Student Loans

You have many options when it comes to student loans for higher education. A few things to keep in mind:

• Fill out the Free Application for Federal Student Aid (or FAFSA). Without it, you won’t have access to federal student loans – many of which are not based on need or your income.
• Always use federal loans first, such as the Perkins, Stafford, and PLUS loans. They carry lower, fixed interest rates and often have more favorable terms than private (or alternative) loans.
• If you need to use private loans, consider all of the costs. Private loans can have origination fees, different ways of compounding interest, and higher interest rates or APRs.
• Know your credit score. The lower your score, the higher your rate will likely be on a private loan. Most student borrowers will need a credit-worthy co-signer to be approved for a private student loan. Most private loans have variable interest rates (meaning they will fluctuate over time), while government-backed (or federal) loans have fixed interest rates and more lenient repayment terms.

Investigate your loan options carefully by considering the following:

• Total cost of the loan (after all of the interest and fees are taken into account)
• APR or annual percentage rate
• Borrower benefits (such as cash back or interest rate reductions for making on-time payments)
• Monthly payment
• Deferment options

If the name of your school is not found when searching for a loan on SimpleTuition, select “Other” from the list. In some cases, it may be possible that our database may not have any loans that match your criteria, or may not include loans approved for students enrolled at your school. We frequently add new lenders and loans, so please visit us again in the future, or check with the financial aid administrator at your school for more options.

The cost of attendance (COA) is a number (generally a yearly figure) that is designed to help summarize the various costs of attending a school that takes into account

1. tuition and fees
2. on-campus room and board (or an allowance for these amounts for off-campus students)
3. allowances for books, supplies, transportation, loan fees, and if applicable, dependent care,

It also generally includes various miscellaneous and personal expenses including an allowance for a purchase or rental of a personal computer and can also include additional costs related to a disability.

Most schools publish the COA annually in brochures and online college search sites, so it may help to check with some of these resources. Additionally, if you have unusual circumstances which have higher costs, it might help to discuss these with the financial aid office.

In order to complete an application for a private student loan with most lenders, you will need the following information:

• Your full name, social security number and date of birth
• Your permanent address and the number of years you have lived there (no P.O. boxes)
• The amount of your monthly rent or house payment
• Your home phone number
• Your current occupation and position
• The name of your employer and how long you have been employed by them
• The business phone number of your employer
• Your gross annual income
• The contact information for a reference (name, address, home/business phone number)
• The name of your school (or the school the student for whom the loan is for is attending)
• The social security number, contact and employment information for your co-signer (if applicable)

Applying for federal student loans may require somewhat less information, but does require completion of the FAFSA.

Once you decide on a lender and know how much you want to borrow, you can either apply online or call the lender directly and complete an application over the phone.

To complete an application for a student loan with most lenders, you will need the following information:

• Your full name, social security number and date of birth
• Your permanent address and the number of years you have lived there (no P.O. boxes)
• The amount of your monthly rent or house payment
• Your home phone number
• Your current occupation and position
• The name of your employer and how long you have been employed by them
• The business phone number of your employer
• Your gross annual income
• The contact information for a reference (name, address, home/business phone number)
• The name of your school (or the school the student for whom the loan is for is attending)
• The social security number, contact and employment information for your co-signer (if applicable)

After your application is approved, the lender may send a request to your school to verify your enrollment. If it is a federal loan that you have applied for, you will then be notified by the lender to complete a Master Promissory Note (MPN). Depending on the type of loan you requested, the funds may be sent directly to you or your school. If the school receives the funds, and additional proceeds remain, the school will mail you a refund check.