To be eligible for federal student aid, you must demonstrate financial need, be a U.S. citizen or eligible noncitizen, have a valid Social Security number, and be enrolled in an eligible degree or certificate program. Applicants must maintain satisfactory academic progress, sign the FAFSA, and not be in default on federal loans.
Eligibility Requirements. Our general eligibility requirements include that you have financial need for need-based aid, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at an eligible college or career/trade school.
While student loans can be useful tools as you pursue a degree, you may be disqualified from receiving loans or other federal financial aid because of your grades, enrollment status, citizenship, loan status or because you reached the borrowing limits for federal loans.
The #1 most common FAFSA mistake is leaving fields blank, followed closely by name/Social Security Number mismatches, but other major errors include incorrect marital/parental info, not reading questions carefully (especially "you" vs. "parent"), and filing late or not at all. You must complete all questions, entering '0' or 'N/A' if applicable, use exact legal names, and ensure accurate SSNs to avoid delays or rejections, with many sources highlighting the importance of filing on time for maximum aid.
These include failing to fill out the Free Application for Federal Student Aid (FAFSA), not having a high school diploma (or something equivalent to one), and having previously defaulted on a federal student loan.
Technically, no income is too high for the FAFSA. The U.S. Department of Education recommends filling out the FAFSA yearly, regardless of income. However because FAFSA is needs-based aid, those from lower-income families with a greater financial need get access to more financial aid.
The federal student aid programs are based on the assumption that a dependent student has parent support, so your parents' information has to be assessed along with yours to get a full picture of your family's financial resources.
Even if you don't anticipate needing financial aid, completing the FAFSA ensures your student remains eligible for the full range of available funding options. It's a simple step that can preserve flexibility and opportunity.
The financial aid office at the college or career school you will attend will determine how much financial aid you're eligible to receive. Your eligibility depends on your Student Aid Index (SAI), year in school, enrollment status, and the cost of attendance at the school you'll be attending.
Do Parents' Assets Affect Financial Aid? Both parent and student-owned assets can have an impact on financial aid eligibility. However, generally speaking, parent assets have a more limited impact because parents are expected to contribute a smaller proportion of their wealth to pay for their child's college education.
Eligibility for federal student aid is based on financial need and on several other factors such as U.S. citizenship or eligible noncitizenship, enrollment in an eligible program, satisfactory academic progress in college, and more. The full list of our basic eligibility criteria is on our student site.
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.
While student loans can improve your credit score when handled properly, they can also damage it if you miss payments or fall behind. Here's how missed payments can affect your credit: 30 Days Late: May be reported to credit bureaus and lower your score and may move into delinquency status.
There is no upper age limit for students applying for student finance but if the student is over 60 the amount they can get depends on their household income. Students can usually only get student finance for their first higher-education qualification.
Reasons you might be denied a student loan
Every lender has its own requirements for approving a student loan. But they usually look at credit history, credit score, income, debt-to-income ratio, and enrollment status. One of the most common reasons is not meeting the lender's FICO®Credit Score requirements.
Are student loans forgiven when you retire? No, the federal government doesn't forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you'll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire.
The "Top 10 Percent Rule" is a Texas law guaranteeing automatic admission to state universities for students graduating in the top 10% of their high school class, increasing diversity and access, though flagship schools like UT Austin have adjusted thresholds (e.g., to 6%) due to demand, and the rule doesn't guarantee entry to specific competitive majors.
But here's what we know so far… The rollout faced delays and technical issues from the very beginning. Education hired a contractor to update its FAFSA Processing System in March 2022. Within months, the system encountered development issues that eventually resulted in the delays and other glitches applicants saw.