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Loan Processor School (Talking to the Loan Processor at School)
When you get started with the school loan process, you should have as much information as possible. You need to understand what the process entails, who you should speak with and how to make sure your loans are approved. When you talk to the loan processor at school you will be given a ton of information to start out with. The loan processor at school will give you a brief rundown of all the loans accepted at your particular university. You will be told which federal loans are handled and what private loan companies the school deals with. You should first get information on the federal loans from the loan processor at school because this will be your primary source of federal financial aid following your gift aid.
The Stafford Loan
The student loan processor at school will likely introduce you first to the Stafford loan program. This loan is used the most among college students because it offers some of the best features, like:
- Very low interest rate that is always fixed. Most of the time you cannot find a loan that has a better rate than the Stafford program.
- Loan can be deferred. If you run into financial trouble or simply want to return to a higher education program, you can defer the loan for a specific time period.
- If you have demonstrated financial need, the loan can be subsidized (interest free while enrolled).
- No payments while enrolled at least half time. On subsidized loans you do not accrue interest until the repayment period begins and during periods of deferment or forbearance.
- The amount you borrow increases with your academic level. The lowest you can borrow will be during your freshmen year and it increases through graduate level study.
Applying
Generally, and your loan processor at school will tell you this, you have to apply for all your federal aid at once using the Free Application for Federal Aid (FAFSA). You will receive an award letter that details the amount you will receive as gift aid and federal loan assistance. Your loan processor at school will be able to guide you through any further financial assistance you might need in the form of other federal loans and private student loans. The process for these loans is about the same, but sometimes the university will have preferred lenders. You can always choose the lender you want, even if they are not on the list.
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