Where to apply depends on the type of loan you want

Federal student loans and private student loans have completely different application routes. Federal loans — which include Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans — all go through the U.S. Department of Education using a single form called the Free Application for Federal Student Aid (FAFSA). Private loans come from banks, credit unions, and online lenders, and each one has its own application process.

The FAFSA is the starting point for most borrowers because it determines not only federal loan may be able to access but also may be able to access for grants and work-study, and many private lenders want to see your FAFSA results before they'll consider you. If you're an undergraduate, graduate student, or parent borrowing for a dependent student, you'll need to file the FAFSA first.

Private loans are a separate track. You apply directly to the lender — through their website, by phone, or in person at a bank branch — and they make their own decision based on your credit history, income, and other factors. Some private lenders require a co-signer if your credit is limited or you have no credit history yet.

Key Takeaways

  • Federal student loans require you to complete the FAFSA, which opens October 1 each year and determines your federal loan amount and other aid.
  • You'll need a Social Security number, proof of citizenship or may be able to access noncitizen status, and your tax information or an IRS Data Retrieval Tool authorization to file the FAFSA.
  • Private loans skip the FAFSA and go directly to the lender; each lender has its own credit requirements and timeline.
  • The FAFSA result — your Student Aid Report — shows your Expected Family Contribution and tells you what your school will offer you in federal loans.
  • After you receive a loan offer from your school, you accept it and complete entrance counseling and a Master Promissory Note before the money is disbursed.

Filing the FAFSA for federal loans

The FAFSA opens on October 1 each year and remains open through the following June 30. You file it at fafsa.gov, the official Department of Education website. The form asks for your personal information, your parents' information (if you're a dependent student), and your financial details — usually from the previous tax year.

You'll need a Federal Student Aid (FSA) ID to sign in. This is a username and password you create at studentaid.gov; it's separate from your FAFSA.gov account. If you're a dependent student, at least one parent must also have an FSA ID to sign the FAFSA. If you're an independent student or a graduate student, only you need to sign.

The FAFSA takes 10 to 15 minutes to complete if you have your documents ready. Most students use the IRS Data Retrieval Tool, which pulls your tax information directly from the IRS into the FAFSA — this is faster and more accurate than typing numbers in yourself. To use it, you'll need to authorize the IRS to share your data. If you can't use the Data Retrieval Tool, you can enter your tax information manually, but you'll need your tax return, W-2s, or other income documents in front of you.

What documents you need before you start

Gather these before you sit down to file the FAFSA. You'll need your Social Security number, your date of birth, and your driver's license or state ID number. You'll also need proof that you're a U.S. citizen, national, or may be able to access noncitizen — a Social Security number usually counts as proof of citizenship, but if you're an may be able to access noncitizen you'll need your Alien Registration Number or I-94 number.

For financial information, have your most recent tax return ready, along with any W-2s, 1099s, or other income documents. If you're a dependent student, you'll need your parents' tax information too. If you haven't filed taxes yet or your income changed significantly, you can estimate your income on the FAFSA — the school will verify it later if needed.

If you're a dependent student, you'll also need your parents' FSA IDs so they can sign the FAFSA electronically. If they don't have FSA IDs yet, they'll need to create them at studentaid.gov before you file.

What happens after you submit the FAFSA

The Department of Education processes your FAFSA and sends you a Student Aid Report (SAR), usually within three to five business days. The SAR shows your Expected Family Contribution (EFC) — the amount the government thinks you and your family can pay toward education costs. This number is used to calculate how much federal aid you're may have access to to receive.

Your school also receives your FAFSA information and uses it to build a financial aid package. This package includes federal loans, grants, work-study, and sometimes scholarships. The school will send you a financial aid offer letter that lists exactly what they're offering you. This letter is not a bill — it's an offer. You choose which loans and aid to accept.

If there's an error on your SAR or your financial situation changed, you can make corrections on fafsa.gov. The school can also make corrections on your behalf if they find an error when they process your FAFSA.

Accepting a federal loan offer from your school

When you receive your financial aid offer letter, log into your school's financial aid portal and accept the loans you want. You don't have to accept everything the school offers — you can decline loans and accept only grants or work-study if you prefer. Once you accept a loan, you'll be asked to complete entrance counseling, a short online course that explains how federal loans work, your repayment obligations, and what happens if you default.

After entrance counseling, you'll sign a Master Promissory Note (MPN), a legal document that says you promise to repay the loan according to the terms. For Direct Loans, you sign this at studentaid.gov. You only need to sign an MPN once per loan type — if you borrow again the next year, you don't sign a new one unless it expires (which is usually 10 years after you sign).

Once you've completed entrance counseling and signed the MPN, your school will disburse the loan money. This usually happens a few days before classes start, though timing varies by school. The money goes to your school account first to pay tuition and fees; any leftover amount is sent to you by check or direct deposit.

Applying for private student loans

Private loans don't use the FAFSA. Instead, you apply directly to the lender — Common private lenders include Sallie Mae, Earnest, SoFi, and Discover, though many banks and credit unions also offer private loans. Each lender has its own website where you can start an application.

The application asks for your personal information, your school and program details, how much you want to borrow, and your financial information. Most lenders will do a soft credit check first (which doesn't hurt your credit score) to give you an estimate of your interest rate. If you want to move forward, they'll do a hard credit check, which does appear on your credit report.

Private lenders typically want to see a credit score of 650 or higher, though some will work with lower scores if you have a co-signer. A co-signer is someone — usually a parent or relative — who agrees to repay the loan if you don't. The co-signer's credit and income are considered alongside yours, which can improve your chances of being approved and lower your interest rate.

If you're approved, the lender sends you a loan agreement that shows your interest rate, fees, repayment terms, and other details. You review and sign it, and the lender disburses the money directly to your school. The timeline from application to disbursement is usually one to two weeks, though it can be faster.

Timing and deadlines to know

The FAFSA opens October 1 and closes June 30 the following year. However, schools and states often have earlier deadlines — many schools want your FAFSA filed by February or March to award grants and work-study. Filing early also means you'll know your aid package sooner and have time to explore private loans if you need additional money.

If you miss your school's priority deadline, you can still file the FAFSA, but you may receive less grant aid or have fewer work-study hours. Private lenders don't have set deadlines, but it's wise to apply before the semester starts so you know whether you'll have the money you need.

If you're a returning student, you'll file a new FAFSA each year. Your school will tell you when to file and what the deadline is for your program.

Frequently Asked Questions

Do I have to file the FAFSA even if I think my family makes too much money?

Yes. The FAFSA determines may be able to access for federal loans regardless of income, and some grants and work-study don't have income limits. Filing the FAFSA also makes you may be able to access for private loans, since many private lenders want to see your FAFSA results. The only way to know what you may have access to for is to file.

What if I'm an independent student or my parents won't provide their information?

If you're independent — usually meaning you're over 24, married, a graduate student, a veteran, or have dependents — you only need to provide your own information on the FAFSA, not your parents'. If you're a dependent student but your parents refuse to help, talk to your school's financial aid office; some schools can override the dependency status in limited situations.

Can I borrow more than one type of loan?

Yes. Most students borrow federal loans first (because they have lower interest rates and more protections), then add a private loan if they need more money. You can accept federal loans from your school and separately apply for a private loan from a lender. Just make sure you don't borrow more than your total cost of attendance, since you'll have to repay everything.

What if I'm denied for a private loan?

If a private lender denies you, try applying with a co-signer or to a different lender — approval standards vary. You can also focus on federal loans, which don't require a credit check. If you've already maxed out federal loans, talk to your school's financial aid office about other options like payment plans or additional work-study.

When do I have to start repaying my loans?

Federal loans have a grace period — usually six months after you graduate or drop below half-time enrollment — before repayment starts. Private loans vary; some have a grace period and some don't. Check your loan agreement to see when your first payment is due. You can make payments during school if you want to reduce interest, but you're not required to.