Can Green Card Holders Get Student Loans? FAFSA and Federal Aid

Green card holders can get student loans for green card holders on the same terms as U.S. citizens. The Department of Education classifies lawful permanent residents as “eligible noncitizens,” which qualifies you for Direct Subsidized and Unsubsidized Loans, PLUS Loans, Pell Grants, and federal work-study.¹ Private student loans are also open to you, but lenders will look at your U.S. credit history rather than your immigration status.

What Federal Aid You Qualify For

If you hold a valid Permanent Resident Card (Form I-551), you qualify for every Title IV federal student aid program. This is not a reduced or conditional version of aid — you are treated identically to a U.S. citizen for financial aid purposes.²

The main programs available to you:

Federal Pell Grants, need-based awards for undergraduates worth up to $7,395 for the 2025–2026 academic year. Grants don’t have to be repaid.³
Direct Subsidized Loans for undergraduates with demonstrated financial need. The government pays the interest while you’re enrolled at least half-time.⁴
Direct Unsubsidized Loans for undergraduate and graduate students, regardless of need. Interest accrues from disbursement.
Direct PLUS Loans for graduate students and parents of dependent undergraduates. For a Parent PLUS Loan, both the parent and the student must be a citizen or eligible noncitizen.²
Federal Work-Study, part-time employment arranged through your school.

Federal Loan Rates and Borrowing Limits

Federal loan interest rates are set each July. For loans first disbursed between July 1, 2025, and June 30, 2026, the fixed rates are 6.39% for undergraduate Direct Loans, 7.94% for graduate Direct Unsubsidized Loans, and 8.94% for Direct PLUS Loans. The rate is locked for the life of each loan.⁵

How much you can borrow depends on your year in school and dependency status. Dependent undergraduates can borrow between $5,500 and $7,500 per year, capped at $31,000 across their undergraduate career. Independent undergraduates can borrow $9,500 to $12,500 per year, capped at $57,500. Graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans, plus PLUS Loans up to the total cost of attendance.⁶

Applying Through the FAFSA

Every federal aid dollar starts with the Free Application for Federal Student Aid (FAFSA). The 2026–2027 FAFSA must be submitted by June 30, 2027, but filing early matters because some aid is distributed first-come, first-served, and many states and schools set earlier deadlines of their own.⁷

Your A-Number

The FAFSA asks for your Alien Registration Number (A-Number), which is the letter “A” followed by eight or nine digits printed on your green card.⁸ If yours has fewer than nine digits, add a leading zero after the “A.” Once you submit, the Department of Education transmits your A-Number to the Department of Homeland Security to verify your immigration status electronically.²

Foreign Income Reporting

If you earned income abroad or worked for an international organization during the tax year the FAFSA uses (two years before the academic year), you have to report that income on the FAFSA even if it never appeared on a U.S. tax return.⁹ Many permanent residents miss this step, and underreporting can trigger verification delays or put your aid at risk.

Conditional or Expired Green Cards

A conditional permanent resident card, the two-year version issued to some new permanent residents through marriage or investment, still qualifies you. The Department of Education lists conditional permanent residents as a separate eligible noncitizen category with the same access to federal aid.¹

An expired green card isn’t necessarily a dealbreaker either. The FSA Handbook notes that students whose Permanent Resident Card has expired may still be considered lawful permanent residents for financial aid purposes. Your school’s financial aid office will run your documentation through the government’s SAVE verification system, and your eligibility depends on the response.¹⁰ Renewing your card before you apply is still the safer path. An expired card combined with slow USCIS processing can push disbursement back by weeks.

Private Student Loans

Federal loans have hard annual and aggregate caps, and tuition at many schools runs well past them. Private student loans from banks, credit unions, and online lenders can fill the gap. Private lenders don’t look at your immigration category. They look at your credit score, income, and debt-to-income ratio.

This is where many green card holders hit a wall. If you arrived in the U.S. recently, you probably don’t have much U.S. credit history, and thin files lead to denials or high rates. The most common workaround is applying with a co-signer who has established U.S. credit. The co-signer takes on equal legal responsibility for the debt, so it’s a serious ask. Most lenders require the co-signer to be a U.S. citizen or permanent resident.

Private loans typically carry higher rates than federal loans and lack the safety nets that make federal borrowing more forgiving. Federal loans offer income-driven repayment, deferment, and forbearance. Private loans rarely include any of those features. Exhaust your federal options first.

Income-Driven Repayment for Federal Loans

One of the biggest advantages of federal borrowing is access to income-driven repayment (IDR) plans, which set your monthly payment as a percentage of discretionary income rather than a fixed amount tied to your balance. Available IDR plans include Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR).¹¹ After 20 to 25 years of qualifying payments, depending on the plan, any remaining balance is forgiven.

You’re eligible for IDR plans regardless of whether you’re a citizen or permanent resident, as long as you hold eligible federal loans. For anyone facing an uneven income trajectory in their first years working in the U.S., this can be the difference between manageable payments and default.

Keeping Your Aid Once You Have It

Qualifying once doesn’t mean your aid continues automatically. You resubmit the FAFSA each year, and your school must confirm you’re meeting its standards for satisfactory academic progress (SAP). SAP generally means maintaining at least a “C” average or its equivalent, completing a minimum percentage of attempted credits each term, and finishing your degree within 150% of the program’s published length. A four-year program allows up to six years.¹²

Fall below SAP and your school will notify you and suspend your federal aid. Most schools offer an appeal for extenuating circumstances, with a probationary period if the appeal is approved. Dropping below full-time enrollment, withdrawing from too many classes, or switching majors repeatedly can all quietly threaten your funding.

You also need to remain enrolled at least half-time in a degree or certificate program at a school that participates in the Direct Loan Program.⁴ And if your immigration status changes while you’re in school, tell your financial aid office right away. Losing permanent resident status ends your federal aid eligibility.

1
Federal Student Aid. Eligibility for Non-U.S. Citizens
2
Federal Student Aid. 2025-2026 Federal Student Aid Handbook – US Citizenship and Eligible Noncitizens
3
Federal Student Aid. 2025-2026 Federal Pell Grant Maximum and Minimum Award Amounts
4
Federal Student Aid. Subsidized and Unsubsidized Loans
5
Federal Student Aid. Interest Rates for Direct Loans First Disbursed Between July 1, 2025 and June 30, 2026
6
Federal Student Aid. 2025-2026 Federal Student Aid Handbook – Annual and Aggregate Loan Limits
7
Federal Student Aid. FAFSA Deadlines
8
U.S. Citizenship and Immigration Services. Tips on Finding Your A-Number and DOS Case ID
9
Federal Student Aid. Earned Foreign or International Income
10
Federal Student Aid. 2024-2025 Federal Student Aid Handbook – US Citizenship and Eligible Noncitizens
11
Federal Student Aid. Income-Driven Repayment Plans
12
Federal Student Aid. Satisfactory Academic Progress