Not only employed citizens may have difficult financial situations but also students – people who do not have time to work full-time. Most often these are those who live in a hostel or in a rented apartment away from relatives. Even state employees who receive a scholarship at the university cannot always count on it – often the scholarship is about $600, and it is hardly enough to pay rent, buy groceries for a week, or buy a gift for a friend or relative.
The author’s experience
Banks do not provide loans to persons under the age of 21 – students are more unreliable borrowers than the unemployed since they often do not have the opportunity to work in order to repay the debt. Microfinance organizations can provide a payday loan to an unemployed student whose only income can only be a scholarship.
However, MFIs also take great risks by providing a payday loan to a student. A full-time borrower who cannot get a full-time job does not seem trustworthy. In addition, age plays an important role – despite the fact that some payday lenders set 18 as the minimum borrower age, some companies reject loan applications of eighteen-year-old students – especially if those who have just become an adult. Students of the third or fourth year who have reached the age of 21 seem to be more reliable – many of them go to work part-time at this time.
To justify the risk of providing payday loans to students, payday lenders are raising rates – usually between 0.5% and 5% per day. Defaulting on such a loan can hit a student’s pocket hard.
Many microfinance organizations have programs designed to issue loans to a student without a job. Payday loans in such companies are provided for a small amount and at a low interest rate.
Things to look for
A student can get a loan in two ways – at the lender’s office or via the Internet. In both cases, you must be a US citizen or permanent resident and provide some kind of identity verification. You will need to fill out an application. When filling out an application, you will be also asked to provide your email address and phone number. Sometimes the application is followed by a check – the lender may call contact the person, parents and the employer. It is also worth noting that students with an informal part-time job are likely to be approved for a loan since they have a source of income, and therefore the means to repay the debt.
This online procedure is much easier and faster. You can apply for a loan from the comfort of your home. In this case, the approval of the application lasts less than an hour, and the money goes directly to the bank account. Often, a payday loan can be transferred to the borrower’s e-wallet.
However, it is worth contacting microfinance organizations only as a last resort, for a small amount ($100-$1,000) for a short time (up to 30 days). You must be sure that you will be able to repay the original loan amount + interest on the due date, as well as carefully approach the choice of the lender.
Students from the age of 18 fall under the category of financially vulnerable citizens since parents do not always fully support their already grown children, and it is very difficult to find a permanent job with a full decent income, especially when they have not finished their studies. However, you may use online loan referral services to get matched with the right lender for your needs
There are a lot of companies that provide loans to young people, so you do not have to worry about this factor when choosing a lender. For example, all payday loans in Nebraska are transferred remotely to students’ bank accounts.
But these are not all possible options for a student, although they are the most loyal to the age of the borrower. There are also online company search pages where you can quickly view all organizations for a student.
Another obstacle may be the not widespread willingness of MFIs to cooperate with students; some of these companies may reject applicants. But still, you should not stop looking for a lender since a considerable number of microfinance organizations are still ready to cooperate with students.
The main condition for obtaining a payday loan is to have some kind of identity verification.
If the borrower is not employed, a surety from a third party, such as a parent, may be required. In other companies, instead, an alternative is offered – the provision of property owned by the applicant as collateral. But in most cases, when obtaining loans, you can do without collateral and guarantors, as long as the age is over 18 years old.
The main thing is that the debt is repaid on time and in full. But some companies are ready to provide funds for solving problems of a certain nature, for example, student loans – when it is necessary to pay for education.
Then the client undertakes to enroll in a specific educational institution, the name of which is negotiated when concluding the contract. And the payment procedure may be somewhat freer in nature, for example, payments can be started only after graduation. You will have to find out about all such nuances in advance when contacting the selected company.
There are several options for getting cash: through money transfer systems, via a transfer to a bank account, in cash at the lender’s office. You can choose the most convenient option for yourself.
Thus, a payday loan is practically the only available opportunity to obtain additional funds to solve financial difficulties since banks often refuse to cooperate with persons under the age of 21. And microfinance institutions are ready to provide assistance to such a category of citizens, even if there is no permanent job. But this option implies that the interest rate will be higher, and the maximum amount will be small – up to $1,000. The borrower’s age does not play a significant role for a lender.
Online payday loans are an excellent alternative to bank loans. Today they are issued to young people over the age of 18. The money can be used for whatever purpose: to pay tuition fees, buy tutorials and software, electronics, rent an apartment and solve any financial difficulties.
There is an innovative scoring system that allows payday lenders to process applications and make decisions instantly. The whole process takes no longer than 10 minutes.
Applications can be submitted around the clock – on the way to a lecture, in between classes, visiting friends or at home.
Any information related to your loan can be found in one click through the online account. You just need to log in from any computer or mobile device.
Besides, you can typically repay the loan ahead of schedule and not overpay the interest if the money is no longer needed. The total amount of your debt can also be found in the online account.
When choosing a convenient option, you need to take into account that funds are credited to your bank account within 24 hours – often instantly. You have the perfect opportunity to borrow money right away.