How to Get a Student Loan: A Step-by-Step Guide for Students

Each year across America, around two million students kick off their college careers. But with the rising cost of education, most of these students have no way to pay for school without help. 

According to College Board, the average annual cost of tuition and fees for a public, in-state college was $11,950 in 2025. By contrast, the same education averaged $5,940 in 1995.

If you’re planning to head to college, you’re not the only one wondering how to get the student loans you need. So to make the process easier, we’ve broken down the steps to get a student loan below.

1. Estimate how much money you need

Before you start applying for loans, you’ll need to get a good idea of how much money you need for school. Student loans are typically offered to cover one year’s worth of costs, so aim to calculate what your full year of costs will be. 

Depending on the loan type, you can potentially apply for enough money to cover all of the following expenses:

• Tuition
• Housing
• Meals 
• Tutoring
• Books and supplies
• Transportation to and from school
• Laptops and other tech needs

When it comes to federal student loans, you can’t use the money for things like cars, appliances or clothes. For private loans, you’ll have to check and see what restrictions apply from the lender.

2. Decide on federal versus private loans

Before you start applying for student loans, you’ll need to decide whether you want to borrow money from the federal government, from private lenders, or both. The best student loan strategy is always to start with federal student loans, since they have a lot of features designed to help borrowers. For example:

• You don’t have to start repayment until you graduate or leave school. 
• Interest rates are fixed. 
• Rates are typically lower than private loans (6.39% for Direct Subsidized loans versus up to around 18% for private loans).
• You don’t need a credit check to qualify.
• Income-driven repayment (IDR) options can reduce your payment to as low as $0.
• Interest may be tax deductible
• People in certain professions can qualify for partial loan forgiveness.

With that said, it’s possible you may not qualify for federal loans, or you may not be approved for enough money to cover all of your expenses. In that case, you’ll likely need other options like private student loans to cover the difference. Just be prepared to start making payments while you’re still in school if you go this route. 

For help choosing student loan types and navigating your options, you can always reach out to an NFCC-certified credit counselor. 

3. Apply for your student loan(s)

The next step to getting a student loan is applying for your loans. This process will look different for federal loans than it will for private loans. Here’s a breakdown of each process:

Complete and submit the FAFSA

Most students are eligible for some form of federal student aid, including grants, scholarships or loans. The first step in finding out if you qualify is to fill out a Free Application for Federal Student Aid (FAFSA). You can visit StudentAid.gov to find this form and pinpoint the annual FAFSA submission deadline for your state.

Completing the FAFSA usually takes about 30 minutes. You’ll need to provide the following personal information and permissions to complete the process:

• StudentAid.gov username and password (create an account here)
• Social Security number or Alien Registration number
• Income and bank statements
• Federal tax information

If you’re a dependent, your parent(s) will need to provide most of the information above.

Apply with private lenders

For private student loans, you’ll want to start applying at least eight weeks before you need to pay your school. This will help ensure there’s enough time for your application to be processed.

You can apply for private loans through financial institutions such as credit unions and banks, and applications are usually accepted online. When applying, you can usually choose to apply for a loan to cover either one semester or a full school year. To find the best loans available, be sure to apply through at least three different lenders and compare their rates, repayment requirements and other details. 

To apply for private student loans, you’ll generally need to provide the following details for yourself and any cosigner:

• Contact information
• Income
• Housing cost
• Your school name
• Cost of tuition
• Financial aid you’ve received

If your application is approved, the lender will send a certification request to your school. Once you’re certified, the funds will be sent to the school.

4. Complete entrance counseling (for federal loans only)

For your first federal loan, you’ll be required to complete student loan entrance counseling before you can receive your funds. Each school has its own requirements for counseling, but it generally covers the following topics: 

• What a loan is
• How interest works
• Options for repayment
• Ways to avoid missing payments

During your session, you’ll also get a chance to estimate your annual and total cost of education, too. Counseling sessions usually take 20 to 30 minutes to complete.

5. Sign your documents 

To finalize your loan(s), you’ll have to sign documents from the lender. 

For private borrowers, you’ll need to sign a promissory note. For federal borrowers, you’ll need to sign a Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loans, plus any interest and fees you accrue. Federal borrowers will also have to provide contact information for two references who have known them for at least two years (this can include one parent). 

Once you sign and submit your MPN, it usually takes two to three business days for your school to receive notice, and the funds will usually be disbursed to your school within 14 days.