As college tuition continues to rise and student loan debt is still on the rise, it can be challenging for college students to figure out what’s the best option for borrowing money. In this article, a 25-year old blogger discusses the possibility of using your bank’s cash advance feature instead of taking out private loans.
The Problem with Student Loans
When I was a freshman in college, my mother told me she would pay for my student loans if I got a full-time job. That was not an acceptable answer to me because of the many reasons that come with the “student loan debt spiral”. I ended up taking out $25,000 in student loans (that’s how much students are expected to borrow) while barely making ends meet. Graduating with these debts and not being able to find a job caused me to fall into the “credit score” trap.
Lately, the amount of student loan debt has been increasing exponentially. Student loans carry a lot of risk with them because they can’t be canceled once taken out. The interest rate can go up as much as 7% each year, and there is also a chance that you could end up paying more than the original debt if your income changes or the value of your degree changes.
Options for Financial Aid
Financial aid opportunities are available to students from banks and other sources. Some of the options for financial aid include grants, scholarships, loans, and student savings accounts. If a student has a family member who is willing to co-sign for them, these options can become even more flexible.
I skipped student loans and went bank-to-bank, which I was able to do because of my parents’ retirement accounts. I’m a part-time student at a university that has no loan debt, so it didn’t matter what kind of money I had in the bank.
I also applied for scholarships and grants that were awarded based on financial need.
The Benefits of Using a Bank Cash Advance
With student loans, students are unable to accumulate any interest for an extended period of time. Furthermore, the amount of debt students assume can sometimes be overwhelming and financially crippling. For these reasons, many people prefer to use a bank cash advance as a solution. With a bank cash advance, you can get up to $1000 in cash within 48 hours. You can also make this large sum available in installments with no interest.
Student loans are easy to come by and can be a great tool for young adults just starting out. However, it’s important to know the costs of going this route so that you’re not wasting your money. One way to get around the cost is to go bank-to-bank and use a cash advance instead. You’ll be able to hit the ground running with less debt, but there are still plenty of risks associated with using these funds as opposed to picking up a student loan.
Pros and Cons of Using a Bank Cash Advance
I am going to skip student loans and go bank-to-bank when I graduate. The pros are a drastically lower interest rate, no need for credit checks, the potential for higher returns due to a low risk of default, and lower fees on service. The cons of using bank cash advances include the fact that this is not a long-term solution to your financial problems, and that other banks may charge higher rates than your own bank.
When I graduated college with a $100,000+ student loan debt, I was faced with the realities of my future. I figured that because there are so many students who are drowning in student loan debt, it would be worth exploring other options to pay for education. A bank cash advance is an option for anyone who wants to skip on loans and go to school without any debt whatsoever.
Steps for Success in Using a Bank Cash Advance
On top of all the other benefits, a cash advance can help you reduce your student loan debt. The bank that you select will require you to meet certain requirements before they’ll approve your loan. These include having good credit, not being more than 60 days delinquent on your bills, and not having any outstanding judgments against you in collections.
One of the best ways to learn about personal finance is to go into debt and then get out, so that’s exactly what I did. I got a student loan for my first year of college, but instead of paying it back, I just stopped making payments. After a few months, I was able to start a new credit line with the bank. And you know what? The interest rate on that credit line is lower than my student loan!
Tips for Successfully Applying for a Bank Cash Advance
A cash advance is a short-term loan that can be taken out against your bank account. A cash advance is typically only for emergency situations, such as a car or home repair, or to help you avoid overdraft fees. You’ll need a high credit score to apply for a cash advance, and if your score is low, try other options first, such as borrowing from family or friends.
Going bank-to-bank is a great option if you are in the situation of needing money right away. But there are some pitfalls to watch out for: It’s important that you know how much interest you’re going to be charged and that you understand your options.
The long and short of it is that I am not going to have student loans, because I am not going to go to college. In the end I was able to get into a private college with money that I saved from working in my family’s business
It is important to focus on building a good credit score. The more debt you have, the harder it will be for your credit score to reach where you want it to be. Many people find that going bank-to-bank with student loans can cause them to take out too much money and end up in debt. It’s worth noting that even though this option may seem cheaper, it’s not always better when it comes to your overall financial situation.