How to apply for student Loans
How to apply for student Loans -
Higher studies call for investments - While some students breeze past with grants or scholarships, most have to rely on student loans from a variety of sources - Student loans need to be repaid with interest and it is important to do a careful analysis to make smart decisions.
You can broadly classify student loans under two categories, ‘need based loans’ such as federal loans and ‘credit based loans’ that would involve banks.
Applying for Federal Loan
Applying for a student loan is not as difficult as it is made out to be, provided the applicant follows the process and the instructions systematically. The process has been worked out with a lot of thought keeping the ease of the applicant in mind. However, if it’s taken for granted and if the step by step methods are not adhered to, it can be pretty daunting and confusing leading to much distress. Hence the key to a successful application of a student loan will be a clear mind and timely fulfillment of compliance.
The FAFSA Application
It’s important to remember that loans are not just handouts but are lent or furnished on condition of being returned. If the applicants were to view this entire loan application document from the lender’s point of view, it would seem a lot more meaningful and easy to fill in. Its simple, the federal loan application is available online, and you can:
At Fafsa.ed.gov :
Apply for the Personal Identification Number (PIN), as this allows you to create a virtual account.
Download the online version, print it and send it as hard copy after filling it
You can also opt to file with the online version (most applicants prefer this)
There is assistance available for students/parents to fill in the forms. The thrill of beating the submission deadlines can boost the applicant’s confidence and chances. Millions fall by the wayside by sheer procrastination.
Applying for Alternative Student Loan
So you may or may not have applied for or availed the ‘need based’ federal loan, yet you have the option of going in for the ‘credit based’ alternative route. For this you need to go to your bank or a student loan lender directly and borrow money. You still have to fill in a loan application form, based on which a credit check will be done. It’s advisable to get a co-signer, a person who has good credit standing and who is willing to sign a promissory note for you. Get the lender to offer you a co-signer release as you push up your own credit rating with on time payments.
It’s important to remember that private loans may be a lot simpler to avail, but federal loans are often cheaper. A smart strategy would be to strike a balance between the two, in order to get the optimum benefits with regard to low rates and flexibility.
Compare private student loans at www.istudentloan.com
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