Student loan options for college students that cost way less than personal loans.
Minimizing interest through alternative student loan options
On average, a freshman in the US can avail of around $37,000 worth of student loans to finance his college education. For certain colleges, this amount may not be enough to cover the expenses up until graduation. This is why most students resort to other student loan options, without any idea of what they are in for in the future.
On recent data, around forty percent of the college population is patronizing alternative student loan options, that are considered unreasonable and financially draining in the future.
The Student Borrower Protection Center in Washington labeled these institutions as “shadow lenders.” They offer high-interest loans with less transparency and accountability from finance overseers.
These lending institutions offer personal loans in forms of equity loans for housing financing, credit card loan, and other non-education related loans. Basically, these student loan options offer higher interest rates from the usual
Tips on finding the right student loan for you
Review school credentials. On a tight budget means you have to exhaust all means possible to get a degree without sacrificing your future finances. In picking a college to attend, a student must inquire which schools are under federal aid coverage. Always consider a school that covers federal aid.
Federal over private loans. The federal school aid is specifically made to fund students who are incapable of going into college due to financial constraints. A student must fill-up the Free Application for Federal Student Aid (FAFSA) in order to be assessed to qualify.
If federal aid won’t cover the entirety of the expenses, be to scrutinize even to the slightest details of other alternative student loans available. Avail student assistance that it is supervised by the college you are in.
Federal loans offer less interest than private student loans. Stay away from personal loans in college. Personal loans offer higher interest that will burden you financially in the future.