Credit agencies rate your creditworthiness on a scale of 300-850 points. Typically, an individual with a score of 620 would not have a problem getting a student loan. In the past year that number has risen to 650. While a 30-point gap may not seem that big, The Wall Street Journal has reported that 10 percent of all private student loan borrowers fall into that category.
Though bad credit is not the kiss of death when it comes to student loans, it is getting harder to obtain a loan with lower credit scores. This is why it is imperative that you follow these trends closely. If you know what the score is that you would most likely need for a loan, you can monitor your own credit report and do what is needed to hit that number.
Your idea of a good score and the requirement for a particular loan you want may be different. Following this type of information may not seem very interesting until your children are thinking about college. So start thinking about it early and know where you need to be when the time comes to find that college funding.
|Jennifer Mathes, Ph.D.|