Your first step in applying for a federal student loan is to understand what's involved. It's part B of the ABCs of Borrowing Wisely.
Applying for state and federal financial aid
Completing and submitting the Free Application for Federal Student Aid (FAFSA) is your starting point for applying to most student financial aid programs. Be sure to go to www.fafsa.ed.gov if you are submitting it online.
Calculating expected contribution
Based on the information you provide on your FAFSA, the government estimates how much your family can afford to spend on college costs, known as the Expected Family Contribution (EFC).
Reviewing your Student Aid Report (SAR)
The government sends you a SAR, summarizing the information you provided on the FAFSA and indicating your EFC.
Evaluating your award letters
If you've applied for financial aid at the schools where you've been accepted, you will find out how much financial support the school is offering in an award letter.
Completing your student loan application
The FAFSA begins the federal financial aid process. If your award letter includes a Stafford Loan, you will need to complete a Master Promissory Note (MPN).
Receiving the loan proceeds
You've applied for the loan, it's been approved, and you've signed the promissory note. Then the federal student loan proceeds are sent to your school. |
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