Just the thought of finding and securing a student loan can be intimidating, but it’s a necessary step for many students seeking higher education. In fact, nearly 40% of all college students seek some sort of financial aid or loan.

When considering federal or private student loans, understanding the application process and your available options is key. Below, we’ll walk through the steps of obtaining student loans, from starting your research to finalizing your application.

Types of student loans to consider

When exploring how to get a student loan, it’s essential to understand the different types of student loans available.

Federal student loans

Federal loans are often the best choice for most students due to their favorable terms and protections. Subsidized loans are available to undergraduate students with financial need, where the government covers interest while you’re enrolled at least half-time. They typically have lower interest rates compared to private loans.

On the other hand, unsubsidized loans are available to both undergraduate and graduate students without the need to demonstrate financial need. However, interest accrues while you’re in school and during deferment periods.

Parent PLUS loans

These federal loans are available to parents of dependent undergraduate students. They require a credit check and generally have higher interest rates compared to subsidized or unsubsidized loans. Repayment starts immediately after disbursement, but deferment options may be available.

Private student loans

Offered by banks, credit unions, and private lenders, private student loans can be an option if you’ve exhausted federal loan options. They often come with higher interest rates than federal loans, and your credit score and income can affect eligibility and interest rates.

Additionally, private loans may have limited repayment options and fewer borrower protections compared to federal loans. They’re always an option, although many people consider them a last resort when financing their higher education.

Discover your financial aid options at Goodwin.

Getting student loans: The pros and cons

Understanding the advantages and disadvantages of student loans, and knowing how they can affect your future, is essential for making informed decisions about your next steps.

On the positive side, student loans can help cover tuition, books, and living expenses while in college. All the while, they offer low interest rates for federal loans, along with deferment and income-driven repayment options.

However, there are also drawbacks to student loans; you will have loan repayment obligations after graduation, and because interest accrues over time, there is potential for longer-term financial burdens.

How to get a federal student loan

Starting your education shouldn’t be held back by financial concerns. Federal student loans often offer students the most favorable terms and flexible repayment options. Through a streamlined process, student loans help hundreds of students each year to secure the federal funding they need to pursue their dreams.

Follow these steps to apply for federal student loans:

1. Complete the Free Application for Federal Student Aid (FAFSA)

Start by visiting the official FAFSA website. Gather necessary documents, such as tax returns and income information, before submitting your application before the deadline.

2. Review your Student Aid Report (SAR)

This report determines your qualifications for financial aid. After submitting your FAFSA, check for any errors and make corrections if needed.

3. Receive and evaluate your financial aid offer

Schools will send financial aid packages based on your FAFSA results. Compare different offers from various institutions and decide on the amount of federal loans you need.

4. Accept your loan offer

Log into your school’s financial aid portal to accept or decline portions of the offered loan. Be sure to only borrow what is necessary.

5. Complete entrance counseling

Because it provides necessary details on loan obligations and payments, first-time federal loan borrowers must complete this step.

6. Sign a master promissory note (MPN)

This legally binding agreement outlines your obligation to repay the loan. Be sure to read and understand all terms before signing.

7. Receive your loan disbursement

The funds will be sent directly to your school and used to cover tuition, fees, and other approved expenses. Any excess funds may be refunded to you for educational costs.

8. Stay informed on loan repayment

Knowing your post-graduation repayment choices can help you manage your finances, so keep an eye on your loan balance and interest rates during your academic career.

How to get a private student loan

If you need to explore private student loans, consider these steps:

1. Exhaust federal options first by applying for scholarships and grants or considering work-study programs.
2. Research private lenders by comparing interest rates, repayment terms, and borrower protections.
3. Gather required information such as personal and financial documents.
4. Submit applications to multiple lenders for comparison. Review loan terms carefully before accepting any offers.

How to get a student loan at Goodwin

Don’t let money get between you and your education. At Goodwin University, we work to make learning affordable and available. In fact, over 90% of our student body receives some sort of financial aid, and we offer some of the lowest tuition costs in Connecticut. Our experienced financial aid team will guide you through all of your choices, including federal aid, private loans, and scholarships, to help you make the best financial decision for your education.

Securing student loans can be overwhelming, but we will help you at every stage. Connect with our Financial Aid team today to discover how affordable your Goodwin education can be.