Student loans are the one corner of consumer finance where your credit score doesn’t always dictate your ability to borrow, especially if you take out federal student loans. However, private student loan lenders typically require you to have a credit score of at least 670. The higher your number, the lower your interest rate.
What credit score do you need for federal student loans?
Federal student loans do not have any credit score requirements. That makes sense, given that many people entering college have yet to establish credit histories.
The only type of federal loan that will check your credit history is federal PLUS loans – with these, the government will check for an adverse credit history, although there are still no minimum credit score requirements.
The plus side of this approach to federal loans is that it allows most students to receive funding if they need it. Federal loans set one interest rate for all borrowers, so having a poor credit score will not affect your loan rate or terms.