Student Loan Application

By: EconomyWatch Content   Date: 1 December 2009

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Completing a student loan application at the earliest increases the probability of obtaining a larger financial aid. Avoid waiting until the priority deadline for completion of a student loan application, particularly when applying for a federal student loan. This is because the federal loan funds are limited, which are often granted to financially weak students on first-come-first-serve basis.

FAFSA Student Loan Application Procedure

Completing a FAFSA (Free Application for Federal Student Aid) form is the first step for obtaining a federal financial aid, which includes:

  • Stafford Loan

  • Perkins Loan

  • PLUS Loans

A FAFSA form may be obtained from the college/university financial aid office or downloaded from the US Department of Education’s official site for FAFSA application, at fafsa.edu.gov.

While filing a student loan application, it is a student and his/her parent’s liability to ensure that all information furnished in the FAFSA form is accurate. Besides, the information furnished by an applicant is duly verified by the Department of Education.

For verification purposes, an applicant is requested to submit additional documentation, including:

  • Dependency status worksheet, for judging whether the student is independent.

  • Student’s income worksheet, for determining the student’s financial health.

  • Parent’s income tax returns documents, for ascertaining the parents’ repayment capacity.

  • A parent’s income related evidence is generally requested for PLUS Loans for parents or when the student is a dependant.

The FAFSA form is processed chiefly to determine the Expected Family Contribution (EFC) of the applicant. It should be remembered that a financial aid awarded on the basis of incorrect information has to be repaid, when identified, with applicable fees and fines. Providing false and/or misleading information on the FAFSA student loan application deliberately can also lead to imprisonment.

After submitting a FAFSA student loan application, it is important to check its status online periodically, ideally after two weeks of the submission. Approved forms are sent to maximum ten colleges/universities chosen by the applicant. The colleges determine the eligibility individually and award the financial aid.

Once a student loan application has been authenticated by the Department of Education and approved by a college, the applicant can appear for entrance counseling which is conducted by an official of the department. Further, terms and conditions of the loan are explained during this session.


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