Alternative Student Loans

Financing education are of different stages; Parent do take care of financing their children’s education from savings accumulated right from the day they were born until when they come of age to start schooling. Several financial institutions offer such financial services to parent by encouraging them to make savings for their kids for educational purposes.

The ability of the parent to meet up their financial obligation towards financing their children at school solely depends on individual financial status. Some parents could not afford to save because they do not have an average monthly income sources. But others who have good job and engaged in profitable venture could do that.

Sometimes some parents, who are of average financial stand, could be reduced to zero level in case of deaths and disasters bringing them into poverty. Some children who have come of age could struggle on their own without any financial help and may engage in several part time jobs to ensure that they continues their education and even taking care of their poor parent who have fallen sick and could not do anything to support and some lost their parents. Some succeeded in this way and become useful citizen in the society while some engage in criminal activities.

Will the government and other financial institutions fold their arms and watch as some of the "Dropped Out of Schools” turn the society into a mess when they can save some of these brilliant ones some of them who are more intelligent than some of their mate in school?

Consequently, several financial institutions were set up providing student loans to students in the High Schools and those in the Universities. Both Federal and State government provide loans to assist students in the above institutions; such loans are administered by financial intermediaries known as commercial or development banks to give to students on very soft terms of repayment.

This type of loans does not cover every aspect of the education costs; they could only approve at most 50 percent of the cost while the student could supplement with loans from another source. Sometimes the loan could only cover the tuition fees and not the boarding, clothing and other basic needs.

As a borrower, the lender would require that you present a co-signer or guarantor who could stand as a surety for you in signing out the loan. The lending institution would look into his financial statement to ensure that he can pay back the loan at the time agreed in case you fail to pay and it could be that you have not secure a good job.

The need to source for additional loans in other to cover the rest of the cost involved is known as “Student Alternative Loan”. Financing the student’s education entails complete financial package of different sources; this include soft term loans, grants and scholarships.

The loans have to be paid back at the stipulated time; grants is another type of financial assistance given to students which is a free type of loan. It is not repayable. Grants are given to students by the government and sometimes by multinational companies operating within a community where the student is a citizen; is given on the basis of citizenship right to be enjoyed. Is always a fixed amount which could go a long way to cover some of the cost; but to get this kind of grants, you have to provide evidence of citizenship by presenting a valid document or identity card as the grant is restricted against non indigent and with a satisfactory evidence that you are already enrolled in the school at least for a full one year.

The other alternative student loan is the scholarship. This is based on merit especially if you are very good in your academic work. The government made provision for scholarship to be enjoyed by such intelligent students in the higher institution. Sometimes, you could win a scholarship in national essay competition, , national or state quiz competition, sports, arts, etc . The school you attend can award you a scholarship if you happen to make them proud because of your achievement either in schools competitions or academic works.

Scholarships and grants are not refundable; is a free loan for you to enjoy based on your excellent achievement in your academic works, arts, sports etc and based on citizenship rights you could enjoy. There are several source of financial assistance for students but most people do not know about them. Most schools educate on how to go about seeking for financial assistance during your seeking admission into the school. Some overseas universities and other institutions do that.

All you have to do is to study their admission requirements and sources of financial assistance. The Ministry of Education in your country also has Scholarship Board for students, multinational companies and others could educate you as well before you apply.