How to Apply for Student Loans

College is extremely expensive, but student loans can help you pay for the cost of school, living expenses, and books. Here are some tips for how to apply for loans:

Difficulty:

Moderately Challenging

Instructions

1. Fill out the FAFSA. This can be done as soon as you file your tax returns and is a key component of many financial aid decisions, as well as all federal student loans. Your college or university will then determine what loans you are eligible for and send you a financial aid package.

2. Accept or deny the loans. Generally, it is best not to take loans if you do not need to, but federal loans are the best to take. They have the lowest interest rates and the best repayment policies.

3. Take the requires entrance counseling through a link provided on your student financial aid service's website. This is a 10-30 minute process which is required for you to get the loan.

4. If you need more money to cover rent, books, or transportation, consider taking out a living expense loan, or a PLUS loan. These are government subsidized loans that can be used to help you manage your expenses. Below is a link with more information about how to apply.

Tips & Warnings

• Apply early, it can take few weeks for aid to be dispersed

• Do not take out more money than you need. You will have to pay it all back-- with interest!

• Avoid private loans. They have high interest rates and bad repayment terms.

Resources

• FAFSA form
• How to Apply of a Living Expense Student Loan