How to Apply for a Federal Student Loan
Going to college is one of the best ways to increase your earning potential and can help prepare you for a better, more rewarding career. Unfortunately, the rising cost of tuition means that the vast majority of college students don’t have the necessary funds to pay for their school on their own. Unless the student’s parents are wealthy enough to pay for their education, this lack of funds could mean that the person is forced to give up their dreams of going to college. Luckily, the federal government understands this problem and offers a variety of federal student loans that can help you receive the necessary funds to pay for college. Of course, you’ll first need to apply and be approved for a loan, which is why we’ll now present you with a step-by-step guide to applying for federal student loans.
Step #1: Filling Out a FAFSA
The first step to applying for federal student loans is to fill out the FAFSA, or Free Application for Federal Student Aid. The FAFSA is designed to evaluate a student’s financial situation and to determine who should qualify for federal loans and scholarships based on financial need. Depending on your situation, the FAFSA will need to include information about both your and your parents’ financial situations. Married students, military service personnel and students over the age of 24 are considered independent, which means that the FAFSA is only based on their own financial information—not that of their parents.
The FAFSA can be filled out online, and it is essential that you give yourself plenty of time to gather the necessary information and apply in time to be qualified for the next semester. In addition to your financial information, you are required to list all schools that you are applying to or have been accepted to on your FAFSA form.
Step #2: The Student Aid Report
Once your FAFSA has been evaluated, each school you applied to will then be sent your Student Aid Report. This report contains information about your expected family contribution (EFC), which basically states the amount of money that your family can contribute to your education based on their financial situation. You will also receive a copy of your Student Aid Report, and it is essential that you thoroughly check the report to ensure all information is correct.
Each school you applied to will use your Student Aid Report to help determine whether or not you’re eligible for federal student aid, so it is vital that all of the information in the report is correct. In some cases, the school may require you to verify the information you provided in your FAFSA.
Step #3: Applying for Financial Aid
After evaluating your Student Aid Report and EFC, the schools should then send you information about any financial aid and grant programs that you might qualify for. It will then be up to you to fill out the applications to begin the process of getting approval for financial aid or federal student loans.
Step #4: Accepting a Loan Offer
If you are approved for financial aid, the school should then send you an award letter stating the total amount of financial aid or loans that you are being offered. You’ll want to carefully consider the offer, making sure to realize that you’ll need to pay back whatever you borrow with interest. After evaluating the award offer, you can choose to accept the loan, refuse it or request a smaller loan amount.
Step #5: Loan Counseling
If you’ve never received a loan before, it will usually be necessary for you to undergo entrance counseling before the school will disburse your loan. This counseling helps to ensure that you understand your responsibilities. Some schools offer online loan counseling, while others require you to attend in person.
Step #6: Receiving Your Loan
After accepting a loan offer, the money will usually be sent directly to the school and then the school will distribute the loan to you in order to help you pay for tuition, books and living expenses.
Although the process to apply for a student loan does take some time, it isn’t all that difficult and will be well worth the effort if it allows you to receive a college education.
