Whether you're looking to cover the full cost or just fill in the gaps, federal and private student loans can help make higher education a reality by spreading out payments over time.
But there are many steps to follow, restrictions on who can get financing and, if you're successful, a heavy debt load to juggle.
- Federal loans offer multiple repayment plans, including income-driven options that adjust your monthly payment based on your income and family size.
- You can make early payments while in school to reduce interest, though it may still build on certain loans, especially unsubsidized loans.
- Private loans have different terms and some require payments while you're still in school, though terms vary by lender.
Fill out the FAFSA
The first step is to fill out the Free Application for Federal Student Aid (FAFSA), your gateway to federal student loans, grants and work-study. You can complete it at studentaid.gov, and it's completely free.
| Academic year | FAFSA available | filing deadline |
| 2025-2026 | November 2024 | June 30, 2026 |
| 2026-2027 | Sept. 24, 2025 | June 30, 2027 |
The FAFSA for the 2026-27 school year became available on Sept 24, 2025, and the filing deadline is June 30, 2027.
What you'll need
To fill out the FAFSA, you will need some important documents:
- Your Social Security Number
- Your (and your parents' if you're a dependent) tax returns, W-2s and bank statements
- List of schools you're applying to or attending
- FSA ID (you can create one at studentaid.gov)
File as early as possible. States and universities have much earlier deadlines and funds are limited.
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Undergraduate and graduate students, parents, students in MBA, law, health professional and dental programs
$5,000 (or state-mandated minimum) up to the cost of attendance
5, 7, 10, 15, years; up to 20 years for refinancing loans
Terms apply.
Undergraduate, graduate, Master's, PhD, MBA, law school, medical school, health professions, dental school, medical and dental residency loans, bar study loans.
$1,000 up to 100% of the cost of attendance
10 to 15 years
Review your financial aid offer
After your school gets your FAFSA, they'll send you a financial aid award letter. This will break down any grants or scholarships you're eligible for, work-study offers (if applicable) and federal student loan options, such as Direct Subsidized or Unsubsidized Loans.
You'll be able to accept all or part of the loan offer through your school's financial aid portal.
Before receiving the funds, you must also:
- Complete Federal Direct Loan Entrance Counseling, an online session for first-time borrowers explaining your rights and responsibilities
- Sign a Master Promissory Note (MPN) agreeing to your loan terms.
Explore private loans (if needed)
If federal aid doesn't fully cover your educational costs, you can apply for a private student loan through a bank, credit union or online lender.
Keep in mind:
- You (or a co-signer) will need good credit
- Private student loans often have less favorable terms that federal loans, especially for borrowers with average or poor credit
- Options for deferment, forbearance and other relief are much less flexible with private loans
Earnest offers student loans with four repayment terms and a nine-month grace period. If you have a FICO® Score of 650 or better, you can apply without a co-signer. Ascent also offers a generous grace period of up to 36 months, along with 1% cash back* on your principal loan at graduation. And if you're enrolled in an Outcomes-Based Loan® program, you can get a rate reduction of up to 1.0% for setting up autopay*.
- Student loan refinancing available
- Offers the option to apply with a co-signer
- Nine-month grace period
- Borrowers can skip one payment per year without penalty
- No physical branches
- Student loan refinancing not available in Mississippi
Actual rate and available repayment terms will vary based on your financial profile. Our lowest rates are only available for the most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change.
Residents of Hawaii must request a loan of at least $1,501.
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option.
To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest's Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away.
Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
Earnest clients may skip a payment through a single, one-month forbearance during a 12 month period. Your first request to skip a pay can be made once you've made at least 6 months of consecutive on-time full principal and interest payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Any unpaid accrued interest may capitalize (added to the principal balance) at the end of the forbearance period by adding unpaid accrued interest to the outstanding principal as permitted by law and the terms of the loan agreement. Please note that skipping a payment is not guaranteed and is at Earnest's discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
- Considers borrowers with no credit
- High loan limit
- Co-signer release available after just 12 payments
- Up to 1% interest rate discount for autopay*
- 1% cash back rewards*
- Considers alternative requirements like the borrower’s school, program, graduation date, major, GPA, cost of attendance and Satisfactory Academic Progress (SAP) to grant approval
- Maximum fixed APR is on the high side
- Doesn't offer student loan refinancing
Disclosure: *Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 7/15/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower's credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
Loan disbursement
Once everything is in place, your loan funds will be sent directly to your school to cover tuition, fees and housing if applicable.
If there is any money left over, the school will refund it to you.
Review repayment terms
Repayment of federal student loans typically begins six months after you graduate, leave school or drop below half-time enrollment. (The pause is called the grace period.) PLUS loans, however, go into repayment once the loan is disbursed.
Payment on private student loans often begins while you're still in school, but the particulars depend on the lender and the loan terms. You might have to make payments on both the principal and interest while enrolled, interest-only payments or a small fixed monthly amount.
It's uncommon, but some private lenders do offer a grace period of 6 to 12 months.
Your loan servicer should send you a repayment schedule with all the key details, including how much you'll pay and how often and when your first payment is due. You'll usually get your repayment schedule at least 30 days before your first payment is due, and your first bill at least 21 days before that.
FAQs
What is the first step to apply for a student loan?
The first step in applying for a student loan is to complete the Free Application for Federal Student Aid (FAFSA) form at studentaid.gov.
Who is eligible for student loans?
To be eligible for a student loan, you need to be enrolled at least half-time in an accredited school, and maintain satisfactory academic progress. For federal loans, you also need to complete the FAFSA, while private loans require borrowers to meet credit and income requirements.
What types of federal student loans are there?
The four main types of federal student loans funded by the U.S. Department of Education are Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.
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*Ascent Funding, LLC products are made available through Bank of Lake Mills or DR Bank, each Member FDIC. Subject to credit approval. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 7/15/2026 and reflect an Automatic Payment Discount (ACH). The ACH discount consists of 0.25% on credit-based college student loans submitted prior to 6/1/2025, a 0.5% discount for on credit-based college student loans submitted on or after 6/1/2025 and a 1.00% discount on outcomes-based loans when you enroll in automatic payments. Loans subject to individual approval, restrictions and conditions apply. Loan features and information advertised are intended for college student loans and are subject to change at any time. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower's credit history, verifiable cost of attendance as certified by an eligible school and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. Variable rates may increase after consummation.1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. Ascent applicants and borrowers that agree to the AscentUP Terms of Service and Privacy Policy, as well as students associated with an Ascent parent loan application, have access to the AscentUP platform.
