Student Loans

How long does it take to get a student loan?

By
Janet Berry-Johnson,
reviewed by
Andrew Pentis,
edited by
Alicia Hahn
Updated June 29, 2023, 2:46 p.m. ET
A college-bound student waits for their loan.
Shutterstock

If you’re pursuing a college or graduate degree, one of the crucial steps in your journey may be securing a student loan.

While you won’t need to do much after submitting your application, it can take several months to receive a federal student loan. Private student loans are typically faster, but will still take several weeks to finalize. 

Here’s what to expect, when you should apply, and how you can speed up the process.

How long does it take to get a federal student loan?

Federal student loans have a lot of benefits, but speed isn’t one of them — the application and disbursement process can take several months.

To be eligible for a federal loan, you must submit the Free Application for Federal Student Aid (FAFSA). Exactly how long it takes to receive the money depends on when you fill out the FAFSA and your school’s financial aid policies.

The newest version of the FAFSA is available annually on October 1 for the following school year. While the federal deadline gives you more than 18 months to submit it, many states and colleges set earlier deadlines. In addition, some financial aid is awarded on a first-come, first-serve basis, so it’s wise to complete the FAFSA as close to the October 1 opening date as possible.

However, schools generally don’t determine financial aid awards (including federal loans) until the spring, so it may be several months until you learn what loans you qualify for and how much you can borrow.

Getting the funds into your bank account can take even longer. Near the start of each term, your school will first apply your loan money to your tuition and fees. Any amount that’s left over will be distributed to you to use for other education expenses. Your financial aid office can give you a more precise disbursement schedule, as each school has a different policy. 

If you’re a first-time borrower, it may take up to 30 days after the start of the term before your school sends you any leftover loan money.

Tip: If you have leftover student loan funds that you don’t need, returning them to your lender or loan servicer would be wise. This way, you’ll lower your outstanding balance, decreasing the cost of your repayment.

How long does it take to get a private student loan?

The timeline for securing a private student loan is typically much faster, but it varies depending on the lender and your school. 

Generally, it takes about four to six weeks to finalize a private loan, so start the process a few months before your tuition is due. This will give lenders ample time to review your application and make a decision on the loan. 

You can often prequalify for a loan instantly on a lender’s website — just submit a few pieces of information to see the interest rates and terms you might qualify for. If you decide to move forward, you’ll submit a formal application, which can be approved within minutes or days. 

You’ll need to sign some final paperwork to complete the process. Then, the lender will work with your school to certify your cost of attendance and enrollment details, which can take another seven to 10 days.

Most private lenders will send the money directly to your school, which will apply it to your tuition and fees before disbursing any extra cash to you. This typically happens at the start of the next academic term, but check with your lender and your school’s financial aid office to confirm the details. 

4 factors that can affect your loan’s timeline

Several factors can affect the timeline of getting a student loan. Here’s what to plan for as you decide when to apply for your student loans.

1. Time of year

Processing times for student loans can vary based on when you apply. January and August are often busy times — schools must certify loans for all of their students by the start of the academic term, so delays can occur.

2. Completeness of your application 

Whether you’re applying for federal or private student loans, you’ll be asked to provide financial information and documentation. Be sure to include the necessary paperwork and review your application for errors. Taking a few extra minutes to double-check your work can save you from delays later on. 

3. Failure to respond promptly

After you submit an application for a student loan, your work isn’t done yet. The lender may have follow-up questions based on the information you provided, and you’ll need to sign a promissory note before the lender can disburse any funds.

To keep the process moving smoothly, make sure the lender has your correct contact information and you respond quickly to any requests. 

4. Using a cosigner 

Sometimes, you may not be approved for a loan on your own. If the lender requires you to get a cosigner, that will add extra time to the process. You’ll need to find someone who’s willing to share responsibility for your debt, and they’ll need to add their own details and paperwork to the application before you can submit it. 

Tips to speed up the process

If you want to expedite the student loan process, there are a few things you can do

to speed things along.

  • Gather necessary documentation. Before you start the application process, gather the required paperwork so you can complete your application quickly. While the requirements vary, you typically need your Social Security number, employment information, copies of bank statements or other financial accounts, and information on your cosigner (if you have one). Having this information ready will help ensure your application isn’t delayed due to incomplete paperwork.
  • Consider prequalifying. When you get prequalified for a private student loan, you can view estimated rates from a lender without impacting your credit score. This can help you narrow down your options and find a loan that fits your needs without going through multiple lengthy applications.
  • Stay in contact with your cosigner. If you’re applying for a private loan with a cosigner, make sure they’re aware of the timeline and complete their part quickly. This will help to ensure that the money is released in a timely manner.

Getting a student loan can take some time, but starting the process early and staying organized can help. Be sure to respond to any lender questions or requests quickly, and you’ll have a better chance of getting your loan approved and funded on time.