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How to Apply for Federal and Private Student Loans

To apply for student loans, first fill out the FAFSA. Then the steps you take depend on whether you’re taking out federal or private loans.

Jamie Young Jamie Young Edited by Ashley Harrison Updated October 7, 2021

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

When it comes to student loans, remember you don’t always have to borrow. But if you need to, you should start with federal student loans, then turn to private loans to fill the gaps.

You might already know how much you’ll need from your financial aid letter, but understanding what your options are can help put your mind at ease.

Here’s how to apply for student loans:

  • How to apply for federal student loans
  • How to apply for private student loans

How to apply for federal student loans

1. Know your federal loan options

One of the first steps to take to secure a student loan is to know which type of loans are available to you.

  • Direct subsidized loans: This type of direct loan is available to undergraduate students and awarded based on financial need.
  • Direct unsubsidized loans: These loans are available to undergrads and grad students. They don’t require proof of financial need.
  • Direct PLUS loans: These loans are available to parents of undergrads as well as graduate or professional students. The borrower’s credit history is considered for a PLUS loan. Just keep in mind PLUS loans can have higher interest rates, so be sure to compare private student loans first, so that you can pick the best one for your situation.

Before borrowing, make sure you do your research and understand the limits on student loans.

2. Prepare any documents and information you might need

Before you actually apply for student loans, you’ll need to have some basic information handy. Here are some documents and information you should prepare to have for the Free Application for Federal Student Aid (FAFSA):

  • Social Security number
  • Birthdate
  • Current address (for student and parents)
  • List of all the schools you’re considering attending, including the school’s information like name, address, phone number, and your major
  • Tax returns and other tax information for your parents (or yourself if you’re independent — though that’s hard to qualify for)
  • Other income information like child support or any other assets like businesses or investments
  • Adjusted gross income (AGI) from the last two years
  • Any gift aid received like scholarships or grants

There might be other information needed for your loan application process, depending on your situation. But just make sure you have all of your important financial papers and information before moving onto the next step.

3. Fill out the FAFSA

Every student borrower should fill out the Free Application for Federal Student Aid (FAFSA). Even if you don’t think you’ll be eligible for most federal financial aid, you might be surprised to find that you are eligible for reward money or federal loans.

Even if you are not eligible for scholarships or loans due to financial need, you still might be offered a direct unsubsidized loan through your school. It is important to fill out the application as early as possible to maximize your funding. Also, try talking with your school’s financial aid department for a better idea on what type of loans you are eligible for.

4. Review your Student Aid Report

Next, you’ll want to review your Student Aid Report (SAR). If you provided an email address when you filled out your FAFSA, you should automatically be emailed a copy of this report. If not, just follow these steps to view it online or print a copy:

  1. Go to FAFSA.gov
  2. Click “Log In”
  3. Enter your FSA ID
  4. Go to the “My FAFSA” page
  5. Click “View or Print Your Student Aid Report (SAR)“

Typically, you’ll be able to access your SAR within two weeks of submitting the FAFSA. Your SAR will be sent to the schools you listed on your FAFSA. They’ll use this information to decide which type of and how much financial aid you’re eligible for.

5. Fill out a CollegeBoard CSS profile

To find out if you’re eligible for institutional aid, you should apply on CollegeBoard’s CSS Profile page. To do so:

  1. Sign up for a CollegeBoard account
  2. Go to CSSProfile.org and sign in with your CollegeBoard credentials
  3. Select “Begin New Profile”
  4. Select the schools you wish to apply to
  5. Provide any other information the form asks for

Finish filling out the CSS Profile and submit your application. Though the fees can be waived in certain situations, typically your first report will cost $25 and each additional report will cost $16.

6. Review your financial aid letter

After receiving your FAFSA, any schools you’ve applied and are accepted to will send you a financial aid award letter. Make sure to thoroughly review the letter so you know how much financial aid you’re eligible to receive.

The letter typically includes your total cost of attendance, Expected Family Contribution (EFC), and the loans and other aid you qualify for. Your net cost will be the total cost of attendance, minus whatever gift aid you qualify for.

See More: Tips on Comparing Financial Aid Award Letters

7. Talk to your financial aid office and accept your financial aid offer

You’ll need to check in with your financial aid office and accept your offer for aid.

Although each school might be different, before your loan funds are dispersed, you’ll typically be required to complete entrance counseling and sign a Master Promissory Note. This is a document stating the terms of your loan and your obligation to repay it.

But be sure to check in with the school’s financial aid office (at the school you’re going to attend) to get the exact details of what you need to do to get your funds.

Learn more:

  • 9 Things You Should Have Learned About Your Student Loans
  • Fed Loan Rates for ‘21-22 School Year: What You Should Know

How to apply for private student loans

If federal loans don’t cover all of your college needs, then you might need to fill in the gaps with private student loans. Make sure you have any documentation you might need and you’re ready to explore your private loan options.

1. Compare rates from multiple lenders

Before you start, it’s important to compare rates from multiple lenders, so you’re confident you’re finding the right loan for your situation. Though you should always take advantage of federal loans first, once it comes to PLUS loans, rates on private student loans can be even more competitive.

Here’s a quick comparison between federal and private loan rates:

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Comparing private student loan rates with Credible is super simple. You can fill out just one simple form and it only takes two minutes. Plus, we use a soft credit check that doesn’t affect your credit.

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2. Consider a cosigner

Even if you have excellent credit, you might not qualify for a private student loan without a cosigner. If you do qualify, having a cosigner can greatly increase your chances for acceptance and even get you a lower interest rate which could save you money. Nearly 94% of all private student loans are taken out with a cosigner.

Credible makes it easy to compare rates from multiple student loan lenders with or without a cosigner. You can fill out just one simple form and it only takes two minutes.

See if having a cosigner is right for you
Credible makes it easy to find the right student loan for you — with or without a cosigner.

  • Multiple lenders compete to get you the best rate
  • Get actual rates, not estimated ones
  • Finance almost any degree

Compare Your Rates
Checking rates will not affect your credit

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Don’t borrow more than you need

Knowing how to apply for student loans can help you get the funding you need for your degree. But always remember to be smart about your student loans — understand all of the terms and expectations before borrowing and don’t borrow more than you absolutely need.

If you need some more ideas on affording school, check out some of the best ways to pay for college.

Find out: Test Your Knowledge of Student Loan Interest Rates

About the author
Jamie Young
Jamie Young

Jamie Young is an authority on personal finance. Her work has been featured by Time, Business Insider, Huffington Post, Forbes, CBS News, and more.

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Home » All » Student Loans » How to Apply for Federal and Private Student Loans

Student Loan Basics


  • How to Qualify for a Student Loan
  • When to Apply for a Student Loan
  • How to Apply for Student Loans
  • How to Apply for FAFSA

Choosing a Student Loan

  • Types of Student Loans
  • Federal vs. Private Student Loans
  • Subsidized vs. Unsubsidized Loans
  • Parent Plus Loans vs. Private Student Loans

Tools and Resources

  • Find a Private Student Loan
  • Best Private Student Loans
  • Average Cost of College
  • Current Student Loan Rates
  • Find a Student Loan Cosigner
  • Lender Reviews
  • Student Loan Calculator

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