What is a student loan?
A student loan is borrowed money you get from the federal government or a private lender to help pay for college costs.
How do you get a student loan?
According to studentaid.gov, to apply for a federal student loan, you must first complete and submit a Free Application for Federal Student Aid (FAFSA®) form. Based on the results of your FAFSA form, your college or career school will send you a financial aid offer, which may include federal student loans. For a private student loan, you can apply through a bank, credit union or online lender. Most private lenders will require borrowers to have good credit and an income to support loan payments. If you don’t meet those qualifications, you’ll need a co-signer who does.
Will I personally get money from a student loan?
Federal student loan money is sent to the financial aid office at your college or university and private student loan money is sent to either the borrower or the financial aid office. If you have money left over after tuition has been paid, that money will be refunded to the student to pay for any other college-related expenses.
What is the difference between a student loan and a scholarship?
Student loans are borrowed money and must be paid back, while scholarships and grants do not need to be repaid.
Can I get a student loan without my parents?
According to Saving for College, there are several ways college students can get student loans without a parent borrower or co-signer.12 These include:
- Federal student loans
- Increasing federal student loan limits by qualifying as an independent student
- Getting a private student loan with someone other than the parent as a co-signer
I can’t afford my student loan payment, what do I do?
You can contact your loan servicer and ask about one of the Income Driven Repayment Plans. The servicer will ask questions concerning your annual income, household size and other information to find a repayment plan that best fits your needs. If you are not able to make any payments due to hardship, you may also ask your servicer about deferment or forbearance options as well as other options to temporarily postpone payments until you are able to make payments again. To find out what company services your federal student loans, log into studentaid.gov.
Student loans provide one avenue for funding your education. Another way is through scholarships and grants.13 At Grand Canyon University (GCU), we offer generous scholarship opportunities to help make funding a private education affordable. Learn about the various ways to pay for college and discover which resource is best for you.
*According to studentaid.gov, non-need-based aid is financial aid that is not based on your expected family contribution. What matters is your cost of attendance and how much other assistance you’ve been awarded so far. For instance, if your cost of attendance is $16,000 and you’ve been awarded a total of $4,000 in need-based aid and private scholarships, you can get up to $12,000 in non-need-based aid.3 There are, however, borrowing limits for federal student loans, so not all your unmet financial need may be covered.
**Student loan forgiveness plans are subject to change based on Department of Education regulations.
Retrieved from:
1 EducationData.org, Average Student Loan Debt in July 2021
2 U.S. News & World Report, See 10 Years of Average Total Student Loan Debt in Sept. 2021
3 Federal Student Aid, Wondering How the Amount of Your Federal Student Aid Is Determined? in Sept. 2021
4The EFC Formula 2021-2022 in Sept. 2021
5 Credible.com, Average Student Loan Interest Rates in 2021 in Oct. 2021
6 Federal Student Aid, Public Service Loan Forgiveness (PSLF) in Sept. 2021
7 Federal Student Aid, Wondering Whether You Can Get your Federal Student Loans Forgiven for Your Service as a Teacher? in Sept. 2021
8 Federal Student Aid, Total and Permanent Disability Discharge in Sept. 2021
9 Federal Student Aid, Choose the Federal Student Loan Repayment Plan That’s Best for You in Sept. 2021
10 Sallie Mae, Refinancing Your Student Loans in May 2022
11 NerdWallet, Student Loan Debt Statistics: 2021 in Sept. 2021
12 Saving for College, How to Get a Student Loan Without Parental Help in Sept. 2021
13 Federal Student Aid, What Kinds of Scholarships Are Available? in Sept. 2021