How Do I Apply for a Student Loan?

How Do I Apply for a Student Loan?

When to Apply for a Student Loan

Parents should be discussing how to finance college during the student's junior year in high school. This will ensure that the family is realistic about school options. Applying as early as possible is wise because the distribution of the money is based on a "First-Come, First-Served" basis. The family should fill out the FAFSA as soon as possible after January 1st of the student's senior year in high school.

Some parents can pay for all of their child's education. They might not want to do so, instead choosing to take out a private loan. Children of affluent parents can still qualify for scholarships and other merit-based loans.

Children with poorer parents might be unsure of whether or not they can afford to go to college. By filling out a Financial Aid Form, these children might be surprised at all of the "needs-based" programs that are available. Applications must be made annually.

FASFA Form for Student Loans

"Financial Aid for Federal Student Aid (FAFSA)"

Either acquire a Financial Aid for Federal Student Aid (FAFSA) form physically or file electronically on the Federal Government's website: "fafsa.gov". Application online is free. The FAFSA looks like a tax form with many of the same rules applying. There is a federal deadline that may change by year (it is usually around June 30th); states have their own deadlines too (based on the date that the application is postmarked, received or processed).

The information required on a FAFSA includes the following:

- Name

- Address

- Social Security Number

- Date of Birth

- Phone Number

- Colleges of Interest

You must use the last tax return you filed to fill out the form. The Federal Government does not consider the home you live in, pension funds or retirement accounts as investments. The business and/or investment farm value includes market value of land, buildings, machinery, equipment and inventory.

The FAFSA is broken into separate student and parent sections. You can list up to six schools on a form. You should apply for financial aid each year by filling out the FAFSA.

You can work with a high school guidance counselor or college financial aid administrator to fill out the financial aid forms.

Where to Apply for a Student Loan

Depending upon your circumstances, there are three main places where you can apply for student loans: 1) Federal government, 2) College or university or 3) Bank, credit union or other financial institution.

The advantages of filing the FAFSA is that you can select up to 6 different colleges or universities where the financial award package will be sent. Sometimes, these schools will look at your financial aid package and attempt to "compete" for your enrollment by offering you more lucrative deals. They know that a portion of your tuition will be paid by the government. Financial institutions use the FAFSA as a starting point for calculating some private student loans.

By working through your college or university you can create a better fitting financial aid package, especially if the school has its own financial resources to tap into. Sometimes, it is nice to have a combination of different financial aid. Everyone likes free grants and scholarships. The great thing about work-study programs is that it helps you repay your debt before your graduate so that your debt load will be less later on.

Financial institutions have a myriad of different loans available. People have more control over a private loan's terms and conditions so they can better tailor the money to their needs.

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