Facts About Student Loans
For a lot of students, a task that is even more intimidating than college itself is figuring out how to apply for a student loan. While the paperwork may seem daunting and complicated at first, there are many resources available to assist you through the process. Many colleges and universities are transitioning to online form submission, making it even easier for most people. The first step in applying for a student loan is to fill out the standard application to receive federal student assistance. The Free Application for Federal Student Aid (FAFSA) is available online for convenient electronic submission or as a paper form from many guidance counselors. Once you have submitted the form, it will be evaluated, and you will receive a Student Aid Report that profiles your eligibility for the most common types of federal student aid. You could also be eligible for other types of federal aid, so be sure to check out other available programs as well.
Depending on the amount of federal student aid you will be awarded, you may need additional aid to cover all of your college expenses. A common way to do this is to search for and apply for a private student loan. Carefully research lenders, rates, terms, and application procedures to ensure you find the best deal for you. As with the FAFSA, virtually all lenders offer online form completion. Some students also obtain financial aid for their education through their parents, who have to borrow money to do so. The federal program for parents seeking a loan for their children's education is known as PLUS, and it also accepts online submission of forms. While this is not strictly a student loan, both federal programs and many private loan programs offer special interest rates to alleviate the burden on parents.
Once you have located the online forms for the federal student loan application program, you will need to sit down at a time when you are not rushed and be prepared with the information required by the form. In most cases, you will need to do this with your parents present to assist, as they will also be required to provide information. Your federal student loan application will require personal information about you as well as your parents. Standard details include full name, address, and social security number, along with bank statements and employment specifics. The application will require full disclosure of financial data. This includes recent income tax returns, stock market and other financial holdings, as well as property and other assets you may own. Both you and your parents will be required to provide these numbers. The form will also consider outstanding debts owed by you and your parents, including credit cards, car loans, and other payment amounts. Generally, the federal student loan application requires the most detailed information from you and your parents. This is because federal programs consider financial need when calculating assistance awards and they need a complete picture of the family’s financial resources.
On the other hand, a private student loan application might not require as much, or even any, information provided by your parents if yours will be the sole name on the loan. If your parents are co-signers, then they will need to provide financial information to confirm their credit stability alongside yours. The decision process for federal student loan awards is fairly lengthy, as the programs review applications from all over the United States. The large volume of applications means it will take some time to evaluate qualifications and determine eligibility for federal student loan programs. Private lenders, on the other hand, will generally make a decision...