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Parent PLUS loan forgiveness provides financial relief to parents who borrowed money to cover the cost of their children’s college or career school. It isn’t always a quick fix, but there are certain federal and private programs that might offer the financial assistance needed to help them get on track.

Keep reading to learn more about what the available student loan forgiveness possibilities are for Parent PLUS loans.

Are Parent Plus Loans Eligible for Student Loan Forgiveness?

Parent PLUS loans are eligible for several of the same student loan forgiveness programs as federal student loans for students, including:

•   Borrower Defense Loan Discharge

•   Total and Permanent Disability (TPD) Discharge

•   Public Service Loan Forgiveness (PSLF)

That said, Parent PLUS loans generally have fewer repayment options. The Parent PLUS loans do not qualify for the SAVE program or other income-driven plans. And guidelines are strict for the few programs that parent loans are eligible for.

Refinancing is another option for Parent PLUS loan borrowers — applying for a new private student loan with an, ideally, lower interest rate. That said, some lenders offer less flexibility for repayment and the fine print can be lengthy, so there’s an inherent risk associated with refinancing Parent PLUS loans.

It’s worth noting that refinancing a PLUS loan will eliminate it from any federal repayment plans and benefits.


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

Parent Student Loan Forgiveness Program

Parents who are on the hook for student loan debt can also qualify for student loan forgiveness. A Parent PLUS loan may be eligible for Parent Student Loan Forgiveness through federal programs that include Income-Contingent Repayment and Public Service Loan Forgiveness. Other forgiveness options may also be available through the state.

Income-Contingent Repayment (ICR)

An Income-Contingent Repayment plan, or ICR plan, is the only income-driven repayment plan that’s available for Parent PLUS borrowers. In order to qualify, parent borrowers must first consolidate their loans into a Direct Consolidation Loan, then repay that loan under the ICR plan.

Bear in mind:

•   A Parent PLUS loan that’s included in a Direct Consolidation Loan could be eligible for Income-Contingent Repayment.

•   A Parent PLUS loan that’s included in the Federal Direct Loan Program or the Federal Family Education Loan Program (FFELP) is also eligible for ICR if it’s included in the Federal Direct Consolidation Loan.

The ICR plan is a repayment plan for Direct loans. Monthly payments are the lesser of (1) what you would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on your income, or (2) 20% of your discretionary income.

Typically, the IRS considers canceled debt a form of taxable income, but the American Rescue Plan Act of 2021 made all student loan forgiveness tax-free through 2025 on federal returns. Some states will tax student loan forgiveness amounts; check with your accountant to be sure.

Public Service Loan Forgiveness (PSLF)

Borrowers with Parent PLUS loans may be eligible for the Public Service Loan Forgiveness Program. In order to pursue that option, they must first consolidate the Parent PLUS loan into a Direct Consolidation Loan.

Then, after they’ve made 120 qualifying payments (10 years’ worth), borrowers become eligible for the PSLF. The parent borrower (not the student) must be employed full-time in a qualifying public service job. PSLF also has strict requirements such as certifying employment, so it’s important to follow instructions closely if pursuing this option.

Student Loan Forgiveness for Death of Parent

Federal student loans qualify for loan “discharge” when the borrower dies. In the case of Parent PLUS loans, they are also discharged if the student who received the borrowed funds dies.

In order to qualify for federal loan discharge due to death, borrowers must provide a copy of a death certificate to either the U.S. Department of Education or the loan servicer.

Some, but not all, private lenders discharge student loans after the student or loan holder dies.

Recommended: Can Student Loans Be Discharged?

State Parent PLUS Student Loan Forgiveness Programs

Many individual states offer some sort of student loan repayment assistance or student loan forgiveness programs for Parent PLUS loan borrowers.

For an overview of options available in different states, you can take a look at The College Investor’s State-by-State Guide to Student Loan Forgiveness . For information on student loan and aid available take a look at the SoFi guide on state-by-state student aid available for borrowers.

Disability

In the event of the borrower becoming totally and permanently disabled, a Parent PLUS loan may be discharged. To qualify for a Total and Permanent Disability (TPD) discharge , borrowers must complete and submit a TPD discharge application, as well as documentation showing that they meet the requirements for being considered totally and permanently disabled.

Note that in order to qualify for TPD, the parent borrower must be considered disabled. This type of forgiveness does not apply to Parent PLUS loans in the event that the student becomes disabled.

Bankruptcy

If a borrower can demonstrate undue financial hardship upon repaying the student loan, they might be able to discharge their Parent PLUS loan. Note: Having student loans discharged in bankruptcy is uncommon. Proving “undue hardship” varies depending on the court that’s granting it, but most rulings abide by the Brunner test, which requires the debtor to meet all three of these criteria in order to discharge the student loan:

•   Poverty. Maintaining a minimal standard of living for the borrower and their dependents is deemed impossible if they’re forced to repay their student loans.

•   Persistence. The borrower’s current financial situation will likely continue for the majority of the repayment period.

•   Good faith. The borrower has made a “good faith” effort to repay their student loans.

Closed School Discharge

For parent borrowers whose children attended a school that closed while they were enrolled or who withdrew from the school during a “lookback period” of 120 days before its closure, a Closed School Discharge is another available form of student loan forgiveness.

If your child’s school closes on or after July 1, 2023, and you meet the eligibility requirements for a closed school discharge of your loans obtained to attend the closed school, you will generally receive an automatic closed school discharge one year after the date the DOE establishes as the school’s official closure date. This discharge will be initiated by DOE, and you will be notified by your loan servicer.

Although this closed school loan discharge is granted automatically after one year has passed since the school’s closure, you can always apply for and receive a closed school discharge as soon as the school’s official closure date is confirmed by the U.S. Department of Education. If your child 1) attended a school that closed less than one year ago, 2) meet the eligibility requirements for a closed school discharge, and 3) want your loans discharged, contact your loan servicer about applying for a closed school discharge now instead of waiting for one year to receive an automatic closed school discharge.

Borrower Defense

Borrower Defense Loan Discharge is available to Parent PLUS borrowers whose children were misled by their college or university or whose college or university engaged in certain forms of misconduct or violation of state laws.

To make a case for borrower defense, the Parent PLUS borrower must be able to demonstrate that their school violated a state law directly related to their federal student loan.


💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

Alternatives to Parent Plus Student Loan Forgiveness

When it comes to Parent PLUS loans, there are a few ways to get out of student loan debt legally, including the scenarios outlined below.

Refinance Parent Plus Loans

Refinancing a Parent PLUS loan is another option that could provide some financial relief. In doing so, you’ll lose the government benefits associated with your federal loans, as briefly mentioned above, such as:

•   Forbearance options or options to defer your student loans

•   Choice of repayment options

•   Student loan forgiveness

Refinancing a Parent PLUS loan into the dependent’s name is another option, which some borrowers opt for once their child has graduated and started working. Not all loan servicers are willing to offer this type of refinancing option, though.

Transfer Parent Plus Student Loan to Student

Transferring Parent PLUS loans to a student can be complicated. There isn’t a federal loan program available that will conduct this exchange, and, as mentioned above, some private lenders won’t offer this option.

Some private lenders, like SoFi, allow dependents to take out a refinanced student loan and use it to pay off the PLUS loan of their parent.

Explore Private Student Loan Options for Parents

Banks, credit unions, state loan agencies and other lenders typically offer private student loans for parents who want to help their children pay for college and refinancing options for parents and students.

Refinancing options will vary by lenders and some may be willing to refinance a Parent PLUS loan into a private refinanced loan in the student’s name. In addition to competitive interest rates and member benefits, SoFi does allow students to take over their parent’s loan during the refinancing process. Interest rates and terms may vary based on individual criteria such as income, credit score, and history.

The Takeaway

Parent PLUS Loan forgiveness offers financial relief to parents who borrowed money to help their child pay for college. To receive federal relief for Parent PLUS loans, parent borrowers can enroll in an Income-Contingent Repayment plan, pursue Public Service Loan Forgiveness, transfer their student loan to another student, take advantage of a state Parent PLUS student loan forgiveness program, or opt for private student loan assistance or refinancing.

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

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

Photo credit: iStock/DragonImages
SOSL1023010

Going to college or graduate school is a serious investment in your future — both professionally and financially. Naturally, you’ll want to know how much financial aid you’re eligible for, including student loans, grants, and work-study programs.

The amount of federal aid that prospective and current students receive is based on a variety of factors, and everyone’s financial situation is unique. But familiarizing yourself with the following requirements and questions can help paint a clearer picture of how much FAFSA money you will get.

What Are the Eligibility Requirements?

Many incoming and current college and graduate students are eligible for federal aid. Students must satisfy the following criteria to apply:

•   Be a U.S. citizen, national, or eligible noncitizen

•   Have a valid Social Security number, unless you’re from the Federated States of Micronesia, Republic of the Marshall Islands, or the Republic of Palau

•   Have a high school diploma or GED

•   Promise to use awarded federal aid for education purposes only

•   Do not owe refunds on any federal student grants

How Do I Begin the FAFSA?

The first step to completing the FAFSA is creating your FSA user ID and password. From there, you’ll answer a series of questions covering demographic information, schools you are interested in attending, financial details, and information from parents or guardians based on dependency status.

Filling out the FAFSA may feel intimidating, but a little preparation can save you from common FAFSA mistakes, like leaving important fields blank.

What Factors Affect FAFSA Money?

The application includes questions about demographics and finances for students and sometimes their families to answer. Collectively, this information will determine how much need-based and non-need-based aid students qualify for.

Applying for the FAFSA Every Year of School and on Time

Filling out the FAFSA is not a one-time deal. Students must file the FAFSA each year they are enrolled in college or graduate school. Yet approximately 40% of high school seniors do not fill out the FAFSA, and a quarter of college and graduate students do not renew their application after their first year of studies.

There are several important FAFSA deadlines to be aware of. The federal deadline for the 2023-2024 academic year (this includes students beginning school in winter or spring 2024) is June 30, 2024. For the 2024-2025 academic year, students can submit the FAFSA once it opens in December 2023.

State deadlines vary, and many precede the federal deadline by one or several months. Applying early can increase your chance of receiving additional financial aid from your home state in the form of grants or scholarships.

Dependency Status

An applicant’s dependency status is determined by 10 questions found at StudentAid.gov/dependency. Even if your parents claim you as a dependent for tax purposes, you may still qualify as an independent for federal financial aid. You most likely qualify for independent status if you meet any of the following requirements when filling out the FAFSA:

•   At least 24 years old

•   Married

•   A graduate or professional student (law, medicine, etc.)

•   A veteran or active member of the armed forces

•   An orphan, ward of the court, or emancipated minor

•   Claiming legal dependents other than a spouse

•   Homeless or at risk of becoming homeless

Your dependency status affects how much financial aid you’re eligible to receive. In many cases, independent students can be eligible for more financial aid, as they are assumed to be paying their own tuition and living expenses.

Still, dependent students may be eligible for a variety of financial aid opportunities from federal or state governments and colleges through the FAFSA. Most incoming and current undergraduate students are considered dependent. This means that information from parents or guardians, such as tax returns, must be submitted and will affect whether financial aid is awarded and how much.

In special circumstances, students may file for a dependency override. These are awarded case by case, and are typically reserved for students facing exceptional family-related issues or whose parents are unwilling to provide information for the FAFSA.

Expected Family Contribution

Expected Family Contribution, or EFC, primarily applies to dependent students. The EFC calculates eligibility and aid based on several financial and demographic indicators, including:

•   A family’s taxed and untaxed income

•   A family’s assets and benefits (unemployment and Social Security, for example)

•   Family size and number of dependents enrolled in or likely to attend college

This calculation determines need-based and non-need-based aid eligibility and amount, rather than a figure a family is expected to pay toward education. Typically, a lower EFC translates to greater financial aid eligibility as a result of higher need.

Starting with the 2024-2025 school year, the EFC will be replaced by the Student Aid Index, or SAI. It fulfills the same basic purpose but works a little differently. You can learn more about the upcoming Student Aid Index here.

Cost of Attendance

Education costs can vary considerably based on merit-based scholarships, in-state vs. out-of-state residency, and other factors. The amount of FAFSA money you receive will also depend on the cost of attendance for your chosen college or university.

The cost of attendance encompasses tuition, fees, room and board, books and school supplies, and expenses associated with child care or disabilities, if applicable. A lower cost of attendance usually translates to less aid, because the funding can be used only for education purposes.

Not sure where you want to apply? Our College Search tool can help.

How Much Money Will I Get From FAFSA?

The amount of FAFSA money you receive cannot exceed the cost of attendance for your chosen college or university.

Before applying, the Federal Student Aid Estimator is a useful tool to estimate the amount of federal student aid you may qualify for.

Assuming that you meet the eligibility criteria and are applying on time, you may receive some form of federal financial aid, especially if your EFC is less than your cost of attendance. Potential sources of federal student aid include the following programs:

Grants

Unlike loans, grants are free money to put toward your education that does not have to be paid back. After completing the FAFSA, students with proven financial need may receive aid in the form of a Federal Supplemental Educational Opportunity Grant or Pell Grant. Opportunity grants are allocated based on need, other aid awarded, and college budgets. Pell Grants change annually but can be as high as $7,395 for the 2023-2024 academic year.

Work-Study

Federal work-study programs typically involve a part-time job on or off campus. Wages are set by the college but must meet minimum-wage requirements. Work-study schedules are intended to be structured around students’ classes.

Federal Loans

Eligibility for federal student loans is generally broader than for grants and work-study programs. Federal loans are either subsidized or unsubsidized, with subsidized loans being need-based and including interest deferment and grace periods. On the other hand, unsubsidized loans begin accruing interest as soon as they are paid out to borrowers.

Different types of federal student loans exist, and each has a maximum award amount according to dependency status and year of study. Dependent undergraduate students have an aggregate loan limit of $31,000. Independent undergraduates can take out $57,500, and graduate students can borrow up to $138,500.

How Else Can I Pay for College?

If financial aid isn’t enough to cover your tuition and other education expenses, there are ways to make college more affordable.

Scholarships and Grants

Besides scholarships granted by your chosen college, there are opportunities offered by private foundations, community groups, and nonprofit organizations. Awards can be given based on academic merit, need, field of study, or participation in a specific sport or activity. Our Scholarship Search tool can help you unearth available awards filtered by school type, field of study, state, and more.

Try to stay on top of scholarship and grant applications and deadlines as they can come and go quickly. Winning a scholarship or a grant is basically finding free money, and you don’t want that money to go unclaimed.

Private Student Loans

Students who cannot pay for college with scholarships and federal aid alone can apply for private student loans from various financial institutions, including banks, credit unions, and online lenders. Interest rates, forbearance, and other terms and conditions can vary, so shop around to compare loan rates and terms.

SoFi’s no-fee private student loans are an option for students to help pay for college and graduate school. Flexible repayment plans can ease the search for a loan that works with a student’s budget and financial plan.

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.

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

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.

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.

SOIS1023012

If you’ve getting ready to apply to college, look on the bright side: It can be a good way to apply the skills you’ve learned in school to get organized and nail this project. It’s also a time to shine and show off your achievements over the past few years.

That said, like any big project, applying to college has a lot of moving parts and can feel intimidating at times. To help you break it down, it can be wise to use a college application checklist. Doing so can help you stay on track as you move ahead with navigating the next step in your education.

What follows is just that: a college application checklist and details on how to apply to the schools you’re interested in. As you’ll see, it can all boil down to 5 key steps. You’ve got this!

Tips for Getting Organized

Before you dive into your To Do list, take some time to get organized. Applying for college can definitely be complicated and time-intensive. Creating a system, including a college application checklist, can help prevent important details and dates from slipping through the cracks.

Before you start printing out forms and stashing brochures, label a folder for each school and list important information on the front, such as:

•   College name

•   Application deadline

•   Type of deadline (early decision, early action, regular decision, or rolling admission)

•   Application fee

•   Application requirements (form, essay, recommendations, etc.)

Choose a single system to monitor all submissions and deadlines, and make sure your parents can also access the information.

One method of organization could be to file the folders by deadline dates rather than school names to ensure you get all documents to each school on time.

Keep copies of important documents, such as recommendation letters and student housing information, in each folder. Most early decision or early action deadlines are in November, while regular decision applications are usually due in January.

Make a note of any schools that have extra forms or a particular department within the college that has its own set of requirements. The university likely has a list of scholarship deadlines, which may be different from its application deadline.

College application deadlines tend to be set in stone, and admission officers may even frown upon those who wait till the last minute to submit their applications. It can be helpful to set reminders on your phone, computer, or the kitchen calendar.

Schedule reminders for at least a month before the real deadline so there’s plenty of time to ask questions, make adjustments, and get your application in well before the deadline. This can help you avoid that night-before-the-deadline discovery that you are missing a form.

Consolidate tasks whenever possible. If you need a recommendation for an extracurricular activity for two different schools, don’t ask the softball coach and the band conductor. Pick one and ask for a reference letter that can be easily customized for both schools.

Even the simplest college application is typically made up of multiple forms. You can use a physical filing system or cloud-based storage to store forms, recommendation letters, and more. As you gather materials, divide everything into folders for each college and label PDFs with short, descriptive names (MusicRecommendation, not “scan008877605.pdf”).


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

College Application Checklist

If you’re looking for a section to print out and check off as you go, this is it: your applying to colleges checklist. Then read on for details on how you might go about accomplishing these tasks.

•   Create a filing system for schools organized by the application deadline

•   Set reminders for application deadlines

•   Gather test scores (SAT®, ACT®, etc.) if prospective schools require them

•   Ask for 3 or more letters of recommendation

•   Write personal essay (if needed)

•   Fill out the Free Application for Federal Student Aid (FAFSA®)

•   Research scholarships

1. Take Standardized Tests (Or Not)

First on your college application process checklist is to consider whether you need standardized test scores. A majority of colleges and universities no longer require standardized tests like the SAT and ACT for school applications — check with the schools you plan to apply to. If you want to play it safe and you have the time, you may want to take the test just in case.

Generally, students must register for tests about a month in advance. It will take a couple of weeks for scores to be distributed, and colleges receive scores about 10 days after students. So if your college application deadline is in January, you should schedule your test by October. Perhaps you’ll want to take it earlier if you want to give yourself enough time to retake the test if you’d like to try to get a higher score.

2. Request Letters of Recommendation

Next on your college application requirement checklist: Many colleges request 2 to 3 letters of recommendation. According to the College Board, these should be “written by someone who can describe your skills, accomplishments, and personality.” It’s wise to ask people who know you well and are enthusiastic about this prospect. You may want to request an extra letter or two, to accommodate letter-writers who miss their deadline or beg off at the last minute.

When asking for a recommendation letter, keep in mind that teachers and coaches are usually very busy and likely being asked by multiple students. If possible, give them at least a month to write a reference letter. Really, the earlier the better. Some schools require recommendations from teachers in specific subjects, so be mindful of specific requirements.

3. Check for Special Deadlines

You’ll want to consider other deadlines as well, such as applications for special dorms, department-level scholarships, registering for summer activities, and more. These things can end up coloring the college experience just as much as which university you get accepted to.

In many cases, dorms are available on a first-come, first-served basis. Applying early can help you get the specific type of dorm you want, such as co-ed, separated by gender, or substance-free.

4. Fill Out the FAFSA

While you’re gathering all the information for college, you’ll probably be thinking about how to pay for it. For this item on your college admission checklist, you’ll likely want to start with the Free Application for Federal Student Aid or FAFSA®, the form that parents and students must complete to be eligible for federal student loans and aid. Many colleges also use the FAFSA to decide if a student qualifies for its own grants and scholarships.

A university may offer both need-based and merit-based aid. Need-based aid is determined by a family’s income and circumstances, while merit-based aid is determined by academics, athletics, and other talents. The FAFSA helps colleges determine how much need-based federal aid a student qualifies for.

The FAFSA application is generally available starting in October but the 2024-2025 form will be available in December; the due date varies by state. Try to apply as early as possible because some financial aid is awarded on a first-come, first-served basis.

A common misconception is that the FAFSA is a one-time deal. In reality, the FAFSA must be filled out every year to account for any changes in income or other circumstances. For example, if one of your parents gets laid off from their job, you might qualify for more need-based aid.

For some students, federal aid (including federal student loans) isn’t enough to cover the full cost of attendance. If that’s the case, it may be time to look into some additional sources of funding.

Recommended: College Search Tool

5. Additional Funding Options

Some families are able to fill the gap between tuition costs and student aid with savings. Parents may take out loans in their own name to help children pay for college as well.

Other students are able to pay for a portion of their tuition with scholarships or grants. Scholarships and grants may require applicants to invest some time writing an essay or meeting other requirements. Any funds that are received can be a useful way to cover education costs since they don’t need to be repaid.

There are quite a few scholarship databases you can search to find those that fit your background and interests.
If you’ve exhausted your aid opportunities and are still looking to fill a gap, private student loans are an option to consider. While they don’t come with the same benefits as federal student loans (such as income-driven repayment plans and loan forgiveness options), they can be used to help pay for education expenses.

Unlike most federal student loans, the private student loan application process generally requires a credit check*. Some students may find they need a cosigner, which is someone who would be held responsible for the loan in the event the primary borrower fails to make payments.


💡 Quick Tip: Need a private student loan to cover your school bills? Because approval for a private student loan is based on creditworthiness, a cosigner may help a student get loan approval and a lower rate.

Stay Engaged in School

Once you’ve completed your college application checklist and your college applications are on their way, your last semester in high school can feel kind of pointless. Not true! Colleges will want to see those grades and know what you’ve been up to. If you’ve lost motivation, are cutting class, or let your grades slide, they’ll know it. And if you’re still taking AP exams, those results can determine whether you get credit for certain college courses.

So stay involved and send a follow-up letter listing any additional awards and achievements. This is your chance to show off what you’re capable of even when the pressure’s off.

Speaking of pressure, take time to relax — before, during, and after the application process. Plan some fun activities that don’t involve watching your inbox for acceptance letters. And congratulate yourself on making it this far.

The Takeaway

The college application process can be demanding. After all, the application itself is usually just one of many concerns. There may also be standardized tests to take, letters of recommendation to collect, personal essays to write, housing to consider, and financial aid applications to complete. It can be wise to use an applying to colleges checklist. The earlier you complete the tasks on it, the less stressed you’ll be — and that can be reflected in the quality of your application. Stay on top of all deadlines, and set reminders well in advance so you never have to pull an all-nighter. Save those for college.

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.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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

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

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

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

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.

SOIS1023013

Your student loan statement gives you all the important information about your student loan. If you took out one or more student loans to help pay for college, knowing how to read your student loan statements can help you manage your student debt and repayment.

What Are Student Loan Statements?

Student loan statements are detailed summaries of your student loan. They provide information such as the last payment received, the current amount due, and where to send payments.

You’ll typically receive your student loan statement from your loan servicer three weeks before payment is due each month. If you have multiple student loans with more than one servicer, you’ll receive a student loan statement from each servicer every month.

Why Is It Important to Know How Much You Owe?

Keeping track of any student debt is essential. You’re responsible for your student loan debt and making monthly payments on time until it’s paid off. Even missing one payment could cause you to fall behind.

A missed or late payment on your student loan debt could also hurt your credit. Your payment history makes up 35% of your FICO® credit score, so having late payments in your recent credit history could make it more difficult to be approved for credit cards or other loans.

Missed student loan payments may also incur late fees. Private lenders have their own rules when it comes to late fees and consequences, but they may start adding late fees after a grace period. Private student loans usually go into default as soon as you miss three monthly payments, but some go into default after one missed payment.

If you default on a federal student loan, usually after payment is 270 days past due, the government can collect your debt by withholding money from your wages and your income tax refund and other federal payments. But a temporary “on-ramp” protection will generally prevent most federal student loans from entering defaulted loan status from the 12-month period of October 2023 through September 2024.

Where Do I Find My Student Loan Statement?

Your student loan statement will typically come by mail from your student loan servicer unless you’ve opted to receive statements online.

Borrowers are generally expected to make required loan payments when due. The 2023 debt ceiling bill officially ended the three-year Covid-19 forbearance, requiring federal student loan interest accrual to resume on Sept. 1, 2023, and payments to resume in October 2023.

If you haven’t received any student loan statements or if you’re not sure, there are ways to find your student loan balance, such as requesting and reading your credit report.

Private Student Loans

If you have private student loans, you can contact your lender directly and ask them how to get your student loan statements. You can also try contacting your school’s financial aid office for information about your private student loan and the company that originated your loan.

Another option is to get a free credit report from each of the three credit bureaus, Equifax®, Experian®, and TransUnion®. This may give you basic information on any active student loan accounts you have opened in your name.

Recommended: Guide to Private Student Loans 

Federal Student Loans

If you have federal student loans, there are a few ways to find your student loan statement. One way is to go to studentaid.gov and log in with your Federal Student Aid (FSA) ID. You can find your student loan balances, loan servicers, and interest rates on the site.

As with private student loans, you can also contact your school’s financial aid office for more information on your federal student loans.

Recommended: FAFSA Guide

Student Loan Statements

Not all student loan statements look the same, but they generally provide the same key details about your student loan. Knowing how to read your student loan statement is an important step in helping you manage your student loan debt.

Payment Summary

The payment summary shows the current amount due if payment is made by the due date. If you have other amounts due in addition to the current payment, like fees or a past due amount, those will also be shown in the payment summary.

Monthly Payment

The monthly payment will tell you what you are expected to pay, which includes the principal and interest, by the due date. The principal is the amount you borrowed, and the interest is what you’re paying to borrow the money.

Your required payment will be the same each month for the life of your loan unless you’ve chosen a variable rate for a private student loan or you’re enrolled in a federal income-driven repayment (IDR) plan.

Recommended: 7 Tips to Lower Your Student Loan Payments

Amortization Schedule

Your student loan repayment follows a student loan amortization schedule. Amortization is the process of paying back an installment loan through regular payments. When a student loan is amortized, it means that your monthly payment is divided into principal and interest payments.

Current Balance

Your current balance is what you owe on the date of the student loan statement. This is the total amount, including principal, interest, and any fees.

Original Balance

Your original balance is the amount that you borrowed before you made any payments toward your student loan.

Interest Rate

The interest rate on your student loan is how much you pay to borrow the funds. Federal loans issued since July 2006 have fixed interest rates, meaning they don’t change over the life of the loan.

The fixed rate for federal student loans depends on the type of loan. Federal student loans for graduate or professional school typically charge higher rates than federal loans for undergraduate study.

Private lenders determine rates for borrowers based on their creditworthiness. They offer undergraduate loans and graduate student loan options.

Negative amortization — having your loan balance grow over time if your monthly payment amount is less than the interest accruing — generally won’t occur if you make payments on the Saving on a Valuable Education (SAVE) Plan. That’s because the SAVE Plan offers a permanent interest subsidy that helps prevent your federal loan balance from growing if you qualify for a $0 (or very low) monthly payment.

Managing Your Student Loans

After you know your lender or loan servicer, you can easily manage your student loans. Student loan management may be different depending on whether you have a federal student loan or a student loan from a private lender.

Federal student loans allow you to select a repayment plan. Repayment plans are typically divided into traditional plans and IDR plans, such as the SAVE Plan. This allows you a choice: quickly paying off student loan debt to minimize interest charges or lower monthly payments for greater affordability.

You can also consolidate your federal student loans or refinance federal and private student loans, resulting in one monthly payment. You may pay more interest over the life of the loan if you refinance with an extended term.

Private lenders may have their own flexible repayment plans. They may offer you the choice of deferring payments, paying interest only, paying your full monthly payment, or making a low fixed payment while you’re still in school.


💡 Quick Tip: Ready to refinance your student loan? You could save thousands.

Should You Refinance or Consolidate to Simplify Repayment?

Combining multiple student loans into a single loan with one monthly bill can simplify your student loan repayment. However, the choice to consolidate student loans vs. refinance depends on your personal situation and your end game.

Federal student loan consolidation combines multiple federal loans into a single loan through the U.S. Department of Education. Federal consolidation generally won’t lower your total interest costs but can lower your monthly payments by extending the repayment period. (A longer repayment period means more total interest paid over the life of the loan.)

Private lenders offer student loan refinancing — some refinance both federal and private student loans — which means paying off your current loans with one new private student loan, ideally with a lower interest rate.


💡 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.

The Takeaway

Your student loan statements give all the details of your debt. Federal student loan borrowers can expect to receive billing statements now that the pandemic-related payment pause has ended.

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

FAQ

What is a student loan statement?

A student loan statement gives you a detailed breakdown of your loan, including the last payment received, the current amount due, and where to send your payments.

How do I get to my student loan statement?

Federal student loan borrowers can get their student loan statements from their loan servicer. If you don’t know who your loan servicer is, visit your Federal Student Aid account dashboard.

Private student loan borrowers can contact their lender directly to ask for student loan statements. If you’re unsure who your lender is, you can get a free credit report from each of the three credit reporting agencies or contact your school’s financial aid office.

How do I read student loan statements?

Not all student loan statements look the same, but they generally provide the same information. Your student loan statement should give you a payment summary and tell you your monthly payment amount, due date, current and original balance, and interest rate.

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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SOSL1023004

Pursuing a four-year degree can lead to a lot of great career opportunities, but there are also many lucrative career opportunities that require a more technical education that a university can’t provide. To pursue certain careers, it may be necessary to attend a technical school.

What are technical schools? In short, technical schools are postsecondary institutions that teach students specialized skills designed to prepare them for a specific profession or trade.

Continue reading for more insight into what technical school is and what the advantages and disadvantages of this education option are.

What Is Technical School?

As briefly mentioned, a technical schools meaning is a school that provides students with education and training in a practical and specialized trade or profession. Technical schools don’t lead to bachelor’s degrees like a university and instead result in earning diplomas or certificates that generally take less than two years to qualify for.

Technical schools are a good fit for students who know what career path they want to pursue, because when a student attends a technical school they choose a specific program designed to prepare them for a certain career. Students who attend technical school don’t take general education classes, which means they are not required to learn more about different disciplines before they choose where to focus their efforts.

Technical school courses include instruction and studying course materials, but also provide hands-on training that helps students build the skills they need to pursue their chosen career. Often, students who attend technical schools are connected to internship opportunities that help them gain real world work experience.

How Is Technical School Different From Trade School?

Trade schools typically focus on more hands-on careers that require having either a certain amount of on-the-job supervised hours in order to pursue a career or a certification of some sort. Trade schools offer hands-on education and prepare students for labor-focused jobs like working as an electrician or carpenter and similar to technical schools, trade school costs are generally less than university degrees.

Technical schools have more classroom lectures and simulated job training and can lead to more creative career paths like floral design, graphic design, and cosmetology, as well as more labor-focused jobs. A recap of the comparison between trade school and technical school is in the below table.

How Is Technical School Different From Vocational Training?

A vocational school is generally the same thing as a technical school and people often use these names interchangeably. Some four-year universities offer vocational degree programs, such as becoming a paralegal, but some vocational programs like cosmetology can only be found at technical or vocational schools.

How Is Technical School Different From Community College?

Community colleges focus more on general education, but also offer technical training, whereas technical schools don’t teach general education at all.

How Is Technical School Different From University?

Universities and technical schools are very different. They offer different degree programs, costs, time commitments and more. The table below provides an overview on the differences.

How Does Technical School Work?

The way that technical school works is students choose a specific program to pursue and then complete the required coursework to finish the program or earn a certificate that enables them to work in the career of their choice. Technical school involves hands-on instruction so students can learn valuable technical skills.

Getting Into Technical School

Generally, students need to have a high school diploma, state-issued GED, or to have passed a state-authorized equivalency exam in order to qualify for technical school, but students don’t have to compete for acceptance like they would at a four-year university.

Cost of Technical School

The cost of technical school can vary quite a bit based on factors including the school, its location, the program type and the length of the program.

What Can You Study in Technical School

A few examples of career paths technical school can lead to include:

•  Computer technology

•  Healthcare support

•  HVAC technology

•  Electrical installation and maintenance

•  Welding or plumbing

•  Hospitality/hotel and restaurant management

•  Culinary arts

•  Cosmetology

•  Floral design

•  Auto mechanics

•  Graphic design

•  Visual arts

•  Office administration

•  HVAC technology

•  Carpentry or construction

Pros and Cons of Attending Technical School

Now let’s look at some advantages and disadvantages associated with attending technical schools.

Technical High Schools

There are also technical high schools that prepare high school students for technical career paths while providing them with a more traditional high school education at the same time.

Financing Technical School

Students who are having trouble affording the cost of technical school or who want to save some money can pursue these options for helping them finance their education.

FAFSA

Filling out the Free Application for Federal Student Aid (FAFSA®) each year while attending school, will allow technical school students to learn if they qualify for any grants, scholarships, or federal student loans. Check in with the financial aid office at your technical school if you have any questions about whether or not they participate in the federal aid program.

Grants

Grants are a form of financial aid that students don’t have to pay back. Essentially, a grant gives students free money to pay for their school tuition, fees, and supplies.

Scholarships

Scholarships are another form of gift aid that students don’t have to pay back. It can be a good idea to apply for scholarships to help lower the cost of attending vocational school.

Private Student Loans

Students who don’t qualify for enough gift aid or federal student loans to cover the costs of attending vocational school can apply for a private student loan through a private lender such as a credit union, bank, or loan lender. Unlike federal student loans, private lenders will often evaluate an applicant’s credit score and history, among other factors, when making lending decisions.

Recommended: A Guide to Private Student Loans

Usually, private student loans come with higher interest rates and less perks than federal student loans, so they are generally considered an option after federal options and other funding sources have been exhausted.

Employer Sponsorship

If someone’s employer would benefit from the skills they would gain by attending technical school, then their employer may be willing to pay for them to attend technical school by offering tuition reimbursement or some other form of financial aid. It can’t hurt for employed students to see what support programs their employer has in place.

Job Prospects for Technical School Graduates

Because different technical schools focus on different training programs, students need to choose one that has a program that aligns with their goals. For example, students who want to attend technical school may be doing so to pursue a career as an auto mechanic, electrician, hair stylist, or chef.

Is Technical School Right for You?

There’s no one right path to take after high school or when deciding to switch careers, but some may find that attending technical school can help them pursue the career of their choice.
Consider your career goals and the requirements for pursuing that career path. If that career path would benefit or require the training offered by a technical school, then it may benefit the student to explore attending a technical school. In some cases, another education option may help them reach that goal more effectively and efficiently than technical school.

The Takeaway

Attending technical school can be a great option for those who want to pursue a career that requires a specialized skill set, yet which doesn’t require a college degree. Technical school takes less time than pursuing a four-year degree and can lead to many great career opportunities.

Some students may find they can’t afford to pay cash for technical school and need to borrow money in order to finance their education. This is where private student loans could help.

SoFi’s private student loans aren’t available to technical school students, but may be worth considering for students transferring to a university. With SoFi private student loans, it’s easy to apply online and borrowers don’t have to worry about expensive fees. After graduation, they can enjoy a six month grace period to give them time to start their career before having to pay back their student loans.

FAQ:

How are technical schools and trade schools different?

What’s a technical school and how does it differ from a trade school? The main difference between trade schools and technical schools, is that technical schools offer more classroom and instructional education, whereas trade schools do more hands-on training (although technical schools offer this type of training as well, just not as much).

How is college different from a technical school?

At a college, it’s possible to pursue a bachelor’s degree, which usually takes four years to complete, whereas technical school helps students work towards certificates that take two years or less to pursue. Students who attend college usually focus on more academic disciplines, whereas technical school teaches specialized skills.

What can you study at a technical school?

It’s possible to study many different subjects at technical schools and the subjects each school teaches can vary. For example, students can enroll in programs focused on computer technology, healthcare support, HVAC technology, electrical installation and maintenance, and plumbing.

Photo credit: iStock/Laurence Dutton

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SoFi Private Student Loans
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