Student’s loans and parents’ financial troubles

Quite a lot of Americans can admit that they have some bigger or smaller trouble with their finances.

As we know, bad financial situation can influence creditworthiness and our eligibility for loans. You won’t get a loan with 560 credit score. That’s just bad.

Simultaneously, student loans are very popular and there arises a question: can parents’ financial trouble affect  their child’s eligibility for a student loan?

Federal student loans have the lowest interest rates and the most flexible terms of repayment. That is why, this loan option is probably the best for young people. The Perkins loan and the Stafford loan are two of the federal student loan types.

The former has fixed interest rates of 5.0% and the latter 6.8%.The eligibility for such loans is based on financial needs (only the unsubsidized Stafford loan is not). The very good news is that parents’ credit history has no influence on their child’s eligibility for these loans.