At a point in one’s life as a student, money is needed, at times you have it in excess sometimes you don’t have it and here is where personal loans for students comes in.
A personal loan is money you borrow for just about any particular reason which usually includes student loans, medical bills, vacation and other relevant reasons best known to you.
Sometimes, a lot of personal loans are not stable as they are mostly not backed up with collateral. Personal loans are to be paid back which includes an interest in monthly or yearly instalments over the term of payments.
As a student having money issues, you should consider applying for a personal loan, where you can pay back easily without getting into a huge debt.
Generally, private loans must be paid back over a set term, usually two to five years.
Personal loans can be applied by just anyone because they can be easily paid back, so it is advisable to check out the terms of these loans before they apply for them.
This overview will give you a clear view of everything you need to know about the best personal loans for students and their requirements.
What is a Personal Loan?
From the introduction above, we said, a personal loan is money you borrow for just about any particular reason which usually includes student loans, medical bills, vacation and other relevant reasons best known to you.
While personal loans, can’t be used for education costs like tuition, they usually help pay for other important expenses.
In most cases, private loans usually have higher interest rates than student loans, and this makes private loans a bit more expensive than student loans.
But one of its perks is that you get to pay it back quickly because you’ll have to start making payments as soon as the loan is disbursed.
As of 2019, the average APR on a personal loan is 9.41% but it can range from 6% to 36% depending on your creditworthiness, including an examination of your income, debts, and credit score.
Personal loans come in various types, and banks and other financial institutions make private loans to students.
When you apply for private loans, the lender will want to see proof you can repay them, usually in the form of a good credit score.
A co-signer can help you qualify; that person will be responsible for the loan if you can’t pay it back.
If you’re an MBA student, check out: Best Student Loans for MBA (Business Students) in 2022
Types of Personal Loans
Here are a few lists of types of personal loans;
Bar exam loans
Bar exam loans are types of personal loans that covers expenses like examination application fees, book expenses and it has a long term of 1-20 years with higher interest rates than most.
Boot-camp loans
Boot-camp loans are the types of personal loans for coding boot-camp and they have lower interest rates.
International student loans
These type of loans is generally for international students and they usually require a co-signer for the applicant.
Institutional loans
Institutional loans are types of personal loans offered directly by a college.
What is a Student Loan?
A student loan is a type of loan created to help a student cover their school-related expenses such as books, living expenses, tuition and other expenses. Student loans are designed to help students pay for college.
It’s often advisable to take out federal loans first since they come with federal protections, such as access to income-driven repayment plans and student loan forgiveness programs. You can then use personal student loans to cover any financial gaps left over.
Why you Need to Apply for Personal Student Loan
Personal student loans are created to help support students financially, students who are in serious need of financial help and are unable to attend college can apply for a private loan.
Most private lenders do not need your credit history to disburse a student loan, although, Student loans often have lower interest rates than private loans.
If you desire to attend a community college, check out: 15 Best Student Loans For Community College In the USA
What You Need To Know Before Applying For Personal Loans As A Student
Before applying for a personal loan, it is important to look out for the interest rate charges and be sure you can repay in time.
Check your credit scores before you apply and your eligibility in other to know if you can apply or not.
Make your research and check out for important details like APR, loan term, loan amount, fees, prepayment penalty, automatic withdrawals and other important details.
Where Can you Apply for a Personal Loan
1. You can apply for a personal loan at banks
2. Through credit unions
3. Through a referral from family or friends
4. Through secure online provider
5. Non-banking financial institutions,
How Much Can you Get in Student Loan?
Depending on the platform you make use of, you may be able to borrow up to the full cost of your college education in personal student loans, although the exact amount depends on the type of student loan you borrow.
20 Best Personal Loans for Students in 2022
Top personal loan lenders give students the room to borrow for any reason and the best lenders offer a clear and straightforward application process to students. The lenders below offer the best personal loans for students.
1. SoFi Private Student Loan
Minimum credit score: 650.
Fixed APR: 4.99-19.50%
Days to receive a loan: 2-4 Days
Loan terms: 5, 7, 10, 15 or 20 years.
Pros
a) SoFi has flexible repayment terms
b) They are quite transparent
c) A parent can transfer a loan to their child
d) No extra fees
e) They offer career planning, job search assistance and entrepreneurship support available to students
Cons
a. Loan size minimum is higher than most lenders, they don’t offer less than $5000
b. Not available in some states
c. There is a late fee of $5 late fee if your loan is 15 days past due.
Eligibility:
Applicant must be a U.S. citizen, permanent resident or have a qualifying visa (E-2, E-3, H-1B, J-1, L-1, or O-1). Non-permanent residents, DACA recipients and those without a qualifying visa need a co-signer who is a citizen or permanent resident.
2. Earnest
Variable Rates Starting at 0.99%
Fixed Rates 2.94%
Loan Amounts $1,000 up to the total cost of attendance
Loan Terms 5-15 years
Pros
a) You can decide to skip a payment every 12 months.
b) There is a nine-month grace period.
c) No extra fees.
Cons
a. There is no co-signer release.
b. Not available in all 50 states.
c. You must be enrolled in school full-time.
Eligibility:
- You must have a Social Security number.
- Must be enrolled in school full time.
- You must have no past-due balances for at least one year.
- Must be pursuing a bachelor’s or graduate degree.
3. Sallie Mae
APR: 3.50-12.60%
Variable APR: 1.13-11.23%
Minimum Credit Score: 600
Mid-600’s
A credit score of approved borrowers or co-signers: 749.
Loan amounts: $1,000 up to 100% of the school-certified cost of attendance.
Interest rates, fees and terms
Loan terms: 5 to 20 years.
Pros
a. Non-U.S. citizens, including DACA students, can apply with a U.S. co-signer.
b. They provide loans to part-time students.
c. Students can access online tutoring and free credit score tracking.
Cons
a. There is a Late fee of $5 late fee if your loan is 15 days past due.
4. Upstart
APR: 6.12% – 35.99%1
Loan Amounts: $1,000 – $50,0002
Repayment Terms: 36 or 60 months1
A minimum credit score of 580
Cons
A. There is a Late fee of $5 late fee if your loan is 15 days past due.
Eligibility:
No bankruptcies or public records on your credit report
5. Ascent Co-signed Student Loan:
APR: 3.28-11.26%
Min. Credit Score: 540
Fixed Rates: 3.28% to 11.26%
Variable Rates 1.47% to 9.05%
Loan Amount:$2,001 up to $200,000
Loan Terms:5-15 years
Pros
a) No need for a cosigner and with no credit history needed
Cons
a. Interest rates may be higher than other options
Eligibility:
You must be a U.S. citizen, permanent resident, or have DACA status, must be enrolled at an eligible institution full-time or half-time.
6. BoroCash
APR: 15.99% – 19.90%
Loan Amounts: $50 – $2,000
Repayment Terms: 1 – 12 months
Pros
a) International students are eligible
b) Low maximum APR
Cons
a. Available in only a few states
b. There is a risk of over-borrowing
Eligibility:
- You must be enrolled in a U.S. college or university or have had recently graduated
- Must be over 18 years old,
- Must be a U.S. citizen, Green Card holder, or A5, C8, F1/OPT, G, H1B, J1, L1, O1 Visa holder
7. Discover Undergraduate and Graduate Student Loans
APR: 5.99-24.99%
Days to receive loan: 1 days
Loan amount: $2,500-$35,000
Loan terms: 15 years undergraduate students; 20 years graduate students.
Pros
a) Quick funding
b) No original fees
c) Among the best for payment flexibility.
d) International students are eligible
Cons
a. There is a late penalty
b. No credit score check to see what rate you’ll get
Eligibility:
- Must be a U.S. citizen or permanent resident.
- International students are eligible if they apply with a co-signer who is a U.S. citizen or permanent resident.
8. CommonBond Private Student Loan
Min. Credit Score: 660
APR: 3.99-10.99%
Variable APR 3.80%- 9.36%
Loan term: 5 to 15 years
Loan amount: $2,000- $500,000
Pros
a) Forbearance of 24 months is longer than many lenders offer.
b) Co-signers are acceptable
Cons
a. Loans aren’t available in all states
b. Co-signers are required
c. There is a late payment penalty.
Eligibility:
- Must have attended a school as a student.
- Must be a U.S citizen or possess a non-conditional green card.
9. Custom Choice Loan
APR: 3.20-10.77%
Variable APR: 1.03%-9.67%
Min. Credit Score: 660
loan terms: 7 to 15 years
Loan amounts: $1,000 up to 100% of the school-certified cost of attendance minus other aid, not to exceed $99,000.
Pros
No prepayment penalty
Low minimum loan interest rate
No late fees.
There is a graduation discount.
Cons
Loans aren’t available in all the states
Loans not available to borrowers international students with student pass
Eligibility:
Must be a U.S. citizen or permanent resident.
10. Education Loan Finance Private Student Loan
Min. Credit Score: 680
APR: 3.20-11.99%
Loan terms: 5 to 20 years.
Loan amounts: $15,000 up to your total outstanding loan balance.
Pros
a) You will be assigned to a student loan adviser.
b) Borrower can refinance parent PLUS loans in your name.
c) Available to borrowers in all 50 states
Cons
a. No co-signer release available.
b. There is a late payment fee of Late fees of 5%. Payment postponement isn’t available for borrowers who return to school.
Eligibility:
- Must be a U.S. citizen or permanent resident.
- Must have at least a bachelor’s degree.
11. Funding U Private Student Loan
Min. Credit Score: None
APR: 7.49-12.99%
Loan terms: 10 years.
Loan amounts: $3,000 up to $10,000.
Pros
a) Loans aren’t based on credit scores
b) No need for a co-signer or credit history to get a loan.
c) No late fees
d) One of the best for payment flexibility.
Cons
a. Loans aren’t available in 19 states.
b. Low maximum loan amount
c. Payment is required while in school and during the grace period.
Eligibility:
Must be a U.S. citizen, permanent resident or DACA recipient with a work-eligible Social Security number.
12. LendKey Private Student Loan
Min. Credit Score: 660
APR: 4.25-12.59%
Loan terms: 5 to 20 years.
Loan amounts: $5,000 to $125,000 for undergraduate degrees; up to $250,000 for graduate degrees; and up to $300,000 for medical, dental or veterinary degrees.
Pros
Co-signing options available
No original fees
Forbearance of 18 months for 15- and 20-year loan terms for the borrower.
Cons
Not available in all states
No payment postponement is available.
Eligibility:
- Must be a U.S. citizen or permanent resident.
- Must be a graduate.
- Have at least an associate degree.
13. MPOWER Private Student Loan
APR: 7.52-14.98%
Loan terms: 10 years.
Loan amounts: $2,001 to $100,000
Pros
a) Non-co-signed student loans for international and DACA students.
b) No credit check
c) Available to international students
d) Borrowers are assigned a dedicated student loan adviser.
e) Interest rate discounts available
Cons
a. High-interest rate
b. Origination fees required
c. Low loan maximum
Eligibility:
International students must be from one of the 180 countries MPOWER works with. You must be enrolled half-time or more
14. College Ave Student Loan
Minimum Credit Score: Mid-600s
Fixed APR: 4.49-11.98%
Variable APR: 0.94%-11.98
Loan term: 5 to 15 years
Loan amounts: $1,000 up to cost of attendance.
Pros
a) No origination fees
b) flexible repayment options
c) Six-month grace period extension is available.
Cons
a. Before you can request a co-signer release, You must be at least halfway through your repayment term.
b. Charges late fees
Eligibility:
International students are eligible if they apply with a co-signer who is a U.S. citizen or permanent resident.
15. ISL Private Student Loan
Min. Credit Score: 670
Fixed APR: 4.60-7.40%
Loan amount: $5,000 to $300,000
Loan term: 5 to 20 years
Pros
a) As a borrower you can refinance without a degree.
b) You can refinance while in school or during a medical residency.
c) No origination fees
d) No payment penalty
Cons
a. interest rate varies by refinancing products
Eligibility:
Must be a U.S. citizen or permanent resident
16. Ally
Min. Credit Score:
Fixed APR: 0.00%-26.99%
Loan amount:$250-$65,000
Pros
Repayment terms are up to 180 months, which is better than most
Low credit check requirement
Low rates
Cons
No direct access to ALLY
Eligibility:
Must be a U.S. citizen or permanent resident.
17. LightStream
Min. Credit Score: 670
Fixed APR: 2.49-20.49%
Days to receive a loan: 0 days
Loan amount: $5,000 to $100,000
Loan term: 5 to 20 years
Pros
a) No origination fees
b) Fast disbursement
Cons
a. Credit check is one of their requirements
b. You cannot borrow less than $5,000
Eligibility:
Must be a U.S. citizen or permanent resident.
18. Avant
Minimum Credit Score: 580
Fixed APR: 9.95-35.99%
Days to receive a loan: 1 day
Loan amount: $2,000 to $35,000
Loan term: 5 to 20 years
Pros
a) No prepayment penalty
b) Various range of loan amount
Cons
a. No co-signer
b. High APR
c. Not available in all states
d. Late penalty fee available
Eligibility:
Must be a U.S. citizen or permanent resident.
19. LendingClub Personal Loan
Minimum Credit Score: 620
Fixed APR: 7.04-35.89%
Days to receive a loan: 2 days
Loan amount: $1,000 to $40,000
Loan term: 5 to 20 years
Pros
a) They disburse loan funds within 48 hours after approval
b) co-cosigner allowed
c) Joint application available
Cons
a. There is an origination fee
b. Low loan amounts
c. Limited loan term availability
Eligibility:
- Must be a U.S. citizen or permanent resident.
- Must be 18+
20. Marcus
Minimum Credit Score: 660
Fixed APR: 6.99.19.99%
Days to receive a loan: 1 day
Loan amount: $3,500 to $40,000
Loan term: 5 to 20 years
Pros
a) No charges on loan, that is no extra fees
b) Discounts are available
Cons
a. Funding can be slow
b. High credit score
c. Low maximum loan amount
Eligibility:
- Must be a U.S. citizen or permanent resident.
- Must be 18+
FAQs
Yes, banks offer personal loans to students.
Personal loans for students is easy to apply for, as long as you meet the eligibility status
Students can apply directly on the official website of the lenders.
Yes, you can apply for a personal loan.
Yes, personal loans are secure but beware of over-borrowing.
Conclusion
Generally, loan makes students feel safe, the fact that you get to borrow funds for important stuff can be scary at first. However, going through the right procedure will enable fast disbursement which will enable You to use the money faster. I hope this overview gives you the answers to your questions.
References
- Credible: credible.com/blog/student-loans/personal-loans-for-students/
- Nerd: nerdwallet.com/best/loans/student-loans/private-student-loans?PSLrelated
- Lendedu: lendedu.com/blog/personal-loans-for-students/
- Investopedia: investopedia.com/best-personal-loans
- Investopedia.com/best-personal-loans
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