College Student Loan

By: EconomyWatch Content   Date: 24 November 2009

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A college education opens up opportunities for a person. However, it involves huge expenses. Most students have limited financial resources to pursue their dream college education. A college student loan can help a person in this circumstance. One should aim for subsidized federal student loans, since they come with the lowest interest rates and a flexible repayment schedule.

Getting a College Student Loan – Things to Consider

For a federal college student loan, you need to submit your FAFSA (Free Application for Federal Student Aid). FAFSA also helps you to get grants and scholarships. Most schools set priority dates for FAFSA and a call to your financial aid office will help you in the application process. You should fill in details about your parents. If you are in armed forces, in graduate school, married or more than 24 years old, you need not enter your parents’ details.

Stay In Touch With the Financial Aid Office: Once you have submitted the FAFSA online, call your financial aid office to enquire how long it would take to get the approval of the college student loan and the award letter. You may need to fill other forms unique to the school you are applying to. It is better to be in touch with the financial aid office till you get the award letter to ensure a smooth process.

Designate the Lender: Calculate the cost of education including tuition fee, other fees, books and other related expenses. You may include your living expenses. You need to choose the bank or the financial institution that would offer you the money associated with the college student loan. This process varies from school to school. While some schools will ask you to designate the lender as soon as you fill the FAFSA, others will ask you after the award of the loan.

Once the college student loan is awarded, accept it and send a promissory note to your school. In the promissory note, you will be promising to pay back the loan. Usually, federal loans are disbursed to your school, which will deduct the tuition fees and other charges. The school will disburse the remaining money to you.


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