What Do You Need to Qualify For a Student Loan?
There are several types of student loans; the most common among them are Stafford Loans. These loans come in two forms: a subsidized loan and an unsubsidized loan. The former loan offers a low interest rate and is given to students who exhibit a financial need based on parents’ income. A credit check is required. The latter is given to any student no matter the financial need and also provides low interest rates, and no credit check is required. Since there have been so many changes in federal student loans, there is an online application at fafsa.gov wherein you can apply for a student loan right away.
How Much Can You Borrow?
If you are an undergraduate student, you can borrow from $5500 to $12,500 per year. Graduate students can borrow up to $20, 500 per year. However, you need to read the conditions for these loan amounts. What do you need to qualify for a student loan?
- First, check the college to determine the application deadline. You can apply for a student aid loan at any time after the 1st of each year.
- Second, you will need certain documentation to apply for a student loan, i.e., the FAFSA Loan: Social Security Number and that of your parents; a driver’s license if applicable; federal tax returns and income; and if you are not a citizen of the US, you will need an alien registration number.
- Third, after you file an application for a FAFSA loan, you can check the Student Aid Report that will tell you if you qualified and/or what additional information is needed.
- Fourth, whether you apply for a subsidized or unsubsidized Stafford Loan, you are still required to apply to FAFSA.
Are There Loans Available That I Can Apply For in Conjunction with Financial Aid?
Yes, these are called PLUS loans. These are loans that parents can apply for to supplement college costs that are not included in any existing financial aid loans. PLUS loans will require the status of credit and may need a suitable co-signer. You can defer the repayment of the PLUS loan, however, interest is accrued.