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What are some short-term loans for students?

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Quick Answer

Short-term loans for college students include those that the student's school offers as well as outside financial assistance programs and private loans, explains CollegeScholarships.org. However, borrowing from a private lender usually incurs higher interest rates and inflexible repayment terms, which makes it an option of last resort.

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What are some short-term loans for students?
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Full Answer

Individual colleges offer various types of short-term loans, according to CollegeScholarhips.org. For example, Ithaca College in New York state gives advances on financial aid as well as interest-free loans with repayment dates as of 2015. Pasadena City College in California provides loans for emergency expenses along with books and supplies. Students qualify within one or two days and have 30 days to repay the loans.

Organizations such as the Lumina Foundation for Education provide short-term aid through programs such as the Dreamkeepers and Angel Fund for Emergency Financial Aid, as CollegeScholarships.org details. This foundation aims to keep students in community college when they face unexpected financial challenges. Students use the funds for expenses such as health care, housing and even car repairs.

When other options fail, private lenders such as banks and credit unions are an option, explains CollegeScholarships.org. However, students need to approach them with caution because even small amounts have the potential to cost much more in the long term due to higher interest rates.

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