The application starts with the FAFSA, not with your school

To borrow federal student money, you fill out the Free Application for Federal Student Aid (FAFSA) first. This single form tells the federal government about your finances, and it determines how much you can borrow across all federal loan programs. You do not apply to individual loan types — the FAFSA is the gateway that makes you may be able to access for any federal loan at all.

The FAFSA opens October 1 each year and stays open through the following June 30. You submit it online at studentaid.gov, the official federal student aid website. After you submit, the Department of Education processes your information and sends you a Student Aid Report (SAR) that shows what they found. Your school then uses that SAR to build your financial aid package, which may include federal loans, grants, or work-study.

You need a Federal Student Aid ID (username and password) before you start the FAFSA. If you do not have one, create it at studentaid.gov before you begin the application. If you are a dependent student, at least one parent will also need an FSA ID to sign the form electronically.

Key Takeaways

  • The FAFSA is the required first step for all federal student loans; you cannot borrow without submitting it.
  • You apply at studentaid.gov, and the form opens October 1 each year and closes June 30 the following year.
  • After the Department of Education processes your FAFSA, your school receives the results and builds your aid package, which may include federal loans.
  • You will need a Federal Student Aid ID for yourself, and if you are a dependent, at least one parent will need one too.
  • Once your school offers you a loan, you sign a Master Promissory Note (MPN) and complete entrance counseling before the money is disbursed.

What information you need to gather before starting

Have your Social Security number, date of birth, and driver's license or state ID ready. You will also need your Alien Registration number if you are not a U.S. citizen. The form asks for tax information, so gather your most recent tax return or IRS transcript — if you filed taxes, you can link your return directly through the IRS Data Retrieval Tool, which fills in your income automatically and reduces errors.

If you did not file taxes, bring W-2 forms, 1099 forms, or other income records. If you are a dependent student, you will need one parent's information as well. Have your school codes ready too — you can search for your school's code on the FAFSA website, and you can list up to 10 schools to receive your information.

The entire FAFSA typically takes 30 to 45 minutes to complete if you have your documents in front of you. If you get stuck, studentaid.gov has a help section, and your school's financial aid office can walk you through specific questions.

How your school determines which loans you can receive

After your FAFSA is processed, your school's financial aid office receives your information and calculates your Expected Family Contribution (EFC) — now called the Student Aid Index (SAI). This number represents how much the government thinks you and your family can pay toward school costs. Your school subtracts this from the total cost of attendance to determine your financial need.

Based on that need and your enrollment status (full-time or part-time), your school decides how much you can borrow in federal loans. Undergraduate students can borrow different amounts than graduate students, and dependent students have lower limits than independent ones. Your school will send you a financial aid package that lists the loans being offered, the amounts, and the interest rates.

Federal loans come in several types: Direct Subsidized Loans (the government pays interest while you are in school), Direct Unsubsidized Loans (interest accrues from day one), and Direct PLUS Loans (for parents or graduate students with stronger credit). Your school decides which types to offer based on your need and your status.

Signing the Master Promissory Note and completing counseling

Once you accept a loan offer from your school, you must sign a Master Promissory Note (MPN). This is a legal contract between you and the Department of Education that says you will repay the loan. You sign it electronically through your school's financial aid portal or through studentaid.gov. If you are borrowing for the first time, you sign one MPN that covers all future loans from that school; if you have already borrowed, you may not need to sign again.

You must also complete entrance counseling, a short online course that explains how federal loans work, what your repayment options are, and what happens if you default. This takes about 30 minutes and is required before your school can disburse any money. You complete it through studentaid.gov or through your school's portal.

After you sign the MPN and finish counseling, your school disburses the loan money. For undergraduate loans, the school typically splits the money into two payments — one at the start of each semester. Graduate loans may disburse differently depending on your school's schedule.

What happens if you are denied or receive less than you need

If your FAFSA shows you have too much family income or assets, you may not be offered federal loans, or you may be offered less than you need. In that case, you have several options. You can appeal your financial aid decision to your school's financial aid office if your circumstances have changed since you filed the FAFSA (a job loss, medical emergency, or other significant change). Your school can adjust your SAI if they find a valid reason.

You can also borrow a Direct PLUS Loan if you are a parent or graduate student, though this requires a credit check and typically carries a higher interest rate. If you do not meet the credit requirements for a PLUS loan, you may be able to get one with an endorser (someone who co-signs). Private student loans are another option, though they do not have the same protections as federal loans.

If you are an independent student or your parents do not meet credit requirements, make sure you have submitted the FAFSA correctly and that your school has all the information they need. Contact your school's financial aid office to review your file.

Timeline: when to apply and when money arrives

The FAFSA opens October 1 and you should submit it as early as possible. Schools process applications on a rolling basis, so earlier submissions often mean faster aid packages and better loan availability. If you miss the October deadline, you can still submit through June 30, but some schools may have run out of certain loan types or may not have funds left for the academic year.

After you submit the FAFSA, the Department of Education typically processes it within three to five business days. Your school then receives your information and builds your aid package, which usually takes one to two weeks. Once your school sends you the package and you accept the loans, you sign the MPN and complete counseling. Disbursement usually happens within one to two weeks after that, though some schools disburse on a set schedule tied to the semester start date.

For the 2024–2025 school year, the FAFSA opened October 1, 2023, and closes June 30, 2025. For the 2025–2026 school year, it opens October 1, 2024. Check your school's financial aid deadline — many schools have their own earlier cutoff dates for priority consideration.

What to do if you have questions during the process

Your school's financial aid office is your first stop for questions about your specific aid package, loan amounts, or next steps. They can see your FAFSA information, explain why you were offered certain loans, and help you understand your options. You can reach them by phone, email, or in person during business hours.

For questions about the FAFSA itself, studentaid.gov has a help section and a live chat option during business hours. You can also call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you believe there was an error on your FAFSA, you can make corrections through your studentaid.gov account, and your school will receive the updated information.

Keep copies of everything: your FAFSA confirmation, your Student Aid Report, your financial aid package, and your MPN. These documents matter if you ever need to dispute a loan amount, apply for forgiveness, or change your repayment plan.

Frequently Asked Questions

Do I have to apply every year?

Yes. The FAFSA is an annual application, and you must submit a new one each school year to remain may be able to access for federal loans. Your financial situation may change, and schools use the current FAFSA to determine your aid package for that year. Set a reminder for October 1 so you do not miss the opening date.

What if I am a parent wanting to borrow for my child?

Parents borrow through the Direct PLUS Loan program. Your child must first submit a FAFSA, and then you can apply for a PLUS loan through your school's financial aid office or at studentaid.gov. PLUS loans require a credit check, and the interest rate is higher than undergraduate loans. If you are denied due to credit, you may be able to add an endorser.

Can I change my loan type after my school offers it to me?

You can decline loans your school offers and request different types instead, but you are limited by what your school makes available and by federal borrowing limits. Contact your financial aid office to discuss other options before you accept or decline the package they sent you.

What if I submitted my FAFSA but my school says they never received it?

Log into your studentaid.gov account and check your FAFSA status. If it shows "submitted," the Department of Education processed it. Your school may not have received it yet if processing is slow, or you may not have listed your school's code on the form. Add your school's code to your FAFSA through your account, and it will be sent to them. Contact your school's financial aid office with your FAFSA confirmation number.

Do I have to borrow the full amount my school offers?

No. You can accept part of the loan package and decline the rest. If your school offers you $5,000 in loans but you only need $3,000, you can accept $3,000 and decline the other $2,000. You will only owe back what you actually borrow. Contact your financial aid office to adjust your loan acceptance.