Can I get FAFSA again if I owe student loans?

Asked by: Odie Jenkins V  |  Last update: August 2, 2025
Score: 4.9/5 (22 votes)

To stay eligible for student aid, you'll need to keep making your loan payment each month. If you miss a payment after your eligibility is reinstated, you'll become ineligible for student aid again. If this happens, your only option to get more student aid will be to get out of default.

Can you get financial aid if you already owe student loans?

Yes, even if you have outstanding student loan debt, you are still eligible for a Pell grant. The most important thing is to keep up with any current loan repayments. Having past loans or debt does not prevent you from receiving a Pell grant for upcoming semesters as long as you pay your monthly obligations on time.

What disqualifies you from getting FAFSA?

For example, if your citizenship status changed because your visa expired or it was revoked, then you would be ineligible. Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school.

Can I go back to college if I still owe student loans?

If you're eligible for Fresh Start, you can now access federal student aid again. You can apply for federal grants and loans if you want to go back to school. This may help you complete an unfinished degree, possibly making it easier to repay your loans.

Can you get FAFSA if you have debt?

The FAFSA does not consider/recognize debt. If you have unusually high medical debt, you could file an appeal. That's a separate action.

3 FAFSA secrets to help you get the most financial aid

41 related questions found

Will student loans affect FAFSA?

Generally, increasing debt does not increase financial aid. It may even lead to a decrease in eligibility for need-based financial aid. Financial aid is based on financial need. Financial need is determined by subtracting the Student Aid Index (SAI) from the college's cost of attendance.

How to go back to college with defaulted student loans?

How to go back to school after defaulting on student loans
  1. Fill out the FAFSA. Your first step to pay for additional classes should be filling out the Free Application for Federal Student Aid (FAFSA). ...
  2. Apply for scholarships and grants. ...
  3. Take out federal student loans. ...
  4. Use private student loans to fill any gaps.

What is the income limit for FAFSA?

There's no official income cutoff to qualify for federal student aid. Yes, your family's annual income influences your aid package, but other factors, such as family size and year in school, also help determine your level of aid. Ultimately, submitting a FAFSA is relatively easy and 100% free.

Can I get my degree if I owe student loans?

A number of states ban schools from withholding transcripts, degrees, and diplomas if a debt is owed to the school. Some states have laws that tell schools to release transcripts and diplomas if the student is applying for a job or going back to school.

Who is eligible for the fresh start program?

You qualify for the Fresh Start program if you have eligible federal student loans and you were in default when the student loan payment pause went into effect.

What income is too high for FAFSA?

What income is too high for FAFSA? There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.

How can you lose FAFSA eligibility?

There are many reasons why you might lose financial aid, including unsatisfactory academic progress, not being enrolled in enough classes and an increase in parental income. In some cases, it may be possible to regain your financial aid, but it depends on the specific circumstances.

Why would FAFSA deny you?

For instance, you might no longer meet one of the basic eligibility criteria, or you might have changed majors and no longer be enrolled in a program that makes you eligible to receive a specific type of funding (for instance, a Teacher Education Assistance for College and Higher Education [TEACH] Grant).

How do I know if I defaulted on my student loans?

Log in to studentaid.gov. All federal student loan borrowers have a My Federal Student Aid account they can access with their FSA ID. Sign in to your account, select a loan and look at its repayment status to see if it's listed as in default. Your account also includes information about your servicer, if you need it.

How many years can you get FAFSA?

Please note that you can receive the Federal Pell Grant for no more than 12 terms full-time terms or the equivalent (roughly six years). You'll receive a notice if you're getting close to your limit. If you have any questions, contact your financial aid office.

Will I get my refund if I owe student loans?

Usually only the state and federal governments are able to take your tax refund, therefore you'll probably get your refund if your student loan debt isn't: With the state or federal government. Part of a federally insured student loan program.

Can you still get FAFSA if you owe student loans?

No. If a student has federal student loans that are in default, they are not eligible to receive additional federal student aid until the default is resolved. The borrower can resolve a default by paying the defaulted loan in full, consolidating the loan, or rehabilitating the loan.

Is student loan debt unforgivable?

In certain situations, you can have your federal student loans forgiven, canceled, or discharged. That means you won't have to pay back some or all of your loan(s). The terms “forgiveness,” “cancellation,” and “discharge” mean essentially the same thing.

How do you go back to college if you owe money?

If you're wondering how to go back to school with defaulted student loans, here's a closer look at your options.
  1. Enroll in the fresh start program.
  2. Rehabilitate your loans.
  3. Apply for loan consolidation.
  4. Negotiate a student loan settlement.

At what income level is FAFSA pointless?

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.

Can you pocket financial aid money?

Any money left over is paid to you directly for other education expenses. If you get your loan money, but then you realize that you don't need the money after all, you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged.

Does FAFSA check your income?

The FAFSA (Free Application for Federal Student Aid) asks for a lot of financial information from parents (i.e., parent, guardian, adult at home), including details about your income. This may have you wondering if there are ways to reduce your income to help increase your child's financial aid eligibility.

Can you get financial aid after defaulting on student loans?

Student loan default, which occurs after 270 days of missed payments on federal student loans, typically makes you ineligible for federal student aid. That means borrowers in default can't access the grants, work-study programs and student loans that help make college affordable," U.S. News & World Report writes.

How to qualify for the fresh start program?

Requirements To Qualify For The Fresh Start Program IRS in 2024 & 2025
  1. You must have filed all required tax returns for the previous three years.
  2. You must not owe more than $50,000 in taxes, including interest and penalties. ...
  3. You must agree to pay your taxes owed within six years.

What are the income limits for FAFSA?

Although there are some broad requirements you must meet to qualify for federal aid, there's no FAFSA income limit. The FAFSA's calculations are complex and consider many factors outside of your earnings, including your school's cost of attendance, your family size, and your year in school.