Process of Education Loan In US
How to apply for a student loan /education loan in US(Federal and Private)
There are some process of education loan to follow based on the type of student loan you are going to apply.
Process of education loan for Federal Student Loan:-
You can apply for a federal student loan by filling the FAFSA form (Free Application for Federal Student Aid (FAFSA®)). You must have to submit the FAFSA form to be permitted for a federal student loan.
there are a few things that you need to keep in mind to submit the FAFSA form for federal student loans (and for any types of federal financial help), few points are mention below.
- No site will ask you to pay the money for submission of FAFSA form. Keep in mind that there is no cost for submitting the form.
- If you need money for college the please complete the FAFSA form every year .
- Get it as soon as possible after October 1. Some sources grant money on the basis of first-come, first-served.
Process to apply for a private student loan
You can directly apply to the creditor. As private student loans are offered/given by banks and financial institutions. This loan is not same as federal loan, government is not responsible in this loan.
Follow these instructions to apply for a private student loan:
- Go to the Creditor’s website.
- Check the benefits, offers, flexibility of repayment options and the interest rate of the loan. Check each and everything n details before apply for loan.
- Apply from the website. In that site they will ask you to choose the repayment option and the interest rate you want.
- You can add any guarantor for improving your chance of getting the loan.
- The creditor will check your credit and also your guarantors (if you add someone), and will inform the decision to you.
Both student loans (federal and private student loans) are legal agreements. Once you agree to a loan and sign for it, you’re committed to paying it back, along with interest.
Repaying federal and private student loans
- Federal student loans: There is a six-month grace period, after that process will begin to make principal and interest payments.
- Private student loans: For Private loan also, there is a six-month grace period. After that, process will begin to make principal and interest payments.