How To Get A Student Loan

A student loan is money that is borrowed from a private lender or government to finance your college education. You can use the money to pay your college tuition and any other college expenses you have. Understanding how student loans work is crucial in helping you get the most out of this form of funding. Getting a student loan is different from getting a scholarship or grant for your studies. With a student loan, you will need to pay back the borrowed loan amount, plus the interest on the loan at a later stage. Whereas with scholarships and grants, you usually do not need to pay back the amount.

There are two main types of student loans you can apply for to cover your college costs: these are federal student loans and private student loans. A federal student loan is administered by the U.S Department of Education, whereas a private student loan is from a bank, credit provider and the like.

To get a federal student loan, there are a few steps you need to follow, but it all begins with a Free Application for Federal Student Aid (FAFSA) submission. FAFSA is used to help students qualify for need-based financial aid using specific eligibility criteria. Note that there are no FAFSA income limits required to apply for a federal loan.

For a private student loan, you need to apply to different banks and credit providers and submit the necessary documentation. For those not attending a brick-and-mortar institution, however, there are also student loans for online colleges available.

To apply for a federal student loan you must complete a Free Application for Federal Student Aid (FAFSA). The application is available from October 1 for the upcoming academic year. You can apply at any time throughout the year, but be sure to check your state and school deadlines first.

You can fill out the form online by creating a Federal Student Aid (FSA) ID and password. Filing out the FAFSA application will qualify you for student loans and other federal financial aid.

• Your Social Security Number or Alien Registration Number (for non-citizens).
• Your parents’ social security number. Your driver’s license number if you have one.
• Your (or your spouse’s or parent’s) federal tax information, tax documents, and tax return information from the previous tax year.
• Records of untaxed income.
• Bank statements and information on your (or your parent’s) cash, savings, and checking account balance. Information on investments and assets.
• List of colleges and/or career schools you are interested in and applying to.

• After you submit your FAFSA, your information will be sent to the colleges and/or career schools you listed on the form.
• Once you have submitted your FAFSA, you will get a Student Aid Report (SAR). The SAR will contain information on your Expected Family Contribution (EFC) which your school uses to calculate your eligibility for certain types of federal student aid.
• As a first-time applicant, you will receive an aid offer from the colleges or career schools you listed on your FAFSA. The aid offer will give the type and amount of aid you could receive at that school. You could receive aid in the form of a student loan, grant, and sometimes a scholarship. You should review and compare your offers, and decide which school to attend based on how much your aid could meet your college costs at that school.
• If you are an aid renewal applicant, you will receive an aid offer from your school stating how much aid you could receive at that school.
• You will have to formally accept the school’s aid offer, and your school will handle your aid. You should ask your financial aid office for the details on how your aid will be paid out, what it will cover and how much money you may receive directly.

Applying for a private student loan is another viable option for funding your college costs. If you have exhausted your free money options such as financial aid, grants, scholarships, tuition waivers, and gifts from family, then you should consider applying for a private student loan. You may also need to apply for a private loan to fill the gaps that your financial aid does not meet.

With a private student loan, you approach a bank, financial institution, credit union, or online lender. There is typically no deadline or opening period that you need to worry about, just apply in time for you to start school with your funding sorted. You can apply online, or go physically to a bank or lender.

• Your social security number or alien registration number(for non-citizens).
• Your residential address(permanent or temporary).
• Your school information, proof of enrollment, or acceptance.
• Your employment information
• Your financial information, including income and expenses
• Information about the loan amount request, as well as information about the financial aid you have been approved of. If you have a co-signer, whether it is a parent, family member, or friend. You may need to submit all their information too.

• If you do not have good credit, getting a private student loan may be tricky. There are very few lenders that will approve a loan application without a creditworthy co-signer. Without good credit of your own, you will need a credit co-signer for your loan application.
• Each lender will have a different application and different application requirements, but also different conditions for the loan.
• Once you have applied for your private student loan, compare your offers from your lenders to find the lowest interest rate. A fixed interest rate will remain the same for the lifetime of the loan, and a variable interest rate will change depending on changes in the economy.
• The repayment options on a private student loan are different from those of a federal loan. You will forfeit benefits such as an income-driven repayment plan, and the opportunity to defer or forbear your loan if you cannot pay it. You also forfeit any student loan forgiveness. Pay attention to the information on repayments for your student loan.
• Take time out to find out about your hardship options. Some lenders offer forbearance options if you lose your job or have a medical emergency. Check the policy on your loan.
• Consider getting a co-signer release condition for your loan, so that your co-signer may be removed from your loan after you have made a certain number of payments.
• Find out about any discounts or perks you may be offered by your lenders, such as career counseling or loyalty discounts.
  After finding the best loan option for you, you will need to formally accept the best offer, and arrange for the loan to be paid out.

You can get a private student loan from a bank, credit union or any other private lender. There are many private lenders who offer good options to college students. Some examples are, College Ave Student Loans, Sallie Mae and Discover student loans, among others. Alternatively, you can approach your bank or credit union to see their loan options.

You can get a student loan in a matter of weeks. Typically, 1-3 weeks for a federal student loan, to be approved and receive your financial aid package(offer).

It takes about 2 to 10 weeks for a private student loan, to be approved and for the funds to be made available.

So start your application for FAFSA or your private student loan application early. You may also need to re-apply annually for your student loan, so be aware of the dates relevant to your student loan.

When you meet the requirements for your student loan application, it becomes relatively easy to get a student loan. With private lenders, if you have a good credit score or a reliable co-signer, then it is easy to be approved for a loan. With a federal student loan, if you fill the form correctly and qualify, you will get the offer that you are eligible for.

There are a few options you could look into if you are unable to qualify for a student loan or need extra money to fill the gap between the loan amount received and the actual cost of your education.

1. Scholarships
   There is a plethora of scholarships that can help contribute toward your educational costs. Some scholarships are even limited to certain subjects like engineering, etc. Different scholarships have different eligibility criteria and requirements that may include academic achievement/minimum GPA, extra-curricular activities, writing an essay, getting recommendations, etc.
2. Grants
   Grants are like scholarships too as their a type of financial aid that does need to be paid back. However, unlike scholarships, grants are usually need-based and are distributed mostly by states.
3. Part-time work
   You can take up an online job or other part-time jobs to help contribute to the cost of your education. There are many options available now for part-time opportunities that anyone can do alongside their education.
4. Work-study
   This is a federal program that provides part-time jobs to college students. These opportunities are also need-based and can be accessed by filling out FAFSA. Work-study does have other eligibility requirements too which might make them hard to get. Nevertheless, it is a good option for those who are able to get it.