How Do You Apply for Student Loans?
FAFSA
Every student should start by filling out the FAFSA (Free Application for Federal Student Aid), which not only determines your eligibility for federal grants but loans as well. Once you complete the form online, your SAR (Student Aid Report) will be sent to you. The EFC (Expected Family Contribution) section of this report is what your financial aid office will use to determine your eligibility for a federal loan.
Financial Aid Office
If you qualify for this type of federal financial aid, your school will prepare a financial aid package based on the amount of money you need. They will determine this need by subtracting your EFC from the total cost of attendance.
Private Lender
If you do not qualify for federal aid, you will need to contact a private lender. Your financial aid office may be able to recommend a lender; however, it is always a best practice to do your own homework. Research all lenders for the best possible interest rate and compare the loans. There are many free online resources that can also help you find and compare loans.
Before you accept any loan, keep in mind that you should only borrow what you need because you will have to repay the loan with added interest. Don’t forget to resubmit your FAFSA each year to determine if your eligibility for federal aid has changed.
