However, filing the FAFSA may allow for other aid sources (such as Stafford or Direct student loans) to be included in the financial aid package.
- tuition and fees
- on-campus room and board (or an allowance for these amounts for off-campus students)
- 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.
- 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 information and employment information for your co-signer (if applicable)
Some banks will send or express mail the necessary documents to you to complete the loan. As with federal student loans, you will be required to sign (or e-sign) a promissory note whereby you agree to accept the terms of the loan (rates, fees, APR, and repayment) and then repay it.
Understanding Education Loans
Education loans are used expressly for paying college costs such as tuition, room and board, and other expenses. There are several types of education loans, depending on the type of student for whom you are borrowing.
For Parents of Undergraduate and Graduate Students
- Federal loans in the student's name, such as Perkins and Stafford Loans. These are backed by the U.S. Government and feature low, fixed interest rates. Federal loans require the family to fill out the FAFSA (Free Application for Federal Student Aid). Remember to complete the FAFSA no matter what. Nearly every student will be eligible for a Stafford Loan, regardless of need. This is a very low-cost loan that should be used before turning to private supplemental borrowing. Perkins and Stafford Loans are available in limited borrowing amounts, so students and their families often need to find funding from other sources to supplement federal loans.
- Private student loans are taken out from banks, lending companies or other private entities, in the student's name or in the name of a parent or sponsor, usually with a co-signer. Private student loans have variable interest rates and often allow borrowing up to the full cost of attendance, less other aid received.
- PLUS (Parent Loan for Undergraduate Students) are federal student loans for parents of undergraduate students. PLUS loans have a fixed interest rate and are available to cover up to the full cost of attendance, less other aid received.
- Home equity loans are basically a second mortgage where the applicant's residence is used as collateral for a secure line of credit based on the available equity in the home. More about home equity loans.
For Parents of K-12 Private or Boarding School Students
- K-12 education loans are private loans taken out in the parent's name to cover the costs of a private school education. These loans have variable interest rates and can be used to cover the total cost of education. More about K-12 education loans.
How to Use the Student Loan Comparison Tools
Save time, energy and money by comparing multiple student loan options from a variety of leading lenders. Simply enter the amount you need to borrow and a little bit about the student, when the student loans are needed, and where your student goes to school to see a customized list of student loan options.
What to Look for in a Student Loan
Use the comparison tools on this site to consider all of the costs of a student loan, including fees and rates. Students should always borrow the most they can in federal loans first (such as Perkins, Stafford and PLUS) and then compare private student loans for the best rates, fees and costs.
Examine all of the attributes of each loan, such as:- the annual percentage rate (APR)
- the total cost of the loan
- the monthly payment
- the loan's borrower rewards
- student loan deferment options
Borrowers should also consider their own credit history and credit rating - little or no history or a low credit score means a student borrower will most likely need a co-signer to be qualified for a private student loan.
FAQs
Do I have to file the FAFSA before I apply for a PLUS loan?
No, the PLUS loan does not require completion of the FAFSA.
However, filing the FAFSA may allow for other aid sources (such as Stafford or Direct student loans) to be included in the financial aid package.
Useful information and insights on student loans, financial aid, college funding and student loan consolidation
Tips
Always fill out the FAFSA, even if you think you won't qualify for financial aid.
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