Tag Archives: student loans
Financial Aid for Students (Page 1 of 2)
While navigating future dreams of career and success, students are often left bewildered and surprised by the costs of post-secondary education. While we all recognize that college and university degrees can offer opportunities we would otherwise miss, it can be daunting to imagine ourselves spending so much money on them.
Most students find that loans are a necessary reality when pursuing post-secondary attention. Although savings and scholarships will certainly contribute, loans can be a way to invest in the future even when you havent yet found ways to put money away for it. Student loans are competitive and you can find the best choice for you by considering several different options.
There are a few common loan types that you will want to investigate, including federal loans, personal loans, and consolidation loans. And as with any loan, you will need to consider the interest rate as well as loan limits and fees, and especially terms. By understanding terms you will know when it is time to start repaying, and avoid late or missed payments.
Typically interest rates are lower on federal student loans then on personal loans, which are awarded by banks and other lending institutions. Typically personal loans start incurring interest immediately and may require you to make loan repayments immediately, whereas federal loans often allow a term that includes at least the length of your post-secondary program, and perhaps several months after. With the longer term provided by federal loans, you can get some extra time to find a job after school.
Personal loans may also require a cosigner, such as your parent, and may not have the options for deferment and forgiveness that federal loans do. While private loans can be a life-saver when federal loans and other methods are not possible, it is in your best interest to try for federal loans first.
Consolidation loans are typically used when you want to refinance your student loans, either because the minimum payments are too high, or because you can save on interest rates. Keep in mind that consolidating to extend your repayment will create more costs in the end as the interest will continue to accrue. Any gain in interest may not be worthwhile, and for federal loans in particular, you are likely already getting the best rate. Finally, consolidating your federal loans can mean you lose options relating to deferments and forgiveness, so be sure if you go that route you can make your new payments on time, every time.
Dont Make This Mistake
Dont make the mistake of simply missing payments back on your student loans when the time comes. This is called a “default”, and has some severe penalties. If it occurs, your loans may be turned over to a collection agency which can incur court costs and attorney fees you may end up responsible for on top of your loans and interest. Your wages could be garnished, your tax refunds and other government benefits could be intercepted, you wont be eligible for other federal aid, and perhaps most importantly, your credit record will be damaged badly. A bad credit report can prevent you not only from obtaining auto loans, mortgages, and credit cards in the future, it could also result in job applications and rental applications being denied.
Student Loans For Bad Credit Scores
Any private loan company or alternative student loan is going to require a credit check before they approve a student loan or set an interest rate. Since most students have no credit, which can be just as difficult to deal with as bad credit, finding student loans for bad credit scores through private lenders can be difficult. To avoid this problem, most student financial advisors and counselors recommend avoiding applying for private student loans for bad credit ratings, instead try finding an alternative loan that doesn’t pull your credit report.
Some of the best funding options for people looking for student loans for bad credit scores are scholarships and grants. These programs may be set up by schools, private businesses, organizations, churches or non-profit organizations and can be offered locally, by state or even nationally and internationally. Go online and do some searching, you may have to use a variety of search terms such as:
School grant applications
Private grants
Scholarship programs
Bursaries
Study grants
Another options to student loans for bad credit risk individuals is to consider looking into a field of study where there is a recognized shortage of new professionals. A good example of this is nursing or education where there is a chronic shortage of new graduates to fill already vacant employment spots. Often the professional organizations or the employment sources such as school districts and hospitals will subsidize or pay students to complete their education in return for a few guaranteed years of work. Not only does this assure you that your tuition will be paid but it also provides you the assurance of work immediately upon course completion.
Federal government student loans for bad credit scores have long been the most preferred option. The federal programs do not pull credit reports in determining eligibility, amounts or rates of loans. The problem is that these loans are often not enough to fully pay for education, so some sort of supplemental funding source is required. Federal student loans for bad credit are still an important consideration and should be the first application that a student or their parents complete after they have obtained any and all applicable scholarships and grants.
The worst type of student loans for bad credit are the very high interest, high penalty and fee type of loans that many lenders advertise as a “no credit check” type loan. These loans are often sold immediately, resulting in a complete change in terms for many students, often becoming virtually impossible to pay back due to the high interest rates and fees. Always check any loans very carefully and only work with well established student loan companies and services.
For more information, visit Student Loan Solution.