If you are seeking a degree, enrolling at least half-time, and are a U.S. citizen or U.S. national, you may be
able to qualify for a low, fixed rate federal student loan. These types of loans also provide flexible repayment
options.
Here are the steps to apply for federal money:
Step 1 – Do the FAFSA
No, the FAFSA is not the latest dance step, but it is an important first step in applying for federal financial aid
programs. FAFSA is the Free Application For Federal Student Aid and it determines your level of eligibility for
various financial aid programs administered by schools across the country.
You can complete the form online and receive additional information at
www.fafsa.edu.gov.
Step 2 – Understand the amount for which you qualify
Once you submit the FAFSA you will receive a Student Aid Report (usually about 4 – 6 weeks later). The
report will include Expected Family Contribution, which is the amount the government believes you and your
family should contribute to your education.
You will then receive award letters containing various financial aid options from the schools where you
have been accepted. It will include your eligibility for federal loans, grants, scholarships and Work-Study
programs.
Depending on whether you are an undergraduate or graduate student you may qualify for one or a
combination of loans which include Federal Stafford Loan for Undergraduates, Federal Stafford Loan for
Graduate Students or Federal PLUS Loan for Graduate and Professional Students. These are offered as
subsidized and unsubsidized loans. Subsidized loans are for students who demonstrate a financial need. The
government pays the interest that accrues while the student is in school or for a qualified deferment period.
Unsubsidized loans are not need-based. Students are responsible for all interest that accrues and they can
choose to make interest-only payments while in school, or postpone the interest payments until they leave
school or drop below half-time status.
Step 3 – Pick First PREMIER Bank as your lender
While federal loans are backed by the federal government, they are
offered through lenders like First PREMIER Bank. Once you have received your
award letters and have decided on which school you will attend, let them
know you have chosen First PREMIER Bank as your lender by entering the First
PREMIER Bank lender code 815727 on the loan applications provided by the
school.
Step 4 – Receive your loan money
Once approved for your federal loan, First PREMIER Bank will send the money directly to your school based
on the dates requested by your school.
You might want to explore other
personal loan options available.
Contact us to discuss your college planning needs today.