FAFSA & private loans: your college funding backup plan | Earnest

FAFSA uncertainty and private loans: creating a backup financing plan for your college education

By Willa Tellekson-Flash | Published on March 30, 2026

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Students and their families are uncertain about the future of the Free Application for Federal Student Aid program (aka FAFSA®) and financial aid availability due to proposals to dismantle the Department of Education. While there’s no way to know what may unfold, creating a contingency plan for funding your education can help you navigate the financial aspects of college and be prepared for any changes that may occur during President Trump’s second term. Here’s how to be prepared to pay for college amidst financial aid uncertainty:

Continue to apply for federal aid

Current uncertainties should not stop students from applying for federal aid. The FAFSA form for the 2026-27 academic year opens October 1, 2025. Students are encouraged to complete and submit their applications as soon as possible to take advantage of all available financial aid options—especially as some aid is offered on a first-come, first-served basis. Even if federal funding structures change, completing the FAFSA helps determine eligibility for remaining federal aid, including eligibility for institutional aid and work-study opportunities.

Explore additional grants and scholarships

Individual colleges and universities distribute significant amounts of grant and scholarship money each year. In fact, according to College Board, during the 2023-2024 academic year, $82.8 billion was distributed to students, which accounted for 52% of all grant aid. While available amounts differ from institution to institution, filling out the FAFSA can help ensure you're considered for this aid.

Beyond institutional grants and scholarships, private organizations offer merit- and talent-based scholarships. Consider looking for local scholarships first, as these may have less competition and community members who are willing to support your application. Then, expand your search using scholarship search engines to identify other scholarships that you may be most qualified for.

Ultimately, the more aid you secure via scholarships and grants, the less money you'll need to borrow, so it's worth your time to research all the options available.

Consider private loans as a supplement

Private student loans can be a crucial component of paying for college once all of your possible aid options have been secured. When considering private loans, it's crucial to start your research early and understand that these loans can bridge the gap if other financial aid falls short. To find the best loans available to you, take the time to compare lenders and pay close attention to key factors, including:

Earnest’s guide to improving your private loan application is a valuable resource to help you secure the most favorable loan terms possible for you.

Pay close attention to application timelines

The FAFSA typically opens on October 1st for the school year that begins the following fall, and it’s recommended to submit as early as possible. Scholarship and grant application windows vary throughout the year, so begin researching and applying early and pay close attention to deadlines. Saving deadlines to your calendar can help ensure you don’t miss any.

To ensure you have time to compare and apply, start researching private loan options in the spring or summer before the academic year begins. The application process takes time, so factor that in, along with gathering documentation, comparing lender offers, and waiting for lender approval. Some lenders, like Earnest, offer a free rate check to estimate potential interest rates, which can be a good starting point. If you plan to apply with a cosigner, be sure to factor in the time required for their application and approval too. And lastly, be mindful of your school's loan certification process and the lender's disbursement timeline.

Proactiveness works in your favor

Don’t let uncertainty about the future of FAFSA prevent you from pursuing your college dreams. By taking proactive steps now—filling out your FAFSA, maximizing scholarships and grants, and exploring private loans to fill any gaps in funding—you can confidently navigate the financial aid landscape and secure the resources you need. Remember, preparation and proactiveness are your greatest allies in securing your financial future and academic success.

Learn more about Earnest’s private loans

Earnest offers low interest rates, flexible repayment terms, a 9-month grace period, and a 0.25% auto-pay discount, with no origination fees. Check your rate today—it's quick and won't impact your credit score.

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About the Author

Willa Tellekson-Flash

Willa Tellekson-Flash is a freelance writer and product marketer specializing in finance and technology. With 10 years of experience, she focuses on making complex personal finance topics accessible and empowering for all audiences. When she’s not writing, you'll likely find her training for her next marathon.

Disclaimer

This blog post provides political predictions and potential forecasting and does not reflect the views or opinions of Earnest.

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.