"Applying for student loans online is an easy and convenient way to secure the funding you need to pursue your academic dreams. Whether you're completing the Free Application for Federal Aid (Fafsa) for federal student loans or working with a private lender, the online application process depends on the type of loan and lender you choose. Here's what you need to know," The Wall Street Journal reports.

... "Knowing your credit score is an important first step, as it determines your eligibility for most private student loans."

"'Most dependent students with limited or no credit history might have trouble getting a private student loan and might need a cosigner to receive a loan offer,' says Megan Walter, senior policy analyst at the National Association of Student Financial Aid Administrators (Nasfaa)."

... "Interest rates play a significant role in determining the total cost of your loan. 'That's going to decide the payoff length and amount the borrower will ultimately end up paying back,' says Walter. She also recommends looking for lenders that offer a discount of 0.25 percentage points off your interest rate for setting up automatic payments."

"It's also helpful to consider any benefits or features specific lenders offer. For instance, some lenders might defer payments until you graduate, while others might offer interest-only payments while you're in school. Likewise, reviewing any hardship options available to borrowers who lose their jobs or face other financial issues is beneficial."

"'There are plenty of websites that offer loan comparison tools, where borrowers can compare based on their eligibility for them, interest rates, fees and repayment term options,' adds Walter."

... "FAFSA online applications are processed within one to three days (paper ones can take 10 days to process), according to StudentAid.gov. From there, your information is sent to the school(s) you listed on your FAFSA form. Each school reviews the information and determines your financial aid award, which might include a mix of federal loans, grants and work-study opportunities."

"'Most aid offers will offer a calculation that considers the student's entire cost of attendance minus all aid they've been offered, usually grants, federal loans and work-study,' says Walter. You can use this number to determine how much additional aid, if any, you need."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 1/27/2025