Loan Options For Students In Need

The older generation doesn't seem to accurately remember the struggles of paying your way through college. This is made only worse by the fact that college expenses have steadily increased over the years.

It's substantially more expensive to attend school than it was a decade ago. Not only are tuition costs higher, but so are the costs of living, transportation, and the materials needed (like text books and laptops). 

However, there have always been financial aid options and there are even more options today than

there used to be. This is great for the average student who is behind on their funding because it means they can choose a loan and payment method that is right for them, rather than being forced to stick with a certain standard.

Below are the two most common and effective methods for funding your way through a higher education.

What is a Student Loan?

Student loans have been around for a while. The idea is still the same, but the loan and repayment process has changed quite a bit. It's actually easier today to get approved. Some lenders actually have decent interest rates and most are willing to work with you on the repayment. Student loans are long-term loans and aren't repaid until after you've actually graduated from college.

While student loans are great, they do have some flaws. For example, you can't get money when you need it on the spot. You are usually paid in instalments during each semester, though some schools and lenders work differently. None of them let you just take extra money whenever you're in need. 

That's unfortunate because as a student there will probably be times when you really need some extra cash, but don't have any on hand. If you're working a steady job alongside your schoolwork, then you have a second option when it comes to quick cash.

For more information please visit the dedicated area of the UK government website - https://www.gov.uk/student-finance/overview

Payday Loans For Students

The number of students turning to payday loans for quick cash has increased over the past 12 months. About 2 percent of students took out a payday loan last year and that number will likely go up over time.  

A payday loan is a short-term cash advance taken out against an incoming paycheck. Not all students are eligible because you must be employed to be approved for a payday loan. However, aside from employment, there are very few requirements. This makes it extremely easy for just about anyone to get a loan when needed.

Important Information

Loans are repaid within 1 – 2 weeks. These are polar opposites of the standard student loan, which may not be repaid for another 6 years at least (depending on the time the student remains in college). 

However, payday loans aren't usually used to pay for tuition because they don't offer such large amounts.

Check out the following video for more information about student loans and how they should be used

For in-depth analysis of small loan options, please return to our homepage.