More than half of college students will need to borrow money to help pay for school. If you are wondering how to get a student loan, the first step is to fill out the Free Application for Federal Student Aid (FAFSA®). The FAFSA is the application you need to complete for a federal student loan, and the information you provide will also help determine your eligibility for gift-aid (money that doesn’t have to be repaid) such as grants and scholarships. However, even with gift-aid, you may find yourself in a position where you need additional help to cover your educational expenses.
It is recommended that you complete the FAFSA, even if you intend on just using private student loans to pay for college. You may be eligible for financial aid offered through your school or state that you weren’t aware of. Not all need-based financial aid has the same income thresholds. Also, remember that not all financial aid is only for those who are struggling to find the money to pay for school, as there are merit-based options available as well.
Student loans can help cover the costs of school when gaps in educational funding arise. Many banks and credit unions offer private student loans with terms that sound competitive, but it’s best to exhaust all your options for gift-aid and federal student loans first.
How to Apply for a Student Loan
If you’re going to borrow a student loan, your first step would be to complete the required loan applications for a student loan. The application required for a federal student loan is the FAFSA. And the application for a private student loan would be the application required by your prospective lender—however, it is recommended that you complete the FAFSA to determine your eligibility for federal aid first.
By filling out your FAFSA, you can be matched up with potential grants, scholarships, or loans. Though the application can be a bit daunting to complete with questions regarding income, tax returns, and other financial information, the FAFSA uses this information to assess your financial need to attend school. With a parent and necessary documentation, it typically takes about 45 minutes to an hour to complete the application online or using the mobile app.
Filling out the FAFSA
Useful information for you and your parent to have on hand when submitting the FAFSA application:
• Social security number
• Driver’s license
• Federal income tax information for the appropriate year (ex. 2022-2023 FAFSA requires tax records from 2020)
• Records of untaxed income
• Records of your assets
• A list of schools you are considering
Your FAFSA enables you to be considered for federal aid. This is a free application, so even if you don’t think you will be awarded aid, you may be surprised with what financial options are available to you. Your college’s financial aid office uses the information from the FAFSA to determine your eligibility for financial aid for the upcoming year. Your financial need is calculated by subtracting your expected family contribution (EFC) (which is determined by your FAFSA), from your school’s set cost of attendance (COA) for your program. The FAFSA is your application for federal grants, federal student loans, many state financial aid opportunities, and may be used by your school for institutional grants and scholarships.
FAFSA Eligibility
To qualify for federal student loans through the FAFSA, you need to meet the basic eligibility requirements for financial aid. You also need to meet the eligibility requirements specific for federal student loans, which includes being enrolled at least half time in an eligible program. As you continue to attend school more than half-time, your college will make an annual assessment of your loan eligibility for the upcoming academic year. Your school will look to see what your annual loan limits are, and where you are with your aggregate (total) loan balances.
With this information, they will determine the loans to be offered to you and include them on your financial aid award letter. If the amount of federal student loans isn’t enough, you will want to set up some time with the financial aid office to go over your financial aid award letter and discuss your situation. Be ready to explain any changes in your financial status to best help the financial aid office find the right options for you. If your school is unable to increase your financial aid award when needed, your next best option may be private student loans.
Federal Student Loans
The U.S. Department of Education offers loans through the William D. Ford Federal Direct Loan Program. Direct Loans are offered to you based on the information you provided on your FAFSA. Each loan type has different eligibility requirements. Federal student loans come with benefits that may be valuable to you depending on your circumstances. You should do thorough research to understand what you are committing to and what your repayment options will be before accepting any loans as they will be a part of your life for the next ten years or more once you begin repayment.
Federal Direct Loans:
1. Direct Subsidized Loan
This type of loan is only available to undergraduate students. Eligibility is determined based upon demonstrated financial need. With a subsidized loan, the federal government pays the interest on your loan while you are enrolled at least half-time, during your grace period, and during periods of authorized deferment. The government paying your interest is also known as the “subsidy” on this loan.
2. Direct Unsubsidized Loans
Unsubsidized loans are available to both graduate and undergraduate students and you do not need to demonstrate financial need to qualify. With a Direct Unsubsidized Loan, you are responsible for the interest that accrues. The government does not provide a subsidy on this loan.
3. Direct PLUS Loans
These loans can be made to both graduate or professional students, in addition to parents of a dependent (as determined by the student’s FAFSA) undergraduate student. Direct PLUS Loans are available to help pay for school expenses that are not covered by other financial aid.
Your eligibility is not based on the student’s financial need, but the borrower will have their credit checked by the U.S. Department of Education. Potential borrowers with adverse credit history as defined by the U.S. Department of Education may be denied a PLUS loan. However, borrowers denied a Direct PLUS loan will have the ability to submit an extenuating circumstances appeal, or the option to re-apply with a cosigner who does not have adverse credit. If a parent is denied a Direct Parent PLUS loan, their dependent undergraduate student will be eligible for the higher annual loan limits for a Direct Unsubsidized Loan, which is offered to independent undergraduate students. To be eligible for these higher loan limits each academic year the student is enrolled, the parent will need to be denied a Direct PLUS Loan every year.
More >>> Student Loan Options for Borrowers with Bad CreditFederal Student Loan Benefits
The Federal Direct Loan Program offers benefits that are not always an available option with private student loans.
Repayment Plan Options
• When it comes to student loan repayment, federal student loans have multiple options. It makes it easy for a student to find a repayment plan that works with their budget. The default repayment plan is a 10-year Standard repayment plan, but there are other options, including graduated repayment plans (which the payments start small and increase over time), and repayment plans which base your payments on your income and family size.
Income Driven Payment Plans
• Income Driven Repayment plans base your payments on your income and family size. The goal being to make repayment affordable depending on your specific circumstance. These plans range from 10%-20% of your discretionary income.
Most Federal Loans Do Not Require Credit Checks
• Most federal student loans do not require a credit check, which is helpful for recently graduated high school students who typically have little to no credit history. If you plan to borrow a Direct PLUS Loan, the U.S. Department of Education will ask you to authorize a credit check. The Direct PLUS Loan credit check is only checking to see if you have adverse credit, as defined by the U.S. Department of Education. While trying to determine if you have adverse credit, the Department of ED will not look at your credit score, debt-to-income ratio, or your work history.
More>>>Federal Student Loan Repayment Plans
Private Student Loans
Private student loans are available to fill funding gaps when your other financial resources come up short. It is recommended that you research the best student loan option for you and your circumstance. Know that many private student loan lenders do not charge origination fees, unlike federal student loans. Private lenders can offer competitive interest rates as well as other features and benefits that may be of value to you.
Compare Featured Lenders
Sallie Mae student loans
- Variable Rates: 1.62% APR - 11.73% APR. Fixed Rates: 3.75% APR - 12.85% APR. Lowest rates shown include 0.25% interest rate discount with auto debit payments.1
- Apply online in minutes and receive an instant credit result2
- Multiple repayment options from in-school payments to deferred.1 No origination fee or prepayment penalty3
- You may be 4X more like to be approved with a cosigner4 and it may help you get a better rate.
- Only undergraduate student loan that offers 4 months of free Chegg® study help5
- Borrow up to 100% of school-certified expenses, whether you're online or on campus6
Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
This loan is for undergraduate students at participating degree-granting schools. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend a participating school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and provide an unexpired government-issued photo ID to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.
2From January 1, 2021 to December 31, 2021, instant credit decisions were provided to 98% of applicants. Other applications received credit decisions in 3 to 5 business days.
3Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
4Based on a comparison of approval rates for Sallie Mae Smart Option Student Loans for Undergraduate Students who applied with a cosigner versus without a cosigner from May 1, 2020 through April 30, 2021.
5This promotional benefit is provided at no cost to borrowers with undergraduate or parent loans with a first disbursement between May 1, 2021 and April 30, 2024. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Study® offers expert Q&A where students can submit up to 20 questions per month. No cash value. Terms and Conditions apply. Please visit http://www.chegg.com/legal/smtermsandconditions for complete details. This offer expires one year after issuance.
6Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.
Information advertised valid as of 5/13/2022
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Smart Option Student Loans® are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
© 2022 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.
College Ave student loans
- Competitive fixed and variable APRs starting at 1.19%1
- Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
- Flexible payment terms ranging from 5, 8, 10, and 15 years2
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)3
- No origination, application and processing fees, no fees for early repayment
- Apply online in 3 minutes and get an instant credit decision
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 4/19/2022. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
Variable: 0.00% APR - 23.00% APR1
5-10 years
Edly No Cosigner Required
- MUST BE a US citizen or permanent resident
- MUST BE a college junior, college senior, or grad student
- No co-signer required
- Get approved in minutes. Pre-qualify without affecting your credit score
- Income-based repayment with built-in protections, like deferred payments if you lose your job
Edly Student IBR Loans are unsecured personal student loans issued by FinWise Bank, a Utah chartered commercial bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.
Loans from $5,000 - $25,000 Example: $10,000 IBR Loan with a 7% gross income payment percentage for a Senior student making $65,000 annually throughout the life of the loan. Payments deferred for the first 12 months during final year of education. After which, $270 Monthly payment for 12 months. Then $379 Monthly payment for 44 months. Followed by one final payment of $137 for a total of $20,610 paid over the life of the loan.
About this example: The initial payment schedule is set upon receiving final terms and upon confirmation by your school of the loan amount. You may repay this loan at any time by paying an effective APR of 23%. The maximum amount you will pay is $22,500 (not including Late Fees and Returned Check Fees, if any). The maximum number of regularly scheduled payments you will make is 60. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 annually or if you lose your job and cannot find employment.
Ascent student loans
- AFFORDABLE variable rates starting at 1.64% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- NON-COSIGNED option may be available for undergraduate juniors and seniors.
- PAY AFTER LEAVING SCHOOL – Customize your loan with flexible repayment options – start payments after graduation.
- FORGET FEES – No application, origination or disbursement fees. No prepayment penalty if you choose to pay your loan off early.
- COVER UP TO 100% of your tuition and eligible living expenses.
* Ascent loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs
Rates are effective as of 05/01/2022 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: www.AscentFunding.com/Rates
1% Cash Back Graduation Reward subject to terms and conditions. Click here for details. Cosigned Credit-Based Loan student borrowers must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs are available for the most creditworthy applicants and may require a cosigner.
Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
SoFi student loans
- Variable Rates: Starting variable rates range from 1.69% APR - 11.97% APR (with autopay)*, and will never exceed 13.95% (sometimes lower in certain states as required by law)
- Fixed Rates: Fixed rates range from 3.47% APR to 11.16% APR (with autopay)*
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees. Period
- Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
- 0.25% discount when you set up autopay*
*Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
Fixed: 7.49% APR - 12.99% APR (not including 0.5% ACH discount)*
10 years
$20 minimum/month OR interest-only payments while in school
Funding U student loans
- Up to $15,000 per academic year with no cosigner required
- Fixed Rates (APR) from 7.99% to 12.49% (plus an additional 0.5% discount for ACH auto-payments)*
- No origination fee. No late payment fees. No prepayment penalties.
- Quick prequalification and rate check that won’t impact your credit
- Multiple repayment options
- Dedicated loan officer for every borrower
New student loans of $3,001 up to $15,000 per school year will be granted to residents of eligible states enrolled as undergraduates in bachelor’s degree or equivalent- granting programs at eligible schools.
Funding U offers fixed interest rate loans, without a cosigner, to students who are serious about their academic success and post-grad career. Eligibility is determined by several factors, including: school graduation rate, class hours completed, estimated graduation date, academic record, major; employment or internship experience; and, other academic and non-academic activities that demonstrate the borrower is working hard towards academic and professional goals and is on track to be able to repay debt accrued.
Eligibility is also limited by state of permanent residence. Terms and conditions vary by state. Not all loans are available in all states. Loan amounts available may vary by state.
DISBURSEMENT All Loan proceeds will be sent to the student borrower’s school around the time classes begin, on the date your school prefers. Funding U will require documentation to verify your registration and certify your loan need prior to disbursement. Your school must also certify your loan need. Your loan may be adjusted based upon the amount of need certified by your school.
REPAYMENT TERMS New Undergraduate loans for the 2021-2022 school year will have an Annual Percentage Rate (APR) of 7.49% to 12.99%. All loans have a fixed interest rate range of 7.49%* to 12.99% (before consideration of ACH discount). There is no origination fee. Interest accrues while students are in school.
In-school partial payments: Students may choose either $20 monthly as a “Fixed Payment” while enrolled in school or “Interest Only” payments. These payments will be reported to credit agencies like other student loans. All loans have a 10-year repayment term (paid monthly over 120 months starting 6 months after graduation). Both In-School payment options may not be available in all states. Student’s electing to make Interest-Only payments will receive a 0.5% interest rate discount.
PREPAYMENT PENALTIES There is no prepayment penalty on your loan.
Additional details, terms & conditions will be included in each loan offer.
*The lowest rate shown is available only to juniors & seniors with outstanding academic performance and is not typical of the rates offered to most borrowers. Your actual rate will depend on creditworthiness and other factors, such as your school year and GPA.