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Im going back to school in January and right now I'm in the process of applying for financial aid. The last couple of years have been really tough financially-long story-and that has caused our credit score to go down into the lower 600s.
I can't afford to pay for tuition out of my own pocket.
I need financial aid or a student loan.
I am married and we both work, but we have a child and lots of bills and money is really tight. I guess what I am worried about is that they will deny me financial aid based on our combined income (which is less then 60,000 a year ) and that no one will lend us money because of our credit score.
For Federal loans it should not matter (I assume you filled out your fafsa?). They are backed by the government. But depending on your financial aid office, and how they set it up, the loans may not cover 100% of your tution, so you would be forced to pay the rest out of pocket or get private loans. Private loans are going to depend on your credit. But you might be Ok in the 600's, although you will get a nasty interest rate.
Now, there is a limit on federal loans. used to be around 48k for undergrad. Probably the only other way you wouldn't qualify for a federal loan is if you are currently in default on one.
My confidence level about the accuracy of the following info is about 70-75%, so use at your own risk:
If it's a federal loan, they don't use a conventional credit score. What they do check is 1) if you are in default on any prior school loans (both federal and private) and 2) if you are more than 90 days delinquent on any outstanding balance, be it credit card, utilities, etc. Absent these, you should be OK.
So, would having a bankruptcy prevent one from getting student aid for a graduate degree. Even if all previous students loans were paid back in full and on time.
If you're looking for private loans, I know they do look at credit scores. The one I know of checks for a credit score of 685 or higher. If you don't have that, you can still get a loan if you can get a co-signer who qualifies.
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