What are the Basic Advantages and Disvantages with Student Loans?

April 24, 2019

When attending college, it’s almost certain that you will need some form of financial aid. Plenty of students use scholarships or grants to help them pay for their studies. But those types of financial aid only go so far, so some students may need to consider taking out a student loan.

Whether you’re borrowing from the federal government or a private lender, there are advantages and disadvantages to taking out a student loan. That is why we at MaxCash have come up with the pros and cons every student should know before taking out a student loan.

Advantages to Taking Out a Student Loan

  1. You Don’t Need Good Credit: When it comes to other types of loans, your credit score is the largest determining factor on whether you could obtain approval. But when it comes to federal student loans, credit is not factored into the approval process.
  2. Less Fees: When you are borrowing money for a student loan, lenders tailor their loans specifically for students. This allows lenders to create loan packages that have less fees in order to attract more clients. In some instances, lenders have been known to wave both the origination fees and early repayment fees.
  3. Lower Interest Rates: With most other loans, interest rates can vary depending on the type of loan you get and the lender you choose. But by taking out a federal student loan, you don’t have to worry about fluctuating interest. With a fixed rate, your student loan interest will not change over the life of the loan, making repayment much easier.
  4. No Need for a Co-Signer: If a borrower has little or no credit history, then they will need to have a co-signer to acquire approval. But with a student loan, a co-signer is unnecessary as lenders know that new college kids may not have good credit.
  5. Deferred Payments: One of the great things about student loans is that you can delay paying back what you owe for some time. If you took out a private loan, you can defer payments for about 12 months. But if you have a federal student loan, then you could be looking at a deferment of up to 3 years depending on your financial situation.
  1. Students Can Build Credit: Most college students have low credit, or unestablished credit. But by having student loans and making payments on time, students can build their credit and improve their rating over time.

With our years of experience and our large network of lenders, MaxCash could help you find the student loan you need with ease. Our experience comes into play as we help our clients find an affordable loan, receive desirable benefits, and answer any questions along the way.

If you still have questions about MaxCash and what we do, read up on our history and our company values.

Disadvantages to Taking Out a Student Loan

  1. Student Loans Can be Expensive: Depending on where you go to school, college can be insanely expensive. Some students acquire upwards of $50,000 in debt after graduation. Coupled with high interest rates of 11% to 15%, students may pay off their loans after a significant amount of time.
  2. Possible Variable Rates: If you wish to take out a private student loan, then do some research to find a lender that provides fixed rates. Variable interest rates can spike and cause monthly payments to be high.
  3. Student Loans Can Lower Credit: While student loans can be beneficial in helping build credit over time, they can also damage it. If you fail to make your payments on time, your credit could be negatively affected. Having low credit could make your life harder if you need another loan later in life.

At MaxCash, we strive to provide financial information to our clients and non-clients alike. We do this because we know how hard navigating finances can be, so we do what we can to aid others. But we do more than just supply information, we also help people obtain loans, find lenders, and so much more.

If you want to see what MaxCash can do, then why don’t you pick up the phone and give us a call at (833)-207-9052 or send us an email at info@maxcash.com.

DISCLAIMER:
The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.

1Loan amounts by the lenders vary based on qualifications.

2Since we do not lend money directly we cannot offer you a solicitation for a loan. In all serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans are not available in all states and all areas.

3Loans such as, Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan. Other types of loans may have pre-payment penalties as well.

4All lenders are responsible for their own interest rates and payment terms. Max Cash has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

5The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time, in the circumstance for an auto title loan. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically, larger loans or higher risk loans use a GPS.

In some circumstances faxing may be required. Use of your cell phone to receive updates is optional. Please review our privacy policy.

Loans such as Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long-term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

Signature and personal loans are only available in Georgia and Florida. Loan amounts differ at locations. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.

Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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