The federal student loan application starts with the FAFSA, not with your school

To borrow federal student loans, you must first complete the Free Application for Federal Student Aid (FAFSA). This single form goes to the U.S. Department of Education, not to your school. Your school then uses the FAFSA results to tell you how much federal aid you may receive. You cannot skip the FAFSA and go straight to a lender — federal loans do not work that way.

The FAFSA opens on October 1 each year and remains open through June 30 of the following year. You submit it online at studentaid.gov, the official federal student aid website. You will need a Federal Student Aid ID (FSA ID) to sign in, which you create before you start the form. The form itself takes 20 to 40 minutes to complete if you have your tax documents ready.

After you submit the FAFSA, the Department of Education sends your results to your school within a few days to a few weeks. Your school's financial aid office then creates a financial aid package showing which federal loans you may borrow, how much, and under what terms. You do not accept or decline loans on the FAFSA itself — you do that through your school's financial aid portal.

Key Takeaways

  • You must complete the FAFSA at studentaid.gov before your school can offer you any federal loans.
  • You need an FSA ID to sign into the FAFSA, which you create for free before you start the application.
  • Your school receives your FAFSA results and builds a financial aid package showing which loans you may borrow.
  • You accept federal loans through your school's financial aid portal, not through the FAFSA itself.
  • The FAFSA opens October 1 each year; submitting early can help you receive your aid package sooner.

Creating your FSA ID and gathering documents you will need

Before you open the FAFSA, you must create an FSA ID at studentaid.gov. This is your username and password for all federal student aid systems. You will use it to sign into the FAFSA, to check the status of your application, and later to manage your loans. Creating an FSA ID takes about 10 minutes and requires only an email address and a password you choose.

Have these documents ready before you start the FAFSA itself. If you are a dependent student (claimed on a parent's tax return), you will need your parent's Social Security number, date of birth, and tax information. If you are independent, you need only your own. You will also need your driver's license number or state ID number, your Alien Registration number if you are not a U.S. citizen, and your school code — a six-digit number your school provides or that you can find on the FAFSA website. If you have already filed taxes for the year, have your tax return or tax transcript available; if not, you can estimate your income and update it later.

If you are a dependent student, your parent will also need to create an FSA ID to sign the FAFSA electronically. Your parent does not need to fill out a separate form — they sign the form you complete. If your parents are divorced or separated, only the parent who claims you as a dependent on their taxes needs to sign.

Filling out the FAFSA form itself

The FAFSA asks for personal information, family income, assets, and school enrollment plans. The form is divided into sections. Start with your name, date of birth, Social Security number, and contact information. Then answer questions about your citizenship status, whether you have ever been convicted of a drug offense (which can affect loan may be able to access), and whether you are male and required to register with Selective Service.

Next, the form asks about your dependency status — whether you are claimed as a dependent on a parent's tax return. Your answer determines whether you report only your own income or your parent's income as well. If you are dependent, you will enter your parent's information. If you are independent, you report only your own. The form then asks about your assets, including savings and investments (but not your home or car).

When you reach the school section, enter the school code for the college or university where you plan to enroll. You may add up to 10 schools. The Department of Education sends your FAFSA results to each school you list. If you are not yet sure which school you will attend, you can add schools later or leave this section blank and add them within a few days.

Review your answers before you submit. If you made an error, you can correct it after submission — the FAFSA is not locked once you submit. Sign the form electronically using your FSA ID. If you are dependent, your parent signs using their FSA ID. Submit the form, and you will receive a confirmation number. Save this number.

What happens after you submit the FAFSA

The Department of Education processes your FAFSA and generates a Student Aid Report (SAR), which summarizes the information you provided. You can view your SAR at studentaid.gov by signing in with your FSA ID. The SAR also includes your Expected Family Contribution (EFC) — now called the Student Aid Index (SAI) — a number your school uses to calculate how much federal aid you may receive.

Your school receives your FAFSA results electronically and uses them to build your financial aid package. This package lists the types and amounts of federal loans, grants, and work-study funds you may receive. Your school sends this package to you through your financial aid portal, usually within one to three weeks of your FAFSA submission, though timing varies by school.

You do not automatically receive the loans listed in your package. You must accept them. Log into your school's financial aid portal, review the package, and accept the loans you want. You may accept some loans and decline others. For example, you might accept a subsidized loan but decline an unsubsidized loan if you prefer to borrow less.

Accepting federal loans through your school's financial aid portal

Your school's financial aid office sends you a link to your financial aid portal, usually by email. Log in and find your financial aid package for the current academic year. The package typically shows federal loans in this order: Direct Subsidized Loans (the federal government pays interest while you are in school), Direct Unsubsidized Loans (you pay all interest), and Direct PLUS Loans (for parents or graduate students).

Each loan type shows the amount offered and the interest rate set by the federal government. Read the terms carefully. Subsidized loans have a lower interest rate and do not accrue interest while you are enrolled at least half-time. Unsubsidized loans accrue interest immediately, even while you are in school. PLUS loans have a higher interest rate and require a credit check.

To accept a loan, click the checkbox next to it and confirm. Your school then sends your loan information to a federal loan servicer, which manages the loan throughout repayment. You will receive loan documents from the servicer, including a Master Promissory Note (MPN) — a legal document you sign agreeing to repay the loan. You may sign this electronically or by mail, depending on your servicer's process.

Completing entrance counseling and signing loan documents

Before your school disburses (releases) federal loans, you must complete entrance counseling. This is a short online course, usually 20 to 30 minutes, that explains how federal loans work, your repayment obligations, and what happens if you default. You complete entrance counseling at studentaid.gov or through your school's financial aid portal. You only do this once per school, even if you borrow multiple loans.

You must also sign a Master Promissory Note (MPN) for each type of loan you accept. The MPN is a legal contract between you and the federal government. It states the loan amount, interest rate, repayment terms, and your obligations. You can sign the MPN electronically at studentaid.gov or through your loan servicer's website. Some schools require you to sign in person at their financial aid office, though this is less common.

Once you have completed entrance counseling and signed the MPN, your school can disburse the loan. Disbursement usually happens in two installments per academic year — one at the start of each semester. Your school deposits the money into your student account and uses it to pay tuition, fees, and room and board. Any remaining balance is returned to you, usually by check or direct deposit.

Correcting errors and updating your FAFSA after submission

If you made a mistake on your FAFSA or your financial situation changed, you can correct it. Log into studentaid.gov with your FSA ID, find your FAFSA, and click "Make Corrections." Update the information and resubmit. The Department of Education will reprocess your FAFSA and send updated results to your school. Your school will then recalculate your financial aid package.

Common corrections include updating your income if you filed taxes after submitting the FAFSA, adding or removing schools, or changing your enrollment status (full-time to part-time, for example). If your parents' marital status changed or you became independent, you may need to resubmit the entire FAFSA rather than just correct specific fields — contact your school's financial aid office to confirm.

You can make corrections at any time during the FAFSA year (October 1 through June 30). However, corrections made after your school has already created your financial aid package may not be reflected in that package until the next academic year. Ask your school's financial aid office whether they will recalculate your package based on your corrections.

Understanding federal loan types and repayment basics

The federal government offers several loan types, each with different terms. Direct Subsidized Loans are available to undergraduate students with financial need. The government pays the interest while you are in school at least half-time. Direct Unsubsidized Loans are available to undergraduates and graduate students regardless of need. You pay all interest, though you can defer payments while in school — the interest will be added to your loan balance.

Direct PLUS Loans are for parents borrowing on behalf of undergraduate children or for graduate students. These loans have a higher interest rate and require a credit check. Direct Consolidation Loans allow you to combine multiple federal loans into one loan with a single monthly payment.

Repayment begins six months after you graduate, leave school, or drop below half-time enrollment — this period is called the grace period. The federal government offers several repayment plans: Standard Repayment (fixed payments over 10 years), Income-Driven Repayment (payments based on your income), Graduated Repayment (payments start low and increase), and Extended Repayment (payments spread over 25 years). You choose your repayment plan after graduation through your loan servicer's website.

Frequently Asked Questions

Do I need to reapply for federal loans every year?

Yes. You must submit a new FAFSA each academic year you want to borrow. The FAFSA opens October 1 and closes June 30. If you submit after your school's priority deadline (usually in March), you may receive your aid package later, which can delay disbursement. Submit as early as possible each fall.

What if I do not have a Social Security number?

You must have a valid Social Security number to borrow federal student loans. If you are an international student or do not have a Social Security number, you are not may be able to access for federal loans. You may be able to borrow private student loans instead, though these have different terms and usually require a credit check or a cosigner.

Can I borrow more than the amount my school offers?

Federal loan limits are set by law and vary by year in school and dependency status. Undergraduate dependent students may borrow up to $5,500 to $7,500 per year, depending on year. Independent students and graduate students may borrow more. Your school cannot offer you more than the federal limit. If you need additional funds, you may borrow private student loans, though these are not backed by the federal government.

What if my parents refuse to complete the FAFSA?

If you are a dependent student and your parents refuse to provide information or sign the FAFSA, you cannot complete it. Contact your school's financial aid office to ask about dependency override — a process where your school may declare you independent for financial aid purposes if you have documented unusual circumstances. This is rare and requires proof of your situation.

Can I decline federal loans and borrow only grants?

Yes. Grants (such as the Pell Grant) do not require repayment. If your financial aid package includes grants, you may accept only the grants and decline all loans. However, grants alone may not cover your full cost of attendance. If you decline loans and still have unmet costs, you will need to find other funding sources, such as private loans, scholarships, or work-study.