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If you’re wondering “do you have to pay back FAFSA®?”or “do you have to pay back financial aid?,” what you really want to know is whether you have to pay back the federal student loans you’re eligible for after filling out your Free Application for Federal Student Aid (FAFSA).

You will have to pay back those loans, but other types of student aid you get through FAFSA likely won’t need to be repaid. Aside from federal student loans, you can also use FAFSA to apply for grants and scholarships as well as work-study jobs, for which you’d get funds you usually don’t need to pay back.

If you have loans through FAFSA and need to pay them back, read on for information on the three general types of federal student loans and your repayment options for each.

Direct Subsidized Loans

With Direct Subsidized Loans, the government (more specifically, the U.S. Department of Education) pays the interest while you’re still in school at least half-time. That’s what makes them “subsidized.”

The maximum amount you can borrow depends on whether you are a dependent or an independent student, as well as what year of school you are in. However, it is ultimately up to your school how much you are eligible to receive each academic year.

Not everybody qualifies for a subsidized loan. You have to be an undergraduate (not a graduate student) demonstrating financial need and attending a school that participates in the Direct Loan Program. Additionally, the academic program in which you’re enrolled must lead to a degree or certificate.

You also should check how your school defines the term “half-time” because the meaning can vary from school to school. Contact your student aid office to make sure your definition and your school’s match. The status is usually based on the number of hours and/or credits in which you are enrolled.

Direct Unsubsidized Loans

As you’re thinking about “do I have to pay back FAFSA?,” it’s good to know that you will have to pay back all the interest that accrues with Direct Unsubsidized Loans while you’re in school, because these loans are “unsubsidized.” That means the government doesn’t cover your interest while you’re in school like they do with a subsidized loan.

You don’t have to prove a financial need in order to qualify for a Direct Unsubsidized Loan. Additionally, these loans are available to graduate students as well as undergraduate students. Again, you need to be enrolled at least half-time in a school that will award a degree or certificate.

Direct PLUS Loans

There are two types of Direct PLUS Loans:

•   Grad PLUS Loans: These are for graduate or professional degree students

•   Parent PLUS Loans: Parent PLUS Loans can be taken out by parents for as long as their qualifying child is a dependent or undergraduate student

Unlike most other federal loans, PLUS loans require a credit check, and you cannot have an adverse credit history. If you or your parents have bad credit, a cosigner on the loan application may be an option.

With Direct PLUS Loans, you can borrow as much as you need for the cost of school attendance, subtracting the other financial aid you’re getting. However, the interest rate for PLUS loans is generally higher than it is for the other types of federal student loans.

Do I Get a Grace Period on My Federal Student Loan Repayment?

Whether you get a grace period — time after you graduate (or drop below half-time enrollment) during which you do not have to make loan payments — depends on what type of federal student loan you have. Not all federal student loans offer a grace period. Direct Subsidized and Unsubsidized Loans offer a grace period of six months, whereas Direct PLUS loans don’t offer a grace period at all.

Grace periods are meant to give you time to find a job and organize your finances before you have to start making loan payments. They are usually one-time deals; in most cases, you often can’t get a second grace period ​once the initial one ends.

Additionally, not all grace periods are exactly alike. Different loans may offer different grace periods. Policies vary. Check with your loan servicer so that you know for sure when your grace period begins and ends.

Keep in mind that grace periods are usually not interest-free. Some loans accrue interest during grace periods. Many students subscribe to the strategy of making interest payments even during the grace period. Doing this to put money toward student loans can ultimately lower the amount you owe, and interest payments are generally more affordable to handle than principal payments.

Also remember that loan servicers are paid by the Department of Education to handle billing and other services for federal loans. This is one of the basics of student loans. The government gives you a loan servicer; you don’t get to choose one yourself. The loan servicer you get is the one you should contact if you have questions regarding your loan.

Federal Student Loan Standard Repayment Plan

Once you graduate, your repayment plan will depend on various factors, but most of the time the government will place you on its Standard Repayment Plan. The general rule here is that you’re expected to pay off your loan over the course of a decade, and your payments will remain the same for the duration.

Before you are placed on that Standard Repayment Plan, the government gives you a chance to choose a few other repayment options (which we’ll discuss below). If you don’t choose one of those, you’ll automatically be placed on the Standard Repayment Plan.

Additional Repayment Options

Here are a couple of your other repayment options beyond the Standard Repayment Plan:

•   The Extended Repayment Plan: The Extended Repayment Plan can extend your term from the standard 10 years to up to 25 years. To qualify, you must have at least $30,000 in outstanding Direct Loans. As a result, your monthly payments are reduced, but you could be paying way more interest.

•   The Graduated Repayment Plan: Another option, the Graduated Repayment Plan lets you pay off your loan within 10 years, but instead of a fixed payment, your payments start low and increase over time. This may be a good option if your income is currently low but you expect it to increase over time.

Keep in mind that although you can choose these repayment options, you cannot refinance a federal student loan with the government on your own (you can, however, consolidate them). That’s because those interest rates are set by federal law, and they can’t be changed or renegotiated.

Difference Between Refinancing & Consolidating Student Loans

While you can’t refinance your federal loans with the government, you can do so with a private loan company. Before you consider refinancing, be sure to know the difference between refinancing and consolidating student loans:

•   Refinancing means taking out a brand new loan so that you can pay off your existing loans. To refinance, you’ll choose the loan company you feel is best, with (hopefully) better interest rates and repayment terms. Refinancing student loans can be done via a private lender and can be used for both federal and private loans. Keep in mind that when you refinance federal loans with a private lender, you lose access to federal benefits and protections like loan forgiveness programs and repayment plans.

•   Consolidation means placing all of your current loans into one big loan. Doing this typically extends your loan term so that your monthly payment is lowered. The problem with consolidating student loans is that it could mean you wind up paying additional interest. This is because when you consolidate multiple federal student loans, you’re given a new, fixed interest rate that’s the weighted average of the rates from the loans being consolidated.

Refinancing (as opposed to consolidating) your school loans may be a good option if you have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans. One of the advantages of refinancing student loans with a longer term can reduce your monthly payments. Note: You may pay more interest over the life of the loan if you refinance with an extended term. Alternatively, you may be able to lower your interest rate or shorten your term.

Before you apply for that refinancing plan, it’s a good idea to check your credit score, as it is an important factor that lenders consider. Many lenders require a score of 650 or higher. If yours falls below that, you may consider a cosigner on the loan.

Lenders typically offer fixed and variable interest rates, as well as a variety of repayment terms (which is often based on your credit score and many other personal financial factors). The loan you choose should ultimately help you save money over the life of the loan or make your monthly payments more manageable.

The Takeaway

To answer the question, do you have to pay back FAFSA?, if you only got grants, scholarships, or work-study funding through FAFSA, you don’t have to worry about paying FAFSA back, so to speak. But if you got federal student loans through filling out FAFSA, you will have to pay those loans back.

Luckily, you have a number of options to do so. If you have high-interest loans, consider looking into student loan refinancing to see if you can reduce your monthly payments. SoFi offers loans with low fixed or variable rates, flexible terms, and no fees.

Check your rate for student loan refinancing in just two minutes with SoFi.

FAQ

If you fail a class, do you have to pay back your FAFSA financial aid?

In general, failing a class doesn’t mean you’ll have to pay back your FAFSA financial aid. However, if you don’t make Satisfactory Academic Progress (SAP), you could lose your future eligibility for financial aid. Your risk for losing eligibility for future financial aid might be greater if the class you failed is an important component of your major.

If you have leftover credits after financial aid is applied, do you have to pay it back at the end of the semester?

You won’t lose any money that may be left over (called a credit balance) after financial aid is applied to your tuition and other school expenses. The credit balance must be refunded to you within 14 days. That is, unless you direct the school to keep the credit balance and apply it to charges for the next semester.

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.

Inflation has hit all aspects of daily life, including that fun and romantic ritual known as date night. The average cost of dinner and a movie for two now rings in at a steep $159. Ka-ching!

But that doesn’t mean you need to go broke enjoying fun times with your sweetie or getting to know someone new.

Here, you’ll find 27 ideas for date nights that don’t cost much. In fact, some of these date night ideas are more than cheap; they’re free.

Fun Date Ideas for Couples on a Budget

Whether you’re just getting to know each other or you’ve been married for years, here are some ways to enjoy a romantic day or evening out without busting your monthly budget.

1. Watching the Sunrise or Sunset Together

Watching the sun come up or sink over the horizon with your sweetie can be a very romantic and cute date idea. Depending on which time of day you choose, you can bring coffee and donuts or a bottle of wine and some cheese and crackers to mark the occasion.

2. Taking Dance Lessons

Couples can show off their moves while taking a lesson in salsa, ballroom dancing, or swing. Consider a home viewing of “Dirty Dancing” afterwards to close out the date.

💡 Quick Tip: If you’re saving for a short-term goal — whether it’s a vacation, a wedding, or the down payment on a house — consider opening a high-yield savings account. The higher APY that you’ll earn will help your money grow faster, but the funds stay liquid, so they are easy to access when you reach your goal.

3. Going on a Hike

Getting some fresh air and walking in a beautiful area together can be a great bonding experience. To make sure you don’t take on more miles (or hills) than you can handle, you can read reviews of hikes and check out trail maps online before you head out.

4. Picking Apples or Berries

This can be a great idea for a “sweet” date. In the fall, couples can pick apples together and then go home and make some baked apples or an apple pie. In the summer, consider heading to a local farm to pick berries. You can use your harvest to make some tarts or smoothies afterwards.

5. Checking Out a Botanical Garden

Many towns have beautiful botanical gardens where people can walk around. This is a lovely way to spend a Sunday afternoon and it should be either free or low cost.

6. Staying In and Watching a Movie

One (or both) or you may have a Netflix, Hulu, or Amazon Prime subscription. Why not take advantage and watch a movie together at home? You can open some wine and order a pizza or inexpensive takeout.

Not a member of those networks? Look into free services like Hoopla or Kanopy.

Recommended: How to Save Money on Streaming Services

7. Gardening Together

Another cute date idea is to garden together. Whether you and your honey live together or apart, you can start your own garden and fill it with flowers, herbs, and vegetables. At the end of the day, you’ll have a shared sense of accomplishment.

8. Checking Out a Free Museum

Some museums are always free, while others will have free days throughout the month. Couples can go and see cool artwork and have stimulating conversations about the artists.

💡 Quick Tip: An emergency fund or rainy day fund is an important financial safety net. Aim to have at least three to six months’ worth of basic living expenses saved in case you get a major unexpected bill or lose income.

9. Going to a Free Concert

Many towns will hold free concerts in the park during the summer. You can bring a blanket and some food and enjoy a picnic dinner while listening to great live music.

Recommended: How to Save Money Daily

10. Taking a Scenic Drive

You can pick somewhere you’ve never been or head to a favorite spot, such as a nice drive in the country or along the coastline. Consider creating a playlist of tunes you both love for the ride.

11. Breaking Out the Board Games

Who doesn’t love a little competition? This can be a great idea whether you play against one another or with another couple. You can even throw in some prizes from the Dollar Store to up the ante just a bit.

12. Eating at Happy Hour

Want to sidestep a pricey dinner? Here’s a way to save money on food: Couples can find out which establishments have a happy hour and then enjoy some appetizers and drinks for a cheap date idea.

13. Visiting Open Houses

Whether you are actually looking to buy a house or just want to be a voyeur, or pick up some design ideas, consider checking out open houses in your area. You can search for open houses on sites like Redfin and Zillow.

14. Cooking a Dish Together

For a fun and tasty evening, you might go to your local farmer’s market or grocery store and then come home and make a gourmet meal together. If neither of you are skilled in the kitchen, you can order a meal delivery service that sends all the instructions and ingredients you need.

15. Checking Groupon for Deals

You can often find some interesting things to do for date night by checking Groupon to see what experiences are on sale. You might find a wine-and-paint night or perhaps a sale on arcade tickets.

16. Renting a Pool

For a fun date on a hot summer day (or night), consider checking out Swimply to see if you can rent out a private pool in your area by the hour. Pool toys and snacks may not be included, so you may want to pack everything you need before heading over for a swim.

17. Going on a Bike Ride

Another cute date idea is to go on a bike ride together. If you don’t own bikes, you may be able to rent them from the city or a local company. You can research local biking trails online before you go.

💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided

18. Taking a Ferry Ride

Typically, ferry rides are pretty cheap. They may even be free. Consider taking a ride at sunset so you can enjoy a beautiful view.

19. Checking Out a Local Park

When the weather is nice, you might want to pack a blanket and some food and head to a nearby park to enjoy a lazy afternoon together. Have any leftover bread? Maybe you can feed it to the ducks or birds.

20. Going to a Pet Cafe

Pet cafes are now located in many towns around the county. Couples can sip on lattes while petting cute dogs and cats at the same time.

Recommended: Tips to Save Money on Pets

21. Renting a Canoe or Kayak

If you split the cost of a kayak or canoe rental, you can enjoy a relatively inexpensive afternoon paddling around a lake or bay together.

22. Taking a Walk in the Mall

Just because you go to the mall, it doesn’t mean you have to shop. Instead, you can do some browsing and not spend any money. Though you might want to share some favorite cheap mall food like Cinnabons and Auntie Anne’s Pretzels.

23. Listening to a Podcast

Podcasts can be just as entertaining as television and movies. Consider grabbing some drinks and snacks and listening to a great podcast together.

Recommended: What Are Average Monthly Expenses for One Person

24. Thrifting Together

Here’s a great way to save money on clothes and spend time together: Hit some local thrift stores for a cute and cheap date night. Maybe you’ll find some treasures or just try on outfits from decades past and make each other laugh.

25. Competing in a Video Game Competition

If you and your mate enjoy playing video games, consider challenging each other in a video game competition. You can offer fun rewards, such as the winner gets a gourmet home-cooked meal or doesn’t have to do any dishes all week.

26. Having a Spa Night

For couples who live together, a nice date night idea is to have a spa night at home. You can include foot massages, a bubble bath, and face masks for some relaxation, and laughs.

27. Doing Crafts Together

Couples that are feeling crafty can go to their local art store and buy supplies they need to create something together. You might even choose a sentimental project like a wreath made of corks from bottles you’ve shared or a scrapbook of vacation memories.

Recommended: How to Create a Budget in 6 Steps

The Takeaway

Going out on a “date” doesn’t have to mean dinner at a fancy restaurant followed by a movie. With a little bit of imagination and planning, couples can enjoy a night (or day) out that costs considerably less, yet can be just as romantic and fun.

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