Can I Get Student Loans Before School Starts?

Many students plan to get a student loan at the start of their graduate school. But, students won’t receive their loans until the time class starts. Moreover, when a student will get the loan also depends on the specific school.

Key Takeaways

• Regardless of the type of student loan, there’s a waiting period before you get the money
• When a student can get a loan depends on what type of loan he/she has applied for
• You should keep in mind that there is a time difference between federal student loans and private student loans
• Before you apply for a student loan you have to estimate the total cost of the grade school
• Federal direct loans are the most affordable source of funds and these loans are usually available in October every year

How To Get Student Loan

If you want a student loan but don’t know how to get student loans for grad school then you should follow the below steps:

1. Estimate the costs of the grade school

2. Compare different loan options for graduate student

3. Fill out the FAFSA in October

4. Apply for private loans    

Estimate The Costs Of The Grade School

Before you apply for a student loan you have to estimate the total cost of attendance. You have to figure out everything including tuition fees, room and board, books, transportation costs, and other costs. Most of the schools have a chart on their website that will help you estimate the total cost of attendance. These estimates typically include costs related to the school as well as other general costs.   

Once you got the idea of the cost, now adjust it with your own situation. For example, if you can live in your house and can go to school then you can exclude the cost of room and board from the final estimate. This way you will get a good idea of what your costs will be and you will be able to subtract any scholarships, savings, and family contributions, to get to the final estimate. Finally, you will understand how much money you have to borrow.  

Compare Different Loan Options For Graduate Student

In this step, you have to figure out from where you can get the student loan. There are three options available when it comes to student loan – 

1. Federal direct loans

2. Grad PLUS loans 

3. Private loans 

Check the below table to get a quick idea about the above loan options

Criteria	Federal Direct Loans	Grad PLUS Loans	Private Student Loans
Maximum Amount You Can Borrow	Annual limit: $20,500School’s financial aid office also imposes limits based on the need	Up to the cost of attendance	Varies by lenderUsually depends on the cost of tuition
Credit Requirements	No credit checkA credit score doesn’t determine eligibility	Eligibility will be determined based on your creditIf you can’t qualify based on your credit score then you will require an endorser	Eligibility will be determined based on your credit and incomeIf you can’t qualify based on your credit score then you will require an endorser
Interest Rates	Fixed-rate of 4.30%	Fixed-rate of 5.30%	Fixed or variable rates, varies by lender
Origination Fees	1.057% for loans disbursed between Oct. 1, 2020, and Oct. 1, 2021	4.228% for loans between Oct. 1, 2020, and Oct. 1, 2021	Varies by lenderMany loans have no origination fees
Repayment Terms	Multiple repayment optionsStandard 10-year repayment planGraduated repaymentIncome-driven repayment plans	Multiple repayment optionsStandard 10-year repayment planGraduated repaymentIncome-driven repayment plans	Varies by lenderTerms typically range from five to 20 years
In-School Repayment Plans	Don’t have to make payment when in school	Don’t have to make payment when in school

Fill Out The FAFSA In October

FAFSA stands for Free Application for Federal Student Aid. Federal direct loans are the most affordable source of funds therefore its demand is very high. This loan is available every year in October. So if you will be attending school in the 2021-22 academic year then your FAFSA becomes available in October 2020. Federal loan is limited so you have to apply quickly. Moreover, schools and states may also set earlier deadlines so make sure you meet any deadlines specific to your situation. If you are accepted by the federal aid then the funds will be disbursed to the school before the semester begins so you don’t have to worry about the tuition fees.  

Apply For Private Loans

Applying for a private student loan is a bit more complicated than a federal loan. Moreover, there are more options to choose from when it comes to a private loan. You can get a student loan from different financial institutes including online lenders, local and national banks, and credit unions. You can submit multiple applications to different lenders and compare their pricing. When you are applying for a private student loan then you have to provide some information including – 

1. Basic personal information like name, address

2. Information about the school

3. Information about other sources of financial aid

4. Information about income and assets

How To Apply For A Federal Student Loan

You have to apply for a federal student loan by filling out and submitting the Free Application for Federal Student Aid (FAFSA). There is no cost for submitting the FAFSA form. You have to complete the FAFSA every year if you need money for your college. You can submit the FAFSA form starting October 1 for the following school year. This loan is awarded on a first-come, first-served basis so try to apply as early as possible. When you are filing your FAFSA form you have to provide information including – 

1. Driver’s license and Social Security number

2. Parent’s email addresses so that they can supply their Social Security numbers and birthdates

3. Permission from the family member who completed a tax return

4. Information of Federal income tax return

5. W-2 forms

6. Bank statements

7. Information about your family’s investments 

How To Apply For A Private Student Loan

For private student loans, you have to apply directly to the lenders. Now follow the below steps:

1. First, visit the lender’s website from your computer

2. Now check the interest of the loan as well as the flexibility of repayment options, benefits, etc.

3. Then apply directly on the website

4. Select the type of repayment option and interest rate

5. You can also add a cosigner and it will increase your chance of getting the loan

6. Finally, the lender will check your credit score and let you know their decision

FAQs About Student Loans

References:

1. https://www.nerdwallet.com/article/loans/student-loans/6-things-to-know-about-student-loans-before-freshman-year
2. https://www.collegeavestudentloans.com/resources/when-to-apply-for-student-loans/

Last Updated on November 7, 2022 by Magalie D.