Once the acceptance letter from a post-secondary school arrives, the real work of determining how to meet the financial obligations to the school and the financial needs of the student begins. Many students look to student aid for that help. Before looking at private lending institutions, each student should complete a FAFSA (Free Application for Federal Student Aid).
Despite generous federal grants and loans combined with scholarships and work-study, many students still need additional help to meet their college expenses. Federal and institutional student aid programs often provide for tuition, books, and fees but only provide a percentage of room and board and other living expenses.
Even students that are well served by their financial aid package can incur unexpected emergencies, such as unexpected travel expenses, field trip opportunities, or day-to day expenses.
Both groups can benefit by a pre-approved student loan. The beauty of the pre-approved student loan is that you may never have to use it. Yet, if you do, it is instantly available.
Pre-approved loans allow the borrower to tailor the amount borrowed to their immediate need. In addition pre-approved student loans usually allow you to fix an interest rate, which can be handy in today's volatile credit market.
Sources for pre-approved student loans are as close as your bank or credit union. Most banks that offer private student loans also offer pre-approval. In addition, a number of reputable lenders offering pre-approval can be found on the Internet.
In this year's worldwide credit crunch, it makes sense to get a pre-approval now, for a need that may occur later. The number of private institutions that are offering student loans of any kind is diminishing due to new federal laws tightening the restrictions o student loans.