Step 4: How to Apply

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* Make sure you meet all the deadlines for applying for financial aid and student loan funds.

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Applying for Federal Loans

1. Fill out the FAFSA, the federal government's Free Application for Federal Student Aid.
2. Federal deadlines for completed FAFSAs are: for the 2007-2008 schoolyear, web applications are due by midnight Central Daylight time, June 30, 2008. For the 2008-2009 schoolyear, submit your FAFSA by midnight Central Daylight time, June 30, 2009. Note that state deadlines for FAFSAs are often earlier than federal deadlines.
3. Even if you are applying for an unsubsidized Stafford loan (which all students are eligible for), you still need to fill out a FAFSA.
4. Use FinAid.org's lender code database to fill out the lender code section on your application. You'll also need your school's code, so be sure to ask your financial aid office what it is.
5. Check with your school to determine if you have applied for all the financial aid available to you (many schools factor Perkins loans into financial aid packages, for example) and have provided all necessary information (this may include your parents' most recent tax return and other financial documents).

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Applying for Private Education Loans

1. Obtain a copy of your credit report, as this is the primary basis for your eligibility.
2. In general, borrowers with a FICO (FICO is the most commonly used measure of credit risk in the U.S., developed by the Fair Isaac Corporation) score of 650 or below will generally not qualify.
3. If a student has little or no credit history, a private lender might require a co-signer, which is usually a parent or legal guardian. Remember that co-signers are ultimately responsible for loan repayment if something should happen to the borrower.
4. Even if a borrower may qualify for a private loan on his or her own, href="http://www.finaid.org/loans/pri... recommends borrowing with a co-signer anyway because a parent will almost definitely have a better credit score, which will lower your interest rate.

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Keep Track of All Records

* Staying on top of your student loans will require a bit of organization.

1. Now that you've completed your FAFSA, be sure to keep your PIN accessible but private.
2. Keep a file for all your promissory notes, applications and loan contracts. If there is ever a dispute about your interest rate or repayment terms, you will have the necessary documentation.
3. Once your loans are disbursed, hang on to statements of interest you've paid for tax purposes, as it is most often deductible.