How To Raise Credit Score & How To Get Out Of Debt

Can I still receive Financial Aid from school and student loans if I get a judgement on my credit?

I get financial aid and student loans every year for my college education. I recently received a letter saying that if i dont settle my credit card debt, they will put a judgement against me. And they said it will affect my financial aid and student loans..i wanna know if thats true. Will it really effect financial aid, student loans and grants? the debt is about 1500.

The short answer is yes and no.

Your financial aid from the federal and state government is based on your financial situation and how much income and assets you have. The lower your income is, the more financial aid you will get. The credit card company can’t touch this money because it’s paid directly to your school (government grants, stafford loans, and perkins loans).

However, let’s say you need additional money for school. So, you apply for school loans. It’s unlikely you’d get approved.

In dealing with the credit card company, I suggest giving them a call to try and work something out. You can explain that you simply cannot pay it right now and you can ask them to stop charging you interest in exchange for making monthly regular payments (of whatever you can afford, even $5).