diff --git a/jupyter_server/extension/application.py b/jupyter_server/extension/application.py
index 108b270670..ea18d687d4 100644
--- a/jupyter_server/extension/application.py
+++ b/jupyter_server/extension/application.py
@@ -12,7 +12,6 @@
 from traitlets import default
 from traitlets import Dict
 from traitlets import HasTraits
-from traitlets import Instance
 from traitlets import List
 from traitlets import Unicode
 from traitlets.config import Config
@@ -104,7 +103,7 @@ def _prepare_templates(self):
             loader=FileSystemLoader(self.template_paths),
             extensions=["jinja2.ext.i18n"],
             autoescape=True,
-            **self.jinja2_options,
+            **self.jinja2_options
         )
 
         # Add the jinja2 environment for this extension to the tornado settings.
@@ -163,12 +162,6 @@ class method. This method can be set as a entry_point in
     def _default_open_browser(self):
         return self.serverapp.config["ServerApp"].get("open_browser", True)
 
-    @property
-    def config_file_paths(self):
-        """Look on the same path as our parent for config files"""
-        # rely on parent serverapp, which should control all config loading
-        return self.serverapp.config_file_paths
-
     # The extension name used to name the jupyter config
     # file, jupyter_{name}_config.
     # This should also match the jupyter subcommand used to launch
@@ -207,21 +200,7 @@ def _default_url(self):
     ]
 
     # A ServerApp is not defined yet, but will be initialized below.
-    serverapp = Instance(ServerApp)
-
-    @default("serverapp")
-    def _default_serverapp(self):
-        # load the current global instance, if any
-        if ServerApp.initialized():
-            try:
-                return ServerApp.instance()
-            except Exception:
-                # error retrieving instance, e.g. MultipleInstanceError
-                pass
-
-        # serverapp accessed before it was defined,
-        # declare an empty one
-        return ServerApp()
+    serverapp = None
 
     _log_formatter_cls = LogFormatter
 
diff --git a/jupyter_server/serverapp.py b/jupyter_server/serverapp.py
index 422f4ffb13..1ee4cf64b4 100644
--- a/jupyter_server/serverapp.py
+++ b/jupyter_server/serverapp.py
@@ -104,6 +104,7 @@
     base_flags,
     base_aliases,
 )
+from jupyter_core.paths import jupyter_config_path
 from jupyter_client import KernelManager
 from jupyter_client.kernelspec import KernelSpecManager
 from jupyter_client.session import Session
@@ -2153,7 +2154,11 @@ def find_server_extensions(self):
         # This enables merging on keys, which we want for extension enabling.
         # Regular config loading only merges at the class level,
         # so each level clobbers the previous.
-        manager = ExtensionConfigManager(read_config_path=self.config_file_paths)
+        config_paths = jupyter_config_path()
+        if self.config_dir not in config_paths:
+            # add self.config_dir to the front, if set manually
+            config_paths.insert(0, self.config_dir)
+        manager = ExtensionConfigManager(read_config_path=config_paths)
         extensions = manager.get_jpserver_extensions()
 
         for modulename, enabled in sorted(extensions.items()):
diff --git a/tests/extension/test_app.py b/tests/extension/test_app.py
index c550e4c75e..dc045631a2 100644
--- a/tests/extension/test_app.py
+++ b/tests/extension/test_app.py
@@ -69,14 +69,6 @@ def test_extensionapp_load_config_file(
     assert mock_extension.mock_trait == "config from file"
 
 
-def test_extensionapp_no_parent():
-    # make sure we can load config files, even when serverapp is not passed
-    # relevant for e.g. shortcuts to config-loading
-    app = MockExtensionApp()
-    assert isinstance(app.config_file_paths, list)
-    assert app.serverapp is not None
-
-
 OPEN_BROWSER_COMBINATIONS = (
     (True, {}),
     (True, {"ServerApp": {"open_browser": True}}),