Learning money management early is a necessity these days. Whether you are a University student or a High School learner, knowing about your credit options is something you must learn early. We all talk about availing the best education loan for desired college course. However we often forget to teach the young minds about managing their funds.
Despite a popular opinion against repaying student loans on time, we must teach our kids to manage their loans aptly. We must let them learn how to fix the cash gaps during the Graduation period. We must make an additional effort and teach them about private sources to avail short term loans for students. All this is required to help them learn how to build their credit profile.
Basics of student loans
Most students apply for term loans to cover major expenses in the University. Besides, tuition fees they avail a big loan to cover expenses related to accommodation, food, travel, books and study materials. The fund is generally not released as a lump sum amount but in the beginning of each module/ session/ year.
To manage loan amount smartly you would need to allocate funds for each of these expenses. Herein every student learns to manage the funds naturally. However many a times a student may fall short of the funds before the commencement of next allotment. Herein being a university student with legitimate student loan papers, you can draw short term loans for a few weeks.
Short term student loans
Availing short term additional loan between your university semester is not going to be a hassle as long as you decide to manage the loan repayment. Being a novice, it is advisable to consult a professional loan advisor. By contacting a loan broker, you could be protected against loan sharks. You would not need to bear stress of contacting several lenders.
Brokers would work as intermediaries between lenders and borrowers. They do not charge any upfront fees to search the available loans according to your credit needs. You can simply visit a loan broker’s website from your university campus and fill a 30 second form. As you share your loan requirement, the broker would contact you and share the available deals. You can compare and choose the one according to your needs. Most brokers help borrowers identify their needs if they have any doubts.
While you are exempted to repay student loans till you earn annual income of £21,000 per year in year England or Wales and over £17,775 a year in Northern Ireland and Scotland, the loan repayment of small loans in between the tenure should be instant. You need to ensure timely repayment of short term student loan. By repaying your small loan on time, you would begin building your credit score early in your life. This indeed would keep you credit ready quite early in your career.
Before availing the additional loan you should thus ensure a reliable back up to repay the loan. A broker can also guide you how to channelise repayment via your upcoming disbursement.