Are Federal Student Loans Subject to Credit Scores?
The Stafford and PLUS loans do not depend on your credit score. Stafford loans are available without regard to your credit history, but the PLUS loan does require that the borrower not have an adverse credit history. An adverse credit history is defined as being more than 90 days late on any debt. PRIVATE STUDENT LOANS Private student loans (also called “alternative loans”) are used expressly for paying for college costs when other loans are unavailable. They are taken out from banks, lending companies or other private entities, in the student’s name. The loan payments can be deferred while the student is enrolled in school. You may apply for a private loan on your own, but today, most require a co-signer. Since private loans are credit-based, applying with a creditworthy co-signer may increase the likelihood of your approval and may help you get a lower interest rate. Basic Eligibility: • You must be at least 18 years of age, 19 in Alabama and Nebraska, 21 in Mississippi and Puerto Ri
