Can You Get Student Loans With A Felony?

Introduction

Having a felony conviction can make getting student loans with a felony more difficult, but it is often still possible with some additional steps that you can you get student loans with a felony?. Here is what you need to know about getting student loans if you have a felony record.

The Challenges of Getting Student Loans with a Felony

There are a few key challenges faced when trying can you get student loans with a felony conviction:

Many government loans require applicants to indicate if they have a felony. This includes federal student loans like Stafford, PLUS and Perkins loans. Private student loans also often ask about criminal history.

A felony conviction is seen as making applicants a higher credit risk. This may mean higher interest rates, more conditions or denials for private loans.

Drug-related felonies can make applicants ineligible for federal aid for set periods. Other violent or repeat offenses may also affect eligibility.

Some colleges may be less likely to admit students with a criminal record or may not award institutional aid.

So having a felony does negatively impact the process, but options are still available in many cases.

Types of Student Loans Available with a Felony

While access to federal loans may be limited, here are some of the main options for can you get student loans with a felony:

Private Student Loans>

Private student loans from banks, credit unions and online lenders are an option. Approval is based on credit and income, so interest rates may be higher for those with a record. Having a cosigner with good credit helps.

State Aid

Some states and colleges offer grants, scholarships and loans that may be more accessible to those with a record. These awards may not consider criminal history in eligibility.

Institutional Aid

If admitted, students can still qualify for college-specific grants, scholarships and loans in some cases. Discussing circumstances with the financial aid office is advisable.

Alternative Loans

Loans targeting students with unique situations are offered by some non-profits and specialty lenders. These tend to be small loans, but provide another option.

With extra effort, those with a felony can often find some form of aid to help cover educational expenses.

Improving Your Chances of Getting Student Loans with a Felony

There are steps applicants can take to boost their chances of getting approved for can you get student loans with a felony:

Appealing aid rejection: Students can appeal denials of federal and state aid in some cases, especially if the offense is older. Providing evidence of rehabilitation can help.

Including an explanation: When completing aid applications, include a personal statement explaining the charges and efforts made to rebuild your life.

Applying to many lenders: Don’t give up after a denial. Persistently apply to multiple private lenders and programs to increase success odds.

Enlisting a cosigner: Asking a person with good credit to cosign on a private loan significantly improves the chances of approval.

Focusing on accredited colleges: Seek schools that use merit-based aid or don’t ask about criminal history. Avoid diploma mills.

Considering loan alternatives: Crowdfunding, employer tuition assistance or deferred payment plans from colleges are some alternatives if loans aren’t possible.

With determination and an understanding of options, those with a felony conviction can still find pathways to paying for continuing education.

Federal Student Aid Eligibility with a Felony Conviction

For federal student loans and grants, eligibility with can you get student loans with a felony depends on the type of conviction:

Drug-related felonies lead to a suspension of federal aid eligibility for a period. Early reinstatement is possible by completing a drug rehab program.

Convictions for possession of drugs may not impact aid, while sale and trafficking do.

Violent felonies do not incur mandatory loss of eligibility, but will be considered during applications.

Repeat convictions for multiple offenses increase chances of denial.

Older felonies matter less, especially if committed as a juvenile. Recent ones cause greater concern.

Only convictions at the time of application are considered. Future convictions don’t automatically eliminate aid for enrollments.

Always disclose felony history accurately on the FAFSA form and be prepared to provide documentation if requested. Consulting with your chosen school’s financial aid office about eligibility can also help.

Other Ways to Pay for College with a Felony Conviction

If you find your student loan options are still limited after exhausting all options, here are a few other ways to pay for school:

Apply broadly to scholarships and grants, including those offered directly by colleges you are applying to. Don’t limit yourself to federal or state aid sources.

Ask about deferred payment plans and tuition installment plans offered directly through universities. This spreads out what you owe across the term.

Look into employer tuition assistance that may be available, especially if you’ve been working at a company long-term before returning to school.

Consider crowdfunding through platforms like GoFundMe. Share your story and educational goals to incentivize donations from others.

Factor in lower-cost community colleges for at least part of your studies to significantly reduce overall tuition obligations.

Evaluate vocational programs and trade schools as well, which tend to cost less than traditional four year degrees and lead directly to employment.

Don’t let a felony conviction stop you from seeking higher education. Where there is a will, there’s a way!

Financial Options at Different Types of Colleges

The types of student loans and financial aid available can also vary depending on the school:

Public Colleges and Universities

• May offer state and institutional grants and scholarships not limited by felony status.
• Typically participate in federal loan programs, subject to general eligibility restrictions based on the crime.
• Offer payment plans and sometimes emergency aid funds that provide more flexibility.

Private Non-Profit Colleges and Universities

• Rely more heavily on institutional grants and scholarships for affordability.
• Can choose to participate in federal loan programs, but not required. More flexibility.
• Private student loans also important sources, along with school’s own payment plans.

For-Profit Colleges and Universities

• Major sources will be federal loans, if eligible based on your crime history.
• Private lenders may be wary of for-profit schools with less certain outcomes.
• Institutions themselves may offer direct tuition financing plans.
• Overall, aid options can be more limited compared to public/non-profit schools.

Thinking strategically about the types of colleges you apply to can improve your chances of can you get student loans with a felony. Aim for public or private non-profit institutions when possible for the widest range of aid opportunities.

Common Concerns and Challenges

Here are some common concerns and challenges that come up when seeking student loans with a felony, and how to address them:

Repaying Loans with Limited Job Options

• Look for careers known to be “felony-friendly” and offer a livable wage, like construction and trades. Seek employers open to hiring those with records.
• If job options are limited in your field after graduating, apply for income-driven repayment plans to cap federal loan payments at an affordable percentage of your earnings.

Meeting Application Deadlines Before Release

• Research aid application procedures and deadlines as soon as possible while incarcerated so you’re prepared.
• Ask a family member or prison counselor for help gathering needed documents and submitting applications on your behalf.
• Immediately apply for aid after your release to take advantage of opportunities that may still be available.

Key Takeaways

• Having a felony makes can you get student loans with a felony harder but options are still available, especially private loans and state/college aid programs.
• Take steps like appealing rejections, explaining your circumstances, applying broadly, and securing a cosigner.
• Eligibility for federal aid depends on the type of crime and time elapsed. Disclose accurately when completing the FAFSA.
• For private loans, focus on building credit, applying widely, highlighting rehabilitation efforts, and starting at community colleges.
• Other strategies like scholarships, tuition payment plans, employer tuition assistance, and vocational training are alternatives.

A previous felony does not have to be the end of your educational dreams. Understand the options and persistently seek financing to unlock your potential through education.

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