Loan Requirements

Student loans make it possible for many who otherwise couldn't attend college to attend. Between government and private loans, around $80 billion is borrowed through student loans each year. Just because you receive a student loan, it does not mean your work is done.

Deadlines
You'll need to fill out a new FAFSA for each year you're in school. This will determine how much you can borrow from federal government loan programs, including Stafford and Perkins. Keep your eye on deadlines. Although there aren't priority deadlines for Federal PLUS Loans, unsubsidized Stafford Loans, or personal loans, make sure to apply in time to have the funds ready to meet your educational expenses.

Enrollment Status
Changing your enrollment status may affect your student loan eligibility. You must be enrolled at least half time to remain eligible for Federal loans. If you drop below half time, you will have to begin repayment on a Stafford Loan.

Interest Rates
As you begin your undergraduate college program, you might not be thinking about the interest rates on your loans. With private loans, beware of adjustable rates; if you choose an adjustable rate, make sure there's a rate maximum over the life of the loan. A fixed rate loan does not change with a fluctuating market, but the rate might be high that an adjustable rate. Some lenders may reduce the interest rate for preferred customers or if you make payments through direct deposit. Shop around to get the best rates.

Looking Ahead
Each year's loan is considered separately, often with different interest rates. Interest rates may all be different between loan programs, such as Perkins versus Stafford. After you graduate or otherwise leave college, you have a chance to apply for a Consolidation Loan to combine your educational loans into one consolidation loan. It's important to shop around. If the current interest rate is high, you might consider waiting for it to drop. Talk to your lender if you're unsure. Once you consolidate your loans, you cannot do it again, and you may be stuck with a high interest rate for the remainder of the loan.

Educating yourself now about your student loan should reduce your financial stress as you begin your career.