Guarantor Loans For College and University Students

Author: Jason C Scott

It is no secret that college and university fees are on the rise with students looking to go to university in 2012 will experience tuition fees of over £9000 per year, that's not including the cost of living and renting a property. With costs such as this, a lot of students are looking to take 3 year courses instead of the 4 or 5 year option, many feeling that this should be sufficient. To enable students to keep on top of their education fees, many online lenders are now offering a specialist product called a guarantor loan, this has been a popular choice among students, along with tenant, payday and cash advance loans.

It is common for college students to be employed whilst studying, many juggling their lectures with a weekend or evening job. Providing students can prove that they can afford the monthly repayments and provide a homeowner guarantor, they have a good chance of getting approved for a guarantor loan. Another option as mentioned is the payday loan, despite the high interest rates these can be a good way of getting through the week until payday.

Although for some students this is a legitimate option, many are unable to meet the criteria, whether that's regarding the affordability or the presence of a guarantor. In order to be eligible for a guarantor loan, the student must be above the age of eighteen and be bringing in some form of income in order to prove that they can afford the monthly repayments. As previously mentioned the applicant must also have a homeowner guarantor to support the application, the guarantor must have good credit history, and guarantee the monthly repayments if the applicants fails to do so.

If the applicant is currently unemployed, this does not make them ineligible for a guarantor loan, many companies will accept benefit payments as long as proof of this can be provided and the amount of income correlates with the monthly repayments, showing that they are affordable. Some companies will be unable to accept jobseekers allowance as a source of income; however disability and carers allowance is usually accepted. With the majority of guarantor loan lenders having their own website with an online application form, all you will need to do is fill this in, and they will contact you soon after, many companies priding themselves on a 2 business day turnaround. If you have any questions regarding the loan, all lenders will have a helpline and will be more than willing to answer any queries you may have.

Article Source: http://www.articlesbase.com/loans-articles/guarantor-loans-for-college-and-university-students-5649446.html

About the Author

To learn more about Guarantor Loans, or Unsecured Loans in general, visit www.guarantorloansonline.co.uk or read more Finance articles from Jason C Scott