Before Applying

Before Applying

Before you apply for a private student loan, make sure you’ve taken advantage of all your free-money options and federal financial aid first. Since private student loans are typically more costly than federal student loans, you want to make sure you’ve taken advantage of all your low-cost federal student loan options first — Perkins student loans, Stafford student loans, Grad PLUS loans for graduate students, and PLUS loans for parents.

1. Apply for scholarships and free money. The NextStudent Scholarship Search Engine lets you search our database of more than 6.2 million scholarships valued at over $16 billion absolutely free.
2. Apply for low-cost federal student loans. You’ll need to complete the FAFSA (Free Application for Federal Student Aid).
3. Ask your parents about a federal parent loan. Federal PLUS loans are available for the parents of dependent undergraduate students.
4. Apply for a private student loan only if you still have unmet need.
5. Find a creditworthy co-signer for your private student loan. Since private student loans are credit-based loans, applying with a creditworthy co-signer can increase your chances of being approved. You may also qualify for a lower rate and lower monthly payments.