Student Loan Watch: FICO 08 and the Human Capital Score (HCS)

July 1, 2009

hcs
Today, there is a “loan gap” between federal grants and loans and the real cost of an education somewhere to the tune of $113 billion, some say – which means in addition to private student loans, more students are using or abusing credit cards, and families are tapping home equity lines to fill the gap. Never more than now has education been viewed as an investment – or indeed, an asset class in a portfolio.

The HCS is very different than the FICO 08, because a FICO score is based on actual payment history and the quantifiable details of a person’s particular credit history. The HCS is not based on a student’s payment history or length of history, since most students have no real history – but instead is based on academic history, achievements and choices.

What can the HCS tell you? It can help you decide, as an investor, whether a particular student loan is a reasonable risk and therefore, a good investment for you. It can also tell you as a parent if your child’s educational choices are trending toward a good future income or not. It could also determine what quality of student loan your child will be able to get.

Get the full SF Examiner.com article here.

Submit to Digg digg it | Submit to Reddit reddit | Add to delicious delicious | Submit to StumbleUpon StumbleUpon | Share on Facebook Facebook | Share on Twitter Twitter

Entry Filed under: SAVING FOR COLLEGE. .

Leave a Comment

Required

Required, hidden

Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <pre> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Trackback this post  |  Subscribe to the comments via RSS Feed


Add to Technorati Favorites

SUBSCRIBE to UpSide of Money

    Subscribe in NewsGator Online
Sign up for UpSide of Money emails

CATEGORIES

RECENT POSTS

UpSide RECOMMENDS

CONFUSED ABOUT CREDIT?
Visit the CREDIT CARD LEARNING CENTER and the Fine Print Assistant


TRULY FREE CREDIT REPORT
The only site authorized by the FTC
AnnualCreditReport.com

ABOUT UpSide

The UpSide of Money takes dry financial concepts – like saving and investing – and infuses them with a fresh, UpBeat approach

ABOUT Barbara Bryn Klare


Award-winning finance writer and SF Examiner.com Personal Finance columnist, Barbara Bryn is an accredited Credit Counselor and is working toward her CFP® designation. She is also co-owner of CafeFAQ Communications, a financial services communications firm in the SF Bay Area

Kiva - loans that change lives View Barbara Bryn Klare's profile on LinkedIn

Twitter Updates

Directories and Associations
The Online Self Improvement and Self Help Encyclopedia
pfblogs.org logo
BlogBurst.com
Carnival of Personal Finance Money Hackers Network
TheFinanceBlogNetwork.com