ITT Bears Ask Smart LSD Posters to Help Choose a Loan!

[OldFart]

Damn are you an economist? 

Me??  Oops.  I must've deleted the line saying I'm not.   My bad, seriously.

I'm just someone who has been trying to tread water for the last eight months while Helicopter Ben bails out his banking buddies with steaming wads of airdropped cash.  Believe me, it ain't easy.

I swing both ways, though (errrrr, financially, I mean);  I was really bullish until all those mortgage lenders started collapsing in 2Q07.  I called the recession for January back in July (bragging).

[jack24]

Do you guys know if a great credit score makes it easy to get a student loan?
Does a bad one make it impossible? or does it just raise the rate?

I hear about the funds "drying up" and I'm just curious if good credit history will bail me out.

[hbb]

Faced with stagflation, it doesn't matter what monetary policy is adopted: it's always going to be half wrong. Lower interest rates in an effort to stimulate growth, and you increase inflation. Raise interest rates in order to combat inflation, and growth is slowed...


Back on topic: Big news for us yesterday. The Ensuring Continued Access to Student Loans Actpassed the House easily.

[dekocards]

Faced with stagflation, it doesn't matter what fiscal policy is adopted: it's always going to be half wrong. Lower interest rates in an effort to stimulate growth, and you increase inflation. Raise interest rates in order to combat inflation, and growth is slowed...


Back on topic: Big news for us yesterday. The Ensuring Continued Access to Student Loans Actpassed the House easily.

No.  See early 1980's Fed. Policy; Volcker.  Inflation is never good policy and doesn't help long-run growth.  It can get you votes though.

[Eugene Young]

Do you guys know if a great credit score makes it easy to get a student loan?
Does a bad one make it impossible? or does it just raise the rate?

I hear about the funds "drying up" and I'm just curious if good credit history will bail me out.

Depends on what type of loan - federal v private.

For the federal Stafford loans, they don't look at your credit-worthiness. It is strictly a need-based loan and the interest rate is fixed and the same for everyone.

For federal Grad-plus they do take your credit score into consideration, and if you have bad credit you may not get approved.If you have good credit, you'll get the best rate.

For private loans, your credit-worthiness determines your interest rate.

If you have bad credit, get a credit-worthy co-signer and you shouldn't have much of a problem getting a loan with a decent interest rate.

ETA: if you have ever defaulted on a student loan, that will make it near impossible to get either the federal OR the private loans.

as long as the loan is no longer in default, you can still get a federal loan.

[jack24]

So the consensus is that if you have a credit score above 720 you shouldn't have any problem getting the loans you need?

[BearlyLegal]

So the consensus is that if you have a credit score above 720 you shouldn't have any problem getting the loans you need?

Above 615 you should be fine.

BUT... if you have any 90+ day delinquencies, defaulted student loans, bankruptcies, etc. they may not give you a loan even if you meet the score cutoff.

[hbb]

No.  See early 1980's Fed. Policy; Volcker.  Inflation is never good policy and doesn't help long-run growth.  It can get you votes though.

Darn it - you quoted me before I changed fiscal to monetary. I shouldn't post without coffee...

 

[BearlyLegal]

So the consensus is that if you have a credit score above 720 you shouldn't have any problem getting the loans you need?

Above 615 you should be fine.

BUT... if you have any 90+ day delinquencies, defaulted student loans, bankruptcies, etc. they may not give you a loan even if you meet the score cutoff.

but with a credit score of 615 your interest rate is going to be way high, so, I'd say anyone with score under 700 definitely would want a co-signer to minimize their APR.

APR on GradPLUS is the same for everyone. Either you qualify or you don't.

[JeNeSaisLaw]

I think he's talking about private loans there.