The cost of education in the U.S is rising. According to Valuepenguin, students may need to sink over $30,000 in their college education.That’s huge, and not so many parents can raise such a lump sum out of pocket.
Thus, many students turn to student loans to cover their tuition and other college expenses. Suppose you aren’t lucky to qualify for a student loan; in that case, you can fund your higher education with some of the best personal loans from fintech lenders.
The most common student loans
- Federal student loans: The U.S. Department of Education offers these credits. They come with the lowest interest rates and have the most flexible repayment terms.
- Private student loans: You can obtain private student loans from banks or credit unions. You’ll need a solid credit profile or a consigner to qualify.
- Personal loans: Personal loans are a great alternative. Some lenders allow borrowers to use personal loans to cover college expenses.
How to select a good loan for students
You should make some effort to choose the right student loan. Remember, you must repay these during or after college. Therefore, you need options that offer reasonable repayment terms.
To land a good student loan, follow these steps:
- Determine how much money you need each semester, including tuition and living expenses.
- Comparison shop lenders based on their requirements, applications process, interest rates, and repayment terms.
- Go for loans that offer better interest rates and flexible terms.
The best alternative for student loans
Before you go into debt, you should also explore other student loans alternatives. You may qualify for a scholarship or student grants and slide through college debt-free. Here’s a rundown of those alternatives.
Budgeting for your kid’s education is a great way to help them cover college expenses without borrowing a dime. So if your kids are young, start saving for their college education now.
If your parents stashed a college fund for you, you don’t have to hassle. Use that money to fund your higher education
Scholarships are a great alternative to student loans when it comes to financing a college education. Many students underrate this option, probably because of the work and time to apply for a scholarship. You should not give up!
Take time and research for scholarship opportunities online and fill in as many applications as possible. The average student may end up filling about 50 scholarships to qualify for one.
To tilt approval odds in your favor, make sure you apply as required. The Debt-Free Degree Scholarship Search tool can help with this search.
Work during school
Working through school is a proven way to fund a debt-free college education. While many parents and students despise this option as too difficult or distracting, it’s a viable alternative to those who are determined.
In the age of the internet, there are many opportunities for students to make money. Freelancing is among the top ones. From article writing, animation, managing social media accounts, graphic design, etc. There’s a lot of opportunities.
You can also join a work-study program for on-campus jobs and run a side business in the gig economy. Look for off-campus employment at the nearby restaurants, retailers, or companies that provide work-around schedules for students to work part-time during free time or weekends.
Grants are another excellent alternative for students. Nonprofits organizations, foundations, businesses, and schools award these types of grants to eligible students.
There are also federal assistance programs geared towards helping needy students, minority or disabled students, female students or students pursuing certain courses.
Personal loans for college education
If you don’t qualify for student loans or any of these alternatives, or if you qualify but need to top up your balance, searching for the best personal loans should be an option. Most lenders allow borrowers to use personal loans for higher education, while others do not.
So when considering a personal loan as an alternative to student loans, make sure you work with lenders who permit this. You’ll need a good to excellent credit score to obtain a personal loan from a bank, but online lenders welcome borrowers with fair credit scores. Some lenders even provide quick cash loans for bad credit score borrowers.
Visit the link in the intro to learn more about some of the best personal loans in the U.S.