Loan Options For Students In Need

The older generation doesn't seem to accurately remember the struggles of paying your way through college. This is made only worse by the fact that college expenses have steadily increased over the years.

It's substantially more expensive to attend school than it was a decade ago. Not only are tuition costs higher, but so are the costs of living, transportation, and the materials needed (like text books and laptops). 

However, there have always been financial aid options and there are even more options today than

there used to be. This is great for the average student who is behind on their funding because it means they can choose a loan and payment method that is right for them, rather than being forced to stick with a certain standard.

Below are the two most common and effective methods for funding your way through a higher education.

What is a Student Loan?

Student loans have been around for a while. The idea is still the same, but the loan and repayment process has changed quite a bit. It's actually easier today to get approved. Some lenders actually have decent interest rates and most are willing to work with you on the repayment. Student loans are long-term loans and aren't repaid until after you've actually graduated from college.

While student loans are great, they do have some flaws. For example, you can't get money when you need it on the spot. You are usually paid in instalments during each semester, though some schools and lenders work differently. None of them let you just take extra money whenever you're in need. 

That's unfortunate because as a student there will probably be times when you really need some extra cash, but don't have any on hand. If you're working a steady job alongside your schoolwork, then you have a second option when it comes to quick cash.

For more information please visit the dedicated area of the UK government website - https://www.gov.uk/student-finance/overview

Payday Loans For Students

The number of students turning to payday loans for quick cash has increased over the past 12 months. About 2 percent of students took out a payday loan last year and that number will likely go up over time.  

A payday loan is a short-term cash advance taken out against an incoming paycheck. Not all students are eligible because you must be employed to be approved for a payday loan. However, aside from employment, there are very few requirements. This makes it extremely easy for just about anyone to get a loan when needed.

Important Information

Loans are repaid within 1 – 2 weeks. These are polar opposites of the standard student loan, which may not be repaid for another 6 years at least (depending on the time the student remains in college). 

However, payday loans aren't usually used to pay for tuition because they don't offer such large amounts.

Check out the following video for more information about student loans and how they should be used

For in-depth analysis of small loan options, please return to our homepage.

What To Know When Considering An Unsecured Loan

For many people with good credit, the idea of an unsecured loan can be a very tempting idea. It is possible to get approved for a very high amount with very little difficulty, and there is no risk of losing one's home or car should they fall behind on payments. 

However, this doesn't mean that there aren't risks involved with this and any other loan as well. Knowing what you are getting into can help you make smarter choices about the loans that you take out and the debt that you are under.

Specifically Designed Loan

These loans are specifically meant for people with high levels of credit, people who have steady jobs,

and people who are going to be able to pay them back well before they are due. If you can just barely afford the payment, you might want to reconsider. Paying the standard payment you may actually end up paying quite a bit more and regretting it after a couple of years. Thus, it is always better to take a loan within your actual financial abilities.

These loans will often have very high rates of interest. This is the trade-off for not securing them to

some piece of property. However, the interest can sometimes be waved for the first few months, will be kept down if you pay a little extra ahead of time, or can be easily managed if you plan ahead. However, these loans should generally be prioritized above any others when you are looking through your debts and making a payment schedule for each month.

An Affordable Option?

Many times, these rates are still lower than using a credit card. In fact, many people will take out one of these loans to pay off their highest rate cards. However, the interest that is paid on these loans cannot be deducted from taxes like a mortgage or some other types of loans allow. 

Sometimes, this may be a better option than taking out a loan on the equity in your home. They also often have more flexible terms that reward you for having a higher credit limit. This means it can be used as a revolving line of credit that rewards you instead of punishing you over time.

In Conclusion

Overall, the unsecured personal loan is a lot of responsibility for those who have proven they can handle their own finances. This loan rewards those with good credit practices and ensures that they have near instant access to lines of credit.

For in-depth analysis of small loan options, please return to our homepage.

Top 4 Benefits Of Getting A Short Term Loan

Everyone experiences financial problems from time to time. The problem becomes even more complicated if for some reason you cannot access loans from the mainstream financial institutions.

However, there is no need to feel discouraged about having poor credit scores because it is still possible to get a short term loan.

Here are benefits of applying for a short term loan

Benefit No. 1 - Short Processing Time

This means that you can apply for the loan and get it within the same day. This is much better than

the formal loans because when you apply for a bank loan, you have to allow them to look into your credit history, crosscheck the tons of paperwork they require from you and decide whether they want to grant you money or not. With short term loans, you walk in the office without money and walk out with it.

Benefit No. 2 - Limited Paperwork

With the mainstream loans, you have to fill in forms, get your guarantors to sign them and at times, write recommendations for you and attach the documents that confirm ownership of the asset that you are pinning as the security for the loan. If you need the money for an emergency, the paperwork will take so much time that by the time you are through, the worst will have happened.  With the limited paperwork that comes from these short term loan lenders, you will not waste a lot of time filling in paperwork.

Benefit No. 3 - You Do Not Have To Have Good Credit Scores To Get Credit

In case you have ended up with unfavourable credit scores, you can turn to this option for some badly needed credit. In addition to that, the lenders are not strict about getting guarantors and attaching assets to secure the loan. At most, they will ask you to give your car, a piece of jewellery or other simple asset to secure the loan and ensure that you repay the money.

Check out the following video for an explanation relating to why bank loans are important - 

If you would like to find out more about why traditional bank loan options may be out of reach, please visit one of my other resources.

Benefit No. 4 - Low Interest Rates

Since these loans have to be paid within a short period, you do not end up paying high-interest rates.

This is a viable option for the person who is in dire need of some money but cannot access any from the mainstream banks.

Those are some of the benefits of applying for short-term loans. Contact your financial advisor for more about loan to be able to know what suits you best.

For in-depth analysis of small loan options, please return to our homepage.