Who Can Apply for a Student Loan?
- Author: Stephanie Willms
- Posted: 2024-04-03
Every citizen of the United States is entitled to aspire to higher education. It's obviously ideal if you can somehow manage to pay for it all on your own. Of course, this may not be the most realistic goal for everyone to attain to. If you weren't born wealthy, don't panic. You still have an excellent chance to qualify for a student loan.
Are You a Dependent or Independent Student?
The first question to answer will concern your current level of financial need. This will largely revolve around whether you can be considered dependent or fully independent. You are normally considered independent if you meet these requirements:
- You are over 24 years of age
- You are married at the time that you apply for a loan
- You have children who depend on at least half of their support from you
- You are on active duty as a member of any branch of the United States armed forces
- You are a veteran of any branch of the armed forces
There are certain circumstances under which you can be granted the status of an independent person even if you do not meet all of the requirements that have been listed. If you have any doubts, you should schedule a meet with your financial aid administrator. They can help you determine what your legal status truly is.
What Documents Do You Need to Present?
The next step will be to gather up all of the relevant documents that you will need to present in order to prove your current status. These will normally include, but may not be limited to, the following documents:
- Bank statements
- Tax returns
- Information concerning any financial assets you may be privy to
- Social security card
- Immigration card (if applicable)
Do You Need to Be Working Toward a Degree?
One requirement that many people don't take into consideration is that you usually need to already be working toward a degree. This can't be just any kind of degree but one that is eligible for the program.
It's important to note that the wrong kind of degree could actually disqualify you from receiving any kind of student aid. This will be the case if you are studying a bunch of unrelated subjects or taking electives that do not count toward any kind of degree. You can talk to a counselor to see if your current academic activity renders you eligible.
How Much Money Can You Borrow?
One of the most common questions that someone applying for this type of loan is bound to have will be just how much money they can get. This is a very difficult question to answer in advance. It should be understood that the precise type and amount of the loan that you receive will be based on what you are judged to be qualified for.
Some of the factors that influence this decision will be cost of the school you are interested in attending as well as the precise extent of your financial need. If you should qualify, you can receive either a subsidized loan or an unsubsidized Stafford Loan. In some rare cases, you may even manage to qualify for both kinds.
What Are Subsidized and Unsubsidized Loans?
Should you receive a fully subsidized loan, you will not be responsible for paying off any attributed interest while you are still in school. This is a bill that the government will handle. However, there may be limits as to the amount of money that you can borrow for each year.
If you should receive an unsubsidized loan, you are the one who will be held responsible for the interest that may accrue while you are in school. In some cases, you may be able to allow this interest to accumulate. If this should occur, it will be considered to have been capitalized into the loan principal.
When is the Deadline to Apply?
There is a tight deadline that governs when you can apply for a student loan. The official date for submitting your official Free Application for Federal Student Aid (FAFSA) is usually midnight on June 30. This is the cutoff so that your application for the academic year set to begin in August or September can be processed.
