Where student loan applications actually happen

You apply for federal student loans through the Free Application for Federal Student Aid (FAFSA), which opens October 1 each year. You fill it out on fafsa.gov — that is the only official site. Your school receives your FAFSA information automatically, and the school's financial aid office then tells you what loans you may have access to for and how much.

Private student loans work differently: you apply directly to the lender (a bank, credit union, or online lender), not through a central form. Each lender has its own application process and sets its own terms. Federal loans come first because they have fixed interest rates and protections private loans do not have.

You cannot apply for a federal loan through a third-party website or service, no matter what they claim. If a site charges you to fill out the FAFSA or promises to "submit" it for you, that is a scam — the FAFSA itself is free.

Key Takeaways

  • Federal student loans require you to complete the FAFSA on fafsa.gov starting October 1 each year, and your school's financial aid office determines what you can borrow.
  • You will need your Social Security number, date of birth, driver's license or state ID, and tax information (yours and your parents' if you are a dependent) to complete the FAFSA.
  • Private loans require a separate application to each lender and usually require a credit check and a cosigner if you have no credit history.
  • Your school's financial aid office will contact you with a financial aid package showing federal loans, grants, and work-study options available to you.
  • Accepting a loan offer is not automatic — you must actively accept it through your school's financial aid portal or by signing a promissory note.

What you need before you start the FAFSA

Gather these documents before you log into fafsa.gov. If you are a dependent student (your parents claim you on taxes), you will need their information too. The FAFSA asks for tax data from the prior year — so if you are applying in October 2024, you will use 2023 tax information.

You need: your Social Security number, date of birth, driver's license or state ID number, and your prior-year tax return (yours and your parents' if applicable). If you filed taxes, have your return handy. If you did not file, you may still need to report income — the form will walk you through this. You also need to know your Expected Family Contribution (EFC), which the FAFSA calculates based on income and assets.

Create a Federal Student Aid (FSA) ID before you start. This is a username and password you use to sign into fafsa.gov and later to access your loan information. You can create one at studentaid.gov. If your parents need to sign your FAFSA (required if you are a dependent), they also need their own FSA ID.

The FAFSA form itself: what it asks and how long it takes

The FAFSA has roughly 100 questions split into sections on personal information, family background, income, assets, and school choices. Most people finish in 20 to 30 minutes if they have their documents ready. The form saves automatically, so you can stop and come back.

You will list up to 10 schools on the FAFSA. Your information goes to each one you name. If you are not sure which schools you are attending, you can add more later — your school's financial aid office can also add itself if you forget. The FAFSA does not lock you in; you can update your school list anytime before you submit.

After you submit, you receive a Student Aid Report (SAR) that shows what you reported and your Expected Family Contribution. Check this for errors — if your income is wrong or your family size is listed incorrectly, contact your school's financial aid office to correct it. Errors can change how much you are offered.

How your school determines your loan offer

Once your school receives your FAFSA, its financial aid office calculates your financial need: the cost of attendance minus your Expected Family Contribution. That number determines how much federal aid you can receive. The school then builds a financial aid package showing federal loans, federal grants (if you may have access to), work-study jobs, and sometimes institutional aid from the school itself.

The school sends you this package through your student portal or by mail. It will list the types of loans offered (usually Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduates), the amounts, and the interest rates. Federal loan interest rates are set by Congress and are the same at every school — currently 5.5% for undergraduate Direct Loans, though this changes yearly.

You do not have to accept the full amount offered. You can accept part of it, decline loans and take grants instead, or decline everything. If you need more money, you can ask your school's financial aid office to reconsider — sometimes they can increase your package if your circumstances have changed since you filed the FAFSA.

Accepting your federal loan offer and signing the promissory note

To actually receive a federal loan, you must accept it. Log into your school's financial aid portal, find your aid package, and select which loans you want. Some schools let you accept online; others mail you a promissory note to sign and return. The promissory note is a legal contract stating the loan amount, interest rate, and your obligation to repay.

Before you sign, read the note. It will state when repayment begins (usually six months after you graduate or drop below half-time enrollment), what your monthly payment will be, and what happens if you default. If anything is unclear, ask your school's financial aid office — they can explain it.

Once you accept and sign, the school's financial aid office sends your loan to the loan servicer (the company that collects your payments). The servicer will contact you with account details and repayment information. You can also track your loans anytime at studentaid.gov by logging in with your FSA ID.

Applying for private student loans

Private loans are separate from federal loans and require their own application. You apply directly to the lender — Common private lenders include Sallie Mae, Earnin, LendingClub, and Discover, though many banks and credit unions also offer them. Each has its own application form on its website.

Private lenders will run a credit check. If you have no credit history or poor credit, most require a cosigner (usually a parent) who agrees to repay if you do not. The lender sets the interest rate based on your credit score and the cosigner's credit — rates vary widely between lenders, so compare before you apply. Some private loans have variable interest rates that change over time; others are fixed.

Private loans should be a last resort after you have exhausted federal options. Federal loans have fixed rates, income-driven repayment plans, and forgiveness programs that private loans do not offer. Only borrow privately if federal loans do not cover your costs and you cannot cover the gap another way.

What happens after you are approved

For federal loans, your school disburses the money directly to your account to pay tuition, fees, and room and board. If money is left over, the school refunds it to you — usually by check or direct deposit. This happens at the start of each semester or term.

For private loans, the lender sends money to your school, which disburses it the same way. Some private lenders allow you to receive funds directly instead; ask before you apply if that matters to you.

Keep records of everything: your promissory notes, loan amounts, interest rates, and the names of your loan servicers. You will need this information when you start repayment and if you ever need to contact your lender about deferment, forbearance, or repayment plan changes.

Frequently Asked Questions

Can I apply for student loans if I have not been accepted to a school yet?

You can start the FAFSA before you are accepted, but you will not receive a loan offer until a school accepts you and you enroll. List schools you are considering on the FAFSA, and once you are accepted and decide to attend, contact that school's financial aid office to finalize your aid package.

What if I do not may have access to for federal loans?

Most students may have access to for at least some federal aid. If your Expected Family Contribution is very high, you may not may have access to for need-based grants, but you can still borrow federal Direct Unsubsidized Loans (which do not require financial need). Private loans are available to almost anyone with a cosigner, though interest rates may be higher.

Do I have to repay student loans if I drop out or do not finish my degree?

Yes. Repayment begins six months after you stop attending school at least half-time, whether you graduate or not. Contact your loan servicer immediately if you drop out — you may be able to defer payments while you are not in school, but you must request this.

Can I change my mind after I accept a loan?

Yes, within a limited time. Federal loans can usually be cancelled within a few days of disbursement if you contact your school's financial aid office. After that window closes, you would need to request a refund from your loan servicer. Private loans have different rules — check your lender's policy.

What if my family's financial situation changes after I file the FAFSA?

Contact your school's financial aid office and ask for a professional judgment review. If you have experienced a job loss, medical emergency, or other significant change, the office can recalculate your aid package. Bring documentation of the change — a termination letter, medical bills, or other proof.