Does credit score have an impact on students’ ability to apply for loans?
As part our College Q & A guide, we decided to ask your questions to the the experts. Here are their answers.
Robert Weinert, Financial Aid Professional
A students’ credit score does not factor into the decision of a Federal Direct Loan. However, most consumer loans or private education loans are determined based on the credit score and do impact the the ability of a student to apply for and be approved for a loan. The higher the credit score the better and budgeting is key.
王文君 June Scortino, President, IVY Counselors Network
It depends on the type of loans that are obligations of the student. with or without a co signer is also improtant fact. credit score of the parents can be resolved by different type of loan by going through the process. bad credit can still get you the parents plus loan.
Suzanne Shaffer, Owner, Parents Countdown to College Coach
Credit scores typically impact private student loans. Federal loans are more forgiving and most students and parents qualify regardless of their credit score. Private student loans may require a co-signer if the student is not credit worthy or their income level is not high enough to justify the amount of the loan.