Students loans are something that nearly every college student must rely on at one point during their college career. With rising costs of tuition and books and the shrinking size of financial aid programs, it is a must just to pay for the classes. Many students are concerned with needing a cosigner for a student loan. In some cases, this may happen, but in most a cosigner will not be required.
Federal Subsidized Student Loans
The Federal Government has a program which allows college students to borrow certain amounts depending on their grade level without a cosigner. There are subsidized and unsubsidized federal student loan programs. For these programs, a cosigner is not required. These loans are called the Federal Stafford Student Loans (www.staffordloan.com).
Requirements For A Student Loan
To get a student loan, you must first complete the Free Application for Federal Student Aid, also known as FAFSA. Information regarding this part of applying can be found at www.fafsa.ed.gov. This form will help students get the federal and state aid for which they qualify and also there is a box to check for interest in student loans.
How To Apply
Applying for a federally funded student loan is very simple. For most colleges, the financial aid office will recommend an amount that you should request. This will vary from college to college, so it’s best to check directly with the financial aid department. However, generally you will request the amount that you want to borrow up to the maximum that you are allowed. From there you will be required to fill out a Master Promissory Note for the institution funding the loan. Then the loan funds are sent directly to your school to pay for tuition or books or other supplies which you may need.
No Cosigner Required
For Federal Stafford Student Loans, no cosigner is required in the majority of cases. Students are entitled to borrow up to a certain amount which will depend on the amount of time they have completed at school. If further funds are required for schooling, there are options for private student loans or parent student loans which will generally require a cosigner unless one has a perfect credit rating.
Refunds Resulting From Student Loans
Again, each school has a different policy regarding excess amounts from student loans. Because of federal regulations however, they are required to release excess funds to you after a period of time. The regulations also require that the refund should be used for educational expenses. This can mean using the refund for a computer on which you will do school work, living expenses while attending school such as student apartment complex rental which is not paid directly to the school and other things such as that.
Repayment Of Student Loans
It is important to remember that while grants and scholarships are monies that do not have to be repaid, student loans must always be repaid. Generally, there is a six month grace period after you leave school or when you drop down below six credit hours and then repayment will begin. It’s important to work with your lender to ensure you can afford your payments. If there are problems with repaying, contact your lender for a forebearance or deferment of your payments for another six months.
