There are a few key steps when applying for student loans, and the time it takes to receive the funds can vary based on the type of loan. When applying for federal loans, follow these steps:
Complete the FAFSA. The Free Application for Federal Student Aid, or FAFSA, is the first step since it determines your eligibility for federal loans. You need to complete it every year to qualify for federal aid.
Review Your Aid Offer. After processing your FAFSA, your school will send you a financial aid offer, which may include federal loans. This often happens a few weeks to months after submission, depending on the school and when you apply.
Accept the Loan. Decide how much you want to borrow and accept the loan through your school's financial aid office.
Applying for private student loans requires a slightly different approach. Here are the necessary steps:
Choose a Lender. Shop around to find the best terms, then choose the lender that best suits your situation.
Apply Directly. Apply directly through the lender, which typically involves a credit check and income review.
Certification by School. The lender will contact your school to certify your eligibility and the loan amount.
The disbursement of student loan money generally coincides with the start of the semester, but it can take several weeks from the time you accept the loan offer. That's why it is important to apply early to ensure that funds are available and sent to the school when you need them.