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Personal Loan for Students

Many college and vocational school students find themselves faced with expenses that may not be covered by student loans and grants. Examples of expenses that may not be covered by student loans include textbooks, computers, software, housing, transportation and meals.

A lot of students have a hard time covering these expenses because their class load doesn’t give them enough time to work at a part time job. A personal loan for students is a good way for students to cover these expenses and remain in school.

A personal loan for students is a direct payment of money to a student from a lender or an individual. Unlike traditional student loans the funds from such a loan can be used to cover expenses not directly to education. 

Sources of personal loans for students

The best source of personal loans for students is usually a student’s family. A family member such as a parent or grandparent can loan the student money to cover expenses in students. The big advantage to such loans is that they don’t impact a student’s credit record. The student can borrow money without damaging their credit score.

Another good source of personal loans for students is the school itself. Many colleges, universities and trade schools will make loans to deserving students. Some schools have special loan programs available for low income students. Students can find out about these loans from the school’s financial aid office.

Many banks will personal loans to students. Students who are studying for degrees in fields with a potential of high income such as medicine or law will be more likely to get these loans.

Credit unions and banks associated with colleges or universities will often make personal loans to students. Students at the college associated with the financial institution may get a better deal on loans from these lenders.

Some students may also be able to get personal loans from individuals in their community or members of their ethnic group. Wealthy members of some immigrant communities may make loans to others from their country for example.

Disadvantages to a personal loan for students

A student will have to pay off a personal of credit sooner or later. Many students graduate school with a large amount of debt because of personal. Quite a few college graduates find their incomes limited because they have to spend most of their money to pay off college loans and personal loans for students.

Students can avoid this situation by limiting their use of personal loans for students. Students can also reduce their debt load by working part time or taking summer jobs. Every student should consider using part of the earnings from part time or student jobs to pay off personal loans.

Students can reduce the cost of lines of credit by getting the lowest interest rate possible on a personal loan for students. A student should always try to get a personal loan with the prime rate of interest. The prime interest rate is the interest rate that lenders give to their best customers so it is usually the lowest interest rate.