Student Loan Overview

Seeing the bigger picture with school loans

Going to college is a complicated process—but the same basic steps are followed by most prospective students and their parents:

1. Decide on a short list of potential schools where you are interested in attending college
2. File the FAFSA as soon as possible after January 1, even if you don't know where you will be attending school. You can always go back to your FAFSA application and make updates via the FAFSA website.
3. Apply for any academic, grants and scholarships
4. Review your financial aid package to see your total expenses, federal grants, scholarships, and student loans available. Typically it is received in late March from schools that have accepted you for admission, but check with the school for specific dates.
5. Determine the gap your family is facing after exhausting grants, scholarships and federal loans to meet the total cost of attendance.
6. Utilize savings or apply for private student loans to cover the remaining costs

Here are the principal types of student loans for college:

• Federal Perkins Loans (need based)
• Subsidized Stafford Loans (need based)
• Unsubsidized Stafford Loans (all are eligible)
• PLUS Loans for parents and graduate students
• Private student loans (from banks and credit unions)

It's important to note that Subsidized and Unsubsidized Stafford Loans and PLUS Loans are either Federal Loans or Direct Loans, depending on which program your school participates in. Check with your school to see which type of Stafford and PLUS programs they offer to their students.

A key principle to remember with your college student loans

One overarching principle to remember when it comes to school loans is the importance of first exhausting all your federal loan options before turning your attention to securing private student loans—that is, borrowing from a bank or credit union. Why? Because federal loans generally come with fixed, lower interest rates.

Learn more about our affordable Citizens Bank TruFit Student Loan™

Check out our helpful information about our affordable Citizens Bank TruFit Student Loan™ for students attending eligible institutions and apply today. If you still have questions, call a student loan specialist at 1-800-708-6684, and we'll help walk you through the process of applying for school loans.