Student life is very difficult with the prospect of money due to more expenses. In foreign countries, it is far more difficult occasioned by high-class schools and universities as the tuition fees are quite high. Different scholarship grants and financial aid programs are available for students but even then students cannot manage money for their expenses. So, students are compelled to apply for study loans to get quality higher education.
Criteria for the Approval of Study Loans:
For securing a bright future, students apply for different student loan programs like federal and private. Generally, loan approval needs the status of an individual’s family, student’s current level, whether graduate or undergraduate. So that loan approval is granted according to student level and status initially. But different criteria are set for graduate and undergraduate students as well as dependent or independent people. So you need to check out the basic requirements to get your study loan approved by different organizations.
Federal Student Loan Requirements:
Federal Study loans require government approval. Few initial necessities for applying for a loan are;
- Permanent citizen of USA
- Own house
- Good financial status
- Good credit record
- Demonstrate financial need (Qualify Direct Subsidized Loans)
- Have Social Status numbers
- Good academic performance
- Complete and sign the FAFSA
- Possess required qualification
- Enroll in an accredited or recognized program
- Take at least half time course load
Then the student will be eligible for a study loan. Foremost for students are dependent or independent, sort of loan student applied for and student academic level. The criteria set for those students who apply for a student loan, whether dependent or independent in 1st year, can get a loan or borrow $3500 as a subsidized loan. Dependents have a limit of up to $2000 subsidized loan while independent have $6000 subsidized loans.
Private Student Loan Requirements:
If you are not qualified for a federal loan, you also have other options to get money. A private study loan is one of the secure ways to get funding. It also has some criteria but almost every student is granted a decent study loan.
Private Study Loan Requirements:
Private study loan giver almost involves cosigner. A cosigner is a responsible person for the student, when a student fails to return the loan, then the cosigner gives it back instead. But cosigners also have an interest rate on loans and it costs a lot to students. Study Loan requirements for different institutes are different, but few requirements that apply for all private loan schemes are discussed here.
- Require creditworthy cosigner (if needed)
- Enrolled in an eligible school
- Meet age, education, and citizenship requirements
- Meet credit and income criteria
- Use the loan for educational expenses
Private Loan Advantages
Although private student loans are not as good as federal loans, but still they have their advantages.
- Students can get a loan at any time when they feel the need, as the federal loan has a specific period for applying.
- Students can get up the borrowing according to attendance at school.
- Students have a low interest ratio if the cosigner has a strong track record or the student himself is financially composed.