Student Loans

Being accepted into university is a major milestone and accomplishment. However, academic and financial challenges are often hurdles students need to overcome. Financial obstacles shouldn’t get in the way of achieving success, though.

Many students who struggle to make ends meet during university turn to loans as a short-term solution. Shorter-duration financing can help cover tuition, room and board, everyday necessities, and course materials. Through Quidable you may be connected to a lender offering loans for students.

Ready to Get Started? Apply for Up to £5,000

Apply Now

How To Get a Loan for Students?

For many students, it will likely be their first time applying for a loan. When applying for a loan, the direct lender will require personal and financial information from the student. Once the information is submitted, the lender will run a credit check to determine whether the student applicant qualifies.

If approved, the lender will require the student borrower to sign a loan agreement, which includes information about total cost, repayments, and penalties. Especially as a new borrower, it is important to thoroughly read the agreement before signing any paperwork. This ensures you are fully aware of your responsibility in repaying the loan and any associated consequences of default.

Requirements

Like other loans, online loans have some basic application requirements that must be met:

You must be at least 18 years of age

You must be a resident of the UK

You must present legal proof of steady monthly income

You must provide a current bank account

How Can Online Loans Help Students?

Loans for university students can help alleviate some financial stressors. As noted above, students can decide to take out an online loan for cash access that can help them overcome a monetary shortage they might be facing. These cash advances can be ideal for several financial situations, including the following:

Housing

Finding the proper housing during university can be a challenge, and most students opt to live with roommates to help ease the cost. While this can be a suitable solution, there are some instances where you may still find yourself short of cash for rent. With online loans, you can finance small housing or rent expenses that crop up between salary dates to avoid late fees.

Tuition

It is undeniable that university degrees are not always cheap, and tuition costs can be a burden that can stretch you financially thin. With online loans, you can receive quick cash to cover smaller enrollment fees.

Course Material

University courses often require additional materials, such as books, that can be costly to students. This can put a dent in your savings and can deplete any cash padding that you might have. Online loans can act as a cash source to help you purchase the necessary materials to succeed.

Transportation

Some students opt to commute to their universities from home, while others are able to stay on campus throughout their academic endeavours. Whatever the case may be, it is usually necessary to allocate a certain amount of your monthly expense towards your transportation needs. This is an added expense that can prove difficult for students who may be living paycheque to paycheque. However, with online loans, you can finance such immediate needs.

Groceries

Dedicating time and effort to regulating your money spending and managing your grocery shopping can be a challenge for university students. Students may find themselves short on cash when it comes to purchasing groceries and other necessities. Online loans can mitigate such cash shortages.

Bills

Most university students who live with flatmates share the cost of rent and bills. Nevertheless, some students may find themselves struggling to make ends meet for electrical, water, gas, and Internet bills. Short-term loans can help you avoid costly late payment fees or shut-offs.

Bad-Credit Student Loans

Banks generally tend to reject bad credit score holders, considering them a liability upon their lending systems. More so, banks typically refuse loan requests from applicants who do not have a credit score at all. This may be the case for college students.

While it may be common to find companies that promote online loan direct lenders with no credit check, such advertisements cannot be reliable as all lenders must perform a credit check in order to make an approval or rejection decision. Lenders will also take other factors into consideration, such as income, while assessing your loan application.

Advantages

Students may find online loans appealing for a number of reasons. These can include:

Convenience and Flexibility

Students who rely on public transit may not have the ability to search for financing from multiple brick-and-mortar lenders. Instead, student applicants can apply online with a direct lender. Online applicants offer more accessibility and are quick to complete.

Additionally, students with damaged or no credit may be able to find financing through a loan direct lender. These lenders may consider income and credit scores when determining eligibility.

Speed

With demanding work and course schedules, students are likely looking for a hassle-free and quick way to receive short-term financial assistance. Most online applications can be completed in a few minutes with quick responses. Additionally, if approved, students may receive their cash in as little as one business day.

No Collateral

Often students don’t have the means to put up a home or car as collateral to secure a loan. Loans may be an alternative because they are short-term unsecured loans that don’t require any collateral.

Disadvantages

Despite the appeal of loans, students also need to fully consider the cons of these financial products.

High-interest Rates

Although loans are a source of quick funding, they often come with high-interest rates. The rate will be determined based on the student’s financial and credit eligibility. Although lenders try to offer competitive rates, interest is typically very high. As such, it can be harder to pay off loans with high interest.

Credit Impact

In the event of a missed payment or default, the student’s credit score can significantly drop. If you already have damaged credit, this can make it more difficult to improve it. Conversely, if you don’t have credit, a negative mark can start you off on the wrong foot.

Increased Debt and Penalties

Some students may find themselves taking out multiple loans after another. This can lead to a cycle of debt that is very difficult to recover from. Therefore, it is advised that students only resort to loans once they have exhausted all other alternatives.

Also, many loan lenders will charge penalties and late fees for missed payments and defaults. This can make it more difficult to repay the loan, especially if students are already having difficulty making payments.

How Much Would You Like to Borrow?

A Few Tips for New Borrowers

While short-term loans for students might seem like the optimal solution for an immediate expense, there are a few tips to keep in mind.

You must always read your loan terms and conditions carefully.

Online direct lenders typically provide their customers with the loan terms and conditions upfront to avoid surprises. Therefore, make sure you fully understand your loan responsibilities and repayment terms.

Keep in contact with your online direct lender.

Beginning a loan process can be overwhelming; it is important to keep in communication with your direct lender regarding any questions you might have.

Bottom Line

Being a student can be challenging both academically and financially. Maintaining an optimal scholastic schedule can be overwhelming, and you may find yourself facing unexpected expenses that you did not account for, as well. Student loans can help financial strains related to rent, tuition, groceries, or course materials.

A student loan may help provide a smoother education experience by easing your immediate financial burdens.

FAQ

Do I Need to Be Employed Full-time?

No, student applicants can apply for loans even if they work part-time. Many lenders recognize that university students juggle school and work. Therefore, they may be willing to lend to applicants who have a side gig.

However, unemployed students will likely not be eligible for loans. Lenders require proof of income to ensure borrowers can repay the loan.

What if I Miss a Payment?

Student borrowers should try their best to avoid missed payments and defaults. If this does occur, the lender can charge you additional penalties and fees. Moreover, your credit may drop.

If you suspect that you will miss a payment, contact your lender immediately. The financer may be willing to offer an extension.

How Much Can Students Borrow?

The amount students are eligible to borrow depends on their credit score and income, as well as the lender. Lenders may offer between £50 and £5,000 for student loans. However, when determining how much to offer, lenders will take into consideration the applicant’s income and credit score. As a result, the offer will likely be comparable to the borrower’s income to ensure they can comfortably make payments.

How Will My Credit Be Considered?

No credit check student loans sound too good to be true because they are. All lenders conduct a thorough background check to ensure applicants are eligible and able to make payments. If students are worried about their credit check because they have a poor score or no credit, there may be other options.

Some lenders may consider income alongside credit when determining eligibility. As such, some students may still qualify with damaged or no credit.

How Long Until I Receive the Funds?

Many loan lenders in the UK offer quick, direct deposits. Typically, if a student applicant is approved, they may receive the funds in as little as one business day. However, it is always best to check processing times as some lenders may take longer to disburse funds.

Additionally, keep in mind that your bank’s processing time will also affect how quickly you receive the money.

Ready to Get Started? Apply for Up to £5,000

Apply Now