Navigating Summer Tuition Loans: A Comprehensive Guide

Many college students use the summer to relax before the next semester. However, students might enroll in a summer term to make up a class, reduce the time to graduation, or for other reasons. Fortunately, summer classes do not always have to come out of pocket. This guide explores the options available for financing summer tuition, helping students make informed decisions about their education.

Why Take Summer College Classes?

Summer classes can be beneficial by reducing the costs of room and board in the long run if you’re graduating early. Summer classes typically are cheaper per credit hour than during the academic year, experts say. During the academic year, we have a base tuition amount that we are charging for full-time tuition. Most private colleges and universities are more expensive in the full-time tuition than state schools. And I think during the summer, most students are part-time, so it's set up more on a per-credit or per-unit basis as opposed to a full-time and then slicing that up into a part-time rate. The benefits aren't just cost-related. Taking classes over the summer allows students to reduce their course load during the academic year and, in some cases, graduate early. Our curriculum is rather challenging, or can be, so I think sometimes students will use it as a way to get a little bit ahead so that they don't have to take as full of a course load during the academic year. We also have a lot of students that will double and even triple major or have a minor or two as well, so it helps them take a number of classes to satisfy those requirements.

Initial Steps to Funding Summer Classes

Before exploring loan options, it's crucial to exhaust all other financial aid resources. We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college.

Understanding the FAFSA

The only way to qualify for federal financial aid for summer classes is by completing the Free Application for Federal Student Aid (FAFSA). It is the most important step you can take when figuring out how to pay for college. If you already have a FAFSA on file for the previous fall/spring academic year, you may not need to file a new one for summer. Your individual school determines which FAFSA application they use for summer sessions. For example, you may have filled out the 2022-2023 school year application, but if you take classes in August 2023, that may fall into the 2023-2024 school year depending on your school’s schedule.

You may be able to get federal financial aid for summer classes if you haven’t already taken your maximum available for the academic year and if you’ll be enrolled at least half time during the summer session. It all starts with your FAFSA, and your individual school determines which FAFSA application they use for the summer session. If you already have a FAFSA on file for the previous fall/spring academic year, you may not need to file a new one for summer. Alternatively, if they need a new FAFSA for summer classes, you’ll want to apply as soon as you can. The National Student Loan Data System is a great way to check how much federal aid you’ve used up in any given year and if you have anything remaining.

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Key FAFSA Deadlines

2023-2024 Academic Year: Online applications will launch by December 31, 2023. Each college or career school might have its own deadline.

Pell Grants for Summer

Students may qualify for "year-round Pell," which was reinstated in the 2017-2018 school year. This means they could be eligible to receive up to 150% of their award, and some of it can be applied to summer terms. Department of Education, a student awarded a $3,000 Pell Grant, for instance, is likely to receive $1,500 each for fall and spring semesters and may qualify for up to $1,500 more for summer term if enrolled at least part time. The grant amount students can receive depends on several factors, such as their student aid index, the cost of attendance at their college and whether they will have full-time or part-time status.

Institutional Aid and Outside Scholarships

School Aid and Outside Scholarships are more limited during the summer, experts say. However, for outside funding, Kenneth Ferreira, director of student financial services at Franklin Pierce University in New Hampshire, suggests students ask the scholarship organization if the award can be broken up into three disbursements instead of two - the third for summer courses. Another option, he adds, is that students "can appeal to the scholarship organization to let them know that they plan on enrolling in the summer and therefore, their cost is more than it might be during the academic year, so their need for scholarship support is higher." Some scholarships are offered year-round and don’t impose limits on which semesters they apply to. Whether you’ve been awarded scholarship money in the past or you’re applying for the first time, it’s definitely worth a shot to apply for a scholarship if you are thinking about a summer session.

Federal Student Loans

Federal student loans can be used to pay for summer classes as long as you’re enrolled at least half-time at an accredited institution. To get started, complete the Free Application for Federal Student Aid (FAFSA). While the federal deadline is June 30, your school may have an earlier deadline for summer aid, so check with your financial aid office.

Once you’ve filled out the FAFSA, your eligibility will be based on other factors that may be more applicable to the summer session. You will need to be registered for classes at least half-time (which is usually six credits) in order to qualify for federal loans for summer classes.

Federal Student LoansStudents "can ask their institution to do what's called a borrower-based award year, where the award year for the student is defined based on their enrollment instead of the academic calendar," says Ferreira, who is also president-elect of the Eastern Association of Student Financial Aid Administrators. "So there's absolutely access to financial aid in the summer. It's just how students choose to use all of their eligibility over the course of a 12-month period versus the nine."

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Subsidized Loans: Subsidized loans are available to undergraduate students with financial need. Department of Education pays the interest while you’re in school at least half-time, during the grace period, and during any deferment periods.
Unsubsidized Loans: Unsubsidized loans are available to both undergraduate and graduate students regardless of financial need. Unlike subsidized loans, interest accrues while you’re in school.
Parent PLUS Loans: Parent PLUS Loans are federal loans parents can take out on behalf of their undergraduate children.

Private Student Loans: Bridging the Gap

If federal loans don’t fully cover your summer costs, private student loans can help bridge the gap. College Ave Student Loans may be able to help. We offer private student loans that you can tailor to meet your needs.

Key Considerations Before Applying for Private Loans

Evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

Sallie Mae Student Loans

Sallie Mae is one of the oldest and largest student loan lenders. There are no application or origination fees to apply, and a decision can be received in just three minutes with an online application. Students can prequalify online in just two minutes without affecting their credit score.

Rates (APR): 5.59% - 16.99%
Loan amounts: $1,000 - 100% of certified costs
Repayment terms: 5, 7, 10, 12, or 15 years
Repayment plans: Full, interest-only, $25 flat, or deferred
Enrollment: At least half-time
States: 49 states and D.C.

Sallie Mae offers various types of student loans:

Undergraduate and Graduate School loans are for students at participating degree-granting schools.
Career training student loans are for students at participating non-degree-granting schools.
Smart Option Student Loan information is for undergraduates only.
Graduate Certificate/Continuing Education coursework is not eligible for MBA, Medical, Dental, and Law School Loans.

To apply for a Sallie Mae loan, applicants must be U.S. citizens or permanent residents and provide an unexpired government-issued photo ID to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

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Repayment Options:

Sallie Mae offers several repayment options to suit different financial situations:

Full Repayment: Borrowers make full principal and interest payments.
Interest-Only Repayment: Borrowers pay only the interest accruing on the loan for a set period.
$25 Flat Repayment: Borrowers make a fixed $25 payment each month for a set period.
Deferred Repayment: Borrowers postpone all payments until after graduation.

Additional Benefits:

Cosigner Release: Only the borrower may apply for cosigner release.
Graduated Repayment Period (GRP): GRP allows interest-only payments for the initial 12-month period of repayment when the loan would normally begin requiring full principal and interest payments or during the 12-month period after GRP request is granted, whichever is later. At the time of GRP request, the loan must be current.

ELFI Student Loans

ELFI student loans come with personalized customer service through a dedicated student loan advisor.

Citizens Student Loans

Citizens is here to help you navigate your student lending options for today and the future.

Alternative Strategies for Funding Summer Classes

Part-Time Summer Job or Internship

If you’re planning on a summer session, it’s unlikely that a full-time summer job will be possible. However, since summer sessions tend to be lighter than other semesters, a part-time summer job might fit in comfortably with your schedule. As long as you’re sure that you’re not taking on too much and that it won’t interfere with your studies, a part-time summer job can be a great way to offset those summer session costs, while also getting hands-on experience. Another option is to apply for a paid internship. You will not only earn credits towards your degree but also make some money too.

Community College Classes

Consider taking summer classes at a different school, such as a local community college. As long as you’re able to transfer the credits to your full-time school and use them towards your degree, this could help you save money on tuition and graduate faster. You could even expand your search to include online classes as well. Just make sure you know exactly how the credits will transfer and any steps you need to take to make that happen. You don’t want to waste time and money on classes that won’t help toward your goal of graduation. Community college and summer classes offer a path to advance your degree and save money on tuition.

Repaying Summer Student Loans

You can repay summer student loans the same as fall and spring student loans. At this point, you’ll get repayment information from your lender or loan servicer, including your first payment due date. If you opt for private summer student loans, you might have a choice of full deferment or a partial repayment option while you’re still in school.

Federal Loan Repayment Options

Federal student loans offer the possibility of flexible repayment plans that fit around the budget of a new graduate.

Loan Forgiveness

Select borrowers can also receive student loan forgiveness if they qualify.

Private Loan Repayment Options

Private student loans don't offer the same types of repayment programs as federal student loans, but many may offer resources for individuals experiencing temporary financial issues such as a job loss. Many private lenders also offer discounts for using another of their financial services, like a checking or savings account, or for enrolling in auto-pay.

Refinancing Student Loans

Private refinance loans are yet another option for all student loan borrowers who need help repaying their loans. Refinancing your student loans allows you to roll all of your federal and private loans into one private loan.

When to Start Planning for Summer Term

Planning for summer classes and aid should start early in the spring semester, such as February or March, experts say. Bryan encourages returning students, who often have later aid deadlines, "to submit their applications earlier than that for summer so that the school has an opportunity to process their aid before the summer term actually starts. So by the time the summer term is starting, the aid has already been processed and it will pay over into their account in a timely manner. It takes a little bit more forethought and planning to make sure everything runs on time during the summer." Students with questions can reach out to their college's financial aid office. They can work with a financial aid counselor to discuss options and "explore all creative avenues," Ferreira says. "The financial aid counselor can help guide them on how they'll be using their financial aid and maximizing it for use over the summer."

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