Can Green Card Holders Get Federal Student Loans?

Federal student loans provide financial assistance to eligible students pursuing higher education, helping to cover costs such as tuition, fees, and living expenses. These programs offer various forms of aid, including grants that do not require repayment and loans that must be repaid. U.S. permanent residents, also known as Green Card holders, are generally eligible to apply for federal student aid programs. However, prospective students must meet specific criteria to qualify.

General Eligibility Requirements

To be eligible for federal student aid, individuals must be a U.S. citizen or an “eligible non-citizen.” A U.S. permanent resident, commonly identified as a Green Card holder, qualifies as an eligible non-citizen. Applicants must also possess a valid Social Security number (SSN) for identification and verification.

Male individuals who are U.S. citizens or eligible non-citizens generally need to register with the Selective Service System. However, this registration is no longer a requirement for receiving federal student aid. Students must be enrolled in an eligible degree or certificate program at an institution participating in federal student aid programs. Maintaining satisfactory academic progress (SAP) is also necessary, which involves meeting specific academic standards such as a minimum grade point average and completing a certain percentage of attempted credits.

Applicants must not be in default on any prior federal student loans, as this can lead to a loss of eligibility for future federal aid. Individuals must also not owe a refund on a federal grant received previously. Resolving any outstanding defaults or overpayments is a prerequisite for re-establishing eligibility for federal student aid.

Available Federal Student Aid Programs

Eligible Green Card holders can access several types of federal student aid programs. Federal Pell Grants are available to undergraduate students who demonstrate exceptional financial need and do not need to be repaid. Federal Supplemental Educational Opportunity Grants (FSEOG) are also offered to undergraduates with the most significant financial need and do not require repayment.

Federal Direct Subsidized Loans are available to undergraduate students who show financial need; the government pays the interest during periods of enrollment, grace periods, and deferment. Federal Direct Unsubsidized Loans are not based on financial need and are available to both undergraduate and graduate students. Borrowers are responsible for all interest that accrues from the time of disbursement.

Direct PLUS Loans are another option, extended to graduate or professional students and parents of dependent undergraduate students. Green Card holders can qualify for these loans, which require a credit check. These programs combine grants and loans to provide a comprehensive financial aid system.

Applying for Federal Student Aid

The process for applying for federal student aid begins with completing the Free Application for Federal Student Aid (FAFSA). This form collects financial and demographic information to determine eligibility for various aid programs. Green Card holders must provide their Social Security number and Alien Registration Number (A-Number) on the FAFSA.

The FAFSA can be completed online through the official StudentAid.gov website. It is important to submit the application as early as possible to meet federal and state priority deadlines. These deadlines often influence the amount and type of aid a student may receive.

After submitting the FAFSA, applicants receive a Student Aid Report (SAR), which summarizes the information provided. This report indicates a number used by schools to determine financial aid eligibility. Schools then send financial aid offer letters detailing the types and amounts of aid available.