EDUCATION
Tips to get approved for a student loan quickly
Colleges are welcoming students back this month and there are few situations in which you can secure a student loan.
The application period for federal student loans has ended. You need to have submitted a Free Application for Federal Student Aid, or FAFSA, by the end of June 2023.
Students with outstanding debt from these loans are once again paying them back after a three-and-half year hiatus due to the debt moratorium.
The only other option for getting a student loan is a private loan. These can be applied for and ratified within hours if you meet the requirements. This is the only tip available; there are next to no alternatives unless you are sitting on a lot of money. In that case you wouldn’t be looking ofr a student loan anyway.
Applying for private student loans
First, students must be enrolled in a qualified education of higher learning. Typically, students attending four-year colleges and universities are eligible for private loans. However, those attending community colleges or trade schools may have fewer options for private loans.
In most cases, private student loans usually must be used to cover tuition and cannot be used by the borrower to cover other expenses like housing or food. In some cases, the company will pay the university directly, which means that the borrower never receives the funds directly.
When applying for a private loan, companies will often run a credit check and ask that proof of employment or income be provided. Depending on the lender, a credit score of at least 600 to 650 may be required to qualify.
If you don’t have a strong credit history, consider finding a creditworthy co-signer. A co-signer with a good credit score can improve your chances of approval and may help you secure a lower interest rate.
Private student loans can have both fixed an variable interest rates. With interest rates at a two-decade high neither is a particularly enticing option though you should check which is best for your financial position.
Are there any other options?
Check if you qualify for scholarships and grants. Even though many scholarship deadlines have passed, some organisations offer late-application opportunities.