What is Eligibility Criteria for Federal Student Loan?

What is Eligibility Criteria for Federal Student Loan?
 

Nearly 20 million students apply for the Federal student loan every year. Basic eligibility requirements for federal student loan program include citizenship requirements and other student related to benefit from a postsecondary education.

Eligibility Requirements 

  • In order to get approval for the Federal student loan program, you must be a citizen of United States of America having a valid Social Security number.
  • Before apply for the Federal student loan program, make sure that you have a high school diploma or certificate from a verified institution or have completed a high school curriculum in a home school setting that satisfies the state’s requirements for home schooling.
  • You must be enrolled as a student in an eligible degree or program. Students who are simultaneously enrolled in elementary or secondary school are not eligible.

Many students easily fulfill all the requirements for federal student loan program. However, if there’s a specific requirement you’re unsure you meet, take some time to understand the fine print.

Complete and submit a FAFSA

To get approval for the Federal student loan program, the Department of Education requires that students file a Free Application. In the application form, you will provide details about your financial situation, your family circumstances, your college, and other information needed to verify your need and eligibility for financial aid.

Academic Progress

Those students who are willing to get approval for the Federal student loan program, should maintain satisfactory academic progress. For example:

  • The Federal student loan Department require at least average grades of 2.0 GPA.
  • In order to get approval for the loan, student must pass at least two credits of each smester before apply for the loan.
  • You must keep continue your bachelor’s degree program to be eligible for the Federal student loan program.

By fulfilling all the above mentioned actions, you can easily approve your loan application to finance your educational expenses.

Demonstrate financial need

Need based financial loan helps the students who are looking for some extra resources to finance their educational expenses. Here are some types of need-based financial loan:

Federal Pell Grants – This type of loan helps the students who don’t have completed their bachelor’s degree to cover their educational expenses.

Federal Work-Study – This type of loan subsidizes eligible students with financial help to make it easier for them to find out the work or job related to their degree program.

Subsidized Direct Loans – This type of loan need to be repaid by the borrower. In subsidized direct loans, the Department of Education gives interest rate on the loan.