You are eligible for a federal student loan if you meet certain basic criteria. Sometimes however, your circumstances may change and you may lose your eligibility for that student loan. This could have a considerable impact on your finances and your higher education. Without a loan, you may not be able to afford the cost of college.
Here’s what you can do if you lose your eligibility for a student loan under different circumstances.
Your grades are too low or you do not have enough credits
Your academic performance must meet the stipulated standards if you want to keep getting federal student aid. If your grades slip or you do not have the necessary credits, you may lose your eligibility.
The best way to avoid this is of course to study hard and keep those grades high. If you have received notification about your ineligibility because of low grades, the only option is to talk to the school financial aid office and find out if the decision can be appealed.
You defaulted on your student loan
In most cases, you will have to take specific measures to get out of your default. Once you have done that, you can then apply for more federal aid or keep what you already have.
Your citizenship status is revoked or has expired
One of the criteria for federal loan eligibility is that you have to be a United States citizen or an eligible non-citizen. You must also have a valid Social Security number. It could happen that while you are in college, your eligible non-citizen status expires or is revoked. If that happens, you will automatically lose your eligibility for a federal student loan. In order to regain your loan eligibility, you will have to become a permanent resident or citizen or re-establish the status that qualified you to be an eligible non-citizen. You will have to get in touch with the US Citizenship and Immigration Services to find a way to resolve this.
You were convicted of a drug offense
If any student is convicted of a drug offense while they are receiving any type of federal student aid, their eligibility for a student loan may be suspended. There are a couple of ways you can get the suspension revoked early and get your eligibility reinstated. One way is by successful completion of approved drug rehabilitation program. Your eligibility will also be reinstated if you pass two consecutive drug tests conducted by an approved drug rehabilitation program. These two tests are conducted completely unannounced to ensure that you cannot cheat by staying clean just ahead of the test.
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