If You Can not Get a Traditional Student Loan
January 16, 2019
One of the concerns of many non-traditional students is funding
If you have been studying or working as an adult, your income may disqualify you from many grants and student finance for traditional students. In most cases you may also have to rent a mortgage or apartment, car loans and spending typical for life.
For some potential students, the opposite is true. Due to the current economic situation, you may not be able to get some kind of financing due to bankruptcy, job loss or other hits against your credit rating. There are options. There are scholarships and grants for non-traditional students. Most colleges have a kind of scholarship program. Sit down with your admissions officer and explain your personal financial situation.
You will know about grants / scholarships funded by your college that may not be widely publicized. Your next stop is your financial assistance officer. Since their job is to help students finance their education, they will also provide you with all available options. Sit down on your own and consider what makes you unique as a student. Are you a minority? A single parent? Did you leave an abusive situation? In connection with someone in a military industry? The possibilities are endless.
Do an Internet search on this specific search term: (eg, scholarships for single Latin women). However, pay attention to ALL scholarships, grants or loans that you must pay in advance. Carefully examine any organization that is eligible for student loan finance if it requires upfront investment from your side. Legitimate scholarships and grants require no financial investment from you. If you work, talk to your HR representative about tuition reimbursement. In some cases, companies only reimburse you for certain types of job-related courses. Therefore, make sure that your courses are approved in advance.
Do you belong to any organization – professional or otherwise? Contact them and ask if scholarships, scholarships or loans are available for non-traditional students. Many professional organizations provide educational funding, but they are poorly advertised and not known. Some new networks are emerging to provide access to affordable funding for universities through credit unions and other banking institutions. Do an Internet search for “Education Finance Networks” .
Last, peer-to-peer funding is becoming increasingly popular for educational loans. Some educational funding networks offer peer-to-peer funding, but are typically under-utilized in the non-traditional sector of students. Peer-to-peer funding allows students to receive microcredit funding from family, friends and other contacts. Basically, you use a peer-to-peer financier to connect to your social network to let them know you need help paying for the college.
The peer-to-peer financier formalizes the credit relationship – just like a “normal” student loan
They verify that the borrower is enrolled and goes to school, and then they spend the money directly at the school. They also manage the repayment of loans after the student has finished school. For example, suppose you need $ 10,000 for the school year and can not get it from traditional credit sources. A peer-to-peer funding network will get in touch with your school, check funding needs, and communicate that need to your network of contacts. In our example, 5 friends and family members are choosing to invest $ 2000.
They sign credit papers with the current Stafford loan interest rate. The lenders send the money to your peer-to-peer finance company, which sends the money to your college grant. When you graduate, you make monthly payments, which are then paid back to the lenders. This is a twist on the micro-loan concept. In today’s economy with investment options so shaky, this is a great opportunity for your lenders to invest their money in a proven unit.