An example of a type of loan could help students in their financial support for tuition, living expenses and books is federal student loan. However, the loan processing would take months which makes it more difficult to apply. However, when you only got a short time for a loan preparation, you may consider having a private student loan where in loan application would only last for as little as five working days.
There are also a great number of students who are in college who are asking for financial assistance from a work-study program, grant or Federal student loan.
Also, due to a continuously rising college tuition which makes it more difficult for the students to pay school expenses.Students must search for ways to settle their account when they’re having deficit due to a great difference between the cost of education and the financial aid. Other students might consider using their credit card or personal savings. On the hand, an application for a private student loan from a private bank may be taken into consideration when these two options still won’t work.
Private student loans are processed quickly that is why it is a favorable solution for an urgent problem. These private student loans are quicker, and you can already have the money as quick as five working days compared to Federal student loans that usually take few months to apply and get the cash. Once the student can already receive the funds, the cash may then be used for different purposes such as books and tuition. There is a limited purpose as to where federal student loans should be used. On the other hand, the fund consumption of private student loan funds can be used for any purpose that is related to education such as purchasing netbook, paying rent, and transportation.
In spite of the advantages of private student loans that offer quick application and processing including its flexibility, one downfall of this loan is the difficulty for loan approvals. Federal student loans is not requiring for any good credit that makes it easier for students to apply since they only have little or no credit history at all. Private student loans are said to be the opposite of this. Loan requirements are needed that includes a verifiable income and a solid credit history since this will be approved by private banks. Private student loan tends to have higher interest than Federal student loan which could be equivalent or higher than the student’s monthly payment, this is another thing that should be considered.
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