Are Student Loans Based On Parents Credit Score?

In most cases, student loans are not directly based on your parents’ credit score. There are two main types of student loans to consider:

• Government-backed student loans: These loans, offered through programs like Pag-IBIG and GSIS, typically have minimal credit score requirements or none at all. They may focus on factors like academic merit or financial need.

• Private student loans: While private lenders might consider various factors during the application process, a parent’s credit score usually doesn’t play a primary role. However, there are some exceptions:

  • Parent PLUS Loan: This is a specific type of US federal loan designed for parents of undergraduate students. Here, the parent’s credit score is a crucial factor in determining eligibility.

  • Co-signing a Private Loan: If you, as a student, need a co-signer for a private loan, the co-signer’s credit score will be heavily considered. This co-signer can be a parent or any other qualified adult.

Here’s a quick breakdown:

• Government Loans (Philippines): No or minimal impact from parent’s credit score.
• Private Loans (Philippines): Not directly based on parent’s score, but co-signing could involve their credit check.
• Parent PLUS Loan (US): Parent’s credit score is crucial for eligibility.