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What Every Student Needs to Know About Secured & Unsecured Loans.

I have done a lot of SEO content writing for websites; thus, I have done a ton of research about loans, credit cards, and consolidation.

The Scoop on Secured Loans

Federally secured loans are backed by the government. They are for students who are financially challenged. These types of loans are funded through the US Department of Education. Secured loans generally have a very low rate of interest compared to other loans. The loans are available to students who want to fund their college education. These types of loans offer deferred or flexible ways of repayment. Often times these types of loans will not require payment until six months after graduation. This will allow the student to obtain a job in their chosen field and acquire an income before the first payment is due. This allows for payback to be significantly easier.

What are secured loans for?

Loans that are secured federally can be used for many facets of a college education. The money can be used for books, classroom supplies, even room & board are covered by secured loans. It's true these types of loans can be helpful in many ways! Federally secured loans may also be applied for after graduation. This opportunity gives the student the ability to consolidate other loans, which they may have acquired during the school year. By consolidating all of your loans into one payment, with one interest rate, you can really save a bundle.

Federally secured loans can save you piles of money in interest!

Piles of money

Piles of money

How can you find information to apply?

Two great places to start looking into financial loans are with the college's financial aid office and with a school counselor. Either one should be able to point you in the right direction. They will also be able to tell you what to expect when looking for loans. Did you know it's actually in your favor to be in a low-income bracket when it comes to applying for Federally backed loans? Being in a lower income bracket can help you get a lower interest rate. There are specific low rates and flexible payment plans available. This will greatly reduce the amount of interest paid and make payback a much easier task.

Eligibility for the secured loan

Parents of students can apply for the loan in order to help pay for the student's education, or independent students can apply for the loan themselves. There are many different types of secured loans. In order to select the right loan, students can get in touch with the financial aid officer at the college of choice. Things that you may need to consider when applying for a loan is which loan would best fit your needs. Also, think about how much money you will need to secure.

What to look for in a secured loan

There are quite a few different loans available, along with many various lenders. Because of this, it is important to look for some vital characteristics of the loan such as interest rates, repayment time, payment amounts, and other fees. Additional fees may also apply if you plan on paying off the loan before the end of its term. It's always a good idea to get as much information as possible before applying for your loan.

When it is time to leave school

There may be several scenarios that can determine when the student will have to pay back the loan. Each case will vary depending on the student's specific finical situation. Federally secured loans are often flexible and usually offer a grace period. This allows for easier repayment of the money that was borrowed. However, if the student quits college or they are no longer enrolled as a full-time student then they will have to begin repaying the secured loan immediately.

What type of low rate loans are there?

While there are federal, private, and other types of loans, a major portion of the loans falls under two different headings. One is subsidized and the other is un-subsidized. Subsidized loans are easier for students because the government will take care of the interest on the loan. There are stipulations that are attached to this loan that you should be aware of. The student must attend college more than half the time and are able to keep up their grade point average. For the un-subsidized low rate loans, students will have to pay for the interest themselves. These loans have low fixed rates and other options which makes repayment easier for students. Consider which loan may be right for you.

What do students need in order to get a loan?

There are of course some requirements that need to be met in order to be able to receive these types of loans. Students need to be US citizens or at least full-time residents. Also, if students have had any loans with defaults, such as late payments, or no payments, then the student may not be eligible. Lastly, male students under the age of 25 looking to borrow the loan must be signed up for the selective service.

Unsecured personal loans for college debt consolidation

Being able to consolidate loans with a fixed payment amount can greatly assist students. Furthermore, using an unsecured personal loan gives students a chance to improve their credit score.

Also, it helps students who are carrying multiple loans with various interest rates. They can consolidate those loans through an unsecured personal loan. What this will do is provide a single interest rate and payment. This is much easier to handle than 3 loans with different creditors, payments, and rates. This can be very helpful. The money spent on interest alone can add up to anywhere from ten to fifty percent, depending on how much has been added up throughout the academic period.

Lenders for unsecured personal loans

No matter what type of lender a student borrows from, they need to get to know the company or institution prior to placing an application. There are many lenders who have no problem offering unsecured personal loans for students or their families. These help the borrower consolidate their other outstanding loans. Lenders are able to provide flexibility regarding payment. They offer a better and lower amount of interest rates and other options that help make this type of loan more beneficial. Students borrowing do not need to put up any type of collateral or assets on the line in order to get an unsecured personal loan.

Other sources for loans

There are various options that should be considered when applying for a loan of any type. Banks and credit unions may able to help you get a loan. Approach a bank in which you already have a financial history. Having an established checking account or credit card with the bank can only benefit you when applying for a loan. If you don't already have one, you may want to consider opening a student credit card. These types of cards may offer a low or no-interest period. Credit cards come in handy when working out the financial aspects of starting out after college. Of course, with any type of credit students need to make sure that payments are made on time, every time. If not, this could lead to a financial crisis in the making!

Get the CASH you need for tuition! Why not apply for a unsecured loan right now?!

Cash in hand

Cash in hand

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How Do Low Rate Loans Work?

Low rate loans are loans with very low-interest rates. While there are different grants and scholarships available to students, sometimes those funds may just not be enough. That's where low rate loans can come into the picture to help finance your education. There are several different types of loans. Usually, eligibility for low rate loans depends on the individual student's income or their family's income, and if the student is dependent. Some of the low rate loans available come directly from federal funding through the US Department of Education. Others are available through public and private lenders, some from the schools themselves.

Why look into a Low Rate Loan?

Due to the cost of tuition in public and private colleges, community schools, and various four-year institutions, scholarships and grants are not usually enough to cover the entire cost of going to college. Luckily there are some federal education loan programs that can help cover those extra costs so students can get an education.

Out of CASH but NOT out of luck!

Out of cash

Out of cash

Run out of money from your loans and charge up your credit cards? You NEED Help!!!

If you have depleted all of your funds and have no more money for books, food or rent. "What the heck are you going to do?" Unless you know someone who has the funds to assist you financially, your only option may be to resort to charging up your credit cards. This can later cause havoc on your finances.

Getting into credit card debt

Unfortunately, federal loans for college may not cover all of your expenses. To oftentimes funds from loans are spent on frivolous things that are not intended for college use. Your left with no choice but to get into credit card debt. But once you get into credit card debt, how can you get out?

If you have more than one credit card with high interest & debt, It may be time to consolidate.

Credit cards

Credit cards

A Few Reasons For Using Credit Card Debt Consolidation

There are so many reasons why students with credit card debt would want to look into using credit card debt consolidation. Alleviating the extra stress that results from holding various cards is one of the more important reasons that should come to mind.

Credit ratings

If borrowers have a credit rating that they can be proud of, credit card debt consolidation can be especially helpful. Most lenders or institutions that handle credit card debt consolidation will offer a greatly reduced rate of interest when looking at a consolidation loan. Unfortunately, if your credit rating is lower, the advantages of getting a loan with a low rate may not be an option available to you.

Advantages of credit card debt consolidation

Consolidating your loans will give you the advantage of having one payment compared to multiple credit card payments. This also ensures that no card is forgotten. When credit cardholders balance multiple different cards, each with different due dates and amounts, it's easy to lose one in the monthly bill shuffle. Having one payment to send makes this process simple and quick.

If you're falling behind on your credit card payments because the bills add up to be too much to handle. Suddenly, you find bill collectors are calling looking to be paid back. Their never-ending phone calls and letters of harassment haunt you every day. What can you do?

Credit card debt consolidation companies allow the cardholder the power over their debts and creditors. Allowing the cardholder the chance to pay off those separate card balances with one low payment and interest rate can result in piece-of-mind. Paying down the balance will result in a better credit rating as well.

Stop paying hundreds or even thousands in high interest rates, get out of debt TODAY by consolidating.

Cash & Cards

Cash & Cards

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2019 Jason Nicolosi

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