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Federal Student Loan Forgiveness

As Congress continues to debate the reauthorization of the Higher Education Act (HEA), the national student debt and loan forgiveness programs continue to present other challenges. Since unsecured personal loans don't require collateral, lenders usually turn to your credit reports and credit scores to help determine if you're a good candidate for a loan. In general, people with higher credit scores will be eligible for better loan terms.

The amount people borrow and how long they choose to pay it back usually depends on what they need it for. Small short-term loans are commonly used to cover unexpected costs or temporary drops in income, for example. Larger long-term loans can come in handy for expensive purchases or significant life events.