How long does it take to get a student loan? Short answer: It takes about 1-3 weeks to process a federal student loan and 2-10 weeks to process a private student loan. But there is much more to know.
Many students end up taking out student loans. Whether that is federal or private loans, there is a waiting period before you receive the money. The application process and time required to process federal student loans are different from private student loans. So how long does it take to get a student loan?
How Long Does It Take To Get A Student Loan – Federal Student Loans
To obtain federal student loans, you must first file with the FAFSA. Filing the FAFSA is the only way to get federal student loans as well as merit-based grants and grants. We strongly encourage you to file the FAFSA regardless of your financial circumstances, and regardless of your eligibility for cash.
It takes approximately 1-3 weeks to process the FAFSA and put together a financial aid package tailored to your needs. If you agree to the loan amount and the terms, you must sign a Master Promissory Note agreeing to the loan terms, especially about repayment. Federal student loans will not be disbursed until this Master Promissory Note is signed.
In most cases, you can expect federal student loans to be paid out within 10 days of the first day of school. If you are a freshman and first-time borrower, there may be a 30-day delay in allocating funds. In this case, the money can be paid out 30 days after the 1st day of the payment term.
How Long Does It Take To Get A Student Loan – Private Student Loans
It may take 2-10 weeks for you or your university to receive the funds from the date your loan application is approved. If you take out a school-certified loan, the money is paid directly to the school where you are enrolled. If you take out a direct-to-consumer (or uncertified) loan, the money is deposited directly into your bank account.
Keep in mind that private student loans should be your last resort. File the FAFSA, apply for scholarships, take out federal student loans, before resorting to private loans. Private student loans are not as lenient as federal loans and often have higher interest rates.
How do I check the status of my loan?
When you apply for a student loan, you may want to keep an eye on your loan status along the way.
To check your loan status, follow these steps:
- Federal Student Loans: To verify your FAFSA status, log in to your FAFSA account and refer to the “My FAFSA” page. If your federal loans are approved, check with your loan administrator for disbursement status. If you need help or have questions, you can also call or email the financial assistance bureau for current information.
- Private Student Loans: For private student loans, contact the lender to verify loan status. Keep in mind that when applying for private student loans, it’s a good idea to compare as many lenders as possible to find the right loan for you. With site like Credible, you can easily view rates from multiple lenders in just three minutes without impacting your credit score.
There are generally no restrictions on how you spend student loan money as long as it is used for your education and living expenses while you are in school. But remember that you have to pay it back, so borrow only what you need. If you don’t need some of your student loans, you can always pay the extra amount right away instead of paying it off later.
Other things to keep in mind about loans
Many students, despite the number of grants and grants they receive, still have to take out student loans. If your university doesn’t offer enough federal student loans, here are a few things to keep in mind with private loans:
- Don’t feel pressured to commit to a private lender. Research and decide which loans and interest rates are best for you. Keep in mind that the loan can have major consequences for your financial situation after graduation.
- Whether you’re taking out a direct-to-consumer or uncertified loan, make sure you research where to spend your money. Just because the money goes straight to you doesn’t mean you can spend it on whatever you want. Only spend the money on education-related supplies such as textbooks.
- Delete only what you need and no more. Again, you have to pay back the money someday.
Knowing how long does it take to get a student loan is not a bad thing, in fact, if you know how long does it take to get a student loan will help you schedule your plans ahead without money being the problem.
We hope this post has answered your worry and you can go ahead and request your student loan now.