How to Apply for a Student Loan

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;}

The high cost of education will require most college and trade school students to get some sort of student loan. Applying for such aid is not difficult but there are some limitations to it you should be aware of. There are also alternatives that you should be aware of as well.

 

The process of applying for a student loan is fairly simple and straightforward but you should do some careful planning and thinking first. Something to consider is that under current law student loans cannot be discharged in a bankruptcy so they have to be paid off. The federal government also has the power to seize your tax refund to pay of unpaid loans so this kind of aid can be very costly. Limiting the amount of it that you use is always a good idea.

 

Plan Your Education Carefully

Before applying for a loan you should determine what your educational goals are and which school you wish to attend. If you will have to use loans it is often a good idea to attend lower priced schools. One option to consider is attending a community college or an online college for the bulk of your education and transfer to a more prestigious school for your final degree.

 

You should decide what schools you wish to attend, apply and be accepted before applying for a loan. You should never apply for a student loan unless you have been accepted at a school.

 

Investigate Alternative Financing before Applying for a Loan

There are alternatives to student loans available that you should investigate before applying for one. Pell Grants are direct cash payments from the federal government to qualified students. Unlike loans they will not have to be paid back. Qualified students can get several thousand dollars a year to cover education costs through this program.

 

Other forms of student aid that will not have to be paid back include scholarships, work study programs, internships and direct aid from the school. Check with your school’s financial aid office to see what aid it has available. Also check with any organization that you belong to see what aid they offer. Check with your employer to see if it offers tuition reimbursement. Even if you can get just a few hundred dollars you can reduce the amount you have to borrow.

 

Apply Early and Get the Best Deal You Can

You should apply for federal student aid which includes loans as you learn you have been in school. Apply for this aid which includes Pell Grants and other forms of direct assistance by filling out a Free Application for Student Aid or FAFSA form. This form can be completed online. The application needs to be filled as early as possible so that you can have the money available when you start classes.

 

This form enables you to apply for direct cash grants, work study programs and low interest Perkins and other loans from the federal government. The federal loans will usually be the best deal because they come with the lowest interest rate.