Policy Frequently Asked Question: Underage Student Borrower

I have a student who is only 16 years old but has graduated from high school. Can she endorse a Master Promissory Note and borrow Stafford loan funds?

The Higher Education Act of 1965, as amended, does not place age limitations on borrower eligibility, and, in fact, has explicit provisions to ensure that any note signed by an otherwise underage student-borrower is enforceable despite the borrower’s age.

Some states, however, may have provisions that limit the ability of certain minors to endorse a legal agreement. USA Funds^® encourages the financial aid office to consult its own legal counsel when deciding if the student’s age is an issue with respect to endorsing any note and obtaining loan funds.