College tuition is something that just never seems to get any cheaper. For years, people have taken out loans and used federal assistance to pay for the rising cost of tuition for both bachelors and graduate degrees.
But outside the cost of tuition, living expenses can get to be a major cost for students and can often require assistance on their own, making student living expense loans a more popular choice in recent years.
Typically, a full-time student won’t be working at all, or they’ll be working a modest part time job that only brings in enough money to account for extra spending cash. Paying for housing, food and other monthly expenses can really add up and require a more substantial source of income, especially if they are not included in tuition or if you live off campus.
Graduate students in particular will often have to take out a second loan to simply pay for living expenses because they don’t live on campus or don’t have those expenses covered in their tuition.
For any student getting a higher degree, it might not be a bad idea to consider taking out a second loan to account for living expenses. Since federal loans with a low interest rate often have a cap to the amount you can take out, private loans are often a good second option.
Avoiding Credit Card Debt
Loans that are structured for students often have lower interest rates and are far more forgiving than accrued credit card debt. Also, private loan companies will work with you to get you the money you need with a manageable interest rate, and dialogue to make sure the loan fits your needs.
If the choice is between a student living expense loan and racking up a high amount of credit card debt, the loan is almost always going to be your better option.
Being Able to Focus on School
A lot of students opt to get a part-time or even full-time job while they’re still getting their degree. This isn’t a bad idea all the time, but generally, it’ll be much easier if you are able to devote all of your concentration to your schooling, especially since that is what will land you a higher paying job in the end.
A private loan for living expenses will free you up to be a full-time student and avoid the distractions and time demands of a job. You’ll be able to spend more time studying, make better grades and save your energy for the demands of your schooling.
Everything You Need
Another perk of getting a private loan for your expenses is that you get one lump sum that’s everything you need. You’ll be able to roughly calculate your living expenses before you set up the loan, then structure it for that exact amount. This helps you stick to a budget and avoid over or under spending.
Pros and Cons
As you can see, there are some definite upsides to borrowing money to pay for the cost of living during school. Let’s sum it all up:
–No credit cards
–Enables you to focus on School
–One lump sum
There are always extra considerations to take into account when taking out a private loan, of course. These will have different regulations than federal loans you might take out, and can’t be consolidated with those loans, meaning you’ll be making multiple payments to different institutions.
However the amounts are smaller, and the interest rates are usually far more manageable than that of a credit card. You’ll also have the benefit of being able to structure a loan that’s unique to your situation. At Cedar Education Lending, we are here to help!