The Importance Of The FAFSA When Acquiring Student Loans

College, as most people are well aware, is an expensive place to go. The situation is tricky for many people because they need to go to college in order to obtain the education they need to fulfill their career dreams and earn a great salary, but many people cannot afford college; leaving you wondering how you will ever get ahead in life if you need an education to earn a good salary but you haven't the money to get an education. This is where student loans are important. For those that do not have enough scholarships and grants - or the personal funds - to pay for college, student loans are a great alternative.

There are two kinds of loans; there are federal loans and private loans for students. There is a big difference between the two. Federal loans are offered to every student that is enrolled in college at least part time. The private loans are only available to those that have excellent credit and fill out a loan application. To obtain a private student loan, you will have your credit pulled and your decision made based on your credit score. While filling out a student loan application for a private loan is simple, it is difficult to get a private student loan if your credit is not perfect. You do have the option of asking a relative or friend to co-sign for a student loan on your behalf, but if they don't have perfect credit or are unwilling to co-sign, your chances of getting a private student loan to cover college expenses such as tuition and books is very slim.

Fortunately, federal college loans are available to anyone and do not require a credit check. What a federal school loan does require is a FAFSA - the Free Application for Federal Student Aid. Without filling out the FAFSA, you are not eligible for a federal college loan. The FAFSA is very important for those wishing to obtain a federal school loan. The FAFSA is available online or you can pick up an application at any college campus. The application is required to be filed at different times for each different school in each different state, but the sooner it is filled out, the better. The information required on the FAFSA is used so the government can issue your student aid award and provide you with the funds you need to go to college.

On the FAFSA, you will need to provide your name, your address, your Social Security Number and your school code, which can be obtained on the FAFSA website by performing a simple search or by asking anyone that works at the college where you will be in attendance. Additionally, you will be asked to provide your financial information from your most recent federal income tax return. If you are a dependent student you will need to provide your parent's financial information. Once your application is submitted, your school will be notified of the amount you are eligible to receive. The school will receive your funds at the beginning of each semester and remove the amount that covers your tuition, refunding the rest to you. From there, you may use the extra funds for books and other college expenses.

Did you find this article helpful? If so, learn more about student loans without cosigner or about student loans for bad credit by checking out a great web resource over at http://studentloansolver.com/.


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