- You will apply for a federal loan through FAFSA and a private loan through the lender’s site.
- The application process can take as little as three minutes for a private student loan.
- Federal funds will generally be disbursed at the start of each academic term.
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You may need to apply for a student loan if you don’t have enough money to pay for an entire semester of study. When you take out a loan, several factors determine how quickly you will receive the money.
First of all, it depends on how long it takes for the lender to process and approve your application. Then it will take some time for the money to reach your bank account or school. The speed also depends on whether you are taking out federal or private student loans.
How Long Does It Take To Get A Federal Student Loan?
Federal student loans generally offer better terms and protection than private student loans, so you may want to find out what government assistance is available to you first.
You will need to complete the Free application for federal student aid, or FAFSA, to determine if you qualify for federal student loans. There is an annual federal deadline for help, and many states and colleges also have deadlines for the help they administer. The FAFSA takes about an hour to complete and will require several documents detailing your financial situation.
It will take about one to three weeks to process your FAFSA and receive financial assistance tailored to your needs. This package can include grants, scholarships, work-study programs, and loans. Even if you are not sure if you qualify for financial aid, it always pays to complete the form – you never know what may be available unless you apply.
If you choose to take out a loan, you will be required to sign a principal promissory note, which is a legal document that you sign to agree to repay your loan along with interest and fees. You will also accept the repayment term and block the amount you want to borrow. The government will not disburse your loan until you sign this document.
You can usually expect to receive federal funds about 10 days before classes start. If you are both a freshman and a first-time borrower, you may experience a 30-day delay.
How long does it take to get a private student loan?
While it is generally better to take out federal student loans than private student loans, sometimes you will need a little extra money to pay for your college education that is not available from the government.
The process of applying for private student loans is often much faster than completing the FAFSA. You can see your rates and know if you’re approved for a loan in minutes with some companies, and most lenders will give you an approval decision within 15 minutes.
Typically, you can check the status of your loan disbursement through a lender’s online portal or by calling customer service. You will need to sign a document similar to the primary promissory note that you would sign with the government to agree to the lender’s repayment terms.
After you agree to your loan terms, your college will likely receive funds from a private lender within two to ten weeks. You will receive the funds in your personal bank account if you take out a direct consumer loan, while your school’s financial aid office will receive the money if you take out a school certified loan.
Most of the funds will be allocated without a hitch. But if you are stressed about the state of your funds, contact your lender to find out when they will disburse your money.