How To Get Student Loan. Are you a student?
Do you want to get loan to invest in your education and you do not know how to go about it?
Well, if your answer is yes, then you are on the right site. This page will tell you all you need to know about student’s loan and how to go about it.
Students loan are given to enable students who cannot be able to afford the school fees further their education.
Sometimes these loans might be needed to study abroad or even within the country. The cost of education might be too much for parents or guardians and so might require borrowing loans.
Before thinking of getting a loan, it is important that you know what a loan is with it’s terms and conditions.
What Is A Loan?
A loan is a sum of money lent by an individual, organisation, or other legal entities to another individual, organisation, e.t.c. It is lent with a condition of paying back within an agreed period of time with interest.
There are usually terms and conditions attached to collecting loans. It takes a lot of processes to collect a loan including loan agreement. It is better to check out other means of sourcing for your higher education than loan. In fact, a loan should be your last option as it involves risks which students might not be able to bear.
Other means of creating funds for higher institution fees.
Temporary job : It is better to get a minor job that can help you raise some funds before applying for admission.
Borrowing : You can also try borrowing from friends, family and colleagues to raise up some funds for your tuitions.
Fixed deposit account: Parents can also start from a very early time to save up in a fixed deposit account. The money would even add up interest to the account and would be beneficial in the future.
Work-study : As a student, while studying, you can also pick up a part time job to help raise some funds. It is true that it might not be very easy, but it will save you some trouble of taking a loan.
Affordable higher institutions : Consider affordable higher institutions as this will help minimise expenses.
Scholarahip/Grants : Instead of sorting out for loans, it is better to look for scholarships and grants. Even though, it might be competitive, with much studying and good grades, you can achieve it.
After considering these listed above and it does not seem to work out for you, then you can apply for a loan.
Though, It is better to apply for a federal government loan than a private loan. There are different kinds of loan for students. Though they would require a loan agreement to seal the terms and conditions of giving out the loan.
A loan agreement stands as a prove of mutual agreement on terms and conditions of collecting loans. The loan agreement can either be a simple promissory writing, mortgage, auto loans, credit card.
Promissory writing is a short note indicating when and how the principal and interest of the loan will be paid back.
Others are a published agreement where there must be a co-signer who will agree to pay the money and interest if the borrower does not meet up.
You can either choose to borrow loan from federal government programmes or private lenders like banks, mortgage, money lenders, e.tc.
Two Major Kinds of Students Loan
- Subsidised loan
- Unsubsidised loan
A subsidised loan is better for students as this will enable the student pay after schooling. There is also a grace of six(6) extra month of grace to pay the stipulated principal and interest. If this is from a federal government program, then it is the best as the interest will be paid by the government until after you graduate. During the 6 months of grace, the student can find a job which can enable them pay their debts.
An unsubsidised loan requires for the student to pay a stipulated amount of principal plus interest while studying.
Though it reduces the amount of interest to pay after studying but it could be difficult to meet up with.
Requirements For Getting A Students Loan
Firstly, if it is a private loan, you might have to come with a cosigner. The cosigner will stand to pay for you invade you do not meet up with the payment at the due time.
Secondly, you must have your admission letter to prove that you are a student or prospective student.
Your passport photograph is also needed.
If you are an undergraduate, you must maintain good grades to qualify you.
For Free Application of Federal Student Aid (FAFSA), you must be on a progressive academic grade.
Students must either be citizens of America or have permanent residence. Other countries too can apply, but it is best applied in your country.
How To Apply For FAFSA Loan
Ask your school if there are any schorlarships, grants or loan associated with them.
If there are, pick the form, fill it, and submit it online via FAFSA.gov
The application will be processed in about 3-5 days.
Student would be sent a student aid report (SAR) to communicate your eligibility and terms and conditions.
The FAFSA is for students who want to study abroad as it is quite expensive to study abroad.