http://www.studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan Student Loan news and updates Sat, 28 Aug 2010 20:17:57 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan/comment-page-1#comment-2361 site builder Sat, 23 Jan 2010 15:44:00 +0000 http://studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan#comment-2361 No. No.

]]> http://www.studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan/comment-page-1#comment-2360 Economy & Finance Sat, 23 Jan 2010 14:56:29 +0000 http://studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan#comment-2360 Federal Stafford Loans Even with savings, grants and scholarships, you may still need money to pay for graduate school. We offer high-quality graduate Federal Stafford Loans and we'll help you understand the process from start to finish. Graduate Federal Stafford Loans from Citi are the best place to start with a low, fixed interest rate set by the government. Federal Stafford Loans
Even with savings, grants and scholarships, you may still need money to pay for graduate school. We offer high-quality graduate Federal Stafford Loans and we’ll help you understand the process from start to finish.
Graduate Federal Stafford Loans from Citi are the best place to start with a low, fixed interest rate set by the government.

]]> http://www.studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan/comment-page-1#comment-2359 NotAnyon Sat, 23 Jan 2010 13:19:14 +0000 http://studentload.info/general/is-my-credit-score-good-enough-for-a-student-loan#comment-2359 Rowan: You're over-simplifying the loan approval process - no lender will approve your loan application on the basis of a credit score. To be approved for a student loan, you'll need to satisfy the lender's guidelines for income, assets, debt-to-income ratio and credit history. It's just just about your score. The score is certainly part of the process - it tells the lender if you've been a responsible borrower in the past. The problem, of course, is that you don't repay the loan with your credit score - you repay the loan with your income and your assets. If your credit score is 800, but you make $600 a month, you're not going to be in any position to make a $400 monthly loan payment. If you make $5000 a month, but you have $4300 a month of other monthly obligations, you're not going to be able to make a $400 monthly loan payment. To qualify for a student loan without a cosigner, you're going to need a substantial income, you're going to need, not just a positive credit history, but a well-established positive credit history, and you're going to need "spendable" money - money that isn't already committed to some other debt obligation. If you have a 680 score, a great income, low debts and a well-established credit history, you may well be approved for a student loan. If you're like most college students, and you have a part-time job, and a fledgling credit history based on some minor credit card debt and a few gas cards, it's not highly likely that you'll be approved without a cosigner. If you're looking for money for college, your primary focus should be on the government's Stafford loan program, which will lend you $5500-$7500, depending on your year in school. If you're over 24, or you're married, you support children of your own, or you're in graduate school, you will be eligible to borrow considerably more. Good luck to you! Rowan:
You’re over-simplifying the loan approval process – no lender will approve your loan application on the basis of a credit score.
To be approved for a student loan, you’ll need to satisfy the lender’s guidelines for income, assets, debt-to-income ratio and credit history. It’s just just about your score.
The score is certainly part of the process – it tells the lender if you’ve been a responsible borrower in the past.
The problem, of course, is that you don’t repay the loan with your credit score – you repay the loan with your income and your assets. If your credit score is 800, but you make $600 a month, you’re not going to be in any position to make a $400 monthly loan payment.
If you make $5000 a month, but you have $4300 a month of other monthly obligations, you’re not going to be able to make a $400 monthly loan payment.
To qualify for a student loan without a cosigner, you’re going to need a substantial income, you’re going to need, not just a positive credit history, but a well-established positive credit history, and you’re going to need “spendable” money – money that isn’t already committed to some other debt obligation.
If you have a 680 score, a great income, low debts and a well-established credit history, you may well be approved for a student loan. If you’re like most college students, and you have a part-time job, and a fledgling credit history based on some minor credit card debt and a few gas cards, it’s not highly likely that you’ll be approved without a cosigner.
If you’re looking for money for college, your primary focus should be on the government’s Stafford loan program, which will lend you $5500-$7500, depending on your year in school. If you’re over 24, or you’re married, you support children of your own, or you’re in graduate school, you will be eligible to borrow considerably more.
Good luck to you!

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