Going to school in the summer can be a wonderful way to complete your education more quickly or explore subjects you don’t have the time to learn about during the school year. While attending summer school is often a smart move, there’s one big catch: You have to figure out how to pay for the coursework.
Student loans for summer classes might be available, but your options will depend on whether you’ve met the limits for federal student aid during the academic year.
Read on to learn about the challenges you might face getting funding for summer school. You’ll also find out how to afford the classes you want to take.
The big challenge you’ll face in paying for summer classes
Neither the Department of Education nor private student loan lenders have student loan options specifically for summer classes. The loans available for summer programs are identical to the loans you use to pay for school during the academic year.
However, there’s an important caveat: Limits on your federal student aid apply to summer classes, too. If you’ve already maxed out your federal aid for the academic year, you won’t be able to borrow more money from the Department of Education for summer classes.
Most undergraduate students face annual federal loan limits between $5,500 and $7,500, though you might be eligible for more if you qualify as an independent student or if your parents were denied a Parent PLUS Loan. Check out this article on federal student aid limits for more details.
If you’ve maxed out your federal loan funding, your only option for student loans will be from private lenders. Let’s take a closer look at both federal and private loans so you can decide what’s best for your situation.
Federal student loans for summer courses
If you haven’t maxed out on federal loans for the academic year, borrowing from the Department of Education should likely be your first choice. Federal loans come with important benefits not available with private loans, including income-driven repayment plans and Public Service Loan Forgiveness.
Federal loan options include:
- Direct Subsidized Loans are available to undergrads with financial need. The government pays interest on Direct Subsidized Loans while you’re in school and when your loans are in deferment after graduation. The interest rate on Direct Subsidized Loans is 4.45%.
- Direct Unsubsidized Loans are available to undergraduate and graduate students regardless of need. You’re responsible for interest charges even while you’re in school, and unpaid interest is added to your loan balance. The interest rate on Direct Subsidized Loans for undergraduates is 4.45%.
- Federal PLUS Loans might also be available to grad students and parents of undergraduates. The interest rate is 7.00%.
All federal loans have fixed interest rates set by the government. For most federal loans, you won’t need to pass a credit check to qualify.
Private student loans for summer courses
Because many students exhaust their eligibility for federal aid during the school year, there’s a good chance you’ll need to take out private student loans to cover summer classes.
Private loans are available from local and national banks, online lenders, and credit unions. Interest rates vary based on the lender and your qualifications.
You’ll need good credit and proof of income to qualify for a private loan. If you don’t have a good credit score or income, a cosigner could help you qualify. However, your cosigner would be equally responsible for loan repayment. You should have an in-depth conversation with any potential cosigner about the risks before you take this route.
Applying for federal student loans for summer classes
The most important thing you must do to get federal loans or grants for summer classes is complete your Free Application for Federal Student Aid (FAFSA). This can be confusing when you’re attending summer classes.
The FAFSA runs for the entire academic year. But your school’s definition of an academic year might not line up with the Department of Education’s. You need to know which academic year your summer classes fit into so you can choose the right FAFSA to fill out.
Your school’s financial aid office can tell you which FAFSA form to complete. The sooner you complete it, the more likely it is you’ll receive funding; many sources of aid are offered on a first-come, first-served basis.
To complete the FAFSA, you’ll need to provide information about the school you’re attending, your income, and any assets you have. You’ll also need to provide similar financial information on your parents. The school will receive this information and put together a financial aid package, including scholarships, federal loans, and grants.
Just remember that you don’t have to borrow every cent that’s offered to you. If you can work while attending summer classes and borrow less, repayment after graduation could be easier.
Applying for private student loans for summer classes
Once you’ve exhausted federal funding, applying for private loans is often your best option for covering the cost of your summer classes.
Most private lenders will allow you to borrow up to the school-certified cost of attendance. You can comparison shop among private lenders to determine which one offers you the best overall deal.
Pay attention to interest rates, repayment options, and the lender’s reputation. Interest rates can be fixed or variable. A fixed rate means your payment and interest charges will stay the same throughout the life of the loan. A variable rate can change over time, affecting your interest charges and monthly payments.
There are many great private lenders offering low or no payments while you’re in school, affordable interest, and borrower protections. While you might need a cosigner to qualify, borrowing from a private lender can often make it possible to fund a summer program you otherwise wouldn’t be able to pay for.
Grants and scholarships can help you pay for summer classes, too
Grants and scholarships are a form of aid you don’t have to pay back. Explore these sources of funding throughout your undergraduate career.
Grants for summer classes
Pell Grants, which are available based on financial need, are the largest source of grant aid. They’re also one of the best options for covering summer classes.
Students can obtain Pell Grants for up to 12 semesters. In 2017, the grants became available for summer semesters. This is the first time since 2011 that Pell Grants were made available for summer courses.
Unfortunately, if you’ve already maxed out your Pell Grant, this source of free money won’t be available for summer coursework. The maximum award amount can vary each year. The award amount from July 1, 2017, to June 30, 2018, is $5,920. To become eligible, you’ll need to complete the FAFSA.
States might also provide grant funding to students who want to take summer courses. For example, Pennsylvania has a Summer State Grant Program to help students cover the cost of summer classes.
You can find out if your state runs a similar program by using this map of state financial aid programs provided by the National Association of Student Financial Aid Administrators. Your school can also help you explore grant opportunities.
Scholarships for summer classes
Scholarships might be available from the summer program you wish to attend, from local or national businesses, from churches, or from many other organizations.
Scholarships can cover some or all of the costs of your courses, and you won’t have to pay back any of the money. This guide to finding scholarship money will give you a jumping-off point to start your search for funding. You should start applying for scholarships early to maximize your chances.
Going to summer school is a wonderful opportunity, but paying for it can be confusing. Grants, scholarships, and student loans for summer classes can all play an important part in funding your coursework. But each comes with its own set of rules. Start your search for funding early so you’re not scrambling for money when classes start.
Need a student loan?Here are our top student loan lenders of 2018!
|1 Important Disclosures for CollegeAve.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or Nationwide Bank, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Information advertised valid as of 11/1/2018. Variable interest rates may increase after consummation.
2 Important Disclosures for Discover.
3 Important Disclosures for Ascent.
Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB) or Turnstile Capital Management, LLC (TCM), which are not affiliated entities. Certain restrictions and limitations may apply. Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. All loan products may not be available in certain jurisdictions. Other terms and conditions apply. Ascent is a federally registered trademark of TCM and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.
* Application times vary depending on the applicants ability to supply the necessary information for submission.
* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
4 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
5 Important Disclosures for PNC.
PNC Bank is one of the nation’s largest education loan providers. For over 40 years, PNC has been committed to helping students and their families make possible the adventure of college.
6 Important Disclosures for SunTrust.
Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.
Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.
SunTrust Bank, Member FDIC. ©2018 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.
7 Important Disclosures for LendKey.
Additional terms and conditions apply. For more details see LendKey
8 Important Disclosures for CommonBond.
A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.
Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.
Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.
Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.
9 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|3.94% – 12.78%1||Undergraduate, Graduate, and Parents|
|3.97% – 12.97%3||Undergraduate and Graduate|
|4.34% – 12.99%2||Undergraduate and Graduate|
|4.12% – 10.98%*,4||Undergraduate and Graduate|
|5.03% – 11.23%5||Undergraduate and Graduate|
|4.12% – 13.13%6||Undergraduate and Graduate|
|4.92% – 10.01%7||Undergraduate and Graduate|
|3.72% – 9.68%8||Undergraduate, Graduate, and Parents|
|4.26% – 12.13%9||Undergraduate, Graduate, and Parents|