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Student Loan
If you want to take a student loan, first you will need to apply for financial aid by completing the Free Application for Federal Student Aid (FAFSA). This form is used to examine your financial requirements and analyze your eligibility for Federal Student aid, inclusive of loans.
The required steps you have followed to apply for the Student loan:
Collect all the required documents
You need to require certain information handy to complete the FAFSA application process. This includes your tax documents, social security number, and information about your income and assets.
Complete the FAFSA Application Process
Complete the FAFSA Application Process
You have to create an account and fill out all the necessary details on the online portal at fafsa.gov to complete your registration process.
Review your financial aid package
Review your financial aid package
Once you complete the FAFSA application process, your educational institute sends you a financial aid package that defines the types and amount of aid for which your eligibility criteria met to receive, as this may include scholarships, loans and grants.
Accept or Decline the financial aid package
Accept or Decline the financial aid package
If you get an offer of student loan, you have to decide whether you want to accept it or reject it, but be sure to carefully read all the terms and conditions associated with the offer before taking any decision, as you take responsibility as well for repaying the loan amount with interest.
Complete loan counseling session
Complete loan counseling session
If you accept the offered loan, you may be required to complete the counseling session on loan to comprehend the terms and conditions of getting a loan. The session may be virtual (Online mode) or in person, depending on your institute's requirements and feasibility.
Important types of Student Loans
The three important types of student loans are as follows:
Private Student Loan
These loans are not backed by the federal government. Hence, the loans are provided by credit unions, banks and other financial institutions. As a result, this may charge a higher interest rate along with limited repayment options than government-backed loans.
Parent PLUS
These loans are backed by the federal government and have a fixed interest rate as these loans are taken by the parents on their dependent non-graduate children to pay for their education.
Federal Student Loans
Important types of Student Loans
The three important types of student loans are as follows:
Private Student Loan
These loans are not backed by the federal government. Hence, the loans are provided by credit unions, banks and other financial institutions. As a result, this may charge a higher interest rate along with limited repayment options than government-backed loans.
Parent PLUS
These loans are backed by the federal government and have a fixed interest rate as these loans are taken by the parents on their dependent non-graduate children to pay for their education.
Federal Student Loans
The purpose of these loans is to cover the higher education cost of the eligible students as these loans are funded by the government. These loans include Direct Unsubsidized Loans, Direct Subsidized Loans and Direct PLUS Loans.
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