The student loan crisis has a lot of people rethinking how they finance their education. Many people are trying to avoid taking on large future obligations that will have them on the hook for many years to come.
That doesn’t mean they never run into any cash flow problems or never borrow any money. Personal loans for students can play a role in managing your finances wisely while in college.
What is the Difference Between Personal Loans for Students and Student Loans?
A student loan is typically for a large sum and then you don’t make payments until after you stop going to school. It is often intended to cover living expenses.
In contrast, personal loans for students are regular loans to handle short-term cash flow issues. You may borrow money to help cover books and incidentals for this quarter.
The amount will be relatively small, such as a 500 dollar loan or a 2000 dollar loans, not 10,000 dollars or more. You will make payments in the here and now while attending school. So you may be looking for something like a payday loan or a small installment loan.
The Number One Reason to Avoid Student Loans
The people most at risk for defaulting on a student loan are those who don’t complete their degree. If you are at risk of not completing your degree, then personal loans for students may make more sense for you than student loans.
Here are some situations that may put you at increased risk of not completing your degree:
- You are a young, single parent.
- You are a military spouse.
- You have health issues.
- You have special-needs kids.
Talk to your college counselor. You may be able to get some grants or even small scholarships. This is aid that doesn’t need to be paid back.
It’s okay to borrow a little money sometimes. Just don’t borrow tens of thousands if you aren’t confident you will complete your degree program.
How Do I Apply for Personal Loans for Students?
These loans typically require little in the way of papers. You will need to provide a copy of your identification, such as:
- Student ID card.
- Driver’s license.
- State ID card.
You will also need to support your claim of income. This is typically done by providing a recent bank statement or pay stub.
Where Can I Find Personal Loans for Students?
You can find personal loans for students right here, right now. TheGuaranteedLoans is a loan matching service. We help borrowers find the loan products that best fits their needs.
We keep a database of direct lenders who would be hard to find on your own. You fill out a single application with us and we let the lender know if you are a match for their products. Then they contact you to complete the process.