Another Option For College Students Is Community Dependent School Loans
| 06:35:00 |
There are specific things like community-based student loans, which many might not be conscious of. Basically, some locations have groups which take donations to lend students money, a lot like crowd funding.
A crowd-sourcing opportunity
A recent Daily Finance article discussed a growing number of community organizations springing up around the country, offering community-based student loans that are being made to students heading off to college, albeit without a ton of specifics. However, the MarketWatch article Daily Finance quoted did have a few more specifics.
The donors get solicited for funds with "crowd sourcing," and the program is very comparable to that. Loans are given with the money people put to the communal pot.
MarketWatch pointed out that it is not even a brand new idea since the Canton Student Loan Organization in Ohio has been around since 1922. The organization has given over 5,000 students more than $27 million in loans.
Prosper is a crowd funded personal loans site. Just like those loans, these ones have interest and have to be repaid by the students.
Between public and private
The community-based school loans fit between federal student loans and private loans when it comes to cost, according to Daily Finance, Bankrate and MarketWatch.
The cost of going to a community bank or credit union for a private loan is higher than going to Sallie Mae normally. Sallie Mae accounted for 46 percent of all CFPB grievances made about school loans.
Private loans could be as high as 16 percent interest, and federal Stafford loans almost always have the very best rates. Community-based loans generally are much harsher and require enormous forms of collateral, according to MarketWatch, but interest can range from no interest at all to around 8 percent.
Spending money on the rest
The small organizations do not have a lot of cash on them, which is why the loans are usually pretty small. It is enough to cover tuition and books, but generally it is not much more than that, according to Bankrate.
You might want to go to a credit union for their loan consolidation programs, and there are also programs comparable to these ones that offer university financing, according to CBS. The terms are generally pretty good. Make sure parents and students are both doing the research to determine what is best.
A crowd-sourcing opportunity
A recent Daily Finance article discussed a growing number of community organizations springing up around the country, offering community-based student loans that are being made to students heading off to college, albeit without a ton of specifics. However, the MarketWatch article Daily Finance quoted did have a few more specifics.
The donors get solicited for funds with "crowd sourcing," and the program is very comparable to that. Loans are given with the money people put to the communal pot.
MarketWatch pointed out that it is not even a brand new idea since the Canton Student Loan Organization in Ohio has been around since 1922. The organization has given over 5,000 students more than $27 million in loans.
Prosper is a crowd funded personal loans site. Just like those loans, these ones have interest and have to be repaid by the students.
Between public and private
The community-based school loans fit between federal student loans and private loans when it comes to cost, according to Daily Finance, Bankrate and MarketWatch.
The cost of going to a community bank or credit union for a private loan is higher than going to Sallie Mae normally. Sallie Mae accounted for 46 percent of all CFPB grievances made about school loans.
Private loans could be as high as 16 percent interest, and federal Stafford loans almost always have the very best rates. Community-based loans generally are much harsher and require enormous forms of collateral, according to MarketWatch, but interest can range from no interest at all to around 8 percent.
Spending money on the rest
The small organizations do not have a lot of cash on them, which is why the loans are usually pretty small. It is enough to cover tuition and books, but generally it is not much more than that, according to Bankrate.
You might want to go to a credit union for their loan consolidation programs, and there are also programs comparable to these ones that offer university financing, according to CBS. The terms are generally pretty good. Make sure parents and students are both doing the research to determine what is best.
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