Does Credit Rating Affect My Federal Perkins Loan Application?

A Federal Perkins Loan is money that the United States' Department of Education temporarily gives to graduate and undergraduate students. Because, for many students, applying for monetary assistance for school is their first encounter with financials, Federal Perkins Loans are not credit based. This means that a student's credit rating, whether it is good, bad, or non-existent, does not affect his/her application for a Federal Perkins Loan. 

In order to apply for a Federal Perkins Loan, a student must fill out a Free Application for Federal Student Aid (FAFSA). The FAFSA does not ask questions pertaining to credit history, it instead focuses on asking questions which help to determine the level of need that a student has. Whether or not a student receives a Federal Perkins Loan is determined by analyzing his/her family's income, the amount of money that his/her family can contribute to his/her education, the year of school that the student is in, and other non-credit based questions.

The only monetary related information that can affect a student's application for a Federal Perkins Loan is if the student is in debt to the Federal Government. 

Need a Student Loan? Click here!