Fafsa Summer Loans: What You Need To Know

Students in the US can get financial aid for summer classes through FAFSA, which provides grants, work-study, and loans. To be eligible for federal loans for summer classes, students typically need to be enrolled at least half-time. The availability of federal aid for summer classes depends on whether students have remaining financial aid from the previous academic year. Students can check their remaining federal aid through the National Student Loan Data System.

FAFSA covers summer classes

Summer classes are often covered by FAFSA, but it depends on a few factors. Firstly, it depends on whether you have leftover financial aid from the previous academic year. If you have leftover federal aid, it can be used for summer classes, but there is no separate federal aid given specifically for summer benefits.

Secondly, your individual school determines which FAFSA application they use for the summer session. For example, if you take classes in August 2023, this may fall into the 2023-2024 school year, depending on your school's schedule. It is best to check with your school's financial aid office to ensure you have completed the correct form.

Thirdly, you will need to be enrolled at least half-time (usually six credits) to qualify for federal loans for summer classes.

If you have leftover financial aid from the previous academic year and are enrolled at least half-time, your summer classes will likely be covered by FAFSA.

Eligibility for federal loans

To be eligible for federal student loans, you must meet the following criteria:

Citizenship

Firstly, you must be a US citizen or national, or one of the following eligible non-citizens: a US permanent resident, a citizen of the Federated States of Micronesia, the Republic of Palau, or the Marshall Islands, or a conditional entrant (only if issued before April 1, 1980).

Academic Progress

Secondly, you must meet or exceed the Satisfactory Academic Progress (SAP) standards, which are enforced to ensure financial aid recipients' progress toward degree completion.

Drug Convictions

Previously, drug convictions affected federal student loan eligibility. However, this is no longer the case. While you will be asked about drug convictions on the FAFSA form, answering 'yes' will not impact your eligibility.

Default on a Federal Educational Loan

If you are in default on a federal educational loan, you are ineligible for federal student aid funds. However, you can take specific actions to reinstate your eligibility, such as repaying the defaulted loan in full or making satisfactory repayment arrangements.

Enrollment Status

To qualify for federal loans for summer classes, you must be enrolled at least half-time, which is typically six credits. It is important to check with your school to ensure you meet the required number of credits for half-time enrollment.

Maximum Available Aid

You can only receive federal financial aid for summer classes if you haven't taken your maximum available aid for the academic year. Federal aid is distributed on a first-come, first-served basis, and you can check your remaining aid through the National Student Loan Data System.

Pell Grant for summer

The Pell Grant is a federal grant that may be available year-round for undergraduate students who have not earned a bachelor's degree. The maximum time frame that students may receive a Pell Grant is the equivalent of 12 full-time semesters or 600%. Summer Pell awards will apply towards the Lifetime Eligibility Used (LEU). One full-time semester of a Pell award is equal to 50%.

Pell Grant eligibility is based on the courses in which students are enrolled. If a student is eligible for the Pell Grant during the fall and/or spring semesters, they may qualify for the Pell Grant for the summer as well. For example, if a student is eligible for $5,000 for the fall and spring semesters, they may be eligible for up to another $2,500 for the summer semester. However, if a student has unsatisfied requirements for financial aid eligibility, they may need to satisfy those requirements before their Pell Grant eligibility can be determined.

To be eligible for the Pell Grant, students must enroll in at least half-time degree-pursuant courses. The school will calculate the student's payment for the summer term using the same formula that was used to calculate payments for the other terms in the award year. If a student drops or withdraws from classes, their award may be reduced or canceled, and they may owe a tuition balance to the college.

To qualify for the Pell Grant for summer classes, students must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA will determine eligibility for the whole academic year, including summer sessions. Students can check how much federal aid they've used up in any given year and how much remains by using the National Student Loan Data System.

Dollar limits on federal aid

There are no income limits for eligibility through the Free Application for Federal Student Aid (FAFSA). However, your family's income does affect your financial aid eligibility. The FAFSA takes into account factors such as family size, assets, and other financial resources in addition to income. Through a comprehensive assessment, the application calculates the Student Aid Index (SAI), which helps determine eligibility for federal student aid.

The amount of money you are eligible to receive will vary depending on your income, but it does not preclude you from submitting a form to see what grants and student loans you may qualify for. The FAFSA also provides access to non-need-based programs that you might qualify for if you meet the basic applicant requirements, such as being a U.S. citizen, permanent resident, or eligible noncitizen.

If you don’t qualify for need-based aid, other financial aid options are available to all students regardless of financial standing, such as scholarships and unsubsidized loans. Scholarships are typically awarded based on achievements rather than financial needs. Unsubsidized loans are available to undergraduate and graduate students who need additional funding for college, and there’s no financial need requirement. However, you’re responsible for paying interest on these loans at all periods, including while attending school and during periods of deferment.

Pell Grants are solely for students with exceptional financial need. The Pell Grant is a federal grant worth up to $7,395 for the 2023-24 school year. The amount available for the 2024-25 school year has not yet been announced.

Private student loans

FAFSA and federal student loans are generally a better option than private student loans. This is because federal loans have lower interest rates, and benefits like income-driven repayment plans and student loan forgiveness opportunities. However, private student loans can be used to bridge any funding gaps between your federal student loans and your cost of attendance.

To get a better rate and loan terms, you may choose to apply for a private student loan with a co-signer, even if you can qualify for the loan on your own. In evaluating a loan application, lenders will look at your and your co-signer’s credit history. If your co-signer has a better credit score than you, it could result in a lower interest rate and lower fees for your loan.

Frequently asked questions