If you’re looking for financial aid to help pay for your education, you might wonder how long it takes to get a student loan. The entire process — loan application, approval, and disbursem*nt — depends on whether you get a federal student loan or private student loan. But knowing the rough timeline to expect will help you figure out when to apply for your student loans.
How long does it take to get federal student loans?
From start to finish, it can take anywhere froma few weeks to a few monthsto get federal student loans and then to receive any extra money as a check or direct deposit from your school.
If you wantfederal student loans, you’ll need to start with the Free Application for Federal Student Aid (FAFSA). Once you’ve completed your application, it could take anywhere from three to five days to process.
After your application is processed, your Student Aid Report (SAR) is sent to the schools you listed on your FAFSA. You should typically receive afinancial aid award letterfrom your school detailing your financial aid package within three weeks of submitting your FAFSA — but keep in mind that each school’s process for this is different. If you haven’t heard from your school after three weeks, it’s a good idea to contact the financial aid office.
Federal student loans are typically disbursed at the start of each term. If there are funds left over after paying for your tuition, fees, and student housing, most colleges will refund the remaining balance to you within a couple weeks of receiving your loan funds. Keep in mind that some schools add a 30-day delay to this as an added protection for first-time borrowers.
How long does it take to get private student loans?
From the time you submit your application until you receive funds, plan on aroundthree weeksto get a private student loan in the best-case scenario — or up to two to three months in case of delays.
Private lenders have their own rules for approving loan applications. Most of them want the application process and disbursem*nt to be as quick and easy as possible. In many cases, you can get funds faster fromprivate student loansthan federal loans.
It’s a good idea to shop around and consider as many private student loan lenders as possible to find the right loan for you. Credible makes this easy — you can compare your rates from our partner lenders in the table below in two minutes.
4.84.8
Credible rating
Fixed (APR)
3.69% - 14.22%
Loan Amounts
$1,000 up to cost of attendance
Min. Credit Score
680
Check Rates
on Credible’s website
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Overview
Education Loan Finance (ELFI) is a division of Tennessee-based SouthEast Bank owned by Education Loan Finance, Inc., a non-profit whose mandate is to provide access to higher education. ELFI launched in 2015 and offers undergraduate, graduate, and parent private student loans as well as student loan refinancing.
ELFI student loans and refinance loans are available to residents in all U.S. states including Puerto Rico. Borrowers can benefit from no application, origination, or prepayment fees. ELFI also offers flexible repayment terms and competitive rates, however there’s no cosigner release option and the lender doesn’t offer any discounts.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, or 15 years
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
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4.84.8
Credible rating
Fixed (APR)
3.69% - 14.85%
Loan Amounts
$2,001 to $400,000
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Cosigner release
12 months
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
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4.34.3
Credible rating
Fixed (APR)
3.69% - 15.49%
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
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4.94.9
Credible rating
Fixed (APR)
3.69% - 17.99%
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of loan repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
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4.44.4
Credible rating
Fixed (APR)
4.24% - 14.02%
Loan Amounts
$1,000 to $99,999 annually $180,000 aggregate limit)
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
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Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
7, 10, or 15 years
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Cosigner release
36 months
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
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4.64.6
Credible rating
Fixed (APR)
4.80% - 8.54%
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Min. Credit Score
670
Check Rates
on Credible’s website
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Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, or 15 years
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Cosigner release
12 months
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
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4.84.8
Credible rating
Fixed (APR)
5.75% - 8.95%
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
10 or 15 years
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Cosigner release
48 months
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Once you submit your application, you could be approved for a private student loan in as little as a few minutes. But if your application requires further review, it could take up to two weeks before the lender lets you know whether you’ve been approved (or if there are other conditions you need to meet first).
Most private student loans must be certified by your school before being disbursed. This might add another couple weeks to the process. Once the loan is certified, the private lender will send funds to the school. This can take anywhere from two weeks to two months. Also expect to wait another week or two before the school will give you any leftover money to use for rent, books, orother living expenses.
How do I check on my loan status?
When youapply for a student loan, you might want to keep an eye on your loan status along the way.
Here’s how to check on your loan status:
- Federal student loans:To check your FAFSA status, you canlog into your FAFSA accountand look at the “My FAFSA” page. If your federal loans have been approved, check with your loan servicer for the disbursem*nt status. If you need help or have questions, you can always call or email your financial aid office for up-to-date information, too.
- Private student loans:For private loans, contact the lender to check the loan status. Keep in mind that as you’re applying for private student loans, it’s a good idea to compare as many lenders as possible to find the right loan for you.
There are generally no restrictions on how you spend your student loan money, as long as you use it for your education and living expenses while in school. But remember that you have to pay it back, so borrow only what you really need. If you end up not needing some of your student loans, you can always pay the extra amount back right away instead of having to pay it back later.
How long does student loan approval take?
The amount of time it takes to get approved for a student loan depends on the lender, and whether you’re applying for federal or private loans.
With Credible, you can see real-time rates in minutes after submitting some basic information. Comparing rates and loan terms from multiple lenders is the best way to make sure you’re getting a loan that works for your unique situation.
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Meet the expert:
Eric Rosenberg
Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.
