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It’s a common scenario for students (and sometimes their parents) to borrow student loans as a way of covering costs associated with college. Tuition, housing, textbooks, and incidentals can really add up. But what happens if their loan amounts to more than what the bursar’s office has listed as the balance? In that case, they may receive a student loan refund.

A student loan refund is money that the borrower receives when the loan amount exceeds the amount of money required to pay for qualifying education expenses. Say, perhaps you borrowed enough for some living expenses that are not billed via your school. That overage would come to you as what’s called a student loan refund in the form of direct deposit or a check.

So what happens next when you get a student loan refund? Read on for more information on what a student loan refund is and what to do if you receive one.

What Is a Student Loan Refund?

To understand what a student loan refund is, it can be helpful to first look at what college financial aid is and how it is distributed to students. When a student or their parent pursues federal financial aid, such as a student loan, that aid is distributed via a credit to the student’s account at their college.

Private student loans are distributed differently depending on the lender’s preferences. Some private lenders may deliver the funds directly to the student.

Others may choose to credit the student’s college account similar to how federal aid is distributed.

Private or federal, this is where student loan refunds may come into play. Student financial aid can cover costs such as tuition, room, and board, and fees. Here’s more detail:

•   On occasion, an aid distribution can lead to there being an additional credit in the student’s college account.

•   This happens if there is any excess money after paying for the necessary expenses. In that case, the student or parent will receive a student loan refund via a check or in the form of a direct deposit to their bank account.

•   An example of how this might happen is that funds are sent to the student’s school, where the student’s account only reflects tuition. But the amount was also intended to cover textbooks, which the student will buy separately. The overage in the student loan (the part meant to pay for the books) could then be sent to the student.

Or it might be a case of the student having borrowed more than they actually needed to afford their school costs for a particular time period. Perhaps they signed up for a class that wound up being canceled and are now taking a different class that carries fewer credits and less expense.


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

How to Get a Student Loan Refund

Whether a student or a parent takes out a federal student loan, the process of getting a student loan refund will generally look similar. Each semester, the school will generally review student accounts to determine if there are any eligible credit balances that can be refunded to the student.

If that is the case, here are some details to know:

•   The school has 14 days to issue a payment to the student if there is credit on their account. In some cases, schools may determine that credit balances should be applied to students’ future costs at the university.

•   In some cases, if the credit is not a result of the student receiving financial aid, the school may require that students request a refund. Follow the refund request process as determined by the school you attend.

•   In general, the school in question will contact the student or their parents in writing any time they distribute any loan money. The loan servicer will also provide confirmation that the loan money was delivered.

•   Alongside this notice, borrowers will generally also receive information on how to cancel part or all of the student loans. If the borrower realizes they don’t need the full loan amount, this may be an option they want to pursue.

•   Know that any amount refunded is still considered part of the total amount borrowed. So, borrowers who receive a portion of their student loans refunded would still be responsible for repaying that amount, with interest, if the refund is not canceled.

•   If this is the case, when it comes to federal student loans vs. private loans, the borrower can cancel all or part of their loan within 120 days of receiving it. They will incur no interest during this time and no fees will be charged.

The process of getting student loan refunds may vary when dealing with private lenders.

•   If the funds were received by the student to pay for qualified expenses, such as textbooks, the student can go ahead and use it for such purchases (more on this below).

Recommended: How and When to Combine Federal and Private Student Loans

Common Student Loan Refund Mistakes

When it comes to private and federal student loan refunds, there are a few common pitfalls that students and their parents should avoid. Especially if they want to get their hands on a student loan refund check sooner rather than later.

Moving Too Slow

Requesting a student loan refund is a bit of a time-sensitive process.

•   If someone realizes they won’t need the full amount of a federal student loan awarded before the funds are disbursed, they can actually request the school cancel the check or deposit before the need to process a refund even arises.

•   If the borrower realizes after distribution of a federal student loan that they don’t need all or any of the funds, they have 120 days after the disbursement date to return the funds without incurring interest or fees.

•   If a borrower misses both of these opportunities, the process of working with their school’s financial aid office to return the funds can become more complicated and time-consuming.

Not Establishing a Paper Trail

When making a student loan refund request, it may be a good idea to keep a paper trail of all requests and communication in order to establish a clear history of a desire to return the unused funds, if that is your situation. If things get lost in translation (which could happen), having a paper trail can be extremely helpful.

Over Relying on Student Loans

Some students and their parents lean too heavily on student loans and may be able to get a bigger refund if they can find another way to finance any qualified education expenses. Student loans can be used to pay for academic and living expenses for the student while they’re in school.

However, pursuing other forms of financial support, such as a work-study program can allow students to send more of their aid funds back, which will leave them with fewer loans when they graduate.

While it can be tempting to use a student loan refund to cover extra expenses like clothing and transportation — the less that is borrowed, the less that will be owed at graduation.

Just be sure that, if you receive a larger loan disbursement than what you actually need, you don’t wind up spending it on, say, dining out or clothes while in school. While those are part of college life, that could be a misuse of your financial aid.

Recommended: What Happens If You Just Stop Paying Your Student Loans

What to Do With a Student Loan Refund

When a student or their parent gets a student loan refund, they have two main options. They can keep it or return it.

Keep the Student Loan Refund Check

The first option is to keep the refund. This money can be used as the borrower sees fit. Borrowers aren’t required to submit proof of what they spent the funds on which can make it tempting to spend the refund on expenses that aren’t necessarily required for education purposes.

Keep in mind, as noted above, that spending the funds on nonqualified expenses could be considered fraud and is not recommended. It may feel appealing in the moment to use the funds, it may not be the wisest decision. Additionally, a student loan refund is still money that needs to be repaid with interest, so keeping that money may also not be in your best interest from a financial perspective either.

Return the Student Loan Refund Check

If the funds aren’t needed to pay for school, returning the refund check may be the most beneficial choice in the long run. Because, as mentioned, the money will have to be paid back (with interest) and spending it on unnecessary expenses can be quite a disservice to the borrower.

For details on returning your student loan refund check, contact the school’s financial aid office. If the borrower chooses to keep the student loan refund check or misses the deadline to return it, there are still some next steps available to them. One such option is to make a payment on their student loan balance.

Even though federal student loans don’t require payment until the student graduates, this can be one way to cut down student loan debt. The borrower can also use those funds for expenses in the next term and as a result, can choose to borrow less money for that term.


💡 Quick Tip: If you have student loans with variable rates, you may want to consider refinancing to secure a fixed rate in case rates rise. But if you’re willing to take a risk to potentially save on interest — and will be able to pay off your student loans quickly — you might consider a variable rate.

Refinancing Student Loans

Now, imagine that all your hard work has finally paid off. It’s time to cross that graduation stage. Once graduation day rolls around, students and their parents will begin to think about how they want to manage and pay off their student loan debt.

One option that can lead to saving money on interest and potentially expedite the repayment process is to refinance student loans.

When someone refinances a student loan, they get a new loan at a new interest rate and/or a new term. If a borrower initially had more than one student loan, this leaves the borrower with only one monthly payment to make instead of multiple ones. In some cases, this can lead to a lower interest rate or it might mean a lower payment for a longer term. Keep in mind that if you refinance with an extended term, you may pay more interest over the life of the loan. Also know that if you refinance federal loans, your new private loan means that you have forfeited the benefits and protections of your federal loan. For these reasons, refinancing may not be the right choice for all borrowers.

The Takeaway

If there are funds from student loans left over after all tuition and fees are paid, students may receive a student loan refund check. This check can be used to pay for other educational expenses or can be returned.

Keep in mind that this money will need to be repaid with interest. Refinancing student loans can be an option when it’s time to start paying back what you have borrowed.

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.

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.

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The question of whether parents should pay for their children’s college education is a complex and multifaceted issue. It involves not only financial issues (namely, can you afford to?) but also ethical and personal considerations. While many parents aspire to pay 100% of their children’s college expenses to allow them to graduate debt-free, others feel that it’s important for kids to have some skin in the game.

If you’re weighing this issue, you’ll want to consider both the reasons for and against paying for your kid’s college education. Here’s a closer look at both sides of the argument.

Why Parents Pay for College

Some parents feel it’s their duty to cover the cost of their child’s college education. Here’s a look at some arguments in support of that viewpoint.


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

Giving Your Child a Head Start

The average student borrows over $30,000 to pursue a bachelor’s degree, according to the Education Data Initiative. That’s no small sum. Students who graduate debt-free generally have a leg-up on achieving their professional and financial goals. They can consider taking a job based on their career aspirations, rather than the one that pays the most. They also have the freedom to put all of their financial resources into other goals, such as building an emergency fund or buying a home.

Helping Your Child Stay in School

When you send your child off to college, you likely expect them to emerge with a bachelor’s degree. But recent research shows that only 62% of college students graduate within six years. Among those who leave school, a significant number cite financial reasons for their decision. Taking the college bill off your child’s plate may help them stick to the program.

Allowing Your Child to Focus

Getting a job can help your child cover some of their tuition costs, but if they have to work too many hours, it can make it difficult for them to focus on their studies. Paying for their education can give them a better chance of getting good grades and possibly qualifying for academic scholarships. They may even be able to take on a bigger course load every semester and graduate early.

Why Parents Don’t Pay for College

While many parents believe they should pay for college, others feel that students should be responsible for investing in their own education. Here’s a look at some reasons why parents shouldn’t pay for college.

It Could Threaten Your Retirement

If you can afford to save for a healthy retirement and pay for college, you’re in good shape. But if you feel like you have to choose between the two, paying for college and not saving for retirement could force you to work longer or leave the workforce with less money than you might need.

There are many different types of student loans available for college, but there’s no such thing as retirement loans to help you get by.

It Builds Responsibility and Accountability

Having your child contribute to their education through part-time jobs and loans can help foster a sense of responsibility and ownership. They may value their education all the more — and work as hard as they can — knowing how much this opportunity costs.

It’s a Good Teaching Moment

Helping your child figure out their college financing and teaching them good financial habits now can help them continue those habits after they graduate. If you cover everything for them, they may have a difficult time transitioning to life after college and may end up coming back to you for help.

How Parents Paying for College Can Get Financing

If you’re interested in footing some or all of the bill for your child’s college education, you have a few different funding options. Here’s a closer look.

Savings

One way to help students pay for college is to put some money aside each month in a 529 plan. Even if your child is already in high school, you can still open a 529 plan and take advantage of the federal (and sometimes state) tax benefits. Money in a 529 account grows tax-deferred and withdrawals are tax-free when used for eligible educational expenses. Any amount saved for college will reduce your child’s future student loan debt.

Parent PLUS Loans

The U.S. Department of Education offers PLUS Loans for parents that you can qualify for as long as you don’t have an adverse credit history. Parent PLUS Loans give you access to certain benefits, including the option to defer repayment while your child is enrolled at least half-time and for an additional six months after your child graduates. However, these loans also charge relatively high interest rates and upfront loan fees.

Recommended: Should You or Your Child Take Out a Loan for College?

Private Student Loans

If you have excellent credit and a strong, steady income (and your child doesn’t get enough federal aid), you may want to explore getting a student loan for parents with a private lender. Typically, you can get prequalified with a soft credit check with many lenders online to see what rate you qualify for and compare it to other lenders and Parent PLUS Loan options.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Financing Options for Your Child

If you’ve decided that you can’t or don’t want to fully pay for your child’s college education, here are some ways that your child can get the funding they need.

Grants and Scholarships

By completing the Free Application for Federal Student Aid (FAFSA ®), your child will automatically be considered for many federal, state, and institutional grants and scholarships. Scholarships are also available through private organizations and companies. To apply for these, your student will likely need to fill out a separate application for each one. To find more “free money” for school, your student may want to use an online scholarship search tool.

Part-Time Job

One good way to pay for school, especially if your child has a full or partial scholarship lined up, is to work part-time while in school. This can help pay for living expenses, books, or possibly even tuition. Working full-time during the summers can help to pay for the next year’s worth of expenses.

Student Loans

College students have a choice between federal and private student loans. In general, federal loans are better-suited for undergraduate students because they don’t require a credit check, have relatively low-interest rates, and offer access to income-driven repayment plans and loan forgiveness programs. Your child can apply for federal student loans by completing the FAFSA.

If federal student loans aren’t enough to cover your child’s full cost of attendance, however, private student loans may be another option. Just keep in mind that you may need to co-sign the loan application to help them get approved.

Carefully Consider All Your Options

There’s no right or wrong answer to the question of whether parents should pay for their child’s college education. It’s important to carefully consider both the benefits and drawbacks, as well as how much you can realistically afford to put towards your child’s college expenses.

The good news is that a school’s “sticker price” (published cost of attendance) often isn’t what you actually pay, since it doesn’t account for financial aid or scholarships that your child may receive. The actual amount students and/or parents need to pay is typically much lower than the published price. Students and parents can also tap federal and private student loans.

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

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

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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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.

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Disappointed by your financial aid package? Sometimes students don’t get as much aid as they hoped for. Occasionally, they’re denied any aid at all. Before you give up on going to your dream school, know that the decision isn’t necessarily final.

A financial aid appeal letter allows you to plead your case and share any new information. However, it’s essential to know how to write a letter compelling enough to change minds.

Here we’ll offer proven tips for building a persuasive argument, and a sample financial aid appeal letter template to get you started.

When To Write a Financial Aid Appeal Letter

At what point in time after you receive your financial aid offer should you send an appeal letter? As soon as possible. That’s because some financial aid is handed out on a first come, first served basis. The sooner you appeal the decision, generally the more funds there will be to draw on.


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

Why Write a Financial Aid Appeal Letter

There are two main reasons why students appeal their financial aid offer: not getting the amount of aid they need and getting denied outright.

The Financial Aid Offer Fell Short

A student’s financial aid offer is based on the school’s certified cost of attendance (COA) and the student’s Student Aid Index, or SAI (formerly called Expected Family Contribution, or EFC). The latter is calculated based on information provided in the Free Application for Federal Student Aid (FAFSA®) form.

But a lot can happen between when you file your FAFSA and when you receive your student aid offer letter. Your circumstances may have changed. Some common life changes that can affect your financial aid calculation include:

•   Parent’s job loss or switch to a lower-paying position

•   Medical emergency or other financial commitment that ate up the cash your family had set aside to help you

•   Parents’ divorce

•   New member joined the family, through birth, adoption, or guardianship

•   Death of a parent

Recommended: Independent vs Dependent Student: Which One Are You?

Not Meeting Eligibility Requirements

In order to qualify for federal financial aid, students need to meet a handful of eligibility requirements. The criteria include being enrolled or accepted for enrollment in an eligible degree program, and maintaining “satisfactory academic progress,” including a 2.0 GPA. The full list of eligibility requirements is available on the Federal Student Aid website at StudentAid.gov.

If you don’t meet one of the requirements before the financial aid office makes its decision or you lose eligibility after receiving an offer, you may not get the help you need.

Recommended: What Are the FAFSA Income Limits for Eligibility?

What To Say in a Financial Aid Appeal Letter

Before you begin writing your letter, you’ll want to verify if your school has an official appeals application or form. In addition, you can check your school’s financial aid office for details on the financial aid appeal process. Some schools offer appeal forms online or have walk-in hours to address appeal questions.

If your school doesn’t offer a form, here’s a look at some specific things you may want to include in your appeals letter.

Address a Specific Person

It’s a good idea to avoid generic greetings like “To Whom It May Concern.” Instead, you’ll want to identify a specific individual at the financial aid office. If you are unsure whom to address, reach out to the financial aid office to ask.

Highlight Examples

Your case will likely be more compelling if you can provide details about your situation and why you are unable to pay for college. Consider writing a bulleted list so you can provide straightforward facts about your family’s financial situation. A bulleted list will also make it easier to connect details with support documentation.

Provide Documentation

If you have any relevant documents that can help support your case, you will want to include them with the letter. For example, a death certificate, doctor’s note, or unemployment benefits letter can give the financial aid office the evidence that it needs.

State a Dollar Amount

If you’re asking for a specific amount, consider including a budget breakdown of how you’d spend that money, including tuition, room and board, supplies, books, and transportation costs. (SoFi’s Ca$h Course: A Student’s Guide to Money may help with this.)

Recommended: Ca$h Course: A Student’s Guide to Money

Add a “Thank You”

You may want to end your letter by thanking the person you’re sending it to. You may also want to express your excitement about attending this school.

Sample Financial Aid Appeal Letter

Date
Person’s name (if available)
OR
Financial Aid Appeal Committee
Name of School
Office of Financial Aid

Dear Name Here,

I am writing to appeal the financial aid offer I received. My proposed package included $00,000 in scholarships and grants, and $00,000 in federal student loans, for a total award of $00,000. However, the amount I will need to cover my cost of attendance this year and living expenses this year is $00,000. I am requesting an increase in student loans or gift aid to cover the remaining $00,000.

Since completing and submitting the FAFSA, my family has experienced a change in circumstances. My father was laid off from his job in February and is still looking for work. He provided the primary income for our household, so our family’s total income has dropped from $00,000 to $00,000 per year.

My family and I would be grateful if you would approve an increased aid amount of $00,000 to help me afford the cost of school this year. I’m thrilled to have been accepted at my school of choice and am eagerly looking forward to starting in the fall.

I appreciate your taking the time to consider my appeal. Thank you very much.

Sincerely,
Your name

3 Tips for Writing a Financial Aid Appeal Letter

A good financial aid appeal letter can potentially shift your financial aid office’s decision in your favor. Here are some things to keep in mind while you’re writing it.

1. Be Polite

Not getting the financial aid you feel you need can be a frustrating experience. When it comes time to direct your request to someone specific, look for a contact in your school’s financial aid office and address the letter to them directly. If you’ve received some aid, you could thank them for the amount and perhaps explain how much you appreciate them considering your appeal.

It can be difficult to leave emotion out of the equation, but a respectful tone can have a positive influence.

2. Keep It Concise

Be clear with your request and how much aid you need. Then give a straightforward explanation of why it’s needed. If you were denied aid for an issue with eligibility, you might want to explain the reason why it happened. For example, maybe your grades dipped because you were diagnosed with a severe illness, lost an immediate family member, or became homeless.

Try to keep your letter to one page. This is not the time for a manifesto. The financial aid office will likely be reviewing multiple letters, and brief messages can be surprisingly powerful.

3. Proofread the Letter

After writing and thoroughly proofreading the letter yourself, consider having a trusted friend or family member give the letter another read. It’s not always easy to catch errors on your own, and the easier your letter is to read, the better the impression you’ll make.

What To Do If Your Appeal Is Unsuccessful

If your appeal is denied, you may still have other options for covering college costs.

For example, you may be able to qualify for scholarships through your school or a private organization. Check your school’s website for opportunities, as well as websites like Scholarships.com, Fastweb, and the College Board. SoFi also offers a helpful Scholarship Search Tool.

Even if you were denied a federal Direct Subsidized Student Loan, you may have the option of taking out a Direct Unsubsidized Student Loan, which is not need-based. Or, if your parents are willing to help, they can apply for a Parent PLUS Loan through the Department of Education. These loans are also not need-based, and the maximum amount they can borrow is your school’s cost of attendance minus any financial aid you’ve already received.

Finally, you may also be able to apply for a private student loan. These loans are available through banks, credit unions, and online lenders. Loan amounts vary by lender but you can often borrow up to the full cost of attendance. These loans require a credit check, so if you’re still relatively new to credit, you may need a parent to cosign the loan. As you consider these options, take the time to research their costs and terms to make sure you get the best deal for you. You‘ll want to exhaust all federal aid options first before applying for a private student loan.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

The Takeaway

Writing a financial aid appeal letter can help students qualify for additional financial aid. Appealing an aid offer won’t always result in an increased award, but writing an effective letter can potentially improve a student’s chances of getting more aid. A few suggestions to strengthen your letter include being concise, providing supporting documentation, being specific in how you’ll use the funds, and keeping the letter polite in tone.

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

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

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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The college application process can be an exciting and stressful time for both students and parents. For your child, it may be one of the first times they have had to take action and make decisions that could have a lasting impact on their life.

As a result, you want to help guide your child and keep them accountable, but don’t want to push them too hard or do the work for them. For help on how to prepare your kids for college, here is a parent’s guide to college planning so you can support your child during the college application process without making the process even more stressful than it already is.

A Parent’s Guide to College Planning

It can be hard to know how much is too much, but things can also go south if you’re not involved at all. Here are some things to consider when preparing kids for college.

Avoid Taking Over the Process

It can be tempting to do what you’ve likely done countless times in your child’s life: step in and solve the problem for them. While there are certainly times in their life when that’s a good thing, it’s important to allow your child to take the helm.

On the flip side, you don’t necessarily want to be completely hands-off. You know your child, possibly better than they know themselves. If they’re prone to procrastination or might have a hard time talking about their strengths in an essay, you may want to take the opportunity to give them some guidance and gentle reminders.


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

Listen to Your Child

While the ultimate goal is to get all their applications in on time, it’s important to remember that the process can be overwhelming. Your child is making some big decisions about their future and may need someone with whom they can talk things through.

It’s a good idea to take the time to listen to your child and be empathetic about their stress, fear, and anxiety. If possible, share your own experience and show that they can depend on you for ongoing support.

Know the Deadlines

Applying for college is serious business, and it’s unlikely colleges are going to accept late entries. While it’s important for your child to know when their applications are due, it’s also a good idea for you to have them on your calendar.

That way, you can follow up as the deadlines get closer just in case your child forgot. That said, you’ll want to be careful to avoid nagging or bringing it up too often.

Avoid Focusing on Just One School

Parents want the best for their children, and that may include wanting them to attend a specific school. Maybe you like the idea of having your child attend your alma mater, or you have your sights set on an Ivy League school.

It may not hurt to make a suggestion about which schools your child should consider. But having your child put all their eggs in one basket can make it difficult if they don’t get accepted or they want more options later on.

Visit Campuses

If your child’s top schools are close by, you may want to take a day off of work to visit each campus and meet with an admissions counselor. Being there and taking it in may help your child make the right decision about which school is the best fit.

If a college is far away, consider making a vacation out of it. Before you go, check with the colleges to see if they offer campus tours or college fairs where your student can get a better idea of the full experience.

Encourage Them to Work With a School Counselor

If your child has a designated counselor at school, encourage them to meet with their counselor and talk about the process. While you can give good advice, the counselor may be more in touch with which school might be a good fit based on what your child wants to study.

They may also be able to give your child a better idea of what college admissions officers are looking for in an application, which can give your child an advantage.

Recommended: College Planning Guide for High School Students

Let Your Child Do the Talking

It can be tempting to try to set up an appointment or communicate with prospective colleges on your child’s behalf. But by encouraging your child to do those things instead, you allow them to show initiative and independence, two traits that can give them a leg up on other candidates.

It will also give your child good practice, because they’ll likely need to do a lot more on their own in the coming years, and may not have you nearby to help.

Talk About Finances

In addition to providing support during the application process, knowing how to prepare your kids for college costs is essential. If you’ve been saving for your child’s college education, talk with them about how far it will go and what they can use the money for.

You may also want to talk to them about the different types of student loans, both federal and private, and how to make good decisions about borrowing for education and living expenses.

Encourage them to apply for scholarships and/or grants first, and to work during school to help reduce how much they may need to borrow.


💡 Quick Tip: Parents and sponsors with strong credit and income may find much lower rates on no-fee private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.

Putting Your Child’s Needs First

Preparing kids for college is no easy task, especially if you feel like they’re dragging their feet. As you try to find the best way to support your child, take a step back and think about their needs versus your desires, and try to focus your encouragement based on their needs.

Doing this may require some patience, but it can help turn the process into a bonding experience rather than an alienating one.

It’s also important to have the money conversation. Teaching your child about the cost of college, as well as discussing options to finance their education, can help set them up for success for years to come.

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

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

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

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Your financial aid may change from year to year, based upon a number of factors — but it does not automatically increase each year. In fact, sometimes the amount may decrease.

Your financial information is used to calculate the amount of financial aid you receive each year. If your financial circumstances change, you may be eligible for more or less need-based gift aid (the kind you don’t pay back) each year. The maximum amount you can take out in federal Direct Loans, however, does increase for each year you’re in school.

Here’s a closer look at how your financial aid is calculated each year you are in school and why it might go up or down after freshman year.

Do You Have to Apply for Financial Aid Every Year?

You must apply for financial aid each year by filling out the Free Application for Federal Student Aid (FAFSA®). Any changes in your family’s circumstances can affect the amount of need-based aid you are awarded. Need-based aid includes grants, scholarships, work-study, and subsidized federal student loans (in which the government pays your interest while you are in school and for six months after you graduate).

It’s a good idea to fill out your FAFSA soon after it becomes available. This ensures you’ll be considered for all types of federal financial aid, including state aid and financial aid funded directly by colleges and universities. Typically the FAFSA opens October 1 for the following academic year. Due to an overhaul and simplification of the form, however, the 2024-25 FAFSA is slated to open some time in December 2023. In future years, the FAFSA will go back to opening on October 1.

You’ll want to check the FAFSA filing deadline for your chosen school by going to their financial aid website. Some schools also require other applications for financial aid (such as the CSS profile).


💡 Quick Tip: You’ll make no payments on some private student loans for six months after graduation.

How Do You Fill Out the FAFSA?

You can fill out the FAFSA online at studentaid.gov. Here’s how:

1. Create an FSA ID. This is a username and password that you will need to complete the FAFSA (as well as take out loans and log in to all Federal Student Aid websites). Keep in mind that parents need to create their own account using their own unique email address and password.

2. Gather documents. You’ll find a list of the documents you need to complete the FAFSA right here.

3. Fill out the application. You’ll need to supply both personal and financial information. If you have any questions as you go along, you can go to the FAFSA Help page. You’ll also have the opportunity to list the schools you are interested in applying to, even if you have yet to apply. This list is not shared with the schools you list.

4. Review your FAFSA Submission Summary. Once your FAFSA has been submitted and processed, you’ll receive an email letting you know your FAFSA Submission Summary is ready to review on studentaid.gov. This contains a summary of the information you entered on the FAFSA and your Student Aid Index, or SAI (formerly called Expected Family Contribution, or EFC). Your SAI is used to determine your eligibility for federal financial aid programs. It’s sent to the colleges you listed on your FAFSA.

Does the Government Decide How Much Money You’ll Be Awarded?

The U.S. Department of Education doesn’t decide how much money you’ll receive in federal student loan funding. What they do, through the information collected on your FAFSA, is determine your eligibility for federal student aid. This information is then forwarded to the schools you’ve listed on your FAFSA.

The Department of Education does set certain limits on the amount of aid any student can get, which can change each year. For example, if you are a dependent student you can borrow up to $5,500 (no more than $3,500 of this amount may be in subsidized loans) for your first year in college. For your second year, you can borrow up to $6,500 (no more than $4,500 in subsidized loans). The amount increases each year.

What Role Does Your School of Choice Play?

The financial aid office at each college you apply to will determine how much financial aid you’re eligible to receive. How much you’ll receive depends on several factors, including your:

•   SAI (this number is an indicator of your financial need)

•   Enrollment status (full-time students receive more aid than part-time students)

•   Cost of attendance at the school

The basic formula for distributing federal financial aid looks like this:

School’s cost of attendance – SAI = Financial need

Can You Keep Your Financial Aid Amount Consistent?

There are no guarantees that you’ll receive the same amount of federal student aid from year to year. But there are some things you can do to maintain your financial aid eligibility.

One is to make sure that you achieve Satisfactory Academic Progress (SAP) each year. Each school has an SAP policy for federal student aid purposes; to see your school’s, you can check your school’s website or ask someone at the financial aid office.

The other way to keep your financial aid as consistent as possible is to fill out the FAFSA each year. Financial aid eligibility does not carry over from one year to the next.

Can You Appeal Your Financial Aid?

If you discover that you’ve been denied financial aid or you’ve received less than what you need, one option is to write an appeal letter. Your school may or may not change its decision, but it may be worthwhile to try, especially if you believe you have other information that they didn’t take into account, or if something significant has changed.

If, for example, one of your parents lost a job recently or someone in the family experienced a medical emergency, then an appeal letter might help. Tips that might help you to write a successful one include:

•  Look for a contact in your school’s financial aid office (ideally the person who has been assigned to your case) and address that person directly.

•  Be polite, professional, and respectful.

•  Be clear about what you’re requesting, including how much aid you need and why.

•  Be concise and compelling, keeping in mind that the financial aid office is likely busy.

•  Provide relevant documentation, such as a doctor’s note or eviction notice. Perhaps give them a breakdown of how you’d spend the money you’re requesting.

•  Carefully proofread your letter and ask a trusted friend or family member to do so, as well.

Paying for College If You Didn’t Receive Federal Financial Aid

If you didn’t receive the federal student aid you anticipated or hoped for, and if an appeal letter isn’t successful (or if you don’t qualify for need-based aid), then other options for paying for college include:

•  Applying for additional scholarships There are smaller scholarships and grants available through private companies, community organizations, and nonprofits. Though each scholarship may be small, if you can cobble together a few, they can help make a dent in your college costs. You can talk to your school’s financial aid department for leads or use one of the many online scholarship search tools.

•  Tapping federal student loans Your financial aid package will tell you what federal student loans you qualify for. These may include Direct Subsidized Loans and/or Direct Unsubsidized Loans (in which students are responsible for all interest accrued). Federal student loans come with low interest rates and valuable protections, such as income-driven repayment plans and generous deferment and forbearance programs.

•  Private student loans If your financial aid package (including federal student loans) isn’t enough to cover all of your school costs, you may next want to look into private student loans. These are available through banks, credit unions, and private lenders. Loan limits vary by lender, but you can often get up to the total cost of attendance at your chosen school, minus any financial aid you received. Interest rates may be fixed or variable and are set by the lender. Generally, borrowers (or their parent cosigners) who have strong credit qualify for the lowest rates.

•  Part-time job Your financial aid package may include the opportunity to find a job through the Federal Work-Study program. This program funds part-time jobs for college students with financial need. Even if you don’t qualify for work-study, you can look for a job on or off campus to help cover your expenses.

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

Private Student Loans with SoFi

If you received financial aid for freshman year, remember that you must apply for financial aid each year you are in college. Any changes in your family’s financial circumstances can affect your SAI and, in turn, the amount of money you are awarded. To make sure you get the same amount of aid (or potentially increase your aid), you’ll want to fill out the FAFSA every year.

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

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

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

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

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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