Which Factors Affect My Eligibility for Qualifying for College Loans?

The reason most people don't qualify for college loans is that they never apply because they think they aren't eligible. In reality, up to 60% of people that apply do qualify for some sort of financial aid. It doesn't hurt to apply - the application is free and there is no obligation to accept the loan if you're approved. Here you'll find a list of some of the heaviest weighted factors that determine your eligibility for college loans.

Timing

Even if you do qualify for financial aid, if there is no money for college loans left in the pool then you won't be able to receive a loan. Although the deadline to apply for college loans for the fall semester is June 1st, applying as close as possible to January 1st can help guarantee you won't be turned down due to lack of funds.

Student Income

Contrary to what many people believe, the student's income is more heavily weighted than the parent's income when it comes to determining eligibility for college loans. 35% percent of the student's assets and 50% of their income is factored to determine need compared with 5.65% of parent's assets and 47% of their income.

Parent's Income

Until the age of 24, parents' income is a factor in whether or not a student qualifies for college loans on the basis of need. If you think your parents' income is too high, apply anyway. Many people are surprised to find that they are eligible for college loans despite their beliefs of ineligibility. Those who are turned down for college loans because of parents' income can consider the PLUS Loan, a type of college loan written in the parents' name and based on credit rating as opposed to need.