There are such things as community-based school loans, which many may not be aware of. Basically, some areas have groups which take donations to give students money, a lot like crowd funding.
Organizations all over
Though Daily Finance made it apparent that there are a ton of community organizations showing up to help students, MarketWatch had most of the data about them. These organizations are community-based and offer student loans to students in the area that need a bit of help.
It isn't dissimilar to the more recent phenomenon of "crowd funding" or "crowd sourcing," in that donors are solicited for funds. They throw a certain amount into a communal pot, from which loans are made.
According to MarketWatch, it isn't even new; one such organization, the Canton Student Loan Organization of Canton, Ohio, has existed since 1922 and has lent $27 million to more than 5,000 students.
However, just like crowd funded personal loans websites such as Lending Club or Prosper, those loans do have to be repaid with interest.
Less than private or public
Daily Finance, Bankrate and MarketWatch all made it clear that community-based school loans, with regards to cost, are somewhere between federal student loans and private school loans.
A loan from a community association, community bank or credit union is still a private loan, but it's typically lower-cost than going to Sallie Mae, which according to CBS accounted for 46 percent of all grievances made to the Consumer Financial Protection Bureau about student loans all on their lonesome.
Dependent upon the community-based student loan organization, interest can be anywhere from nothing to eight percent, according to MarketWatch. The catch is that the loans generally require a massive piece of collateral, such as a parent's home, and have much harsher terms. Federal Stafford loans have the very best rates and Private loan rates can be as high as 16 percent.
Might not cover university
The small organizations do not have a lot of cash on them, which is why the loans are generally pretty small. It is enough to cover tuition and books, but generally it is not much more than that, according to Bankrate.
You may want to go to a credit union for their loan consolidation programs, and there are also programs comparable to these ones that offer university financing, according to CBS. The terms are generally pretty good. Make sure parents and students are both doing the research to figure out what is best.
Organizations all over
Though Daily Finance made it apparent that there are a ton of community organizations showing up to help students, MarketWatch had most of the data about them. These organizations are community-based and offer student loans to students in the area that need a bit of help.
It isn't dissimilar to the more recent phenomenon of "crowd funding" or "crowd sourcing," in that donors are solicited for funds. They throw a certain amount into a communal pot, from which loans are made.
According to MarketWatch, it isn't even new; one such organization, the Canton Student Loan Organization of Canton, Ohio, has existed since 1922 and has lent $27 million to more than 5,000 students.
However, just like crowd funded personal loans websites such as Lending Club or Prosper, those loans do have to be repaid with interest.
Less than private or public
Daily Finance, Bankrate and MarketWatch all made it clear that community-based school loans, with regards to cost, are somewhere between federal student loans and private school loans.
A loan from a community association, community bank or credit union is still a private loan, but it's typically lower-cost than going to Sallie Mae, which according to CBS accounted for 46 percent of all grievances made to the Consumer Financial Protection Bureau about student loans all on their lonesome.
Dependent upon the community-based student loan organization, interest can be anywhere from nothing to eight percent, according to MarketWatch. The catch is that the loans generally require a massive piece of collateral, such as a parent's home, and have much harsher terms. Federal Stafford loans have the very best rates and Private loan rates can be as high as 16 percent.
Might not cover university
The small organizations do not have a lot of cash on them, which is why the loans are generally pretty small. It is enough to cover tuition and books, but generally it is not much more than that, according to Bankrate.
You may want to go to a credit union for their loan consolidation programs, and there are also programs comparable to these ones that offer university financing, according to CBS. The terms are generally pretty good. Make sure parents and students are both doing the research to figure out what is best.