As federal education funding undergoes sweeping change, Asbury Theological Seminary is proactively building a sustainable financial model that will strengthen students called to ministry. Asbury Theological Seminary will transition away from processing federal student loans, commonly known as Title IV funding, effective May 2027, becoming one of the first prominent seminaries in the country to take this step. The decision reflects a proactive financial model the seminary has been building toward for years, one designed to reduce student debt and expand access to ministry preparation.
As a multi-denominational, evangelical institution rooted in the Wesleyan tradition, the seminary serves students from more than 75 denominations. This financial transition ensures that students, who often enter vocational ministry with modest compensation, can graduate with less debt and greater freedom to serve wherever they are called.
“Asbury Theological Seminary, an independent, multi-denominational seminary, has remained steadfast in teaching the unchanging truth of orthodox Christianity,” said David F. Watson, president of Asbury Theological Seminary. “Our core commitments are the same today as they have been for more than a century. We continue in our mission to train those who are called to ministry and support them in doing so by increasing financial sustainability.”
Rather than students depending on federal loans to fund their tuition, the seminary is shifting toward scholarship support and other financial options better suited to how students experience seminary today and how they will serve after graduation. The aim is to remove the financial barriers that can keep people from answering the call to ministry, and to support students well beyond commencement, all while remaining a fully accredited institution.
Reliance on federal student loans at Asbury Theological Seminary has declined steadily in recent years, dropping from approximately 30% of students using federal funding to about 17% today, thanks to the generosity of donors and the institution’s proactive approach toward student indebtedness. Many students also arrive carrying undergraduate debt, and Asbury Theological Seminary is committed to ensuring that the seminary itself does not add to that burden through further federal borrowing.
The move extends a century-long pattern of faith-led leadership that began when H.C. Morrison founded Asbury Theological Seminary in 1923 with three students and a vision larger than his resources. As institutions across theological education search for sustainable models amid industry-wide financial strain, this transition positions Asbury Theological Seminary as a leader in developing a blueprint that expands access and affordability while strengthening long-term ministry formation. The seminary’s strong endowment health, supported by decades of generous donor investment and strategic stewardship, support this transition.
This is amazing to hear! We can trust Jesus with everything, and it’s wonderful to see you all stepping out on that and away from the worldy government/debt system.
This is good news. Phasing out reliance on federal loans for students who are going into or already involved in full time ministry means students will not be overwhelmed in debt. They can focus on ministry rather than finding a part time job.