If you're a student, one thing you've probably learned is how to procrastinate.
Still haven't yet lined up financing for your education? It's time to get started.
Unfortunately, it's probably harder this year than in past years. There's less free money, jobs are scarce and often at risk, and banks are skittish about lending.
Funding an education is often a good reason to borrow: sometimes you can't pay cash for it but the costs and risks of borrowing have a good chance of paying off. However, you'll have to repay those loans someday, and it's difficult to imagine what a huge student loan debt really means. Try to pinch pennies now - you'll thank yourself later.
If you need to borrow money, start at your financial aid office and ask for federal student loans. You may need additional loans if federal loans don't cover your costs. Private student loans are more and more difficult to find, but they're out there.
An often overlooked way to find private loans is through peer to peer lending sites. Instead of going to a bank, you borrow from other individuals. You may know them (such as friends, family, co-workers, and local businesses) or they may be strangers (like banks, credit unions, and individual lenders who happen to be strangers).
Consider whether you really need to borrow money. If so, consider the following:
- Prosper.com - strangers bid to lend you money in an online auction
- LendingClub - individuals may offer you money at a rate based on your creditworthiness
- Virgin Money - formalize and document a loan with somebody you know
- GreenNote - run a pledge drive and collect small loans from your network
- TuitionU.com - find a credit union that may want your membership
More reading:
Money is a bit scarce right now, but it’s not impossible to find it. I reside in Michigan, and there’s many programs available to unemployed workers (and there’s plenty of those in MI!) that offer free money for going back to school. I personally get money from Michigan Works, plus I’ve gotten the maximum Pell Grant for 2009, which is higher than it has ever been. So you can find money out there for college – You just have to be diligent.