May 21, 2021

How to Apply for Federal Student Loans

Chipper Help

These days, most students need to borrow money to pay for college. Being able to fully finance a college education by working is mostly a distant memory. Few students are capable of earning enough money to cover their college expenses while still attending classes. As a result, students are more likely to apply for student loans.

Among the options for student loans, federal loans are the most recommended. They have more borrower safeguards than private student loans, such as the right to move to an income-driven repayment plan if the borrower can't afford their monthly payments and deferments if they are out of work. If you want to learn how to apply for federal student loans to finance your education, keep reading!

Steps to Apply for a Federal Student Loan

Financial assistance is essential for the majority of students who choose to pursue higher education. One way to do so is by applying for a federal student loan. Here are the steps on how to go about it.

  1. To apply for a federal student loan, the applicant must first fill out and submit a Free Application for Federal Student Aid (FAFSA) form. Colleges use FAFSA data to determine the applicant's eligibility for federal aid. Many states and colleges also use it to grant their own assistance. The applicant will receive a Student Aid Report after submitting their application.
  2. Based on the results of the FAFSA form, the applicant will receive a financial aid offer from their college or career school, which could include student loans from the federal government. The aid offer outlines the types and amounts of financial aid the applicant will receive from a college as well as the projected costs for the year. If many schools admitted them, they should evaluate the costs and aid offers.
  3. Before receiving their loan funds, applicants need to undergo entrance counseling, which is a service that ensures they recognize their responsibility to repay the loan, and sign a Master Promissory Note, which agrees to the loan's terms.
  4. After the applicant receives their funding, their financial aid office will deduct their aid from the sum they owe the school, leaving them with a balance for other college expenses. Making adequate academic progress is one of the criteria for maintaining financial aid eligibility.

Benefits of Applying for a Federal Student Loan

As compared to other options for paying for college, federal student loans have several advantages:

  • Flexibility: Although any student loan needs to be repaid with interest, federal student loans have greater flexibility than private student loans. For instance, federal student loans allow the borrower to adjust their repayment options even after the funds have been released and defer loan payments if they can't afford to pay.
  • Strong credit history isn't needed: Most federal student loans do not require a good credit score, unlike loans from private lenders. This is particularly beneficial for those who recently finished high school and want to go to college but haven't established their own credit yet.
  • Doesn't require a cosigner: Many federal student loans do not consider the borrower's credit, so there is no need to register with a cosigner.
  • Payments can be based on salary: Income-driven or income-based repayment programs, which limit payments based on the borrower's income and family size, are available for some federal student loans.

The Bottom Line

Many students these days must borrow money to pay for college. Federal student loans are the most popular choice among student loan choices. Federal student loans have a range of benefits, including flexibility and fewer qualification requirements. Throughout this article, the steps in how to apply for student loans have been discussed. Learning how to apply for federal student loans is essential to financing your higher education.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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