Jul
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Sideshow Bob asked:
If I take out a student loan, will the creditor perform a credit check?
Sphere: Related ContentIf I take out a student loan, will the creditor perform a credit check?
I heard that the government give loans that are paid back automatically from your salary when you earn over a certain amount. True? Do they need a credit check then?
Tags: Credit Check, Creditor, Government Loans, Salary, Student Loan, Student Loans
July 17th, 2008 at 11:59 pm
Very likely……just remember those student loans will have to be paid back….dont try and hide from them either…..once you start working the government will attach a lein to your paycheck or tax refund and take their money back……they check social security numbers and find you……also the IRS will come after you….you cannot hide from delinquent student loans……..I learned….
July 20th, 2008 at 6:25 pm
Yes
because if you are in default of other student loans then they surely wont approve you
….
July 21st, 2008 at 6:35 am
Credit checks aren’t used unless they are private loans.
Loans are based on need, not credit reports, when a FAFSA form is filled out to determine what your benefits are.
July 24th, 2008 at 3:40 pm
Only for Private Loans… fill out your FAFSA asap then get help from your financial aid officer at your school. That’s a relationship you want to establish and keep well as soon as possible.
July 26th, 2008 at 11:31 pm
student loans can not be bankrupted, they must be paid back, because of this most lenders do not require a credit check. they are not automatically deducted from your paycheck,
July 29th, 2008 at 12:46 am
Stafford Loans are NOT based on credit-worthiness, but on financial need. No credit check is done to determine your student loan approval. You just need to fill out a FAFSA, and your approval will be based solely on need.
Private loans through banks or other sources will be based upon credit-worthiness.
July 31st, 2008 at 1:42 pm
I don’t think student loans are subject to credit check, because undergraduates in particular may not have built up a credit score. Student loans as offered by the student loans company can be means tested though - whether this will benefit you depends on your parents income / estate.
Yes repayments are taken from your salary, starting the April after completing / dropping out of your course. However this will only happen if you earn £15,000 (£1250 in a month) or more per year. There is a sliding scale of how much gets deducted per month, starting at 9%. Repayments are organised / deducted by your employer and sent to HMRC. At the end of the Tax year your repayments get credited to your account.
Interest rates, while supposedly following the rate of inflation, are based upon the Retail Price Index (RPI) for March. In March 2007 the RPI was 4.8% (unfortunately the peak rate for 2007). This interest rate is charged on the loan between 1st September 2007 to 31st August 2008. The RPI for January 2008 was 4.1%.
Just some cold hard facts about the student loan (as currently offered by the student loans company.
August 3rd, 2008 at 5:56 am
There are two sources for student loans — the federal government and private lenders. In order to obtain most federal student loans, you will first need to file the Free Application for Federal Student Aid (FAFSA). In mostyou can combine all of your eligible federal student loans into one loan with a Federal Consolidation Loan. Consolidating also locks the interest rate you pay on your loan.
August 5th, 2008 at 6:20 am
no its not required if you have not any default in past. But some private loan company take a credit check but they can’t use it. so search a best loan company and take a cheap student loan or education loan.
some are here:
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