APPLYING FOR STUDENT LOANS..

[Anonymous]

hi guys,

i want to apply for student loans but i dont know how much it would hurt my score??

i plan to apply as many as 5-6 different companies to get best rate..because someone told me if you apply it in about 10 days it would hurt your score just once no matter how many different companies you apply?

or is it wise to research and apply to as few as possible?

[erika]

The answer depends on what type of student loans you are applying for.

Stafford loans (government loans) do not do a credit check at all and the rate and amounts are regulated by the government.  If you are in a qualified program, this is the route to go.

Private loans will each count as an individual inquiry (this doesnt work like auto or mortgage inquiries) and you will need good scores to qualify on your own or a credit-worthy co-signer.  Also the rates on the private loans are higher.  These are becoming more difficult to get as several lenders have recently pulled out of the student loan market.

The best thing to do is to contact the financial aid office where you are attending to discuss all your options including getting a recommendation of what lenders they suggest if you have to go the private loan route.  This will help you in the long run with paperwork both while in school and once you finish. 

[Anonymous]

hi erika, sorry for my incomplete question...stafford cannot complete my needs and hence i have to go through private route..my school has given me 3-4 preferred lenders..thats why i was wondering if i should choose one or apply to all to get best rates....but i guess as you told if affects my credit score for every application. i will apply to very few lenders... thanks for your help.. also my credit score is around 670 and my cosigner is >750 do you have any idea as far a s rate goes.. thanks again

(Edited to remove personal information) --peas

Message Edited by WhirledPeasPlease on 06-05-2008 11:28 AM

[erika]

Ok.. that makes sense.  I am glad to see you already talked to the school

I cant tell you what the current scores are but with your co-signer's credit score you should have no problem.  Most national lenders have comparable rates on their student loans, so I would only apply to one (why take extra hits on your credit report ).

Good luck!!