To apply for a Federal Student Loan please follow the following three steps: First, fill out the FAFSA Application for College. Second, sign and date the FAFSA. Third, send the FAFSA to the Federal Student Aid office in your college of choice. This will help you determine if your college is approved for Federal Student Aid or not. If it is approved your application will go on to the next stage. The next stage is to select which type of student loans you wish to apply for, the types are as follows:
Federal Direct Loan (EDL) – These types of student loans come from the federal government. They offer many unique features like no cosigner, low interest rates, subsidized and unsubsidized loans. When you apply for an edl you must submit all of the required documentation and paperwork via fax. Your student loan website should have multiple ways that you can apply for an end directly through the federal government.
Stafford Loan – These are offered by the federal government as well. Stafford Loans are made possible by borrowing money from the federal government in return for some type of service after graduation such as teaching. You can apply for a Stafford loan via your student loan website directly through the federal government. Stafford Loans offers low interest rates and subsidized services, so you may want to consider this option when determining which student loan to get. If you are approved for a Stafford loan, you will then need a Stafford Loan Enrollment Kit in order to complete the application process.
Non-Federal Loans – These types of student loans are not offered through the federal government. They come from banks, private companies and other third party lenders that specialize in education funding. The application process for non-federal student loans is a little different than Stafford loans. Your student loan website should be able to help you with both Stafford and non-stafford loans. If you have a Stafford loan and want to apply for a non-Stafford one you will need to fill out the same student loan application process but you will not have to provide financial information via fax.
Direct Consolidation Loans – These types of loans are often referred to as Direct Loan Consolidation Loans. They work much like a standard consolidation loan process except that the government will pay all of your loans instead of you paying them. Your student loan website should be able to help you determine if you qualify for one of these loans. To apply for a direct consolidation loan you will first need to determine which type of consolidation you are eligible for. If you currently have multiple student loans that all have different interest rates and pay terms then this is your first step.
For students who qualify you can consolidate both federal and private student loans into one. The interest rates are often very similar between these two types of student loans, although private school may have better rates. However, the biggest advantage to consolidating student loans is that you can pay them all off faster. This means that you will save money on interest charges and possibly even lower your payments. Your student loan website should be able to give you more information about each of these options.
The next step is to choose the repayment plan that best fits your needs. For most federal student loans, the standard plan requires that you make a payment plan each month. However, in some cases you can defer the payments until after you graduate. In order to do this you will need to talk to your loan officer or you can apply for an interest rate deferment. In either case, you will be subject to the same repayment plans as other students with federal student loans.
Private student loans typically have a much higher interest rate than federal loans. As a result you may want to look at getting a private loan with a higher interest rate that has a longer repayment period. This is especially useful if you have plans of going back to school and want to keep the payments as low as possible. Talk to a loan officer to find out which types of repayment plans are available to you based on your current financial status.