Is there a credit check associated with direct govt loans for tuition? I was under the impression that direct loans were given out regardless of credit. Please let me know if any of you have experience with this issue. I have a spotty credit history, and don't want this to affect my loan elgibility when I return to school this semester.
For goverment guaranteed student loans, no. But you have to check the type of student loan you are applying for.... standard personal studentl loans will draw a credit check. For more info try www.ed.gov and http://www.ed.gov/offices/OSFAP/Students/
My wife got a Government Direct Studentloan just a few months after her BK. I do not think that a previous bad credit history will have any effect on your credit rating. This kind of loan is quite different from normal credit because you can not get rid of it in a BK and the government will come after you if you do not pay it back. Pay or go to jail!
Direct Loans are done exclusively through the school financial aid office. You fill out and send in the FAFSA to the government, then you either get approved or denied for grants depending on financial need and tax information. After the school has your student aid report, which is derived from your FAFSA, you apply for direct student loans, which you will get approved for, which the award amount is totally based on the number of credit hours you have accumulatedprior to that year. Each grade level: freshman, sophomore, etc gets a specific amount awarded each school year. You must be attending at least 1/2 time to get the loan. These can be deferred until 6 months after you graduate or after 6 continuous months of attendance less that half time.
