As a student, you have many things on your mind. It is the first time when you are not under the protective wing of your parents, when you need to take care of your own money, and when you are allowed to take decisions by yourself. However, is this a good perspective for a student? The majority of them end up without money, so they will think about a student’s loan. Is this the best option that you have, or is it a better idea to borrow from your parents? Considering the difficulties for students to get loans, we can say that the answer is a combination of both.
Guaranteed student loans
Those are maybe the simplest types of loans, simply because they are the most accessible. Students are not recorded in the Credit Bureaus, so the banks are not eager to approve loans for them, simply because they can’t assess their payment behavior. When a parent comes as a warrant for the student, things are changed. A parent has a Credit record, and it is also a solid warranty as long as he or she has a job, and this is why the loan is approved fast. Moreover, this allows the student to build a credit score, which is important for the future. Which allows them to get a student loan in the near future.
No credit check student loans
Fast, effective and simple, but is it as perfect as it sounds? As a student, if you don’t have a parent as a warrant, you will have to find a loan by yourself. So no credit check student loans may be the best alternative. The payday loan companies are willing to approve credits in less than 24 hours, without so many documents required. However, such a credit comes with a huge interest, so make your calculations accordingly. On average, you need to pay $1 per day for every $100 borrowed, so make sure to pay this loan as fast as you afford to!
It is assumed that a student will start to work immediately after college, so he or she will be able to pay some rates by that time. However, finishing college means money, and some students simply don’t have it. If those students don’t have a parent as a warrant, their only option is the long term loan. This means that the bank approves the loan, but as soon as the student starts to work, he will have to pay the money back. To get a student loan will not be as difficult if you take the long term student loan. There are even some difficulties in getting this loan, because the bank still takes a high risk: what if the student is not able to finish college, or he can’t find a job after graduation?
Borrowing from your friends? It might be a good solution, but you will have to pay that money back eventually. There are different organizations in some colleges giving loans to student with small interests, and sometimes, those are the best places to get some money fast. The warranty is your word and reputation, but we all know that you can’t afford to play with that as a student.
SEE ALSO: How To Apply For A Student Loan