Asbury Theological Seminary to Withdraw from Federal Student Loan Program

Asbury Theological Seminary, a Kentucky-based institution rooted in the Wesleyan-Holiness tradition, has announced plans to cease participation in the federal Title IV student loan program effective May 2027. President David Watson stated that the decision aims to reduce student debt and protect the seminary’s financial and ideological independence from potential government influence.

Watson emphasized that the school intends to rely more heavily on internal scholarships, which currently cover a significant portion of tuition costs for master’s and doctoral students. By moving away from federal funding, the seminary seeks to ensure that its commitment to orthodox, evangelical, and Wesleyan values remains uncompromised by shifting federal policies. While the seminary will assist students in identifying private lending options if necessary, leadership expressed a strong preference for minimizing student borrowing altogether. Watson suggested that other Christian institutions may follow this path to safeguard their institutional autonomy.