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This summer, President Joe Biden announced that individuals who earn $125,000 or less per year will be eligible for $10,000 in federal student loan cancellation. A big caveat: You cannot benefit from forgiveness from the federal government if you’ve refinanced your entire federal student loan amount.

We’ll go over the details of who qualifies for the new, one-time student loan forgiveness plan, how refinancing affects eligibility for federal benefits, and reasons why some individuals may want to refinance anyway.

How Federal Student Loan Forgiveness Works

Student loan forgiveness means that you are no longer required to pay back all or a portion of your federal student loans. Federal student loans are student loans that come directly from the federal government. President Biden’s proposed forgiveness will be available only to people paying down federal loans, not private loans.

The plan includes important updates to the federal student loan system:

•  Individuals who earn less than $125,000 per year ($250,000 for married couples) will be eligible for $10,000 in student loan cancellation.

•  Pell Grant recipients can receive up to $20,000 in debt cancellation.

•  The pause on federal student loan payments has been extended through Dec. 31, 2022.

•  Borrowers with undergraduate loans on income-driven repayment plans could cap their payments at 5% of their monthly expenses, down from 10%.

•  Loan balances would be forgiven after 10 years of payments, down from 20 years, for loan balances of $12,000 or less.

Further details will be released in the weeks ahead. For a deep dive into the announcement, including reactions from the plan’s supporters and critics, read Student Debt Relief: Biden Cancels Up to $20K for Qualifying Borrowers.

How Refinancing Affects Forgiveness

When you refinance a student loan, a new, private lender pays off your old loan (or multiple loans) and replaces it with a new loan. A private lender may replace either a federal loan(s) or another private loan. Both federal loans and private loans are converted to a new private loan — you cannot refinance to another federal student loan.

It’s important to understand that the portion of a federal student loan that is refinanced (meaning you don’t have to refinance the entire amount) would lose federal loan benefits. Those benefits include:

•  Eligibility for federal student loan forgiveness.

•  Income-based repayment plans: payment plans intended to be affordable based on your income and family size.

•  Deferment: a temporary pause in student loan payments where no interest accrues on your loans.

•  Forbearance: also a temporary pause, but one during which interest may accrue on your loans.

See below for details on each of these benefits.

How Student Loan Refinancing Works

Borrowers refinance student loans for several reasons, including:

•  Lowering your interest rate: Lowering your interest rate means you’ll pay less in interest over time, which can save you money in the long run.

•  Changing to a fixed or variable rate: A fixed interest rate is a rate that doesn’t change throughout the loan term. On the other hand, a variable interest rate will change depending on the underlying interest rate benchmark. Refinancing can give you the option to choose between either a fixed or variable rate.

•  Lowering your monthly payment: If you prefer to pay a little less on your loan payments per month, you may want to consider lowering your monthly payment. In this case, your lender will extend your repayment period. This means that it will take you longer to repay your loan — and note that you’ll pay more in interest over time.

•  Shortening your repayment period: If you choose to shorten your repayment period, your monthly payment will go up. However, you’ll save money in interest over the life of the loan.

To refinance, you can shop around with different lenders to check their interest rates and terms. You’ll need to supply private lenders with your name, address, degree type, student loan debt totals, income amounts, housing costs, and more. The information you’ll need to supply generally depends on individual lenders. After that, the lender will run a soft credit check. Lenders should then present you with several offers, including various terms and interest rates (both fixed and variable rates).

Before you decide on the right private lender for you, check on origination fees (the upfront charge to process an application), any prepayment penalties if you were to pay off the loan early, customer service capabilities, and the overall costs to you.

Next, you’ll offer further information to your lender, including proof of citizenship, a valid ID, and pay stubs and/or tax returns. The lender will likely then run a hard credit check, and you’ll go through a final approval process.

Check out our guide to student loan refinancing for a complete overview of how to refinance a student loan.

Recommended: 7 Tips to Lower Your Student Loan Payment

Protections for Federal Student Loans

When you trade federal student loans for a refinance, you give up certain federal student loan benefits, including guaranteed postponement and income-driven repayment options.

Guaranteed Postponement

As mentioned earlier, postponement options include deferment and forbearance. In both cases, you can contact your loan servicer for information and instructions on how to defer your loans. In most cases, you’ll have to fill out a form.

Here are some details about both deferment and forbearance to understand what you’d be giving up by refinancing:

•  Deferment: As mentioned earlier, deferment means you access a temporary pause in student loan payments during which no interest accrues on your federal student loans. Federal Direct Loan, Federal Family Education (FFEL) Program loan, and Perkins Loan borrowers can access deferment options. You may qualify for deferment in a few different ways, including while undergoing cancer treatment, during economic hardship, during a graduate fellowship program, while you’re in school, while completing military service or through post-active duty, if you are a Parent PLUS borrower and your student is still in school, while in a rehabilitation training program, and/or if you’re unemployed.

•  Forbearance: While you can get a temporary pause on your federal student loans through forbearance, interest might accrue on your loans. You must continue to pay any interest that accrues during the forbearance period. There are two types of forbearance: general and mandatory.

•  General forbearance: You may be able to obtain general forbearance if you experience financial difficulties, medical expenses, a change in your employment status, and other factors. If you have federal Direct Loans, FFEL Program loans, and/or Perkins Loans, you may be able to use general forbearance for no more than 12 months at a time. You can request another general forbearance later. However, over time, you can only obtain three years’ worth of general forbearance.

•  Mandatory forbearance: Your loan servicer must grant a mandatory forbearance for federal Direct Loans and FFEL Program loans under the following circumstances: You receive a national service award while serving in AmeriCorps, under the U.S. Department of Defense Student Loan Repayment Program, during a medical or dental internship or residency program, or as a member of the National Guard activated by a governor. You can also access a mandatory forbearance if the amount you owe each month for all the federal student loans you received is 20% or more of your total monthly gross income or if you qualify for teacher loan forgiveness. You can qualify for mandatory forbearance for no more than 12 months at a time but may request mandatory forbearance when your current forbearance period expires.

Income-Driven Payment

As mentioned earlier, through an income-driven repayment plan, your monthly student loan payment gets set at an amount that reflects your income and family size. You can consider four income-driven repayment plans and fill out an application to be considered for one:

•  Revised Pay As You Earn Repayment Plan (REPAYE Plan): When you access a repayment plan, your monthly payment is recalculated based on a percentage of your discretionary income. In this case, the REPAYE Plan will whittle down your payment to 10% of your discretionary income, and you’ll pay your loans back over 20 years (for loans for your undergraduate education) or 25 years (for loans for your graduate or professional education). If you have an eligible federal student loan, you can generally make payments through the REPAYE Plan.

•  Pay As You Earn Repayment Plan (PAYE Plan): Your monthly payment will generally amount to 5% of your discretionary income and never more than the 10-year Standard Repayment Plan amount. You’ll repay your loans over 10 years. You may qualify if you have higher debt than your annual discretionary income or if your debt represents a significant amount of your annual income. Additionally, you must be a new borrower in order to be eligible.

•  Income-Based Repayment Plan (IBR Plan): Under Biden’s new plan, your monthly payment will generally amount to 5% of your discretionary income if you’re a new borrower (on or after July 1, 2014) but will never amount to more than the 10-year Standard Repayment Plan amount. If you’re not a new borrower (on or after July 1, 2014) your monthly payment will generally amount to 15% of your discretionary income and will never add up to more than the 10-year Standard Repayment Plan amount. For new borrowers, the plan will last for 10 years. If you’re not a new borrower, your plan will last 25 years. You’ll generally qualify if your federal student loan debt is higher than your annual discretionary income or represents a large portion of your annual income.

•  Income-Contingent Repayment Plan (ICR Plan): Your payment will be calculated based on the lesser of these two factors: 20% of your discretionary income or what you would pay on a repayment plan with a fixed payment over 12 years, adjusted based on income. You’d repay for 25 years as long as you qualify with an eligible federal student loan.

Recommended: REPAYE vs PAYE: What’s the Difference?

Are There Any Protections for Private Student Loans?

Private loans generally don’t qualify for forgiveness and offer fewer protections than federal loans. However, it’s worth looking into the protection and hardship options for various private lenders.

Based on a search of top private lenders, check out the table below to walk through the types of programs offered by various private student loan lenders:

Can Private Student Loans Be Forgiven by the Federal Government?

As noted above, private student loans do not qualify for federal loan forgiveness. However, there are several other alternatives that you can consider through your private loan lender. Though you can’t apply for income-driven repayment plans or take advantage of federal student loan forgiveness, your private loan lender can walk you through your options in order to avoid delinquency or default on your loans.

Can Refinanced Student Loans Be Forgiven by the Federal Government?

You may be wondering, “does refinanced student loan forgiveness exist?” Since refinanced student loans turn into private loans, refinanced student loans cannot be forgiven by the federal government, one of the key differences between federal vs. private student loans. That said, when refinancing, you choose the amount. So if you refinance everything but the $10,000 or $20,000 you expect to be forgiven, that remaining amount of federal student debt still has federal protections and is eligible for forgiveness.

You may have also have heard about the possibility of the Biden administration offering loan forgiveness on a wide scale and may wonder, “Will refinanced student loans be forgiven in addition to non-refinanced private loans?” Unfortunately, the current plan applies only to certain federal student loans, and there is no proposal to include refinanced student loans in the future. The administration would likely not be able to forgive the loans of private student loan borrowers or in the case of refinanced student loans.

Options to Consider When You’re Unable to Make Your Student Loan Payments

As mentioned, it’s a good idea to contact your loan servicer to calmly explain how you’re having trouble making your student loans. In most cases, your lender will work with you to discuss a schedule for affordable payments.

Here are a few other options you may want to consider in this situation:

•   Put together a budget: Putting yourself on a budget may help you allocate the right amount toward all of your expenses, including your student loans.

•   Get an extra job: Consider getting an extra job in order to generate more income to put toward your student loans.

•   Cut expenses: It’s easy to spend too much on subscriptions, cable, or other things. Cutting expenses could free up money so you have more to put toward your student loans.

•   Explore student loan modification: You may also pursue a student loan modification, or a change to the terms and conditions of the repayment of an existing student loan. Learn how student loan modification works.

•   Refinance: Finally, consider refinancing your student loans to a private loan lender to lower your interest rate or your payments. You can use our calculator for student loan refinance rates to see how much refinancing could potentially save you.

Recommended: Passive Income Ideas

Explore Student Loan Refinancing With SoFi

Because refinancing federal student loan(s) means converting them to a private student loan, the amount of federal debt that you refinance will no longer be eligible for federal forgiveness or other federal benefits. So if you are eligible for Biden’s one-time forgiveness, you can leave out the amount you expect to be forgiven — and refinance the rest.

If you think a refinance fits your needs, don’t forget to look into all of the benefits and drawbacks that apply to your particular lender. For example, if you’ll owe a penalty if you pay off your student loans early, you may want to explore other options. Check out refinancing student loans now with SoFi, which offers competitive rates and charges no prepayment penalties.

FAQ

Can private student loans be forgiven?

You cannot access the same loan forgiveness options for private student loans that you can get with federal student loan forgiveness. However, don’t discount the private student loan protections you can take advantage of when you want to refinance your student loans.

Can you get your student loans forgiven if you can’t afford them?

Yes, you can get your federal student loans forgiven as long as you meet the eligibility requirements — but it’s important to remember the key words “federal student loans.” You cannot get private student loans forgiven.

When will student loans be forgiven?

On Aug. 24, 2022, President Joe Biden announced that individuals who earn less than $125,000 per year will be eligible for $10,000 in federal student loan cancellation and Pell Grant recipients are eligible for an additional $10,000 of forgiveness. Since then, there have been legal challenges to the student debt relief, and a court-ordered stay.

Photo credit: iStock/damircudic

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.

In late August 2022, President Joe Biden announced a federal student loan forgiveness program, which will cancel up to $20,000 in student loan debt for qualifying borrowers. While many details need to be fleshed out by the administration, the plan will cancel $10,000 in debt for individuals earning less than $125,000 per year ($250,000 for married couples who file taxes jointly or heads of households) and $20,000 for those who had received Pell grants for low-income families.

Prior to President Biden’s announcement, there was fierce debate among politicians, lawyers, and other stakeholders on whether the president could actually cancel student loan debt. Proponents claim that the president has the authority to cancel federal student loan debt without input from Congress, while opponents argue that the program is an executive overreach and illegal. The debate will rage on, even after the student loan forgiveness announcement; the move will likely be challenged in court in subsequent months to determine if the president can cancel student loan debt.

Can the President Forgive Student Loan Debt by Executive Order?

On the 2020 presidential campaign trail, Biden ran in part on a student loan reform platform. On top of suggesting potential changes to existing federal student loan forgiveness programs, he floated the possibility — both in Tweets and in campaign speeches — that he supported a proposal to forgive $10,000 in federal student loan debt.

Recommended: Student Debt Relief: Biden Cancels Up to $20K for Qualifying Borrowers

However, as mentioned above, it was unclear whether the president had the legal authority to cancel federal student debt by executive order and without any legislative action. Even some top aides argued that the president should work with Congress to pass legislation that would cancel student loan debt.

So, as part of the federal student loan forgiveness announcement, the Department of Education released a memo laying out the legal justification that would allow the president and the executive branch to cancel student loan debt.

The memo states that the HEROES Act, which was enacted following the Sep. 11, 2001, terrorist attacks, gives the Secretary of Education the power “to grant relief from student loan requirements during specific periods (a war, other military operation, or national emergency, such as the present COVID-19 pandemic) and for specific purposes (including to address the financial harms of such a war, other military operation, or emergency).”

The Biden administration determined it could cancel federal student loan debt with this justification. And thus, President Biden announced the federal student loan relief plan .

Nonetheless, opponents of the plan will likely challenge the move in the courts, so there is a chance that the widespread cancellation of federal student loans will not be carried out.

Could Student Loan Relief Affect Private Student Loans?

The widespread cancellation of up to $20,000 in student debt will only apply to borrowers with different types of federal student loans, including PLUS Loans.

If you’re looking for private student loan relief, namely to lower your payments, you may want to consider refinancing.

Recommended: The Advantages and Disadvantages of Student Loan Refinancing

Student Loan Debt That the President Has Forgiven So Far

Before the recent announcement, the Biden administration forgave nearly $32 billion in student loan debt as part of various initiatives.

In mid-August 2022, the administration said it would cancel $3.9 billion in student loan debt for 208,000 students who attended ITT Technical Institute, a now-closed for-profit school. Additionally, the Biden administration erased $5.8 billion of educational debt for all former students of Corinthian Colleges, another now-closed for-profit school. This latter cancellation was the largest single student-debt cancellation ever by the United States government.

Another $7.3 billion in student loans were obliterated for 127,000 borrowers through amendments to the Public Service Loan Forgiveness Program. This allows non-profit and government employees to have their remaining debt forgiven after 10 years or 120 payments.

And more than $8.5 billion in student loans have been forgiven for 400,000 borrowers with a total and permanent disability.

Additionally, $7.9 billion of student loans was forgiven for 690,000 borrowers through borrower defense to repayment. People can apply for borrower defense if their education provider deceived them “or engaged in other misconduct in violation of certain state laws,” according to the ED’s Federal Student Aid office.

Identifying Existing Repayment Options

Borrowers have been in limbo, waiting to know if and how much student loan debt the Biden administration will cancel. But even with a little more clarity, many details still need to be worked out, like how borrowers can apply for forgiveness.

With student loan interest rates climbing, it could be a good idea to focus on the aspects of your educational debt that you can control.

One place federal borrowers can start is to determine if they qualify for existing federal student loan repayment programs — including income-driven repayment, deferment, and public service student loan forgiveness.

As part of the federal student loan forgiveness plan, the Biden administration also announced that borrowers with undergraduate loans in an income-driven repayment plan would be able to cap their payments at 5% of their monthly income — a change that could reduce bills for millions of borrowers. The government’s current income-driven plans generally cap payments at 10% to 15% of a borrower’s discretionary income. Additionally, loan balances would be forgiven after 10 years of payments, instead of the current 20 years under many income-driven repayment plans, for borrowers with original loan balances of $12,000 or less.

Another place, as mentioned earlier, is to look into student loan refinancing. It’s important to understand the refinancing process. When borrowers refinance federal student loans through a private lender, the borrower forfeits eligibility for federal repayment programs and federal protections like forbearance and deferment. (With private loan refinancing, a new private loan replaces the borrower’s existing educational debt — generally including new loan terms and rates).

Certain private lenders offer hardship programs to provide a cushion for the unexpected — like being laid off for no fault of your own. (Not all lenders offer these programs, so it’s key to read the lender’s terms and fine print). For example, SoFi offers unemployment protection to eligible borrowers.

When weighing whether to pursue student loan refinancing, some borrowers find it useful to research the rates and terms offered by lenders, including any fees or penalties.

The Takeaway

President Biden has announced transformative changes to federal student loans, canceling up to $20,000 in student debt for qualifying borrowers. However, questions about whether the president has the authority to cancel this debt remain. Opponents of the executive order will likely challenge the plan in the courts, and it may be some time until there is a definitive answer to the question of can the president cancel student debt.

Even with the federal student loan forgiveness announcement, many borrowers may not qualify for this debt relief. If this sounds like you and you are considering refinancing your student loans, it may be best to act now. After all, interest rates are on the rise from their historic lows. Instead, you could refinance your student loans and lock in today’s low rate.

FAQ

When will student loans be forgiven?

The Biden administration announced that up to $20,000 of federal student loans will be forgiven for qualifying borrowers. However, details around the plan still need to be fleshed out, like how borrowers can apply for forgiveness and when the debt will be discharged.

Do student loans go away after seven years?

Sorry, there is no program currently in place for that. This belief stems from the fact people see student loans disappear from their credit reports after this amount of time. Seven years after the first missed payment that led to a loan either defaulting or being charged off, the main three credit bureaus (Equifax, Experian, and TransUnion) erase the default status and late payments from reports.

Are student loans forgiven after 25 years?

The answer to this is a “yes, but.” Yes, you can have your student loans forgiven after 25 years, but only if you pay them under an income-driven repayment plan, which only applies to federal loans. The U.S. government offers four income-driven repayment plans.

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.

Money for college doesn’t grow on trees. Or does it? Every year, billions of dollars wait to be plucked from the branches by college students seeking merit-based aid.

The National Merit Scholarship Program alone plans to award more than $28 million in spring 2022. Merit aid is awarded to students based on factors outside of just financial need. These awards generally factor in a student’s skill or ability for a certain specialty.

Brainiacs merit recognition, but a student can earn merit aid based on talent in athletics and other interests, including puppetry and vegetarianism, as well as lineage.

So what’s the catch?

Patience, diligence, and timing come into play. This guide can help students who are starting the search for merit-based aid.

What Is Merit Aid?

College aid can generally be broken down into two categories:

Need-based. Eligibility for need-based aid is based solely on the ability to pay for college. Students can look for state, possibly school, and federal aid by filling out the Free Application for Federal Student Aid, commonly known as the FAFSA®, sharing information about income and assets.

Merit-based. Merit-based aid takes factors beyond financial need into account. According to the Department of Education, merit-based “means that something is based on a student’s skill or ability.”

Students can qualify for merit-based aid, often referred to as merit-based scholarships, with a variety of factors.

Scholarship money does not have to be paid back — it’s a gift. Merit aid can be a one-time payment, or it could be renewable year after year, depending on eligibility and terms of the aid.

Depending on a student’s financial needs, merit aid could cover part or all of their education costs. It might be just one component of a larger financial aid package.

Merit aid can be awarded for both undergraduate and graduate programs, and could be anything from a couple of hundred dollars for books and supplies to thousands of dollars to help cover tuition.

Recommended: FAFSA Guide

Strategies to Find Colleges that Offer Merit Aid

Not all schools offer merit aid. However, at schools where merit aid is offered, on average 22% of the student body received a merit award from the university, according to U.S. News & World Report. Here are a few tips on finding colleges that offer merit aid.

First things first, when you are creating your list of colleges you’re going to apply to — find out which of those offer merit aid. Knowing up front what options may be available to you is helpful and can be important as you prepare to pay for college.

Then, review the typical financial aid offer at your target schools. Some schools publish information on the percentage of students that receive merit aid and the average merit aid amount. Consider contacting the financial aid office if you have specific questions.

Another strategy to potentially improve your chance of merit aid — apply to schools where you are likely to get in. Since merit aid can be awarded on factors such as GPA, standardized test scores, or curriculum, being in the upper echelon of applicants could help put you at the front of the pack for earning merit aid.

In some situations, scholarship money may go unclaimed. Check out this guide to unclaimed scholarships for more information.

Which Schools Offer the Most Merit Aid?

Here’s what students can expect when it comes to merit aid from schools:

•   Generally speaking, private colleges award more merit aid than public institutions.

•   Ivy league schools don’t grant merit aid. No Ivy League institutions offer merit aid to their students. Other competitive universities, such as MIT, Stanford, and Caltech, don’t offer merit aid either.

•   Some higher-cost colleges may offer more merit aid than others. The cost of attending some schools can send a student into shock. However, some costlier schools will offer more merit-based scholarships. Oberlin College, for example, recently offered 42% of its student body merit-based aid, about $17,000 on average, to offset tuition and fees that have reached nearly $57,000.

•   Out-of-state students might be awarded more merit aid than in-state students at a public college or university. Because of the higher cost of attendance for out-of-state students, public schools may offer them merit aid to be more competitive.

•   Honors programs may offer more merit aid. State school honors programs can sometimes come with tuition discounts, or academic scholarships for students who get into the prestigious programs.

Keeping these trends in mind could help students think more strategically about where they’ll attend college based on the chances of being awarded merit aid from the schools.

How to Apply for Merit Aid

While merit scholarships are often referred to as “free money” when it comes to funding education, there is some work involved. Each scholarship will likely have its own requirements and application process, which might include personal essays, recommendations, and interviews. It’s important to read through each application carefully so it’s filled out without error.

Merit-based aid does not hinge on the financial need of the student or family, so should you submit the FAFSA first? Some colleges require students to fill out the FAFSA in order to be considered for school-based scholarships, including those awarded based on academic merit.

Plus, filling out the FAFSA could help you qualify for other types of financial aid, such as need-based Pell Grants or Direct Unsubsidized Loans. A quick aside to note that federal loans offer benefits and protections not necessarily afforded to private student loans. Since the FAFSA is free to fill out, it’s generally worth taking the time to see what other types of aid you qualify for. If financial aid and merit awards aren’t enough, private student loans could help.

Recommended: Private Student Loan Guide

Generally, you won’t need to fill out the FAFSA as a prerequisite for applying for a private merit scholarship.

If you’re not sure about the requirements at your school, it can be worthwhile to call the college admissions office to see if a financial aid application is required to apply for any merit scholarships at that school.

When evaluating merit scholarships from other private sources, keep in mind that each one may have different application requirements and deadlines. Some deadlines may be as early as a year before college starts.

Finding Merit Aid Awards for College

Colleges and universities award merit aid, but there are many other ways to find scholarships, including private organizations and state-level scholarship search tools and directories.

You can learn about private merit scholarships by using search engines like CollegeBoard.org, Fastweb.com, and Scholarships.com. In addition, it can be helpful to talk to your school guidance counselor and the leaders of any organizations you participate in to suss out merit scholarships.

Consider exploring a few of the following avenues when seeking merit aid opportunities:

•   Local groups. Local clubs or foundations offer scholarships. Community chapters of the Lions Club or Rotary Club offer aid for students seeking higher education. Because there’s a smaller pool of applicants, local merit scholarships may even be less competitive.

•   Cultural organizations. Students from minority backgrounds have an opportunity for specific merit aid. Students of Native American descent, those who identify as LGBTQ, and women might qualify for scholarships.

•   Foundations and nonprofits. The Bill & Melinda Gates Foundation offers full scholarships for those who qualify. Local nonprofits or educational foundations might offer small awards to students as well.

•   Businesses. National companies, such as Google , offer generous merit aid.

•   Niche interests and programs. Students who have an interest or hobby can search for merit aid surrounding it. Everything from greeting card creators to puppetry enthusiasts and promoters of vegetarianism have a chance to capitalize on their passions.

Once a student is granted merit aid, the funding might be directly credited to the school to pay for tuition, room, board, or other costs. Or the aid might come directly to the recipient via check. The size of the awards will vary, but seeking out aid in unexpected places can help drive down the cost of education.

Some Cautions About Merit Aid

Merit aid can be incredibly helpful for students paying for college. But, it’s important to understand the full picture of the merit aid awards you receive. Understand the terms of the aid award, and any ongoing eligibility requirements outlined by the scholarship or grant.

For example, is the award for one year? Or is it an annual award over your college education? If it is a merit award to cover each year of college, are there ongoing eligibility requirements such as maintaining a minimum GPA?

Understanding how and when the merit aid awards you earned are paid out can be important to help you avoid financial surprises, like suddenly losing your merit scholarship, down the road. College students will be facing a lot of financial-firsts on their journey. Take a look at SoFi’s Ca$h Course: A Student’s Guide to Money with even more tips and strategies on managing your finances through college.

The Takeaway

A pot brimming with billions of dollars in college merit aid sits waiting every year. Stellar students and athletes come to mind as popular recipients, but merit scholarships are awarded based on other talents, too. To apply, deadlines and details require attention.

Merit aid might just be a piece of the puzzle, depending on the size and terms of the scholarship. Once federal and merit aid options have been exhausted, an undergraduate private student loan may help bridge any gaps.

Private student loans from SoFi offer competitive interest rates for qualifying borrowers, and have no fees, and flexible repayment plans. With an all-online application, SoFi private student loans come with membership benefits and resources.

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

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.

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

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

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Antisocial people tend not to like being around others, which can sometimes be a barrier to getting certain jobs. In reality there are plenty of jobs that do not require any social interaction, making them perfect for an antisocial person.

What Does It Mean to Be Antisocial?

The clinical definition of “antisocial” is someone that shows no regard for others and does not want to be in the company of other people. However, in common usage, antisocial can be used to describe someone that prefers to be alone most or all of the time.

Why It Can Be Difficult for Antisocial People to Find Work

Most jobs require at least some form of interaction, either with customers or coworkers. This can be a struggle for an antisocial person, who would likely prefer to find work that requires limited or no interpersonal interaction.

Antisocial people may also experience anxiety about job interviews, which are typically a prerequisite in the hiring process for many jobs.

What Makes the Ideal Job for an Antisocial Person?

An antisocial person may want to find a job that requires no interaction and can be done from a quiet and isolated location at their leisure. Self-employment can be a career path for antisocial people to consider or jobs that only require interaction through virtual (email, text, etc.) correspondence.

What Kind of Work Does Not Suit an Antisocial Person?

Any job that requires a lot of engagement with others, such as customer service or retail, would likely not be a good fit for an antisocial person. At the same time, any job that requires a lot of on-the-job training or management would likely not be ideal.

15 Entry-Level Jobs for Antisocial People

Antisocial disorder is often diagnosed at a young age. For those looking to start an entry-level career, here are 15 jobs that are well-suited to an antisocial person (with salary data from the Bureau of Labor Statistics):

Computer Programmer

2021 median salary: $93,000
Primary Duties: Write and test code and scripts that enable computer software to function.

Farmer or Rancher

2021 median salary: $73,060
Primary Duties: Oversee the production of crops, livestock and dairy products.

Writer and Author

2021 median salary: $69,510
Primary Duties: Write original copy for personal or business websites.

Aircraft Mechanic

2021 median salary: $65,550
Primary duties: Repair, inspect and perform maintenance on various aircraft.

Craft Artist

2021 median salary: $49,960
Primary Duties: Create original works of art for sale and exhibition using a variety of materials.

Truck Driver

2021 median salary: $48,310
Primary Duties: Pick up, transport, and deliver packages or goods from one location to another.

Machinist

2021 median Salary: $47,940
Primary Duties: Operate mechanical- and computer-controlled equipment used to manipulate metal parts, instruments, and tools.

Embalmer

2021 median salary: $47,780
Primary duties: Prepare the bodies of the deceased for interment.

Medical Transcriptionist

2021 median salary: $30,100
Primary duties: Transfer voice recordings from physicians and other healthcare professionals into formal reports or other documents.

Proofreader

2021 median salary: $43,940
Primary duties: Read content and correct for spelling, punctuation, and grammatical errors.

Assembly Line Worker

2021 median salary: $37,170
Primary duties: Use hand tools or machinery to produce vehicles, electronic devices and other materials and goods.

Animal Trainer

2021 median salary: $31,280
Primary duties: Teach animals skills such as obedience, performance, riding, security, and assisting people.

Veterinary Assistant

2021 median salary: $29,780
Primary duties: Feed, bathe and take care of animals in need of treatment.

Janitor

2021 median salary: $29,760
Primary duties: Clear and sterilize buildings, schools, hospitals and other commercial businesses.

Crematory Operator

2021 average salary: $37,490
Primary Duties: Perform cremations, including the preparation and transfer of the body post-service.

Recommended: High Paying Trade Jobs in Demand

The Takeaway

Having antisocial tendencies doesn’t mean you can’t find a fulfilling career. In fact, many jobs offer solitude and limited people interaction, which can appeal to many antisocial and introverted individuals.

Regardless of your chosen career path, it’s important to exercise responsible spending and money habits and keep track of your financial goals.

SoFi can help you track your money like a champion, with tools for monitoring your credit score, setting financial goals and monitoring your spending.

FAQ

What jobs require no social interaction?

Computer programmers that work from home, janitors that work night shifts, and farmers and ranch-hands typically have little to no social interaction in their day-to-day work.

What is a good job for antisocial people with no experience?

Artisan jobs, online bloggers, and transcriptionists all provide strong starting salaries and require no formal degree or experience.

Photo credit: iStock/ferrantraite

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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Do you know who oversees your student loans? If you’ve taken out loans from a variety of lenders, it can be hard to keep track. But it’s important to know who your student loan servicers and/or lenders are so you can make payments on time and reach out with any questions.

You’ll also want to contact your loan servicer or lender if you’re having trouble paying back your loan to discuss your options. Falling behind on payments or defaulting on a loan can have serious financial consequences. Here’s what to know about the different types of student loan servicers and lenders—and how to identify your own.

What Is a Student Loan Lender?

A lender is any individual or institution that loans money to someone and expects it to be paid back, usually with interest. In the case of private student loans, your lender is typically a bank or other financial institution.

When it comes to federal student loan providers, your lender is the federal government. But while you’re borrowing funds from the government, several different companies—called loan servicers—handle the administration of the loan and collect payments.

What Are Student Loan Servicers?

The federal government contracts with student loan servicers to take care of billing borrowers, setting up repayment plans, handling loan consolidation, and administering other tasks related to federal student loans.

The government currently works with nine different loan servicers to handle Direct Loans and Federal Family Education Loans (FFEL). If you’ve ever wondered, “who is my student loan servicer?” it’s likely one of the following companies:

•  FedLoan Servicing (PHEAA)

•  Great Lakes Educational Loan Services, Inc.

•  Edfinancial (HESC)

•  MOHELA

•  Aidvantage

•  Nelnet

•  OSLA Servicing

•  ECSI

•  Default Resolution Group

What Do Student Loan Servicers Do?

Loan servicers are the main point of contact for the administration of your loan. Here are some of the main functions of federal student loan servicers:

Collect Payments

The U.S. Department of Education assigns your loan to a loan servicer after it’s disbursed. As mentioned, your student loan servicer handles the billing and customer service for your student loans.

For federal loans, you can reach out to your loan servicer to confirm your balance and interest rate, or check your monthly payment. It’s helpful to register on the loan servicer’s site so you can stay on top of payments and understand what you owe. If you have any questions, it’s worth reaching out to ask.

In some cases, the department may decide to transfer your loans from one loan servicer to another. If this happens, you’ll receive a letter from the new servicer that will include the company’s contact information.

Execute Deferment or Forbearance Requests

If you run into financial hardship, contact your loan servicer to discuss options, such as applying for deferment or forbearance. One of the worst things to do is avoid contacting your lender or loan servicer because you’re embarrassed, confused, or overwhelmed.

These institutions are designed to help you understand your loan and pay it off according to schedule, and that means explaining things you don’t understand or working with you to come up with a more affordable repayment plan.

Handle Repayment Plan Changes

Loan servicers can help you figure out the best repayment plan for you and whether to consolidate your student loans. Federal borrowers can change their repayment plan at any time without any fees.

For example, if you’re hoping to lower your monthly student loan payment, you can extend your loan term. You’ll pay more in interest over the life of the loan, but it’s one way to get relief if you’re struggling to make payments.

On the flip side, you can shorten your loan term if you’d like to pay off your loan sooner. There are also income-driven repayment plans that tie the amount of a borrower’s income to their monthly payments.

Help Process Loan Consolidation Requests

If you’re looking to simplify your payments, your loan servicer can help you consolidate your federal loans through the Direct Loan Program, combining different federal loans into a single new loan with an interest rate that’s a weighted average of all of your existing federal loan rates. Keep in mind you’ll pay more interest over the life of the loan due to the rate change.

Your loan servicer can also help you determine if you’re eligible for Public Service Loan Forgiveness or other types of federal loan forgiveness and help you find out if you’re on the right repayment plan to qualify.

How To Find Your Student Loan Servicer or Lender

Finding your student loan servicer can vary depending on the types of student loans that you have. Here are some of the most common ones:

Private Student Loans

There generally aren’t private student loan servicers; your main point of contact is your lender. You can find contact information for your private student loan lender on the emails or billing statements you should be receiving each month once you enter repayment.

Some private lenders also send a welcome packet or call you once you begin repayment. You can also look for their contact details on the documents you received when you first took out the loan, such as a promissory note.

If you’ve completely lost sight of your private student loan lender, you can confirm who they are by checking your credit report. You can request one free credit report annually from each of the three major credit reporting agencies—Equifax, Experian, and TransUnion. The financial aid office at your school may also be able to help you track down your lender.

Federal Student Loan Lenders

For federal student loans, you can log in to the Federal Student Aid site in order to confirm the name of your loan servicers and retrieve their contact information.

Another option is to check the National Student Loan Data System (NSLDS). This Department of Education database is a centralized repository of information about your student loans, aggregating data from universities, federal loan programs, and more.

Federal Perkins Loans

For federal student loans outside of the Direct Loan and FFEL programs, you can find out information about your loan servicer in other ways.

For a Federal Perkins Loan, contact the school that issued it, which may also be your loan servicer. If your Federal Perkins Loan has been transferred to the Department of Education, contact the ECSI Federal Perkins Loan Servicer at 1-866-313-3797.

If you have a FFEL Program loan owned by a private lender and not the Department of Education, you can find the lender’s details on your credit report as well.

Contacting Your Lender or Loan Servicer

Most lenders and loan servicers make it easy for you to contact them. They want you to be able to get in touch easily to make sure repayment goes as smoothly as possible. You can find phone numbers and website URLs for the nine federal loan servicers on the Department of Education site.

Loan servicers are generally available by phone, mail, and email, and some are also accessible through live online chat. You can find contact information for a private lender by searching online or reviewing mail or email correspondence they have sent you.

Why Might You Need to Contact Your Student Loan Servicer?

As mentioned earlier, you can reach out to your federal loan servicer for payment questions or issues or to adjust your payment plan. You can also apply for deferment or forbearance or look into forgiveness options.

Ignoring payment problems, or neglecting your student loans, can backfire in the long term. If your student loans become delinquent or you default on your student loans, there can be serious financial repercussions, including the unpaid balance of the loan being due immediately.

If you’re having trouble making payments, contact your loan servicer to find out payment options that may be available to you.

Don’t try to reach out to a loan servicer for questions about the status of your loan application or disbursement amounts and timelines—those are queries best left to your financial aid office since they are the ones responsible for ultimately disbursing your loan.

The same goes for questions about the Free Application for Federal Student Aid (FAFSA®) should be directed to the Federal Student Aid Information Center (1-800-4-FED-AID).

Recommended: FAFSA Guide

The Takeaway

While you may borrow money from the federal government, student loan servicers—private companies that work with the Department of Education—oversee the administration of your loan. They collect payments, handle applications for deferment or forbearance, assist with repayment plan changes, and offer customer service and general assistance. When you have a private student loan, the lender generally oversees the administration of the loan.

If you have any questions about your loan or if you’re having trouble making payments on your loan, you should reach out as soon as possible to your student loan servicer or lender. They may be able to help you find solutions that will prevent you from defaulting on your loan.

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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