Any college-bound student that may need student loans in order to pay the cost of attending college might worry that a bad credit score or no credit history at all will factor into the interest rate they get. In actuality, there are different loans that a student can obtain and federal student loans often do not consider one’s credit score when lending.
Filling out a FAFSA form is going to be the first step in seeing if a college student is going to qualify for student loans, and in actuality, the vast majority of college students will be able to obtain some form of student aid from loans. There are different types of federal student loans, but they usually have set interest rates and will put a cap on the amount that one can borrow in order to offset any risky lending.
It’s important to understand that college loans from the federal government can be affordable but they are not free money and any college student who obtains federal student loans should only borrow the amount of money they need to cover college costs. Also, before even turning to student loans, a college student should seek out as much assistance through scholarships and grants as they can obtain in order to help meet the costs of attending a university.
Borrowing as little money as you can to get through school will make repayment easier, obviously, but those who may have trouble after graduation when it comes to repaying their loans often can find some form of repayment assistance for federal student loans. Income-based repayment plans, forbearance programs, and student loan consolidations are available to make managing student loan debt easier, but acquiring as little student loan debt as you possibly can will truly be the best way to avoid any troubles in the future.