Step 1: Complete the FAFSA
The first step to getting a federal student loan is completing the Free Application for Federal Student Aid (FAFSA). Federal student loans require a current FAFSA on file. To start the FAFSA form, you need to create a StudentAid.gov account and have an FSA ID.
Before you begin, gather the documents you’ll need: tax returns, records of child support received, bank account balances, and investment records. You can complete the FAFSA online. The form is free. For the 2026-27 FAFSA, the federal deadline is June 30, 2027. State and school deadlines can be earlier, so check with your state and each college.
The FAFSA also determines your eligibility for other financial aid, but it is the essential first step for federal loans.
Sources: U.S. Department of Education, USA.gov
Step 2: Receive Financial Aid Offer
After you submit the FAFSA, the schools you list will send you financial aid offers. These offers outline the types and amounts of aid you qualify for, which may include federal student loans, grants, and work-study. Review each offer carefully to understand the loan amounts and terms.
Sources: U.S. Department of Education, University of North Carolina at Chapel Hill
Step 3: Accept Federal Loans
Once you receive your financial aid offer, you can choose which loans to accept. You don't have to accept the full amount offered; you can borrow only what you need. Federal loan annual limits vary by dependency status and year in school. These limits apply to federal Direct Subsidized and Unsubsidized Loans.
Keep in mind that you must reapply for financial aid each year by submitting a new FAFSA.
Step 4: Complete Entrance Counseling and Master Promissory Note
First-time federal student loan borrowers must complete entrance counseling and sign a Master Promissory Note (MPN). Entrance counseling is a short online session that explains your rights and responsibilities as a borrower. The MPN is a legal document in which you promise to repay your loans. You must complete both before your loan funds can be disbursed.
Step 5: Applying for Private Student Loans
If federal loans are not enough to cover your costs, you might consider private student loans. The application process is different from federal loans. Private lenders typically require a credit check and may require a cosigner if you don't have sufficient credit history. You will need to provide personal and financial information, such as your Social Security number, income and credit history, and details about your cost of attendance.
Some private lenders also require that you provide information about your school, such as the name and cost of attendance, and you may need to have a current FAFSA on file, though it is not always required. Check with individual lenders for their specific requirements.
- Common requirements for private student loans include proof of income, credit history, a cosigner if needed, and cost of attendance details.
Step 6: Compare Private Loan Offers
If you apply to multiple private lenders, you may receive different offers. Compare interest rates, fees, repayment terms, and any borrower protections. Look beyond the interest rate: some lenders may offer lower rates but charge origination fees or require immediate repayment while you are in school. Make an informed decision based on the total cost over the life of the loan.
Step 7: Accept Private Loan and Certification
After choosing a private loan offer, you must accept the loan and complete the lender's application process. Many private lenders require the school to certify the loan amount, confirming that it does not exceed your cost of attendance minus other aid. The school will work with the lender to certify the loan before the funds are disbursed.
Once certified, the loan funds are typically sent directly to the school to cover tuition and other charges. Any remaining amount may be paid to you or your account.
Frequently asked questions
Do I need to complete the FAFSA every year?
Yes, you must submit a new FAFSA each academic year to be considered for federal student aid, including loans. Federal student loans require a current FAFSA on file.
Sources: U.S. Department of Education, University of North Carolina at Chapel HillCan I apply for private student loans without FAFSA?
Private student loan applications generally do not require a FAFSA, but many lenders will still ask for details about your cost of attendance and may require you to have a financial aid offer. However, private loans are often used after you've exhausted federal loan options, so completing the FAFSA first is usually recommended to determine your federal eligibility.
Sources: University of North Carolina at Chapel HillHow long does private loan approval take?
The approval timeline for private student loans varies by lender and depends on factors such as credit review and school certification. While some lenders can provide a decision within minutes, the overall process to receive funds can take several weeks or longer because your school must certify the loan. Contact the lender and your school's financial aid office for specific estimates.
Sources: University of North Carolina at Chapel HillWhat is the maximum amount I can borrow in federal loans?
Federal loan annual limits depend on your dependency status and year in school. These are aggregate annual limits, and lifetime limits also apply.
Sources: University of North Carolina at Chapel HillSources
- Filling Out the FAFSA® Form — U.S. Department of Education
- Free Application for Federal Student Aid (FAFSA) — USA.gov
- Loans - Office of Scholarships and Student Aid — University of North Carolina at Chapel Hill
- Loans - Office of Scholarships and Student Aid — University of North Carolina at Chapel Hill