There are such things as community-based school loans, which many may not be conscious of. Essentially, some areas have groups which take donations to give students cash, a lot like crowd funding.
Getting loans from the public
Students who are likely to university and need some cash to do it can be able to get a community-based student loan depending on the area they go, according to a Daily Finance article. These community associations are showing up all over the country, and MarketWatch has much of the specifics.
It is just like the recent "crowd sourcing" that has been going on. The funds are all put into one big pot and loans are made from it.
According to MarketWatch, it isn't even brand new; one such organization, the Canton Student Loan Organization of Canton, Ohio, has been around since 1922 and has lent $27 million to more than 5,000 students.
However, just like crowd funded personal loans sites such as Lending Club or Prosper, those loans do have to be repaid with interest.
Less than public or private
Daily Finance, Bankrate and MarketWatch all made it clear that community-based school loans, on the subject of cost, are somewhere between federal student loans and private school loans.
A loan from a community association, community bank or credit union is still a private loan, but it's usually lower-cost than going to Sallie Mae, which according to CBS accounted for 46 percent of all complaints made to the Consumer Financial Protection Bureau about school loans all on their lonesome.
Private loans can be as high as 16 percent interest, and federal Stafford loans almost always have the best rates. Community-based loans typically are much harsher and require huge forms of collateral, according to MarketWatch, but interest can range from no interest at all to around 8 percent.
Get homework done
The small organizations do not have a ton of cash to them, which is why the loans are usually pretty small. It is enough to cover tuition and books, but usually it is not much more than that, according to Bankrate.
Credit unions likewise can be able to arrange some financing for university, though it might come in the form of a "personal loan for educational purposes." However, they also might lend at better terms than a private lender. A number of credit unions are also, according to CBS, offering student loan consolidation programs. Each student and/or their parents will have to do their homework on community loan organizations and credit unions in their area to get more information.
Getting loans from the public
Students who are likely to university and need some cash to do it can be able to get a community-based student loan depending on the area they go, according to a Daily Finance article. These community associations are showing up all over the country, and MarketWatch has much of the specifics.
It is just like the recent "crowd sourcing" that has been going on. The funds are all put into one big pot and loans are made from it.
According to MarketWatch, it isn't even brand new; one such organization, the Canton Student Loan Organization of Canton, Ohio, has been around since 1922 and has lent $27 million to more than 5,000 students.
However, just like crowd funded personal loans sites such as Lending Club or Prosper, those loans do have to be repaid with interest.
Less than public or private
Daily Finance, Bankrate and MarketWatch all made it clear that community-based school loans, on the subject of cost, are somewhere between federal student loans and private school loans.
A loan from a community association, community bank or credit union is still a private loan, but it's usually lower-cost than going to Sallie Mae, which according to CBS accounted for 46 percent of all complaints made to the Consumer Financial Protection Bureau about school loans all on their lonesome.
Private loans can be as high as 16 percent interest, and federal Stafford loans almost always have the best rates. Community-based loans typically are much harsher and require huge forms of collateral, according to MarketWatch, but interest can range from no interest at all to around 8 percent.
Get homework done
The small organizations do not have a ton of cash to them, which is why the loans are usually pretty small. It is enough to cover tuition and books, but usually it is not much more than that, according to Bankrate.
Credit unions likewise can be able to arrange some financing for university, though it might come in the form of a "personal loan for educational purposes." However, they also might lend at better terms than a private lender. A number of credit unions are also, according to CBS, offering student loan consolidation programs. Each student and/or their parents will have to do their homework on community loan organizations and credit unions in their area to get more information.
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