BusinessHABHow to Get Student Loan: How likely is it that you would recommend this tool to a friend or colleague?
Overwhelmed by student loan debt? You’re not alone.
Some 40 million people still have debt to pay off from their college days.
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How to Get Student Loan
Letting your student debt pile up year after year without taking action to pay it off is not a good idea.
Ignore it long enough and you’ll eventually find your wages garnished and your credit destroyed.
If your credit score drops too low, you’ll reduce your chances of being able to secure the car or the house you want.
You wouldn’t want any of that to happen.
So what are your options? If consolidating your loans won’t improve your circumstances.
Or you can’t qualify for any repayment plans – like the federal government’s Pay As You Earn Plan.
You can always consider refinancing your student loans.
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How to Get Student Loan
Applying to colleges is nerve-racking enough.
But once you get in, you reach the next hurdle: figuring out how to pay for it.
If you have a strong academic record or are a stand-out athlete.
You might be able to get some scholarships to help cover the cost.
However, most college students end up taking out student loans.
While many of these loans come from the federal government.
You can also get student loans from private lenders.
Start the process by filling out the FAFSA (Free Application for Federal Student Aid) and go from there.
Compare interest rates and terms carefully.
And always keep in mind that you’ll be responsible for paying off your student loans as soon as you leave school.
How to Get Student Loan
1. Find out if you’re eligible for federal student aid.
Check the eligibility requirements on the federal student aid website.
Or talk to one of the counselors in your school’s financial aid office.
While there are some exceptions, generally, you must:
- Demonstrate financial need (for most forms of federal aid)
- Be a US citizen or lawful permanent resident
- Have a valid Social Security number
- Be registered with Selective Service if you were assigned the sex of male at birth
- Be enrolled or accepted for enrollment in an eligible degree or certification program
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2. Create an FSA ID to manage your federal aid online.
Go to https://studentaid.gov/fsa-id/create-account/launch to create your account on the Federal Student Aid website so you can fill out the FAFSA online.
And complete other tasks related to your federal aid.
Although you can create your account when you fill out the application.
It’s quicker to set up your account ahead of time.
- If you create your account before you fill out the FAFSA, much of your information will be automatically entered on your application.
- This saves time and also reduces the risk of an error that could delay your financial aid.
3. Fill out the FAFSA online as early as January.
Once you know where you’re going to school.
You can go ahead and apply for federal financial aid as soon as the January before the school term starts.
You can fill out the form online at https://studentaid.gov/h/apply-for-aid/fafsa.
When you get ready to fill out the form, have the following information handy:
- Your Social Security number (or Alien Registration number if you’re not a US citizen)
- Your parents’ Social Security numbers if they claim you as a dependent on their taxes
- Your federal tax return for the previous year
- Records of untaxed income, such as child support payments
- Information on banking and investment accounts and other assets
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4. Ask your parents to provide financial information if you’re a dependent.
If your parents claim you as a dependent on their taxes (ask if you’re not sure).
They’ll need to provide tax information and sign the form.
If they’re signing electronically, they’ll also need to create an FSA ID.
- Your parents will need to provide the same financial information you did.
- Including information from their tax return for the previous year, their untaxed income, and their assets.
- If your parents don’t have a Social Security number, they won’t be able to create an FSA ID. You’ll have to print the signature page on the website and mail it in. The print option isn’t available on the mobile app.
How to Get Student Loan
5. List colleges or career schools you want your information sent to.
You have to send your information to at least one school that you’ve been accepted to.
However, if you’ve been accepted to several schools and haven’t made your decision yet.
You can list up to 10 schools.
- Some states require schools to be listed in a particular order for state financial aid purposes. Check https://studentaid.gov/apply-for-aid/fafsa/filling-out/school-list to find out the requirements for your state.
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6. Submit your FAFSA to the Department of Education (DOE).
Once you’ve completed the FAFSA, you can submit it online or through the mobile app.
If you’re a dependent student, your application won’t be processed until your parents have also provided financial information and signed the application.
- Double-check your information before you submit it. Any errors could delay your financial aid decision.
- If you print a PDF of the application and mail it in, your application will take longer to process.
7. Calculate the cost of your education for the school year.
While you’re waiting to hear back from the DOE.
Work out a budget of your education and living expenses for the school year.
Your school’s financial aid office likely has an estimate that you can use as a starting point.
Although your personal expenses might differ depending on your situation.
- For example, suppose your tuition and fees are $10,000 a semester.
- You’re living on campus, which means you’re also paying $5,000 a semester for your dorm room and $1,000 a semester for your meal plan. This means you need a total of $16,000 a semester, or $32,000 a year, for tuition, room and board.
- In addition to tuition, room and board, estimate costs for books and supplies as well as other expenses you might have. If you’re working while in school, factor in that income to cover some of your bills and expenses.
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8. Go over your financial aid offer in your school’s financial aid office.
Once your application is processed, you’ll get a Student Aid Report (SAR).
This report includes an amount the federal government has determined you and your family should be able to pay towards your education.
Then, you’ll have a list of the types and amounts of financial aid offered to you.
- A counselor in your school’s financial aid office can help explain the different types of financial aid that have been offered to you and how funds will be disbursed.
- Compare the aid you’ve been offered to the total expenses you’ve calculated so you’ll have an idea where you stand.
How to Get Student Loan
9. Accept only the aid you need.
Depending on your circumstances, your financial aid offer might be a mix of grants and loans.
Accept any grants first, then subsidized loans.
Which don’t accrue interest while you’re in school.
If you still have unmet need, take any unsubsidized loans you’re offered.
- Unlike subsidized loans, unsubsidized loans accrue interest while you’re in school, even though you aren’t expected to make any payments during that time. This means that the amount you owe is actually growing while you’re in school.
- While student loans are generally considered a “good” debt, because they’re an investment in your future, even a good debt is still a debt that you’ll have to repay. Borrow only as much as you need, not the maximum amount you can.
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10. Complete entrance counseling to receive your loan funds.
You can take the entrance counseling online on the FSA website.
Basically, it explains how the interest accrues on your loans.
When you’re responsible for paying them back, and what the penalties are for nonpayment.
- If you’re getting loans, the funds won’t be disbursed until you’ve completed the entrance counseling.
- If you have trouble completing the entrance counseling, contact one of the counselors in your school’s financial aid office. They’ll help you get everything sorted.
How to Get Student Loan
11. More tips
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Try to cover as much of your educational expenses as you can with grants and scholarships that you don’t have to pay back. This will put you on stronger financial footing when you graduate.
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Always apply for federal aid before you apply for private loans.
If you’re able to get enough federal aid to cover the cost of your education.
There’s no need to apply for private loans, which have higher interest rates and fewer repayment options.
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If you’re working while in school, use some of your income to make student loan payments while you’re still in school to minimize your overall debt when you graduate.
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If your or your family’s financial situation changes.
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You might be eligible for a financial aid adjustment.
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Contact your school’s financial aid department.
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This article covers how to get a student loan in the country.
If you’re attending a school in another country or attending school as an international student.
The process will be different. Speak to someone in the financial aid office of the school you plan to attend.
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The FAFSA is always free to fill out.
If you end up on a website or mobile app that asks you to pay money to fill out the application, you’re dealing with a scam.
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Read the terms of your student loan carefully. When you graduate or leave school, you’ll be responsible for paying back all of the money you borrow, plus interest.
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If you leave school before you get your degree or don’t get the job you expect after graduation, you’re still responsible for paying your student loans.
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