Beginning in May 2027, the evangelical seminary will stop participating in the federal Title IV loan system and direct students toward other financial resources.
Asbury Theological Seminary plans to stop processing federal student loans effective May 1, 2027, ending its participation in the federal Title IV student-aid program.
The evangelical seminary says it wants students to complete their theological education with as little debt as possible. Asbury will instead direct students toward institutional scholarships, grants, payment plans and other funding options.
The Kentucky-based school reports that approximately 80% of its students receive financial assistance. It offers more than 400 scholarships, and students do not need to complete the Free Application for Federal Student Aid to qualify for the seminary’s institutional awards.
Seminary leaders have also expressed concern that continued reliance on federal funding could expose religious institutions to future government conditions conflicting with their beliefs. The school’s announcement does not affect the terms of federal loans students already received, although individual borrowers will remain responsible for repayment.
Asbury serves more than 1,600 students through its Kentucky and Florida campuses and online programs. The change will require prospective students beginning after the effective date to rely on nonfederal financing if scholarships and personal resources do not cover their costs.
The seminary has more than seven months to provide detailed transition guidance before the policy takes effect.
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