the staff of the Ridgewood blog
Ridgewood NJ, You’ve just cleared high school and are looking into joining college. You’ve be told about taking a student loan, and since your parents credit is incredibly awful, your only option is to take it in your name.
So you did what lots of other students do when looking out for a loan – visit the government student loan site. But since the site doesn’t break the process into simple, easy-to-understand chunks, you end up getting confused. In which case, you found it hard understanding the terms used, the kind of loans being offered and how best you can access them or if there’s some other place you should visit to get the loan.
Well, don’t fret – this post covers all the possible ways you can access a student loan.
Look at the Possibility of Going to School without a Student Loan
A student loan is NOT free money, but a loan you’ll be required to pay after you graduate—and with an interest of course. So if there’s remotely a chance that you can still foot your school fees and your upkeep without relying on loans, then go for it.
For US based students, you have the option to access Pell Grant through FAFSA. Read this bearing in mind that grants don’t require you to pay back.
Also try looking at the possibility of securing a scholarship or securing a part time job to help you out.
Lastly, you might want to settle for a school with the lowest tuition fee. Do this and some time in future when your friends and family will be struggling with repaying their student loans, you’ll be looking back and thanking yourself for the decision you made.
But if you really must take a loan, here are a number of ways to apply for them:
Applying for a Private Student or Federal Loan
The application process to follow will vary depending on the type of student loan you wish to apply
Application Process for Federal Student Loan
To apply for a federal loan, you have to start by filling out the Free Application for Student Aid (FASFA) form. This form can be downloaded at FAFSA.gov. Once filled, the form should be sent back to FASFA for evaluation.
Here’s a number of things to keep in mind while filling out the form:
- Filling the form is absolutely free. You’ll NOT be charged for downloading and submitting the form.
- You’ll be required to complete a FASFA form every year you apply for a loan.
- Make a point to get the form as early as possible (starting from October 1st) to increase the chances of getting the loan.
Application Process for a Private Student Loan
Private student loans are mostly offered by banks, financial institutions, or a Mammoth Investor. Which is to say, you’ll be applying for it directly to the lender.
Instructions on how to apply for the loan:
- Start by visiting the bank’s site and learn more about the loan. Check out for their interest rates, their repayment options and the highlighted benefits associated with the loan.
- If satisfied, go ahead and fill out the application form. The instruction to follow should be provided on site, so no need to worry on how to go about it.
You’ll also be required to choose a repayment option that best suits you and the type of interest you’re most comfortable with.
- You may be asked to include a cosigner. Don’t hesitate to add one as this increases your chances of being awarded the loan.
- Lastly, the lender will go ahead and check your credit score and later on getting back to you with the decision they’d have made.
Getting a loan shouldn’t be that much of a tough task. If anything, there exist several avenues to access one. So if one fails, just knuckle up and check out for the next available option.