Navigating Student Loans at Arizona State University: A Comprehensive Guide

For students aspiring to attend Arizona State University (ASU), understanding the landscape of student loans is crucial. This article provides a comprehensive overview of the various financial aid options available, with a focus on student loans, to help you navigate the process of funding your education.

Understanding Your Funding Options

Before resorting to student loans, it's wise to explore all available avenues for "free money" to minimize your debt. At Funding U, we provide our prospective borrowers with a checklist of payment options to work through in order to minimize your funding gap. By using third-party sources of free money, you will be able to reduce your upfront expenses and lower the amount of money you need to borrow.

Scholarships: Unclaimed Opportunities

Finding a scholarship seems out of reach for many students, but thousands of scholarships go unclaimed every year because not enough students applied for them. Here are a few Arizona-specific scholarships to consider:

PMI Phoenix Chapter Academic Scholarship: Created to promote and further academic and professional development education in project management.
Arizona Business and Professional Women’s Foundation: Promotes the advancement of Arizona’s working women through scholarships, research, and education. Scholarships are awarded to women 21 years or older who are returning to school at a community college to acquire better job opportunities or advance their current careers.
Arizona Elk Society: Provides scholarships up to $1,000 per year to High School Seniors and College students.
ASU's Scholarship Universe: After you submit the FAFSA, you can explore scholarships using ASU's Scholarship Universe. Scholarships are gift aid - money for college that you don’t have to repay. And there are tons of scholarships out there for all kinds of students based on region, interests, majors, goals and lots more. Apply for any and all that you qualify for no matter how small they may seem. They add up quickly.

Grants: State and Federal Aid

Arizona isn’t known for offering a broad range of grants and scholarships, but there is one specific grant that you can utilize if you’re attending college in the state: the AzLEAP. AzLEAP offers assistance to students in Arizona that have financial hardship. The program operates via a partnership with the state of Arizona and eligible universities. While the state provides funding, the grant is awarded directly from the university.

Several federal options allow you to take advantage of free money for attending a college or university. Pell Grants are one of the nation’s most popular funding options for financially stressed individuals. First, you will need to prove your Expected Family Contribution (EFC) - the amount of money that your family can afford to provide for assistance with your education costs. In addition to the EFC, applicants are assessed by their status as a student: full-time or part-time. The government will also determine the portion of the year that you were at the school. If you would like to apply for a Pell Grant, you will need to begin by filling out a Free Application for Federal Student Aid (FAFSA). Additionally, depending on the college that you plan on attending, there might be college-specific grants available.

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The FAFSA: Your Gateway to Federal Aid

In order to receive most forms of financial aid, you must submit the Free Application for Federal Student Aid (FAFSA). citizens and eligible non-citizens to apply for federal aid, including need-based aid such as grants and loans.

Why File the FAFSA?

Access to Federal Aid: It's the only way to receive federal aid. If you don’t file your FAFSA, you won’t be eligible for federal grants and loans, which may cover a large portion, if not all, of your tuition expenses.
Potential for Additional Free Aid: Your FAFSA also determines your eligibility for state grants and need-based scholarships, which can further reduce your educational costs.
It's Free: There is no fee to fill out the FAFSA, and doing so qualifies you to receive free money or affordable loans. There's no cost, only potential benefits.
Quick and Easy Process: The FAFSA is shorter and simpler than ever, so dedicating just a small amount of time can lead to large financial benefits.

FAFSA Calendar

The FAFSA will open the October before your academic year begins and close on the last day of the academic year. Be sure to submit the correct FAFSA for the correct academic year. Each academic year requires its own FAFSA.

How to Apply for Financial Aid at ASU

Create a Studentaid.gov account (FSA ID): Whether you’re a student or parent, you’ll need to create your own account on studentaid.gov to complete federal student aid tasks. You’ll use the same FSA ID every year.
Fill out the Free Application for Federal Student Aid: You’ll need your driver’s license, bank statements, parent information and more. The FAFSA is officially open for the 2025-2026 academic year. ASU’s Federal School Code is 001081. Complete the FAFSA here.
CSS Profile: CSS Profile is an online application used by colleges to award nonfederal institutional aid. The tool helps us determine eligibility and understand your specific financial situation. CSS Profile is available to qualifying domestic noncitizens who are unable to complete the FAFSA.
Accept Loan Offers: About five days before classes start, financial aid disbursement begins. Your scholarship and grant money will automatically be applied. You will need to accept loan offers before those funds are available. If you have any financial aid funds left over after paying your tuition and other charges, you’ll receive a refund. The quickest way to get your refund is to enroll in direct deposit.
Enroll In direct deposit: If you have any financial aid funds left over after paying your tuition and other charges, you’ll receive a refund. The quickest (and safest) way to get your refund is to enroll in direct deposit.
Maintain eligibility: You’ll need to maintain a certain GPA and complete relevant coursework in a certain timeframe. If you are a scholarship recipient, you’ll need to meet renewal criteria.
File a FAFSA every year: You’ll need to submit a new FAFSA every year you’re in college to continue receiving federal financial aid.

Eligibility Requirements for Financial Aid at ASU

Most ASU students qualify for some form of financial aid. Department of Education.

File a FAFSA for the current academic year.
Be admitted as a degree-seeking student to a qualified undergraduate, post-baccalaureate, graduate or eligible certificate program. (For information about your particular certificate program, contact Financial Aid and Scholarship Services). Some types of aid are restricted to certain degree levels and/or programs.
Not be in default on any prior student loan.
Not owe a repayment on any Title IV financial aid.
Be making Satisfactory Academic Progress.
Submit all requested documents and those documents must not be found to limit your eligibility.
Enroll in ASU classes such that it allows for disbursement of your offered financial aid (see ASU’s census policy).

The amount of financial aid you’re eligible to receive depends on lots of variables.

Understanding Student Loans

Student loans can be broadly categorized into federal and private loans.

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Federal Student Loans

Federal student loans are typically the first option to consider due to their generally lower interest rates and more flexible repayment options compared to private loans.

First, you should submit the FAFSA to learn how much you’re eligible for in federal loans. Then decide how much of that you want to borrow. (Don’t borrow any more than you need.) The interest rates are fixed as of the date you borrow and federal loan interest rates are typically significantly lower than private student loan interest rates. Once you decide whether you’re going to accept or decline your loans, sign into My ASU and click “accept” or “decline” if it’s a Federal Direct Subsidized or Unsubsidized loan.
If you’re a dependent student, you need your parents’ information to submit the FAFSA and receive federal student loans. Private student loan requirements vary so check with the lender.

Subsidized vs. Unsubsidized Loans

What's the difference? Unsubsidized student loans accrue interest each month, even while you are in college.

Private Student Loans

For private student loans, there is an array of options. Eligibility and restrictions include minimum GPA requirements and graduation rate of the chosen college or university. These can be used in addition to federal student loans to receive further financial support. Generally speaking, Funding U’s no co-signer loans are offered to students at eligible four-year, non-profit, undergraduate degree-granting universities (which means we do not lend to for-profit schools, 2-year schools, graduate schools, or trade schools). Our eligibility requirements are based on models that aim to predict how likely a student is to graduate, and because of that we have minimum GPA requirements that students must meet and minimum 6-year graduation rates that schools must reach in order to be eligible.

Loan Limits

First, you should submit the FAFSA to learn how much you’re eligible for in federal loans. Then decide how much of that you want to borrow. (Don’t borrow any more than you need.) The interest rates are fixed as of the date you borrow and federal loan interest rates are typically significantly lower than private student loan interest rates. Once you decide whether you’re going to accept or decline your loans, sign into My ASU and click “accept” or “decline” if it’s a Federal Direct Subsidized or Unsubsidized loan.
If you’re a dependent student, you need your parents’ information to submit the FAFSA and receive federal student loans. Private student loan requirements vary so check with the lender.

	PLUS Loan	Unsubsidized Loan	PLUS Loan	Unsubsidized Loan
	Annual borrowing limits		Aggregate borrowing limits
	Student by borrowing year	Student population
Current borrowers*	UndergraduateUp to total cost of attendance minus any financial aid	Based on academic levelNo limit		$57,500 - combined between subsidized and unsubsidized loans
	Graduate and professionalUp to total cost of attendance minus any financial aid	$20,500No limit		$138,500; the graduate aggregate limit includes all federal loans received for undergraduate study
New borrowers starting July 1, 2026
	Undergraduate	$20,000Based on academic level no changes	$65,000	$57,500 - combined between subsidized and unsubsidized loans
	Graduate	Eliminated$20,500	Eliminated	$100,000
	Professional**	Eliminated$50,000	Eliminated	$200,000

*Legacy provision: If a borrower has a GradPLUS loan made before July 1, 2026, while enrolled in a credential program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less.**The definition of professional programs is being determined through negotiated rulemaking. Final information to be shared in spring 2026.*Also applies to dependent undergraduate students whose parent was denied a PLUS loan and post-baccalaureate students.† As of the 2012-2013 academic year, subsidized loans are no longer awarded to Graduate students.

For more information on student loan limits, visit the federal student loan limits page.

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Student Loans at ASU - Tempe: An Overview

Average Loan Amounts

At Arizona State University - Tempe, 33.0% of incoming students take out a loan to help defray freshman year costs, averaging $6,728 a piece. This amount includes both private and federally-funded student loans. The average federal loan is $4,896, which is 89.0% of the first-year borrowing cap of $5,500* for the typical first-year dependent student.*Independent students and those with parents who do not qualify for PLUS loans have higher borrowing caps.

The Average Loan Amount for All Undergrads at Arizona State University - Tempe is $6,207 Per Year.34.0% of all undergraduate students (including freshmen) at Arizona State University - Tempe utilize federal student loans to help pay for their college education, averaging $6,207 per year. This amount is 26.8% higher than the $4,896 amount borrowed by freshmen. The fact that returning students borrow more than freshmen could indicate that the school front-loads financial aid packages, offering more aid to new students while expecting returning students to take on larger loans to continue their education. Borrowing the average amount will result in loans of $12,414 after two years and $24,828 after four.These numbers are based on borrowing the same amount each year and do not include any loans where the parent is the borrower, even though Parent PLUS loans are frequently included in financial aid packages.

Loan Default Rate

A total of 19,181 Arizona State University - Tempe students entered loan repayment in 2017. After three years, 6.2% of these students (1,206 out of 19,181) defaulted on their loans. The lower the default rate, the better!

A student is considered to be in default on a student loan if they have not made a payment in more than 270 days. The official student loan default rate for a school is calculated by measuring how many students are in default three years after graduation. Note that the default rate only takes into account federal loans, not private.

When compared to the average three-year default rate of 9.3%, the default rate at Arizona State University - Tempe is normal, but as the average is increasing at alarming rates, you should make sure you fully understand and are comfortable with your financial aid offer.

Repaying Your Loans

ASU is your lender, and you’ll repay ASU once your Perkins Loan moves to repayment status (typically nine months after graduation, withdrawal from school or dropping below half-time enrollment). Monthly payments depend on your loan amount and length of your repayment period. Payments can be made online. For complete details on repaying your Federal Perkins Loan, visit tuition.asu.edu/perkins-loan-repayment.

Important Considerations

Understand Loan Terms: Is Arizona State University - Tempe offering you two separate student loans, one for a subsidized amount and one for an unsubsidized amount? Do you understand the difference? Multiply the total of the loans over four or five years of college and calculate your estimated monthly payment when you graduate. Does it shock you or does it seem affordable? Understanding what you will owe after graduation can help prevent you from starting your career with a large amount of debt that you cannot reasonably afford.
Bankruptcy: Declaring bankruptcy does not remove student loan debt owed to the Federal government. They can garnish part of your income if you do not pay back your loans.
Repayment Options: It's an investment in your future, and your earning potential will increase with a degree. That said, you only want to borrow what you need. Learn more about loan repayment.
Aid Adjustment: If you have accepted a loan and would like to increase or decrease the loan amount you accepted, you can visit the student aid adjustment page to submit an aid adjustment form. If you would like to increase the loan amount you accepted, you can visit the student aid adjustment page to submit an aid adjustment form. Select the aid type you would like to request more of, then select Increase. Then you can indicate how much you have already accepted, and how much you would like to increase your loan to. If you're not sure how much you've already accepted, you can find that in your Financial Aid and Scholarships box in My ASU. To see how much you're eligible for, view the chart on the student aid adjustment form, or visit the studentaid.gov loans page.

Financial Aid for Canadian Students

Canadian citizens or permanent residents of Canada living in any province for over a year are eligible to receive a Canadian Student Loan by the Canadian government through the Canada Student Loan Program. Eligible borrowers may also receive loans through individual provinces either through their own programs or programs integrated with the CSLP. Loan funds are sent directly to the student from the providence it was obtained through. ASU does not receive funds.Arizona State University processes the Canadian Student Loan applications one term at a time. Students should submit a new loan application each term when charges for that term are posted to their student account.

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