Asbury Theological Seminary to phase out federal student loans

Asbury Theological Seminary has announced it will phase out participation in the federal Title IV student loan program starting in May 2027. The Kentucky-based institution is among the first prominent seminaries to make such a move.

President David Watson cited two primary reasons for the decision: the desire to reduce student indebtedness and the need to maintain institutional autonomy. Watson expressed concern that reliance on federal funding could allow a future administration that opposes the school’s Wesleyan, orthodox, and Evangelical beliefs to exert influence over the institution.

The seminary currently utilizes significant internal scholarships, covering an average of 65 percent of master’s tuition, 100 percent of Ph.D. costs, and approximately 50 percent of doctor of ministry programs. The administration aims to increase these scholarship rates to further mitigate student debt.