This year (freshman) all of my tuition is getting payed by government financial aid. However, I need money for other things like housing and credit cards. Will a student loan affect next year's financial aid even if all of the money were spent? What kind of student loan would be better to get, private or federal?
2007-06-23 14:34:52 · 4 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
If all your tuition is getting paid then you really don't need a student loan. Taking out a loan to pay for credit cards is not really a good idea because you just going to have to pay it off later with interest.
If you decide to get one anyways, Federal loans charge a lower interest rate than private loans. I believe it's 6.54% and is capped at 8%.
2007-06-23 14:59:06 · answer #1 · answered by crimsonedge 5 · 0⤊ 0⤋
I'm not entirely sure, but I was told that you have to wait to receive a financial aid award letter before you can apply for student loans (this was coming from someone at the financial aid office at my college) So I don't see how it could effect how much you get. Not sure if it's the same at every school, but that's how things work at my college. Good Luck.
2016-04-01 01:28:50 · answer #2 · answered by Anonymous · 0⤊ 0⤋
On the FAFSA form, I didn't see any related to debt or loan so that I can assume that loan does not affect your Financial Aid but your income or/and parents' income does affect Financial Aid...also, you grade in college(contract)
2007-06-23 15:59:27 · answer #3 · answered by Jason 4 · 0⤊ 0⤋
It should not effect it because it is not income it is debt. Be careful. You don't want to get overextended before you are employable. I recommend a part time job
2007-06-26 16:49:50 · answer #4 · answered by TAT 7 · 0⤊ 0⤋