FAFSA & Loans

Smart Advice for Applying for Student Loans 

1️⃣ Start with the FAFSA

• Fill out the Free Application for Federal Student Aid (FAFSA) at fafsa.gov.

• Opens in December for the next school year.

• It’s your key to federal loans, grants, and work-study programs.

2️⃣ Choose Federal Loans First

Federal loans have lower interest and better repayment options than private loans.

• Subsidized Loans – Based on financial need. The government pays interest while you’re in school.

• Unsubsidized Loans – Available to most students. You pay the interest (but it’s still lower than private).

• PLUS Loans – For parents or grad students. Requires a credit check.

3️⃣ Borrow Only What You Really Need

• You don’t have to take the full loan amount offered.

• Look at what you actually need for tuition, books, housing, etc.

• Less debt now = less stress later!

4️⃣ Accept Your Loans Through Your College

• After you get your financial aid offer, log in to your school’s student portal.

• Choose which loans to accept.

• First-time borrowers will also need to:
  ✅ Do entrance counseling
  ✅ Sign a Master Promissory Note (MPN)

5️⃣ Use Private Loans Only If Necessary

• If federal aid doesn’t cover everything, compare private lenders carefully.

• Look at interest rates, fees, and repayment options.

• Try to avoid borrowing from private lenders unless it’s your last option.

6️⃣ Know Your Repayment Options

• Most federal loans give you a 6-month grace period after graduation.

• You can apply for income-driven repayment, loan forgiveness, and deferment if needed.

• Private loans don’t usually offer these benefits.

✅ Quick Tips Recap:
✔ File FAFSA early
✔ Stick with federal loans first
✔ Only borrow what you truly need
✔ Finish all required loan paperwork
✔ Understand how and when to repay