How To Apply for Student Loans Online: A Guide for New Borrowers

Nearly 40% of undergraduates rely on student loans to pay for college, according to the latest data from the National Center for Education Statistics. If you need help covering the cost of your education, you can apply online for federal student loans through the U.S. Department of Education or private student loans from banks, credit unions, and online lenders.

This guide walks you through the steps to apply for federal and private student loans online, along with tips to help you borrow responsibly.

How to apply for federal student loans online

Applying for federal student loans online is straightforward and offers several advantages, including faster processing and income verification tools. To get started, complete the Free Application for Federal Student Aid (FAFSA) at StudentAid.gov. The 2025-26 FAFSA is now available online until July 1, 2025.

Here's what you'll need to complete the application, which should take less than an hour:

• Your verified Federal Student Aid (FSA) ID and password
• Your Social Security number
• Your email address
• Your parents' information if you're a dependent student
• The name of your spouse contributor if you're married
• Your family's income and asset information (although you can link your application with the IRS for automatic income verification to streamline the process)

How to apply for private student loans online

Applying for private student loans online is a more flexible process than federal loans, but it also varies by lender. Each private lender has unique eligibility requirements, loan terms, and application procedures.

“The biggest advantage is convenience,” says Joe Camberato, chief executive officer of National Business Capital. “You can quickly check what different lenders offer and figure out what works best for you. Some lenders might provide helpful tools or resources for students, while others focus on offering flexible repayment plans.”

To simplify the process, start by using student loan comparison tools. These tools let you compare multiple lenders at once to find the best rates and terms. You can also check how lenders' requirements — like credit score and income — align with your finances. This saves time compared to contacting individual lenders and requesting paper applications.

“The main benefit is having the ability to consider numerous loan providers in a short amount of time,” says Danilo Umali, co-principal and founder of Game Theory College Planners. “Checking online also keeps you current on what loan providers are in the marketplace, as this can change every year.”

Many online lenders provide personalized loan offers based on basic financial details, and these prequalification checks usually won't affect your credit score. Once you've found a loan with competitive rates and terms, complete the application online. You'll need to provide details like:

• Your contact information and Social Security number
• The name of your school and the amount you need to borrow
• Income and asset information for you and your cosigner, if applicable

Since private lenders assess credit score and income, you might need a cosigner. A cosigner is someone who shares responsibility for the loan. Typically, lenders require a FICO credit score of 670 or higher to qualify for a private student loan, with the best rates reserved for borrowers with excellent credit.

Current private student loan rates

What happens after I apply?

The next steps after you apply for a student loan will vary depending on whether you're applying for a private or federal loan.

Check Out: How Long Does It Take To Get a Student Loan

What happens after applying for federal student loans?

Once you submit your FAFSA online, it's typically processed within one to three days. You'll then receive a Submission Summary that includes your Student Aid Index (SAI) — a key factor schools use to determine your financial aid eligibility.

The information from your FAFSA is sent to the schools you've listed, and each school will create a financial aid package for you. These packages often include a mix of federal loans, grants, work-study opportunities, and scholarships. Once you receive your package, you can review the aid offered and decide whether to accept it based on your financial needs and the school's affordability.

What happens after applying for private student loans?

With private student loans, most lenders provide a rate quote within minutes after you apply. Once you've compared options and chosen a lender, you'll submit your application online.

After you sign your application, the lender sends it to the school to certify. This can take between a few days and a few weeks, depending on the school. After this certification is received, you'll be notified and the private lender will arrange to distribute the money to your school's financial aid office.

Generally, the process of sending the money to the school takes around four to six weeks, although the timeline can vary based on the time of year and your school's procedures.

Tips for choosing the best online student loan

When exploring online student loan options, it's important to know how to compare offers effectively.

“Federal loans tend to have more repayment assistance programs, while private lenders might offer perks like financial literacy tools or more personalized options,” says Camberato. It's a good idea to maximize your eligibility for federal student loans first, since they provide benefits like loan forgiveness and income-driven repayment plans.

Once you've exhausted federal loan options, compare private loan offers if you still need more funding. “Take a close look at what each lender offers and what you qualify for. If one lender isn't offering enough to cover your needs, that's a sign to move on and keep exploring your options,” Camberato advises.

When comparing private loans, prioritize those with lower interest rates and minimal fees. However, ensure the loan meets your qualifications — such as credit score and income requirements — so you're eligible for the rates advertised.

You should also look at the big picture, not just monthly payments. Some loans may appear affordable with low monthly payments but extend the payoff period significantly, meaning you'll pay a lot more in interest. Look at the big picture to ensure you're making the most cost-effective choice.

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