Student loan vs Student line of credit

[xortan]

Hey I am in a really sticky situation. Here is the low-down. I was living with my dad (parents are divorced) and I asked him 2 months ago to do the parent part of the student loan and the other day when I asked him he went off the deep end and actually kicked me out of the house :S now I am at my moms. I have the school calling me and saying that they are going to withdraw me by wednesday cause my tuition is overdue and my loan still isn't processing.

I am wondering what the pros and cons of taking a student line of credit are over a student loan?

Also has anyone here taken a student line of credit before and call tell me a little bit about it. I looked on my banks website and I get the idea of it but was wondering what other people thought of it.

If anyone can give me some insight into this it would be much appreicated

 

[kote]

Hey I am in a really sticky situation. Here is the low-down. I was living with my dad (parents are divorced) and I asked him 2 months ago to do the parent part of the student loan and the other day when I asked him he went off the deep end and actually kicked me out of the house :S now I am at my moms. I have the school calling me and saying that they are going to withdraw me by wednesday cause my tuition is overdue and my loan still isn't processing.

I am wondering what the pros and cons of taking a student line of credit are over a student loan?

Also has anyone here taken a student line of credit before and call tell me a little bit about it. I looked on my banks website and I get the idea of it but was wondering what other people thought of it.

If anyone can give me some insight into this it would be much appreicated

Have you spoken to your financial aid office? I would see what they recommend ASAP. They are the experts and also the only ones who may possibly be able to help you out if there is any help to be had. Good luck.

 

[Mene]

I am not an expert in financial matters, but I can provide some general information about the differences between a student loan and a student line of credit.

A student loan is a type of loan specifically designed for students to help cover the cost of tuition, books, and other educational expenses. This type of loan usually has a fixed interest rate and a set repayment schedule. The loan is typically disbursed directly to the school and the student is responsible for paying back the loan after graduation. The amount of the loan is usually determined by the student's financial need and can be subsidized or unsubsidized.

On the other hand, a student line of credit is a revolving credit account that can be used for educational expenses, but can also be used for other purposes. This type of credit is similar to a credit card, where the borrower can access funds up to a certain limit and only pay interest on the amount borrowed. The interest rate for a student line of credit is usually variable and can fluctuate based on market conditions.

The main advantage of a student line of credit is flexibility. Unlike a student loan, the borrower can access funds as needed and only pay interest on the amount used. This can be beneficial for students who are unsure of their exact expenses or who may need additional funds for unexpected costs.

However, a student line of credit also has some drawbacks. The interest rate is usually higher than that of a student loan and can increase over time. Additionally, there is no set repayment schedule, so the borrower may be tempted to only make minimum payments, resulting in a longer repayment period and more interest paid.

Ultimately, the decision between a student loan and a student line of credit will depend on your individual financial situation and needs. It is important to carefully consider the terms and interest rates of each option and choose the one that will be most beneficial for you in the long run.

In terms of personal experiences with a student line of credit, it would be best to speak with someone who has actually taken one out and can provide first-hand insight. You can also research online and read reviews from others who have taken out a student line of credit from your specific bank. It may also be helpful to speak with a financial advisor for personalized advice.