- Before applying for a student loan, exhaust all other financial aid. ...
- Understand your student loan options. When it comes to student loans, there are two main options: federal and private student loans. ...
- Gather all your financial information. Whether you plan on applying for federal or private student loans, you’ll need to collect some information before you complete the process to ...
- Complete the FAFSA. To qualify for financial aid, you must complete the Free Application for Federal Student Aid (FAFSA).
- Submit a CSS profile for institutional financial aid. Besides federal aid, you may be eligible for institutional aid, which comes from the school you attend.
- Review your financial aid award letter. After you complete the FAFSA and are accepted into college, schools will send you a financial aid award letter, which details what ...
- Decide if applying for student loans is right for you. In some cases, you may find that you need more aid than the school and government will provide. ...
Full Answer
What do students learn in EverFi pathways?
Students learn about topics like financial aid, applying for FAFSA, student loans, and budgeting for responsible loan repayment. EVERFI Pathways: Financing Higher Education is available for all U.S. Schools at no cost.
Do you need a step-by-Step Guide to apply for student loans?
Don’t worry, though. Here is a step-by-step guide on how to apply for student loans so you can get your college life underway. Before even thinking about applying for a student loan, make sure you exhaust all your other options first. There are other forms of financial aid you can use to pay for college:
How do I check if I'm getting financial aid?
To check, go to StudentAid.gov and log into your Federal Student Aid account. On your dashboard, look for "My Aid" and then for the section for grants and loans, which will provide the data.
How do I qualify for financial aid?
To qualify for financial aid, you must complete the Free Application for Federal Student Aid (FAFSA). It’s what the federal government and colleges use to determine your aid. It’s free to complete the FAFSA, but it’s a good idea to submit your application as soon as possible.
What are the steps in the student loan process?
How to apply for a student loan in 6 stepsStep 1: Fill out the FAFSA. ... Step 2: Review your financial aid award letters. ... Step 3: Accept your federal loans. ... Step 4: Compare private student loans. ... Step 5: Fill out the application. ... Step 6: Review and sign your loan documents.
What are the 5 steps in the student loan life cycle?
5 Steps for Student Loan SuccessStudent Loan Success. ... Find as much “free” money as you can. ... Look into federal loans. ... Make sure you know what's happening with your loans at all times. ... Make your student loan payments on time. ... Pay more than your minimums.
What are the three stages of a student loan?
Those who have Federal Stafford Loans typically go through three stages: in school, in grace, and in repayment. Private loans follow a similar life cycle as a federal student loan, however, terms and conditions vary depending on the lender.
What is the first step in obtaining student loans and some grants?
The Free Application for Federal Student Aid (FAFSA) is the first step in the college financial aid process. It must be completed every year by students seeking financial aid. Financial aid includes grants, scholarships, work-study programs and student loans. The application is free to complete.
What is a loan life cycle?
A loan cycle is defined as the period from which a borrower applies for a loan to time it is paid off with interest to the lender. The average loan cycle consists of five stages and here is how borrowers can manage the processes in each one of these steps.
What is the life of a student loan?
For most federal loans, that'll be 10 years (but it can take up to 30 years). For private loans, the term can vary based on the terms of your loan agreement. Interest Rate: This is how much interest you'll be paying on the loan.
How are student loans paid out?
Generally, your school will give you your grant or loan money in at least two payments called disbursements. In most cases, your school must give you your grant or loan money at least once per term (semester, trimester, or quarter).
When should my student loan come through?
Student loans are paid in three instalments, but the exact day you'll receive yours depends on your term start date. If your course starts in September, you should receive your payments in September, January and April.
How long after school are student loans due?
For most federal student loan types, after you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period (sometimes nine months for Perkins Loans) before you must begin making payments.
What is the first step in student loans?
The first step in applying for student loans is to fill out the government's Free Application for Federal Student Aid (FAFSA).
What are the 4 types of student loans?
Keep in mind that all student loans, including federal loans, are money that you are borrowing to pay for school and must pay back with interest....There are four types of federal student loans available:Direct subsidized loans.Direct unsubsidized loans.Direct PLUS loans.Direct consolidation loans.
What is the first step in applying for financial aid quizlet?
Completing a need analysis form is the required first step in applying for most types of financial aid. Financial aid that is awarded based on a student's financial circumstance. Need-based aid can be awarded in the form of grants, loans, or work-study.
What is the maturity of a student loan?
Generally speaking, many private student loans give you 120 months (10 years) to repay. However, some private student loan terms have you repay over 25 years. Check the terms and conditions of your loan, or contact your servicer for more details to find out how long it will take you to repay your private student loans.
What is a maturity date on a student loan?
Loan maturity date refers to the date on which a borrower's final loan payment is due. Once that payment is made and all repayment terms have been met, the promissory note that is a record of the original debt is retired.
How long do nelnet payments take to process?
When will my payment be posted to my Nelnet account? Once payments are received, it can take up to two business days to post to your account. A payment made online, over the phone, or through check/money order sent by you or your bill pay provider is posted effective on the date of receipt.
How long after school are student loans due?
For most federal student loan types, after you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period (sometimes nine months for Perkins Loans) before you must begin making payments.
Where do federal student loans come from?
Federal student loans come from the U.S. Department of Education, while private student loans come from private institutions like banks, credit unions, and online lenders. In general, federal student loans should be your first loan choice.
What are the two types of student loans?
When it comes to student loans, there are two main options: federal and private student loans. Both types of loans offer students temporary funding assistance to pay for the college or university they’ll be attending.
How long do you have to pay off federal loans?
Federal loans have a grace period. It’s a six-month period after you graduate when you don’t have to make payments on your loans, giving you time to find a job. When you enter repayment, federal loans have unique perks, such as the ability to enter into an income-driven repayment plan.
How much does it cost to go to college?
As all freshly accepted college students know, school can be very expensive. According to The College Board, a single year at a public, in-state university is $9,410. If you opt for a private school, that number jumps to $32,410. Few people can afford to pay that out of their own pockets, so most turn to student loans to foot the bill.
How long does the government cover subsidized loans?
With subsidized loans, the government covers the cost of the interest that accrues while you’re in school and for six months after you graduate.
How much does it cost to get a school profile?
To do so, create an account. Then, select the schools you’re interested in—not all schools participate—and provide information about yourself, your family’s finances, and your assets. There is a $25 fee for submitting the profile, and you’ll have to pay $16 for each additional report.
What is a work study program?
Work-study programs: With a work-study program, you work at a part-time job related to your area of study and use the money you earn to pay for a portion of your tuition and expenses. By utilizing these forms of financial aid, you can minimize how much you need to borrow in student loans.