University Loans and Options for Borrowers

by admin on April 5, 2014

Students can choose from private and state universities, and the latter are usually less expensive. There are different options to consider including financial assistance under government programs and loans from brick-and-mortar banks and non-bank lenders. The best choice is a loan with a fixed interest rate and flexible repayment scheme. Loans under government programs come with subsidized interest and extended repayment plans . Your parents’ tax returns are not taken into account, and there are other benefits.

Applying for a Grant

Applying for a grant or scholarship is another option for students. Scholarships are offered by universities and different organizations. Most students are looking for a full scholarships, but there are other options. You can apply for community service, athletic, and academic scholarships.   You can use an online calculator to weigh your writeoptions. Students can choose from green, full tuition, military, legacy, and study abroad scholarships.

Government and Private Loans

Federal loans are cheaper in that they come with fixed interest rates, which makes budgeting easier. There are advantages to loans with a fixed interest rate, one being that borrowers know the amount of their monthly payment. Private lenders offer fixed and variable rates that vary from one bank to another. Banks are also interested in the applicant’s credit score and payment history, especially when it comes to unsecured loans. Students who apply for government loans must meet certain eligibility criteria such as financial need. Consumer proposals, foreclosures, and defaults are likely to get you disqualified. Maintaining satisfactory academic progress and a high school diploma are also requirements to meet.

Other Loans

Parent loans are another option for parents who have dependent students. Parents are asked to present documents that verify their assets and income. These loans are designed for half- and full-time students enrolled in a certificate or degree program. Applicants specify the loan amount, whether the funds cover school-related or non-tuition expenses, and other details.

There are alternatives for college and university students, including private and institutional lenders. Some students work part-time while others apply with a private lender.

Institutional loans are offered by colleges and universities. You may want to contact your financial aid office to check whether loans are available. The loan amount depends on whether you are a postgraduate or undergraduate student, dependent, etc. There are certain documents to present when applying, including proof of identity, household income, and others.

Related resources:

YourLoan.ca: Student Loans

 

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