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How can students benefit from short-term loans

21st August 2017 Print

Students will be the focus on media attention once again this summer, with the controversial interest rate on loans set to increase to 6.1% in September

With the new rate set to be introduced at the beginning of the new educational term, there is plenty for students to ponder and experts such as Martin Lewis have encouraged them not to panic by attempting to repay their loans ahead of time.

Instead, students should seek out practical ways of boosting their finances, with flexible short-term lenders such as Smart-pig offering a relevant case in point. So how can companies like this and their services benefit students?

1. Short-term Lending Helps Your Primary Loan to Stretch Further

When you receive your student loan, the chances are that most of this money is earmarked for strategic costs that relate directly to your course. This leaves little left in the bank, and students can often run out of funds before the end of the year.

Flexible and low cost loans can help to negate this, however, as when used responsibly they provide instant cash boosts at times when they are needed the most.

This, in turn, allows you to retain as much of your loan fund as possible, which may help with future repayments and your overall money management.

2. Optimise the Time That You Afford to Your Studies

This is an important consideration, as students often look to boost income by maintaining a part-time job.

While this is admirable, it can also compromise the quality of your studies and the time that you have to invest in them. 

In this respect, short-term loans can be used to cover unforeseen or inflated costs of living, without requiring you to increase your hours at work and miss out on vital studying time. So long as you have a source of income to repay this, you can borrow responsibly at any time.

3. Eliminate Gaps Without Funding

Firms like Smart-pig were actually founded by students, meaning that their financial products have been designed to meet the challenges faced by those in higher education.

More specifically, instant and low cost loans can help to bridge gaps in funding, such as when you are waiting for your main student loan to be processed but find yourself in urgent need of supplies. 

You can simply take out a short-term loan to invest in the products that you need, before repaying this once your tuition money and grants have been processed and transferred to your bank.