To apply for a federal student loan, you must first complete and submit a Free Application for Federal Student Aid (FAFSA) form. Federal Student Aid is the largest provider of financial aid for college in the U.S. Understand aid, apply for aid, and manage your student loans today.PSLF allows borrowers who work full time for nonprofits and government agencies to have their outstanding debt forgiven tax-free on Federal Direct Loans. There are generally two types of loans: federal loans and alternative (or private) loans. Federal loans are the largest source of education loans. Fill out the required forms and provide documentation. The first step to receiving any kind of federal financial aid is to fill out and submit the Free Application for Federal Student Aid (FAFSA). 1. Fill out the FAFSA form. The one step in the "no-parent" student loan that requires a parent's involvement is the FAFSA form. Gather all information required to complete the form.