Potential college students with a bad credit score often ask if the option of getting a student loan is available to them. Federal student loans are one of the most common loans that college students acquire over their college career and a bad credit score isn’t going to get in the way of a student and such a loan.
While there are student loans that will look at a student’s credit score, many students that are college-bound are out of high school and have no credit history at all. Federal student loans vary, but they usually come with a low interest rate and they are available to practically every college student.
Rather than look at a student’s credit score, federal student loans will often only set caps for borrowers. These caps on the amount of money that a student can borrow are contingent upon the time a student has been in college, meaning a freshman will borrow less that a senior.
While federal student laws are set to change in coming years, which could make them more affordable and available to students, presently student loans are still a great way to pay for an education.
However, college-bound students need to be sure they pursue and exhaust any and all financial aid opportunities in the form of scholarships and grants before they start taking out student loans, as additional aid means one has to take out less in student loans.