Internet Student Loans Company

FAQ ... Frequently asked questions

Question: What exactly is a private student loan and how is it different from a federal student loan?

Answer: A private student loan is a credit based loan offered by a lending institution. It is different from a Federal loan for several reasons, one namely being that a private student loan is sent directly to you while a federal loan is sent to your school's controller's office where you sign it over to the school.

Question: Should I still apply for Federal aid, even if I know won't qualify? 

Answer: Yes. Many students and parents mistakenly think they automatically do not qualify for Federal financial aid for some reason, and ultimately prevent themselves from ever receiving it simply by never applying for it. Applying every year is reccomended.

Question: Do I need to be enrolled or accepted before I can apply for Federal financial aid at a particular college? 

Answer: You can apply for Federal financial aid any time after January 1. To receive funds, you must be admitted and enrolled at the university, where you will sign the check over to the school. Private student loans are different as you can apply at any time of the year and the funds are sent to you and not the school. 

Question: Why do I have to wait until January 1 to submit my financial aid application? 

Answer: Federal Financial aid is a need and non-need based process, where your family's income and tax information from the most recent tax year is used to determine your eligibility for need-based financial aid during the upcoming school year. All income earned up until the new year counts toward your Federal financial aid eligiblity.

Question: Do I need to go through the Free Application for Federal Student Aid (FAFSA) process every single year? 

Answer: Yes, you do. The internet has made things much easier. The Department of Education's website makes it as easy as it can be. Visit their website at www.ed.gov . You can fill out the FAFSA for free at www.fafsa.ed.gov