Tuesday, November 21st, 2017

An Introduction to Student Loans for the Unemployed

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Student loan for the unemployedThe cost of higher education is on the rise these days; therefore those students who are studying full time can’t supplement their income with a salaried job. Therefore, they take the alternative of student loans for the unemployed. These loans are given at a very low interest and can be used to supplement scholarships, grants and even one’s personal saving. The amount that the students opt for is the one that they know that they will be able to payback once they have completed their education.

Given this general description of the loan there are further four types of student loans for unemployed and they depend on their sources.

1-     The first type is the Government Student Loan that is issued by the government’s department of education directly to the students. The interest rate is very low and the loan needs to be paid once the education period is over. The amount depends on the lender.

2-     Another category is the parent student loan. These are for the dependant students and the loan is returned by the parents after the child’s education is completed.

3-     Next comes the private student loans. These are given to students by independent organizations like lenders or the banks. The interest rate is higher compared to the government’s rate. Here again the loan is returned once the education is complete.

4-     The other kinds of student loans for the unemployed come under the heading of other loans, which include home equity loan which is tax exempted and the likes of it.

The reason, for the popularity of these student loans id increasing because the grants and scholarships that are offered are far and few in number so not many students can benefit from it.

More information regarding the student loans for the unemployed:

The private loans are the best options for some of the students. They include all the main features of a government loan and the added benefit is that they have a higher limit and also give grace periods for the return of the loan after one’s education is completed.

The interest rates are quite low but still in comparison they are higher than the government’s rate but still they are much lower than other private loan options. Also, there are no processing fees attached to it or any other kind of extra similar fees.

Credit history of the student or the co-signer plays a major role in determining the grant of the student loan for the unemployed. The co-signer becomes important for the international students. The money is directly paid to the institution covering the fees and the remaining amount is given to the student for covering the living expenses.

The issue of student loan consolidation

The student loan consolidation works just like any other loan consolidation. The benefit is that debts are covered in this system. The students can apply for either a secured or an unsecured loan. This basically depends on the amount of the loan. The unsecured loan is for small amount up to $25,000 while the secured loan can be for up to $75,000. The secured loan can be repaid between ten to thirty years and the interest is lower compared to the unsecured loan.

Benefits of taking the consolidation plan for the student loan for the unemployed:

1-     You only need to make a single payment per month.

2-     The overall amount is less than the first installment.

3-     There are no processing fees.

4-     The rate of consolidation is lower than the previous rates.

There are online debit electronic options as well, which make sure that students don’t miss their payments.

These student loans are available online and therefore, it is much easier to shop around and get the best deal that suits them.

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