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lauren t
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Hello,

 

I'm looking to buy a condo soon , and I'll also be attending school this spring and am anticipating the need for a studnt loan.

 

Do they look at your credit score or how much debt you are carrying, or is it pretty much if you need it they will give it to you kind of process?

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Your credit will play a large part in whether they require a co-signor for your loan and and what interest rate if you are getting a private student loan. Debt load will also factor. It has become increasingly difficult to get student loans over teh past year due to the larger credit crunch.

 

Do some research on the web before you dive in because there are lots of nuances to the studend loan market at the moment.

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It depends on which type of loan you apply for. Federal loans, like Stafford and Perkins loans, are not credit-based at all. They'll never even consider your scores for those.

 

Private loans are credit based and they have higher rates and less favorable repayment terms than federal loans. As campusvitals said, you score will determine whether you need a cosigner and the interest rate you pay, if you choose to apply for a private loan.

 

You can find a lot of good general information about student loans at finaid.org and at your school's financial aid office website.

Edited by Saria
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  • 3 weeks later...
It depends on which type of loan you apply for. Federal loans, like Stafford and Perkins loans, are not credit-based at all. They'll never even consider your scores for those.

 

Private loans are credit based and they have higher rates and less favorable repayment terms than federal loans. As campusvitals said, you score will determine whether you need a cosigner and the interest rate you pay, if you choose to apply for a private loan.

 

You can find a lot of good general information about student loans at finaid.org and at your school's financial aid office website.

 

 

What are federal loans based on?

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It depends on which type of loan you apply for. Federal loans, like Stafford and Perkins loans, are not credit-based at all. They'll never even consider your scores for those.

 

Private loans are credit based and they have higher rates and less favorable repayment terms than federal loans. As campusvitals said, you score will determine whether you need a cosigner and the interest rate you pay, if you choose to apply for a private loan.

 

You can find a lot of good general information about student loans at finaid.org and at your school's financial aid office website.

 

 

What are federal loans based on?

 

As far as I know, they are usually just based on financial need, at least for subsidized loans. You'd have to fill out a FAFSA and have it sent to your school to see what you qualify for.

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  • 2 weeks later...
It depends on which type of loan you apply for. Federal loans, like Stafford and Perkins loans, are not credit-based at all. They'll never even consider your scores for those.

 

Private loans are credit based and they have higher rates and less favorable repayment terms than federal loans. As campusvitals said, you score will determine whether you need a cosigner and the interest rate you pay, if you choose to apply for a private loan.

 

You can find a lot of good general information about student loans at finaid.org and at your school's financial aid office website.

 

 

What are federal loans based on?

 

As correctly noted, the Federal Stafford loans are not based on credit at all. They never pull a credit report. Income does not matter. Very low income in fact can help you qualify for a federal Pell grant in addition to the loans. You will fill out income information on the application, so have a W-2 or 1040 ready.

 

Generally speaking you will be approved for the loans unless you have defaulted student loans, have student loans that you are attempting to include in a bankruptcy, are not a US citizen (resident alien is ok), or if you did not register for selective service and you were required to (if you are 26 or less you can still register of you have not yet done so).

There are a few other things that can disqualify you, but these are the most common. Stafford loans are easy to get for most people.

 

The loan approval is based on meeting eligibilty requirements like those noted above. Amounts are based on how many credits you have (if any), and your dependency status.

You will get less money if you are a "dependent" student. Generally speaking this means you are less than 24 years old, are not married, do not have children, are not an orphan, and have not been an award of the state.

If you are dependent, your parent(s) will have to fill out a section of the FAFSA application as well.

 

The application is at www.fafsa.ed.gov

You will need a PIN number to sign the application www.pin.ed.gov

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  • 2 weeks later...
As correctly noted, the Federal Stafford loans are not based on credit at all. They never pull a credit report. Income does not matter. Very low income in fact can help you qualify for a federal Pell grant in addition to the loans. You will fill out income information on the application, so have a W-2 or 1040 ready.

 

Generally speaking you will be approved for the loans unless you have defaulted student loans, have student loans that you are attempting to include in a bankruptcy, are not a US citizen (resident alien is ok), or if you did not register for selective service and you were required to (if you are 26 or less you can still register of you have not yet done so).

There are a few other things that can disqualify you, but these are the most common. Stafford loans are easy to get for most people

.

 

Are Federal Loans of this type, Stafford and Perkins, available for advanced degrees as well? I already have a B.S., and I thought someone told me these are designed for the first degree--however, I know very little about them since my first degree was many years ago. I got a small Pell Grant twice back then, and since it was a grant it did not have to be paid back.

 

like those noted above. Amounts are based on how many credits you have (if any), and your dependency status.

You will get less money if you are a "dependent" student. Generally speaking this means you are less than 24 years old, are not married, do not have children, are not an orphan, and have not been an award of the state.

If you are dependent, your parent(s) will have to fill out a section of the FAFSA application as well.

 

I am over 24, unmarried (divorced), no children, no dependents, not an orphan, never been a ward of the state.

Edited by BubbaGump
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As correctly noted, the Federal Stafford loans are not based on credit at all. They never pull a credit report. Income does not matter. Very low income in fact can help you qualify for a federal Pell grant in addition to the loans. You will fill out income information on the application, so have a W-2 or 1040 ready.

 

Generally speaking you will be approved for the loans unless you have defaulted student loans, have student loans that you are attempting to include in a bankruptcy, are not a US citizen (resident alien is ok), or if you did not register for selective service and you were required to (if you are 26 or less you can still register of you have not yet done so).

There are a few other things that can disqualify you, but these are the most common. Stafford loans are easy to get for most people

.

 

Are Federal Loans of this type, Stafford and Perkins, available for advanced degrees as well? I already have a B.S., and I thought someone told me these are designed for the first degree--however, I know very little about them since my first degree was many years ago. I got a small Pell Grant twice back then, and since it was a grant it did not have to be paid back.

 

like those noted above. Amounts are based on how many credits you have (if any), and your dependency status.

You will get less money if you are a "dependent" student. Generally speaking this means you are less than 24 years old, are not married, do not have children, are not an orphan, and have not been an award of the state.

If you are dependent, your parent(s) will have to fill out a section of the FAFSA application as well.

 

I am over 24, unmarried (divorced), no children, no dependents, not an orphan, never been a ward of the state.

 

I also got student loan for undergrad, but it was federal loan mixed with PELL+CAL grant. So I only had to fill out FAFSA and the school took care of the rest. The money was disbursed to me and I did not have to sign anything. Sorry I can't answer your question about loan for grad school. :D

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Yes, you will be eligible for Stafford loans when seeking an advanced degree. I do not know about Perkins. I do not deal with that at all.

You will be an "Independent" student for sure. All post graduate students are considered independent by Stafford standards. This means you will get the maximum funding amount available for your degree program.

 

Pell grants are for undergraduate students only. You will not be eligible if enrolled in a masters program or higher.

 

There is a lot of information on the FAFSA site. Check out the site map for some info.

 

There is also some good info here...

 

http://studentaid.ed.gov/students/publicat...lish/glance.htm

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