When should a student apply for a student loan?

 Many students getting into a good college is already a stressful decision; getting funding for that college is even more stressful and time-consuming. Not everyone is awarded funding from a specific college or a bursary. In addition, not many students have very high grades to be awarded this funding, so many students must take up the responsibility of applying for funding from various institutions.

The student should have a backup plan if the loan gets rejected and consider a job to save for college premium, do research about the college, make an appointment with a student counselor, and ask questions if they do payment terms.

Apply at all the different financial institutions, do not just apply at one institution and depend on that outcome.

When should a student apply for a student loan?

Guidelines to apply for a student loan.

To apply, a student must fit all the requirements that the financial institutions require to qualify for a student loan. 

To qualify for a loan, the student needs to complete a free application for federal student aid (FAFSA); based on the result, the college will send back an offer that may include different loan options. The college will inform you of the process of accepting this offer.

Loans are a very big commitment, and the student must be very reliable in paying back these payments responsibly; after all, it is the first big step in the rest of the student’s career. So, before applying, there are some factors to consider; here’s how to start.


Most financial institutions understand the restrictions of college, so they offer an additional amount to pay for accommodation, books, and equipment needed in college.

The process is quick and easy; due to technology being so advanced compared to a few years ago, the student can now apply online without going to a banking consultant and submitting and signing pages of forms.

Most financial institutions offer the student the opportunity to pay back the loan after graduation, so they can focus and live life to the fullest.


A loan will only be granted if your credit score is reflected positively; the student needs to first check to see if one can qualify before applying as a decline can reflect on the credit score report, and trying to get funding from another institution is a real admin nightmare.  

To return to a good credit score rating, one must go through repaying debt that got them in trouble in the first instance; it can take time to pay the debt off, depending on the amount. 

Financial Intuitions that offer student loans

To qualify for a student loan today is easy, as you can now also apply at a private intuition; these are the banks and private intuitions that offer loans to students.

  • JP Morgan Chase.
  • Bank of America.
  • Citibank.
  • U.S. Bank.
  • Capital One.
  • HSBC.
  • TD Bank.
  • American Express.

Private Intuitions that offer student loans

Independent credit providers such as Earnest, Sallie Mae, and College Ave offer student loans to cater to a student’s daily living expenses. The student should google the institutions that offer these loans to students. 

Requirements to apply for a student loan

Investing in one’s future is an accomplishment for any student; therefore, many financial intuitions take pride in offering these loans to these students who would like to invest in their future goals and dreams. To apply for a student loan, one would need to maintain a good clean credit score which will instantly give the head ups towards an approval.

One would need to provide proof of income to verify a stable income, which means there would be no problem repaying the loan to the financial institution.

Terms of student loan

A standard agreement between the financial institution and the re-payer ranges between 120 months (10 years).

Payments are fixed during this time; should the student require an additional expansion, this will be discussed with a consultant processing the loan application. 

Should there be any adjustments for the student in this interim, which is the affordability of repaying the loan, the student should immediately inform the intuition of this change.

Interest rate

The best thing about getting a student loan compared to any other loan is that the financial intuitions offer the student a much lesser interest rate. Therefore, the student can focus on finishing the studies with peace of mind.

Repayments for the student loan

The student must ensure that a significant amount is put aside when it is time to repay the loan to the financial institution. According to the agreement between the lender and the student, the loan must be paid back. Unfortunately, if a payment is missed, it would reflect badly and affect the trust in the relationship between the borrower and student. 

Plans for your career development

If you are a college undergraduate or a graduate and would like to extend a career path, it would be best to speak to a loan consultant regarding a further extension on your loan to ensure that the student has an adequate cover to study further.


For any student wanting to start a career, extensive research and planning go into a college application form, and along with it comes finance. Therefore, the student must be well-prepared before applying for a loan and consider all aspects.

Frequently asked questions

What if my credit score is bad? Can someone apply on behalf of me for a loan?

Parents can apply for a student loan for their child, Parent Plus loans. A federal student loan is a better option for those with a bad credit score.

If the Parent Plus loans are not an option for you, you can search for other financial institutions and private online lenders.

How do private student loans work?

Unlike normal student loans from financial institutions, many packages are offered with different premiums and interest rates. However, with the Private Student loan, only one loan is offered. Therefore, the loan can affect the interest and the amount.

How to choose the best student loan?

Things that should be considered when applying for student loans are accommodation, books, equipment, tuition, and transport if you are not staying at student accommodation. Please ensure that you have covered all aspects before applying for a loan; write down a list of expenses needed for college.

How to fix bad credit and restore your credit health?

If you are struggling to get a loan, you can decide with the services providers and plan to repay.

Try to pay a little extra towards the debt to ensure that you boost your credit health. 

Get a credit report which will show the old debt and creditors who have rated you as a bad payer.

If possible, try not to apply for any loans for at least six months.