What do I need to apply for a private student loan?

Checklist to apply for private student loans

Your checklist to apply for a private student loan is basically identical to the one you need to complete an FAFSA (Free Application for Federal Student Aid).

In fact, many private student lenders will require you to submit an FAFSA, just as you would for a Federal student loan. An education loan decision is a bit more complicated with private student lenders as they must make a “credit decision,” which the Federal student loan programs often don’t require. Here is a checklist that should work for you.

You will need to assemble your data and documents in two “piles” to complete your checklist. Some information will apply to the student and some to the parents. This is normally true even if the loan is made to parents instead of students.

Student information typically required:

• Marital status
• Citizenship and residency
• Education history
• Major course of study and expected workload for the coming year
• Federal income taxes and deductions
• Spouse’s income (if you have one – spouse, not income)
• Assets and dependency status
• Household information
• School you’re enrolled in (or those you’re considering)

Parents’ data typically required:

• Education levels achieved
• Current income taxes and deductions
• Family assets
• Family member information
• Residency
• Age

As you might imagine, there is less consistency with private student loans than with most Federal education financing programs. Private lenders can make their own decisions regarding necessary application information, so refer to the specific instructions provided by the private loan sources you consider.

Also, remember that private student lenders typically require a credit report as part of their application and approval process.