As problems with student loan availability arise, many undergraduates are starting to wonder if they can still get a student loan for the next semester. Difficulties emerge when students are having trouble finding a student loan because of strict criteria, or because their federal provider backed out. At this economy, students shouldn’t be overly confident that they can get a student loan. There might still be a chance that they can’t.
If you’re a student who’s facing the possibility of not being able to enter college next semester, here are a few solutions you can find – at the last minute.
- Head to your college’s financial aid office and ask them about the availability of federal student loans. One loan you can consider is the Stafford student loan. Stafford loans offer a low interest rate of 4.5%, and you can have up to $20,500, depending on your degree status and number of years in school. Requirements include being a US Citizen or permanent resident, you must have a financial need, and you must be enrolled to the school. The best thing about Stafford loans is that they don’t have a credit requirement.
- Ask if your school participates in the program that allows students to get a direct Stafford loan. If they have it in their program, ask if you’re eligible. Having a direct loan offers better repayment options for students.
- Sometimes your Stafford loan amount isn’t enough to cover your existing need. If this is the case, you can ask your college if they offer Perkins loans as well. Interest rates for Perkins loans is at 5%. Perkins loans will also need to assess if the student has a financial need.
- PLUS loans are also available if in case you don’t qualify for a Perkins loan. The advantage of PLUS loans is that they have a higher limit than Stafford loans, allowing coverage for most, if not all, of the needs for the semester. The downside is, PLUS loans are put in the parent’s name, not in the student. If parents are not eager to have a big amount of debt in their name, students can opt to split repayment costs and have it put in writing.
- When parent’s credit isn’t good enough to qualify for a PLUS loan, your college aid administrator just might be able to grant you an additional Stafford loan to cover the amount you lack.
Finally, if you’ve followed all the steps enumerated above but you still can’t seem to make ends meet, it’s time to recheck your college plan. Try to see where you can cut expenses and if you can work more hours to gain extra cash. Save with the small stuff and you might just be able to pull through.
