Student loan eligibility depends on the type of student loan. Federal and private student loans have different eligibility criteria. Read on for more information about your loan eligibility.
Eligibility for Federal Student Loans
Eligibility requirements for federal student loans include:
- The student must file the Free Application for Federal Student Aid (FAFSA)
- The borrower must be enrolled for at least a half-time basis
- The borrower must be a U.S. citizen, permanent resident or eligible non-citizen
- For Federal Parent PLUS loans, the student must satisfy the citizenship criteria
- Eligibility for Federal Stafford loans does not depend on the borrower’s credit
- The borrower of a Federal PLUS loan must have agood credit history
- Eligibility for federal education loans does not depend on credit scores, debt-to-income ratios, minimum income thresholds or employment history, but the borrower must not be in default on a federal education loan
- There is no minimum age for a borrower of a federal student loan
- Eligibility for subsidized loans depends on the student's financial need
- The student must be enrolled as a regular student in an eligible program
- The student must satisfy the general eligibility requirements for federal student aid, such as Selective Service registration for male students, having a high school diploma or GED (or a home-school equivalent that satisfies state requirements) and maintaining satisfactory academic progress (minimum 2.0 GPA/4.0 scale)
- Federal student loans are not available to borrowers after graduation, such as during a medical school residency orafter law school
Eligibility for Private Student Loans
Eligibility requirements forprivate student loansinclude:
- The borrower must be creditworthy or have a creditworthy cosigner. More than 90% of private student loans to undergraduate students and more than 75% of private student loans to graduate students are made with a creditworthy cosigner.
- Creditworthiness can be measured using credit scores, annual income, debt-to-income ratios and employment history.
- The minimum legal age of a private student loan borrower may depend on the state of residence. The age of majority is 21 in Indiana, Mississippi and New York, 19 in Alabama and Nebraskaand 18 in most other states.
- The borrower and cosigner must satisfy citizenship requirements. All lenders require the cosigner to be a creditworthy U.S. citizen or permanent resident. Most lenders also require the student to be a U.S. citizen or permanent resident. Some lenders will allow an international student to qualify with a cosigner who is a creditworthy U.S. citizen or permanent resident.
- Most lenders require the borrower to be enrolled for at least a half-time basis. Some have special loan programs for continuing education students.
- Eligibility also can depend on a degree, academic major or participating school.
- Private student loans do not require the student to file the FAFSA.
Student Loan Eligibility Comparison Chart
This chart summarizes eligibility for Federal Stafford loans, Federal PLUS loans and private student loans.
Student Loan Eligibility Criteria | Federal Stafford Loans | Federal PLUS Loans | Private Student Loans |
Enrollment Status | Minimum half-time | Minimum half-time | Varies by lender |
Minimum Age | No minimum | No minimum | Legal age for state of residence |
FAFSA Required | Yes | Yes | No |
Credit Criteria | None | Borrower must not have an adverse credit history | Credit ScoreDebt-to-Income RatioMinimum IncomeEmployment History |
Cosigner | None | Not required, but can have an endorser if the borrower has an adverse credit history | Required for 90% of undergraduate borrowers and 75% of graduate borrowers |
School Certification | Yes | Yes | Yes |
Collateral (Secured) | None | None | None |
Citizenship | U.S. citizen, permanent resident or eligible non-citizen | U.S. citizen, permanent resident or eligible non-citizen | Most lenders require the student to be a U.S. citizen or permanent resident. Some lenders allow international students. Cosigner must be a creditworthy U.S. citizen or permanent resident. |
Selective Service | Registration required if male | Registration required if male | Not required |
Eligible Colleges | College must be eligible for Title IV federal student aid | College must be eligible for Title IV federal student aid | Varies by lender |
Minimum GPA | 2.0 on a 4.0 scale (C) | 2.0 on a 4.0 scale (C) | Varies by lender |
Financial Need | Financial need required for subsidized loans but not unsubsidized loans | Not required | Not required |
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