Apply For A Federal Student Loan
It is always recommended that you consider federal college student loans first. They will offer a low, fixed interest rate and the best flexibility for repayment. If you are seeking a degree, enrolled at least half time, and a U.S. citizen or U.S. national, you will more than likely qualify for some kind of financial aid.
Here is what you need to do:
1. Fill out the FAFSA
2. Find out how much you will qualify for
Fill out the FAFSA, the Free Application for Federal College Student Aid, is always the first step in applying for federal college student loans and grants. Some colleges will also use the FAFSA to determine eligibility for campus based programs and other types of financial aid originating with or administered from the college or university. It can be your ticket to some of the most affordable college financing solutions available today.
Complete the FAFSA online at www.fafsa.ed.gov as soon after January 1 as possible. The FAFSA is a big form that can takes up to two hours to complete and asks for detailed information. However, it is not so complicated if you gather your tax forms and financial information before you begin.
You will need to complete the FAFSA each and every year. However, after the first year, the Department of Education will send you a Renewal Application for Federal Financial Aid or a PIN to re-apply online.
You will usually find out how much you qualify for about four weeks after you have submitted the FAFSA to the Department of Education, you and the college or university you have applied to will receive a Student Aid Report. This will include your expected family contribution (EFC), or how much the government believes you and your family should also contribute to your education.
Next, the college or university you are accepted to will send you an award letter with different financial aid options that may include grants (free money), scholarships (more free money), Work-Study programs, and federal college student loans.
Undergraduate and graduate college students may qualify for a combination of subsidized and unsubsidized Federal Stafford College Student Loans. How much you can borrow will vary depending on whether it is a Federal Stafford College Student Loan for Undergraduates or a Federal Stafford College Student Loan for Graduate Students.
• Subsidized college student loans are only for college student borrowers who demonstrate great financial need, and the government pays the interest that accrues while the college student is in school or in a qualified deferment period.
• Unsubsidized college student loans are not need-based, and college student borrowers are responsible for all interest that will accrue. You can choose to make interest-only payments while in college, or postpone these payments until you leave school or drop below half-time enrollment. When you postpone the interest payments, the interest that has accrued will be added to the principal balance at the start of repayment.
Graduate college students may also qualify for the Federal PLUS Student Loan for Graduate and Professional College Students, and combine it with their Federal Stafford College Student Loan to cover the entire cost of their education.
Parents of undergraduate dependent college students can get the Federal PLUS Student Loan for Parents. Not all colleges and universities require college students to complete a FAFSA for parents to apply for the Federal PLUS Student Loan, but it is always encouraged to ensure that the college student receives the maximum financial aid possible.
If the federal college student loans you receive will not cover your expenses, you can also get a private college student loan to cover all the remaining costs. Parents who prefer to not take out a student loan themselves can help by cosigning their college student’s private student loan.
