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Useful Tips About a Student Loan Application (Page 1 of 2)
Since there are not many people who can finance a college education without some sort of financial assistance, at some point most students will have to fill out at least one student loan application. This process can be daunting, but fear of completing a student loan application is no reason to give up on higher education. Unfortunately, sometimes the easiest student loans to apply for are those with the most unfavorable terms.
For this reason, any student who is attempting to procure financial aid should become familiar with the types of loans available and the student loan application procedures that need to be followed in order to qualify for these loans.
FAFSA: The First Step in Financing an Education
The Free Application for Federal Student Aid or FAFSA is the most important scholarship and student loan application that any student must complete. It is also frequently the most complex and tedious application for students and their parents. This is because the FAFSA requires a lot of detailed financial information, including tax returns, from both students and parents. While the application requires time, this form is essential for all students. Filing a FAFSA is not only the sole method of obtaining federal funding for education including Stafford Loans, but this exhaustive form is also a prerequisite for most state and institution based loan programs. Since these types of loan programs tend to offer the most favorable terms for students, filing a FAFSA should be every student’s first step in the financial aid process.
Applying for Federal Aid
Even though the FAFSA is free and can be completed online, its exhaustive nature causes too many students to give up and accept private loans with high interest rates and unfavorable repayment terms. A little preparation can help families avoid this undesirable situation, however. Anyone seeking financial aid should be sure to file a tax return as early as possible. As soon as the tax return is done, families should gather the completed return, bank statements and financial paperwork and fill out the FAFSA. Having paperwork on hand will make the process go more quickly, and early filing is crucial in ensuring eligibility for the maximum amount of aid available. It is imperative that families not only file the form before the FAFSA deadline but before the deadlines for individual school and private loan programs. A completed FAFSA is frequently required before students can even submit any other student loan application, and often these deadlines are earlier than the federal deadline.
School Based Financial Aid
Most higher education institutions have financial offices and offer many forms of financial aid and counseling to their students. While a FAFSA is usually required to qualify for school based programs, there are also additional applications to fill out. Since the deadlines for school based aid are often very early, every student should contact the financial aid office of his or her school as soon as a matriculation decision is made and obtain the necessary paperwork. This paperwork will often include a general financial aid application, applications for specific scholarships and a student loan application for any loans offered specifically by the school. These applications may require personal information in addition to the financial information required for the FAFSA.
Student Loans For Bad Credit Scores
Any private loan company or alternative student loan is going to require a credit check before they approve a student loan or set an interest rate. Since most students have no credit, which can be just as difficult to deal with as bad credit, finding student loans for bad credit scores through private lenders can be difficult. To avoid this problem, most student financial advisors and counselors recommend avoiding applying for private student loans for bad credit ratings, instead try finding an alternative loan that doesn’t pull your credit report.
Some of the best funding options for people looking for student loans for bad credit scores are scholarships and grants. These programs may be set up by schools, private businesses, organizations, churches or non-profit organizations and can be offered locally, by state or even nationally and internationally. Go online and do some searching, you may have to use a variety of search terms such as:
School grant applications
Private grants
Scholarship programs
Bursaries
Study grants
Another options to student loans for bad credit risk individuals is to consider looking into a field of study where there is a recognized shortage of new professionals. A good example of this is nursing or education where there is a chronic shortage of new graduates to fill already vacant employment spots. Often the professional organizations or the employment sources such as school districts and hospitals will subsidize or pay students to complete their education in return for a few guaranteed years of work. Not only does this assure you that your tuition will be paid but it also provides you the assurance of work immediately upon course completion.
Federal government student loans for bad credit scores have long been the most preferred option. The federal programs do not pull credit reports in determining eligibility, amounts or rates of loans. The problem is that these loans are often not enough to fully pay for education, so some sort of supplemental funding source is required. Federal student loans for bad credit are still an important consideration and should be the first application that a student or their parents complete after they have obtained any and all applicable scholarships and grants.
The worst type of student loans for bad credit are the very high interest, high penalty and fee type of loans that many lenders advertise as a “no credit check” type loan. These loans are often sold immediately, resulting in a complete change in terms for many students, often becoming virtually impossible to pay back due to the high interest rates and fees. Always check any loans very carefully and only work with well established student loan companies and services.
For more information, visit Student Loan Solution.