Loan Requirements

The U.S. Department of Education will make or guarantee more than $65 billion in student loans for 2007. The amount of loan funding available for college is at an all-time high, and there are things you need to do in order to keep your share of that funding.

Get an Early Start
You'll need to renew or reapply for most loans every year. When you're offered a loan, you'll have anywhere from a few weeks to a few months to decide how much you want to accept. Re-apply for your loans as early as possible so that you're not stuck with slow Web pages or long lines. You can apply as early as January for financial aid funding for the Fall term. If you filed a Free Application for Federal Aid (FAFSA) online, make sure to keep the PIN or password information you used.

Know Your Options
If your life changes while you're in school, make sure it doesn't affect your loan. Both current and future loans can be affected by the following changes:

• Student Status: Changing from full time to part time or less than half time
• Time Off: Taking even one semester off may terminate your loan or require repayment, even with private lenders
• Leaving School: You should generally expect to begin repaying loans 6 months after you leave school for any reason

Take Interest
Consider the interest rates on your personal loans. An adjustable rate may initially be low to entice buyers. However, the adjustable rate option can increase as the market changes. Conversely, a fixed rate loan may start higher than an adjustable rate, but it will not change. If you have an adjustable rate loan, make sure your lender sets a rate change maximum for the course of the loan. If your lender makes no promise about keeping rates reasonable, find a loan that does.

Look Ahead
If you fail to repay a loan, the loan may go into default. A Federal loan in default may go to a collections agency, or the government may take some of your wages every pay period to pay off the loan. You may be able to hold off payments if you become a teacher in certain geographical locations or join the military or Peace Corps, but in most situations, you're required to repay your loan.

If you keep up on the details of your loan package, you're less likely to be surprised by a missed deadline or a changing interest rate. Educate yourself and keep your loan.