Pros and Cons Of Students Borrowing Their Way Through School

Pros and Cons Of Students Borrowing Their Way Through School

Can You Obtain a Personal Loan While in College

You can get a personal student loan while studying in college to cover extra expenses as long as you are above 18 years old. Prior to applying for a private student loan, you should first try to apply for a grant or scholarship via the federal or state loan program. You can utilize a calculator to calculate all your college costs and then deduct them form your scholarship. The total that is left is the amount you should borrow from a private personal loan lender.

You can obtain an unsecured signature loan from the local bank and credit union. Examples of big banks that offers signature personal loans include Wells Fargo and Citibank. Big banks may be choosy when coming to approve applicants with little credit history so it is always best to go to your community bank or credit union. Applying for the personal loans online is the best option as it can get approved fast and release the cash in the next business day.

Most banks will offer unsecured signature loans which is a type of installment loan that requires you to pay a fixed monthly payment. Because it is an unsecured loan, you don’t have to put in any collateral. If you want to get a loan with low rate, you must provide proof of a solid credit history. Student loans often have high interest rates because most students don’t have a decent credit rating. Therefore, it is advised that you use a cosigner to get approved for the loan. If you use a cosigner, you must make sure that he/she have a good credit standing and a stable income source. You can get your parents, uncles or friends who have a stable job to become your cosigner. When getting a cosigner, make sure you inform them about

Personal loans can give you an excess cash of $1,000 – $35,000 which you can use to cover various types of expenses including tuition fees, dorm, and computers. Paying back the loan on time enables you to build up your credit score. When your credit score is build up, it will be easier to get approved for low interest rate when you apply for a loan. It also help you to develop discipline in your finance management when you are committed to pay off your loan.

You should only get a personal loan as a last resort if you don’t have other financial option. Therefore, when shopping around for personal loans, you should always be willing to spend time in doing research to compare the interest, fees, and other lending terms. You must be confident that you can pay back prior to obtaining the student loan. Defaulting and not paying back can be serious consequences on your credit report for example bankruptcy that can remain on the report for up to 10 years.

Leave a Comment

Your email address will not be published. Required fields are marked *