Being a student can be somewhat challenging especially when you don’t have enough funding to see you through graduation. Your parents might also not make enough to be able to sponsor you through school. This is precisely why some organizations as well as the government have made provision for some of the best student loans.
Students loan as the name implies is a type of loan specifically designed for students who need funds to be able to see through their education but don’t have enough presently. The main reason for this program is to ensure students do not lose interest in education because of the inability to finance their education.
This article is targeted at giving you an insight into student loans available and all there is to know about student loans.
What is Student Loan?
A student loan is a kind of loan targeted to aid the payment of students’ tertiary institution costs such as tuition, living expenses, books, tech gadgets, supplies, etc. Your school will likely include student loans as part of your financial aid package when you apply for financial aid.
How Student Loan Works
At least one parent (with an income) and the student apply for the loan. While the student is studying, the parent(s) is required to pay the interest portion of the loan on a monthly basis in an agreed-upon amount. The capital amount is the sole responsibility of the student, and the student is to repay the actual loan amount on a monthly installment plan before or upon graduation.
Why Get Student Loan?
#1. Cost of Living
The living expenses for three years or more depending on the duration of your program have the potential of mounting up especially if you are studying in one of the big cities in a country. A student loan can help you do just fine and help you get a decent living standard.
#2. Great Rates
Leaving aside the ease in getting a student loan, Government student loans have relatively low-interest rates when compared to other types of loans. The reason for this is to encourage students who need the loan to apply.
#3. High Tuition Cost
Following the increase in tuition globally, program courses have extremely increased with an average standard of £9,000 per annum. It is very likely you will need a student loan in order to be able to continually pay your annual tuition fee.
#4. The Best Investment
Education is no doubt a future investment. So why allow money to deprive you of the opportunity to make this investment in order to get the full benefit in the future? This is why the student loan is here for you to help you attain your educational aspiration and achieve your goals.
#5. Remain Relaxed and Focused
Peace of mind is very relevant if a student must concentrate on his or her study. Instead of worrying about how to pay for the next tuition fee or house rent, the student loan can help you pay these expenses with a long-term repayment period which will help you concentrate on your studies.
Student Loans For College
- Perkins Loans
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Direct Consolidation Loans
- Direct Plus Loans
You can learn more about college students loans using this link- college
Type Of Student Loans
There are basically 2 types of Student loans
- Federal Student Loan
- Private Student Loan
Federal Student Loan
Federal Loans are provided by the Government to students seeking financial aid with regards to their studies. There are various types of financial loans. The choice loan you need is dependent on your financial need, credit history, year in school, etc.
To apply to get the Federal Student Loan, fill out the loan application form at FAFSA.
Types Of Federal Student Loans
- Direct Subsidized Loan
- Direct Unsubsidized Loan
- Perkins Loans
- Plus Loans
Private Student Loan
This type of loan is given by private entities such as Banks and other financial institutions. In this type of student loan, the private entity lender would want to see proof of your repayment capability, which can be in the form of a good credit reputation. A guarantor who will present himself as a co-signer can also help you qualify. This person will be held responsible if you default in payment.
Types Of Private Student Loans
- Credit Union Loan
- International student loans
- State Loans
- Medical school loans
- Credit Union loans
There are many other private students loan available apart from the ones mentioned here.
Student Loan Companies
The Student Loans Company (SLC) is a UK public sector organization that is primarily set up for providing loans as well as grants to more than a million students yearly. The company is popularly known across England, Wales, Northern Ireland, and Scotland.
The Company is a non-profit-making organization owned by the UK government. It was established in 1989 solely for the purpose of providing loans to students and also grants to UK Students in the universities.
Bank Student Loans
Even as the government gives loans and grants to students to encourage education career pursuit, the private organizations also provide these loans to students. Banks are examples of such private organizations. Unlike the government, their primary motive is to make gains.
Best Student Loans In 2022
The best student loans available in 2022 are:
- Prodigy Finance
- Mpower financing
- Citizen One
- Ascent Student loans
Prodigy financing is a student loan company that offers loans to students (both international and local) wishing to further their studies at the postgraduate level. This loan requires no collateral or guarantors.
Prodigy Financing was established in 2007 and has helped more than 20,000 students finance their education abroad.
Mpower financing is a loan-giving platform directed particularly to students. With this loan platform, international students wishing to study in Canada or in the U.S have the opportunity to do so by getting a loan at Mpower financing can do so without credit checks or cosigners.
The lending company was founded in 2014 and its loans are offered to Graduate, Undergraduate and international students. Mpower aims to be a solution to student funding all over the globe.
Discover is a private student lending platform for international students who are attending an eligible U.S College and has a U.S Citizen or permanent resident as a co-signer.
The bank has been operating for some time now and began offering private student loans to students since 2010. Loans equivalent to 100% of education costs with variable and fixed rates are very much available.
Citizen one provides some of the lowest interest rates to students on its graduate and professional loans given that the student has a co-signer who is credit-worthy.
Most people also know this student loan bank as a Citizen bank student loan. With a Citizen bank student loan, you can choose how you wish to repay, either by deferred repayment plan, interest-only repayment, or immediate repayment plan. Students can decide on the plan that works best for them.
Ascent Student Loans
Ascent Funding is an online lender in San Diego and was founded in 2016. The platform offers graduate and undergraduate student loans for students having or not having a co-signer at over 2000 eligible schools nationwide. For a loan without a co-signer, you would need to have more than 2 years of credit history.
Student Loan Forgiveness
A Student loan forgiveness is a waiver from having to pay a federal student loan gotten for funding tertiary education. Forgiveness in student loans is not applicable for all student loans. Only federal direct loans qualify for forgiveness. You can earn the student loan forgiveness by rendering your service to the public by a means of doing community service or by making payments through an income contingency plan for a long time period.
As a student, it is quite obvious that there are quite a lot of loan options available to fund your schooling with very flexible repayment plans. I guess with these loans available to students, there are now fewer reasons why one won’t have an education.
- Nerdwallet– Types of student loans
- nerdwallet– Student loan companies
- Investopedia– citizen bank loans