Yes, green card holders can get federal student loans. Federal law treats lawful permanent residents as “eligible noncitizens,” which puts you in the same pool as U.S. citizens for Direct Subsidized and Unsubsidized Loans, Pell Grants, and Federal Work-Study. You apply through the same FAFSA, borrow at the same rates, and repay under the same plans. A few pieces of the system changed for graduate and professional students starting in July 2026, and conditional residents have some extra timing to watch, but the core eligibility answer is straightforward.
What Eligible Noncitizen Status Gives You
Under 20 U.S.C. § 1091, you qualify for federal grants, loans, and work-study if you are “a permanent resident of the United States.”1Office of the Law Revision Counsel. 20 USC 1091 – Student Eligibility That single sentence in the Higher Education Act of 1965 is what opens the entire federal aid system to green card holders. You don’t need to be on a path to citizenship or have lived in the country for any minimum period. You do need a valid Permanent Resident Card (Form I-551) or equivalent documentation.
On the FAFSA, you select “Eligible Noncitizen” as your citizenship status and enter your Alien Registration Number so the system can verify your immigration status electronically.2Federal Student Aid. Student Citizenship Status Once confirmed, you’re treated the same as a citizen for every Title IV program.
Federal Loan Types, Rates, and Undergraduate Limits
The main federal loans available to you are Direct Subsidized Loans, Direct Unsubsidized Loans, and Parent PLUS Loans (taken out by a parent of a dependent undergraduate). Subsidized loans are the better deal because the government pays the interest while you’re enrolled at least half-time. Unsubsidized loans start accruing interest immediately but don’t require you to show financial need.
For loans first disbursed between July 1, 2025 and June 30, 2026, the fixed rates are 6.39% for undergraduate Direct Subsidized and Unsubsidized Loans, 7.94% for graduate or professional Direct Unsubsidized Loans, and 8.94% for Direct PLUS Loans. These rates are set annually from the 10-year Treasury note auction and stay fixed for the life of each loan.3Federal Student Aid. Interest Rates and Fees for Federal Student Loans Rates for 2026–2027 will be announced after the May 2026 Treasury auction.
Annual undergraduate borrowing caps are unchanged for 2026–2027. Dependent students can borrow between $5,500 and $7,500 a year depending on their year in school, with a $31,000 aggregate cap. Independent students, and dependent students whose parents can’t get PLUS loans, can borrow between $9,500 and $12,500 a year, with a $57,500 aggregate cap.4FSA Partners. Annual and Aggregate Loan Limits The subsidized portion of these limits maxes out at $23,000 across your entire undergraduate career.
What Changed for Graduate and Professional Students in 2026
Starting July 1, 2026, graduate and professional students can no longer take out Direct PLUS Loans.5FSA Partners. One Big Beautiful Bill Act FAFSA Processing Updates Borrowing is now limited to Direct Unsubsidized Loans with new caps: $20,500 a year for graduate programs (up to $100,000 total for the degree) and $50,000 a year for professional programs like law, medicine, and dentistry (up to $200,000 total).6Columbia University Student Financial Services. Changes to Federal Student Loans Parent PLUS Loans for undergraduates also face new caps of $20,000 a year and $65,000 for the degree.
If you’re heading to graduate school, the elimination of Grad PLUS means federal borrowing alone may not cover your full cost of attendance. Employer tuition assistance and private loans become more important to plan for in advance.
Pell Grants and Work-Study
Federal aid isn’t only loans. Green card holders who demonstrate financial need can receive a Pell Grant of up to $7,395 for the 2026–2027 award year.7Federal Student Aid. Federal Pell Grants Grants don’t need to be repaid. Your actual award depends on your Student Aid Index, enrollment status, and cost of attendance.
Federal Work-Study provides part-time jobs for students with financial need, often on campus or with approved off-campus employers, paying at least the federal minimum wage. Both Pell and Work-Study are open to permanent residents on the same terms as citizens.
Documents You’ll Need
Gather the paperwork before you start:
- Your Permanent Resident Card (Form I-551) as primary proof of status.8U.S. Citizenship and Immigration Services. List A Documents That Establish Identity and Employment Authorization
- Your Social Security Number, required for the FAFSA and for private lender credit checks.
- Your Alien Registration Number (A-Number), the seven-, eight-, or nine-digit number printed on your green card. The FAFSA needs it to verify your status with immigration authorities.9U.S. Citizenship and Immigration Services. A-Number / Alien Registration Number
If Your Card Hasn’t Arrived Yet
New permanent residents sometimes wait months for the physical card. You can still prove your status with a machine-readable immigrant visa (MRIV) stamped in your passport, as long as it carries the statement “Upon endorsement serves as temporary I-551 evidencing permanent residency” above the machine-readable section. That stamp works as a temporary Form I-551, valid for one year from the date of admission.10FSA Partners. U.S. Citizenship and Eligible Noncitizens
If you’ve been approved for permanent residence but are still waiting for the card, a Form I-797 marked “Notice Type: Approval Notice” combined with your A-Number can establish your status. A receipt notice (Form I-797C) showing that your application is pending does not count.10FSA Partners. U.S. Citizenship and Eligible Noncitizens A pending application is not the same as an approved one for financial aid purposes, and that distinction trips people up constantly.
Filing the FAFSA and Immigration Verification
You complete the FAFSA online at studentaid.gov. In the citizenship section, select “Eligible Noncitizen” and enter your A-Number exactly as it appears on your card.2Federal Student Aid. Student Citizenship Status The system attempts to verify your status automatically through a data match with the Department of Homeland Security. If the match succeeds, no further immigration documentation is needed.
After you submit, you’ll receive a FAFSA Submission Summary showing your estimated Student Aid Index, estimated Pell Grant eligibility, and other federal aid you may qualify for.11Federal Student Aid. FAFSA Submission Summary – What You Need To Know Your schools use that data to build your aid offer.
If the automated match fails or produces a discrepancy, your school’s financial aid office runs a manual check through the Systematic Alien Verification for Entitlements (SAVE) system. Most cases resolve within seconds of the initial SAVE response. When additional verification is needed, usually because of a data mismatch or unusual immigration history, the manual review takes roughly 18 federal workdays.12U.S. Citizenship and Immigration Services. SAVE Verification Response Time Aid disbursement is on hold during that wait, so file your FAFSA early if you think verification could get complicated.
Conditional Residents Have Extra Timing to Watch
If you received your green card through a qualifying marriage or the EB-5 investor program, you’re a conditional permanent resident with a two-year card instead of a ten-year one. You’re still eligible for federal student aid, but your status has to be documented each award year with valid, unexpired documentation.10FSA Partners. U.S. Citizenship and Eligible Noncitizens
You must file a petition to remove the conditions before the two-year card expires. If the card lapses without a filing, or if your petition is denied, your financial aid office can determine you’re no longer an eligible noncitizen. In that case, you’d be liable to repay all Title IV funds you received, except wages already earned through Work-Study.10FSA Partners. U.S. Citizenship and Eligible Noncitizens If you’re a conditional resident nearing that expiration date, talk to both an immigration attorney and your financial aid office before the deadline passes.
Student Loans and Public Charge
Borrowing for school does not count against you under the “public charge” test USCIS uses when adjusting status or reviewing certain benefits. The agency lists “student loans and home mortgage loan programs” among the benefits it does not consider in a public charge determination.13U.S. Citizenship and Immigration Services. Public Charge Resources Pell Grants, Work-Study earnings, and other education-related aid are similarly excluded. Taking federal or private student loans has no negative effect on your immigration record.
Repayment and Private Loans
Once you graduate or drop below half-time, federal loans enter a six-month grace period before payments begin. Green card holders have access to the same repayment plans as citizens, including income-driven plans that cap your monthly payment at a percentage of your discretionary income. Deferment, forbearance, and forgiveness programs are all on the table on the same terms.
Private loans fill the gap when federal aid doesn’t cover your full cost of attendance, and green card holders are generally eligible to apply. The approval process is different from the federal side. Private lenders look at credit score, income, and debt-to-income ratio. Permanent residency signals you’re staying long enough to repay, but it doesn’t substitute for a thin credit file. If you arrived in the U.S. recently and haven’t built domestic credit, most lenders will require a co-signer who is a U.S. citizen or permanent resident with established credit. A few lenders now offer products for borrowers without a U.S. credit history and no co-signer, though the rates or repayment terms tend to be less favorable, so compare the total cost before signing.
Private loans generally don’t offer income-driven repayment or forgiveness. Federal loans carry safety nets that private lenders don’t match, so preserve that flexibility while you can.