What Are the Requirements to Qualify for a Student Loan?

What Are the Requirements to Qualify for a Student Loan? (2025 Guide)

Introduction

What Are the Requirements to Qualify for a Student Loan? | College is expensive. There’s no way around it. If you’re not lucky enough to have a full-ride scholarship or parents who can cover the costs, you’re probably looking into student loans. But the big question is:

👉 Do you qualify for a student loan?

Types of Student Loans

Before we talk about eligibility, you need to know what type of loan you’re applying for. There are two main categories:

1. Federal Student Loans (Best for Low Interest & Flexible Repayment)

Issued by the U.S. Department of Education
Lower interest rates and better repayment terms
Available to most students, regardless of credit history

Types of Federal Loans:
✅ Direct Subsidized Loans – For undergraduates with financial need (government pays interest while in school)
✅ Direct Unsubsidized Loans – Available to all students, but interest starts accruing immediately
✅ Direct PLUS Loans – For parents and graduate students (requires a credit check)

2. Private Student Loans (Best for Extra Funding Needs)

Issued by banks, credit unions, and online lenders
Interest rates are usually higher than federal loans
Requires a credit check (or a cosigner if you have no credit history)

Best Private Lenders for 2025:
✅ Sallie Mae – Best for flexible repayment options
✅ Discover Student Loans – Best for no fees and cash-back rewards
✅ Earnest – Best for borrowers with strong credit

💡 Pro Tip: Always apply for federal loans first—they’re easier to qualify for and have better terms than private loans.

Federal Student Loan Requirements

If you’re applying for a federal student loan, you’ll need to meet certain eligibility requirements. Let’s break them down:

1️⃣ You Must Be a U.S. Citizen or Eligible Non-Citizen

✅ U.S. citizens qualify automatically
✅ Permanent residents (Green Card holders) also qualify
✅ Some non-citizens (DACA recipients, refugees, asylum seekers) may qualify depending on their status

💡 Not a U.S. citizen? You may still qualify for state-based aid or private loans.

2️⃣ You Must Have a High School Diploma or GED

✅ To qualify for federal loans, you must have:

A high school diploma, OR
A GED (General Education Development) certificate, OR
Have completed an approved homeschooling program

💡 Still in high school? Some dual-enrollment programs allow high school students to apply for federal aid.

3️⃣ You Must Be Enrolled in an Eligible College or University

✅ Your school must be accredited and participate in the federal student aid program
✅ You must be enrolled at least half-time (usually 6 credits per semester)

💡 Attending a trade school? Some career and technical schools qualify for federal loans, but not all. Always check with your school first!

4️⃣ You Must Complete the FAFSA (Free Application for Federal Student Aid)

What is the FAFSA?
The FAFSA is the key to unlocking federal student aid—including loans, grants, and work-study programs.

✅ The FAFSA asks for your (and your parents’) financial information
✅ Determines how much aid you qualify for
✅ Opens every October 1 – Apply ASAP for the best aid package!

💡 Pro Tip: Many states and colleges also use the FAFSA to award scholarships and grants—so don’t skip it!

5️⃣ You Must Not Be in Default on Any Previous Federal Student Loans

✅ If you already have federal student loans, you must be in good standing
✅ If you defaulted on a loan before, you might have to rehabilitate it before qualifying for new loans

💡 How to Fix a Default? You may qualify for loan consolidation or rehabilitation to restore eligibility.

6️⃣ You Must Maintain Satisfactory Academic Progress (SAP)

✅ You need to pass your classes and maintain at least a 2.0 GPA
✅ If you fail too many courses, you could lose eligibility for federal aid

💡 Falling behind? Some schools offer appeals or academic probation to help students regain eligibility.

Private Student Loan Requirements

Private student loans have stricter eligibility criteria than federal loans. Each lender sets its own rules, but here are the general requirements:

1️⃣ You Must Have Good Credit (or a Cosigner)

✅ Most lenders require a credit score of 650+
✅ If you have no credit history, you’ll need a cosigner (usually a parent)
✅ The higher your credit score, the lower your interest rate

💡 No cosigner? Some lenders (like Ascent) offer no-cosigner loans but may charge higher interest.

2️⃣ You Must Prove Income or Financial Stability

✅ Lenders may ask for proof of income to ensure you can repay the loan
✅ If you don’t have a job, your cosigner must meet income requirements

💡 Still in school? Some lenders allow deferred payments until after graduation.

3️⃣ Your College Must Be Eligible

✅ Private lenders only approve loans for accredited schools
✅ Some lenders offer loans for trade schools and international programs

💡 Check with your lender to ensure your school qualifies.

4️⃣ You Must Be a U.S. Citizen or Permanent Resident (Most Cases)

✅ Some lenders offer loans to international students with a U.S. cosigner
✅ If you’re not a U.S. citizen, check lenders like MPOWER Financing or Prodigy Finance

💡 International student? Look for special private loans tailored to non-U.S. residents.

How to Increase Your Chances of Getting a Student Loan

If you’re worried about not qualifying, here are some ways to boost your chances:

For Federal Loans:

✅ Apply early – The sooner you submit your FAFSA, the better!
✅ Maintain good grades – Keep your GPA above 2.0
✅ Stay enrolled at least half-time – Dropping below this could make you ineligible.

For Private Loans:

✅ Improve your credit score – Pay bills on time and reduce debt before applying.
✅ Find a cosigner with strong credit – This increases approval odds and lowers interest rates.
✅ Compare multiple lenders – Don’t settle for the first offer—shop around for the best rate.

What Are the Requirements to Qualify for a Student Loan?

Conclusion: Do You Qualify for a Student Loan?

The short answer? Most students qualify for some type of student loan. If you meet the basic federal loan requirements, you can get aid—even if you have no credit or income.

But if you’re looking at private loans, the eligibility criteria are tougher. You’ll need good credit, a steady income, or a cosigner to get approved.

Final Advice?
✔ Apply for federal loans first – They’re easier to qualify for and have better repayment terms.
✔ Use private loans only if necessary – And compare multiple lenders before choosing one.
✔ Only borrow what you need – The less you borrow, the easier it’ll be to repay after graduation.

Got questions about student loans? Drop a comment below, and I’ll help you out

What Are the Requirements to Qualify for a Student Loan?