6 Reasons Student Lending Speed Matters

College is expensive and many students depend on federal and/or private student loans to help finance their education. These types of loans have different eligibility requirements, interest rates, and repayment terms and conditions. Even the lending speeds are different. Student lending speed refers to the time it takes for a lender to process and approve a student loan application and disburse the funds to the student.

Federal Student Loans vs. Private Student Loans: Difference In Lending Speeds

It takes about 3 to 5 business days to process federal student loans if you submit the FAFSA online. You must fill out the FAFSA or Free Application For Federal Student Aid to qualify for any type of student aid. If you send the FAFSA by traditional mail, it could take about 7 to 10 business days to receive the funds.

With private lenders, the student lending speed varies from one lender to another. Generally, it takes anywhere from a few weeks to a couple of months to receive the funds.

So why does this matter? Student loan lending speed can impact some of the decisions you make and we’ll explore them now.

Why Lending Speed Matters

Ascent company logo.

A loan designed with you in mind

Variable cosigned rates from 6.22% - 16.08% APR with auto-debit


1. You Get Timely Access To The Funds You Need

One of the most important reasons why student lending speed matters is the need for timely access to funds.

Many students rely on student loans to help cover their educational expenses, including tuition fees, accommodation, textbooks, and other education costs and living costs. In addition to tuition fees, students also have other financial obligations, such as rent, utilities, and living expenses. All of these payments have strict deadlines that students must meet.

Fast loan processing and disbursal ensure that you get access to the necessary funds on time, allowing you to meet important payment deadlines.

Delayed loan processing means missed payments, which results in financial penalties and interest, increasing all costs significantly.

2. Allows You To Plan Your Finances In Advance

Knowing how much funding you have available to cover your expenses through the academic year can help you make informed decisions regarding your education.

The faster the loan is processed, the earlier you can assess your financial situation and create your budget. When funds are limited, setting a budget is key to managing your finances effectively, ensuring that you will be able to cover your educational expenses without undue stress or uncertainty.

3. Makes It Easier To Enroll In The Courses You Want

Students often need to provide proof of funds or pay their tuition fees before they can enroll in courses or register for classes. Fast lending speed helps students secure their spots in courses and complete the registration process without any obstacles.

If the loan process is slow, you may not be able to secure your desired course on time. In that case, you may have to settle for your second choice of course if your first choice is filled up by the time you receive the funds.

4. Gives You More Flexibility in Making Big Decisions

Speedy student lending allows students to make timely decisions related to their education.

For example, if you’re waiting for loan approval to fund your education, you may hesitate to accept an offer from a particular school or program until you receive the necessary finances.

Faster lending speed allows you to make decisions promptly so you can pursue your desired educational path and not have to settle for second or third best.

5. Reduces Stress and Anxiety

It’s no secret that college tuition is expensive and putting together the finances necessary to cover all costs can be a significant source of stress and anxiety.

Delayed loan processing can increase stress and anxiety, impacting your overall well-being. It can be difficult to focus on your studies while you’re worrying about the money.

By researching and choosing a good lender who has a smooth lending process, students can experience reduced stress levels and focus more on their academic pursuits.

6. It Affects Education Institutions Too

It’s not just students who are affected by lending speed. Educational institutions also benefit from speedy student lending.

When student loans are delayed and fees are not received in time, it uses up additional resources. Staff have to calculate late fees, notify the borrower, and follow up to ensure the outstanding is cleared.

On the other hand, when student loans are paid on time, all admission formalities proceed smoothly and quickly, reducing the burden on administrative staff. This enables staff members to focus on other essential tasks, such as academic support, student services, and enhancing the overall student experience.

There’s no doubt student lending speed matters. It directly impacts students’ ability to manage their finances, meet deadlines, enroll in courses, make informed decisions, and reduce stress. Efficient and timely loan processing ensures that students have the necessary financial resources available when they need them.

By prioritizing the speed of loan processing, both students and educational institutions can enjoy a smoother, more efficient experience.

Are you looking for student loans? Use College Raptor’s new Student Loan Finder to compare lenders and discover personalized loans.



Lender Rates (APR) Eligibility
Citizens logo.
6.97%-15.03%* Variable
5.99%-14.00%* Fixed
Undergraduate and Graduate
Sallie Mae logo.
6.37% - 16.70% Variable
4.50% - 15.49% Fixed
Undergraduate and Graduate
Credibe company logo.
4.98% - 16.70% Variable
4.07% - 15.66% Fixed
Undergraduate and Graduate
Lendkey company logo.
6.07% - 11.31% Variable
4.39% - 10.39% Fixed
Undergraduate and Graduate
Ascent company logo.
6.22% - 16.08% Variable
4.09% - 15.66% Fixed
Undergraduate and Graduate
6.54% - 11.08% Variable
3.95% - 8.01% Fixed
Undergraduate and Graduate
Earnest company logo.
5.62% - 18.26% Variable
4.11% - 15.90% Fixed
Undergraduate and Graduate
4.98% - 12.79% Variable
8.42% - 13.01% Fixed
Undergraduate and Graduate
College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.