New Student Loans

[Anonymous]

I am not new to myfico, but I am definitely new to the Student Loan section. I am returning to school and will be getting student loans to pay for some my courses.  Before I begin I would like some basic advise from those that know or have been through it before. Bear in mind,  I have no idea about student loans.

1. I hear that there are certain loans that you don't pay interest till u graduate. what is the catch with something like that?

2. Do student loans look strictly at fico scores for approvals or rates?

3.  what effect does getting loans have on your credit?

edited for typo's 

Message Edited by FicoHound007 on 05-14-2009 07:05 PM

[LynnInMN]

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@Anonymous wrote:

I am not new to myfico, but I am definitely new to the Student Loan section. I am returning to school and will be getting student loans to pay for some my courses.  Before I begin I would like some basic advise from those that know or have been through it before. Bear in mind,  I have no idea about student loans.

1. I hear that there are certain loans that you don't pay interest till u graduate. what is the catch with something like that?

2. Do student loans look strictly at fico scores for approvals or rates?

3.  what effect does getting loans have on your credit?

edited for typo's 

Message Edited by FicoHound007 on 05-14-2009 07:05 PM

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Federal aid is not credit based and what you are awarded is based on your income and your FAFSA application.

Depending on your income, you will be awarded subsidised or unsubsidized student loans.  Sudsidised has the interest paid while you are in school.  

Read your schools financial aid webpage...it will explain it. 

[Anonymous]

Words of advice:

Do research on student loans and do not depend soley on your financial aid office for info.

Take out the max unsubsidized  Stafford you're eligible for by your FAFSA.

If you qualify for Perkins take it..it's a fixed 5% 

Then take out Unsibsidized Staffords according to FAFSA

If you still need more take Private loans, but do alot of research and do not go by who your FA office guides you towards on private lenders. Many instituions have been caught guiding students to not the lowest private lenders but who they got a kick back or special benefits from(huge lawsuit in NY by AG Cuomo on this a few years ago.)