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Applying for a student loan generally works one of two ways. Students interested in getting a federal student loan can apply by filling out and submitting the Free Application for Federal Student Aid (FAFSA®) each year.
Private student loans run independently of the federal loan program. Students are able to apply for a private student loan at any time during the school year.
Keep reading to learn more about how to get both federal and private student loans, plus other ways to pay for college.
Key Points
• Completing the Free Application for Federal Student Aid (FAFSA) is essential to determine eligibility for federal student loans and other financial aid.
• Private student loans are offered through banks, credit unions, and online lenders. You can apply for private student loans anytime.
• Federal loans often offer lower interest rates and more flexible repayment options compared to private loans, which may require a credit check or cosigner.
• It’s important to evaluate each loan’s term, interest rate, and repayment plan to find the best fit for your financial situation.
• In addition to student loans, students can pay for college with scholarships and grants, work-study, or by getting a part-time job.
Understanding the Difference Between Private and Federal Student Loans
There are a few important differences between federal and private student loans.
Federal Student Loans
For federal student loans, the U.S. Department of Education runs the William D. Ford Federal Direct Loan Program. The program has four types of loans to consider:
• Direct Subsidized Loans: Direct Subsidized Loans are for undergraduate students with financial need, where the government pays the interest while the student is in school at least half-time, during the grace period, and during deferment.
• Direct Unsubsidized Loans: Direct Unsubsidized Loans are available to undergraduate, graduate, and professional students regardless of financial need, and interest begins accruing as soon as the loan is disbursed.
• Direct PLUS Loans: Direct PLUS Loans are available to eligible parents of dependent undergraduates to help pay for education expenses not covered by other financial aid, and they require a credit check. These loans were previously available to graduate or professional students through the Grad PLUS program but are no longer available to new borrowers as of July 1, 2026, with limited exceptions.
• Direct Consolidation Loans: Direct Consolidation Loans allow borrowers to combine multiple federal student loans into a single loan with one monthly payment and a fixed interest rate.
Private Student Loans
Private student loans are offered through private lenders. As a part of the application process, lenders will generally evaluate a borrower’s personal financial information and history, including their credit score, among other factors.
Private loans don’t have to follow the same government regulations as federal loans, and they don’t offer the same borrower benefits or protections, such as income-driven repayment plans or Public Service Loan Forgiveness. For this reason, private loans are generally considered an option only after other sources of funding have been exhausted.
💡 Quick Tip: SoFi offers low fixed- or variable-interest rates. So you can get a private student loan that fits your budget.
How to Apply for a Federal Student Loan
The first step in applying for a federal student loan is to complete and submit the Free Application for Federal Student Aid (FAFSA). The FAFSA is typically available starting in the fall of the year before school starts and remains open until June 30 of the academic year. So, for example, for the 2026-2027 school year, the FAFSA application opened on September 24, 2025, and will close on June 30, 2027.
While there is a large window to fill out the FAFSA, there may be college or state deadlines that fall before the federal deadline. Additionally, some aid is awarded on a first-come, first-served basis, so it can be beneficial to fill out the FAFSA as early as possible.
Once the FAFSA is submitted, your school will review and determine your financial aid offer, which may include federal student loans, scholarships, grants, and work-study.
Before you receive any federal student loan that you apply for, you’ll be required to complete entrance counseling, which is designed to help you understand your obligation to repay the loan. You’ll also be asked to sign a Master Promissory Note, which says you officially agree to the terms of the loan.
How to Apply for Private Student Loans
You may want to consider a private student loan after you’ve explored your options for federal financial aid. Private lenders typically have their own qualification criteria, but you may be eligible to apply for a private student loan if you’re an undergraduate or graduate student, pursuing a certificate, a student of the dental, medical, or other health professions, studying to take the bar exam, or relocating for medical or dental residencies.
Parents may also be eligible to take out private loans to pay for their child’s education.
Private student loans can usually be used for any type of expenses related to your education, including tuition, room and board, fees, books, supplies, equipment, computers and electronics related to your schoolwork, transportation, and personal needs at school.
To apply for a student loan, you may need to provide:
• Your name, address, phone number, and email address
• Date of birth
• Social Security number
• Employer’s name
• Proof of income (a recent pay stub)
• Bank account balances
• Monthly housing payment (rent/mortgage)
• School name
• Estimated cost of attendance
• Your current student status (e.g., freshman, full-time)
• Other financial aid you’ve received so far
• Anticipated graduation date
• References
• Student loan cosigner and cosigner’s information, if applicable
Private student loan lenders may let you submit your loan application online, and some may even be able to give you an answer the same day. Of course, underwriting timeframes and documentation requirements can vary greatly by lender.
What Is Private Student Loan Approval Based On?
Private student loan approval is based on your income, credit history, and credit score, among other factors. That means the lender looks at your history of borrowing money and paying it back, which also determines your loan’s interest rate.
If your credit history is unestablished or less than stellar, applicants may consider adding a cosigner to the loan. A cosigner will be responsible for paying it if you are unable to do so.
Beyond Student Loans: Other Ways to Pay for College
Students can explore other options to pay for college, including scholarships, work-study, grants, and more.
Scholarships and Grants
Scholarships and grants are types of aid that don’t need to be repaid. Grants are generally awarded based on financial need and may be awarded by your school, the government, or another organization such as a nonprofit.
Scholarships are awarded based on various criteria such as academic achievement, athletic ability, artistic talent, financial need, or community service. Scholarships can come from schools, private organizations, nonprofits, or government programs, and applying early can increase a student’s chances of receiving aid.
Recommended: SoFi’s Scholarship Search
Work-Study
The Federal Work-Study Program offers part-time employment to undergraduate, graduate, and professional students who demonstrate financial need. Eligibility for work-study is determined by the FAFSA. Some schools may match students to a work-study job, while other schools may require that students apply for positions.
Part-Time Job
Working part-time can be another way to earn extra cash to pay for college expenses. Students could look into jobs such as tutoring, babysitting, or working at a local business in their college town.
The Takeaway
To get a federal student loan, students fill out the FAFSA in order to see which type and how much aid they may be eligible for. The application process for private student loans may vary by lender. Private student loans can help students pay for college if they don’t get enough federal aid.
Students can also explore other options to help pay for college, such as scholarships and grants, work-study, or a part-time job.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
What is the first step in applying for a federal student loan?
The first step in applying for a federal student loan is to complete and submit the Free Application for Federal Student Aid (FAFSA), which determines your eligibility for federal student loans and other financial aid. After submitting the FAFSA, your school will review your information and provide a financial aid offer outlining the aid you may qualify for.
What types of federal student loans are available?
Federal student loan options include Direct Subsidized Loans for students with financial need, Direct Unsubsidized Loans available regardless of financial need, and Direct PLUS Loans for eligible parents of dependent undergraduates, which require a credit check. Direct Consolidation Loans are also available to eligible borrowers who want to combine multiple federal student loans into a single loan with one monthly payment.
What should students consider when choosing a student loan?
Students should evaluate factors such as interest rates, repayment terms, eligibility requirements, and the total cost over time to determine the loan option that best fits their financial situation. They should also compare federal and private student loans, as federal loans generally offer more flexible repayment options and borrower protections than private loans.
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