Use the student loan comparison tools on SimpleTuition to shop around for the loan that’s right for you. Compare rates, monthly payment, total cost of loan, borrower benefits and more. When you have decided on a loan, either click on “apply” to be taken to the online application, or click on “call” to see a phone number where you can call to apply over the phone. The approval and processing of applications varies greatly from lender to lender, so it is difficult to say how long it will take. Some lenders offer e-signature, which will allow you to complete the process online and receive your funds faster. In order 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 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.

There are many different kinds of student loans. First, know the difference between federal and private student loans. You should always use federal loans first. They carry lower, fixed interest rates and often have better terms than private (or alternative) loans. Second, know the difference between the types of loans in your financial aid award.

• Subsidized Stafford Loans: a federal loan for which the government pays interest while you are in school
• Unsubsidized Stafford Loans: a federal loan for which you pay interest while you are in school
• PLUS loans: federal loans for graduate students and parents of undergraduate students
• Private loans: loans from banks or other non-government sources

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 than government or federal loans. You should also know your credit score. The lower your score, the higher your rate will likely be on a private loan. If you are an undergraduate student, you will almost definitely need a co-signer to be approved for a private loan. Fees and penalties can be higher with private loans than with government-backed, or federal loans, and your repayment terms may not be as favorable.

When choosing a student loan, investigate your options carefully. Consider the following:

• Total cost of the loan (after all of the interest and fees have accumulated)
• APR, or annual percentage rate, and fees
• Borrower benefits (such as cash back or interest rate reductions if you make payments on time)
• Deferment options

There are two main types of student loans for undergraduate and graduate students – federal loans and private loans. Federal loans are either federally funded or federally backed (or insured) student loans.

Federal Perkins Loans:

• Taken out in the student’s name
• Fixed 5% interest rate.
• Maximum award of $4,000 per undergraduate year.
• School-awarded.
• Very limited availability.

Federal Stafford Loans: 

• Taken out in the student’s name
• Are usually borrowed through private lenders.
• The student must be enrolled at least half-time.
• Interest rate is fixed at 6.8%.
• Award limits are based on the student’s year in school and dependency status.
• Repayment normally starts six months after leaving school (or attending less than half-time).
• There are two types of Stafford Loans - subsidized (for which you must demonstrate financial need and the interest is paid by the federal government while you are in school) and unsubsidized (which is not based on need, but you are responsible for all the interest that accrues).

Federal PLUS Loans (Parent Loans for Undergraduate Students): 

• The student must be a dependent, undergraduate
• A credit check (an inquiry into credit history and credit rating) is required.
• You do not have to show financial need to qualify.
• Can borrow up to the total cost of attendance, minus any other aid you receive.
• The loan is not subsidized (the government pays no interest).
• Repayment normally starts 60 days after full disbursement of the loan. However, some lenders may enable borrowers to defer payments while the student is enrolled.

Private Loans:

• Taken out in the student’s name, usually with the parent as a co-signer, or in the parent’s name
• Are borrowed through private entities, banks, credit unions or lending companies
• Interest rates can vary
• Can borrow up to the total cost of attendance, less other financial aid
• Interest can be capitalized (added to the loan principal) more often, increasing the amount of money you ultimately are charged for borrowing.
• Approval and terms for private loans are based on credit history. If your rating is bad or non-existent, you might need a co-signer to qualify. Poor or minimal credit may also result in a higher interest rate on your loan.

Yes. A student's natural mother or father, adoptive parent, or legal guardian is eligible to borrow a PLUS loan. If a stepparent is an adoptive parent or a legal guardian, he or she can also take out a PLUS loan. Additionally, there are many private loans available for sponsors of students, which can include any credit-worthy individual of majority age willing to take on the financial responsibility of the loan.

There are many good reasons to co-sign on a student loan for your child. You will help him or her build a credit history, and help him or her qualify for a loan they wouldn't be able to get on their own. When you agree to co-sign, you are representing to the lender that you will make the payments if your child does not. The loan's payment history becomes part of your credit history and will show up on your credit reports.