College Loan Application

Many students get confused when trying to determine the intricacies of college loan application requirements. A college loan application may seem like gibberish to an inexperienced applicant. The federal student financial aid form is a simple online application called the Free Application for Federal Student Aid (FAFSA). So too, the many types of college loan applications can confuse students hoping to find money for school. Nearly 65% of students leave college with some form of loan debt, and of this 65%, 9% leave school with private or alternative loans in addition to federal loan obligations.

Want to file your college loan application?
Fill out a college loan application today.

Different lenders abide by differing application procedures. All lenders require a scrutiny credit score, credit history, current debt obligations, and income. Many of these lenders, such as Sallie Mae, offer applications online to make the application process easier for students and parents.

Reasons to apply for private lender student loans include:

• Relatively competitive loan rates versus federal loan offerings
• Lengthier repayment “grace” periods upon exiting school
• Efficient direct-to-consumer student loans
• Conveniently higher loan limits
• Tax deductable status for interest repayments the loans

Though the rate of student borrowing private loans has risen by 734% over the last 10 years, according to The College Board, many students still do not realize private lenders offer money for school that cannot be obtained by simply filling out a FAFSA form. Furthermore, many students do not know private loan applications process much more quickly than federal applications. Many well-known and reputable student loan lenders, such as Sallie Mae and Wells Fargo, also provide private loans for college students. Students can use these loans to pay for living expenses, such as the purchase of a car, rent on their apartment, or day-to-day expenses like groceries and medical expenses. Private funding for college takes into a count student or parent credit rating, rather than demonstrable financial need, and may prove a good choice for parents fearing that their comfortable financial situation may hinder their child receiving college financial aid. To apply for alternative loans, students need to seek out individual lender application much like any other type of loan.

Online applications for private student loans comprise one of the many avenues students can use to obtain direct-to-consumer student loans, or loans that unmediated through an academic third party. Often, banks will reduce interest rates for consumers who use this method, because the overhead for direct-to-consumer loans remains low. A college loan application completed in this fashion may save students money in the long run by giving them access to private loans with interest rates that remain competitive with federally backed loan interest rates, while offering them longer repayment “grace” periods and better overall terms and conditions via the open market on which these loans compete. Furthermore, by applying for these loans, students will not face the same cap on yearly borrowing, which governs federal funds. Another reason many students apply for these loans, is the simple fact that private lending loan applications process more quickly, and the turn around time between the acceptance of the application and the disbursement of money proves quicker than federal aid, which must go through a third party before disbursement. For students who need a quick response to their college loan application, direct-to-consumer online application forms are the fastest and easiest method for obtaining money for school.

Banks and private lenders also offer paper application forms and other representatives who can assist students when applying for college loans. Unlike federal lenders, private lenders offer a level of service during the application process that proves unmatched due to their recognition of prospective student borrowers as potential customers. Ultimately, the process of applying for alternative or private students loans is much faster and easier than other options which require that the school acts as a third party mediator.

Want to file your college loan application?
Fill out a college loan application today.