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Can a full time student get loans. Since they need somewhere to live while they are going to school? I am trying to sign up for school. However to go to the school I have to move. If loans do not arrive till a month after can you get a temporary loan for housing?
| No never | 4 | |
| Yes always | 2 | |
| Yes sometimes | 3 |
Hi, I work in this field but I must emphasise due to the laws in my country (New Zealand) that I can only advise based within the New Zealand lending market so PLEASE seek a loan specialist in your area/country for advice.
1) Do you have regular income and be able to pay it back? - are you working and will be able to service the loan after paying your monthly expenses?
2) Are you eligible for any student based lending? - Can your bank offer you a interest free overdraft facility/a loan with a lower lending rate than normal?
3) Is the loan secured/unsecured? - this will play a vital role should a bank approve your loan. Do you have anything of value (freehold NOT currently used as security for other loans) that could be used as security for the loan. This will also dictate the lending interest rate as well. A secured loan internet rate is generally lower than a unsecured one.
4) What is your Credit history? - have you experienced any issues paying past debts/bills? Have you ever defaulted on past lending?
5) Do you have any other lending? - Some banks will encourage you to consolidate your loans into one loan and normally it does benefit clients. Most cases the internet rate for such loans is lower than the original loan. It does make things easier to pay one debt. CAUTION: check your existing loans and see if it would cost you to pay it earlier and what fees are associated with them. Also check the interest rate if it is lower than the consolidation loan rate keep it with them. However some places will approve your loan on the condition you bring an existing loan over to them.
6) Can your parents be guarantors to your loan?
I hope this can help. Remember to SHOP AROUND for loans. And don't be afraid to negotiate rates with lenders.
I am not sure if I have credit. I only use debit at my bank since when I found out how a credit card worked it sounded like a bad idea. I only spend what I have and hate being in debt. I did over spend a once and my bank covered it. I paid it back shortly after though. Does that count as credit? I also never taken out loans before.
Do you currently pay any bills that are in your name? Over here - I would consider that a form of credit history.
Normally if you don't have a credit history all, I would personally look at trying to get the loan secured with something you own or get a guarantor (your parents for example) to assist with the application.
However you could potentially be facing a higher internet rate due to your lack of credit history. You could also look into payment protection insurance to increase your chances to getting the loan approved.
Please note that the above advice is BASED where I work. And can vary between financial providers so PLEASE seek a second opinion!
Student loans and mortgages
People with student loans qualify for mortgages all the time - if they've been making consistent payments on these loans. Lenders view student loans as a preferred installment debt. If students make timely monthly payments on their loans, then lenders view the student loans as positive credit history. The student loans will only negatively affect the student's ability to qualify for a mortgage, if there is a missed payment on record.
Before taking out a mortgage, it is worthwhile to sit down and calculate your budget. Will you be able to afford monthly mortgage payments on top of your student loan expenses? If your budget is large enough to pay for both loan repayments, then apply for a mortgage, confident that your student loans will not affect your ability to own a home.