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Understanding Student Loans

Applying for Student Loans

Applying for Student Loans

When it comes to applying for student loans, there are a few things you need to keep in mind to ensure that you get the best possible loan.

Fill Out the FAFSA

First, you'll want to start by filling out the Free Application for Federal Student Aid (FAFSA). This form is available online and is used to determine your eligibility for federal student loans.

Receive Your SAR and EFC

Once you have filled out the FAFSA, you will receive a Student Aid Report (SAR) that summarizes your financial situation and lists your Expected Family Contribution (EFC). Your EFC is the amount of money your family is expected to contribute toward your college education. Your school will use your SAR and EFC to determine your financial need and the amount of federal aid you are eligible for.

Consider Private Student Loans

In addition to federal loans, you may also want to consider private student loans. Private student loans are offered by banks and other financial institutions and can be used to cover any remaining costs after you have exhausted your federal loan options. Private loans typically have higher interest rates than federal loans, so be sure to compare rates before choosing a private loan.

Keep Track of Deadlines

When applying for student loans, it's important to keep track of your deadlines and submit your applications on time. Missing deadlines can result in a delay in receiving your funds, or even a loss of eligibility for certain loans.

Read the Terms and Conditions

Finally, be sure to read the terms and conditions of any loan before accepting it to ensure that you understand the repayment requirements and any associated fees or penalties.

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