Complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is basically a document that compiles personal information about you and your family and is used to determine your eligibility for federal financial aid. The FAFSA may be completed online, as a downloadable or fillable PDF document or a paper document sent via mail. While you are completing your FAFSA, you will have an opportunity to select the schools you would like to receive a copy of your Student Aid Report (SAR).
Review your SAR. Your SAR will contain a summary of the information you provided on your FAFSA, a determination of your Expected Family Contribution (EFC) and information about the types of federal financial aid for which you are eligible. There are two basic federal student loan programs: the Federal Perkins Loan Program and the William D. Stafford Direct Loan Program (Direct Loans).
Follow up with the financial aid office of the college you will be attending. Speak with a financial aid officer to ensure that your SAR has been received and to ask if you need to submit any additional documents or verify any information before you receive a financial aid award. If they require additional documentation, provide the information they request immediately.
Wait to receive a financial aid award letter. The award letter will outline the financial aid package being offered to you, including the types and amounts of any loans for which you are eligible. The letter will explain the features and conditions of each type of eligible loan and provide you with someone to contact who can answer any questions you may have about the loans.
Accept the loan(s) you want to borrow. You may be eligible for more than one type of loan, and you may not need the total amount for which you are eligible. Carefully decide the types and amounts of loan funds you want to borrow, and complete the portion of the award letter that needs to be returned to the financial aid office to reflect the loan(s) you will be accepting.
Complete and submit any additional documents and steps necessary for loan processing. For a Perkins Loan, you'll need to complete a Perkins Loan Authorization Form, Perkins Master Promissory Note and Perkins Loan Entrance Counseling, plus any other requirements your particular school sets. For a Direct Loan, you'll need to complete entrance counseling and sign a Master Promissory Note (MPN). For some Direct loans, you will need to pass a credit check. For example, to obtain a Direct PLUS Loan you must not have any adverse credit history or, if you do, you must obtain an endorser that does not have any adverse credit history. However, most Direct loans do not require you to pass a credit check, and it is even possible to obtain a Direct PLUS Loan with adverse credit history if you have extenuating circumstances for having the adverse credit history.
Wait for your loan to be disbursed. The loan will be applied to your student account. Any excess may be either refunded to you or left as a credit on your account to be applied to another term.
Complete a FAFSA. Not all private lenders require you to complete a FAFSA, but some lenders require your school to verify the amount of the loan you need; in those cases, information from your FAFSA is used to make the determination.
Research private lenders. Review the student loan options available through various private lenders, including student loan companies like Sallie Mae, banks and finance companies. Select the lender and loan option that will work best for you.
Apply for a private student loan. Obtain the necessary application forms from your prospective lender and complete them. This will almost certainly include a credit check, which you will need to pass. You may be required to have a co-signer. If this is the case, your co-signer will also need to pass a credit check.
Accept the loan your want to borrow. You will need to accept any loans you are eligible for and want to borrow. This will involve filling out forms and signing a promissory note. You may also be required to undergo loan counseling. Each private lender sets its own conditions for awarding loans.
Wait for your loan to be disbursed. Your loan check may be either sent to your school or directly to you, depending upon what arrangements you've made with your lender.