How do you know when to apply for a student loan, how much to borrow, or which loan to apply for first? Get the answers you need in these four basic steps.
Your child must complete the following before starting the loan process:
- Submit the Free Application for Federal Student Aid (FAFSA).
- Review the financial aid award letter from your child's school. Inform the school in writing what financial aid you plan to accept. If you selected a student loan, your child is responsible for applying for the loan.
Now your child is ready to apply for student loans.
- Apply for a Federal Stafford Loan.
If the award letter includes a Stafford Loan, it may be possible to apply online. Stafford Loan amounts are based on information provided on the FAFSA and stated in the award letter.
Stafford Loans offer the best interest rates and make $2,625 available to most college freshmen (undergraduates can borrow between $2,625 and $10,500 annually, depending on student status). No credit check is required; however, two references are mandatory. The first reference should be a parent or legal guardian.
- Finish with a Signature Student Loan® by Sallie Mae.
Apply for a Signature Student Loan if additional money to pay for school is needed, or if your child isn't eligible for a Federal Stafford Loan. It's possible for your child to borrow up to the full cost of their education, less any federal loans and other financial aid already received. Decide now, how much of the college bill your child will cover.
It's advantageous for your child to apply with a co-borrower because it will lower the interest rate and disbursement fee.
Both you and your child sign this application form.
Apply now.
NOTE: Not all schools take part in our online loan process. If your child's school does not participate, please contact the school's financial aid office. |
