Should You Take Out An Extra Loan As A Student
In tough times, it can be tempting to just turn to the easiest and quickest sources of money namely, payday and high-interest loans.
We strongly advise against taking out either of these loans, as the medium- and long-term issues they can throw up .
The dangers of payday loans are, fortunately, relatively well publicised nowadays. But high-interest loans, such as those offered by Future Finance, dont receive anywhere near as much scrutiny or criticism as payday loans, despite having many of the same flaws.
Weve put together a guide to the dangers of Future Finance loans as well as the safer alternatives you can turn to for extra cash. Please read it closely if youre considering taking out a high-interest loan!
Worried that your Maintenance Loan isnt going to be enough to get you through uni? Check out our list of easy ways to make money for some inspiration.
How To Request A Review
The most basic request is called a Request for Reconsideration, which can be submitted online. Submitting duplicate requests will cause a delay.
Your request may take up to 30 days to process. You must submit it at least 30 days before the study end date you provided on your application.
You can check the status of your request at any time through your Student Aid account.
If your request does not require documentation you can call the Alberta Student Aid Service Centre to make your change over the phone. Review the list of requests that require documentation in the list below.
Some requests may require additional documentation. If documents are missing, your request will be delayed.If you submit your request online, you may be asked to provide the following information:
Making changes to personal information
Costs involving a child with a disability aged 13-18
Your Nationality And Residency Status
Credit: SevenMaps Shutterstock
Nationality and residency status is undoubtedly the murkiest of all the eligibility criteria, and it’s the one that tends to catch students out the most.
As a general rule, you should be eligible to receive a Maintenance Loan if you’re a UK national , normally live in the UK and have done so for the three years prior to the start of your course.
But it’s worth noting that all three of those things must apply to you to guarantee your eligibility. There are countless stories of students who were born and raised in the UK but moved to, say, the USA at 11-years-old and assumed that they’d be eligible for a Maintenance Loan as a British citizen. No dice.
In some instances, you may be able to successfully appeal and receive a Maintenance Loan anyway to do this, you’ll often need to prove that you’ve retained economic ties to the UK in your absence , or that one/both of your parents had to move abroad for work.
There are also special exceptions made for specific groups, including refugees and stateless people.
As we said earlier, it’s best not to let these eligibility criteria confuse you too much.
We stand by our statement that the majority of students at the majority of universities will be eligible to receive a Maintenance Loan especially if you’ve been studying at a school in the UK and will be attending a relatively well-known university.
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Make Sure You Can Be Paid
After you register at your university or college you’ll usually get your maintenance loan paid directly into your bank account at the start of each term.
Use your student finance account to:
Grants And Loans For Full
The Canada Student Financial Assistance Program offers student grants and loans to full-time and part-time students. Grants and loans help students pay for their post-secondary education.
- Apply for grants and loans in one application, directly with your province of residence
- You don’t need to repay grants you receive
- You need to repay loans after finishing school, with interest
- You may be eligible for more than 1 type of grant – when you apply with your province, they will assess your eligibility for all available grants
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How To Use Student Loans For Living Expenses
If you need to cover your living expenses while attending college, its a good idea to start by filling out the Free Application for Federal Student Aid . Your school will use your FAFSA results to determine what federal student loans and other federal financial aid you qualify for.
Also be sure to take advantage of any college scholarships and grants since unlike student loans, these dont have to be repaid. Theres no limit to how many of these you can get, so apply for as many as you might be eligible for.
After youve exhausted your scholarship, grant, and federal student loan options, private student loans can help fill any financial gaps left over. If you decide to take out a private student loan, be sure to consider as many lenders as possible to find the right loan for your needs.
This is easy with Credible you can compare your prequalified rates from our partner lenders in the table below in two minutes.
Maintain Interest Free Status
While you are in school full time, your student loan remain interest-free. Although you are not required to make loan payments during the first six months after you leave school, interest will begin to accumulate during this non-repayment period.
Going back to school? Reinstate your interest-free status.Whether you take out a new student loan for upcoming studies or not, your existing loan holder need to know that you are still in school. If not, you will lose the interest-free status on your existing loans and will have to start repaying loans earlier than expected.
If you are taking out a new loan and are registered as a full-time student: We will automatically confirm your enrolment to your government student loan providers. Please ensure you are registered full-time for the period of study your loan is for. We will not be able to confirm that you are enrolled at the U of S if you have not registered for classes.
If you are not taking out a new loan: You must provide Confirmation of Enrolment to your loan provider. As long as the completed documentation is provided to the loan provider within six months of your previous period of study end date, no interest will be charged.
For Integrated Student Loans or Canada Student Loans log in to the National Student Loans Service Centre On-Line Services and submit a Confirmation of Enrolment request online.
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Check Out Emergency Student Loan Programs
Emergency student loans are the most commonly used and offered form of institutional emergency aid, according to an analysis of emergency aid by the National Association of Student Personnel Administrators in 2016, the most recent data available. The report says nearly 3 out of 4 public four-year colleges have an emergency student loan program, according to survey respondents.
Each college has its own program setup for emergency loans. Make sure you understand your colleges specific emergency student loan program. Here are the key factors to look at, along with some sample options offered at various schools of Dec. 12, 2020:
Youll typically be required to complete an application for an institutional emergency student loan. Then, the financial aid office will assess your eligibility.
While emergency aid programs are common, they arent standard across all colleges, so this may not be an option for everyone.
School Grants And Scholarships
Like with state grants, this is another type of grant that isnt standardized but is available by completing a FAFSA. However, youll need to apply to the school in question to gain access to the information.
If youre accepted to the university in question, itll put together a financial aid award letter based on your FAFSA. Youll receive this letter along with your notification of acceptance to the school. If you qualify for any of the schools grants or scholarships, this letter will tell you.
Of course, you can also contact the school directly to ask about possible scholarships or grants you may qualify for. You might be able to find out about scholarships offered for specific majors.
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Extend Student Loan Relief: Us Senators
A group of U.S. senators including Senate Majority Leader Chuck Schumer and Sen. Elizabeth Warren say that Biden must extend student loan relief to avoid financial disaster for more than 40 million student loan borrowers. . The senators say that restarting student loan payments will cause significant financial stress in the wake of the ongoing Covid-19 pandemic. Specifically, they cite a Roosevelt Institute study that shows that failure to postpone student loan payments beyond January 31, 2022 will cost student loan borrowers $85 billion. They argue that 9 million student loan borrowers in default could be subject to wage garnishment and other debt collection methods if student loan payments resume. In addition to seriously damaging the economy, the senators note that Black and Latinx households would face a disproportionate burden from resuming student loan payments. .
Provide Notification If You Become Ill Or If Anything Changes
If anything happens or changes during your period of study, it is important for you to provide notification of the change so that you receive the right amount. Changes might include you e.g.
- interrupting your studies
- studying for fewer credits than you had planned
- selling a property and receiving income above the free amount.
If you are a foreign citizen, you also have to notify CSN in the event e.g. of any changes to your residence permit, or in the event you or a person you are related to should stop working or have a reduction in working hours.
You can submit a change notification in Mina sidor or contact us in some other way. If you fail to report changes and this results in you being paid more than you are entitled to, you will have to pay the additional funds back. We will check the information you have provided to CSN with the schools data.
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When To Use Private Student Loans
You should consider federal student loan options first, but private student loans can be a good option for some borrowers, such as students whove borrowed the maximum amount of federal loans and still need money.
Parents and graduate students with good credit or undergrads who have a co-signer with good credit may also be able to get a better interest rate with a private student loan than a federal one. Brendan Coughlin, president of consumer deposits and lending at Citizens Bank, estimates that more than half of borrowers could qualify for a better rate with a private loan, unless they qualify for a federal direct subsidized loan.
Still, McCarthy encourages borrowers to stick with federal student loans even if they could get a better rate with a private loan because federal loans offer income-driven repayment plans, deferment and forbearance options, and forgiveness programs. Some private lenders offer some of these benefits, too, but theyre typically not as favorable as the federal versions.
Repaying Federal And Private Student Loans
- Federal student loans: Following a six-month grace period, you generally begin to make principal and interest payments.
- Private student loans: Youll generally have a six-month grace period. If you elected to make in-school fixed or interest payments with our Smart Option Student Loan, youll continue to make those payments during your grace period. After that, youll begin to make principal and interest payments.
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Start By Submitting The Fafsa
Submit a Free Application for Federal Student Aid, or FAFSA, to find out how much financial aid you may qualify for, such as grants, scholarships and work-study, that wont have to be repaid. It takes about 30 minutes to complete. Each school you apply to will use the FAFSA to determine your financial aid the gap between aid and cost of attendance is what you have to cover.
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Choose The Best Offer
When you have a few loan offers in hand, compare them to see which loan is the best for you. Then sign the loan documents and move forward with your education or paying off your loans.
If you have a cosigner, you may also want to get a term life insurance policy to protect your cosigner should anything happen to you. A term life insurance policy for the loan balance can be very inexpensive.
Remember, some private student loans require immediate payments, so make sure you double-check your lender and their repayment plans before you commit.
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S To Apply For A Federal Student Loan At Valencia
To apply for a Federal Direct Stafford Loan, you mustcomplete the FAFSA using our School Code of 006750. To be eligible, you must be enrolled for at least six credit hours which count toward your current degree and be maintaining Valencias Standards of Satisfactory Academic Progress. If you are eligible for a Federal Direct Stafford Loan, it will be included on your financial aid offer notification.
You will have the option to Accept, Decline or Reduce your Federal Direct Stafford Loan on your offer notification you receive through ATLAS email.
If you are a first time borrower of the Federal Direct Loan, you will be required to complete a Master Promissory Note before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN during your college career at Valencia, provided you are borrowing a Direct Loan. You complete your Federal Direct Stafford Loan MPN by signing into the StudentAid.gov website with you Federal PIN. You can also complete your Loan Entrance Counseling while you are on the site.
Other Grants And Loans That You Can Apply For
Some students can receive more grants or borrow more money.
- If you have custody of children under the age of 18, you can apply for extra child allowance.
- If you have worked in the past and received a certain minimum income, you can apply for a supplementary loan. You can receive this as of the year you turn 25.
- If you are studying at compulsory or upper secondary level and satisfy certain conditions, you may receive an increased grant element in your student aid. You can also receive this if you are studying on a complementary educational programme leading to a subject teachers degree. When you apply for student grants and loans, CSN checks whether you are entitled to the increased grant, so you do not need to apply for it.
- If you have additional costs associated with your studies, you can in certain cases apply for an additional loan. For example, you may have costs for double housing or for certain trips.
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Direct Loans: Subsidized And Unsubsidized
Both subsidized and unsubsidized loans are granted at the beginning of a semester, and neither is required to be paid back until after you graduate . No matter which year the loan covers, once youre out of school, your payments begin.
The big difference between subsidized and unsubsidized loans is when you start paying interest.
An unsubsidized loan gains interest just like a private loan would: starting the day you take it out. The dont-pay-until-you-graduate grace period only applies for your loan payments. Interest payments are still required throughout your time in school.
However, if you take out a subsidized loan, the government pays interest for you while youre in school. Your personal interest payments will begin only after you graduate, along with the rest of your loan payments.
If youre going to take out a federal student loan, Rebecca recommends pursuing a subsidized one.
I remember the difference by saying unsubsidized is uncool, Rebecca said. Paying off the interest on an unsubsidized loan can be very stressful for students, especially if they arent earning much on the side while theyre in school.
Plus, she mentioned, if you are earning an income while in school, you would be better served by putting that money toward paying for your next semester upfront and skipping the loans altogether rather than paying down a growing debt.
The fewer loans you take out, the less interest you pay. The less interest you pay, the cheaper college will be.