There are specific things like community-based student loans, which many may not be aware of. Basically, some locations have groups which take donations to lend students cash, a lot like crowd funding.
A crowd-sourcing opportunity
Students who are going to college and need some cash to do it could be able to get a community-based student loan depending on the area they go, according to a Daily Finance article. These community organizations are showing up all over the country, and MarketWatch has much of the details.
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 new idea since the Canton Student Loan Organization in Ohio has existed since 1922. The organization has given over 5,000 students more than $27 million in loans.
The loans are repaid with interest just like other crowd funded personal loans websites such as Prosper.
Between federal and private
From the info accessible on MarketWatch, Daily Finance and Bankrate, community-based student loans, or rather student loans from community student or university aid organizations, fit somewhere between federal student loans and private loans cost-wise.
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 Consumer Financial Protection Bureau grievances made about school loans.
Depending on the community-based student loan organization, interest could be anywhere from nothing to eight percent, according to MarketWatch. The catch is that the loans usually require an enormous piece of collateral, such as a parent's home, and have much harsher terms. Federal Stafford loans have the very best rates and Private loan rates could be as high as 16 percent.
Just for tuition and books
The idea of the community-based school loans is to help students cover tuition and books. They are not enough to help pay for all other college expenditures, according to Bankrate. The federal government has a lot more cash than small organizations.
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 usually pretty good. Make sure parents and students are both doing the research to figure out what is best.
A crowd-sourcing opportunity
Students who are going to college and need some cash to do it could be able to get a community-based student loan depending on the area they go, according to a Daily Finance article. These community organizations are showing up all over the country, and MarketWatch has much of the details.
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 new idea since the Canton Student Loan Organization in Ohio has existed since 1922. The organization has given over 5,000 students more than $27 million in loans.
The loans are repaid with interest just like other crowd funded personal loans websites such as Prosper.
Between federal and private
From the info accessible on MarketWatch, Daily Finance and Bankrate, community-based student loans, or rather student loans from community student or university aid organizations, fit somewhere between federal student loans and private loans cost-wise.
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 Consumer Financial Protection Bureau grievances made about school loans.
Depending on the community-based student loan organization, interest could be anywhere from nothing to eight percent, according to MarketWatch. The catch is that the loans usually require an enormous piece of collateral, such as a parent's home, and have much harsher terms. Federal Stafford loans have the very best rates and Private loan rates could be as high as 16 percent.
Just for tuition and books
The idea of the community-based school loans is to help students cover tuition and books. They are not enough to help pay for all other college expenditures, according to Bankrate. The federal government has a lot more cash than small organizations.
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 usually pretty good. Make sure parents and students are both doing the research to figure out what is best.
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