Tuesday, 20 October 2020

5 Best Alternatives to Education Loan You Can Get

By on 10:30
Alternatives to Education Loan
Students face a lot of problems when it comes to financing their education. These days, due to cut-throat competition as well as rough economic times, it has become very tough to get loans on easy terms. Everyone has heard stories about hardships banks and other lending companies create for students when they are pursuing college and university admissions. Whether it is the student or the parent, they go through a lot of stress and frustration when trying to secure loans.

Financing higher education causes students to get into a lot of debt and thrown the economy into a lot of imbalance. The good news is that due to too many students needing financial assistance and banks not responding to them as they should, other much better alternatives are here to help them and provide them a chance to continue with their academic journey without worrying about loans. This article by a dissertation writing service is a guide for students as it provides them insight regarding the 5 best alternatives to educational loans.

SoFi:
It has become one of the most popular start-ups in the past few years due to its struggle to simplify the loan process and make money accessible to deserving people. Borrowers can seek personal as well as mortgages, but they mainly deal with student loan space. SoFi offers federal and private student loans refinance parent loans as well as parent PLUS loan refinancing and MBA loans. The process of applying for a loan has been made easy; the students need to complete the application through their website. Students can look forward to fixed refinancing rates start at 3.5% and a 2.14% APR for variable rate loans. It is one of the best alternatives for educational loans for students, and the website says that it has managed to save student loan members an average of $18,936.


Pave:
This does not exactly offer a student loan but affordable credits to individuals based on more than just their credit scores. College and university students can qualify for financing options even when the banks and other lending companies refuse them. The good thing about Pave is that students can get better rates as compared to use credit cards. It takes into account the individual's credit score, history, and other factors, including future earning potential, to recognize how financially responsible the person is, and this makes them provide the lowest possible rate. Due to the flexibility offered in securing the loan, many students can secure loans that they otherwise could not be able to due to rigid financing rules.

WeFinance:
This is the chance for students to make use of the crowdfunding option and advanced technology. Students can secure the financing their need on the rates and terms they set. All they need to do is to create a profile page and tell their story to people and their need for funds. Potential lenders browse their profiles to determine whether they want to invest in some or all of their goals. Once their target funding goal is met, either through one or multiple lenders, the campaign is closed, and a simple contract is created, the loan funds are sent to the students' account. This is an excellent source of funding for students, and they can either refinance an existing student loan or access additional funds that are otherwise not available. WeFinance does not charge any fee for receiving or applying for a loan.


13th Avenue Funding:
It is a pilot program that was started at Allen Hancock College. This program provides students a chance to borrow funds to pay for their education and pay the money back on a fixed percentage of students’ income, assuming they earn at least $18,000 annually. The financing is all local and community based and offers lots of flexibility to the students; they are only required to pay if they are employed. It is a great alternative to seeking traditional loans, and it can be initiated in other parts of the community too to help the deserving students.

Purdue University “Back a Boiler” Program:
It is an innovative college financing program and started on a college campus. It is quite similar to the 13th Avenue Funding model and offers junior and senior students the option to get funds in exchange for signing an income share agreement (ISA). It would not be wrong to say that the university is investing in the future success of its students. With these best alternatives, students no longer have to worry about running after banks or other credit companies. They have to find the right one to suit their financing needs most effectively.

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