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Managing student loan payments can feel like a part-time job. It can be even more overwhelming if you’re experiencing financial trouble, whether that’s due to a job layoff, caring for a family member, or for another reason.

The good news is there are options available to those going through a rough financial patch, including the Economic Hardship Deferment program. But even then, it can be difficult to navigate all of the information on which deferment program you may be eligible to apply for based on the reason for your hardship and the type of student loans you have. So that’s what we’re going to discuss today.

Economic Hardship Deferment, also known as student loan financial hardship, is a program offered in certain cases on federal student loans for borrowers who are eligible and having an exceedingly difficult time making their student loan payments for financial reasons.

Below, we’ll discuss the Economic Hardship Deferment program and what it means for you and your loans, who qualifies to make a hardship claim for student loans, how to apply for the program, and whether it’s the right path for you. We’ll also cover alternatives to Economic Hardship Deferment.

What Is Economic Hardship Deferment?

Student loan deferment allows you to reduce or pause your student loan payments for a designated period of time. An Economic Hardship Deferment is awarded to those who are facing serious financial trouble, as determined by factors such as monthly income and family size.

Those approved for the program can take up to 36 consecutive months of deferment so long as they still meet the qualifications. All participants (except those in the Peace Corps) need to reapply each year.

An important distinction to understand is whether your loans will qualify for a deferment period where interest will accrue, or one where interest does not accrue. Generally, loans that are subsidized will not accrue interest during deferment, whereas an unsubsidized loan will.

In the event your loan qualifies for deferment but will continue to accrue interest, you’ll usually have two options: Make interest-only payments on the loan, or allow interest charges to rack up.

When you allow interest charges to accumulate on an unsubsidized loan, that interest will be tallied up and added to the balance of the loan at the end of the period. This is a process called “capitalization.”

Not only will you have a new, larger balance to pay off, but any future interest payments will be calculated on top of the new, higher balance, meaning you’re paying interest on top of interest. All else equal, the result is that your monthly payments will likely be even higher than they are now.

Which Loans Qualify for Economic Hardship Deferment?

This is a federal loan program, and not all federal loans qualify. Here are a few examples of loans that may qualify (and check the link below for a full, updated list of eligible loans):

•  National Direct Student Loans (NDSL Loans)

•  Federal Family Education Loans (FEEL Loans)

•  Federal Stafford Loans

•  Federal Perkins Loans

•  Federal Supplemental Loans for Students (SLS Loans)

•  Federal PLUS Loans

•  Federal Consolidation Loans

•  National Defense Student Loans

The Economic Hardship Deferment program is typically available for loans borrowed on or after July 1, 1993.

The Economic Hardship Deferment program is only available for federal student loans, so private loans borrowed through independent financial institutions won’t qualify. However, some private lenders offer their own hardship programs. If your lender offers such a program, they will have their own unique qualifications and application process.

It certainly doesn’t hurt to ask if you are in a difficult financial situation. Remember, lenders don’t want you to default on your loans, and are often willing to work with borrowers to find some sort of solution. With both federal and private loans, never hesitate to call the lender, discuss your situation, and explore options.

Who Qualifies for Economic Hardship Deferment?

To make a hardship claim for student loans, you will have to fill out paperwork and provide documentation proving that you are experiencing financial hardship. Some of the eligibility criteria for an Economic Hardship Deferment will depend on your income, family size, and the poverty income guidelines for your family size in the state where you live (150% of the state poverty level or less). It will also depend on what percentage your student loan payment is of your monthly adjusted gross income.

To qualify for Economic Hardship Deferment, you will need to provide personal information such as your name, Social Security number, and address. You’ll also need to know what type of loan you are requesting economic hardship deferment for.

Here are some examples of what you may need to prove to the loan servicer evaluating your eligibility for deferment:

  1. You’ve already been granted Economic Hardship Deferment on loans made under another federal student loan program.

  2. You’re receiving payments under a federal or state public assistance program during the time in which you request your loan deferment. Examples of such programs include Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Food Stamps/Supplemental Nutrition Assistance Program (SNAP), or other forms of state assistance.

  3. You are serving as a Peace Corp volunteer.

  4. You work full-time (30 hours per week) and your monthly income does not exceed 150% of the poverty guideline for your family size and state.

Here’s how to tell if you meet this last guideline: First, determine your family size. This includes you, your spouse, any children who receive more than half of their support from you, any unborn children who are to be born during the deferment period, and anyone else living with you for whom you provide at least half of their support.

Next, find your family size on the following table, and compare it to your annual income (divide by 12 to get your average monthly income).

These figures are from 2023 and are subject to change annually.

You are likely to qualify for the student loan financial hardship program as long as you meet one of these prerequisites. If that is the case, and you would like to pursue the option, contact your lender or student loan servicer. Tell them you would like to apply for Economic Hardship Deferment. At this point, they typically ask you a series of questions and have you fill out an Economic Hardship Deferment Request form.

Pros and Cons of Economic Hardship Deferment

Pros

For someone who is in desperate need of reprieve from their student loan payments, the program can be a godsend. You may want to consider taking advantage of this program if the alternative is defaulting on student loans, which can have a long-lasting, detrimental effect on your credit score and history.

If your loans are subsidized, there is no cost to taking an Economic Hardship Deferment.

Periods of deferment are provided to borrowers who need time to find a job, increase their income, or recover from the many myriad of life events that could leave someone in a place of need. There is no shame in this, whatsoever, but it’s a great idea to use the deferment period to work on rebuilding.

Cons

With unsubsidized loans, taking a period of deferment will make the loans in question cost more over time. Even if you make interest payments during your deferment, you aren’t chipping away at the principal, and so all of those payments are essentially a wash. If you don’t make interest payments, the total value of those unpaid interest payments will be slapped on top of the loan balance, increasing your loan balance and the amount you’ll owe in interest, over time.

When the period of deferment ends, your monthly payment will likely be higher than it is now, which may be difficult for someone who is already experiencing financial hardship. Use the program if you need it, but know it can come with some costs in the long term.

It is also extremely difficult to qualify for Economic Hardship Deferment. The program utilizes stringent criteria to determine eligibility with income review using poverty level guidelines as noted above. (For example, a single person working full-time and earning $20,000 per year and living in California who is not already on food stamps or other forms of government assistance would probably not qualify for Economic Hardship Deferment.) This makes the program unavailable to many people who are legitimately having difficulty making their loan payments.

Alternatives to Economic Hardship Deferment

Forbearance

If you do not qualify for Economic Hardship Deferment, an option is to request forbearance. Forbearance is similar to deferment, though interest accrues in all cases, and periods of forbearance generally do not exceed 12 months (and could be shorter). You’ll need to check with your loan servicer to see if you qualify.

Income Driven Repayment Plans

There are four income-driven repayment plans, including the latest SAVE plan, that help make student loan payments more affordable by reducing them to a percentage of your discretionary income. SAVE, for example, caps your payments at 5% to 10% of your income, depending on the types of loans you have. Under other plans, your payments may be capped at anywhere from 10% to 20% of your income.

IDR plans also stretch your repayment timeline out up to 25 years. If you have any debt left over after than, it’s forgiven (though it may be subject to income taxes).

Though your monthly payments will be lower, which provides some immediate relief, you will pay significantly more in interest over time. It is possible to switch to an alternative repayment plan and back again if your financial situation improves.

Public Student Loan Forgiveness (PSLF) Program

With 10 years of on-time payments at a qualifying job (like a government worker, a teacher, a doctor, or nurse at a qualifying facility), it is possible to have student loans forgiven with the PSLF program. If you go this route, you’ll usually want to switch to an income-driven repayment plan.

Student Loan Refinancing

Another option to consider for both your federal and private student loans is student loan refinancing. Refinancing is the process of switching out your loan or multiple loans with one new loan at an (ideally) lower rate of interest.

The lower rate of interest could save you money on interest payments over the life of the loan. Use a student loan refinancing calculator to see how lower interest rates affect your monthly payments.

It’s important to know that if you refinance federal loans with a private lender, you will lose access to federal student loan programs such as Economic Hardship Deferment or PSLF.

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 Free Application for Federal Student Aid (FAFSA), an online form that helps determine the amount of federal student aid given to current and prospective college students, has historically launched every year on October 1.

However, the FAFSA for the 2024-2025 school year wasn’t available until December 31, 2023. Ironically, the delay was due to an initiative to simplify the lengthy form, eliminating two-thirds of the questions.

The holdup is affecting other aspects of college admissions and financial aid. Take a look at a few ways to ensure it doesn’t impact your state and college aid, and tips for how to approach the new FAFSA application.

How Might the FAFSA Delay Affect Students?

While the federal deadline to complete the FAFSA is June 30, students are encouraged to submit their application much earlier. One reason is that state and college-based financial aid, which use the FAFSA application and disburse aid on a first-come first-served basis, have earlier deadlines.

For example, Texas and Connecticut students must file the FAFSA by March 15, 2024, for priority consideration. Filing by your state’s deadline ensures that students receive maximum consideration for limited financial aid resources. You can check the deadline for your state on the FAFSA website .

The FAFSA delay may also affect a student’s college search. After all, if you don’t hear about financial aid from a school early in the year, you may have difficulty deciding the right fit. Fortunately, many colleges recognize this issue and have pushed their acceptance deadline — typically May 1 — to May 15 or even June 1.

Recommended: What Percentage of Parents Pay for College?

3 Steps to Hit All Your Financial Aid Deadlines

Meeting your financial aid deadlines ensures that you take advantage of all opportunities.

1. Submit the FAFSA as Soon as Possible

How do you prepare for filing the FAFSA? You can look at our FAFSA 101: How to Complete the FAFSA to learn how to complete the current form. Also consider looking into college financial aid terms for parents.

Submit the FAFSA as soon as you can. Current students need to submit the FAFSA every year, and so will current high school students who plan to apply for federal, state, and institutional aid using the FAFSA.

The new version will include the following changes:

•   Fewer questions. The new FAFSA features fewer questions, decreasing application completion times.

•   Automated tax data retrieval. The new IRS Direct Data Exchange (DDX) will pull in parents’ and students’ tax information — no manual completion needed.

•   More colleges. Students can list up to 20 colleges on the FAFSA, a change from the previous maximum of 10 colleges.

•   No benefit from overlap. Previously, families with more than one child in college received additional benefits. The new FAFSA will decrease aid eligibility for middle- and high-income families with multiple children in college.

•   Types of income. The FAFSA will no longer ask about some types of untaxed income, such as cash support (from grandparents, for example) or money from a grandparent’s 529 plan.

•   Increase in Pell Grant eligibility. Pell Grants typically go to undergraduate students with exceptional financial need. More than 174,000 students will now be eligible for the grant. Students could be eligible for an additional $1.6 billion.

•   Divorced or separated parents. Currently, students who have divorced or separated parents list the parent they live with the majority of the time on the FAFSA. However, the FAFSA changes indicate that a student should list the parent that provides the most financial support.

2. Look out for Financial Aid Communications

Keep checking in for news about financial aid deadlines. Remember that you should still file the FAFSA even if you miss your state’s deadline. You may still qualify for federal aid.

School counselors and college access professionals will have information about college deadlines. If you have any questions about the FAFSA, ask your preferred college’s financial aid administrators for direction, whether you’re a prospective or current student.

Recommended: 31 Facts About FAFSA for Parents

3. Learn About Financial Aid Options

Parents should have the college money talk with their student to explain what they can and can’t afford.

Seek out scholarships and grants that are not dependent on the FAFSA.

And use a student loan calculator to decide how much you want to borrow.

The Takeaway

If you haven’t yet submitted your FAFSA form, do so as soon as possible. Some state and college financial aid deadlines are earlier than the federal deadline. Research your state deadline and stay in contact with your preferred colleges and universities.

Once 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.

Photo credit: iStock/hobo_018

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.

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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Like many Americans, you likely are carrying some student loan debt. While in an ideal world, you’d pay that debt off quickly, we all know that the real world often brings unpleasant financial surprises, unemployment, and drops in disposable income.

If you’ve suffered financial setbacks and are struggling to pay your student loans, you might be exploring options to change your repayment plan, especially now that the suspension of payments that was offered during the pandemic is over.

Will interest rates go up on student loans in 2024? It’s anyone’s guess. But if they do, that could impact how much you pay for your student loan if you refinance or change the repayment plan.

Before you take action, let’s dive deeper into your student loan repayment plan options.

Student Loan Repayment Plan Options

The U.S. Department of Education has several repayment plans for student loan debt that are based on income and family size. If your financial situation has changed since you started paying your loan years ago, you might benefit from changing the repayment plan if you qualify for another type.This could help you have a smaller monthly bill for your student loan debt or pay less in interest over the life of the loan.

Types of student loan repayment plans include:

Standard Repayment Plan

The Standard Repayment Plan is the default plan you were given when you completed your studies and started paying on your loan. The student loan interest rates you’re paying may be fixed or variable, but the plan is set up so that you’ll pay your loans off within 10 years.

The amount you pay each month isn’t based on income or any other factors. If your income hasn’t dipped since you first started paying your loan, this might be your best repayment plan option.

Income-Based (IBR) Repayment Plan

If you have seen a drop in your income, you might be eligible for an income-based repayment plan. To qualify, you’ll need to meet income requirements based on your income and the number of people in your household.

If you qualify, your monthly payment will be 10% of your discretionary income if you’re a new borrower on or after July 1, 2014, and you’ll pay the loan over 20 years.

Income-Contingent (ICR) Repayment Plan

Though the income-contingent plan is similar to the IBR plan, there are differences. With the ICR plan, you will pay the lesser of either 20% of your discretionary income each month, or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted to your income. The ICR plan lasts 25 years, and you must also meet criteria in your income and family size to qualify.

Pay As You Earn (PAYE)

With the Pay As You Earn plan, you will typically pay 10% of your discretionary income and never more than the 10-year Standard Repayment plan amount. This plan lasts 20 years.

Again, there are requirements about how much you can make to qualify.

Saving on a Valuable Education (SAVE) Repayment Plan

The Revised Pay As You Earn (REPAYE) repayment plan has been replaced by the Saving on a Valuable Education (SAVE) Plan. You’ll need to prove eligibility of your income and family size.

With this plan, you’d pay 10% of your discretionary income toward your student loan debt each month over 20 years if all the loans were for undergraduate study and 25 years if any of them were for graduate or professional study.

Recommended: What Student Loan Repayment Plan Should You Choose? Take the Quiz

Can You Change Your Student Loan Repayment Plan?

With rising student loan interest rates and a higher cost of living, you may find it difficult to continue paying your monthly student loan. If your income has dropped, you may be able to change your student loan repayment plan to one of the plans discussed above.


💡 Quick Tip: When rates are low, refinancing student loans could make a lot of sense. How much could you save? Find out using our student loan refi calculator.

How Often Can You Change Your Student Loan Repayment Plan?

There’s no cap on how many times you can change your student loan repayment plan. Be aware, though, that every time you do, the interest rate and amount you pay may change. This could be to your advantage if interest rates are low, but if they aren’t, you could end up paying more for your student loan if you change your repayment plan again and again.

Also, reducing your monthly payment may extend the number of years you pay on your loan, which means you’ll pay more in interest the longer you take to repay it. With a 10-year repayment plan, for example, you’d pay less in interest overall than you would with a 25-year plan.

How to Change Your Student Loan Repayment Plan

To change your student loan repayment plan, start by reviewing the income requirements for the repayment plans discussed above. You can also use the Department of Education’s Loan Simulator Tool to find the best repayment strategy.

Once you’ve determined which repayment plan you think is best, log into your student loan provider’s website. There should be information there to help you apply for the student loan repayment plan of your choice.
You may be required to provide proof of income, and you may need to recertify each year to continue with the plan once you’ve been approved.

Your application to change your repayment plan may take some time, so be prepared to continue to pay the previous monthly amount until it is approved. And remember: even if you have an income-based student loan repayment plan, you can always pay extra to pay off your debt faster.

Other Options for Lowering Your Student Loan Payment

There are a few drawbacks to trying to change your student loan repayment plan. The first is if you have private student loans, they won’t qualify for repayment plans offered by the U.S. Department of Education. Repayment plans are reserved for federal student loans only.

The second is if you make too much money, you may not be able to qualify for an income-based repayment plan based on your income and family size. You may still struggle to make those payments, and that could put your credit at risk if you miss a payment or two.

And finally, if you have more than one student loan, juggling multiple payments and paying several different interest rates can be stressful, and you may feel like you’ll never pay them all off.

If you identify with one of these scenarios, one option is to refinance your student loans. Whether you have private or public loans, refinancing them with one new loan helps you drop down to just one monthly payment and one interest rate. Ideally, you’ll pay less in interest overall and be able to pay off your student debt faster.

Keep in mind, though, that if you refinance federal student loans, you lose access to federal benefits, including income-based repayment plans and student loan forgiveness. Make sure you aren’t currently using or planning on using federal benefits before refinancing.


💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.

More Student Loan Refinancing Tips

Take control of your finances by choosing the best strategy to pay off your student loans faster. SoFi’s got refinancing options that can help you fast-track to paying off that debt in a flash.

FAQ

Can I change my repayment plan for student loans?

Yes, you can change your repayment plan for student loans by consolidating your loans, refinancing them, or choosing an income-based repayment plan if you qualify. Keep in mind that income-based repayment plans are reserved for federal student loans only.

Can you change your loan repayment plan at any time?

Yes, there’s no limit to how many times or when you can change your student loan repayment plan.

Can I switch IDR plans?

As long as you qualify for a different income-based student loan repayment plan, you are able to switch plans at any time.

Photo credit: iStock/AlexSecret

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.

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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Almost one quarter of American children are being raised in a single-parent household, according to the US Census Bureau, Almost 80% are headed by single mothers.

As you might guess, single-parent households may have less financial resources than those with two parents. And if you’re trying to make ends meet for yourself and your child (or kids), it can be hard to stick to your student loan payment plan.

So how can you pay off your student loans as a single parent? This guide can help. You’ll learn about many of the options available. The information you’re about to read can help you make the best choice for handling student loans.

What Are Student Loans?

A student loan is money you borrow for educational expenses, which you must pay back with interest. Loans are unlike scholarships, which are “free money” that you don’t have to pay back.

There are two main types of student loans: federal and private loans.

•   Federal loans: Federal student loans are loans that you borrow from the federal government, or the Department of Education, to pay for college.

◦   Subsidized student loans are awarded on the basis of student need. The government absorbs some of the interest payments on the loan, making it a better deal for students. Typically, the borrower begins to pay these loans back after a six-month grace period post-graduation.

◦   Unsubsidized loans, on the other hand, don’t involve the government shouldering some of the interest payments, and interest can begin to accrue while the student is in school.

•   Private loans: Private loans come from private organizations, such as banks or credit unions. Interest rates are often determined by creditworthiness, which can make them more or less affordable than federal loans depending on your situation.


💡 Quick Tip: Often, the main goal of student loan refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing makes sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections.

Student Loan Solutions for Single Parents

The most important thing to remember is that you have several options as a single parent when deciding how to handle student loans. Below, you’ll get details on parent loan forgiveness, deferral and forbearance, increasing your income, public assistance, scholarships, and refinancing your student loans.

This advice can also be helpful if you’re thinking about paying student loans and starting a family at the same time.

1. Single Parent Loan Forgiveness

While there’s no program that exists explicitly called “single parent student loan forgiveness,” there are some income-driven repayment (IDR) plan options. You won’t have to pay your remaining balance under all four plans if your loans aren’t fully repaid at the end of the indicated repayment period.

There are four different IDR plans (only for federal loans) you can apply for give you a monthly payment based on your income and family size:

•   Saving on a Valuable Education (SAVE) Plan: The new SAVE Plan considers your income and family size to determine your monthly payment. Your payments may be based on a smaller portion of your adjusted gross income (AGI) and are typically designed so that no one with an undergraduate loan has to pay more than 5% of their discretionary income towards their student debt. The government may cover the interest accrued monthly and can keep your balance from growing. The plan typically lasts 20 years for loans received for undergraduate study and 25 years for loans received for graduate or professional study.

•   Pay As You Earn (PAYE) Repayment Plan: The PAYE Plan is a repayment plan with monthly payments about equal to 10% of your discretionary income, divided by 12. Typically, those who can use this plan will never pay more than the 10-year Standard Repayment amount. The term is usually 20 years with PAYE.

•   Income-Based Repayment (IBR) Plan: The IBR Plan is a repayment plan with monthly payments equal to about 15% or 10% (after July 1, 2014) of your discretionary income, divided by 12. With this plan, a student pays loans 20 years if they’re a new borrower on or after July 1, 2014, or 25 years if they’re not a new borrower on or after July 1, 2014.

•   Income-Contingent Repayment (ICR) Plan: You’ll pay for 25 years with the ICR Plan. The ICR Plan assigns monthly payments based on the lesser of:

◦   Your repayment plan payment with a fixed monthly payment over 12 years, adjusted based on your income, or

◦   Twenty percent of 20% of your discretionary income, divided by 12.

•   You may also take advantage of the Public Service Loan Forgiveness (PSLF) Program, which means that if you work for an eligible nonprofit or government organization, you may qualify the remaining balance on Direct Loans after 10 years — 120 monthly payments — under a repayment plan like the ones above for single mom student loan forgiveness.

On the topic of forgiveness, note that President Biden’s targeted student loan forgiveness plan was struck down by the US Supreme Court in June of 2023 and therefore does not offer an avenue to reduce student loan debt.

2. Student Loan Deferral and Forbearance

Single parents may consider applying for student loan forbearance or deferral, meaning that you temporarily qualify for a suspension of your loans. But what’s the difference between the two?

•   In deferment, interest doesn’t accrue on certain loans.

•   Interest does accrue on all loans during a forbearance.

It’s worth mentioning that forbearance changes went into effect in fall of 2023, after there had been a pause since March 2020, as the pandemic unfolded. Student loan interest accrual restarted on September 1, 2023, and payments were once again due starting on October 1, 2023.

In addition to economic hardship, single parents may be able to get a deferment for reasons related to:

•   Cancer treatment

•   Graduate fellowship programs or half-time school enrollment

•   Military service or post-active duty service

•   Parent PLUS borrower with a student enrolled in school

•   Rehabilitation training program

•   Unemployment.

Note that you can only apply deferral and forbearance toward federal student loans, not private student loans. Log in to the Federal Student Aid website to learn more about and apply for various plans under the Department of Education.

3. Increase Your Income

Single parents may consider adding to their income to help make student loan payments or to have extra income on hand. Beyond picking up extra hours at your current job or asking for a raise, you may want to consider picking up a side hustle, renting out an extra room in your house, going back to school to get a better job, or looking for a new job. There are myriad ways to increase your income, especially since you only have one income stream.

Also consider various ways to budget as a single parent.

4. Public Assistance

Public assistance may be one way to help you reserve a pool of money specifically to pay for necessities, including student loan payments.

Public assistance can come in many forms, including food benefits (SNAP, D-SNAP, and WIC for women, infants, and children), home benefits (rental, home buying, and home repair assistance programs), help with utility bills, Temporary Assistance for Needy Families (TANF), health insurance, and disability benefits.

Every state has specific rules about who can qualify for various benefits. Learn more about benefits from your
state social service agencies.

5. Scholarships

If you’re thinking about returning to school as a single parent to increase your income, consider applying for scholarships. This free source of money for college keeps you from having to borrow money for college.

Where do scholarships come from? They can come from the college or institution where you plan to attend, clubs and organizations, your employer, and other sources. Also consider asking your current employer whether they can help you pay for college through educational benefits, such as an employee tuition reimbursement program.

6. Refinance Your Student Loans

When you refinance your student loans, you “repackage” your private and/or federal student loans with a private lender with the goal of lowering the interest rate or accessing a lower monthly payment via an extended repayment term. (Note that if you do extend the term of the loan, you may pay more interest over the life of the loan.)

Also note that you cannot refinance your student loans under the federal student loan program. If you do refinance with a private loan, you will forfeit benefits and protections of federal loans, like IDR payments. To qualify for the best refinance rates, you’ll typically need to have a solid credit history and stable income.

If you currently have private student loans or are thinking of refinancing, shop around to see what offers best suit your situation and your needs.

Helping Pay Student Loans for Single Parents

Certain websites highlight ways single parents can pay for education, including grants and scholarships. For instance, the website SingleMothersGrants.org mentions such resources as:

•   Soroptimist International

•   The Amber Foundation

•   Kickass Single Mom Grant from Wealthy Single Mommy

•   Idea Cafe

•   Halstead Grant

•   Wal-Mart Foundation’s Community Grant Program

•   The Andy Warhol Foundation for the Visual Arts.

Be cautious that you don’t fall prey to fake scholarships; sadly, they do exist. You should never have to pay money to enter a scholarship competition, for example. Nobody intentionally wades into the financial mistakes parents make, so do be wary when looking into ways to finance educational expenses and avoid scammers.

Refinancing Student Loans With SoFi

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

FAQ

Do single moms qualify for student loan forgiveness?

Yes, single moms can qualify for student loan forgiveness through two main programs: Public Service Loan Forgiveness (PSLF) and income-driven repayment programs. To find out if you qualify for either one of these programs, apply or contact your loan servicer directly for more information.

How do single moms pay off student loans?

If single moms can’t make their student loan payments, they can access various programs through the Federal Student Aid program for federal loans. They can also ask their private lender for more options available to them. Refinancing of both federal and existing student loans is also possible; just know that if you refinance a federal loan with a private loan, you forfeit federal benefits and protections. Also, if you extend the period of loan repayment when refinancing, you may pay more interest over the life of the loan.

Is paying off a student loan considered a gift?

If someone else pays off your student loans, yes, it is considered a gift. This type of gift would churn out a gift tax for any gift above $17,000, the gift exclusion cutoff for 2023. In other words, both parents can contribute $34,000 per calendar year toward a child’s student loans without getting charged a gift tax.

Photo credit: iStock/Drazen Zigic

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 Free Application for Federal Student Aid, or FAFSA®, is a form students should fill out each school year to apply for college grants, work-study programs, federal student loans, and certain state-based aid.

Typically, the FAFSA becomes available on October 1 for the following academic year. The 2024-2025 academic year was an exception. Due to form revisions and adjustments to how student aid is calculated, the application wasn’t available until December 31, 2023. The three-month delay had a domino effect, pushing out deadlines for college admissions and financial aid offers.

For the 2025-2026 school year, the FAFSA will be released in phases. Some students will get access on October 1, 2024, with the remainder able to apply on or before December 1.

Try not to let the staggered rollout throw you off your game. If you fail to complete the form or miss the FAFSA deadline, you may not receive financial aid that could help you pay for college. In fact, you should aim to fill out your FAFSA as early as possible, since there is a limited amount of aid available.

Read on for updated federal, state, and institutional FAFSA deadlines to know.

What Is the FAFSA?

The FAFSA is the online form that you must fill out to apply for financial aid from the federal government, state governments, and most colleges and universities. The form requires students and their parents to submit information about household income and assets. That information is used to calculate financial need and determine how much aid will be made available.

If you are a dependent student, you will need to submit your parents’, as well as your own, financial information. If you are considered independent, you are not required to submit your parents’ financial information.

If you are already in school, remember that the FAFSA must be filled out every year, even if your income and tax information haven’t changed.

Federal financial aid includes student loans, grants, scholarships, and work-study jobs. In general, federal and state aid requires that students:

•   demonstrate financial need. Though there is some non-need based aid, such as unsubsidized student loans.

•   be a U.S. citizen or an eligible noncitizen.

•   be enrolled in a qualifying degree or certificate program at their college or career school.

For further details, take a look at the basic eligibility requirements on the Student Aid website .

FAFSA Open Date and Deadline

ASAP: File Your FAFSA for Next Year

Generally, it makes sense to submit the FAFSA promptly after the application release. Some aid is awarded on a first-come, first-served basis, so submitting it early can improve your chances of receiving financial help for college.

May 1: College Decision Time

May 1 is traditionally National College Decision Day, when applicants must inform the colleges they applied to whether they’ll be attending. Make sure you understand the deadlines for the colleges you applied to — they may be different.

June 30: File Your FAFSA for Last Year

You must file the FAFSA no later than June 30 for the school year you are requesting aid for. For the academic year 2024-25, you must file by June 30, 2025, at the very latest.

This FAFSA deadline comes after you’ve already attended and, likely, paid for school. You generally don’t want to wait this long. However, if you do, you can often receive grants and loans retroactively to cover what you’ve already paid for the spring and fall semester. In some cases, you may be able to apply the funds to pay for summer courses.

State and Institutional FAFSA Deadlines

Individual states and colleges have different financial aid deadlines — which may be much earlier than the federal deadline. Here’s a look at two other key FAFSA deadlines to know.

Institutional FAFSA Deadlines

While students have until the end of the school year to file the FAFSA, individual schools may have earlier deadlines. That means you need to get your FAFSA application in by the school’s date to be considered for the college’s own institutional aid. So if you are applying to several colleges, you may want to check each school’s FAFSA deadline and complete the FAFSA by the earliest one.

While filling out your FAFSA, you can include every school you’re considering, even if you haven’t been accepted to college yet.

State FAFSA Deadlines

States often have their own FAFSA deadlines. You can get information about state deadlines at
Studentaid.gov . Some states have strict cutoffs, while others are just best-practice suggestions — so you’ll want to check carefully. States may have limited funds to offer as well.

Federal FAFSA Deadline

Typically, the FAFSA becomes available on October 1, almost a full year in advance of the year that aid is awarded. For the 2024-25 academic year, the FAFSA opened a few months later than usual. However, the federal government gives you until June 30 of the year you are attending school to apply for aid.

It’s generally recommended that students fill out the FAFSA as soon as possible after it’s released for the next school year’s aid to avoid missing out on available funds. Plus, as noted above, there are often earlier school and state deadlines you’ll need to meet.

Taking the Next Steps After Submitting the FAFSA

So what happens after you hit “submit” on your FAFSA? Here’s a look at next steps:

•   Wait for your Student Aid Report (SAR) . If you submitted your FAFSA online, the U.S. Department of Education will process it within three to five days. If you submit a paper form, it will take seven to 10 days to process. The SAR summarizes the information you provided on your FAFSA form. You can find your SAR by logging in to fafsa.gov using your FSA ID and selecting the “View SAR” option on the My FAFSA page.

•   Review your SAR. Check to make sure all of the information is complete and accurate. If you see any missing or inaccurate information, you’ll want to complete or correct your FAFSA form as soon as possible. The SAR will give you some basic information about your eligibility for federal student aid. However, the school(s) you listed on the FAFSA form will use your information to determine your actual eligibility for federal — and possibly non-federal — financial aid.

•   Wait for acceptance. Most college decisions come out in the spring, often March or early April. If you applied to a college early action or early decision, you can expect an earlier decision notification, often around December. Typically, students receive a financial aid award letter along with their acceptance notification. This letter contains important information about the cost of attendance and your financial aid options. However, due to the FAFSA delays, you may be waiting longer on your financial aid offer.

Understanding Your Financial Aid Award

Receiving financial aid can be a great relief when it comes to paying for higher education. Your financial aid award letter will include the annual total cost of attendance and a list of financial aid options. Your financial aid package may be a mix of gift aid (which doesn’t have to be repaid), loans (which you have to repay with interest), and federal work-study (which helps students get part-time jobs to earn money for college).

If, after accounting for gift aid and work-study, you still need money to pay for school, federal student loans might be your next consideration. As an undergraduate student, you may have the following loan options:

•   Direct Subsidized Loans Students with financial need can qualify for subsidized loans. With this type of federal loan, the government covers the interest that accrues while you’re in school, for six months after you graduate, and during periods of deferment.

•   Direct Unsubsidized Loans Undergraduates can take out direct unsubsidized loans regardless of financial need. With these loans, you’re responsible for all interest that accrues when you are in school, after you graduate, and during periods of deferment.

•   Parent PLUS Loans These loans allow parents of undergraduate students to borrow up to the total cost of attendance, minus any financial aid received. They carry higher interest rates and higher loan origination fees than Direct Subsidized and Unsubsidized Loans.

If financial aid, including federal loans, isn’t enough to cover school costs, students can also apply for private student loans, which are available through banks, credit unions, and online lenders.

Private loan limits vary by lender, but students can often get up to the total cost of attendance, which gives you more borrowing power than you have with the federal government. Each lender sets its own interest rate and you can often choose to go with a fixed or variable rate. Unlike federal loans, qualification is not need-based. However, you will need to undergo a credit check and students often need a cosigner.

Keep in mind that private loans may not offer the borrower protections — like income-based repayment plans and deferment or forbearance — that come with federal student loans.


💡 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

Completing the FAFSA application allows you to apply for federal aid (including scholarships, grants, work-study, and federal student loans). The FAFSA form is generally released on October 1 of the year before the award year and closes on June 30 of the school year you are applying for.

The 2025–26 FAFSA will be released to a limited number of students on October 1, 2024. All students should have access on or before December 31, 2024. That application will close on June 30, 2026. However, individual colleges and states have their own deadlines which are typically earlier than the federal FAFSA deadline. Try to submit your form as soon as possible, since some aid is awarded on a first-come, first-served basis.

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.

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

SoFi 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.

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.

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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