Get a small loan to help pay for college or other expenses while you’re still in school.
While it used to focus on financing for international students who typically can’t get a student loan on their own, it’s now open to all college students who need a little extra help. It’s not available in all states, however, and it’s not great if you have a large expense.
|Product Name||Boro Personal Loans for Students|
|Min Loan Amount||$1,000|
|Max. Loan Amount||$3,000|
|APR||15.9% (starting at)|
|Interest Rate Type||Fixed|
|Minimum Loan Term||1 year|
|Maximum Loan Term||3 years|
|Requirements||Enrolled in a US school, be a US resident or have an applicable visa; 2.0+ GPA or 3.0+ for graduate students, live in an eligible state.|
- Enrolled in a US school.
- Be a US resident or have an applicable visa.
- 2.0+ GPA or 3.0+ for graduate students.
- Live in an eligible state.
What is a Boro personal loan?
A Boro personal loan is a small-dollar term loan for college students and recently graduated young professionals. Loan amounts start at $1,000 in most states — $2,001 in Alabama — and top off at $3,000. You can take 1 to 3 years to pay it back with APRs of 15.9% (starting at). Boro’s average APR is 18.9%.
Boro compares its personal loans to a credit card — the main credit alternative for college students. Its APRs are lower than what you’d find with most student credit cards and making set monthly repayments can help you avoid building up credit card debt while you’re in school.
However, the relatively long terms on such a short loan amount has its benefits and drawbacks. Longer terms mean lower monthly payments, which may be more affordable while you’re in school. However, it also means you’ll end up paying more in interest.
Let’s take a look at an example. Say you borrow $2,000 from Boro at an APR of 18.60%. Here’s how it breaks down by loan term:
|Loan term||Monthly repayment||Total cost|
As you can see, a shorter loan term can give you high monthly repayments but cut the total cost of your loan by more than a third. Try to go for the longest term you can comfortably afford to pay to cut down on your total loan cost.
What makes Boro personal loans unique?
Boro is one of a handful of lenders that offers personal loans that for college students. It doesn’t require you to meet a minimum income or credit score, and you can use the funds to cover educational expenses.
It’s also one of a handful of lenders that’s willing to work with international students. In fact, Boro used to specialize in loans for noncitizens, though it’s opened eligibility to US citizens and permanent residents now too. It accepts F-1, OPT, H-1B, J-1, L and O-1 visas.
What are the benefits of a Boro personal loan?
- Use it to pay for school. Boro is one of the few personal loan providers that allows you to use your funds to cover educational expenses.
- Accepts international students. Boro works with students on F-1, OPT, H-1B, J-1, L and O-1 visas, in addition to US citizens and permanent residents.
- No credit score necessary. While having a credit history can strengthen your application, you don’t need to have a credit score to qualify.
- Low maximum APR. Many personal loan providers cap their APRs at 36% — the legal limit for a personal loan in most states. Boro stops at 19.9%.
- Referral program. You and a friend can earn up to $100 each if you refer them to Boro and are accepted.
What to watch out for
While Boro might be open to borrowers that most lenders aren’t willing to work with, there are some drawbacks to its personal loans. While not as expensive as a short-term loan, it’s still not as cheap as a federal or private student loan. If either of those are still options for you, consider applying for them first.
You might also want to consider the following drawbacks before you apply:
- Only practical for small expenses. You won’t be able to cover the cost of a full semester with a Boro loan at most schools.
- High minimum APR. Even if you happen to have a strong credit history, the lowest APR you can qualify for is 15.9%.
- Minimum GPA requirement. You need at least a 2.0 GPA if you’re an undergraduate and a 3.0 GPA if you’re a graduate student.
- Limited state availability. Boro personal loans are only available in 14 states.
Compare more personal loan providers
Am I eligible?
To meet Boro’s general eligibility requirements, you must:
- Be at least 18 years old.
- Be enrolled in a US college or university or a recently graduated young professional.
- Have a minimum GPA of 2.0 for undergraduates or 3.0 for graduate students.
- Be a US citizen, permanent resident or hold one of the following visas: F-1, OPT, H-1B, J-1, L or O-1.
- Live in an eligible state.
While Boro doesn’t have any credit or income requirements, good credit and a steady income will strengthen your application.
- New Jersey
- New York
How do I apply?
You can apply for a Boro personal loan online. Before you get started, you might want to have the following documents on hand to speed up the application:
- Identification. US citizens and permanent residents only need to submit a student ID. International students need their passport and I-20.
- Proof of academic standing. Boro asks to see your most recent transcripts or standardized test results (SAT, TOEFL, IELTS) if you haven’t completed a semester yet.
- Bank account information. Boro asks for information on a US bank account that you frequently use.
Once you have your documents together, follow these steps:
- Go to the Boro site and click Apply Now.
- Change the category from Auto Loan to Personal Loan.
- Review your loan offer and sign the documents online.
- Wait to receive your funds.
Once you sign your loan documents, you can get funds deposited into your bank account as soon as the same day.
How to apply step-by-step with screenshots
I got the Boro personal loan. Now what?
Now you need to start making monthly repayments. How much you owe each month should be outlined in your contract.
Boro has two options for repayment: automatic payments or check. Automatic payments involve less work — just connect your bank account and Boro automatically deducts your repayment each month when it’s due. If you pay by check, you’ll need to send it a few days before your payment is due to make sure Boro receives it on time.
If you’re more than 15 days late on a payment, Boro charges a late fee of $15. It might also show up on your credit report and hurt your credit score. If you’re concerned you’ll be late or have any additional questions about your loan, call 1-800-840-6604.
Boro is one of a handful of lenders out there willing to work with college students — especially international college students. While its rates don’t start as low as your standard personal loan provider, it’s one of the most competitive financing options out there for the borrowers it works with. Just make sure you’re a resident of an eligible state before you apply.
Frequently asked questions
Image source: Boro.com