Q: What is the point in applying for FAFSA, private student loans seem easier, and a student loan is a student loan, they all have to be paid back, so what’s the point?
A:FAFSA is your gateway to federal financial aid, which should always be exhausted before considering private student loans. Federal student loans typically have lower interest rates and better repayment terms, and federal grants for college do not have to be repaid at all. Unlike private student loans, the federal financial aid programs that students apply to through FAFSA are not based on the borrowers credit. Federal financial aid programs are based on the borrowers financial need. It is in the students best interest to file a FAFSA before considering private student loans for college, because unless the student has an established (and very good credit) rating, it will be difficult for them to secure private student loans without the help of a creditworthy cosigner.
Many college students who would be eligible for resources such as Pell Grants, Perkins Loans and Stafford loans (which you can only get by applying for FAFSA) miss out on utilizing these college financial aid resources, simply because they do not submit a FAFSA. FAFSA is free, can be done online, and with the proper preparation is not very difficult to complete. There is simply no benefit in not applying for FAFSA, even if you do not receive any aid, there is no harm in trying.
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