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Student loan interest rates are rising. In July 2024, interest rates rose to their highest level in 16 years. Rates for undergraduate loans have increased almost 19% over last year and 44% over the past five years. Some loan rates for graduate students have never been as high as they are now.

Why are student loan interest rates so high? Some of it comes down to perception: Interest rates are up after a decade of historical lows. But other factors also come into play.

Read on to learn how student loan interest rates are set, why interest rates are going up, and the different options available for managing high-interest student loans.

Understanding Student Loans

There are two main types of student loans — federal and private student loans. Federal loans are offered by the Department of Education (DOE) and they include Direct Subsized and Unsubsidized student loans for undergraduate students, and Direct Unsubsidized loans and Direct PLUS loans for graduate or professional students.

•   Direct Subsidized loans are for undergraduates who have financial need. You fill out the Free Application for Student Aid (FAFSA), and your school determines how much you can borrow. The interest on the loan is paid by the DOE while you’re in school and for a six-month grace period after graduation.

•   Direct Unsubsidized loans are available for undergrads and graduate students. A borrower does not have to prove financial need for these loans. Again, your school determines the amount you can borrow. However, unlike Direct Subsidized loans, the interest on Direct Unsubsidized loans begins to accrue as soon as the loan is disbursed.

•   Direct PLUS loans are for eligible parents (typically called a parent PLUS loan) and grad students. To be approved for one of these loans, a borrower must undergo a credit check and cannot have an adverse credit history. Interest accrues on Direct PLUS loans while the student is in school.

Here’s a look at how the interest rates on these federal loans have increased over the last four years:

	School Year 2021 – 2022	School Year 2022 – 2023	School Year 2023 – 2024	School Year 2024 – 2025
Direct Subsidized and Unsubsidized Loans for Undergrads	3.73%	4.99%	5.50%	6.53%
Direct Unsubsidized Loans for Graduate or Professional Students	5.28%	6.54%	7.05%	8.08%
Direct PLUS Loans for Graduate or Professional Students or Parents of Undergrads	6.28%	7.54%	8.05%	9.08%

There are several different repayment plans for federal student loans, including the standard 10-year plan; graduated repayment in which your monthly payments gradually increase over 10 years; extended payment, which gives you up to 25 years to repay your loans; and income-driven repayment plans that base your monthly payments on your income and family size. Federal loans come with benefits such as federal loan forgiveness.

Private student loans are issued by private lenders, such as banks, credit unions, and online lenders. Their interest rates and loan terms differ from lender to lender. The interest rates on private student loans may be fixed or variable, and the rate you get depends on your credit history. You can use student loan refinancing later on for potentially better interest rates and terms on your private loans, if you’re eligible. (Federal loans can be refinanced as well, but they then become private loans and lose the federal benefits mentioned above.)

By using our student loan refinance calculator, you can check the interest rate and repayment terms you could qualify for — and find out if refinancing makes sense for your situation.

Factors Contributing to High Interest Rates

Congress sets federal student loan interest rates, while private loan rates depend on the credit rating of the borrower (or their student loan cosigner, if they have one). But that’s not the whole story.

The federal government adjusts federal student loan rates every year based on 10-year Treasury notes, plus a fixed increase. Rates are also capped, so they can’t rise above a certain limit. Here are the formulas:

•   Direct Unsubsidized Loans for Undergraduates: 10-year Treasury + 2.05%, capped at 8.25%

•   Direct Unsubsidized Loans for Graduates: 10-year Treasury + 3.60%, capped at 9.50%

•   PLUS Loans to Graduate Students and Parents: 10-year Treasury + 4.60% Capped 10.50%

The rates for Treasury notes are set based partly on global market conditions and the state of the economy. When market conditions are in flux, the rates for Treasury notes tend to rise.

Federal student loan interest rates are fixed over the life of the loan. That means, if you get a federal student loan for your freshman year, the rate it was issued with won’t change despite Congress setting a new rate every year. If you need to take out another federal student loan for your sophomore year, however, you’ll then get the new rate, not the previous one.

Private student loan rates vary by lender and fluctuate with market trends. A borrower’s credit history also determines the rate they get for a private student loan.

Another factor is that student loans are unsecured. Unsecured loans are not tied to an asset that can serve as collateral. Secured loans, by comparison, are backed by something of value, such as a car or house, which can be seized if you default. But lenders can’t seize a degree. So student loan interest rates may be higher than secured loan rates because the lender’s risk is higher.

Comparison of Federal and Private Student Loan Interest Rates

Why are student loan interest rates so high? As noted above, private student loan rates will fluctuate with market trends and from lender to lender. They also depend on a borrower’s credit score. As of November 2024, some private student loan rates start at about 4% and go up to around 17%.

Private student loan rates for 10-year loans may be higher than the federal interest rate when you are comparing rates concurrently on offer. The rates may be lower for a loan that has a shorter term length than the standard 10 years of federal loans.

What’s more, private student loan rates and student loan refinance rates that are currently on offer can very well be lower than the federal interest rate you received at the time of getting your loan. And you can shop around with private lenders for the best interest rates.

Recommended: Student Loan Refinancing Guide

Pros and Cons of Federal and Private Student Loans

Both federal and private student loans have advantages and drawbacks.

Pros of federal student loans include:

•   Interest rates for federal loans are fixed over the life of the loan

•   The rates for federal loans may be lower than the rates you might get for private student loans

•   Depending on the type of federal loan you have, the government may pay your interest while you are in school and during the six-month grace period after graduation

•   Federal loans have federal programs and protections such as income-driven repayment plans and federal deferment options

Cons of federal student loans include:

•   You can’t shop around for interest rates

•   If you take out a new loan in subsequent years, you may get a higher rate than you got with your initial loans

•   Borrowing limits may be lower compared to private student loans

Pros of private student loans include:

•   You can shop around with different private lenders for lower rates

•   Borrowers (or cosigners) with very good or excellent credit can get lower interest rates

•   May offer higher borrowing limits than federal loans, spending on what a borrower is eligible for

Cons of private student loans include:

•   Borrowers with poor credit will get higher interest rates or may not be able to qualify for a loan

•   If the loan has a variable interest rate, it may rise over time

•   Private loan student holders don’t have access to the same programs and protections that federal student loan borrowers do

•   Deferment and forbearance options (if any) depend on the lender

Interest Rates for Graduate and Professional Degrees

For graduate students and those pursuing advanced professional degrees, interest rates on federal Direct PLUS loans and Direct Unsubsidized Loans for graduate and professional students are substantially higher than the interest rate for Direct Subsidized and Unsubsidized loans for undergrads.

For the 2024-2025 school year, the interest rates are:

Direct PLUS loan: 9.08%
Direct Unsubsidized loans for graduate and professional students: 8.08%
Direct Subsidized and Unsubsidized loans for undergraduate students: 6.53%

The higher rates on loans for graduate and professional students add significantly to the cost of borrowing. Not only that, the interest on these loans begins accruing immediately and while the borrower is in school, which also adds to the overall amount they’ll need to repay.

It’s worth noting that loans for graduate students have much higher borrowing limits than federal loans for undergrads. Graduate students can usually borrow up to $20,500 each year, with a lifetime cap of $138,500. Undergrad borrowers can typically borrow $5,500 for the first year, $6,500 for the second year, and $7,500 for the next two years, up to a total of $31,000.

Credit Score Impact on Private Student Loan Interest Rates

Private lenders will look at your creditworthiness when determining your interest rate. This involves considering such factors as:

•   Credit score: Lenders have different requirements when it comes to credit scores for private student loans, but many look for a score of at least 650. As a student, you may not have that high a score, and in that case, you may need a cosigner on the loan in order to be approved.

•   Credit history: When entering college, most students have little to no credit history. That means the lender could be unsure of their ability to repay the loan since students don’t typically have a history of paying any loans. This can lead to a higher interest rate.

•   Your cosigner’s finances: Since many private student loan applicants are relatively new to debt and have no credit history, they might be required to provide a cosigner, as previously mentioned. A cosigner shares the burden of debt with you, meaning they’re also on the hook to pay it back if you can’t. A cosigner with a strong credit history can potentially help secure a lower interest rate on private student loans.

To help build your credit as a student, having student loans can help. Managing your student loans responsibly is a good way to help establish credit.

In addition, you might consider getting a credit card with a lower line of credit and use it to cover a few small expenses such as groceries and transportation. Be sure to pay your bill on time each month and in full if you can. Strategies like these can help you build credit over time.

Strategies to Pay Off Student Loans Faster

Whether you’re still in school or you’ve just graduated, you have options that may save you money. But it’s important to be proactive. Here are some potential actions you could take:

If You’re Still in College or Grad School

Borrowers with Direct Unsubsidized loans are responsible for the interest that accrues while they’re in school and immediately after. They don’t have to make payments while enrolled, but not making payments means that, in certain situations, interest may “capitalize” — that is, it will be added to the principal. In other words, a borrower would be paying interest on the interest.

To save yourself money on interest, consider making interest-only payments during school until your full repayment period begins after graduation. It will take a small bite out of your budget now, but it can save you money in the long run.

If you have Direct Subsidized loans, no interest will accrue until your grace period ends.

If You Graduated

Borrowers are automatically placed on the standard repayment plan, unless they select another option. The standard repayment plan spreads repayment over 10 years. Other options, such as the extended plan, extend the repayment term, which can make payments more manageable in the present, but that means you may pay more in interest over the life of the loan.

With an income-driven repayment (IDR) plan, your monthly student loan payments are based on your income and family size. Your monthly payments are typically a percentage of your discretionary income, which usually means you’ll have lower payments. At the end of the repayment period, which is 20 or 25 years, depending on the IDR plan, your remaining loan balance is forgiven.

Federal Student Loan Forgiveness

You could also explore student loan forgiveness through a state or federal program. Borrowers with federal student loans who work in public service may be eligible for the Public Service Loan Forgiveness (PSLF) program. If you work for a qualifying employer such as a not-for-profit organization or the government, PSLF may forgive the remaining balance on your eligible Direct loans after 120 qualifying payments are made under an IDR plan or the standard 10 year repayment plan.

In addition, check with your state to find out what loan forgiveness programs they may offer.

Refinancing Student Loans

Refinancing is one way to deal with high-interest student loan debt if you don’t qualify for federal protections. You can potentially lower your interest rate or your monthly payments.

If you’re considering refinancing to save money, you could be a strong candidate if you’ve strengthened your credit since you first took out your loans. Unlike when you were first headed to college, you may now have a credit history for lenders to take into account. If you’ve never missed a payment and have continually built your credit, you might qualify for a lower interest rate.

Having a stable income can also help. Being able to show a consistent salary to a private lender may help make you a less risky investment, which in turn could also help you secure a more competitive interest rate.

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

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

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SoFi Student 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.

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

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

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

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

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

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As a student, you must submit a new Federal Application for Student Aid (FAFSA) each school year to learn the types of federal aid you qualify for, including federal student loans, grants, and work-study programs. Many colleges and states, as well as other student aid programs, use your FAFSA to determine what aid you may be eligible for. So the FAFSA is worth submitting even if you’re not expecting to receive federal aid.

The FAFSA for the 2025-2026 academic year opened on November 21, 2024, and it closes on June 30, 2026. However, it’s best to complete the form as soon as possible since some state and school scholarship programs have different deadlines.

Keep reading for detailed instructions on how to complete the 2025-2026 FAFSA. We’ll walk you through the required fields and highlight changes from previous forms.

Documents You’ll Need

Before you sit down to fill out the online FAFSA application , it’s best to have the following documents or information handy, especially if you want to fill out the FAFSA as quickly as possible. Documents needed include:

•   Completed tax returns

•   Parents’ SSNs if you’re a dependent student

•   Child support records, if applicable

•   Current cash, savings, and checking account balances

•   Investment, business, or farm net worth

Recommended: Who Qualifies for FAFSA? FAFSA Requirements

How to Fill Out the FAFSA in 6 Steps

Ready to file the FAFSA? First, check your watch.

Make sure you have enough time to fill out the form. Most people find that it takes less than one hour to complete, including gathering the personal and financial information you need.

Here’s how to fill out the FAFSA step by step.

Step 1: Create an Account

The preferred way to complete the FAFSA is online. You can do this for free — you should never pay any site to file the FAFSA for you.

Create a StudentAid.gov account before you start the FAFSA. Ensure that your name and Social Security number (SSN) look exactly as they do on your Social Security card.

The individuals who must include information on the form — a spouse, a biological or adoptive parent, or your parent’s spouse — must all have an FSA ID (account username and password). However, contributors without an SSN can create an account to fill out their portion of the 2025-2026 form.

A contributor is anyone required to provide information and approval to have their federal tax information transferred directly into the FAFSA form. This person, while not required to pay for a student’s college education, may include a student’s spouse, a biological or adoptive parent, or a stepparent.

Step 2: Provide Personal Information

After logging in, select either “student” or “parent,” depending on whether you are the student or parent filling out the form. We’ll assume that you’re filling it out as a dependent student for the next few steps.

What is a dependent student vs. independent student? Check out the full list of dependent vs. independent qualifications. Independent students will also answer the same basic set of questions and add spouse information if they are married.

You’ll start by filling out basic personal information, such as:

•   Name

•   Birthdate

•   SSN

•   Email address

•   Mobile phone number

•   Mailing address

Next, as a dependent student, you’ll indicate personal circumstances, such as marital status, college or career school plans, and any unusual personal circumstances.

You’ll answer questions about your parents and family size and “invite” your parents to fill out the FAFSA information. You’ll also answer questions about:

•   Gender identity (though you can select “prefer not to answer”)

•   Race and ethnicity (you can also select “prefer not to answer” here)

•   Citizenship status

•   Parent education status

•   Whether a parent was killed in the line of duty

•   Student’s high school completion status

•   High school information

•   Any federal benefits received

Step 3: Add Dependent Student Financials

Next, you’ll fill out information about your tax filing status, tax returns, and assets (including any cash, savings, and checking accounts you have, or businesses, investments, farms, and/or real estate).

Step 4: Select Colleges

In this section, select the colleges you’re considering. You can choose up to 20 colleges or universities where you want your FAFSA recognized. You can search based on city, state, or college name.

Step 5: Review Page and Add Signature

The review page shows the responses you’ve added to the FAFSA. You can review all responses by clicking “Expand All” or show each section individually. Select the question’s hyperlink to edit. Once you invite a parent to the form, you can see the status of the parent invitation.

Finally, you acknowledge the terms and conditions of the FAFSA form and sign, which means you’ve submitted your section of the FAFSA form. It’s not considered complete, however, until a parent signs their portion.

Step 6: Parents Add Information

Once a dependent student invites a parent and they log in, the parent will receive information about onboarding. They will add their:

•   Name

•   Birthdate

•   SSN (if they have one)

•   Email address

•   Mobile phone number

•   Mailing address

The parent must provide consent to transfer federal tax information directly from the IRS into the Parent Financials section.

The FAFSA form will also ask the parent about:

•   Demographic information

•   Marital status

•   State of legal residence

•   Finances

•   Federal benefits

•   Tax filing status

•   Family size

•   Number of kids in college in the household

•   Tax return information

•   Assets

Next, the FAFSA will prompt questions about that parent’s spouse or partner, walk through a review page similar to the student review page, and ask for a signature where the parent acknowledges the terms and conditions of the FAFSA form. Finally, the parent signs that section.

Can a parent fill out the entire form on a student’s behalf, without student consent or signature?

Yes. A parent can fill out the entire FAFSA on behalf of the student indicating from the very beginning that they are filling it out as a parent.

If You Need Additional Help Filling Out the FAFSA

If you need help filling out the FAFSA form, you can click on the white question mark icon next to each FAFSA question to reveal a tip on how to answer that question. You can also learn more about the recently updated form and get the answers to frequently asked questions at the FAFSA Help Center, watch the FAFSA tutorial video, or chat with Aidan, the virtual assistant.

In addition, you can contact the Federal Student Aid Information Center. The Department of Education says it has added more staff to address applicants’ questions, and expanded the hours to provide help.

You can also look at our FAFSA guide for information on the FAFSA process. Finally, you can get help through the financial aid office at the college or career/trade school you plan to attend. They will often walk through the form with you.

Recommended: Avoid These Common FAFSA Mistakes

What Happens After You Submit the FAFSA?

After you hit the “submit” button, your form should be processed in one to three days. At that point, you should receive a copy of your FAFSA submission summary, which summarizes the information you included on your FAFSA form. You can check the status of your FAFSA at any time by logging into your account at StudentAid.gov and clicking on your FAFSA submission in the “My Activity” section of your dashboard.

The FAFSA submission summary will also include your Student Aid Index (SAI), which lets schools determine the amount of aid you can receive. It also helps each school determine the financial aid you can receive from that particular institution. The financial aid office at each school will send you a financial aid award letter, which may include types of government aid such as:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Work-study

•   Pell Grants

•   TEACH Grants

•   Federal Supplemental Educational Opportunity Grants (FSEOG)

Recommended: How Financial Aid Works

Who Should Complete the FAFSA?

Anyone who could benefit from college financial aid has nothing to lose by filling out the FAFSA. Many students leave money on the table every year by failing to complete it, and low-income families are often less likely to complete the form than wealthier ones.

Even if you’re not eligible for federal aid, it’s worth your while to complete the FAFSA because most schools and states use FAFSA information to award non-federal aid. Non-federal aid includes scholarships, state aid, employee-sponsored aid, and more. Our scholarship tool can help you find scholarships and other aid opportunities that may be available.

To qualify for federal grants, work-study, and different types of student loans, you must be a U.S. citizen or an eligible noncitizen. You’ll need a valid SSN, with few exceptions, and a high school diploma, GED, or another recognized equivalent. You’ll also need to enroll in an eligible educational program and maintain satisfactory academic progress.

You may become ineligible for federal aid if you owe money on a previous federal student grant or are in default on a previous federal student loan.

Some types of federal aid are available only to people who demonstrate financial need. This includes the Federal Pell Grant and Direct Subsidized Loans. For the latter, the government pays the accrued interest while the borrower is in college or during most of their deferment periods.

What If I Don’t Qualify for Any or Enough Aid?

The amount of FAFSA money you receive depends on a variety of factors, including the institution you’re applying to, your assets, your parents’ assets, and more.

Merit aid, based on academic excellence, talent, and/or certain achievements, is also available. Some colleges won’t consider you for any of their merit scholarships until you’ve submitted the FAFSA, according to the Department of Education. Businesses, nonprofits, cultural organizations, and local groups also offer merit scholarships.

In addition, you can look into state grants and scholarships. Every state has its own money and process for distributing aid. Some only require a completed FAFSA; others, a separate application.

Then, there are private student loans, which are issued by banks, credit unions, and online lenders (as opposed to the government). Although private student loans don’t come with the benefits and protections that federal student loans have — like income-driven repayment plans and federal forbearance — they may help bridge funding gaps.

You can check to see what various lenders offer and what types of student loans you’d qualify for.

The Takeaway

Completing the FAFSA application doesn’t have to take hours of your time. In fact, it typically takes less than an hour to complete from start to finish. Use our guide to walk through how to fill out the FAFSA step by step in order to see how much federal aid you’ll qualify for and what types of aid you’re eligible to receive.

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. This can help you find an option that works for your financial plan and budget.

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

FAQ

What’s the due date for the new FAFSA?

The FAFSA form for the 2025-2026 academic year must be submitted by 11:59pm central time (CT) on June 30, 2026. You can submit corrections or updates by 11:59pm CT on Sept. 13, 2026.

Can I fill out FAFSA myself?

Yes, students can complete the FAFSA on their own. The new FAFSA application instructions are easier to understand, and the Department of Education says it has modernized the FAFSA process and improved the user experience and functionality in filling out the online form. You can then invite your parents to enter their information.

How long does it take to fill out the FAFSA?

It typically takes less than an hour to fill out the FAFSA, including reading the FAFSA application instructions. However, it may take you longer to complete if you don’t gather important information ahead of time, such as your Social Security numbers and tax returns.

What disqualifies you from getting FAFSA?

To file the FAFSA, you must meet certain FAFSA requirements. For example, you must demonstrate financial need for need-based federal student aid programs, be a U.S. citizen or eligible noncitizen, have a valid SSN except in certain situations, be enrolled or accepted at an eligible institution as a regular student, maintain satisfactory academic progress, provide consent for federal tax information to go to the FAFSA, sign the certification statement on the FAFSA, and show you qualify to obtain higher education.

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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.

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

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

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

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.

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Almost 43 million Americans have student loan debt, and borrowers owe an average of $37,853, according to the Education Data Initiative. If you’re grappling with student loan payments and feeling overwhelmed, you may be wondering, “Should I sell my house to pay off debt?”

While the idea may be tempting, it has disadvantages and might negatively affect your financial situation. Read on to learn the benefits and drawbacks of selling your house to pay off student loans, and discover alternative options for repaying your debt.

Understanding the Benefits of Selling Your House to Pay Off Student Loans

A mortgage is the biggest debt most Americans have, and student loans are one of the next biggest. It’s understandable then that some borrowers might consider selling one to help pay off the other. Potential benefits of selling a home include:

•   Getting a lump sum. When you sell your home, you may end up with a decent chunk of money. Of course, you’ll have to pay off your mortgage first, but as long as you have more value in your house than what you owe on your mortgage, you can take the remaining proceeds of the sale and apply it to your student loans. Depending on how much you get from the sale of the property and how much you owe on your loans, you may be able to pay off your student loan debt completely. And if you can’t pay off your loans completely, you may be able to pay off some of them and consider student loan refinancing to help manage the rest.

•   Eliminating monthly payments. By selling your house and paying off your student loans, you get rid of two substantial monthly payments that may have fairly high interest rates. With student loans, some of that interest may have accrued over time. For instance, if you have federal Direct Unsubsidized loans, the interest begins to accrue immediately after the loan is disbursed, and can add up to a sizable amount over time.

•   A financial fresh start. Selling a house can also be a new beginning financially. It could help you get out from under a costly mortgage. You can look for a less expensive place to live, and create a new budget accordingly. Repaying student loans will further dial down the debt you owe. You may also be able to direct more money to your child’s college fund or save more for retirement.

Recommended: Guide to Student Loan Refinancing

Factors to Consider When Selling Your House to Pay Off Student Loans

Along with the potential upsides, however, there are a number of disadvantages to selling your house. It’s important to understand the drawbacks before making such a big decision.

How much you can get for your house is one of the most important factors when determining whether it makes sense to sell. The price you can ask for your home depends on market conditions, supply and demand, and mortgage rates, among other things. Do some research to figure out the current market value of your home. Look at what comparable homes in your area are selling for. Think about whether you could make enough from the sale of your house to pay off what you owe on your mortgage and repay your student loans.

Next, since you’ll need to find a new place to live, explore the different housing options available. You might need to downsize to a more affordable home, move to a less expensive area, or rent instead of buying.

Finally, think about how selling your home could affect your lifestyle. You might end up in a smaller space with less living space, which means you may have to sell some of your furniture. If you have to relocate to a different area, your commute to work might get longer. Think through the various scenarios and make sure you’re comfortable with them.

Navigating the Process of Selling Your House to Pay Off Student Loans

If you decide to move ahead with selling your house, finding the right real estate agent can be critical. Hiring a professional who knows the market can help you price your home for a sale and take some of the stress out of what can be a complex process. Just be aware that there will be costs involved, including a commission to the agent.

You’ll also need to prepare your house for a sale. Clean and declutter your home to make it look bigger and more appealing. Outdoors, mow the lawn, trim the bushes, and generally tidy up so that your house has curb appeal.

Familiarize yourself with the legal and financial aspects of a home sale. For instance, once you have an offer on the house, a potential buyer might ask you to make repairs before they purchase the home. There are also closing costs to consider, as well as the real estate agent’s commission. And if you sell your house for more than you paid for it, you may have to pay capital gains tax (see more on that below). Make sure you understand what’s involved in selling your home and what you are responsible for legally and financially.

Mitigating Challenges and Risks When Selling Your House to Pay Off Student Loans

Talking about selling your home to pay off student loans is one thing. Actually doing it is another. You may feel sentimental about your house, especially if you’ve lived there for a while. As much as you can, try to emotionally detach yourself from your home. Focus instead on the positive, such as getting out of debt and the fresh start ahead of you.

On a more practical level, there may be a capital gains tax on the profit you make from the sale of your home if you sell it for more than you paid for it. Capital gains tax generally depends on your taxable income, your filing status, and how long you owned the home before you sold it. There is an IRS exemption rule, often referred to as a primary residence exclusion, that may help you avoid paying some or all of the capital gains tax. Do some research and check with a financial professional to see if you might qualify for the exclusion.

Exploring Alternatives to Selling Your House to Pay Off Student Loans

Rather than selling your house to pay off student loans, there are some other ways to help manage, and potentially even reduce, your student loan payments. Here are some options to consider.

Student Loan Refinancing

If you have private student loans, or a combination of federal and private loans, student loan refinancing lets you combine them into one private loan with a new interest rate and loan terms. Ideally, you might be able to secure a new loan with a lower rate and more favorable terms. If you’re looking for smaller monthly payments, you may be able to get a longer loan term. However, a longer term means you will likely pay more in interest overall since you are extending the life of the loan.

On the other hand, if your goal is to refinance student loans to save money, you might be able to get a shorter term and pay off the loan faster, helping to save on interest payments. Just be aware that if you refinance federal loans, they will no longer be eligible for federal benefits like federal forgiveness programs.

A student loan refinancing calculator can help you determine if refinancing makes sense for you.

Student Loan Consolidation

If you have federal student loans, a federal Direct Consolidation loan allows you to combine all your loans into one new loan, which can lower your monthly payments by lengthening your loan term. The interest rate on the loan will not be lower — it will be a weighted average of the combined interest rates of all of your consolidated loans. Consolidation can streamline your loan payments, and your loans will still have access to federal benefits and protections. However, a longer loan term means you’ll pay more in interest over the life of the loan.

Income-driven Repayment Plans

With an income-driven repayment (IDR) plan, your monthly student loan payments are based on your income and family size. Your monthly payments are a percentage of your discretionary income, which usually means they’ll be lower. At the end of the 20- or 25-year repayment period, depending on the IDR plan, your remaining loan balance will be forgiven.

Loan Forgiveness Programs

You might be able to qualify for student loan forgiveness through a state or federal program. For instance, with Public Service Loan Forgiveness (PSLF) program, borrowers with federal student loans who work for a qualifying employer such as a not-for-profit organization or the government may have the remaining balance on their eligible Direct loans forgiven after 120 qualifying payments under an IDR plan or the standard 10 year repayment plan.

Also, be sure to check with your state to find out what loan forgiveness programs they might offer.

The Takeaway

Student loan debt can be a major financial burden for borrowers, and selling your home to get out from under that obligation may sound appealing. But selling your house is a major decision. You may be eliminating a mortgage, but you’ll have to find a new affordable place to live. Plus, there are costs involved with the sale of a home and there may be tax implications to deal with as well. Weigh all the pros and cons carefully before selling your home to pay off student loans.

And remember, there are other ways to manage student loan debt, including loan forgiveness, income-driven repayment, and student loan refinancing. Explore all the different options to decide what works best for you. You may be able to reduce your loan payments and keep your home.

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

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

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Photo credit: iStock/Quils

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.

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.

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.

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

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

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

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Student loan borrowers with a good credit score generally have a better chance of qualifying for student loan refinancing. FICO®, the credit scoring model, considers a score of 670 to 739 to be good. Yet according to the most recent report by the Federal Reserve Bank of New York, the average credit score of student loan borrowers was 656, which falls short.

The higher your credit score, the more likely you are to be approved for refinancing, and also to get a lower interest rate and favorable loan terms. Here’s what you need to know about your credit score and student loan refinancing.

Understanding the Credit Score Requirement

Your credit score is important because it gives lenders a synopsis of your borrowing and repayment habits. It’s based on information from your credit report, which is a highly detailed record of activity on all of your credit accounts. A credit score tells lenders how well you’ve managed your credit and repayments thus far.

With student loan refinancing, many lenders are looking for a good credit score. That’s because a higher score generally indicates that you’re likely to repay your debts on time. FICO calls a credit score of 670 to 739 a good score, while VantageScore®, another commonly used credit scoring model, designates a good credit range as 661 to 780.

Some lenders have more flexible credit score requirements than others, and they may set what’s called a minimum credit score requirement. This is the lowest eligible credit score for which they’re willing to approve a borrower for student loan refinancing.
However, higher is usually better when it comes to a credit score for refinancing, regardless of the scoring model that’s used. If your credit score exceeds the good range, and is considered “very good” or “excellent,” you may be more likely to qualify for student loan refinancing. This also improves your chances of getting a lower interest rate and favorable terms, which are important when you’re refinancing student loans to save money.

Recommended: Guide to Refinancing Private Student Loans

Additional Requirements for Refinancing

In addition to your credit score for a student loan, lenders have other requirements you’ll need to meet, whether you’re refinancing private student loans or federal loans. These eligibility requirements include:

Income

Lenders look for borrowers with a stable income. This indicates that you consistently have enough money coming in to pay your bills. You will likely have to provide lenders with proof of your employment and income, such as pay stubs.

If you’re a contract worker or freelancer whose income is more sporadic, you may need to show a lender your tax returns or bank account statements to show that you have enough funds in your bank account.
Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is a percentage that shows how much of your income is going to bills and other debts versus how much income is coming in each month. The lower your DTI, the better, because it indicates that you have enough money to pay your debts, making you less of a risk to lenders.

To calculate your DTI, add together your monthly debts and divide that number by your gross monthly income (your income before taxes). Multiply the resulting figure by 100 to get a percentage, and that’s your DTI.

Aim to get your DTI to below 50%, and pay off as much debt as you can before you apply for student loan refinancing.

Credit History

In addition to your credit score, lenders will also look at your credit history, which is the age of your credit accounts. Having some active older credit accounts shows that you have a solid pattern of borrowing money and repaying it on time.

Minimum Refinancing Amount

Lenders typically have minimum refinancing amounts. This is the outstanding balance on your loans that you want to refinance. For some lenders, the minimum refinancing amount is between $5,000 and $10,000. For others, it may be higher or lower. Lenders set minimums to ensure that they will earn enough interest on the loan.

Recommended: Student Loan Refinancing Calculator

Strengthen Your Credit Score for Refinancing

If your credit score isn’t high enough to meet a lender’s minimum score requirement, you can work on strengthening your score and apply for refinancing at a later date. The following strategies may help you build credit over time.

Make Timely Payments

Making full, on-time payments on your existing credit accounts is the most impactful way to improve your credit. This factor accounts for 35% of your FICO credit score calculation and is at the forefront of what lenders look at when evaluating your eligibility.

Lower Your Credit Utilization Ratio

This is the ratio of how much outstanding debt you owe, compared to your available credit. Credit utilization ratio accounts for 30% of your FICO score. Keeping your credit utilization low can be an indicator that, while you have access to credit, you’re not overspending.

Maintain Your Credit History

A factor that’s moderately important when it comes to your FICO score calculation is the age of your active accounts. Keeping older accounts active and in good standing shows that you’re a steady borrower who makes their payments.

Keep a Balanced Credit Mix

As you’re establishing credit, having revolving accounts such as credit cards, as well as installment credit like student loans or a car loan, shows you can handle different types of credit. This factor affects 10% of your credit score calculation.

Alternatives to Refinancing

If your credit isn’t strong enough for you to qualify for student loan refinancing, you have a few other options to help you manage your student loan payments. Some ideas to explore include:

•  Loan forgiveness programs. There are federal and state student loan forgiveness programs. For instance, the Public Service Loan Forgiveness (PSLF) program is for borrowers who work in public service for a qualifying employer such as a not-for-profit organization or the government. For those who are eligible, PSLF forgives the remaining balance on Direct loans after 120 qualifying payments are made under an IDR plan or the standard 10-year repayment plan.

  Individual states may offer their own forgiveness programs. Check with your state to find out what’s available where you live.

•  Income-driven repayment plans. You may be able to reduce your federal loan monthly payment with an income-driven repayment (IDR) plan, which bases your monthly student loan payments on your income and family size. Your monthly payments are typically a percentage of your discretionary income, which usually means you’ll have lower payments. At the end of the repayment period, which is 20 or 25 years, depending on the IDR plan, your remaining loan balance is forgiven.

•  Consolidation vs. refinancing: Which is right for you? Whether consolidation or refinancing is right for you depends on the type of student loans you have. If you have federal student loans, a federal Direct Consolidation loan loan allows you to combine all your loans into one new loan, which can lower your monthly payments by lengthening your loan term. The interest rate on the loan will not be lower — it will be a weighted average of the combined interest rates of all of your consolidated loans. Consolidation can simplify and streamline your loan payments, and your loans remain federal loans with access to federal benefits and protections. However, a longer loan term means you’ll pay more in interest over the life of the loan.

  If you have private student loans, or a combination of federal and private loans, student loan refinancing lets you combine them into one private loan with a new interest rate and loan terms. Ideally, depending on your financial situation, you might be able to secure a new loan with a lower rate and more favorable terms. If you’re looking for smaller monthly payments, you may be able to get a longer loan term. However, this means that you will likely pay more in interest overall since you are extending the life of the loan. On the other hand, if your goal is to refinance student loans to save money, you might be able to get a shorter term and pay off the loan faster, helping to save on interest payments.

Just be aware that if you refinance federal loans, they will no longer be eligible for federal benefits like federal forgiveness programs.

Understanding the Impact of Refinancing on Your Credit Score

Just as your credit score affects whether you qualify for refinancing, refinancing has an impact on your credit score.
When you fill out an application for refinancing, lenders do what’s called a hard credit check that usually affects your credit score temporarily. The impact is likely to be about five points of reduction to your score, which lasts up to 12 months, according to the credit bureau Experian.

After refinancing is complete, however, as long as you make on-time payments every month, your credit score might go up. Conversely, if you miss payments, or if you’re late with them, your score could be negatively affected.

It’s wise to keep your credit score as strong as possible before, during, and after refinancing. And watch out for common misconceptions about credit scores and student loan refinancing.

For instance, be sure to shop around for the best loan rates and terms. Checking to see what rate you can get on a student loan refinance, unlike filling out a formal loan application, typically involves a soft credit pull that won’t affect your credit score.

Also, if you choose to fill out refinancing applications with more than one lender, some credit scoring models may count those multiple applications as just one, as long as you apply during a short window of time, such as 14 to 45 days, which can lessen the impact to your credit.

Finally, keep paying off your existing student loans during the refinancing process. If you stop repaying them before refinancing is complete, your credit score may be negatively affected.

Making Informed Decisions About Student Loan Refinancing

As you’re considering refinancing, weigh the pros and cons of refinancing your student loans. Advantages of student loan refinancing include possibly getting a lower interest rate on your loan, adjusting the length of your payment term, and streamlining multiple loans and payments into one loan that’s easier to manage.

But remember: If you’re refinancing federal student loans, you will lose access to federal protections and programs like income-driven repayment plans. And refinancing may be difficult to qualify for on your own if you don’t have a good credit score and solid credit history, so you may need a student loan cosigner. Make the decision that’s best for your financial circumstances.

If you decide to move ahead with refinancing, be sure that your credit score is as strong as it can be. Then, shop around to compare lenders and find the best rates and terms. Once you’ve chosen a lender or two, submit an application. You’ll need to provide documentation of your income and employment, so be sure to have that paperwork on hand.

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

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

FAQS

Can I refinance with a 580 credit score?

You may be able to refinance student loans with a credit score of 580, depending on the requirements of the lender. While most lenders look for borrowers with a good credit score, which FICO® defines as 670 to 739, some lenders set a minimum credit score as low as 580. If you meet other eligibility requirements, such as having a steady income and a low debt-to-income ratio, a lender may consider you with a 580 credit score.

What is the minimum credit score for a refinance?

Each lender has its own specific requirements, including the credit score needed to refinance. While most lenders look for applicants with a good score, which starts at 670, according to FICO, some lenders set a minimum credit score, which may be as low as 580. Check with different lenders to see what their requirements are.

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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.

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.

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

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

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

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

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

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.

Find out more about SoFi Private Student Loan options.

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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.

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

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

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

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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