Many students want to finish college but only a few can afford to. Not all students are lucky enough to have a family who can support them until they finish their course. There are a lot of scholarships being offered but not all are granted with full support. To help students who want to pursue their dreams of having a better education for the future of their family, a student loan is being offered.
What is a student loan?
Simply explained, this is money borrowed from the government or a private institution in order to pay for college education. The money is intended for use mainly for tuition, books, room and board, or other related fees. Once the borrower has finished college, his/her loan has to be paid back once he or she already has a job. Before paying the dues, the borrower has 6 months grace period after graduation to look for a stable job.
Like any other types of loans, a student loan interest also builds up overtime. Make sure to have an idea about student loan resources you should consider so you can manage your loan effectively. Not all borrowers can apply for a loan forgiveness program so make sure to use the loan in smart ways.
How to be eligible for student loans?
Prior application, the student has to be aware that there are two kinds of student loans: the federal and private.
Federal student aid eligibility requirements
The federal student loan is granted by the state to qualified students. Here is the list of specific requirements set by the Department of Education of the United States:
First, you must be a citizen or be an eligible noncitizen of the country. Eligible noncitizen means:
You are a U.S. permanent resident with an Alien Registration Card.
For a conditional permanent resident, you must possess an I-551C card.
You have an Arrival Departure Record obtained from the Immigration and Naturalization Service.
Second, you have a valid Social Security number. Lenders will use it to run a credit check to see how trustworthy you are as a borrower. They will match this information with the Social Security number you provide to verify all the information is correct and accurate.
Note that some students from several states are exempted from submission of this requirement.
For borrowers without a social security number, they can still be qualified to apply for a student loan with a financial institution that accepts ITINs in lieu of SSNs.
On the other hand, here are some of the requirements of a Private Student Loan:
The student is enrolled in an eligible school
The borrower meets credit and income criteria
The applicant meets age, education and citizenship requirements.
Student loans have a very strict process therefore you must satisfy each and every requirement for you to be approved. The lender, whether it is the federal state, or a private institution will always carefully check the applicant’s personal background and scrutinize all the borrower’s information to make sure he or she is serious to get the loan and that the borrower is responsible enough to perform all the financial obligations that he or she will face after finishing college and got a job or any source of income after graduation from college.