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 a 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 a few different circumstances.
Your grades are too low or you do not have enough credits
You can lose your eligibility if your grades are too low or you don’t have enough credits that satisfy the school’s requirements. 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 to, of course, study hard and keep those grades high. Go to group study sessions, study with your classmates, or talk to your professor about how you can improve your grades. If you have received notification about your ineligibility because of low grades, then 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
Defaulting means that you missed a repayment after a certain amount of time on your student loans. 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 expired or revoked
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. However, your eligible non-citizen status expired or revoked during college. 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 issue.
You received a drug offense conviction
If any student receives a drug offense conviction while getting any type of federal student aid, their eligibility may be suspended. However, there are ways to revoke your suspension early and reinstate your eligibility. One way is successfully completing an approved drug rehabilitation program. Another way is passing two consecutive drug tests conducted at 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.
Use College Raptor’s new Student Loan Finder to discover personalized loan options. Compare lenders and interest rates to discover the ideal student loan for you!