Useful Tips About a Student Loan Application

Since there are not many people who can finance a college education without some sort of financial assistance, at some point most students will have to fill out at least one student loan application. This process can be daunting, but fear of completing a student loan application is no reason to give up on higher education. Unfortunately, sometimes the easiest student loans to apply for are those with the most unfavorable terms.

For this reason, any student who is attempting to procure financial aid should become familiar with the types of loans available and the student loan application procedures that need to be followed in order to qualify for these loans.

FAFSA: The First Step in Financing an Education

The Free Application for Federal Student Aid or FAFSA is the most important scholarship and student loan application that any student must complete. It is also frequently the most complex and tedious application for students and their parents. This is because the FAFSA requires a lot of detailed financial information, including tax returns, from both students and parents. While the application requires time, this form is essential for all students. Filing a FAFSA is not only the sole method of obtaining federal funding for education including Stafford Loans, but this exhaustive form is also a prerequisite for most state and institution based loan programs. Since these types of loan programs tend to offer the most favorable terms for students, filing a FAFSA should be every student's first step in the financial aid process.

Applying for Federal Aid

Even though the FAFSA is free and can be completed online, its exhaustive nature causes too many students to give up and accept private loans with high interest rates and unfavorable repayment terms. A little preparation can help families avoid this undesirable situation, however. Anyone seeking financial aid should be sure to file a tax return as early as possible. As soon as the tax return is done, families should gather the completed return, bank statements and financial paperwork and fill out the FAFSA. Having paperwork on hand will make the process go more quickly, and early filing is crucial in ensuring eligibility for the maximum amount of aid available. It is imperative that families not only file the form before the FAFSA deadline but before the deadlines for individual school and private loan programs. A completed FAFSA is frequently required before students can even submit any other student loan application, and often these deadlines are earlier than the federal deadline.

School Based Financial Aid

Most higher education institutions have financial offices and offer many forms of financial aid and counseling to their students. While a FAFSA is usually required to qualify for school based programs, there are also additional applications to fill out. Since the deadlines for school based aid are often very early, every student should contact the financial aid office of his or her school as soon as a matriculation decision is made and obtain the necessary paperwork. This paperwork will often include a general financial aid application, applications for specific scholarships and a student loan application for any loans offered specifically by the school. These applications may require personal information in addition to the financial information required for the FAFSA.

State Loans

Many states offer specific loan programs including low-interest loans, loan forgiveness incentives and career based loans. As with school based loans, these require the completion of a FAFSA and additional application paperwork, often including an additional student loan application, but they are well worth investigating. Because they are partially funded by the state, these loans are more favorable to students than higher interest private loans. In addition, students planning on going into high demand careers or settling in certain areas may find that they qualify to have all or part of their loans forgiven once they satisfy graduation, career and residency requirements.

PLUS Loans For Parents and Graduate Students

The PLUS loan program allows parents or graduate students to borrow money to pay for a college education. The student loan application process for these loans, unlike the loans described previously, requires a modest credit check to establish the credit worthiness of the individual parent or graduate student. Some schools also require a FAFSA on file before they will certify a student's eligibility for one of these loans. Those who qualify have the advantage of obtaining a loan with a relatively low-interest rate that is guaranteed by the federal government. This type of loan is useful for families when other types of financial aid and non credit based loans are not enough to cover educational expenses

Private Student Loans

Private student loans require a credit check, but the student loan application process for them is usually simple, and no FAFSA is required. This makes sense, since these loans are offered by banks and other financial institutions who are trying to make a profit. Because of this, the ability of families to get favorable terms for thee loans is based on credit scores. The simple application process for these loans has led many students to rely exclusively on private funding and ignore all other options. While private loans are a valid avenue to use in funding an education, they should not be the first option considered. Even with great credit, after all, the terms for these loans are almost never going to be as favorable as those available with government backed loans.

The Bottom Line

The student loan application cycle can be challenging, and students need to be informed and educated loan consumers. Financially savvy families must gather records, file tax returns and fill out the FAFSA as early as they possibly can. After the FAFSA has been processed, they need to fill out school and state based financial aid paperwork, being careful to respect all deadlines.

Only after these avenues have been exhausted should they look into other loan options.

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Yes, the student loan application process can be daunting, but those who are prepared can save themselves a lot of money in the long run.

On the other hand, please also learn about bank student loans, in general government student loans can have a lower interest rate.

What You Need To Know About Applying For An International Student Loan

Before you get all excited about the thought of obtaining an international student loan so that you can attend college at some exotic university in Beijing or Paris, hang onto your laptop. There are rules and regulations when it comes to these types of loans, and they are also extremely difficult to obtain. However, for the determined and the focused, there are ways to achieve the seemingly impossible. First, know the rules and regulations, and there's a ton of them.

First, in order to obtain an international student loan, you must be enrolled, or in the process of enrolling, at a foreign university or college program that is approved by the Education Resources Institute. Log onto their website for additional information that pertains to your needs. Then, keep in mind that you must be a United States citizen in order to have your application even accepted, let alone approved. And if you thought there was a lot of paperwork for your typical neighborhood college or university, just wait until you get the packet of paperwork for this type of student loan!

A peek into what will be needed is full contact information, full financial information, and that means don't keep any secrets. Parents are likely to groan when they see what needs to be done. The approving authorities are going to want to know about your mortgage, your credit history, present and past occupations and employer information for verification purposes. They're also going to want to know your gross yearly income and references. Students will be asked to provide proof of enrollment, most likely in the form of an acceptance letter or class schedule from the school they plan on attending.

In addition, a co-signer is often asked for. They must be able to verify a credit history for at least 21 months prior to the time of application, as well as proof of citizenship or permanent resident status. They also will be required to provide proof of income as well as a two year employment history, whether they're self-employed or not. That's just the beginning, and by the time you're done filling out the necessary papers and forms, there will be no such thing as a private aspect of your life.

However, balance all that with the benefits of attending a foreign university, and you may just have gotten yourself a deal. Oh, but don't forget that credit ratings for that international student loan are going to be based on your credit history rating, and that fees will depend on how much of a loan you're asking for. Nevertheless, the look in your son or daughter's eyes when that loan is finally approved makes it all worthwhile.

When applying for such a student loan, try to fill out the initial application as soon as they become available for the school year or semester that the student is accepted for. The red tape, processing and waiting times can be excruciatingly slow, so try to get a jump on the thousands of applications that are filed every year.

What You Should Know About International Student Loans

International student loans are actually customized personal education loans that are offered to foreign students who are studying in the USA or American students studying abroad. Some of these loans are available as private rather than government loans, and almost all of these loans require an American citizen as consignee.

These education loans are a lot like other student loans available and are particularly suitable for those students seeking a higher education in the fields of engineering, medicine, science, commerce, arts or otherwise. Student loans provides tremendous financial assistance to international students who look forward to achieving their dreams through higher education abroad.

The procedures for applying for these student loans are very specific and it is imperative that students follow the guidelines to avoid delay or disapproval of their application for admission to the USA to study.

These students loans are available for international students who intend to study in the USA, provided they plan to attend an approved school and have a US Citizen or a permanent resident who can co-sign the loan together with them.

Students MUST submit a duplicate of one of several important documents: Student visa (type F1, H1B, J1, or M1).

International students have to fill out an application using an approved co-signer and should submit an application for international student education loans after exhausting all scholarship grants, personal resources along with other options.

International Student education loans, just like most personal education loans, may be used for education-related costs, which includes such things as tuition, books, fees, insurance, transportation and room and board along with other school-related costs International students may simply pay an origination charge after receipt of the loan, however, this sum is in the overall loan amount, and does not need to be paid in advance.

Students will be immediately notified if they are conditionally approved for the loan. Students studying abroad can defer repayment of their international student loans while they are enrolled full-time, and for six months after they complete their studies. Students will then have up to 20 years to repay the loan, with a payment due each month. There are a number of different international student loan programs available so students should do the research to seek out the ones that offer them the best advantage.

It is very important to remember that these loans are sanctioned on a one year basis; therefore, if the student is planning to study for more than 1 year, they will have to contact their student financial aid office to reapply for the following year.

My personal experience can attest to the benefit of student loans. My goddaughter lives in Europe and desires to study in the United States; as part of my efforts to assist her in gathering as much information as possible to obtain a student loan, I saw this as a perfect opportunity to share what I have discovered with others who might be in a similar situation.

After much research, my god-daughter is well on her way to meeting her goal; she plans to begin her studies in the U.S. in 2011; we are excited and know that she will use this great American education to give back to her country of Cameroon, Africa.

Get more details about student loans and help a student get the process started today.