Can You Shop Around For A Student Loan Online

Higher education is a pathway to a rewarding career. With education, you can access opportunities which will enable you to make your life successful and adds a meaning to it. Quality education now comes with a very heavy price tag and it is impossible for students coming from financially weaker sections to cover the expenses. That does not mean that the students should get disheartened. To help these students in particular, lenders are now offering financial grant in the form of online college loans.

College loans are affordable and are offered by most lending institutions. Any student in particular can source these loans to cover the expenses of any particular course. With the assistance of these loans, all the related expenses on education such as paying course fee, library dues, hostel and mess dues, purchasing equipments, computers, books etc.

Types of student loans

Student loans are classified in to 3 basic categories. They are

  • Government student loans
  • Parent student loans
  • Private student loans

In case of government student college loans, the loan amount is approved by the government's education department, which is directly granted to the students. The terms and conditions are quite reasonable and need to be repaid after the completion of course.

On the other hand, parent student loans are offered to the parents of those students who are dependent. Here, the repayment has to be done by the parent on completion of their wards education.

Private student loans can be sourced from lenders such as banks, financial institutions etc. student has to repay the amount after completing the course. However the rate of interest levied will be slightly higher.

Applying for a loan online is easy and convenient

Online college loans can be availed by applying online. There are numerous lenders offering these loans and proper research will assist you to obtain these loans with suitable terms and conditions. The approval is instant and free from any hassles. Moreover, with these loans, you get rid from the stress of arranging funds to cover your education expenses.

Today, large numbers of lenders are available in market to offer you college loans. Due to increased competition, some lenders are offering attractive student loan packages even with various liberties in repayments like payment holidays. As a student you must thoroughly research lenders before making an application.

You can use Internet to search for private student loan as well as government student loan.

Why apply online for student loans?

Applying online for student loans has several benefits. Some of these are:

  • Online student loans are affordable with very low rate of interest
  • They are unsecured, so your home equity or retirement accounts are never at risk
  • They are very easy and fast, require no government forms and no deadline and quick approval.
  • Online student loans give you chance to earn on your investments and savings.
  • Require no paperwork.

How to apply online for student loans?

Applying for a student loan is simple. You can apply via lender or can directly login to the website, and can apply for an online student loan.

If you are a graduate, you will be asked to provide personal details such as your name and address. You will also be required to provide two personal references. If you have taken any previous loans, you will be required to declare the balance and rate of interest on the loan.

Consolidating your student loans

If you have several loans, a student loan consolidation centre allows you to combine several types of federal student loans with various repayment schedules into one loan with one monthly repayment.

Most student consolidation loans fall into two categories. They are government student loans and private student loans. Student consolidation loan centers provide loans such as federal, Stafford, professional student loans, nursing student loans etc.

The government loan consolidation centre provides a student loan consolidation program which allows students to consolidate outstanding education loans into a single new loan. This is not limited to a single lender. Even if multiple lenders hold the loans, one can still opt to consolidate.

Students must only consolidate loans which are of variable or changing rates such as the Stafford Loans. Never consolidate on fixed-rate loans such as Perkins loans as there will not be any financial benefit. Interest rates for college students who are already adults or on their way to sixth month grace period will be higher.

Do you need a student loan but have poor credit history?

Even though you feel your poor credit history makes you ineligible for a student loan, there are many lenders with poor credit student loan programs for students in your same situation. You just need to do your homework to find them. Some of them have families of their own, and may be returning to college to prepare themselves for a new career path. And in the process of supporting a family, might have incurred lots of debt which damaged their credit history. But regardless of the past, these students need financing too.

Many lenders will be willing to work with you to get your poor credit student loan, and to achieve your educational goals. As you begin the search for a poor credit student loan, you should become acquainted with all of the options. There are non-credit based government loans such as Perkins, Stafford, and other types of loans.

With a Perkins loan, your credit rating will not be a factor. But these poor credit student loans are much harder to obtain. The challenge is to demonstrate financial need. They are given to eligible students that are disadvantaged. They are available for undergraduates and graduate students.

Another type of poor credit student loan is the Federal Stafford Loan programs. There are many significant benefits to this type of loan. The program allows you to reapply each year, as necessary, as an undergrad or graduate student. They can be subsidized or unsubsidized, and do not require a credit check. The only problem with both types of Stafford funding is that it tends to be small, thus requiring that you get additional funding.

For students hoping to become teachers, doctors, nurses, etc, there are many poor credit student loan programs associated with these specific fields of study. If you have decided on a major or field of study, it would be a good idea to do an online search, as well as checking with your student aid department to see if any special programs are available in your field of study. This category of poor student loans may be referred to as field-specific programs.

As a final word of advice, make sure you understand the terms, conditions, and interest rates when you apply for a college loan.. As you apply these tips along with other information you have, it should give you greater confidence and renew your hope in obtaining your funding. Even though your credit history may be poor, there is a poor credit student loan program waiting for you.