Student Loan Application – Factors to Help You with a Smooth Procedure

Caffeine is not only thing that will help you through college education. You will need funds to finance your studies as well. Student loans are an unavoidable part of the college experience that approximately 70% of graduates end up with. There are basically two types of student loans you can apply for.

  1. Federal Loans
  2. Private loans

Federal Loans

These loans are issued by the federal government and nearly every student who has a high school diploma is an eligible candidate. Federal loans can be further categorized into three types:

  • Direct loans
  • Direct PLUS loans
  • Perkins loans

Private Loans

loansThese are disbursed by banks and financial institutions. To be eligible for these loans, you have to have a good credit score. The interest rate that you will be charged will also depend on your credit history. So you can apply with your parent or guardian as a co-signer. These have more strict repayment options and a higher interest rate as compared with the federal loans.

Ways for a Smooth Procedure of Student Loan Application

There are several hacks to ensure a streamlined procedure for student loan application to save your time.

Yes, there is a lot going on when you apply for admission in different colleges but one thing that you cannot afford to overlook is filling out your Free Application for Federal Student Aid (also known as FAFSA) form. If you want a high aid amount, you should take care to fill the form as soon as possible, even before you know which college accepted you as a student.

Here are some ways that will save you time.

Create your FSA ID

To submit your FAFSA form online, you will need a FSA username ID and password to create your account from their company website. If you are a dependent student, then your parent or guardian will need to create one too. Then you will have to wait a few days for the Social Security Administration to verify your credentials.

Sort out your Documents and Personal Information

To make sure your process is smooth and hassle free, gather all your personal information and financial documents before you start. Documents like your social security card, federal income tax returns, driver’s license and bank statements among many others are required. Be sure to go through the complete checklist while you sort your paperwork.

Stay Ahead by Taking Free Help

It can be overwhelming to fill out an exhaustive form. You can get free help online from resources like NerdWallet. The guides are especially convenient if you face unusual circumstances or have immigration issues.

Check for Mistakes

To avoid more paperwork that is just tedious and wastes more time, check for mistakes and errors in your FAFSA form. It is tempting to immediately submit the form once you complete it. But pause and hold on. Recheck for blunders. Mistakes can qualify you for the verification list, which will just add to the amount of paperwork that you have to do.

Double check the numbers you enter on the form. Triple-check the spelling of your name. if your spelling is incorrect, it can delay the whole procedure.