Financial Aid for Part-Time Students: What to Know

When you think of college students, you might picture individuals who attend school full-time to earn a degree, but that's not always the case. Attending part-time is an increasingly popular option. In fact, according to the National Center for Education Statistics forecasts, part-time college enrollment is expected to outpace full-time enrollment through 2027.

Going to college part-time provides the flexibility to earn money for school and other financial needs. Part-time status is also more affordable since tuition is based on enrolled course credit hours.

But paying for college — even for a part-time schedule — is expensive. If you're unsure how to pay for your part-time college costs, here's a closer look at financial aid options for part-time students to pay for college.

What is part-time enrollment?

Part-time, or half-time, enrollment is defined by the U.S. Department of Education as those who are only enrolled in half of the expected full-time course load. Enrollment requirements vary between schools, but generally, half-time enrollment is six credit hours for undergraduate students and 4.5 to five credit hours for graduate or professional school enrollment.

Check with your school to determine the specific amount of credits required to qualify as a half-time student.

Qualifying for student loans as a part-time student

The Department of Education requires students to attend school at least half-time to qualify for federal financial aid. This guideline applies to both undergraduate and graduate students. Depending on your situation, you might be eligible for federal student loans or other financial aid options, including government grants and work-study programs.

Unfortunately, many private lenders carry similar enrollment requirements as the federal government to qualify for private student loans. Some lenders allow part-time enrollment, provided you meet credit score and other financial requirements.

Related: What Credit Score is Needed for a Student Loan?

Financial aid for part-time students

The federal government offers several financial aid options for qualified students. The amount of aid available is often based on financial need, but some options are open to any student that meets other aid requirements.  Each federal aid option carries its own guidelines and requirements.

Direct Subsidized Loans

Direct subsidized loans are for undergraduate students with a documented financial need and enrolled at least half-time at a qualifying school. One of the primary benefits of subsidized loans is that the federal government pays interest charges while you're in school, during periods of deferment, and during the grace period after you graduate or leave school.

Direct Unsubsidized Loans

Direct unsubsidized loans are available to undergraduate and graduate students and don't require you to demonstrate financial need. However, unlike subsidized loans, you are responsible for all interest charges on unsubsidized loans.

You don't have to pay interest on your loans while attending school, but if you don't, the accrued interest will capitalize, which means it's added to your principal loan amount. Ultimately, you’ll pay interest on your interest.

Direct PLUS Loans

Direct PLUS Loans are another option to pay for a college education. Grad PLUS Loans are for eligible graduate or professional students. Parent PLUS Loans are for parents who want to help fund their child's undergraduate education.

PLUS Loans are the only federal loans that require a credit check, although you can still qualify with adverse credit. To do so, you must apply through the use of an endorser, the government equivalent to a cosigner. With both PLUS Loan options, students must attend a qualifying school at least half-time to be eligible for a loan.

Pell Grants

Federal Pell Grants are for undergraduate students with a financial need enrolled at least half-time at an eligible school. The maximum Federal Pell Grant amount is $6,895 for the 2022–23 academic year.

Your enrollment status may affect how much money you qualify for through Pell Grants. Unlike student loans, Pell Grants don’t need to be repaid most of the time.

TEACH Grants

The Teacher Education Assistance for College and Higher Education (TEACH) Grant operates differently than other federal grants. Eligible recipients must agree to a teaching service obligation to receive a TEACH Grant.

To qualify, you must agree to serve four years as a teacher within eight years of graduation. You must also agree to work full-time as a highly-qualified teacher at an eligible elementary or secondary school, or educational service agency that serves low-income students.

If you fail to meet the service requirements, the grant converts into a loan you must repay, with interest.

Federal Supplemental Educational Opportunity Grants

The Federal Supplemental Educational Opportunity Grant (FSEOG) is for undergraduates that demonstrate a financial need. Not all schools offer this grant. Check with your school to see if it's an option to cover college expenses. FSEOG provides between $100 and $4,000 annually for qualified students.

Iraq and Afghanistan Service Grants

The Afghanistan Service Grant is for eligible students whose parent or guardian died as a result of military service in Iraq or Afghanistan. The maximum award is $6,895 for the 2022-2023 academic year. To qualify, you must be under 24 years old and enrolled in college at least part-time at the time of your parent or guardian's death.

Work-Study Programs

Another way to pay for college is to participate in a work-study program at your school. Work-study is a federal program that allows students to earn money toward school expenses through a part-time job. The program’s open to any students who display a financial need. Although it's not required, the program emphasizes employment in jobs related to your course of study or civic education when possible.

Getting federal financial aid as a part-time student

Finding money to pay for school as a part-time student starts with filling out the Free Application for Federal Student Aid (FAFSA). The Department of Education and your school's financial aid office use information provided in the FAFSA to determine eligibility for financial aid like scholarships, grants, work-study and student loans.

Follow the steps below to fill out and submit your FAFSA form.

1. Create an FSA ID

You must first create a Federal Student Aid (FSA) ID to apply for and receive federal student aid. Everything you do with financial aid through the government requires this unique ID. If you're a dependent student, your parent or guardian also needs an FSA ID when filling out the FAFSA.

2. Gather the necessary documentation

The FAFSA requires you to submit pertinent personal and financial information. Documents you will need include:

• Social Security number
• Parents’ Social Security number (dependent students)
• Driver’s license number (if applicable)
• Alien Registration number (non-U.S. citizen)
• Tax returns or tax documents
• Parents' tax returns or tax documents (dependent students)
• Records of untaxed income
• Financial information on bank account balances and investments

Take time to gather these documents to streamline the application process.

3. Fill out the FAFSA

Now that you've gathered everything you need, it's time to fill out your form. As mentioned, if you're a dependent student, you and a parent or guardian must fill out information for a complete FAFSA application.

You can also save your progress and come back later to fill out the rest of the application as needed. Pay attention to FAFSA deadlines to ensure you submit your form in time to qualify for financial aid for the upcoming academic year.

4. Add colleges to your form

Once you've filled in all of the required information, you have the option to send it to up to 10 schools if submitting online or four schools if submitting a paper application. You must choose at least one school to receive your information.

5. Verify your Student Aid Report

The Department of Education will notify you when your Student Aid Report (SAR) is ready to view. Your SAR outlines federal aid eligibility, including your Expected Family Contribution (EFC). Review your SAR to verify the information is correct.

6. Receive aid offers

Schools make determinations on financial aid packages based on your FAFSA form. If you're eligible for financial aid, the school will contact you with an aid award package.

You can either accept or decline the offer. If you accept it, the school's financial aid office will provide directions on how to proceed with receiving aid and paying for school.

Private student loans for part-time students

Private student loans can help fill the financial gap If you've exhausted federal aid options and need more help paying for school. Unlike most federal loans, private loans come with credit requirements. Lenders perform a credit check to determine eligibility and set interest rates.

Most college students haven't had enough time to build the kind of credit history needed to qualify for private loans on their own. Some lenders allow borrowers to apply using a creditworthy cosigner, who agrees to take on financial obligations if they cannot repay the loan.

Not all private lenders offer student loans for part-time students. Lenders that do allow part-time students to apply for loans include College Ave, Ascent and Sallie Mae. Shop around to find lenders that offer more flexible loans to fit your needs.

Learn more about how to pay for college

If you're a part-time student and unsure of the best way to pay for college, we can help. Book a pre-debt consultation with one of our student loan experts today. We can help you determine the best path toward a college education based on your situation.