When Do You Apply for Student Loans?
Student loans provide the funds many students need to close the gap between scholarships, grants and savings and tuition. Applying for student loans can be a last-resort choice for education funding, but it is important for students to pay attention to financial aid deadlines to ensure the funds arrive on time to pay tuition bills for the next school year. Unfortunately, many students who are eligible for federal financial aid miss the deadline and miss out on grants and federal loans. Knowing when to apply for student loans can ensure you don't miss out on the funds you need.
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Loans, Scholarships and Grants
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If you know you are going to need student loans to help you pay your tuition, or you think you may need them, it is wise to apply for them while you apply for scholarships. They should, however, be your last choice after scholarships and grants to pay for college, as student loans will need to be repaid--typically with interest--while scholarships and grants are free money. With a loan, as with scholarships and grants, it is a good idea to try to turn in your loan application the semester before you plan to begin college.
Government Loans
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When you fill out the Free Application for Federal Student Aid (FAFSA), you are applying for both federal grants and federal student loans. Federal loans have some of the lowest interest rates around, so it is important to use as many federal loans as possible instead of higher-interest-rate private loans.
Each school year has a different federal deadline for submitting the FAFSA. It is a good idea to submit it as soon after January 31 as possible as that is the date by which your tax information should begin to come in. You will have to fill out your taxes for the previous year to complete the FAFSA. Your state may also have student loan opportunities with low interest rates. Contact your state's department of education for more information.
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FAFSA Deadlines
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Each state also has a FAFSA deadline, and your colleges also will have their own deadlines. Ask the colleges to which you plan to apply if the deadline for the FAFSA they set is for the date they have to receive your FAFSA information or the date the FAFSA is processed.
Private Loans
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If you do not get enough money to pay for your tuition from scholarships, grants or government student loans, you can apply for private loans. Private student loans are given based on credit scores, and they come with higher fees and interest rates. Many private loans have quick turnaround times, making them a last resort if you need cash fast before the next semester starts.
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