, and elite status with additional hotel programs.

•   Airline loyalty status. Complimentary top-tier status through airline partner loyalty programs.

•   Unique experiences. Access to one-of-a-kind travel experiences around the world.

•   Travel inconvenience credit. Up to a $2,000 credit per traveler for carrier-related inconveniences, like delays, and up to $10,000 for canceled trips.

•   Travel insurance. Up to $100,000 in travel medical assistance, and up to $1 million in travel accident insurance.

•   Rental car insurance. Up to $75,000 in car rental loss and damage insurance.

•   Saks Fifth Avenue credit. Quarterly $250 shopping credit, up to $1,000 per year.

•   Equinox fitness club membership. Access to clubs in multiple countries.

•   Additional buying protection. Purchase protection, return protection, and extended warranty for goods purchased on the card.

•   Personalized support. Access to personal shoppers and 24/7 personal concierge service.

As noted above, fees, benefits, fees, and spending requirements will vary among different types of credit cards, including those that fall into the ultra-luxury category.

Recommended: What Is a Charge Card?

Pros and Cons of Using a Black Card

As a card that’s not intended for the masses, the card’s pros and cons highly depend on which side of the eligibility spectrum you fall under. Here’s a closer look at black credit card benefits and drawbacks:

Is a Black Credit Card Worth It?

With a reputation of having excessively high annual fees and high minimum spending criteria, a black card can carry a high price tag. It’s important to consider that you can afford this kind of credit card — that is, assuming you’ve received an invitation in the first place.

Weigh the black card benefits, and consider if you’d actually be using a credit cardin such a way that it would be worth it for your needs.

Recommended: When Are Credit Card Payments Due?

The Takeaway

Black cards are typically reserved for wealthy customers who have demonstrated the ability to spend hundreds of thousands on a credit card and repay that amount with ease. If you’re an everyday consumer or it’s your first time getting a credit card, a pricey black card probably isn’t a practical credit card solution.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What does it mean to have a black credit card?

Being invited as a black card member means that you’ve met the card issuer’s underwriting criteria in terms of having a high income, high net worth, high spending activity, and more. It’s perceived as being a card that’s only accessible to ultra-wealthy individuals.

How much does a black credit card cost?

Black credit card fees vary between card products but often cost hundreds to thousands of dollars in annual fees each month. The AmEx Centurion Card, for example, has a $10,000 initiation fee and a $5,000 annual membership fee thereafter.

Are black credit cards actually black?

Generally, black credit cards are designed with a black color scheme. However, some of these cards that fall into the exclusive black card category aren’t black. For example, the J.P. Morgan Reserve card is made of brass and palladium and has a silver metal finish.

What is the difference between a black card and a platinum card?

The AmEx Platinum Card is more accessible to consumers than the AmEx Centurion Card, also dubbed the black credit card. Members who want to apply for a Platinum Card can do so on their own online, while the black card is offered by invitation only. The requirements and annual membership fees of both cards also vastly differ, with the black category charging higher fees and having higher spending requirements as well as more robust perks.

Photo credit: iStock/Lemon_tm

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.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

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.

SOCC-Q424-019

If you are a U.S. citizen but your parents are undocumented, you might wonder if their immigration status prevents you from submitting a Free Application for Federal Student Aid (FAFSA) form. The good news is that your parents’ immigration status does not impact your ability to submit a FAFSA or your eligibility for federal student aid. In fact, if you meet certain FAFSA requirements, you may qualify for college financial aid, despite having undocumented parents.

Dependent students must include information for at least one parent on the FAFSA. If your parent is a noncitizen, there are certain steps you can take to successfully complete your FAFSA. Read on to learn more about federal aid eligibility, and what to put on the FAFSA if your parents are undocumented.

Understanding FAFSA and Immigration Status

The FAFSA form is used by your school and other entities to determine whether you qualify for different sources of financial aid, including federal student aid, state-based aid, and potentially, aid from your college. Private student loans do not require you to fill out the FAFSA.

Because FAFSA delays for the 2024-2025 school year complicated the FAFSA process for many students and families, it’s wise to learn how to fill out a FAFSA with undocumented parents now so you’ll be ready when the time comes. Normally available in October, the form for 2025-2026 is currently expected to launch by December 1, 2024.

Your parent’s citizenship status, and whether they’re in the U.S. legally or illegally, has no bearing on your eligibility for federal aid. Instead, as a student applicant, you must satisfy certain FAFSA requirements for federal student aid.

Eligibility for Federal Student Aid

How college financial aid works is that to qualify for federal aid you will need to fulfill the following:

•   Provide proof of academic qualification. You must have a high school diploma, General Education Development (GED) certificate, or an equivalent academic credential to qualify for higher education or career school.

•   Be a U.S. citizen or eligible noncitizen. Eligible noncitizens include individuals with U.S. national status, those who are legal permanent residents, and students with a Citizenship and Immigration Services Arrival-Departure Record with a qualifying designation.

•   Have a Social Security number. Students filling out a FAFSA must have a valid Social Security number (SSN) to create a StudentAid.gov account and complete the form. Undocumented students who don’t have a Social Security number won’t be able to submit and sign a FAFSA, and they are ineligible for federal financial aid. Deferred Action for Childhood Arrivals (DACA) students who have been issued an SSN can complete a FAFSA form, but DACA students do not qualify for federal aid.

•   Meet enrollment criteria. The student must be accepted or enrolled in an eligible degree or certificate program at a school.

•   Demonstrate financial need. This applies to need-based federal student aid like the federal Pell Grant Program.

•   Consent to a federal tax return transfer. You must agree to have your federal tax return data transferred from the IRS into your online FAFSA form.

•   Sign and certify the certification statement on your FAFSA. Your signature is acknowledgment that you don’t owe the Department of Education money from past aid, like defaulting on a federal student loan or a grant that needs repayment, and that you’ll use the federal aid for educational purposes.

Recommended: Can DACA Recipients Apply for Student Loans?

Rights and Protections for Students

Whether you’re a student who’s a U.S. citizen with undocumented parents or an eligible noncitizen with parents who are undocumented, you have certain protections by law.

The DACA Program temporarily protects eligible students, called “Dreamers,” who arrived in the U.S. when they were children. The program provides deferred action from deportation on a renewable two-year basis so that Dreamers can follow their desired educational and professional pursuits.

On a broader scale, federal law prohibits schools from discriminating against students or denying enrollment on the basis of citizenship or immigration status. The federal government is generally limited in its ability to perform immigration enforcement — including interviews, surveillance, and arrests — on a school campus.

The Family Educational Rights and Privacy Act (FERPA) also generally requires schools to safeguard students’ private information, including that of undocumented students. An exception is if a court subpoenas the school to release your student records. If this occurs, in most cases, the school must notify you.

Preparing to Fill Out the FAFSA

One of the top FAFSA tips is to fill out the form online if you can, since this is typically the quickest and easiest way to submit your application. First, you must request your Federal Student Aid (FSA) ID. This will allow you to create a StudentAid.gov account to fill out the FAFSA form.

You must provide your personal information on the FAFSA form. You’ll also need to give your marital status, citizenship status, enrollment level, income details, and provide tax information. (If you’re submitting an online FAFSA, you must consent to a federal tax data transfer). You’ll need to list the names of the schools you’d like to receive your FAFSA, including their addresses and federal school codes.

If you’re married, your spouse must complete the designated spousal section. They will also need an FSA ID to create an account to fill out their portion of the FAFSA. They’ll have to provide their personal and contact information, federal tax return details, and income on the form.

Handling Parent Information on the FAFSA

Once you’ve started your online FAFSA form, you can invite one or both of your parents to provide their information as a contributor to your application. Including your parents’ information is only necessary if you’re a dependent student. You’ll need their name, date of birth, email address, and Social Security number if they have one to send them an invitation to contribute to the FAFSA.

Your parents must first create a StudentAid.gov account to add their information to your online FAFSA and sign their section. In the past, a Social Security number was required for parents to create a StudentAid.gov account and get an FSA ID. However, effective December 2023, the Department of Education made it easier for undocumented parents to complete this step. Now, undocumented parents can sign up for a StudentAid.gov account without being required to enter an SSN to complete their section of the FAFSA form.

After gaining access to your online FAFSA, your parents will provide the same information that’s required of a spouse. This includes consenting to a federal tax information transfer directly into the FAFSA regardless of whether they filed taxes, and signing their section.

Recommended: Guide to FAFSA Income Limits

Special Considerations for Undocumented Parents

It’s understandable for undocumented parents who are participating in your FAFSA to feel uneasy about the process. Students can help alleviate their parents’ worry by talking them through how their information will be used for verification.

First, it’s important for them to know that the FAFSA does not ask about parents’ immigration status. And the FAFSA Privacy Act Statement stipulates the rights and protections of all contributors on the FAFSA, including parents. Any information provided on the FAFSA is only used to determine federal, state, and school financial aid eligibility and how much money you can get with the FAFSA.

Alternative Options for Financial Aid

Whether you are a DACA recipient, an undocumented student who is ineligible for federal student aid, or a U.S. citizen with undocumented parents who didn’t receive enough federal aid to cover the cost of college, there are financial aid alternatives you can explore. These include:

•   State-specific aid programs. Some states offer their own student aid programs for resident students. For example, California’s Nonresident Tuition Exemption helps undocumented students avoid higher nonresident tuition fees at qualifying colleges, if the student meets certain requirements.

•   School-sponsored support. Your school might offer financial aid, like merit-based scholarships, grants, and student loans you may be eligible for. Speak to your financial aid administrator to learn more.

•   Private scholarships. You can also search for scholarship programs that aren’t affiliated with the government or your school. Use SoFi’s scholarship search tool to start exploring opportunities.

•   Private student loans: These loans are offered by banks, credit unions, and private lenders. Private student loans have fixed or variable rates, and the rate you may qualify for depends on your credit history, among other factors. In order to be approved for private student loans, a student may need a student loan cosigner who agrees to repay the loan if the borrower is unable to repay it. And keep in mind that, as a borrower, you could choose to refinance student loans in the future to get a lower rate or better terms if you’re eligible.

Additional Resources and Support

If, as a student with undocumented parents, you need additional help with completing the FAFSA, there are individuals and organizations you can turn to. Reach out to your high school counselor or the financial aid office at your college for assistance. You can also contact the Federal Student Aid Information Center at StudentAid.gov.

DACA students can find resources that may help them on the U.S. Citizenship and Immigration Services website.

The Takeaway

You can fill out the FAFSA if your parents are undocumented to help you potentially secure valuable financial aid. The 2025-2026 FAFSA application, expected to launch by December 1, 2024, will make it more straightforward for students to complete and submit a FAFSA despite their parents’ immigration status, and even if they don’t have a Social Security number, just like the 2024-2025 form did.

If, after you submit the FAFSA, you still need funds to help pay for school, you might want to consider private student loans. There’s also the possibility to refinance your private loans after graduation for better rates and terms, if you choose to.

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

FAQ

How do I report parental information if my parents are undocumented?

On the FAFSA, undocumented parents can give their personal and financial information without a Social Security number (SSN). They must have a studentaid.gov login to complete their portion of the FAFSA, but no SSN is required for the log-in or to fill out the form.

Will filling out the FAFSA affect my undocumented parents’ status?

The information on your FAFSA, including your parent’s information, is typically confidential. The FAFSA does not even ask about parents’ immigration status. And your parents don’t need a Social Security number to fill out the FAFSA.,

What alternative financial aid options exist for students with undocumented parents?

If you’re a student with undocumented parents, there are other sources of financial aid that can help you pay for school. Ask your college or university if it offers merit-based scholarships or grants, and check into state-specific student aid programs. In addition, you can explore the many scholarship and grant programs available from states, businesses, and organizations. You can also consider taking out private student loans to help you afford college.

photocredit: iStock/Richard Stephen

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.

SOSLR-Q324-033

Around 200,000 holders of federal student loans who attended schools that they say defrauded or misled them filed a lawsuit known as Sweet v. Cardona in 2019. After the court ruled in their favor in 2022, these borrowers began receiving debt relief from the Department of Education (DOE) as part of a $6 billion settlement, including refunds of the payments they’d already made on their federal loans.

If your school was one of more than 150 institutions included in the Sweet v. Cardona debt settlement, but you didn’t apply to be included in the settlement before 2022, you are probably not going to be able to receive this form of debt relief.

However, help is still available. If you feel your school has misled you, violated state laws, or engaged in other misconduct that affected your decision to borrow federal student loans, you can apply for debt relief through a process called borrower defense. Read on to learn about Sweet v. Cardona and what it might mean for you.

Background of the Case

In Sweet v. Cardona, individuals were saddled with heavy student loan debt from certain educational institutions, many of them for-profit, that the loan holders say delivered a subpar education.

“For decades, the predatory for-profit college industry has exploited the promise of higher education,” says the Project on Predatory Student Lending, the legal advocate for defendants in Sweet v. Cardona. “Instead of providing the quality programs promised, these companies invest almost no money into meaningful career training, leaving thousands of students behind.”

The concept of “borrower defense” was created in 1994. It’s a federal process that allows students who say they have been defrauded by their college, university, or career school to seek student loan forgiveness for their federal loans.

The borrower defense process does not apply to those with private student loans.

Borrower defense was an obscure program until 2015, when the for-profit Corinthian Colleges, Inc. shut down and hundreds of thousands of its students were left with degrees of questionable value. This thrust the issue of exploitative education into the headlines. (After years of hearings and litigation, the DOE in 2023 announced it would discharge all remaining federal student loans borrowed to attend any campus owned or operated by Corinthian from 1995 to 2015. This resulted in 560,000 borrowers receiving $5.8 billion in full student loan discharge.)

The question of subpar education soon extended far beyond Corinthian. In a later court ruling, the DOE said that “there was an unprecedented surge in borrower defense applications.” Some of these applicants say that the DOE was making it difficult to get out of student loan debt and receive debt relief.

On June 25, 2019, the original seven plaintiffs in the Sweet v. Cardona case (originally called Sweet v. DeVos) filed their lawsuit in California federal district court, saying their claims for loan cancellation had been ignored by the DOE.

The case was certified as a class action in October 2019, and it grew to include thousands of borrowers who argued they’d been defrauded by more than 150 colleges, mostly for-profit. To find out If your school was one of the institutions included in the Sweet v. Cardona settlement, see this list.

Key Issues in Sweet v. Cardona

The Sweet v Cardona lawsuit was filed because of the difficulty borrowers had in obtaining debt relief even after establishing that the school defrauded students. The Project on Predatory Student Lending said that “students who experienced fraud should not be required to pay back federal loans. Since the Department of Education repeatedly ignored these students’ legal rights, the only way they could have their voices heard was through the courts.”

Borrower Defense to Repayment Claims

The Sweet vs. Cardona plaintiffs applied to discharge their student loans “under a statute authorizing discharges based on misrepresentations or other misconduct by the borrowers’ schools,” said the court.

After years of hearings and disputes over the plaintiffs’ claims, the court granted approval of a final settlement in the Sweet v. Cardona case on November 16, 2022.

Department of Education’s Handling of Claims

The DOE announced it would comply with the court’s settlement.

Education Secretary Miguel Cardona said in December 2022, “We are pleased with the borrower defense court decision approving the settlement, which will provide billions of dollars of relief to over 200,000 borrowers. It will also resolve plaintiffs’ claims in a fair and equitable manner.”

The settlement could result in discharge of a plaintiff’s outstanding loans and in refunds of any amount previously paid to the federal government toward those loans.

Plaintiffs who opted to refinance student loans with a private lender — specifically federal Direct loans and government-held FFEL loans — after they applied for borrower defense, are due to get a refund of the amount paid to the government by the private lender when they refinanced. They will owe the lender any remaining balance.

Recommended: Student Loan Payment Calculator

Timeline of Major Events

There have been some delays in the massive Sweet v Cardona settlement.

January 28, 2023: The Sweet v. Cardona settlement became effective and the Department of Education started to implement debt relief.

February 15, 2023: The court held a hearing on a motion by three schools to stay the settlement. On February 24, the district court granted a temporary stay of discharges and discharge requests related to the three schools that filed the motion: Lincoln Technical Institute; American National University; and Everglades College, Inc.

March 29, 2023: The Ninth Circuit Court of Appeals denied the intervenor schools’ motion to stay the settlement pending their appeals. This meant that settlement relief proceeded for class members from those three schools, and should continue on course for everyone else. The DOE was to complete implementation of the terms by the end of January 2024.

March 18, 2024: The Project on Predatory Student Lending said the DOE had not met the court-ordered deadline of providing debt relief to tens of thousands of people covered by Sweet v. Cardona.

“Many of these borrowers filed their borrower defense applications as early as 2015 and have been waiting nearly ten years for the relief they are owed,” said the Project on Predatory Student Lending.

April 26, 2024: A U.S. District judge granted the DOE extra time to deliver Sweet v. Cardona relief. Borrowers expected to learn about the schedule for their federal student loan relief by August 31, 2024.

September 26, 2024: The DOE reported that it is now in “substantial compliance” with the settlement provisions.

Implications for Student Loan Borrowers

The latest Sweet v. Cardona update is that the settlement amount should have reached the plaintiff’s bank account by now or it is being processed. The DOE is working its way toward providing relief settlements for all those who submitted a borrower defense application on or before June 22, 2022, and were approved.

The DOE said on its website: “Sweet class members who have pending borrower defense applications or have applications that have been approved but have loans that have not been fully discharged are not obligated to repay their loans. If you have been notified by the U.S. Department of Education (ED) that you are a member of the Sweet class and you receive a payment notice from your servicer, you are not obligated to make payments while your application or loan discharge is pending.”

Potential Debt Relief

The Sweet settlement impacts only individuals who attended one of the schools on the court-approved list and applied to be included on or before June 15, 2022. If you didn’t apply by that date, you are ineligible for Cardona v. Sweet but you can still learn more about borrower defense and whether to apply.

Changes to Borrower Defense Processes

The Sweet v. Cardona lawsuit was filed because people who successfully completed borrower defense to repayment applications said it was taking too long to get debt relief. The DOE says it has since improved and streamlined the borrower defense review process for these applications.

Current Status and Developments

The Sweet v. Cardona payments have been processed or are underway for plaintiffs with borrower defense applications filed on or before June 22, 2022, according to the DOE. The DOE will continue to process student loan relief provided by this legal settlement through 2025.

Recommended: Student Debt by Major

Scammers Pursue Sweet v. Cardona Plaintiffs

Sweet v. Cardona plaintiffs should be aware of student loan scams. The Federal Trade Commission (FTC) reports that scammers are attempting to take advantage of plaintiffs in the settlement by trying to extract money to supposedly expedite the claims.

The FTC website says, “Don’t pay anybody for anything related to your borrower defense claim. Nobody can move you up in line, give you special access, or guarantee a successful application. Not for free, and certainly not for money. And only scammers will ask. And if you spot a scam, tell the FTC: ReportFraud.ftc.gov.”

The Takeaway

The historic settlement of Sweet v. Cardona has underscored the importance of pursuing an education at a school that provides integrity and value and doesn’t over promise what they can deliver.

Individuals who borrowed federal student loans for a degree that ended up being subpar, or if their school defrauded or misled them, can apply for borrower defense from the Department of Education for relief from their loans. If they prove their case and their application is approved, they can receive debt relief.

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

FAQ

What is Sweet v. Cardona about?

Sweet v. Cardona is a settlement of a class action lawsuit filed by over 200,000 people who attended schools that they successfully argued defrauded them of an education. The landmark case grants $6 billion in relief from federal student loans.

Who qualifies for relief under the Sweet v. Cardona settlement?

People who attended one of the more than 150 schools included in the Sweet v. Cardona settlement, and who filled out an application by June 2022 that was approved, qualify for relief under the settlement. It is too late to join the class action suit now.

How does this case affect the borrower defense to repayment program?

The Sweet v. Cardona lawsuit was filed because individuals who successfully completed and submitted borrower defense to repayment applications said it was taking too long to get debt relief. The Department of Education says it has since made improvements to borrower defense and streamlined the process.

photocredit: iStock/gorodenkoff
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This year, Federal Student Aid (FSA) estimates that filling out the Free Application for Federal Student Aid (FAFSA^®) takes less than one hour. Read on for the information you’ll need, the steps to take before going to the FAFSA site, and what to expect when filling out the application online.

Completing the FAFSA Application for Academic Year 2025-2026

If this is your first time submitting the FAFSA, you’ll be glad to know that it usually takes less time after the first time (yes, FAFSA is submitted annually.)

Not quite ready to submit your FAFSA, but want an estimate of your student aid package? You can fill out an abridged Federal Student Aid Estimator .

Recommended: 6 Reasons to Go to College

Docs You’ll Need to Fill Out FAFSA

Before you start the online FAFSA form, it’s useful to have the info you’ll need handy. That includes:

•   Your Social Security or alien registration ID

•   Federal income tax returns for 2023, W-2s and other financial documents for yourself (and your parents if you’re a dependent)

•   Most recent bank statements

•   Any untaxed income amounts

12 Steps to Filling Out the FAFSA

For the 2025-2026 academic year, the FAFSA opened November 21, 2024, and it closes June 30, 2026. (For the 2024-2025 academic year, the FAFSA opened in December 2023, and closes June 30, 2025.) That said, schools and state and scholarship programs have varying deadlines, so it’s a good idea to check and double-check the FAFSA deadlines for everything you are applying to.

Here are the steps to completing the online FAFSA form.

1. Creating Your FSA ID

The first step is creating a Federal Student Aid ID . This is simply the username and password you’ll use to log into FAFSA. Note that if your parents’ financial info is required to complete the application, a parent will also need to create a FSA ID.

2. Logging in

Now that you have a FSA ID, you’re ready to log into the online FAFSA form. Use this FAFSA tool to determine which parent should participate in your FAFSA form.

Once you’re in, you will be asked to accept or decline the disclaimer, which details how the site will use and monitor your data. You should then be prompted to start a FAFSA application for 2025-2026.

You’ll also be asked to create a save key, which is a temporary code in case you leave the site before you submit your application. In other words, if you don’t finish FAFSA in one sitting, you can enter your save key and pick up where you left off.

3. Filling in Your Personal Information

You (the student) will be asked to fill in the following info (you’ll be prompted to hit “Continue” several times):

•   Your Social Security number

•   Full name

•   Date of birth

•   Email address

•   Phone number

•   Mailing address

You’ll then need to answer questions about:

•   Your marital status

•   Whether you are a citizen

4. Filling in Your Student Information

Next, you’ll need to answer questions about your education and future plans. Specifically, you’ll be asked about:

•   Your college grade level at the beginning of the 2025-2026 academic year

•   The college degree or certificate you will be seeking to earn

Additionally, you’ll be asked to provide:

•   Information about your personal circumstances

•   Whether you’ve ever been in the foster care system

•   Any unusual circumstances regarding your parents, such as being unable to contact them

5. Filling in the College Search Section

To send your FAFSA information to schools you’re applying to, you’ll need to add the federal school code for each school. Doing so allows colleges to receive your FAFSA information and so use it to provide you a financial aid package. The online form will help you find the codes; you just input the school name, city, and state. You can add up to 10 colleges at a time.

Next, for each school, you’ll need to select your housing plan (on campus, with parent, or off campus).

Recommended: SoFi’s College Search Tool

6. Filling in Info That Helps Determine Your Dependency Status

Your answers in this section will determine whether you are an independent or dependent student— and so determine the financial information you and your parents will need to provide. Specifically, you’ll be asked about:

•   Whether you have children that you support

•   Whether you have other dependents who live with you and you support

•   Whether you are on active duty or a veteran of the U.S. armed forces, are an emancipated minor, whether someone other than a parent or stepparent has legal guardianship, and whether you have ever been in foster care or a ward of the court or both parents have died since you were 13.

•   Whether you were homeless or self-supporting and at risk of being homeless on or after July 1, 2024

7. Learning Your Dependency Status

The smart technology of the online FAFSA form determines whether you’re a dependent or not. If you are single, have no children or other dependents, and answered “none of the above” and “no” on the previous two screens, you are likely a dependent. As a result, your parents’ financial information will be needed in addition to yours to complete the form and calculate your expected family contribution (which will soon be replaced with the student aid index).

Please note that the rest of these steps assume you’re filing as a dependent. While the process of filing as an independent will be similar, you won’t be asked to provide information about your parents.

8. Filling in Your Parents’ Personal Information

You (the student) can answer the following questions about your parents:

•   Their marital status and whether they are separated, divorced, widowed, or remarried

•   Each parent’s name, Social Security number, date of birth, and email

•   State of parents’ residence and date they became a resident

•   Number of other dependent children and other dependents your parents have

9. Providing Your Parents’ Financials

You will need info about your parents’ tax return for 2023 to answer the following questions about:

•   Their tax return status

•   The type of tax return they filed (i.e., 1040 or something else)

•   Their tax filing status (e.g, married-filed joint return)

At this point, you can either use the IRS Data Retrieval Tool (DRT) that pulls their tax return information into the FAFSA form or enter their info manually. In addition to being more convenient, using DRT means you may not have to later provide IRS documentation. (As mentioned earlier, one of your parents will need to create and provide an FSA ID and password to use DRT.)

If you are manually entering your parents financial info, you will need to answer questions about:

•   Their adjusted gross income

•   Amount each parent earned

•   Amount they paid in federal taxes

•   Amounts of other income (such as college grants and tax-exempt interest income)

•   Amounts of child support paid, earnings from work under a Cooperative Education Program, and taxable earnings from need-based employment programs

•   Amounts of untaxed income (such as child support or payments to tax-deferred retirement savings plans)

•   Their assets (including the value of cash and bank accounts, investments, and owned businesses and investment farms)

10. Providing Your Financials

You’ll also need to provide your financial information. Basically, you will be asked for the same info about yourself that you provided in the previous step about your parents’ income and assets.

11. Checking for Errors

Once you’ve reached the end of the application, you’ll see a summary to review. Checking that all the information is accurate may help avoid having to file a FAFSA correction later.

You’ll also need to answer a few more questions that the federal government collects about gender, ethnicity, and race. This info has no impact on whether you will receive financial aid.

Recommended: How Much FAFSA Money Can I Expect?

12. Signing and Submitting

FAFSA requires you to accept or reject its agreement of terms. If your parent or parents provided information because you filed as a dependent, one of them will also need to accept these terms in order for you to submit the application. Both you and your parent will e-sign using your FSA ID. Once you’ve signed and submitted your application, your FAFSA is complete.

Downloadable FAFSA Form for 2025-2026

Here’s the FAFSA form for 2025-26 if you want to see it before logging in to fill it out — or if you want to print it, fill it out, and mail it in.

What’s Different About the 2025-26 FAFSA

The Department of Education says it has modernized the FAFSA process and improved the user experience and functionality in filling out the online form. They have also added more staff to address applicants’ questions, and expanded the hours to provide help. You can reach staff through the Federal Student Information Center and find answers to frequently asked questions about filling out the FAFSA form at the FAFSA Help Center.

Additionally, the 2023-24 form does not ask about Selective Service registration status or drug convictions.

A Few Extra Tips

Completing FAFSA can be an overwhelming process. It can also be tempting to skip it altogether, especially if you’re from a middle- or high-income family and you believe you aren’t eligible for aid. However, that’s an assumption that could mean leaving aid on the table. Here are three more helpful tips:

1.    Schools, states, and scholarships have varying deadlines. As stated earlier, FAFSA opened November 21, 2024, and closes June 30, 2026, for the 2025-2026 academic year. However, the schools and scholarships you’re applying to may require you to fill out your FAFSA before that time, so it’s best to check each school’s and program’s FAFSA deadlines to avoid losing out on aid.

2.    The IRS Data Retrieval Tool can help you avoid making mistakes. This tool auto-fills your (and your parents’) latest tax information from the IRS database. So instead of having to figure out what the adjusted or non-taxed income was on your parents’ tax return, you can let the tool do it for you.

3.    It doesn’t pay to guess. Not sure how to fill out a section or what the answer is? FAFSA offers helpful tips and clarifications throughout each section of the FAFSA form, so be sure to use the text and articles embedded on the form—just click on the question mark icon. Inaccurate answers can result in receiving less financial aid than you’re eligible for as well as needing to file corrections and send in supporting documentation.

Recommended: Navigating Your Financial Aid Package

The Takeaway

Filling out the FAFSA is a great first step to pay for your dream school. This is one of the best ways of getting scholarships and grants you won’t have to pay back or government-backed loans to help you pay for college-related costs. By learning how to properly fill out the FAFSA (and then actually doing so!), you can increase your odds of getting a bigger financial aid package.

However, if your financial aid package doesn’t cover all your college expenses, you may want to consider a private student loan. It’s important to note that private student loans don’t offer the same protections as federal student loans, like income-driven repayment plans or deferment options. For this reason, private student loans are generally considered only after other sources of funding have been considered.

SoFi’s private student loans are available for undergraduate and graduate students, as well as parents. In just a few minutes, you can apply online for student loans and be well on your way to financing your education.

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

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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.

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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.

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.

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

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

Header photo credit: iStock/Vladimir Sukhachev

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