It is a well known fact that in the US, student loans are used by many to access higher education. This aid is used by majority of American students to cover their costs of attending college. Recent research shows that there’s been an increase in the number of people opting for student loans as the college fee and relative costs have increased.
The main types of student loans are federal loans and private loans. Federal loans are subsidized and usually the government pays the interest while the student is studying.
Benefits of federal loan:
Loans are offered irrespective of the credit history. As most students have no credit history, this is a boon.
Approval is automatic if the student meets the program requirements.
Students are not required to make payments while enrolled
Students with some kind of disability have the possibility of their loans getting completely discharged.
Downside of federal loan:
Federal loans are subsidized at the undergraduate level only.
Student loans cannot be discharged through bankruptcy.
If students drop below the half time status, no more grace period is provided and repayment must begin immediately.
Amounts of both subsidized and unsubsidized loans are limited.
Loan discharges are considered taxable by the IRS.
Private student loans have higher limits and payments begin only after graduation. As expected, the interest rates are higher than the federal loan, rates of which are set by the US Congress. Many view private student loans as the last resort option, owing to their higher interest rates, multiple fees and lack of borrower protection.
The current status of outstanding student loans is a staggering number- amounting to trillions of dollars. When a student or their parent borrow money for college, they might not be considering all aspects of paying back the same. Outstanding student loan colors ones ability to qualify for other loans at a later point in their lives. Few important aspects to be kept as guidelines while applying for student loan are “ anticipated annual income upon graduation, original loan amount, annual interest rate and initial payment period. Using these as a yardstick while applying, would to a large extent, diminish future difficulties.
Both the public and the private sector have been supplying options for Americans to rid of their student loan problem. Federal student loans provide the possibility to reduce the monthly payment during times of economic crisis. Private sector banks and lending institutions also offer many refinancing options for student loans.
It is recommended that students explore their federal loan options first and only upon reaching the borrowing limit, consider private loan options.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.