The thing with student loans is that unlike scholarships and tuition grants, loans are supposed to be paid in full at the end of the term plus interest incurred. Generally, it will take a college student 10 years to fully pay the loan he took out to finance his college education.

If you are thinking of getting a student loan then read along as we answer some of the frequently asked questions when it comes to applying for a student loan.

What do I need to apply for a student loan ?

In applying for a student loan, you need to keep in mind three important elements:

First: the timeline for applying - keep track of the deadlines that you need to meet in your application to avoid any hassles and delays on your part.

Second: research on the documents that you need to have in applying for a loan. 

Lastly, there is such a thing as student loan reports which states the status of your student loan, the award letter and expected family contribution.

What are the documents needed in applying for a student loan ?

In applying for a student loan you need to present several documents in order for your application to be processed. Here are some important documents that you need to present:

• W-2 Forms and other records of your personal income
• Copy of your federal income tax return
• Bank statements
• Proof of investment (stocks, bonds and other investment instruments) and other mortgage information
• Social Security Number

If you are a minor, you also need to present your parent’s federal income tax return or Form 1040.

What are the different types of student loans ?

There are different types of student loans that you can avail, here are some of them:

• Federal State Loans – The Federal Family Education Loan Program provides American families additional financial aid which is funded by the federal government. Students applying under this type of loan are automatically considered in the program. This type of student loan has a very low interest rate and flexible payment plans.
• Private Student Loans – are usually offered by banking institutions such as Bank of America and Wells Fargo. This type of loan provides students to fill the difference between their tuition fee and the federal state loan grant. This type of loan requires the borrower and co-borrowers to have a good credit standing. This is to improve the financial standing of the student which he can use to buy books, computers and room and boarding expenses.
• Institutional Student Loans – usually offered by the university that you are enrolled in. You can contact your financial aid department for more information.

More tips that student loan applicants can use

• If you are the parent, it’s best to invest in a college savings plan early on.
• If you’re a student, apply for financial grants and scholarships because these are non-interest bearing financial instruments.
• Make sure that you understand every clause and terms of your loan before you agree to it.
• Never miss payments, if you have no choice but to do so, ask help from your parents.

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Student loan debt consolidation comes in lower monthly payments as compared to two or more separate loans.  The standard period of payment is set at ten years.  For those who are considering of consolidating their student loans, the following institutions could provide the consolidation loan: banks, credit unions, secondary markets and other lenders—this is all according to the FFEL or Federal Family Education Loan Program.

Which Loans are Eligible for Consolidation?

The eligible education loans that can be included in a student loan debt consolidation scheme are those that are subsidized by SLS, Federal Perkins Loans, FFEL Stafford Loans, Federal Nursing Loans, and Health Education Assistance Loans.

Private education loans, on the other hand, cannot be included in a student loan debt consolidation.  For further details on which student loans can be included in the student loan debt consolidation, you could try to contact Direct Loan Origination Center (look for the Consolidation Department).  For those who are trying to apply for an FFEL student loan debt consolidation, an FFEL lender would be the best person who could help.

Students who have already graduated from school are still eligible for a student loan debt consolidation loan.  Even those who have dropped out of school or just plainly left could still be eligible for this type of consolidation loan.  Those who are still in the middle of schooling could also apply for this consolidation loan.

The only requirement is this: you should have attended at least half of the school year and have at least 1 FFEL or direct loan during the school season.

This simply means continuous enrollment for at least half of the time that the loan has been paid out.

Where to Apply for a Student Loan Debt Consolidation Loan

Here are some of the leading financial institutions that offer this type of loan.  Just check their web sites:

• http://www.studentloanconsolidator.com/benefits/ (can reduce repayments to as much as 53% and there are no penalties for early repayments)
• Chase Bank’s Web site (http://www.chasestudentloans.com/student-loan-resources/article-consolidation101.html)
• http://www.finaid.org/loans/consolidation.phtml (by Citibank)

Tips on Student Loan Debt Consolidation

If you have a similar holder for all the FFEL loans that you need to consolidate, you must get the student loan debt consolidation loan from that same holder.  This is not applicable, though, if you were not able to obtain a loan with suitable income-sensitive repayment terms.

For instance, a William D. Ford direct loan for student loan debt consolidation cannot be obtained unless you have either a direct Stafford subsidized or unsubsidized loan; or at least a single FFEL program, Stafford subsidized or unsubsidized loan.

Be well-informed when you are securing a student loan consolidation and you will eventually reap the rewards.  If you are at peace with your financial life, you will live to enjoy other aspects of your life.

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