Columbia University Student Financial Services

Most students today must borrow money to help finance their undergraduate and graduate studies. Some loan programs are federally sponsored while others are provided by banks and other private lenders. Whatever the source of funds, your student loans must always be repaid. You should bear in mind that the student loan(s) you are now applying for will become part of your credit history and will also affect your credit score. Although it is often a concern for student borrowers, having multiple education loans and/or a significant amount of education debt does not necessarily mean you will have a poor credit score. People with small or large amounts of education debt can score well, provided they have managed their credit properly. Education loans are a good way for you to establish a positive credit history by making timely payments. Conversely, failure to meet repayment obligations will have a negative impact on your credit history and financial future.

Credit reviews are required for virtually all consumer lending, so maintaining a good credit history on education loans is important since it may affect your ability to obtain a mortgage, a car loan, or a credit card.

Education Loans from Private Sources

To be eligible for education loans from private sources, applicants must demonstrate that they have managed debt responsibly. Unlike most federally sponsored loans that have either no credit requirements or minimal credit criteria, private lenders carefully review credit history to determine eligibility for their loan programs.