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Whether you apply for federal or private loans, you’ll need to meet several student loan requirements to receive your funds. Those requirements can vary depending on what type of loan you want.

It’s important to know exactly what the requirements are before applying. Because while student loans are a popular way to help pay for college, getting approved isn’t a given. Read on to learn the requirements for different types of federal loans as well as private loans.

Federal Student Loan Requirements

There are four different types of federal student loans available to college students and their parents. Loans generally require:

•   Demonstrated financial need (for most programs)

•   U.S. citizen or eligible non-citizen

•   Social Security number

•   Enrollment in or acceptance to an eligible degree or certificate program

•   Attendance at least half-time

•   Maintenance of satisfactory academic progress

•   Completion of the Free Application for Federal Student Aid (FAFSA®) form

•   Agreement to use the loan for educational purposes only

•   You’re not in default on a federal student loan and don’t owe money on a federal grant

•   High school diploma or GED certificate, state-approved homeschool setting, or enrollment in an eligible career pathway program and “ability-to-benefit” alternative

Depending on the type of loan, though, there may be additional requirements that parents or students need to meet. Read on for a quick breakdown of some additional requirements by loan type.

Direct Subsidized Loans

With Direct Subsidized Loans, the federal government covers your interest costs while you’re still in school. To qualify, you need to be an undergraduate student enrolled at least half-time at a participating school that will lead to a degree or a certificate. And you must show financial need through the FAFSA form.

Direct Unsubsidized Loans

With a Direct Unsubsidized Loan, you do not need to demonstrate financial need, and you are responsible for paying interest on the loan from the time you take it out. To qualify, you must be an undergraduate, graduate, or professional student who is enrolled at a participating school at least half-time. Typically, the program must result in a degree or certificate.

Recommended: College Tuition Payment Plans

Direct PLUS Loans

You can apply for a Direct PLUS Loan if you’re a graduate or professional student, or a parent of an undergraduate student. You generally can’t have an adverse credit history, which means, as stated by the Department of Education (DOE), you may not qualify if you have any of the following on your credit report:

•   Accounts with a total outstanding balance over $2,085 that are 90 or more days delinquent, or that have been placed in collection or charged off within the last two years.

•   Default determination within the last five years.

•   Bankruptcy discharge within the past five years.

•   Repossession during the last five years.

•   Foreclosure within the last five years.

•   Charge-off / write-off of federal student loans during the last five years.

•   Wage garnishment within the last five years.

•   Tax lien within the past five years.

That being said, if you do have an adverse credit history, you may still be able to receive a Direct PLUS Loan if you meet either of the following requirements and also complete credit counseling:

•   You get an endorser who does not have an adverse credit history.

•   You demonstrate to the DOE that you have extenuating circumstances relating to your adverse credit history.

Recommended: How To Pay for Grad School

Direct Consolidation Loans

A Direct Consolidation Loan allows you to consolidate multiple federal loans into one loan. To qualify, you must have one or more eligible loans and meet other requirements, including:

•   The loans must be in repayment or in the six-month grace period after you leave school.

•   In general, you must have at least one loan that isn’t already a consolidated loan.

•   If one or more loans are in default, you must make at least three consecutive monthly payments or agree to repay the Direct Consolidation Loan under one of the available income-driven repayment plans.

•   If your wages are being garnished to make payments on a defaulted federal loan, you can’t consolidate it until the wage garnishment order has been lifted or the judgment has been vacated.

Private Student Loan Requirements

While federal student loans often have the same requirements across the board because the DOE is the lender on all of them, that isn’t the case with private student loans. With private loans, requirements vary by lender, which means you may qualify for a loan from one private student loan company and not with another.

The requirements for a private student loan can also depend on what type you’re applying for, such as an undergraduate loan, graduate loan, or specialized loan.

In general, all private student lenders require a credit check and a minimum annual income. This means that if you don’t have a credit history, you may need a cosigner with an established credit history and a solid income to apply for the loan with you.

Each lender has different requirements when it comes to student loans. Common requirements among major private student loan companies include:

•   U.S. citizen, permanent resident, or international student.

•   Social Security number (some don’t require this for international students).

•   International students generally must have a cosigner.

•   Attendance at an eligible school.

•   Enrollment in a degree program and attendance at least half-time (some allow you to be less than half-time).

Depending on the lender, there may be other student loan qualification requirements and limitations, so it’s important to shop around to compare lenders and read the terms to make sure you qualify.

Also, look for private student lenders that allow you to get prequalified with just a soft credit check. This can give you an idea of your approval chances and show you possible loan terms you might qualify for without dinging your credit score.

The Takeaway

There are a number of requirements you may have to meet in order to qualify for a student loan. The requirements for different types of federal student loans tend to have more overlap, as they all have the same lender. Some are administrative, such as having a Social Security number. Others are risk-related, like not being in default on any previous student loans. Requirements for private student loans vary from lender to lender.

If you’re getting ready to apply for a loan to fund your education, make sure to explore your options and compare terms and rates. SoFi offers private student loans with fixed or variable rates and a number of repayment options.

SoFi offers no-fee private student loans for undergraduate and graduate students or their parents.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

There are several legitimate programs that federal student loan borrowers can utilize to have their federal student loans forgiven. Unfortunately, there are also student loan forgiveness program scams. Confusion surrounding loan forgiveness can create space for scammers to thrive. Most commonly, companies will promise something that cannot be done, or charge an upfront fee for something that can be done online for free.

The real trick for borrowers will be distinguishing between a company that is providing student loan counseling in a fair and legitimate way from a company that is trying to take advantage of unsuspecting students.

Is Student Loan Forgiveness a Scam?

There are millions of students paying college student loans and the idea of having those student loans forgiven can be very appealing. There are legitimate student loan forgiveness programs that are available to federal student loan borrowers who meet the program requirements.

These include programs like Public Services Loan Forgiveness or the Teacher Loan Forgiveness Program. There may be other options for forgiving student loans, depending on your background and program requirements.

What Is a Student Loan Forgiveness Scam?

A student loan forgiveness scam is when a service makes a promise that they cannot deliver on. For borrowers looking to get out of student loan debt quickly, these promises can seem promising. Unfortunately, scams may offer impossible promises like immediate loan forgiveness or may trick student loan borrowers into disclosing personal information.

Types of Student Loan Scams

Student loan scams can take many forms. Be wary of scams that come in the form of unsolicited calls, texts, or emails.

Student Loan Forgiveness Scam Calls

If you receive an unsolicited call asking you for information about your student loans, pay close attention. Some calls may present opportunities to cancel student loan debt. In general, any call offering a fast solution to pay off your student loans is a scam. The U.S. Department of Education offers legitimate forgiveness programs and opportunities to lower your student loan payments, all of which can be accessed at no cost to borrowers directly through their loan servicers.

The Federal Trade Commission (FTC) has a sample of what these calls might sound like, so you can be prepared.

Student Loan Forgiveness Text Scam

Texting is another avenue for scammers to contact student loan borrowers. These communications might include the need to “act immediately” or tout enrollment for debt relief is taking place on a first-come first-served in order to inspire a false sense of urgency.

Text scams are newer on the scamming spectrum, so consumers may not be expecting them. Instead of responding to the message, call your student loan servicer on the number listed on their website. In general, most student loan servicers will not conduct business via text messages.

Spotting Student Loan Scams

When it comes to student loan scams, the short rule of thumb is that anything that sounds too good to be true, probably is. For example, if a company claims that with an up-front fee that your loans will automatically be forgiven, it is a scam. No program exists where loans are “automatically” forgiven for a fee.

If you have a feeling that you might be getting scammed, do a thorough internet search for the company. More than likely, someone else has been in contact with, and possibly taken advantage of by, this company.

The problem with relying on an internet search to look for a scam? Not every scam will have been identified through an internet search, as they change their names and phone numbers often to avoid the background research a consumer might conduct. Here are a few common techniques used by student loan scammers.

Upfront Cost & Fees

Any student loan company offering to help you for an upfront fee is a scam. According to the FTC, it is illegal for companies to charge you before providing assistance. And importantly, borrowers can get help directly from their student loan servicer or Department of Education at no cost.

Immediate Student Loan Forgiveness

Another huge red flag — organizations offering to provide immediate or complete student loan forgiveness. Most government loan forgiveness programs require a record of qualifying payments and or employment certifications depending on the program.

Requesting Passwords

Broadly speaking, legitimate companies won’t ask you to verify personal details out of the blue. If you receive a call, email, or text asking you to disclose your passwords or any other sensitive personal information, think twice before responding. Sharing personal details could allow scammers to access your loan information, or other important accounts.

Avoiding Student Loan Scams

Attention to detail and diligence in communication can help you avoid some common student loan scams. Here are eight student loan scams to avoid.

1. A Promise of Immediate Forgiveness

Beware of any promise that seems too good to be true. Student loan forgiveness takes time, period. A company can only help you fill out paperwork for a forgiveness program; they cannot forgive your loans.

2. A Request for an Upfront Fee

Many scams rely on obtaining an upfront fee for something that either cannot be done (immediate loan forgiveness) or something that can be done for free, online (apply for a loan forgiveness program). You should only agree to payment once the company has completed the service in question.

3. Private Loan Refinancing

In general, only federal loans are eligible for loan forgiveness programs. Be cautious of any company that tells you that they can get your private loans forgiven. Private loans don’t typically offer forgiveness programs.

4. A Phone Call

Many scams start with a student loan forgiveness call. The Department of Education, who directs federal loan forgiveness programs, will never call you. If they need to correspond with you, they will by mail.

5. A Request to Pay Them and Not Your Lender

No company will ever make your student loan payments for you. You can pay them for a service, sure. But it is unwise to make your student loan payments to anyone except for who you owe.

6. A Request to Stop Making Student Loan Payments

No legit company will ever recommend you stop making your loan payments. A company working in your best interest will advise you to make all of your payments on the correct repayment plan so that you’re sure to qualify for any applicable loan forgiveness programs.

7. Asking for Your FSA ID

No one should ever ask for your Federal Student Aid ID. Your FSA ID allows you to log onto the government website where borrowers manage their federal student loans.

8. Official-Looking Insignias

Fraudsters do a good job of making their websites, seals, and paperwork look like official government branding. Just because something looks official does not mean it is official, so do your research.

Reporting Student Loan Scams

If you encounter any student loan scams, you can have a few different options for reporting them. You can report scams to the Department of Education through the Federal Student Aid website .

You can also report the business conducting the student loan scam to the Consumer Financial Protection Bureau . Anyone who has been contacted by what they believe to be a scam can also report it to the
FTC .

Looking for Safe Private Student Loans?

Not everyone qualifies for loan forgiveness. Others may not actually find that it makes the most sense for their own personal financial situation. (This may be especially true for loan forgiveness programs that require you to pay taxes on the forgiven balance, such as income-driven repayment.)

Those looking for a safe borrowing option may want to consider SoFi. Private student loans from SoFi have no fees and are available to undergraduate, graduate, and professional students, or their parents.

The Takeaway

Student loan scams rely on the borrower’s lack of understanding on how their loans, and loan forgiveness program works. Pay attention to texts, emails, or phone calls that over-promise on their ability to lower your monthly payments or have loans forgiven, as these are generally indicators that there is a scam, or other unfavorable business going on. If you have any doubt, contact your loan servicer directly to avoid falling into a scammer’s trap.

No matter what path you take with your student loans, always be sure to do adequate research. It’s hard to scam someone that understands their loans, and their options for repaying them.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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Editor’s Note: Since the writing of this article, the Biden administration has extended the pause on federal student loan repayment through December 31, 2022.

Student loan forgiveness was a hot topic on the campaign trail—but is one that is largely plodding along.

While President Joe Biden has endorsed $10,000 of federal student loan cancellation, few Republicans support blanket student loan forgiveness.

In June, Senate Majority Leader Chuck Schumer again urged Biden to cancel $50,000 in federal student loan debt for every borrower. Biden has asked the Justice Department and the Department of Education to assess whether or not he has the authority to unilaterally cancel student loan debt.

If the answer is “yes,” how much might he cancel? He has maintained that $50,000 is too much, especially given the relatively high incomes of graduates of high-tuition colleges.

Here are types of debt that have been canceled under Biden student loan forgiveness acts, and debt that may be forgiven in the future:

Loan Discharge for the Defrauded and Disabled

One major move Biden and his Education Department made in his first few months in office was discharging loans from for-profit institutions that defrauded students.

In March 2021, a decision was made to discharge nearly $1 billion worth of debt for 72,000 students. This was a continuation of a Trump-era policy, which had provided partial debt relief to those students.

The borrower defense to repayment program had been expanded under President Obama and trimmed under President Trump. This particular ruling applied to students who had had claims approved but had only received partial relief.

In June, the Biden administration discharged more than $500 million in debt for 18,000 former students of ITT Technical Institute, a for-profit school that closed in 2016. The administration is still working through a backlog of claims from the Trump administration.

The Biden administration also moved to forgive more than $1.3 billion worth of debt for 41,000 loan holders with permanent disabilities.

Advocacy groups say the move did not go far enough, and that the administration should forgive the $8 billion in debt held by over 500,000 borrowers who are considered totally and permanently disabled.

So what do these Education Department actions mean for those who do not fit under any borrower defense that has been invoked? The answer is still unclear, but the recent moves indicate that student loan reform is likely to be a key pillar of the administration.

The Latest on the Loan Payment Pause

The CARES Act in 2020 suspended payments and interest accrual on most federal student loans. The administrative forbearance was extended twice under Trump and again under Biden. The payment pause is slated to expire on Jan. 31, 2022.

Advocates see the next few months as an opportunity for the Biden administration to act quickly in terms of reform. Schumer and Sen. Elizabeth Warren have led the charge to urge Biden to continue the payment pause through at least March 2022.

But as of now, payments are on track to resume in February. This may be a good time for borrowers to plan how they will resume payments, look into forbearance or deferral programs if they are not in a position to do so, or consider refinancing with a private lender if they can get a better rate.

What Might the Education Department Cover Next?

On the campaign trail, Biden promised multiple student loan reforms. Some will likely have to be approved by Congress. They include:

• Free community college. In April, Biden promised to make good on that promise with the American Families Plan, which also would increase the maximum Pell Grant by $1,400.

• Overhauling the Public Student Loan Forgiveness (PSLF) program. Candidate Biden said he would streamline the program to make it easier for borrowers to qualify. He suggested $10,000 of forgiven undergraduate or graduate debt for every year of working in a nonprofit or public sector job, for up to five years.

People who have had qualifying public service roles would qualify for the program. The Department of Education is looking into PSLF claims, and Secretary of Education Miguel Cardona has called the current rejection rate “unacceptable.”

• Streamlining Pay as You Earn (PAYE) and Revised Pay as You Earn (REPAYE) programs. On the campaign trail, Biden promised to simplify and streamline these programs, at one point suggesting repayments of 5% of discretionary income for people making over $25,000, with any remaining debt discharged after 20 years. As of this month, the Biden administration is reviewing these programs.

• Permitting student loan debt discharged in bankruptcy. Cases are circulating in the lower courts related to student loans and bankruptcy, challenging the status quo that student loans are rarely forgiven in a bankruptcy filing. But this month, the Supreme Court declined to review a case in which student loan discharge was denied.

Recommended: PAYE vs REPAYE: What’s the Difference?

Loan Forgiveness Plans Right Now

Federal student loan holders have forgiveness options if they meet certain criteria. The Education Department is likely to move forward on some reform fronts, but it may be challenging for certain acts to gain congressional approval.
In the meantime, here are some current programs:

Income-based plans. Income-driven repayment plans, which include PAYE and REPAYE, are meant to forgive any remaining student loan balance after 20 or 25 years of monthly payments that are tied to income and family size.

PSLF. Direct Loan borrowers working for a federal, state, local, or tribal government or nonprofit organization are to have any loan balance forgiven after making 120 qualifying payments. But debt discharge from PSLF has been notoriously challenging.

Disability discharge. Total and permanent disability relieves you from having to repay a Direct Loan, a Federal Family Education Loan, and/or a Federal Perkins Loan, or to complete a teacher grant service obligation.

“Undue hardship” alongside bankruptcy. While bankruptcy alone won’t keep a borrower from having to pay back federal or private student loans, a rare few may be able to prove that continuing to repay student loans imposes an “undue hardship” on them and their family.

Teacher Loan Forgiveness Program. Those who teach at a low-income school or educational service agency for five years and meet other criteria may be eligible for up to $17,500 in federal student loan forgiveness.

Closed-school discharge. If your school closes while you’re enrolled or closed shortly thereafter, you may be able to get your federal loans discharged.

Discharge due to death. If the borrower dies, or the person taking out the loan dies, loans may be discharged. This also applies to Parent PLUS Loans if the parent dies or becomes disabled.

Borrower defense to repayment. This is the umbrella under which many borrowers received forgiveness under the Biden Department of Education for loans from for-profit institutions. Direct Loan borrowers may receive forgiveness if a school did something or failed to do something related to your loan or the educational services that your loan was intended to pay for.

An attorney who specializes in student loans can be helpful in ensuring that a borrower meets the requirements of certain forgiveness scenarios and can help ensure that any paperwork is in order.

Can Private Student Loans Be Forgiven?

When it comes to private student loans, cancellation happens rarely, if ever.

Some private lenders do offer certain protections, such as unemployment protection, in case you were unable to make payments.

If a borrower cannot pay a private loan, they may speak to their lender to determine what programs and paths may be available.

Right now, it is unclear whether broad student loan forgiveness, by the presidential or congressional act, could include private loans.

Recommended: What Is the Student Loan Forgiveness Act?

The Takeaway

Biden student loan forgiveness has totaled more than $2 billion for particular borrowers, but some advocates want to see much more. Will the student loan forgiveness 2022 story be one of sweeping or incremental change? Time will tell.

And as of now, the pause on federal student loan payments ends in January. Knowing your options to repay your student loans, which may include refinancing with a private lender—resulting in one new loan, with an eye toward a lower rate—will be helpful in creating a path forward.

If you refinance your federal student loans with SoFi, you can lock in your rate now, and make no payments until February 2022.

Photo credit: iStock/simarik

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

In our efforts to bring you the latest updates on things that might impact your financial life, we may occasionally enter the political fray, covering candidates, bills, laws and more. Please note: SoFi does not endorse or take official positions on any candidates and the bills they may be sponsoring or proposing. We may occasionally support legislation that we believe would be beneficial to our members, and will make sure to call it out when we do. Our reporting otherwise is for informational purposes only, and shouldn’t be construed as an endorsement.

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