At school and need extra cash? Short-term loans could be a fast option, but a costly solution.
Short-term loans for students are designed to loan cash to help you temporarily cover your financial commitments. This type of loan is typically in the $50 to $2,000 range. You could use the loan for things like paying for your class books or emergency costs, like flying home for a funeral.
Find out how these loans work and if they’re an option for you to consider.
- Easy online application
- Quick approval
- Fast funding
- Long repayment terms
OppLoans Installment Loans
Installment loans with competitive rates from a top-rated direct lender.
- Minimum loan amount: $500
- Maximum loan amount: $5,000
- Turnaround time: 1 business day
- Loan term: 9 to 36 months
- Must have direct deposit and meet minimum income requirements
How do short-term loans for students work?
Short-term loans for students are designed to offer emergency funding. Most students don’t have steady income and may have a problem getting approved for standard loans. Short-term loans, on the other hand, offer financing with more lenient lending criteria and very short approval times. This allows students to access emergency funds they can repay when they get income from other sources.
Most lenders require students to provide their identification details and show they can repay their loans by providing 90 days worth of bank statements. The online application and approval process removes the need for any paperwork or face-to-face meetings, allowing you to possibly get your money faster. Remember that you may be required to pay for the loan in less than a month depending on the terms of your particular loan, and that the interest rates are a lot higher than what you’d normally find in a personal loan.
How much will the loan cost?
It’s important to be informed before taking out a short-term loan. It may seem harmless, but there could be a lot of fees associated with your short-term loan if you don’t read all the details before applying. Some lenders charge establishment or administrative fees in order to initiate the loan. There could also be penalty fees for things like late payments or even early repayment. So make sure you review the terms of the loan before you click submit on your application.
Are students eligible for short-term loans?
To be eligible for a short-term loan, you need to be over the age of 18 and receive some sort of income.
- If you’re a part-time employee. Lenders need to see evidence of a regular income, but some will accept casual employees. Be sure to have pay stubs to verify your income.
- If you receive welfare. Some lenders will consider applicants who receive welfare for short-term loans. Be sure to check the eligibility criteria of the lender you’re interested in.
- If you have bad or no credit. Short-term lenders tend to be flexible when it comes to your credit situation. There are lenders who’ll approve your application even if you have bad or no credit.
Comparison of short-term loans for students
How students can compare their options
- Loan term.
Short-term loans will usually have a term of between two weeks and several months depending on how much you borrow. When choosing a short-term loan, consider when you’re likely to get your next paycheck so that you can match your repayments to that schedule and avoid late payment penalties.
- Approval time.
The whole point of applying for a short-term loan is to avoid waiting around for approval and to hopefully get your cash instantly. It’s important to compare your options and choose a lender with a fast and easy online application process. This gives you the chance to apply and get approved for a loan within a few minutes, with no paperwork or meetings required.
- Interest charges.
Compare the APR on different loans to ensure you avoid paying excessive fees, especially if you miss a repayment. Short-term loans usually have high interest charges, so be extra careful when choosing one and take time to shop around.
- Late payment fees.
While shopping around for a short-term loan, be sure to read the fine print to avoid being caught off guard by crippling late payment penalties. Borrow what you need and be sure that you can manage your repayments to avoid falling into the lender’s trap and having to pay outrageous amounts in penalties and interest fees.
- The application process.
You should consider a lender with a good reputation, a simplified online application process and a quick approval timeframe. Some lenders even offer same-day loans so that you can get your money the same day you apply.
Emergency student loans
Before taking out a short-term loan from an outside lender, you may want to contact your college’s Financial Aid Office if you’re experiencing a financial hardship that requires emergency cash. Many schools offer low- or no-interest short-term loans that have a maximum loan amount of $1,000 to students who’ve had unexpected expenses pop up. These loans will typically need to start being repaid within 30 to 90 days, but as always, terms and conditions will vary by school.
What are the risks of getting a short-term loan?
- Unable to make your repayments. It’s important to keep in mind that short-term loans come with high interest rates. This could mean that by the time you’ve paid off your loan, there won’t be enough funds in your account to last until your next payday. This cycle can be very unhealthy for your finances.
- Overcharged with fees. Be sure to make your repayments on time since these loans usually carry heavy penalties for missed repayments. Paying excessive fees for late payments is already a big problem for people with regular income, let alone students. It can suck you into a cycle of debt and possibly hurt your credit, making it harder to access financing in the future.