How do student loans affect financial aid?
This year (freshman) all of my tuition is getting payed by government financial aid. However, I need money for other things like housing and credit cards. Will a student loan affect next year’s financial aid even if all of the money were spent? What kind of student loan would be better to get, private or federal?
November 25th, 2009 at 2:08 pm
If all your tuition is getting paid then you really don’t need a student loan. Taking out a loan to pay for credit cards is not really a good idea because you just going to have to pay it off later with interest.
If you decide to get one anyways, Federal loans charge a lower interest rate than private loans. I believe it’s 6.54% and is capped at 8%.
November 25th, 2009 at 2:35 pm
On the FAFSA form, I didn’t see any related to debt or loan so that I can assume that loan does not affect your Financial Aid but your income or/and parents’ income does affect Financial Aid…also, you grade in college(contract)
November 25th, 2009 at 2:57 pm
It should not effect it because it is not income it is debt. Be careful. You don’t want to get overextended before you are employable. I recommend a part time job