How Long Does It Take to Get a Student Loan?

How long does it take to get a student loan? The answer may surprise you. Check out this blog post to find out how long the process takes from start to finish.

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The Application Process

The application process for a student loan can vary depending on the type of loan you are applying for. Federal student loans usually take longer to process because they need to go through the government. Private student loans will usually take less time because they are processed by banks or other lending institutions. Keep in mind that the length of time it takes to get a student loan also depends on the individual lender.

Filling out the FAFSA

The first step in the process is filling out the Free Application for Federal Student Aid, or the FAFSA. This form can be completed online at fafsa.ed.gov, and it will ask for basic information about your family’s financial situation and your own plans for school. You will need to have your most recent tax return on hand to fill out the form accurately.

The FAFSA will generate a report called a Student Aid Report, or SAR. The SAR will tell you how much money you are eligible to receive in federal financial aid. You should receive your SAR within three to five days after completing the FAFSA. If you do not receive your SAR, or if you need to make any changes to your application, you can do so by logging back into fafsa.ed.gov.

After you have completed the FAFSA and received your SAR, you will need to complete any additional forms required by your school’s financial aid office. Some schools require their own form, and some may require additional documentation, such as proof of income or tax returns. Once you have completed all of the necessary forms and submitted any required documentation, your school’s financial aid office will determine how much aid you are eligible to receive and they will send you a financial aid award letter outlining all of the types of aid and the amount of each that you have been approved for.

Applying for federal loans

The first step in getting federal student loans is to complete the Free Application for Federal Student Aid (FAFSA®) form. You’ll need to provide information about yourself and your family, your school, and your finances. The form becomes available each year on October 1. You’ll want to submit it as soon as possible because some schools consider FAFSA information when awarding financial aid.

If you’re eligible for federal student loans, you’ll next need to complete a Master Promissory Note (MPN). An MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to your lender or loan holder. It also explains the terms and conditions of your loan(s). You can complete an MPN online at StudentLoans.gov or by signing a paper MPN, which will be mailed to you after you receive your first disbursement of the loan.

You’ll need to finish an MPN for each type of federal student loan that you receive. For example, if you’re taking out both Direct Subsidized Loans and Direct Unsubsidized Loans for the same enrollment period, you must sign two separate MPNs—one for each type of loan.

Applying for private loans

The private student loan application process can take anywhere from a few minutes to a few weeks. The biggest factor in determining how long it will take to complete the process is whether or not you apply with a co-signer.

If you have a co-signer, most lenders will be able to give you a decision within a few minutes. If you are approved, the lender will then need some time to process your loan and send the money to your school. This can take anywhere from a few days to a few weeks.

If you do not have a co-signer, the process will take longer as most lenders will require you to go through a more extensive application process and may need to run a credit check. This can add several days or even weeks to the timeline.

Once you have submitted your application, be sure to stay in touch with your chosen lender and follow up frequently if you have not heard back within the timeline they gave you.

The Loan Disbursement Process

It can take anywhere from a few days to a few months to get your student loan. The process starts with you submitting a Free Application for Federal Student Aid (FAFSA®) form. After your school gets your FAFSA form, they will send you a financial aid award letter. This letter will outline the types and amount of aid you’re eligible for. Once you have been awarded your loan, the next step is loan disbursement.

The first disbursement

The first student loan disbursement usually happens about 30 days after the loan is finalized. But there can be exceptions. For example, if you’re a parent borrowing a Parent PLUS Loan, the first disbursement won’t happen until after your child’s school certifies the loan.

The most important thing to know about the first disbursement is that it doesn’t happen automatically. The school has to send a request to the lender before any money can be sent to you (or your child). And that request can take a few days to process.

Once the school sends the request, the lender has up to 14 days to make the first disbursement. But in most cases, it happens much sooner than that—usually within a week or two.

It’s important to note that you won’t necessarily get the full amount of your loan all at once. If you have a large loan, or if your school has a policy of making multiple disbursements for each student, you may get multiple payments throughout the year.

Subsequent disbursements

Subsequent disbursements for the same loan period will be made no sooner than 14 days after the first disbursement, and no later than 180 days before the end of the loan period. If the first disbursement is made within 14 days before the end of the loan period, only one additional disbursement can be made.

The Repayment Process

After you graduate, you have a six-month grace period before you have to begin repaying your student loans. repayment plans, you will have 10-25 years to repay your loans, depending on the plan you choose. You will make fixed monthly payments to your loan servicer.

Grace period

Most federal student loans come with a grace period — a set amount of time after you graduate, leave school, or drop below half-time enrollment when you don’t have to make payments on your loan. The grace period gives you time to get financially settled and find a job before you have to begin repaying your student loan. For example, the grace period on Direct Subsidized Loans and Direct Unsubsidized Loans is six months.

The repayment process for federal student loans generally starts after your grace period ends. If you have a Direct Subsidized Loan or Direct Unsubsidized Loan, you won’t be charged interest during your grace period. If you have a Direct PLUS Loan, interest accrues (accumulates) during your grace period. You can choose to pay the interest that accrues during your grace period, or it will be added to (capitalized) the principal amount of your loan when repayment begins.

Repayment options

There are several repayment options available for federal student loans, and your loan servicer will work with you to select the plan that best meets your needs. You can change your repayment plan at any time, although there may be fees associated with some plans.

The standard repayment plan for federal student loans has a fixed interest rate and is the option that will result in the lowest total interest paid over the life of your loan. With this plan, you’ll have your loan repaid in full within 10 years.

The graduated repayment plan for federal student loans also has a fixed interest rate, but your payments will start out low and increase every two years. With this plan, you’ll have your loan repaid in full within 10 years.

The extended repayment plan for federal student loans has a fixed or variable interest rate, and your payments can be stretched out over a period of up to 25 years. This option is only available if you have more than $30,000 in outstanding federal student loans.

The income-based repayment plan for federal student loans is based on your family size and income, and your payments will never be more than 15% of your disposable income. Under this plan, you may have your loan forgiven after 25 years.

The income-contingent repayment plan for federal student loans is also based on your family size and income, but under this plan, you’ll make payments each year that are equal to 20% of your discretionary income or the amount you would pay under the standard 10-year repayment plan—whichever is less. Under this plan, you may have your loan forgiven after 25 years

Loan consolidation

Loan consolidation is a way to refinance your student loans by taking out a new loan with a lower interest rate. You can consolidate your loans through the federal government or through a private lender. consolidation can be a good option if you’re struggling to make your monthly loan payments or if you want to get a lower interest rate.

Consolidating your loans through the federal government is called direct consolidation. You can consolidate your loans through the Department of Education’s Direct Consolidation Loan program. To qualify, you must have at least one Direct Loan or FFEL Program loan that is in repayment, not in default, and not already consolidated.

If you want to consolidate your private student loans, you must do so through a private lender. You cannot consolidate private and federal loans together through the federal government’s Direct Consolidation Loan program.