You've got questions about a complex subject — student loans
Fortunately, there are answers.
Key takeaways
- After receiving a financial aid offer from their school, many students are still left with a balance.
- Private and federal student loans are options that could help cover the financing gap.
- For undergraduate students, a credit-qualified cosigner is often needed for private student loans. Parents can also consider taking out education loans on behalf of their children.
FAFSA
Direct Loans
Transcripts
What loans can I get?
How often do I need to apply?
FAFSA
Where can I get a Free Application for Federal Student Aid (FAFSA) form to complete?
The FAFSA is the application for federal student aid, such as grants, work-study, and federal student loans. In addition, many states and colleges utilize the FAFSA to determine eligibility for state and school aid.
You can visit studentaid.gov to complete the application online. Students are strongly encouraged to apply online, but if you prefer, you can complete a paper version of the FAFSA and send it via mail. Check with your high school guidance counselor or college financial aid office for a paper form.
Direct Loans
How do I apply for Federal Direct Loans?
You will need to complete the FAFSA form. This form will enable your college to determine your eligibility for all types of federal aid, including the Federal Direct Loan. After you find out whether you are eligible for the Federal Direct Loan, you will need to complete a Federal Direct Loan Master Promissory Note (MPN). Visit the federal student aid site for more information about the Direct Loan program.
How much can I borrow through the Federal Direct Loan program?
If you are a dependent student, the maximum unsubsidized loan amounts you can borrow under the Federal Direct Loan is $5,500 as a freshman, $6,500 as a sophomore, and $7,500 as a junior and senior. If you are an independent student, the maximum amounts are $9,500 as a freshman, $10,500 as a sophomore, and $12,500 as a junior and senior. Please note, there are lower loan limits for subsidized loans.
Transcripts
How do I get my hands on my official transcript? And what is it?
The transcript is your official high school academic record. It contains a list of your courses and grades, an explanation of the school's grading scale, and a list of the school's course offerings.
Check with your high school guidance counselor to find out what you need to do to get transcripts sent to your selected schools. There may be a minimal charge for sending them. Keep deadlines in mind and allow plenty of time to get your transcripts out the door.
I was homeschooled and I don't have an official transcript. What should I do?
If you have been homeschooled, you may not follow the typical transcript or testing scenarios. Instead, you might be able to substitute a portfolio of your best work, a logbook of your community activities, or college credits earned before applying for admissions. Check with the schools you're applying to in order to find out what they need.
What loans can I get?
I have received my financial aid offer letter, but I still owe money to the school. Are there other loans I can apply for?
Student loans, both federal and private, are options to consider to help pay for college. You should explore federal student loans in addition to any scholarships and grants that are available to you. Private student loans can be considered to help bridge the gap between the cost of college and other financial aid options. Private student loans are credit-based, so students may require a credit-qualified cosigner, such as a parent or legal guardian.
Is there a loan my parents can take out for my education?
Yes, many private lenders, as well as the federal government, offer student loans for parents.
The Federal Direct Plus Loan for parents has fixed rates set by Congress and allows your parents to borrow up to your cost of attendance, minus any other financial assistance received. However, it's possible you could find a lower-cost alternative through a private lender.
Private student loans for parents are available through banks, credit unions, and other financial institutions, and offer a range of interest rate and repayment options. During the application process, lenders will review your parent's credit history and other factors to determine approval for the loan. Based on these factors and the lender, parents may be able to get a lower interest rate than what they could get on a Federal Direct PLUS loan. In addition, many private lenders do not charge an origination fee while the Federal Direct PLUS does.
After estimating the total amount you'll pay with each option, it's important to compare them to find the best fit for you and your family.
Can I borrow a loan to help pay for my books and my personal expenses while I am at school?
Private student loans, as well as the Federal Direct PLUS Loan, could be used to help pay for your indirect school-certified costs while you are enrolled in school. The maximum you can borrow each year is determined by your individual school.
How often do I need to apply?
Do I need to apply for financial aid each year?
Yes. You will need to complete the FAFSA form each year. Every year you will receive a new financial aid offer from your school.
Do I have to fill out a new MPN each year?
Not usually. These forms are good for 10 years. You may have to fill out a new form if you change schools or change your lender.
What is Multi-Year Approval* and what are the benefits?
Private student loan providers often make you apply for a loan every year with a hit to your credit score every time. If you apply for a Citizens Student Loan™, we'll let you know if you qualify for Multi-Year Approval. If eligible, prior to each academic year, you’ll simply log in to your account and request funds with no impact to your credit score and no additional application.
Ready to take the next step?
Citizens is here to help you navigate your student lending options for today and the future. Make sure to visit our Student Lending page — we’re on chat.
Related topics
8 ways to pay for college
The cost of college can be stressful, but scholarships can help. Loans are helpful to bridge gaps, but there are other ways to afford the cost.
What is a student loan cosigner?
Learn about cosigners, how they help, and if adding one to your student loan is right for you.
Private student loans: What you need to know
Private student loans could be a great way to cover the cost of college with flexible terms and repayment plans.
© Citizens Financial Group, Inc. All rights reserved. Citizens is a brand name of Citizens Bank, N.A. Member FDIC
*IMPORTANT INFORMATION
Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, you must continue to meet eligibility criteria to obtain additional funds under the Multi-Year Approval feature. Terms and conditions are outlined in the promissory note. Multi-Year Approval borrowers have a 99% approval rate on future requests for additional funds. The additional funds approval rate is based on the percentage of approved Multi-Year borrowers from Citizens between October 1, 2022 and October 1, 2023. The approval rate represents only borrowers who had previously accepted the Multi-Year Approval offer. Please Note: International students are not eligible for Multi-Year Approval.
Get My Rate: Selecting “Get My Rate” only requires a "soft credit pull" which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report.
Disclaimer: The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.