College Loans | Complete guide 2020

The global financial crisis is a situation that has affected all areas of society and is becoming more delicate every day, especially for university students who often do not have the necessary resources to pursue postgraduate, master's, bachelor's degrees or specializations inside or outside of the country, which supposes a tremendous economic effort.

Different college loan alternatives

Most banks today put many obstacles, making it difficult to get financing for university students. However, this no longer means a problem, since there are entities that are very helpful to finance studies through loans in order to face the race concentrating on what really matters, studying.

These loans are very accessible and fast . It does not require a long list of documents or cumbersome red tape and can be had in a matter of minutes. But, above all, they are easy for applicants to understand, without as much complexity as the different financial products offered by different entities and banks tend to be. The best of all is that the client has the possibility to demand their conditions and the type of loan that is best for them.

In general, the interests and fees of this type of loan are quite minimal when compared to other credits. They are wonderful since, you will not have the pressure of not having paid studies or that they involve a trauma for the family's savings.

Although obtaining them is a fairly simple process, there are many options in institutions, which means that it is important to review each of the pages on the Internet that are responsible for offering this type of services and thus find the most appropriate one according to the requirements of each client. .

It also depends on the amount of money you want to request since each company has its own limits . Even the time granted is made from considering the amount borrowed, taking into account that, the higher this amount, the more likely it is that the time granted will be much more.

Thanks to the wide market that offers this type of university credit services , if any entity rejects the application, you can look for another option , since there are dozens of institutions that also offer these credits. You just have to consider all the college credit pages that do not have so many obstacles and apply online without getting involved in complex loans and out of reach, especially for those who have a poor financial literacy.

College Loans | Complete guide 2019
Types of college loans

Three types of college loans

  • Microcredits : these are relatively small amounts offered by financial institutions, but which do not cover the amount of university studies, however , they are of great help to defray specific expenses such as maintenance or monthly payments. They are managed and processed quickly and are amortized in a short term. Here you have more information about mini-loans with our guide.
  • Officials : they are issued through official organisms in order to pay university fees and maintenance. They are quite advantageous since the refund has a grace period for the first five years and from that moment the refund is spread over 15 years.
  • Banking: almost all banks today offer this type of loan and for quite considerable amounts. They have an interest rate that can be fixed or variable, but the opening commissions or penalties must be taken into account.

What are college loans like?

In recent years, university loans are one of the financial products that has had the most demands , either to start a career or to specialize, as mentioned above. They are of excellent help and offer maximum flexibility and all kinds of facilities when requesting them.

Customers can choose the conditions and in just a few minutes the requested amount can be available . you just have to choose security. In general, most agree to offer high amounts, no commissions are required, repayment terms are greater than five years, and there is the possibility of requesting grace periods, that is why more and more people choose to make a request and thus pay for university studies.

Students are requested a series of documents such as the DNI and fill out an application , which will be approved after making a socio-economic diagnosis, as well as certificates and documents that support the degree to be studied and the duration .

Is it possible to ask for a college loan if you don't work?

There are entities that, if the student does not work, allow them to add joint owners, such as parents or guarantors , who guarantee that the loan will be repaid in cases in which it cannot. However, there are others that require a single owner and who has a payroll that shows that the monthly payments can be paid during the amortization period.

Can you pay off a college loan later?

Many entities offer a total or partial grace period . That is, you cannot pay anything or pay only the interest during the first years of the contract. This is an option that is convenient in many cases, since it avoids the worries of paying the fees while studying and starting to pay when you are already working.

How to calculate fees

Before requesting this type of financing, three important aspects must be taken into account and that will serve to organize finances:

  1. How much money can you ask for.
  2. What is the amount of the fees to be paid each month.
  3. How long the loan is repaid.

There are help tools such as a loan simulator , which once the fields are filled in, allow you to have an idea of ​​how much money you can ask for, how much the monthly payment and the amortization will be. The first thing to enter is the interest rate, then the amount, the term or the monthly fee.

Studies that can be financed

Funding can be used to cover the expenses of :

  • University courses : it is usually requested to pay for a course or the entire degree in a private or public university, either for tuition or other expenses such as housing, maintenance or study material.
  • Doctorates, Masters, Postgraduates : because they are very expensive, some people find it difficult to continue specializing in their studies for their professional projection. To this end, there are entities that provide considerable sums of money at an interest rate that is usually below a consumer loan.
  • Stays abroad : although it is possible to enjoy scholarships, the money is not always enough, since it is not only to pay the tuition of the educational center or the foreign university, it is also necessary to cover day-to-day expenses such as residence and foods.
  • Seminars or language courses : these are other types of studies that, although not necessarily university, need to be financed, but in order to access them it is necessary to provide proof that they are going to start studies to the financial institution.

Is academic performance necessary to grant a college loan?

It is not essential to have a good academic record, but it is of great help in granting a loan that you want to use to pay for a course since it gives the financial institution a guarantee that, being a good student, it implies seriousness.

On the other hand, there are also entities that offer, for example, interest discounts to students who have passed all the subjects from the previous year.

Differences between a loan and a scholarship

Although the objective is to pay for studies, loans and scholarships have characteristics that differentiate them, for example:

  • To access scholarships you need good grades or maintain an average, unlike loans, where good grades help to obtain interest reductions, but do not necessarily have to have them.
  • In loans, the money must be returned to the entity that granted it, on the other hand, the same does not happen with the scholarships, as long as the agreed requirements are met, such as completing the quarter or course for which it was granted .

Financing studies is an investment in the future

Training at the university level has always been an added value to the curriculum of each worker and specialization is something highly valued by companies, so that resorting to a loan is within the reach of all those who do not have the necessary money. This way to ensure a good future and that sustains the future of professional success for many young people, considering that the expenses derived from this are increasingly higher.

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