What To Do If You Can’t Get A Student Loan For College

For most undergraduates, paying for college starts with a Federal Direct Loan in the student's name, with no credit check and no cosigner. The problem is the size. A dependent freshman can borrow $5,500, and even a senior tops out at $7,500, while the average sticker price at a private four-year college runs well past $40,000 a year.When the federal loan runs out, families turn to a Parent PLUS loan or a private loan, and that is where the "can't get a student loan" problem starts. Parents get denied for adverse credit history, or get approved but hit the new $20,000 annual cap. Students without a creditworthy cosigner get turned down by private lenders, and more than 93% of private undergraduate loans require a cosigner.Each dead end below has a fix, from the federal options most families miss to the handful of private lenders that approve students other lenders won't, along with what those loans cost.

Yes. Unemployment benefits count as income on the FAFSA because the IRS treats them as taxable income, and the FAFSA starts with your adjusted gross income (AGI). Benefits received in 2025 are part of the 2025 AGI that the 2027-28 FAFSA imports directly from the IRS, so they raise the Student Aid Index the same way wages do.The bigger issue for most families is timing. The 2027-28 FAFSA is open now and looks back to 2025 income, so a layoff in 2026 or 2027 doesn't show up on the form at all. Families in that spot can ask each college to adjust their aid through a process called professional judgment. Here's how unemployment benefits are treated on the form, and how to get the aid office to account for a job loss.

More than 870 colleges now advertise free tuition for some students, but a new Brookings Institution analysis finds most of these programs repackage existing financial aid rather than add new money. In a new research brief, economist Phillip Levine concludes that the biggest benefit of free tuition may be marketing: it tells families in plain terms that they won’t pay the sticker price that only 1 in 8 students actually pays.Levine matched a Washington Post database of free tuition policies against federal IPEDS data and net price calculator results from 200 randomly selected four-year colleges. Of the 2,994 colleges in his analysis, 871 (29%) offer free tuition to some group of students, and those schools enroll about 42% of all students, according to Brookings. The programs range from campus-level offers like Rice University’s expanded $200,000 threshold to statewide programs such as New York’s Excelsior Scholarship.

The University of Arizona announced that it will freeze tuition and mandatory fees for every undergraduate and graduate student for fall 2027. Resident undergraduates will have gone four years without a tuition increase, and the freeze extends to nonresident undergraduates and all graduate programs for the first time.For families watching college costs rise three times faster than inflation, a public flagship keeping its price steady gives them one less thing to plan around.The plan still needs a final vote. The Arizona Board of Regents will review the full tuition, fees, housing and meal plan proposal at its November meeting, so the rates below are proposed rather than final. Families can see how the state’s three public universities fit with other Arizona financial aid and college cost options while the vote is pending.

The University of California’s Blue and Gold Opportunity Plan covers systemwide tuition and fees for California residents with family incomes under $100,000 who qualify for financial aid.For students entering UC in 2026-27, that’s worth $15,588 a year, made up of $14,202 in tuition and a $1,386 student services fee, according to UC’s 2026-27 fee schedule.The plan applies at every undergraduate UC campus, including Berkeley and UCLA, and puts UC on the list of colleges offering free tuition below set income limits.

Penn State released final recommendations from its Academic Portfolio and Program Review on October 12, 2026. The university recommends closing 47 of its 403 bachelor’s and associate degree programs, joining a wave of universities cutting jobs and degrees in 2026.The 47 programs enroll 784 students, about 1.1% of Penn State’s 68,390 undergraduates. That’s down from the preliminary list released in April, which flagged 49 programs and 906 students. Students deciding whether to stay or transfer to another college now have a final list to work from.

The Office of the Comptroller of the Currency fined Bank of America $750 million on October 13, 2026, for failures in its anti-money laundering program. It’s the largest civil money penalty in OCC history, and it hits the bank behind millions of everyday Bank of America savings and checking accounts.The OCC penalty is one part of a larger Treasury action. FinCEN, the Treasury unit that recently ordered banks to report student aid fraud, assessed a $1.2 billion penalty that credits the OCC’s $750 million. The Office of Foreign Assets Control added an $11.6 million settlement over 475 apparent sanctions violations, according to the Associated Press.According to a statement from Treasury Secretary Scott Bessent, “Financial institutions are on the front lines of protecting our economic and national security. When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire U.S. financial system to significant illicit finance risks.“

Consumer prices rose 0.6% in September on a seasonally adjusted basis, according to the Bureau of Labor Statistics September CPI report released October 14, 2026. Over the past 12 months, the Consumer Price Index climbed 3.7%, up from 3.4% in August. The report is also the last input for Social Security’s 2027 COLA and the next I bond interest rate.Gasoline was the biggest driver of the increase. The gas index rose 9.1% in September and accounted for more than half of the monthly increase. Energy prices overall are now up 20.4% from a year ago. Core inflation, which strips out food and energy, rose 0.3% for the month and 2.6% for the year.

The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027 on October 14. The increase follows September consumer price index data, which the Bureau of Labor Statistics released the same morning.Nearly 72 million Social Security beneficiaries get the raise starting in January 2027. About 7.3 million SSI recipients see higher payments on December 31, 2026.The 2027 raise is the largest since 2023, and it runs 0.8 percentage points above the 2.8% COLA for 2026. The Committee for a Responsible Federal Budget (CRFB) notes it also beats the Social Security Trustees’ recent projection by 0.9 points, a sign of how fast inflation ran this year.

A growing group of states has turned the FAFSA into a high school graduation requirement. The idea, known as “universal FAFSA,” is simple: every senior either files the federal aid application or formally opts out before getting a diploma.The label hides several variations of the policy. Some states withhold a diploma from a student who does neither, while others only require schools to track who filed.Here’s where every state stands heading into the 2027-28 FAFSA cycle, which states walked their policies back, and what the data says about whether any of it works.