hi pari,
here is a little detailed descrpition of loan process,
before starting u need to do little research though.
1] Research:
a]first call all the banks which u consider
b]gather information and make a file of all details.
c]if u r on a dependent visa -specifically ask them[bank] if they accept it.[coz i had a problem ]
d]u can ask questons like: requirements of a borrower [student],requirements of cosigner,any origination fee or processing fee,any repayment fee ,
the minimum interest rate u can get for ur college[coz each college has a different interest range, for ex:
the minimum citiassit provides to nyu is, Prime minus 1%[so,4%-1%= 3% ]
and to boston university it is prime plus .25% [so, 4% + .25% = 4.25%]
At present prime is 4%.
e] Interest rate depends on ur cosigners credit history.[better the credit history ,lower the interest rate]
2] When to apply :
Most of the banks say u can start applying before 90 days of ur metriculation.
3] Implementation :
a] decide on a bank [lender]
b] fill an application [requires borrowers and cosigners info]and send it to them[online or paper based application -depends on banks]
if online expect delays sometimes NOT ALWAYS[about 24hrs] coz system may be down sometimes.
c] usually banks take 24 to 48 hrs to get ur information updated into the system.and until ur information is updated into the system they do not give any info on ur status of application.[irrespective of online or paper based application]
d] then they ask for documents like -again depends on lenders ...
# cosigners : green card -front and back ,most recent W2 or tax form, or a recent pay stub.
# borrowers: passport ,valid visa and I-94
[all must be photo copies],can be faxed sometimes.
These documents can be sent along with application or when they ask .[make sure with ur lender[bank] before sending the application]
e] after pre approval of ur loan ,lender will send ur application to the school for certification. may take 24 to 48 hrs
f] school might take another 1 or 2 days for verification.
g] after the bank receives the certification from school ,they will send u a loan confirmation letter with disbursement details.
h] Final step is notify or send a loan confirmation letter to "student accounting services ". this step again may depend on school u r attending.
All thru the process keep track of ur loan application status.
i will be thankful if someone could help me out .how and when should i apply for this loan , do i need to do any application procedures before that ,i have not yet applied to any college but i will be applying next month .
