We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Written by
Kim Porter
Kim Porter is a former contributor to Bankrate, a personal finance expert who loves talking budgets, credit cards and student loans. Porter writes for publications such as U.S. News & World Report, Credit Karma and Reviewed.com. When she's not writing or reading, you can usually find her planning a trip or training for her next race.
Edited by
Rhys Subitch
Rhys Subitch is a Bankrate editor who leads an editorial team dedicated to developing educational content about personal loans products for every part of life.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .
Bankrate logoFounded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money.
Bankrate logoBankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoYou have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
The most common solution when grants and scholarships fall short of paying for college is to take out a federal or private student loan. It’s generally a good idea to max out your federal student loan eligibility before considering applying for a private loan.
However, it is wise to evaluate each option’s pros and cons before submitting an application. Understanding how the loan application process works — federal and private — can prepare you to get a student loan.
To unlock federal student loans and federal student aid, you’ll need to fill out the FAFSA form. It’s free and opens in October each year. Fill it out the year before you plan to attend school and reapply with a new FAFSA form each school year.
Because federal student loans come with generous borrower protections and no credit check, it’s best to apply for these before seeking private loans, especially if you’re an undergraduate student.
When you get your results, you’ll find out whether you qualify for subsidized or unsubsidized federal student loans. Subsidized loans are for undergraduate students with financial needs.
If you qualify, the U.S. Department of Education will pay your interest costs while you attend school and during deferment. You pay all interest costs with an unsubsidized loan, and that interest starts accruing at the time of disbursement.
If you’ve hit your federal student loan borrowing limit or don’t qualify for federal financial aid, you may need to cover the remaining academic costs with a private student loan. These come from banks, credit unions and online lenders.
In contrast to federal student loans, private student loan interest rates rely on your credit score, as does approval. The process for applying, however, is fairly simple comparatively.
Although private student loans can be a great option when you don’t qualify for enough federal aid, federal loans are generally ideal for a few key reasons. For starters, private loans aren’t eligible for some of the borrower protections that come with federal student loans, such as loan forgiveness and income-driven payment plans. Deferment and forbearance also vary by lender, and if the loan comes with a variable interest rate, it can increase anytime during repayment.
Approval for a private student loan is contingent upon several factors. These include your credit score, income level and the cost of attendance at your school. To improve your chances of being approved, follow these steps:
You will typically pay back your student loans over the course of many years, so it can be helpful to consider the following before applying.
Federal loans are the preferred student loan options because, unlike private ones, they come with access to loan forgiveness and income-driven repayment plans. They’re also the best choice if you’re looking to qualify for a student loan with poor credit — most federal loans don’t require a credit check.
That said, private student loans can be a great option when you don’t qualify for enough federal aid. Many lenders allow you to borrow up to your school’s cost of attendance, and this may come in handy if you’ve maxed out your federal loan limit. Options for deferment and forbearance also vary by lender. And if the loan comes with a variable interest rate, it can increase anytime during repayment.
Borrowing the minimum amount you need to pay for school helps keep your monthly payments lower after graduation. Schools must disclose the estimated cost of tuition, fees and room and board each year in the form of the total cost of attendance (COA). This is often found on the school’s website.
You can use your school’s COA to create a budget to determine how much money you’ll need per academic year. Then subtract any funds you expect to get from scholarships, grants and a part-time job, if applicable. Private student loans can then finance the remaining costs.
Before applying for loans, crunch the numbers to understand the long-term impact of loans on your financial health. Use a student loan calculator to figure out what your monthly payments will be after graduation and whether you’re comfortable with the amount. Also, check how long it will take to pay off the debt and how much interest you’ll pay over the life of the loan.
Student loans, whether federal or private, have to be repaid at some point, and all loans come with an additional charge in the form of interest. Grants and scholarships, however, don’t have to be repaid as long as you meet the requirements.
Some colleges, universities and career schools offer institutional grants, so ask the financial aid office about your options. You can also apply for scholarships and grants offered by private organizations — scholarship search engines maintain databases that list millions of aid opportunities.
A part-time job during school may also help defray the costs of tuition or rent. Some employers may even offer tuition reimbursement as a benefit, though you may have to work for a certain amount of time to qualify.
Knowing how to get a student loan is a crucial part of planning for college, especially if you’ve exhausted your scholarship and grant options. Start by filling out the FAFSA to see how much federal aid you can qualify for. Then, assess your aid package, including federal student loans, before determining how much of a gap there may be to cover your total bill.
You may borrow private loans to cover the remaining costs after your aid package and available funding run out. It’s important to evaluate the terms of any loan you opt to borrow, whether public or private, and understand the commitment you’re signing on for in advance. Make sure you understand repayment options and interest rates as you proceed through the loan application process.
To qualify for a student loan, complete the FAFSA to check for federal loan eligibility. Federal loans require U.S. citizenship or eligible noncitizen status, a valid Social Security number, enrollment in an eligible program, satisfactory academic progress and for men ages 18-25, Selective Service registration.
Direct Subsidized Loans are need-based, while Unsubsidized and PLUS Loans are not. Private loans require a credit check and may need a co-signer, with specific lender criteria for eligibility.
Approval for student loans depends on the loan type and your financial situation. Federal student loans usually don’t require a credit check, making them easier to get for most students. However, private loans often require a good credit score, a minimum income and at least half-time enrollment in an eligible institution. If you don’t meet these criteria, a co-signer may be necessary. Always check the eligibility requirements and consider federal loans first for their favorable terms.
Independent students can apply for federal student loans without needing their parents’ income information by completing the FAFSA. Factors like age, marital status and military service can qualify you for independent status.
If you’re a dependent student unable to provide parent info, consider a dependency override or unsubsidized federal loans. Private student loans are also an option, potentially requiring a co-signer or proof of creditworthiness or academic merit.
Kim Porter is a former contributor to Bankrate, a personal finance expert who loves talking budgets, credit cards and student loans. Porter writes for publications such as U.S. News & World Report, Credit Karma and Reviewed.com. When she's not writing or reading, you can usually find her planning a trip or training for her next race.
