If you just got out of college and don't have the money to start your chosen career path, it can be hard to get started in the "real world." If you want to follow your dreams but don't have the money to do so, a graduate loan could help you out while you find your feet. Here are some tips and suggestions on how to get a graduate loan and how it could help you.
How do graduate loans work?
In the end, graduate loans are just a type of personal loan that doesn't have to be paid back. They are for people who just graduated from college and want to move up in their careers or do something else. Graduate loans are usually a one-time payment of between GBP1,000 and GBP25,000, which can be paid back over six to ten years.
What's good about it?
Even though graduate loans are basically just unsecured personal loans, lenders often offer better rates because they are for people just starting out in their careers. The interest rate will be lower than with regular personal loans, and you'll usually be able to borrow more than you could with a regular loan. But graduate loans are still based on your credit score, and rates can change based on your current status and income.
Deferred payment
Another benefit of graduate loans is that sometimes you can put off making payments, both at the beginning and at different times during the loan. This means that you can put off making payments for a few months so you can get your money in order. Of course, if you do this, you will still be charged interest and have to pay back more. But it can be helpful if you don't have much money or need time to figure things out before you start paying back the loan.
Costs and fees
Even though APRs are usually low, there are other costs to think about when getting a graduate loan. For example, if you don't make a payment on time, you might have to pay a late fee of up to GBP40. Also, you might have to pay a fee of GBP50 or more if you want the money within 24 hours of applying. But the fees for graduate loans are pretty much the same as those for any other personal loan. Just make sure you read the rules before you send in your application.
What can I do with the money?
You can use the loan for whatever you want, but most people use them to pay off credit card debt from college and get started in their chosen career. This could be so you can buy the right clothes for your job, move to a new city, or pay for travel. Getting everything you need to start your career can be expensive, especially if you are already strapped for cash because of college debt. Getting a graduate loan will help you get your finances in order and give you the chance to get the things you need to move up in the world.
