You have just conceded your school, wow congratulations! Definitely want to join the college for higher studies. If you want to start your career, you must hold a college degree in your hands. But nothing is easy to earn, as even studying in college is pretty posh. The average cost of a bachelor’s degree by a government university for four years is about 25000$-30000$.
This figure rises to a large extent if you move towards private colleges/universities. Tuition dues are not only expensive, but students also have to grapple with many other expenses such as transportation, high living standards, daily needs, stationery, books etc. These expenses can leave college student strapped for cash. So a financial emergency can transpire anytime.
What is a student emergency loan?
As the name implies, an emergency loan is considered necessary when a student needs money now. This loan is specially designed for the student to deal with the financial calamity. The sole purpose of a student emergency loan is to provide aid for them to complete their education in case of emergencies.
Life is uncertain, and anything can happen anytime; you can’t even predict what is going to be happening in your life within the next few seconds. Unforeseen events can leave a negative financial imprint on your educational career and sometimes due to diminishing reserves you may end up sacrificing your study by leaving the college.
But the good news is that “there is a solution to every problem”. Financial aid offices are working to provide emergency student loans when required. This help can fill the gap in college funding and encourage you to continue with your degree program.
Types of Emergency Student Loans
Below there are two types of student consolidation loans that you can take in case of an emergency
- College emergency student loan
- Private student consolidation loan
In case of an emergency, head towards your college financial aid office. Colleges have reserves for students having a good GPA and academic background. Your college may grant you an emergency loan if your need is genuine. Getting aid from your college is a good thing, but if they do not have enough resources to aid their students in case of emergency there is another option of private loan lending companies.
After checking your enrollment in the college, private financial aiding companies can provide you with a loan quickly and easily. But make sure that you do not spend this fund on eating out and holidays. The student loan should be spent on a true rationale.
When students need an emergency loan?
- Food calamity
- Safety and security crisis
- Housing problems
- Conveyance troubles
- Medical emergency
- Family crisis; loss of the relative or sudden death of the guardian
- Admission dues for enrolling in a new class
- Many more
What are emergency student loan programs?
The prevalence of student emergency loan programs is becoming prominent day by day. Colleges are giving support to students in acute financial needs through these aiding programs. The standards of a student emergency loan can vary from college to college and from state to state.
Each institute has its different terms and conditions. The student should check these terms before taking out an emergency loan. Some of the terms are given below:
- What is the limit that you can borrow from the college?
- What is the repayment period?
These emergency aids provide urgent loans and demand quick and fast repayment as well.
- Interest rates:
Some colleges offer interest-free loans while others don’t. The interest rate may be about 10% on the total payment.
- Service charge implies:
Services charges may be implied on emergency student loans. The latters are about 2% of the total amount.
You will be required to fill the form of emergency student loan and provide a few crucial documents for the authentication so that your eligibility for a student emergency loan will be assessed by the financial loan aiding officer.
How much time is required to get a student emergency loan?
As mentioned above, there are two types of loans, federal or private. Both have different terms and conditions to continue with loan approving and lending procedures. Below is a comparison of federal VS private student emergency loans.
A comparison between federal and private student emergency loans
|Federal student emergency loan||Private student emergency loan|
|Federal student loans do not require credit score or an income qualification||Private lenders consider your and your co-signers income before lending a student loan|
|Interest rates are less||Interest rates are pretty high|
|Repayment options are the same no matter which plan you pick||Different terms and conditions apply on different plans, so read your contract carefully before applying for a student emergency loan|
|Federal loans provide forgiveness opportunities||To the point, no clemency|
Emergency student loans are used for acute financial calamities. Students searching for urgent loans and want to get money now will definitely find this article invigorating. By understanding both private and federal loan procedures, they will be able to pick a fitting option for them. The only thing to keep in mind is “Never lose hope, there is a solution to every problem”