College is supposed to be the door that opens opportunities for graduates to enter the workforce full-time and start living the life they want to have. Unfortunately, the reality for today’s teenagers is that a college education is a luxury many families cannot afford.
So, what alternatives do parents and students have when it comes to paying for a college education? Student loans are usually available directly from the financial aid office of campuses nationwide, as well as through most financial institutions. Student loans are a reality for many students nowadays, but not everyone knows exactly what it takes to be approved for one.
Just because you’re a student, doesn’t mean you’re automatically approved for a student loan. Financial institutions still need to determine if you’re creditworthy, and they do this by checking your credit report and score to see if you’re financially responsible. This involves reviewing how you’ve used any accounts that have been in your name, such as a student credit card or mobile phone account.
Students who worry they can’t get a loan by themselves can still afford to go to college with the help of their parents, who can co-sign for their student loan — if the parent`s credit score qualifies. That’s because, very often, students have no credit score (particularly if they don’t have a student credit card), so they must rely on their parents to co-sign for their student loans.
Parents should start teaching their kids how to be financially responsibleand establish a credit history at a young age. This way, their kids understand the importance of credit throughout their young adulthood. Whether you’re applying for college right out of high school or going back for a higher degree, understanding the role your credit plays in paying for college is important for any student.
About the Author
Ginger Dean is the owner and founder of GirlsJustWannaHaveFunds.com where she empowers women to take charge of their finances. Featured on several major news outlets, she has also taped a reality series episode featuring her Meetup group of over 500 women in Washington, DC.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.