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Student loans with poor credit?

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Established Member

Student loans with poor credit?

Well my credit according to bk Was in the low 600s and I got approved for 1.7k on fafsa for student loans. I'm 26 and decided to go back to school. This is my first time applying. I'm surprised I got approved with such a low rate. Everyone I've talked to said they got approved for like 10k. Is this normal? Is it cause my credit score is low?
7 REPLIES 7
Established Member

Re: Student loans with poor credit?

Hello. Stafford (subsidized and unsubsidized) loans are not based on credit. There is a certain amount you are allowed to borrow up to a maximum amount. The amount borrowed at any given time up to a certain amount is based on your year of study and whether or not you are a dependent or independent student. That could be the difference between how much one borrows versus another. Ultimately the school has to certify the amount up to the maximum for that year that you may borrow. Hope this helps
Exp - 847 TU - 838 EQ - 846
Message 2 of 8
Established Member

Re: Student loans with poor credit?

Well I'm independent student I just found it weird I only got approved for less than 2 grand. Everyone else I've talked to got approved for way more
Message 3 of 8
Senior Contributor

Re: Student loans with poor credit?

Your application could have taken into account the  amount of money you made, and what 'they' think you could afford to apply to your education.   Back when I applied (in the dark ages, to be sure) I received maximum assistance, but I was also making very little to no money at the time.

Nov 2019


Garden goal: keep on keepin' on
Usually a faithful practitioner of AZE5or6or7; working on AZE1or2 and grumbling about it.
Message 4 of 8
Valued Contributor

Re: Student loans with poor credit?

CinnyMinny:
If you're independent, your school costs enough that people got way more, and you'll be enrolled full-time, there is likely no reason why you shouldn't have been approved for the maximum available for your year, at least in Unsubsidized loans.
I could as you a million and one questions to find out exactly what went wrong but the truth is financial aid is very complicated and you would be best of going to see a financial aid counselor ASAP. A good one should be able to pinpoint where you made a mistake on the FAFSA or it was processed incorrectly.
Please keep us updated and if you have any more questions we'll try to help.



Message 5 of 8
Established Member

Re: Student loans with poor credit?

The financial aid counselor would to me be the first place to start to find out what happened. I agree with @calyx that how much you are expected to contribute could be a factor. Like stated in the previous post, there are a lot of factors involved. It’s not necessarily that a mistake was made. It could be just what is based on the information you entered in the Fafsa. Ultimately you could get 10,500 in student loans but the school determines how much of that you will get based on many factors and what type. Before you go to the financial aid office, I would recommend you look over the Student Aid Report to see if any of the information you entered was incorrect. Then ask them how they came up with the amount they approved you for. Hope this helps
Exp - 847 TU - 838 EQ - 846
Message 6 of 8
New Contributor

Re: Student loans with poor credit?


@CinnyMinny wrote:
Well I'm independent student I just found it weird I only got approved for less than 2 grand. Everyone else I've talked to got approved for way more

Federal student loans are not based on credit or income. They are based on cost of attendance after other financial aid is considered. So, for example, if your cost of attendance is $10k and you receive $5k in grants and $3k in scholarships, the remaining $2k would be offered in federal loans. Cost of attendance is meant to include tuition, room and board (if applicable), fees, and books. Your financial aid offer letter from the school should break out these costs and you should see that cost of attendance and the total aid on offer (including loans) are equal. If they aren't, you'll want to talk to the financial aid advisor to understand why that is as there are some rare and complex instances where lower loans amounts will be offered. 


Message 7 of 8
Established Member

Re: Student loans with poor credit?

Totally agree. My response was more generalized but great job in the more detailed explanation. 😊
Exp - 847 TU - 838 EQ - 846
Message 8 of 8
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