- You can apply for some types of student loans any time of the year.
- Federal student loans have a specific window within which you can apply for all types of federal financial aid including student loans.
- Private lenders are generally more flexible and will allow you to apply for a student loan any time of the year, although this varies among lenders.
One of many questions students often ask is ‘Can you apply for a student loan any time of the year?’ This question comes up because it can be difficult to predict exactly how much you may need for expenses that come up later during the academic year.
Federal and private student loans each come with their own set of rules about when you can apply. Missing a key date could mean a lost chance at getting the funds you need. This could impact your finances for the entire school year.
Here’s what you need to know about federal and private student loan application periods.
Federal Student Loan Application Periods
You cannot apply for federal funds at any time of the year.
Federal student loans have a fixed application window, which is usually from October 1 to June 30 of the following year. You apply for these loans by filling out the FAFSA (Free Application for Federal Student Aid).
The federal government releases the FAFSA form each year, usually in October for the following school year. The final cut-off for submitting FAFSA applications is usually the end of June for the school year. The opening and closing dates can change occasionally so make sure to check.
While you can submit your application at any time during this window, waiting carries a few risks.
- Federal aid is distributed on a first-come, first-served basis. Applying earlier in the cycle increases your chances of getting the maximum amount of aid you’re entitled to.
- Some state and school deadlines for accepting the FAFSA can be earlier than the federal deadline. In this case, the state and school deadlines take precedence over the FAFSA deadline. Applying after the deadline could result in losing out on these forms of free or low-cost financial aid.
- States and colleges tend to have limited funds, so early applications can increase your aid options.
What this means for you: You should apply as early as possible for federal student loans. The best time is soon after the FAFSA opens (October 1) to maximize your financial aid package. State or school applications take priority if they fall before the FAFSA deadline. Remember, waiting too long could result in missing out on limited state or school-based aid.
Private Student Loan Application Periods
Private student loans don’t follow the same strict schedules as federal loans. Lenders set their own rules, which means you often have more freedom to apply at any time during the year. The exact timelines may vary among lenders.
Some lenders allow year-round applications, while others may have deadlines for processing before the start of a school term. Many lenders will allow you to apply even mid-semester if you are short on funds. There is a condition however – the loan must be certified by your school for approval. Funds are generally disbursed directly to the school to cover tuitions and funds. Of course, regardless of when you apply, approval is always dependent on you meeting the lending criteria.
Even if a lender accepts applications year-round, processing still takes time. If you wait too long, the funds you need may not clear in time to pay your tuition bills. As a rule, you should apply at least 2-3 weeks before you need the funds to allow for processing and certification.
What this means for you: If you think you may need additional funds during the school year, start researching private lenders well in advance. In addition to interest rates, eligibility criteria, and other conditions, ask each lender if they do accept mid-year loan applications and how long the approval process will take.
Key Differences Between Federal and Private Loan Application Deadlines
Private student loans offer more flexibility in terms of when applications are accepted. If an unexpected expense comes up mid-semester or you switch schools, private loans could help fill the gap.
Federal student loans have a set application window within which students must submit their FAFSA application for federal financial aid. Missing a federal deadline may mean fewer options for borrowing.
Why You Should Not Wait Until Last Minute to Apply for a Student Loan
Waiting until the last minute to apply for a student loan can have some adverse consequences.
Lenders and schools need time to process your application. Late submissions could mean your money doesn’t arrive before tuition is due, risking late fees getting added to your bill.
Another downside of applying late is the uncertainty of knowing whether or not your application will get approved. It’s hard to budget when you don’t know your loan status. If you’re not approved, you may be forced to take on more expensive loans or consider dropping classes.
As a rule, it’s advisable to apply as soon as you know how much financial aid you’ll need. The earlier the better. Being early with your applications, whether federal or private, means less stress and more choices. It also makes it easier to budget for the school year and explore additional funding options if necessary.
