For many families, student loans are a key part of making college affordable. With the rising costs of tuition, housing, and other expenses, not everyone can pay for college out of pocket. That’s where student loans come in—they provide the financial support you need to invest in your education and your future.
We understand that applying for student loans can seem scary at first. There’s a lot of paperwork, confusing terms, and decisions to make. But don’t worry—once you break it down into clear and simple steps, the process becomes much easier to manage.
1. Understanding Student Loans
Applying for student loans can feel like a big step, but knowing the basics will set you up for success. Here’s what you need to know:
What Are Student Loans?
Student loans are borrowed money that helps you pay for college costs like tuition, housing, books, and other expenses. Since it’s a loan, you do have to pay the money back later, usually with added interest, which is the cost of borrowing.
Federal vs. Private Loans
There are two main types of student loans: federal and private. Federal loans are offered by the government and usually have more flexible repayment options, along with benefits like forgiveness programs or deferred payments if you’re struggling to pay. Private loans, on the other hand, come from banks or other financial institutions. They might help cover expenses federal loans don't, but they often have strict credit requirements and fewer borrower protections.
How Student Loans Work
When you take out a student loan, you agree to repay the borrowed amount over time, plus interest. Interest is calculated as a percentage of the loan amount and adds to the total you owe. Repayment typically starts after you graduate or leave school, though some loans require payments while you're still in college. Federal loans often give you a grace period—usually six months after graduation—before payments begin.
Why Understanding Loan Terms Matters
Before you sign for a loan, it’s critical to understand the terms. Things like interest rates, repayment options, and any fees can significantly affect how much you’ll repay over time. Knowing what you're agreeing to helps you borrow wisely, avoid surprises, and stay on track financially as you pursue your education and career goals.
2. Preparing Your Necessary Documents Before Applying
Before you apply for student loans, it’s important to gather all the necessary documents to make the process smooth and efficient. Here’s a checklist to help you get started:
- Social Security Number – This is required to verify your identity and match your records across government and loan systems. If you don’t have a social security number, you’ll likely need a US-based cosigner who will have one.
- Bank Statements – These provide a snapshot of your current financial situation, which may be considered during the application process.
- FSA ID (for federal loans) – This is your login for filling out the Free Application for Federal Student Aid (FAFSA®). It’s essential for submitting your application, accessing loan information, and signing documents electronically.
These documents are important because they ensure your loan application is accurate and complete. Missing or incorrect information could delay your approval or result in errors in your financial aid package.
Researching Loan Options
Once you’ve prepared your documents, the next step is to research the types of loans available to you. Understanding all your options can help you make informed decisions and avoid unnecessary debt.
Federal Loans
Federal student loans are often the best first choice because of their benefits, which include fixed interest rates and more flexible repayment options. Here are the main types:
- Direct Subsidized Loans – These are need-based loans where the government pays your interest while you’re enrolled in school at least half-time, during your grace period, and any periods of authorized deferment.
- Direct Unsubsidized Loans – Available to most students, these loans accrue interest from the moment they’re disbursed.
- Direct PLUS Loans – These loans are for parents and graduate students who need more funds after reaching other loan limits.
Federal loans also offer protections like income-driven repayment plans and loan forgiveness programs, making them a more affordable option for many students.
Private Loans
Private student loans, offered by banks and other financial institutions, can fill gaps in funding when federal loans aren’t enough. However, they work differently from federal loans:
- How They Differ – Private loans often come with credit requirements, variable terms, and fewer protections, like repayment flexibility or forgiveness options.
- When They Might Be Worth Considering – If you’ve maxed out federal loans and still need additional funding, private loans can help fill the gap. They may offer competitive rates for borrowers with excellent credit or a co-signer.
- How to Find Reliable Lenders – It’s essential to compare lenders by looking at interest rates, repayment terms, and reviews. Websites like Edvisors and tools that compare private loan options side by side can help you choose a trustworthy lender.
By taking the time to research and compare loan options, you’ll be better equipped to minimize debt and set yourself up for financial success in college and beyond.
3. Applying for Student Loans
Federal Loans
When it comes to paying for college, federal student loans are the best place to start. To unlock these funds, you’ll need to complete the Free Application for Federal Student Aid (FAFSA®). This form is important because it determines your eligibility for not only federal loans but also grants, work-study opportunities, and even some state or school-specific aid.
Federal loans come with borrower-friendly benefits such as fixed interest rates, flexible repayment options, and loan forgiveness opportunities. That’s why it’s essential to apply for federal loans before considering any other type of loan.
Key Deadlines and Why Submitting Early Matters
The FAFSA becomes available every year on October 1, and it’s critical to check the specific deadline for your state and the schools you’re applying to. Many schools and programs award aid on a first-come, first-served basis, so submitting your FAFSA early can increase your chances of receiving the most aid possible.
Step-by-Step Guide to Filling out the FAFSA
Filling out the FAFSA might seem intimidating, but it’s easier when you break it down into steps:
- Create Your FSA ID – This is your personal login for federal aid systems. Both you and your parent (if you’re a dependent student) or spouse (if you’re married) will need an FSA ID. You can create one at StudentAid.gov/
- Gather Your Documentation – You’ll need important documents, such as Social Security numbers, W-2 forms, and bank statements for yourself and your parents.
- Submit the FAFSA Online – Complete and submit the FAFSA online at StudentAid.gov. Double-check your information before you hit submit to avoid delays.
- Review and Accept Your Financial Aid Package – Once your application is processed, your school will send you a financial aid offer detailing the loans, grants, and work-study programs you’re eligible for. Carefully read through it and accept the aid you need to cover your costs.
Private Loans
If federal loans, scholarships, and grants don’t fully cover your expenses, private loans can help fill the gap. However, they come with different rules and responsibilities, so it’s important to approach them carefully.
How to Apply with Private Lenders
Start by researching lenders that specialize in private student loans. Many lenders allow you to prequalify or a soft credit check for a loan to see your potential rates without affecting your credit score. When you’re ready to apply, you’ll need to provide documentation like proof of income, school enrollment details, and possibly the credit information for a co-signer.
Compare Private Student Loan Lenders
Edvisors (Edvisors Network, Inc.
) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans.
- Check your eligibility in just 2 minutes
- No fees for origination, disbursement, prepayment, or late payment3
- Skip a payment once per year (once repayment period restarted)4
This information is for graduate and undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.72% APR to 16.74% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.24% APR to 17.10% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
1You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
2Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
3Earnest does not charge fees for origination, late payments, or prepayments. Florida Stamp Tax: For Florida
residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.
4Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
The information provided on this page is updated as of 02/19/2025. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107.
Earnest loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770) One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
© 2025 Earnest LLC. All rights reserved.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
- Choose the #1 Private Student Loan Lender in the Nation. Sallie Mae is trusted by more families than any other private student loan lender.
- Applying online is easy - you could receive a credit result in about 10 minutes.2
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.
Explore federal loans and compare to make sure you understand the terms and features. Private student loans that have variable rates can go up over the life of the loan. Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income -based repayment and income-contingent repayment plans, and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to students regardless of income.
Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend 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. Requested loan amount must be at least $1,000.
1Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest 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. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount 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.
2Although 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.
3Based on a comparison of the percentage of students who were approved for any Sallie Mae loan with a cosigner to the percentage of students who were approved without a cosigner from October 1, 2023 to September 30, 2024.
4For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request 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 05/16/2025.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.
© 2025 Sallie Mae Bank. Sallie Mae 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.
SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. W646400 0325
- Competitive APRs starting at 3.47%1
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum) 2
- Apply online in 3 minutes and get an instant credit decision
College Ave's student loan 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.
1All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
2As certified by your school and less any other financial aid you might receive. Minimum $1,000.
3This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 03/03/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
- Get your rate in about 2 minutes4
- 4x more likely to be approved by applying with a qualified cosigner5
- No Application or Origination Fees
1Student Loan Rate Disclosure: Variable interest rates range from 4.99% - 15.60% (4.99% - 15.61% APR). Fixed interest rates range from 3.99% - 15.60% (3.99% - 15.61% APR).
2Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
3Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: personal checking, personal savings, personal credit card or previous student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DC, DE, FL, MA, MD, MI, NH, NJ, NY, OH, PA, RI, VA, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
4Get My Rate: Selecting “Get My Rate” only requires a "soft credit pull" which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report.
5Citizens Undergraduate Booked Loans from 10/1/2023 through 9/30/2024 were 4 times more likely to be approved with a qualified cosigner.
6Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, you must continue to meet eligibility criteria to obtain additional funds under the Multi-Year Approval feature. Terms and conditions are outlined in the promissory note. Multi-Year Approval borrowers have a 99% approval rate on future requests for additional funds. The additional funds approval rate is based on the percentage of approved Multi-Year borrowers from Citizens between October 1, 2023 and October 1, 2024. The approval rate represents only borrowers who had previously accepted the Multi-Year Approval offer. Please Note: International students are not eligible for Multi-Year Approval.
Information advertised valid as of 05/01/25. Rates and offer subject to change. All accounts, loans and services subject to individual approval.
© 2025 Citizens Financial Group, Inc. All rights reserved. Citizens is a brand name of Citizens Bank, N.A. Member FDIC
- AFFORDABLE fixed rates starting at 3.44% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- COVER UP TO 100% of your tuition and eligible living expenses.
* Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 5/1/2025 and reflect an Automatic Payment Discount of 0.25% for credit-based college student loans and 1.00% discount on outcomes-based loans when you enroll in automatic payments. The Full P&I (Immediate) Repayment option is only available for college loans (except for outcomes-based loans) originated on or after June 3, 2024. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school, and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. The AscentUP platform is only available to eligible Ascent borrowers and subject to terms and conditions.
The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
Tips for Finding a Co-Signer
If you’re a student without an established credit history, having a co-signer—often a parent or guardian—can improve your chances of approval and help you secure a better interest rate. Choose someone with good credit and make sure they understand that they’ll be equally responsible for repaying the loan if you can’t.
Common Mistakes to Avoid When Applying
- Borrowing Too Much – Only borrow what you need to cover the costs of your education. Unnecessary debt can be a burden after graduation.
- Ignoring the Fine Print – Pay close attention to interest rates, repayment terms, and whether your rate is fixed or variable.
- Skipping Comparisons – Don’t settle for the first offer you receive. Use comparison tools to find lenders that provide the best terms for your situation.
By taking a thoughtful approach and staying informed, you can manage your student loans wisely and set yourself up for long-term financial success.
