How to apply for a private student loan

If you’re off to university soon, you’ll probably be giving your finances a bit of attention. Organising your money and knowing what you’ve got to work with in terms of savings, cash in the bank and credit limit amounts on your credit cards is the best way to start. If after going through your finances you realise that you’re not going to make ends meet, you’ll need to find out how to apply for a private student loan.
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Student loan

Before you consider any private borrowing from a bank, you should organise your student loan. Most students in further education find that the student loan only covers the tuition fees and cost of accommodation leaving nothing to cover food, clothes and transport. You could get a low paid part time job, perhaps in a supermarket, or you could lose money throughout the year and then make it back up by working during the summer or you could apply for a private loan.

Student bank account

If you’re thinking of a private loan because the student loan won’t be sufficient, you should get in touch with a bank about a student bank account before you talk to them about a loan. You’re more likely to be accepted for a loan from a bank that you’re with and you’re chances of getting a loan when you’re studying fulltime are far higher if you’ve taken the time to get a student bank account. Most come with an overdraft which will tide you over during the first few months of your course, and some even have student credit cards with interest free periods you should take advantage of.

Private loans

Banks are the safety option for borrowing money but they’re not the only way. If you take a look online you’ll find a whole host of websites that offer loans for students. Be careful though as some offer loans with exuberant interest rates. If you take a loan out with massive interest, you’ll only be adding to your financial woes when your course comes to an end.

Financially struggling

If you find yourself in a financial mess or you’re interested in further advice, speak to your bank or have a word with the student finance office.

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