Skip to main content

Peer-to-peer Lending Oprions for Students

Peer-to-peer Lending Loans

Is peer-to-peer lending safe?

Going to college is necessary in this day and age if you hope to get a good paying job. However, finding the money to do so isn’t always easy. One method of getting money for college is to take out a student loan from the government. Another is to go a private lending institution, such as a bank or credit union. A third method, and one that is becoming more and more popular, is to get a loan from a private individual. This type of loan is usually called peer-to-peer (P2P) lending. Following are a few options for students who are seeking a peer-to-peer loan.

What Is Peer-to-Peer Lending?

Peer-to-peer lending is essentially a financial agreement that takes place between individuals. One party, you, borrows money from someone else. It works the same way as a traditional loan because unlike a scholarship, grant, or gift, you will be expected to pay the money back, on time, and with interest tacked on. You and the lender agree on how much will be paid back with each installment, including the amount of interest that will apply.

How a Peer-to-Peer Loan Works

A peer-to-peer loan can be as simple or as complex as the involved parties want to make it. Some P2P loans are nothing more than one person handing over a check to another based on nothing more than a handshake or a promise to pay the money back. Other peer-to-peer loans are much more formal - they would be a legally binding contract that is signed by both you and the lender.

A peer-to-peer loan usually has all the same type of ramifications as a traditional loan - if the money isn’t paid back according to the terms of the agreement your credit rating could suffer, and you could also be sued for breach of contract or nonpayment. The terms of the loan are usually dictated by the lender and then you choose whether or not to sign the contract. For person borrowing money for a college education, the transaction is usually more of the official variety, unless the money comes from a family member or close friend.

At times a peer-to-peer loan can be nothing more formal than borrowing money from Uncle Fred or Aunt Betty. You accept the loan graciously and agree to pay them back as soon as you can. If you don’t have a rich relative you still have the option of taking a more traditional approach by taking out a formalized peer-to-peer loan. Most people who opt for a P2P loan do so because they don’t have good credit, or simply want the option of paying off the loan as quickly as possible.

Where Can You Get a Peer-to-Peer Loan?

If you’ve decided to forego the usual method of getting money for college and want to get a P2P loan, you should begin by talking to other students who have gone that route. Ask around campus or in your community--let people know you’re interested in taking out a peer-to-peer loan and are looking for contacts. Another way to find a peer-to-peer lender is to do a little research on the Internet. Websites, such as Prosper.com or Greennote.com, are designed to provide help in peer-to-peer lending.

Through these websites you can get in touch with organizations or private individuals that are willing to lend money to students. Other websites that could be valuable in finding a peer-to-peer lender are lendkey.com, or lendingclub.com. It would be a good idea to do thorough research before agreeing to a contract.

Comments

Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Four factors that have fuelled city-centre living

Urban centres have become increasingly popular in recent years as both residential locations and as commercial space. This social change has been driven by a number of factors and has been reflected in the number of new property developments springing up in major cities around the UK. As space tends to be at a premium in urban areas, it has led to the construction of a greater number of apartments; potentially fuelling interest in block of flats insurance . So why have so many people decided that an apartment in a town is a better place to live than a larger house in the country? Here are four factors that are likely to have spurred on the rush for the city...

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects