With the assurance of a secure and brighter future, parents endure hardships and sacrifices to be able to send their children to school and see them claim their college diploma come graduation.Reality teaches us to deal with life's challenges and student with poor financial capacity are usually the ones who are threatened not to finish their education. As they are engage in this life situation, students and their family seek out other possible means and sources in order to fill the gaping hole of their financial capacity.
Surely, the possibility of finding resources are countless. The following are some of the ways students are trying in order to solve financial difficulties: Part time work, university scholarships and income generating projects sounds good but how much and how long?
Many students and parents have finally found the credibility of student loans. Student loans are simply the borrowed cash to pay for schooling necessities and daily expenses. To understand better, there are two categories of student financial loans - federal and private. Federal student loan is a program delivered by financed by the government. Private student loans on the other hand, are managed and handled by different financing firms and organizations. The former offer this services by the United Stated Department of Education while the latter offer this by their socio - civic institutions or foundation and other firms.
When opting to apply for student financial assistance, it is imperative to know the different factors and conditions associated with the loan. Interest rates, payment options, incentives and origination fees should be understood by the borrower very well.
Then again, several financing companies believe that students are high- risk clients. Some companies will require the student to furnish documents that will serve as proof or evidences that the student applying for the loan is capable to repay the debt. This is what we call credit history.
Furthermore, if the student have no credit history or bad standing with creditors in the past, a cosigner is often required. The cosigner is a person who will share the accountability and responsibility of the borrower when debt repayment takes place. This can be your parents, grandparents or any of your reliable and trusted relatives. By saying so, the loan you can request for will still matter on your financial capacity and possible sources. Student loan gains a relative fair and lower amount of interest unlike any other loan.
However, the financing company will have to decline your application if your credit history is irreparable. These only mean two things. First, fix your credit use. Universities offer this program to help students manage their money as well as their credit uses. Second, find sources that will not require you of a credit check.
Federal Stafford loans do not require credit check. They also reach out to any student regardless of their income sources and financial capability. You can borrow up to $ 20, 500 per year. This is enough already to cover a good portion of what you may need to finish your education such as tuition fee and daily expenses. The interest rate is as low as 4.5 % and repayment will occur only after graduation.
Federal Perkins loan also offer this type of service but with a little difference. This loan is awarded to deserving students, poor and hardworking. Interest rate is fixed at 5% annual while repayment will matter upon the agreement of the borrower and the loan provider.
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