For years, students have benefited from student loans to continue their education at reputed schools. It allows students to get access to the best education without having to face financial trouble.
If you are applying for student loans, you may be interested in the time it takes to get these. When it comes to student loans, a certain time is required to first get approved and second, to be able to access the money. How much time it takes for both these steps depends on the chosen lender and type of loan i.e. federal or private.
Time to Get Approved for a Student Loan from the Federal Government
The Federal Government opens its application process for student loans from October 1st to June 30th; before the fall semester begins. Since this is a loan issued by the state, the process is completed on a state to state basis. To learn more, you will have to consult the student aid office of the state you belong to.
Once you have applied, it takes 7 to 11 days for the government to update the status online. You will also receive a summary known as Student Aid Reports (SAR) around 3 weeks later in the mail.
The time it takes to get access to the loan once approved, depends on what school you go to. The paying out of the loan is the responsibility of the schools. When the schools get access to the loan funds approved for you, they will first use it for the tuition and other fees of the current semester. The rest is the transferred to the student’s account. The money is usually disbursed in 2 payments. Each payment is sent at the start of the 2 respective semesters per year. In case it is the first time you are receiving the loan, then the money is only accessible after 30 days of the semester’s start.
Time to Get Approved for a Student Loan from a Private Lender
When students get denied from the federal government or the acquired funds are not sufficient, they can choose the option of private loans. These are available from the bank or other lenders, although, the eligibility criteria are stricter than that of the government. The time of the approval will be different depending on the chosen lender.
Once the private lender approves the student loan, the lender and the school decide the disbursement date. The process is similar to that of the federal government. 2 payments are sent each year. Each payment is sent at the beginning of the semester. The chosen bank or another private lender will inform you of the date of disbursement and the funds are sent to the school or directly to the borrower’s account.
Student loans have helped a lot of students pursue their dreams. If you are confused about going the federal or private way, you may want to consult an expert on this matter. Your decision may impact your convenience to pay the loan as well.