How Long Does It Take To Apply For Student Loans

Last Updated on August 25, 2023

Applying for student loans can be a time-consuming process. But it’s not impossible.

How long does it take to apply for student loans?

The answer depends on your situation, but the good news is that there are ways to make the application process faster and easier.

First, let’s take a look at some of the factors that determine how long you’ll have to wait before you can get your funds.

How Long Does It Take To Apply For Student Loans

With federal student loans from the U.S. Department of Education, it can take about one to three weeks for your Free Application for Federal Student Aid (FAFSA) to be processed, and within that time a financial aid package is put together for the individual student. If you agree with the offered aid package and sign the Master Promissory Note, funds can be disbursed.

In most situations, federal student loans should be disbursed within 10 days of the first day of classes. For first-time borrowers, and also first-year students, there are sometimes delays in the disbursement of funds. If there is a delay, the funds may be allocated within 30 days after the first day of the payment period.

How Long Does It Take to Get Private Student Loans

Private student loans can vary significantly in the time it takes to receive funding because each individual lender varies in its approval and disbursement process. The time it takes for a school to receive the funds from a private lender can be anywhere from two to 10 weeks after a loan is approved.

There can also be differences in disbursement times based on whether you’re using a school-certified loan or direct-to-consumer loans, in which case the loan funds are deposited into your account rather than going directly to the school you’re attending.

Steps to Get Federal Student Loans

The general steps to apply for and receive federal loans include the following:

1) Complete the FAFSA

The FAFSA can be completed online at FAFSA.ed.gov. You can also complete the Renewal FAFSA if you are a returning student. What’s put on the FAFSA will be used to determine your financial aid offer. The school you attend can let you know how to accept part of the loan you’re offered or all of it.

2) Review Your Offer

Once you receive your financial aid award, which will likely include a Direct Subsidized Loan – if you’re eligible – and a Direct Unsubsidized Loan, you should review the letter carefully.

3) Complete Entrance Counseling

Before you can receive the funds from your loan, you have to complete entrance counseling. Your financial aid office can give you more information on your school’s requirements for entrance counseling. This is a way to ensure borrowers understand what their obligations are in terms of paying back a loan. Then you can sign the Master Promissory Note, which outlines the terms of the loan.

Steps to Get Private Student Loans

While the steps to get private loans can vary somewhat between lenders, the following are some general things you might expect.

1) Research Your Options

The first step with private student loans is to do thorough research. You will want to compare the interest rates and terms that are available. You might also check with the school you plan to attend because they might have preferred lenders they work with.

Once you decide on the loans you’ll apply for, make sure you give yourself plenty of time to receive them. With private student loans, the process may take as long as two months, so you want to ensure you’re planning ahead.

2) Decide if a Cosigner is Necessary

You should determine if you need a cosigner, and if so, who that person might be. Check your credit score, and since it’s likely you don’t have much credit history, having a cosigner can be helpful or even necessary for approval. If you don’t have a credit score or cosigner, you could consider taking out a private student loan without a cosigner.

3) Gather Paperwork for the Application

Gather the necessary paperwork to complete the student loan application. This can include your personal information, income information for your cosigner, monthly rent or mortgage for you or your cosigner, a copy of tax returns, employment information, and a list of assets.

A private lender may also want to have information for the school you plan to attend, including costs and what you’re going to study.

4) Submit the Application

Once you have all the necessary information and documentation, you can submit an application, which you may be able to do online. Once approved, you can accept the offer.

emergency student loans

What Are Emergency Student Loans?

Emergency student loans exist to help students avoid interruptions to their education. Though the circumstances for seeking emergency student loans vary by individual, it’s a frequent enough need that according to a study by NASPA, a national student affairs organization, 70% of two and four year schools have emergency aid programs in place. These programs are intended for urgent and short-term help to prevent students from leaving school due to unforeseen financial hardship.

Common causes for emergency student loans include:

  • Death in the family
  • Loss of a job/reduction in expected income
  • Natural disasters such as hurricanes and tornados
  • Loss of funds allocated for college expenses
  • Underestimating college costs
  • Pandemic

How to Get an Emergency Student Loan

If you’re looking to handle your financial emergency with a private student loan, after discussing options with your school, it’s time to look for a lender. We make it easy to find a lender. Simply enter your school in the box below to see if any of our partner lenders work with your college.

You may apply for private student loans at any time throughout the year. You will need to qualify for the private student loan, which generally means having a credit score of at least 680, a good debt-to-income ratio, and at least two years of employment history (or apply with a creditworthy cosigner). Funds will be certified by your school (to make sure you don’t exceed you cost of attendance minus other financial aid received) and then disbursed directly to your school. If you have an outstanding balance with your school your loan will be applied to those charges first, and then refund the remaining amount to you.

Emergency Student Loans Programs

When you’re in need of an emergency student loan, you need money fast. If you find yourself in a situation where you do not have enough money to pay for college related expenses, the first thing you should do is contact your school’s financial aid office. They are there to assist you. Sources of emergency aid include:

  • Your college or univeristy
  • Non-profit and educational organizations
  • The state in which you attend college
  • Federal aid program, including emergency funds made available due to national emergencies
  • Private student loans

Emergency student loans are a short-term loan option available to actively enrolled students. Funds are usually ineligible for use toward tuition. Instead, they’re meant to be used for unexpected family emergencies, like a death in the family, or financial hardships, like loss of housing or food insecurity.

The loans are typically offered by the school itself through the institution’s financial aid office; however, not all schools offer these loans. The terms of these quick student loans also differ between institutions.

Generally, students must be currently enrolled in the academic year in which they’re applying for the emergency student loan. They must also be in good standing with the college or university, provide documented proof of their urgent financial need and agree to repay the loan within the required period.

About the author

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