Many of the resources available to college students are tailored to “traditional students,” or those who attend college directly after graduating from high school. While traditional students tend to make up the majority of college students, they’re not the only demographic. In fact, for many, the college experience is a much different reality than the stereotypes associated with college students.
There is some overlap in the resources available to nontraditional and traditional students for funding their education; in some cases, the loans and financial aid available to nontraditional and traditional students differ. If you are a nontraditional student, here is some helpful information on the loans and scholarships for which you may be eligible.
What Is a Nontraditional Student and How Does It Affect Your Financial Aid Options?
The term “nontraditional student” refers to anyone who doesn’t enroll in college immediately after high school. This status can significantly change how you apply for and receive financial aid. The federal government often considers you an independent, meaning your parents’ income isn’t part of your financial aid calculation. This can open up different avenues for aid.
You might be a nontraditional student if you:
- Are financially independent from your parents
- Are married
- Have children or other dependents
- Are a veteran of the U.S. armed forces
- Work full-time while enrolled in school
- Delayed starting college for a year or more
This classification matters because it directly impacts your FAFSA (Free Application for Federal Student Aid). As an independent, your own income and assets determine your eligibility for federal aid, including the Pell Grant.
Federal Loans vs. Private Loans
You have two main sources for a student loan: the federal government or a private lender like a bank. Federal loans typically offer fixed interest rates and more flexible repayment plan options. These protections are designed to help borrowers. You may find options tied to your income, which can serve as a safety net if your financial situation changes after graduation.
A private student loan is a different product. Lenders will look closely at your credit score and financial history. As an adult learner with established credit, you might receive attractive offers. But these loans usually have variable interest rates and fewer borrower protections. Options like forbearance or deferment can be more challenging to obtain, and the terms are often less favorable than those of their federal counterparts.
How Your Income and Credit Score Impact Your Loan Applications
As an adult, you have a financial footprint. This history affects your ability to borrow for your education. A strong credit history can help you secure a private student loan with a lower interest rate. Lenders see you as less of a risk.
Your current income, however, can be a mixed bag. For federal aid, a higher income could reduce the amount of need-based aid you receive, potentially making you ineligible for a Pell Grant. For a private loan, a steady income shows the lender you can handle the tuition payments, which improves your approval odds. Your existing debts, like a mortgage or car payment, are also part of the calculation.
Finding Scholarships and Grants Specifically for Nontraditional Students
A loan is not your only path to paying for school. You should actively seek out money that you do not have to repay. Many organizations offer scholarships specifically for adult learners returning to education. These awards acknowledge the distinct challenges and motivations of nontraditional students.
Start your search at your school’s financial aid office. Look into professional organizations related to your new career field. Community groups and employers also offer scholarship money. This is a critical step in reducing the amount of debt you will need. A scholarship directly lowers your tuition payments and the total financial burden of your education.
Understanding Your Repayment Plan Before You Even Sign the Dotted Line for a Loan
You must consider repayment before borrowing a single dollar. Your future self will thank you. Federal loans give you a menu of choices for your repayment plan. You can choose a standard 10-year plan or an income-driven plan where your monthly payment is capped at a percentage of your income. This flexibility is a powerful tool.
A private student loan offers much less flexibility. The repayment plan is usually set in stone when you sign the paperwork. Read the terms carefully to understand what happens if you face financial hardship. The availability of a temporary pause, like forbearance, is not guaranteed, and interest often continues to grow quickly during that time.
Aggregate Loan Limits and Lifetime Eligibility: The Caps You Might Hit Sooner Than You Think
The federal government places a cap on the total amount of student loan money you can borrow in your lifetime. This is referred to as the aggregate loan limit. This is especially important for any nontraditional student who may have attended college previously, even if they did not finish a degree. Those old loans count toward your lifetime limit.
You can check your federal loan history on the National Student Loan Data System (NSLDS). You need to know where you stand. Hitting your aggregate limit means you cannot borrow any more federal funds. Your only remaining option to complete your education may be a private student loan, which lacks the protections and debt relief options that come with federal aid.
Contact Our Student Loan Lawyers Today!
Dealing with student loans (and even student loan debt) as a nontraditional student can be complicated. However, it’s important to educate yourself on all the variables and factors embedded in different loan agreements to ensure you will be able to handle the terms once you graduate. If you are struggling to make your monthly payments, you should seek professional guidance from a student loan attorney. An experienced student loan lawyer can explain all the factors of your loan and the best strategies for locking in a monthly payment that is best for you.
McCarthy Law is home to attorneys dedicated to helping students navigate the complexities of the student loan system. Under our student loan debt settlement program, our licensed attorneys negotiate with lenders to ensure our clients pay only a fraction of their original loan balance.
To schedule a consultation with one of our skilled student loan settlement attorneys, call us or fill out our online contact form.