Learn how to get a Student Loan

Learning for education is never easy. Some families and employers cover the costs, but not everyone is happy. If you need more money, you need to know how to get a student loan. This page covers the options available to you and what you need to know before lending.

Know your options

When in charge of education, you have several options. Be sure to consider them and choose the one that works best for you. Be sure to consider:

• Loans offered through government programs (generally the best option)
• Private student loans (usually used after you have borrowed the maximum from government programs)

In addition to loans that are specifically designed to finance education, you can use:

• Loans from family members
• Home equity loans (only option if you own a home)

• Peer to Peer Loans – Borrowed from individuals instead of banks
• Unsecured “signature” or personal loans
• Credit Cards

The choices above are more or less about accessibility.

Start with government loans

Student loans from government sources are probably your best bet. These loans will generally have lower interest rates and some of the interest may be paid (subsidized) on your behalf while you are in school.

There are several other benefits to borrowing loans that can be read here: Benefits of Student Loans.

The disadvantage of government programs is that they cannot cover all your expenses. There is a limit to how much you can borrow, and if you need more you will need to find it elsewhere.

How to Get Student Loans?

To get a student loan as part of a government program, visit your school’s financial aid office. Let them know that you will borrow, and they will tell you what steps to take. You will need to complete a loan form, which will determine what type of assistance you have to qualify. In order to complete the loan, you need to provide details about your finances: your assets in bank and investment accounts, income levels, social security numbers, and so on (both for you and your parents).

After processing your loan, you will receive a financial aid offer from your school. You can accept the offer or pass if you decide to take a different route. If you decide to accept the funds, you will need to complete an entrance counseling (relatively short training on how your student debt works) and sign a loan agreement.