Most student loans are secured by the federal government, which takes on the responsibility for collecting these loans. Starting in 2010, these loans were no longer issued by private companies but were issued directly by federal agencies. To be eligible for student loans, an individual must meet certain government criteria. Receiving food stamps will not make a person ineligible for student loans nor affect the receipt of loans in any way.
Student Loan Requirements
To receive most student loans, an individual must demonstrate financial need. This means that the person must not be able to pay for his education himself without suffering a severe financial burden. The person must also be entering an eligible program and meet specific state educational standards. For example, most states will only grant student loans to individuals with general equivalency degrees or high school diplomas. The person must also not be in default on any current student loans.
Food stamps are vouchers issued to low-income individuals that can be exchanged at participating retailers for food. Food stamps are issued by state agencies in accordance with federal guidelines. Food stamps cannot be exchanged for cash or used to purchase any other items but groceries. For this reason, food stamps are not considered a form of income in the way that certain government benefits, such as those provided by the Social Security Administration, are.
Food stamps do not at all affect whether a person can receive a student loan. This is because food stamps are not considered a form of income and therefore do not impact the federal government's assessment of an individual's financial need. In fact, if a person qualifies for food stamps, she will be far more likely to qualify for the receipt of a student loan. This is because food stamps are reserved for people with few financial resources.
Eligibility For Food Stamps
A person applying for food stamps might wonder whether his receipt of student loans affects his eligibility for food stamps. This is because to receive food stamps, a person must make below a certain income. If student loans were considered income, this might raise the recipient's income to the point where he cannot receive stamps. However, the state agencies that administer food stamps do not consider student loans to be a form of income.