Will I be able to take out a student loan if I still owe on my car loan?
I’m currently attending a community college full time, and working full time. I’m making decent money for a student, roughly $30,000 annually. I’ve taken out a 5 year loan on a car, and by the time I’ll be transferring to a univeristy, I’ll owe between $10,000 and $15,000 (depending on whether or not I take on a double major!). Before I took out my car loan, my credit score was 731 – now it’s 650, most likely due to the large loan amount against my name. Will I be able to get a student loan to finish my education at a university? Any advice or article referrals are welcome. I’d also greatly appreciate it if someone knowledgable regarding this could tell me the different factors taken into consideration when processing student loan applications. Thank you!
For federal loans, your credit score doesn’t matter at all. So apply for those first with the FAFSA (and they have the lowest interest rates).
If you need private loans after that (though at a CC you should be OK), they will check your credit rating.
