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How do student loans affect financial aid?

Erica V asked:

This year (freshman) all of my tuition is getting payed by government financial aid. However, I need money for other things like housing and credit cards. Will a student loan affect next year’s financial aid even if all of the money were spent? What kind of student loan would be better to get, private or federal?
Asked on: 2012-12-04 19:36:50

3 Comments

  1. crimsonedge says:

    If all your tuition is getting paid then you really don’t need a student loan. Taking out a loan to pay for credit cards is not really a good idea because you just going to have to pay it off later with interest.

    If you decide to get one anyways, Federal loans charge a lower interest rate than private loans. I believe it’s 6.54% and is capped at 8%.

  2. Diamond says:

    On the FAFSA form, I didn’t see any related to debt or loan so that I can assume that loan does not affect your Financial Aid but your income or/and parents’ income does affect Financial Aid…also, you grade in college(contract)

  3. TAT says:

    It should not effect it because it is not income it is debt. Be careful. You don’t want to get overextended before you are employable. I recommend a part time job

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