As students prepare to enroll in your programs, there can be several questions running through their heads — possibly including how to pay for the course. If your learners are interested in taking out a student loan, there are a few items they should have before and during the application. Below, we have a rundown of what your students need to submit a loan application, so we can ensure the process is as smooth as possible for everyone!
Credit report check
If your student is applying for a private student loan, their credit is going to play a large role in whether or not they’ll be approved. Many lenders use credit history as a main factor in determining whether or not someone qualifies for a loan. Before beginning an application, they might want to take a look at their credit report to see where they stand, while also reviewing it to make sure there are no inaccuracies. An annual report from each of the three credit bureaus can be found for free at annualcreditreport.com, and should there be any negative items on the report, they can take steps to have them corrected or removed.
Need assessment
While your students may not want to take out a loan for less than they need, they also definitely don’t want to over-borrow. Before applying, they should figure out what their budget is, what they’ll need to pay in tuition, and how much cost-of-living they’ll have beyond what they can afford on their own. This way, they can be confident they’ll have enough to comfortably live on, while not borrowing too much that they’ll eventually have to pay back with interest.
Personal and course information
Upon the initial application, students will be asked to provide some information about themselves and the course they’re attending, so they’ll want to have everything they need handy. This can vary by lender, but most will ask for info like name, address, social security number, and more. For a Climb Credit application, they should have on-hand:
- First and last name
- Email address
- Phone number
- Home address
- Date of birth
- Social security number
- Program information (school name, campus, course name, and start date)
- How much they want to borrow for the loan
If they’re adding a co-borrower to the application, they’ll also be asked to enter the co-borrower’s personal information as well. So they should make sure to have their contact info and social security number available when they apply!
Careful review of loan documents
After the initial application is submitted and the student is approved, the next step is to go through all the documents in order to fully understand the agreement they’re entering into. Just as with any transaction, it’s important to understand every aspect the terms they’re consenting to follow; this way, they’ll be better able to avoid any surprises or pitfalls later on down the road. It may seem tedious, but it’s worth the extra time reading (or rereading, if need be) in order to really know what’s in the loan terms.