How To Apply for Student Loans

If you need to borrow money for college and apply for student loans, you’re not alone. Nearly half of undergraduate students took out student loans in the 2024-25 school year, according to Sallie Mae’s “How America Pays for College” report.

In general, it's best to start with federal student loans before considering private loans. Federal loans typically offer more flexible repayment options, and interest rates are the same for everyone, regardless of your credit. However, federal loans may not cover your full cost of attendance. If you still have a gap, private student loans can help, but the application process works differently.

Here's how to apply for federal and private student loans, when to apply, and what you’ll need to qualify.

Compare private student loan rates

How to apply for federal student loans

Start with federal student loans if you need to borrow for college. Federal loans come with advantages that include lower interest rates, flexible repayment terms, and the opportunity for student loan forgiveness. And for most federal student loans, you won’t need a credit check.

Follow these steps for applying for federal student loans:

1. Know your federal loan options

One of the first steps to getting a federal student loan is to know which types of loans are available to you. The U.S. Department of Education offers three main types of federal loans:

• Direct Subsidized Loans: This type of loan is available to undergraduate students and is 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.
• Parent PLUS loans: These loans are available to parents of dependent undergraduates to help cover education costs after other financial aid has been applied. They are the only federal loans that require a credit check. It looks for adverse credit events, such as bankruptcy or foreclosure, rather than a specific credit score.

Each federal loan type has annual and lifetime borrowing limits that vary based on factors like your year in school, dependency status, and whether you're an undergraduate or graduate student.

2. Prepare any documents and information you might need

Before you begin a student loan application, 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 from the last two years
• Any gift aid received, like scholarships or grants

You may need other information for your loan application, depending on your situation. Just make sure you have all your important financial papers and information before moving on to the next step.

3. Fill out the FAFSA

Complete the Free Application for Federal Student Aid (FAFSA) for the academic year you need funding. You’ll need to submit a new application each year you want to receive federal student aid.

Applying as early as possible can help you qualify for more aid, especially for state-based aid and school-specific financial aid programs with limited funding. 

In addition to the federal FAFSA deadline, many states and colleges have their own deadlines. Contact your school’s financial aid office to confirm the deadlines that apply to you. FAFSA federal deadlines are listed below:

4. Review your Student Aid Report

Next, you’ll 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, 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)”

You’ll typically 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 types of financial aid you’re eligible for, and how much.

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. Here’s how:

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, your first report will typically cost $25, and each additional report will cost $16.

6. Review your financial aid award letter

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

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 disbursed, 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.

Contact the financial aid office of the school you’re going to attend to get the exact details of what you need to do to get your funds.

How to apply for private student loans

If federal loans don’t cover all your college expenses, you might need to fill in the gaps with private student loans. To apply for a private student loan, follow these steps:

1. Compare rates from multiple lenders

Before you start, it’s important to compare rates from multiple lenders so that you’re confident you’re finding the right loan for your situation. Look at the interest rate, repayment options, fees, and any borrower benefits. You can prequalify with multiple lenders to see your estimated rate. Tools like Credible make it easy to view side-by-side loan offers in one place, without affecting your credit score. 

2. Consider a cosigner

Even if you have little credit history or poor 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.

3. Submit an application online

Once you choose a lender, apply for the student loan by completing the loan application online. Be ready to provide documents like a government-issued ID, income or tax information, and your school details. After your application is reviewed and approved, you’ll sign the loan agreement, and the lender will work with your school to certify the loan amount.

When to apply for a student loan

It’s a good idea to apply for student loans as soon as you know you’ll need to borrow money for college.

Applying early can help you avoid missing tuition bill deadlines. And, for federal student loans, completing the FAFSA earlier could increase your odds of getting all the aid available to you. Some colleges have priority deadlines that can lead to getting the most aid, so check with your school’s financial aid office for its specific deadline.

You can apply for private student loans at any time, but keep in mind the application, approval, and school certification process can take several weeks.

Learn More: When To Apply for Student Loans

What happens after you apply for student loans? 

Private lenders and the Department of Education will send student loan funds directly to your school to apply toward your on-campus costs, like tuition and room and board. The school will then disburse any remaining funds to you for other educational expenses, such as books, supplies, and transportation. 

The full process can take anywhere from a few weeks to a few months, depending on the lender, your school’s certification process, and the scheduled disbursement date. 

Federal vs. private student loans

Because federal student loans tend to have lower interest rates than private student loans and come with borrower benefits, it’s a good idea to exhaust federal loan options before pursuing private student loans. Here’s a quick comparison between federal and private student loans:

Jamie Young contributed to the reporting for this article.