Federal Student Loans for Independent Students
Independent student? Here’s your step-by-step guide to federal student loans: what to expect, how to prepare, and how to borrow smart.
What It Means to Be an Independent Student
When you fill out the FAFSA, your dependency status decides if you must include your parents’ finances.
You’re considered an independent student if at least one of these applies:
- You’re 24 years old or older.
- You’re married.
- You’re a graduate or professional student.
- You’re a veteran or on active duty.
- You support children or other dependents.
- You were in foster care, are an orphan, or a ward of the court.
- You are an emancipated minor or homeless (or at risk)
- You’ve been granted a dependency override by your financial aid office.
If married, include your spouse’s finances. Parent information is not usually needed for independent students.
Step 1: Create Your StudentAid.gov Account
Before starting your FAFSA, create a StudentAid.gov account (FSA ID).
You’ll use it to:
- Log in and sign your FAFSA
- Complete required Entrance Counseling
- Sign your Master Promissory Note (MPN)
Tip: Have your Social Security number, legal name, date of birth, and email ready when creating your account.
Step 2: Complete the FAFSA
Go to StudentAid.gov and complete the Free Application for Federal Student Aid (FAFSA).
You’ll need to:
- Answer the dependency status questions carefully.
- Add every school you’re considering.
- Use the IRS Data Retrieval Tool (if eligible) to import tax info.
- Sign and submit your FAFSA before state and school deadlines.
You must file the FAFSA to be eligible for all federal aid, including grants, work-study, and loans.
Step 3: Review Your FAFSA Submission Summary (FSS) and SAI
After you submit your FAFSA, you’ll get your Student Aid Index (SAI) in the FAFSA Submission Summary. Schools use this to determine aid packages.
Following the submission of your FAFSA, you may be required to provide additional documentation to verify the information reported. It is essential to monitor your email and institutional student portal frequently for such requests. Once your institution has completed its review of your application and any supplemental materials, you will receive a formal financial aid offer. The timing of this notification varies by institution and may be influenced by processing times and each school's specific deadlines, but it generally occurs after all documentation has been received and evaluated. The aid offer will detail your eligibility for various forms of federal assistance, including grants, work-study opportunities, and federal student loans.
Step 4: Decide Which Aid to Accept
Not all aid is equal. Here’s how to prioritize:
- Grants and scholarships do not need to be repaid. They are the best aid.
- Work-study lets you earn money through a part-time campus job.
- Loans must be repaid with interest, unlike scholarships and grants.
You do not have to accept the full offer. Only borrow what you need; you can reduce or cancel later.
Step 5: Complete Entrance Counseling
If you are a first-time borrower, you need to complete Entrance Counseling and pass the quiz on StudentAid.gov.
This short online course explains:
- Estimating the cost of your education.
- Managing your finances.
- How federal student loans work.
- How repayment works and the consequences of loan default.
After completing this course and passing the quiz, the school will be notified by the U.S. Department of Education, and then your loan funds will be disbursed.
Set aside about 30 minutes to complete it.
Step 6: Sign Your Master Promissory Note (MPN)
Your MPN is your loan agreement. It outlines the terms of your loan and your promise to repay it.
Sign it electronically on StudentAid.gov. Once signed, your school will receive the funds and apply them to tuition and fees. Any remaining amount may be refunded to you for books, housing, or other education expenses.
