Student Loan Applications

2007-10-15 12:53:47

( Financial )



A college education is quite expensive, and many people don't have their own financial resources to afford it. The only way to survive the high expenses of college is to apply for a student loan.

Student loan applications are not processed in the same way as mortgage applications. You need to complete a lot of documentation to get your loan approved. Procedures also differ among the types of student loans. Government-financed student loans usually involve more paperwork than loans coming from private institutions.

General Characteristics of Student Loans

Whether federally or privately sourced, student loans have certain attractive features such as low interest rates and reasonable payment options. In case you are not able to repay the loan during a certain period, you can also choose to defer the payments to a later date. Your lender then adjusts the amount of amortizations you will need to pay once the extension period is over.

The amount of loan you can borrow depends largely on what the federal government determines as your part in shouldering educational expenses.

General Procedures for Student Loan Applications

First, you need to submit a free application for financial aid or FAFSA to your school. In this form, you give detailed information about your family's sources of income and how much you can actually afford to pay as your contribution. The school can provide you with information about projected costs for matriculation, books, lodging and incidental expenses.

You can also try applying for financial aid at the school. The school will send you an award letter indicating the amount of financial aid, and also a loan application form. You need to fill out the application form and submit it to the school. Upon reviewing your FAFSA, the government will determine the amount that is your expected family contribution.

You may also want to apply for any financial aid at your school. The school will send you an awards letter indicating your scholarship or grant eligibility.

If you feel that the total financial aid and federal loan amounts are still inadequate, you can also apply for supplemental loans under a private lender.

After the loan has been disbursed to your school, you will be notified on when to start your repayments.

Tips for Student Loan Applications

Be realistic about the information you fill in the FAFSA and student loan applications, especially concerning your income level and the estimated tuition and other school expenses. Any false information will cause disqualification of student loan applications.

Always be prompt in completing all requirements, to ensure that you will receive your loan proceeds on time.


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