My high school junior is preparing for college. If one of his parents has bad credit and low income, is his ability for a student loan affected?
Help a mama out and respond anonymously on our forum. Question about student loans
The student loan wouldn’t be based on your credit but it would be based on your income you would have to prove income but I’m sure he will get a loan just fine and financial aid
They do not look at credit.
They base it on parents income because they feel if you make enough money as a parent you should fund your childs education no questions asked.
So the lower the income the more likely you are to get an osap loan or some sort of help.
If the one parent alone makes too much which is unlikely they are expected to pay qll of their childs education so the loan would be non existant or very low.
If you apply for fafsa, they have an option that you can choose not to answer questions about your parents
If you make a lot of money, I suggest not putting your large income down. They tried to get my parents’ income, and I told them no. What I made compared to them was basically nothing, and it wasn’t like they were going to pay my loans. That was my responsibility. I ended up getting a very low interest rate, and it worked out a lot better for me.
Student loans for college are a waste of time and setting your kid up to be paying them off for 20 years.
Apply for FASFA, you would not have to pay that back
They ACTUALLY do look at credit as well. I couldn’t get student loans because my credit wasn’t good.
There are myriad types of student loans, but the best ones are Federal Loans or Direct Loans (?) (formerly Stafford Loans) administered by the US Dept of Education. Avoid private loans. I don’t know if your credit could affect your ability to get PLUS loans, which are issued to parents. But Direct Loans or Federal Loans or whatever they’re called this year are issued to the student, not the parents. Unless the student has declared bankruptcy or committed certain drug offenses, they’re eligible as far as I know. Parents don’t co-sign.
if there is low income, that person might be able to apply for financial aid
No it won’t be affected by parents credit. Student loans look at parents income. However, now as an adult with an obscene amount of student loan debt, I highly encourage the early application of grants and scholarships! The more grants and scholarships that can be obtained, the less student loan debt that has to be utilized!
FAFSA is the application process for student loans, and it will also pull back grants and scholarships the student is eligible for. However if the word loan is in any of the funding it will have to be paid back!
Look for scholarships too!!! There are plenty, you just gotta find them!
They went off my parents income until I was 24. I hadn’t lived with them since I turned 18, before even graduating HS
Most students loans are predatory they hope you cant pay it back thats how they get profit
If parents have a low income, he should qualify for grants. Stay away from student loans!!! Look for grants and scholarships.
Fassa, scholarships and a parent plus loan. My daughter is in her 3rd year of college. After graduation payments start in 6 months with 10 yrs to pay off.
First, an application for FAFSA is in order
Get the paper application from the student office
I asked my youngest to not accept a loan right away…but she panicked and did.
Second year I said Don’t panic and she didn’t. She received Scholarships and Grants!
Try and get a pell grant instead of student loans
No, they’re pariahs, they’ll give a dog money as long as they get their 19%+ interest rate
Try a community college and/or vocational training. Most cost much less, and your student will be able to earn while working on a 4-year degree. Join the military; my daughter joined the Navy out of high school, got her degree, and retired after 26 years, owing no college loans and able to get a good job while drawing retirement.
Look into financial aid and just because you can take out more in loans than you need does not mean you should. Student loans can ruin one’s credit especially if one becomes disabled, and if parents co-sign on a student’s loans if the child dies the parents still have to pay off the loans. You cannot file bankruptcy on them.
Try your best to AVOID student loans