If my parents have bad credit will it affect me being able to get a student loan for college?
Jun 24, 2009 in
Credit
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I’m a senior in high school and I’m worried about getting a student loan, and I’m not even sure how it all works. Am I required to have a cosigner? And if so, what happens if my parents have bad credit? What determines bad credit?
I’m a senior in high school and I’m worried about getting a student loan, and I’m not even sure how it all works. Am I required to have a cosigner? And if so, what happens if my parents have bad credit? What determines bad credit?
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3 comments
hrothgarthegeat on June 27, 2009 at 11:54 am
If you live in California, there are a lot of good programs to get loans. The government in all of the US has a lot of loan programs for students, so you will probably be ok. Almost all of my loans were in my name only. The only exception was a PLUS loan which was actually in my parents name. My parents have the WORST credit in the world but it didn’t seem like that was a problem.
You will be far better off going to college vs. not going, regardless of loans, so make up your mind to go, regardless of financial problems. With that in mind, do everything you can to take out as few loans as you can, or you will be paying them off forever.
Brother Otter on June 29, 2009 at 2:56 pm
First things first:
Go to the FAFSA site and get the paperwork started. You have to do that anyway and the sooner you start the better.
Then, if you haven’t been applying to universities, again you’d better start now. What school you go to has a big effect on what you get in the way of financial aid.
For Stafford loans, your parents’ situation won’t affect YOUR ability to get money in your name but it will affect THEIR ability to get the Plus or Parent loan. Stafford loans do not require a cosigner; only private loans require a cosigner.
Bad credit means they’ve not paid their bills on time. If that is the case, then your parents would have to apply for their portion of financial aid and be turned down. At that point, you are eligible to apply in your own name.
Sounds to me like you’re fretting; afraid of something. My suggestion is to get started on the application process soon and see what happens. If you do all the paperwork properly you will get straight answers about what you’re eligible for and what you’re not.
Be sure to work closely with the Financial Aid office at whatever university you choose. They can tell you about state grants and scholarships (that you don’t have to pay back), and other options like Work Study.
Bob B on June 30, 2009 at 4:00 am
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