Apply for Student Loan
Not many people can afford to go to college without getting any kind of help through federal student loans and/or private loans. How to apply for student loan can be a very confusing process sometimes but it is almost always a requirement.
Federal Loan Application: The FAFSA
The FAFSA (Free Application for Federal Student Aid) is the federal loan application. There is no way around this and it can be very long and confusing. There isn’t a short form either that you can fill out and still get federal funding. The good thing about the FAFSA is that they might help you qualify for work-study programs, federal grants, AND federal loans.
If you mess around and not turn in this application, you could possibly be cheating yourself on some of the easiest means of getting money for college.
After your FAFSA has been received, it will be reviewed and you will be sent a Student Aid Report and it will list what your family is expected to contribute. This is the information your eligibility for all of the need based financial aid will be figured out.
Applying for Private Student Loans
When you think of private loans, you have to consider them the same thing as a bank loan. Just because you might need it doesn’t always mean you can get it. They are credit score based loans of which the FAFSA has nothing to do with. When you apply for student loans with a bank they will have you fill out all the paperwork and then they will examine your credit. If your credit score doesn’t meet their qualifications, they might ask you for other alternative ways of securing your loan. Basically, if you can’t pay, who will?
Get a Student Loan Cosigner
We’ll go over more of this in another section so that we can explain it better, but in a short sentence this is somebody that has better credit than you and somebody that knows and trusts you. This person is willing to sign the loan agreement with you and pay should you not be able to or don’t.
Repaying Student Loans
One of the good things about federal student loans is that they usually have excellent repayment terms and options. A Stafford Loan for example, doesn’t require you to start paying back until you have graduated or leaving your school. Most loans also offer a grace period that allows you time to find a job after you graduate. We’ll have more on this topic as well.
Please don’t get discouraged; our job here is to make this process much easier and calmer for you because this can turn very emotional and frustrating. Also, many students that come from middle and higher income families sometimes do not apply for student loans for grants because they feel like they wouldn’t be able to qualify. Do NOT do this! Most students are eligible for some types of student loans and programs to make it easier for both you and your parents make it through college.
The first and most important step is to get over not knowing how to apply for student loan.