How long does it take to get a student loan? (Federal and Private)

If you’re in the final stages of preparing for college, you might be wondering, “How long does it take to get a student loan?” Unfortunately, the answer isn’t so simple.

For example, did you know that between submitting your FAFSA (Free Application for Federal Student Aid) and getting a federal student loan, both the federal government and your school need to process your information? Here’s what else you need to know about when to apply for student loans.

Key takeaways

• Generally, getting a federal student loan can take anywhere between a few weeks and a few months

• Getting a private student loan can generally take less time than getting a federal student loan because the application and approval process requires fewer steps

• You should always apply for federal loans first because they have more flexible repayment options and opportunities for forgiveness

• Federal loans have borrowing limits, so if you can’t cover the full cost of attendance with their help, you can use private student loans to make up the difference

How long does it take to get a student loan?

How long it takes to get a student loan will vary based on whether it’s private or federal. Here are some timelines for each.

Federal student loans

Generally, getting a federal student loan can take from a few weeks to a few months to go from application to disbursement. The process typically involves the following steps:

1. Complete the Free Application for Federal Student Aid (FAFSA) online at fafsa.gov. This application determines your eligibility for federal student aid, including loans.

2. The FAFSA will then be processed by the Department of Education, which will send you a Student Submission Summary that summarizes your financial aid eligibility.

3. Your school’s financial aid office will use your SAR to determine your eligibility for federal student loans and other forms of aid and will send you an award letter outlining the types and amounts of aid you are eligible for.

4. If you decide to accept a federal student loan, you will need to complete entrance counseling and sign a Master Promissory Note (MPN), which is a legal document that outlines the terms and conditions of the loan.

5. Your school will then disburse the loan funds directly to your account to pay for your educational expenses.

It’s important to note that the specific process for getting a federal student loan can vary depending on the type of loan you are applying for and your individual circumstances. Your school’s financial aid office can provide more detailed information about the process and answer any questions you may have.

Private student loans

Private student loans can be approved in as little as a few hours to two weeks, depending on the lender's criteria and your financial profile. Once approved, it typically takes 1-2 weeks to receive the funds, though some cases may take longer, depending on your school and the specific loan you choose.

The certification process for private student loans involves several important steps beyond just applying with a lender. After you submit your application, which typically includes your Social Security number, financial forms, employment information, and loan amount, the lender performs a detailed review. This review includes a credit check to assess your financial reliability and, if applicable, evaluates the creditworthiness of you and/or your cosigner. Some lenders may also require proof of income or other supporting documents.

If your loan is approved, the next critical step is school certification, which can take a few extra days or weeks. Here's what happens during this stage:

1. Lender sends the loan request to your school: After your private loan is approved, your lender sends the loan details to your college or university’s financial aid office. This includes the loan amount and your enrollment information.

2. School verifies loan details: Your school reviews the loan request to ensure it aligns with your cost of attendance (COA). They confirm that you haven’t exceeded the total amount of financial aid allowed for your educational expenses, including tuition, fees, room and board, and other costs. This verification prevents over-borrowing.

3. School certifies the loan: Once the school confirms that your requested loan amount is appropriate, they certify the loan and send the certification back to the lender. If there are discrepancies, the school may request adjustments to the loan amount.

4. Disbursement of funds: After certification, the lender disburses the funds, usually sending them directly to the school to cover tuition and fees first. 

It’s important to note that school certification timelines can vary depending on your school’s internal processes. Some schools handle loan certifications quickly, while others may take a few weeks, especially during peak times like the start of the semester. You can always check with your school’s financial aid office to see how long their certification process typically takes.

Lastly, if you're nearing the start of the semester or need the funds by a specific deadline, it’s crucial to apply for private loans as early as possible to account for both the approval and certification processes.

Read more: Learn how to get student loans as a part-time student. 

When should I apply for student loans?

Your first step to getting approved for federal student loans is filling out your FAFSA. This will determine how much, and what kind, of federal aid you’re eligible for. The FAFSA usually opens on October 1 for the following academic year and closes on June 30. Due to changes for the 2024-2025 academic year, the FAFSA for 2025-2026 will open fully on December 1st. 

Try to submit your FAFSA as early as possible, because some federal aid programs are first-come-first-served. Keep in mind that in some cases, your state or school may require you to apply even earlier. Double-check FAFSA deadlines for your state or call your school’s financial aid office to confirm.

For private student loans, there’s no deadline, but your lender needs to have time to disburse the funds. Between the certification process and mandatory Right to Cancel period (the three-business days where no funds may be disbursed for a private education loan), you should give yourself a month at minimum.

How much can I get in student loans?

You can get from federal student loans varies based on your financial need, what type of loan you get, and your student status. You won’t know how much you can get until you submit your FAFSA and receive your award letter. That said, there are limits to how much you can take out in federal loans, regardless of need, and some hidden costs to consider. 

The amount you can borrow in private student loans depends on the lender and your creditworthiness. At Earnest, you can borrow up to 100% of the school’s certified cost of attendance, which includes tuition, fees, room and board, and other educational expenses. Unlike federal loans, private lenders don't have strict borrowing limits, so you may be able to cover the full cost of your education. However, keep in mind that private loans typically require a good credit score or a co-signer to secure favorable terms.

Private student loans can be a useful option if federal loans don’t cover all your expenses, but it’s important to carefully consider the interest rates, repayment options, and any associated fees before borrowing. Be sure to compare different lenders to find the best fit for your financial situation.

Pro tip: Remember that you can also reduce your total student loan cost. 

Should I take out federal or private student loans?

Generally, you should always try to take out as much as you can in federal loans before you take out private student loans. That’s because federal loans offer repayment options, opportunities for forgiveness, and protections for hardship. 

For example:

• Federal student loans have deferment and forbearance options, which allow you to pause your payments in periods of difficulty. Private lenders may offer these, but they are not required to.

• Federal student loans offer payment plans based on your income, called Income-Driven Repayment*, that allow you to repay your loan based on how much you earn.

* As a result of ongoing court actions, the terms of some Income-Driven Repayment (IDR) plans, including the SAVE plan, may be subject to change. Please refer to studentaid.gov for the current status of these plans.

• Federal student loans are always fixed-rate, while private lenders may offer rates that change with the market (variable-rate loans).

• Federal student loan rates are set by the federal government, and borrowers, no matter their credit, are offered the same fixed rate. Private student loan rates are based on creditworthiness, and most borrowers require a cosigner.

• Federal student loans offer forgiveness options through Public Service Loan Forgiveness and Income-Driven Repayment Plans, while private loans do not.

Of course, there are limits on federal student borrowing, and if you aren’t offered enough aid by your school, you may have no choice but to turn to private student loans. Before you do, there are also other options to consider, like:

• Writing a financial aid appeal letter²

• Considering Parent PLUS loans

• Applying for more scholarships and grants 

• Attending an in-state, public school

• Starting at community college and transferring

• Getting a part-time job

• Using retirement funds to pay for college

• Paying for school with a HELOC

How can I check the status of my student loan?

You can check the status of your FAFSA online or by phone. To check online, first log in to fafsa.gov. Next, select whether you’re a student, parent, or preparer. After you hit “continue,” you should see the “My FAFSA” page if you’ve started or submitted a FAFSA. Here, you can see the status of your FAFSA regardless of whether you submitted it online or by mail. If you submitted by mail, you’ll need to wait around 7-10 days for it to be processed before you can check its status.

For private student loans, check with your lender individually. At Earnest, you can reach out to our Client Happiness team. 

Finding the right student loan option for you

Navigating the student loan process can be complex, from understanding how long it takes to receive federal aid to deciding when private loans are necessary. While federal loans offer flexible repayment plans and forgiveness options, they come with borrowing limits. If you find yourself needing additional funds, private student loans can help bridge the gap.

Earnest provides private student loans with no fees, fast approvals, and a 9-month grace period³—giving you the extra time you need to start repayment. Use our student loan calculator to see what your payments might be, and explore our private student loan options to secure the funding you need for your education.

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first.  It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities.  2) Next, fill out a FAFSA(R) form to apply for federal student loans.  Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if you're struggling with your payments.  3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2.  For more information, visit the Department of Education website at https://studentaid.gov/.

2 Submitting your appeal letter does not guarantee an adjustment of your financial aid award. Please consult with the relevant university’s financial aid office for additional questions.

3 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.