How can Students Benefit from Short-term Loan Providers

Getting higher education by attending college is more important than ever in this global economy. At the same time, it has become more challenging to support the cost of attending the college. Ideally, students attending the college should not have to worry about how they are going to pay for it and instead focus their effort on gaining knowledge and studying, but in reality it doesn’t work that way.

A recent article on the Independent website claimed that “students will blow just over £2,700 of their loan in the first fortnight.” While this can hardly be considered to be wise spending, it does give some perspective of the challenges thrown at students as they push to become university graduates.

If students are struggling to make ends meet, then there are several options for them to consider. Taking out a short-term loan from companies such as Smart Pig is one option. This can be a good lifeline, as long as the repayments are made on time and the individual taking out the loan is in a position to do so.

There has been a sharp rise in the number of short-term loan providers and an article on the BBC website set out some of the reasons for this. Referring to information from the Financial Ombudsman, the article said, “The rise was partly due to greater consumer awareness of their rights.” The article went on to quote a report compiled by Smart Money People, which showed that “95% of short-term credit customers felt they were treated fairly”.

The way such loans work is very straightforward, first there is an online application to be completed. This is followed by confirmation of whether the application has been accepted and this, in most cases, only takes an hour or so. If the application is successful, then the money is transferred instantly and the repayment is made on an agreed date – usually when the student receives their next chunk of income.

Other options include getting a job to help shoulder the costs of university life. This provides a steady stream of money and can help students avoid additional, unnecessary, debt. Having a job, however, can have an impact on the amount of time students spend studying and for some is simply too much to juggle.

Most colleges and universities recommend not working for more than 15 hours per week. If the student is getting paid the national minimum wage then this will give them around £100 per week. For some students this may well be sufficient, but for others may still leave them short.