When do loans come in

Types of student loan borrowing options If you need money for college expenses, you need to know what your borrowing options are. Learn about other borrowing options for college Types of federal student loans There are three types of federal student loans. Direct Subsidized Loans are based on financial need.

Direct Unsubsidized Loans are not based on financial need. Parent loans are another way to get money for college. A parent or other creditworthy individual takes out the loan to help their student pay for college. Madison is using 4 steps to ease the burden of college expenses.

Free money tip Want to pay less for college? Get it in as soon after October 1 as possible. The earlier, the better, since some grant money is awarded on a first-come, first-served basis. How to apply for a private student loan Since private student loans are offered by banks and financial institutions as opposed to the federal government , you apply directly to the lender.

Check the interest rate of the loan, along with the flexibility of repayment options and other benefits. Apply directly on the website. You may want to consider adding a cosigner which may improve your chances of getting the loan. How to accept your federal or private student loan You accept your federal student loans by signing and returning your financial aid offer. You or your cosigner will accept the terms of your loan and sign it electronically.

Federal student loans are typically disbursed at the start of each term. If there are funds left over after paying for your tuition, fees, and student housing, most colleges will refund the remaining balance to you within a couple of weeks of receiving your loan funds. Keep in mind that some schools add a day delay to this as an added protection for first-time borrowers. From the time you submit your application until you receive funds, plan on around three weeks to get a private student loan in the best-case scenario — or up to two to three months in case of delays.

Private student loan lenders have their own rules for approving loan applications. Most of them want the application and disbursement process to be as quick and easy as possible. In many cases, you can get funds faster from private student loans than federal loans.

Credible makes this easy — you can compare your rates from our partner lenders in the table below in two minutes. Once you submit your application, you could be approved for a private student loan in as little as a few minutes.

Most private student loans must be certified by your school before being disbursed. This might add another couple of weeks to the process. Once the loan is certified, the lender will send funds to the school. This can take anywhere from two weeks to two months. Another option if you need to borrow more money than federal student loans can provide is to apply for a private loan from a bank, credit union, or other financial institution.

Private loans are available regardless of need, and you apply for them using the financial institution's own forms rather than the FAFSA. To obtain a private loan, you will need to have a good credit rating or get someone who does have one, such as a parent or other relative, to cosign on the loan.

Having less-than-stellar credit can make it difficult to qualify for student loans. Private lenders will consider your income and credit history, and as a college student, you likely have poor credit or no credit at all. However, some lenders offer student loan options for borrowers with bad credit. Generally, private loans carry higher interest rates than federal loans, and their rate is variable rather than fixed, which adds some uncertainty to the question of how much you'll eventually owe.

Private loans also lack the flexible repayment plans available with federal loans and are not eligible for loan consolidation under the Federal Direct Consolidation Loan program.

However, you can refinance your private loans after you graduate, possibly at a lower interest rate. Each college will notify you of how much aid it is offering around the same time that you receive your official acceptance. This is often referred to as an award letter. In addition to federal aid, colleges may make money available out of their own funds, such as merit or athletic scholarships. How much you'll have to borrow to attend one college versus another may not be the most important factor in choosing a college.

But it should definitely be high on the list. Graduating from college with an unmanageable amount of debt—or, worse still, taking on debt and not graduating—is not only a burden that might keep you up at night; it can limit—or even derail—your career and life choices for years to come.

Also factor in the future careers you are considering when you choose to pay more for college. A career with a high entry-level salary will put you in a better position to repay your loans and justify taking on more debt. Borrowers must answer questions about the student's and parents' income and investments, as well as other relevant matters, such as whether the family has other children in college.

That figure is used to calculate how much assistance you're eligible to receive. Federal loans have relatively low, fixed interest rates private loans often have variable rates and offer a variety of flexible repayment plans. Private loans, unlike those from the government, aren't based on financial need. Borrowers may have to pass a credit check to prove their creditworthiness.

Borrowers with little or no credit history, or a poor score, may need a cosigner on the loan. Private loans may also have higher borrowing limits than federal loans.

Like grants, direct subsidized loans are meant for students with exceptional financial need. The U. By contrast, direct unsubsidized loans are available to families regardless of need, and the interest will start accruing immediately. Student loans are among the resources available to help families pay college bills.

Private and federal loans have advantages and disadvantages depending on your situation. Private loans, administered by banks and credit unions, are much like any other kind of loan meaning a credit check will be required.

Federal loans are often needs-based with lower interest rates and flexibility in repayment. Those who do the required legwork will find options that best meet their needs. Federal Student Aid. The White House. Department of Education. Student Loans. Saving For College. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.

At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.

We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance.