Guaranteed student loans started in 1965, according to FinAid.
The criteria for applying for a guaranteed student loan depend primarily on a student's financial need, proof of U.S. citizenship and enrollment in college. Guaranteed student loans are offered by the federal government and state governments, according to CollegeScholarships.org. The loans provided through the Federal Direct Student Loan Program include The Stafford Student Loan and Parent PLUS Student Loans, the Graduate PLUS Loan. States provide their own student loans based on financial need. The states work with lenders to provide insurance for the student loans through the Federal Family Education Loan Program, according to CollegeScholarships.org.
Financial Need
According to the United States Federal Student Aid website, guaranteed student loans are based upon financial need. Financial need must be proven by filling out the Free Application for Federal Student Aid. The FAFSA is used to determine a student's total financial need by subtracting how much a student's family will contribute to their education and how much student aid from scholarships and Pell Grants a student will receive from the total college tuition. Loan limits are determined by the government and your financial need and the type of loan you apply for. Stafford Loans limits are usually $5,500 for the first year and increase annually as a student's education progresses. Repayment of the loans usually start about six months after graduation
High School Degree
Students applying for guaranteed student loans must have a high school diploma or a GED certificate. Since both are a prerequisite to be accepted into college, these prove that the student has fulfilled requirements to be accepted into a university. For students that were home schooled, the state establishes a test or may ask that you complete six credit hours of course work for a degree before an application for student aid is considered, according to the U.S. Federal Student Aid website.
Enrolled
To be considered for a guaranteed loan, a student has to be enrolled or accepted for enrollment at a university and prove that they are working toward a degree. Students can apply for guaranteed loans through most university's student financial aid or accounting offices after they have been accepted to the program, and, in turn, decide to attend the university. The papers for financial aid will be signed in the financial aid or accounting office shortly after course registration is finished.
U.S. Citizenship
To receive a guaranteed loan a student must be able to prove they are an American citizen or an eligible noncitizen. The FAFSA documents will require a student's valid Social Security Number and Permanent Resident Card, Passport or Resident Alien Card. Convictions of a crime may hurt chances of both permanent citizenship and the ability to obtain a guaranteed loan, according to the U.S. Student Financial Aid website. The Dream Act in California that was passed in September 2011 would alter the current law to allow undocumented immigrant students to apply for state-funded scholarships and financial aid in order to encourage them to obtain citizenship and become productive members of the society with higher paying jobs, according to the legislation.
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