It seems like these days students are having to take out more and more in student loans. College is getting more expensive and the government is certainly not giving out more and more money.
Students have to rely on student loans to get through college and earn a degree. It is very hard to get grants and scholarships, as they are reserved for people with very little income.
There are great federal student loan programs out there like the Perkins loan and the Stafford loan. The Stafford loan is is the most popular option for students these days.
The big question is, are student loans based on your credit?
Most students come into college with zero credit and it is pretty stressful thinking you have to have credit to get a student loan.
The answer is no; federal student loans are not credit based. Your school will not even check your credit and unless you have another student loan in default, you will be approved.
WAIT....
Just because the loan is not based on credit does not mean that it will not affect your credit report. Your federal student loan WILL be reported to the credit agencies. This is good though, as paying it back will help you build great credit for your future.
If you decide not to pay back your student loan, your credit can be ruined for a long time. Additionally, any tax refunds or stimulus checks due to you will be intercepted to pay off the debt, so make your payments.
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