Do i have to have good credit for federal loans and private loans for school?

Question

I am applying for financial aid to pay for school, but I might need loans to help me besides the grants. Do I need good credit for me to get any type of loan to help pay school?

Answer 1

There is no credit check for the Federal Stafford loan - after all, it was created specifically because the typical student hasn't had a chance to establish a credit history. There is a credit check required for a Federal Parent PLUS loan, but it still has a relatively high approval rate.

Private student loans, since they are not guaranteed by the gov, are credit-based. Your interest rate will be determined by your credit rating. If you have a co-signer with good credit, that can help.

In general you want to max out your federal loans (start by applying for the FAFSA) since they usually have the best interest rates and most generous repayment terms. Then, get private loans to cover the rest.

As always, be conservative and borrow only what you need.

Here's more info if you need it:

Stafford loans http://www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/federal_student_loans/
Private loans http://www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/private_student_loans/
FAFSA www.fafsa.ed.gov

Answer 2

Personally, I would choose a better school. If your school can't give you enough aid to fund with Stafford loans only... honestly, it's not a very good school. Don't resort to private loans... private loans are evil. You will need a cosigner, your parents. Jeopardizing both your credit if something terrible were to happen. You should want to have your parents do the PLUS loan. Your parents are responsible for paying this back, not you. Private loans have variable interest rates. Ever year of the sub prime mortgage crisis? This is caused by folks taking out variable rate loans who didn't know any better. Private loans have MUCH longer payment terms.. so even if the rates are comparable... over the span of paying if off for 25 years instead of 10, they actually get MORE of your money.... and the delayed payments option at 8% just compounds the interest and makes it worse.

Answer 3

Good credit is always good to have. The best thing to do is go speak to ur financial aid office and see if they can help your find more ways to getting free money without u having to apply for a loan. But if u must try for a loan... I believe that u do need good credit, credit is what people look at to see if u have a good history of being able to pay for their money back. I'm sure that they're are companies out there who understands that ur a student who needs money to pay for college. If u approves for a loan... make sure it has a GREAT low interest rate!

Answer 4

No. I have and have had Federal Stafford unsubsidized and subsized loans each and every year. Once you apply for the FAFSA, you will complete an entrance interview for the loans if you choose loans. Your school will find you a lender. I've never had a problem. When I first started going to college my score wasn't good. It is now after a few years. Go into your Finaid office and talk to an advisor, they can reassure you.

Answer 5

You can't have defaulted on any other federal loans or grants... however in my recollection good credit is NOT a requirement for these types of loans. Good question!

Answer 6

No, I got student loans to pay for all of my schooling and I have terrible credit.

Answer 7

Yes, you need good credit, progress towards a degree and a gpa above 2.5.

Answer 8

Only one of the above answers is completely accurate. I'm disappointed that some would answer if they don't really know.