The Student Loan Application Process
The student loan application process can be a complicated procedure. With little or no guidance, borrowers can easily become confused and miss important details about their finances. With this short explanation below, we hope to prepare our customers in case they should ever seek one of these financial options. However, this brief description should merely be used as a starting point. We encourage all of our customers to take an active role in their financial understanding by taking the time to understand all the options before making a final decision.
Specific Loan Eligibility Requirements:
Stafford Loans
To apply for a Stafford loan, applicants must be U.S. citizens or nationals, permanent residents of the United States, or qualifying noncitizens. They must not be currently in default of another student loan. They must also be enrolled or have plans to enroll in enough classes for at least half-time status at a school that participates in the Federal Family Education Loan Program.
Perkins Loans
Perkins loans are intended for undergraduate or graduate students with high levels of financial need, but they are not available for medical interns or medical residents. To be eligible to apply, an applicant must be a citizen, a permanent resident, or a qualifying noncitizen of the United States. They must also be enrolled in a qualified school or degree program. Applicants must not actively be in default of any other student loan, and they must fulfill all Selective Service Act requirements, if applicable.
PLUS Loans
While parents may be required to provide past financial information, PLUS loans do not require any collateral. And, since PLUS loans are directed toward parents of students, the student may not have to fill out a FAFSA. However, some schools require all of their loan recipients to have a completed FAFSA on file, so borrowers should check with the specific school to find out more about this requirement.
For Direct PLUS Loans, parents must complete a Direct PLUS Loan application and promissory note. These materials can be found at the school's financial aid office.
For FFEL PLUS loans, parents must complete a PLUS loan application and promissory note. After completing this form, the school completes its portion of the application before sending it to a third-party lender for approval.
Private Education Loans
Because private loans require a borrower to work directly with a third-party lender, and because they do not involve the federal government, applicants are not required to fill out any federal forms to be eligible. Individual eligibility is determined by the private lender and is usually dependent on the applicant's credit score. The better the credit score, the better the applicant's chances of being approved. And, because the applicant's credit score plays such a large role in the approval process, a higher score could result in better terms and conditions for the borrower.
With a clearer understanding of the many student loans available, as well as the basic requirements needed to qualify for these loans, you may be ready to read more about the federal financial aid application process. To qualify for federal financial aid, you first must fill out a Free Application for Federal Student Aid, more commonly known as a FAFSA. To find out more details about the FAFSA, be sure to visit our Education: Completing the FAFSA and the MPN page. If you're interested in exploring funding options that don't require repayment, be sure to visit our Types of Student Grants page as well as our Scholarships Can Help You Make the Grade page.
