Anyone who may have a low credit score can still qualify for a college student loan to help pay for tuition and fees, which are on the rise at many colleges and universities across the country. A bad credit score can hurt someone when they are seeking a line of credit for various expenses, but when it comes to college loans federal student loans are available to individuals with a bad credit score.
While private student loans are also an option, these types of loans will typically require a credit check and if someone has a poor credit score they may be unable to borrow this type of loan or will get a higher interest rate as result. Federal student loans, typically, have an affordable interest rate and come without the need of a credit check. Usually there is a cap on the amount of loans that one can borrow depending on the year they are entering in school, but they can still be of great help when paying tuition costs.
Federal student loans have changed in their borrowing practices as they are now offered directly from the federal government, rather than going through a financial institution. This is hoped to save on costs and can make both federal student loan funds and college grants more available.
Any student who is in need of federal student loans will have to fill out a FAFSA form to see what types of free federal financial aid they may be able to obtain. Some students with a bad credit score might be able to meet their college costs that they face with scholarships and grants, but others who will need student loans to help pay the entirety of their tuition do not have to worry about being unable to borrow due to their credit score.
While federal student loans can be quite helpful, it is important that a student exit college with as little student loan debt as they can, so borrowing the minimum amount one needs or seeking out as many scholarship and grant opportunities as possible should be the first step one takes when paying for college.