Here is how to think and organize your time and materials to get your loan.
Your budget-make one! Costs include the tuition, room and board, books, teacher’s gifts, laundry, etc. Add any clothing, gear, or practice implements, and your travel costs. Will you have rent, debt, or other payments to make, while you are away or on your return? Expect it will take as long after your return as you were away, for life to normalize. You don’t want a financial crisis in that re-entry period.
Your resources are gifts, earnings or savings for this purpose. If applying for a scholarship, expect it will be small relative to the program cost. If your costs are more than your resources, the difference is the amount you should request as a loan.
Interest Rate is cost of your credit as a yearly percentage of the loan balance. Finance charge is the dollar amount the interest will cost during the loan repayment.
Collateral, pledging your auto title for example, will lower your interest rate because it is security to further guarantee repayment.
Your income and credit history will effect your interest rate. If you have been in the same work for two years, have recent W-2s, tax returns, and paychecks (or bank statements for the self-employed,) and will return to the same work, your income will qualify for the best interest rate. If your credit history has been clean of late payments or collections, your credit will qualify for the best rate. If income or credit history fall short, a co-signer can help you qualify but the rate may be higher.
A co-signer is someone who will apply for and sign the loan with you, as a co-borrower. This support is easier to find than you might suppose, aside from the pain in the “ask.” Try a family member, a sangha member, or work colleague. Once the loan is signed, they are out of the loop unless you don’t pay or the loan is paid off. Our Borrower’s Life Insurance at a small monthly fee will further assure your co-signer and lower your interest rate. Your co-signer will find this a great way to help you, without being the lender, or the accounting office that collects payments!
Your repayment choices will influence your interest rate. Best rates go to electronic monthly payments, starting within 45 days, and fully repaid in four years.
You can apply at any time, and sooner is better to settle your financial plans. Loan-approval typically takes 24 hours after all your application materials are here. If you wait until two weeks or less before your program starts, you will be adding some impatience and stress to the process.
The Loan Agreement will need signature(s) after loan approval. We can do this by mail exchange for borrowers or co-borrowers out-of-Boulder. At loan signing, we will need your Practice Center’s Account Statement showing your balance due.
Loan checks are written separately to the Practice Center, and to you.
We welcome questions and your loan application. Cheerful practice!