Where to find interest-free student loans

Where to seek out interest-free student loans

An interest-free student loan might help you break up the price of faculty with out having to pay further to borrow cash. While it’s not free like a scholarship or grant, it’s nonetheless inexpensive than even a federal student loan. However, purposes could be aggressive and have a tendency to go to students with essentially the most monetary want — not everybody can qualify.

An interest-free student loan is a loan to pay for training bills with a 0% rate of interest — and infrequently no charges. You can often borrow between $5,000 and $10,000 per educational 12 months, relying on want. Terms sometimes final 10 years — with both mounted repayments or repayments that improve over time.

How do interest-free student loans work?

Interest-free student loans work like a cross between a scholarship or grant and a student loan. You must repay the cash you obtain in month-to-month installments, as you’ll every other loan.

However, the applying course of is nearer to what you’d discover with a scholarship. You often want to supply a brief essay, letters of advice, educational transcripts and take a look at scores fairly than move a credit and revenue verify. Some purposes additionally require an interview.

Eligibility is commonly based mostly on monetary want and educational advantage, so bigger loans are inclined to go to lower-earning households and high-achieving students.

The Bill Raskob Foundation Varies by monetary want
  • Sophomore or greater
  • Enrolled in a degree-granting bachelor’s diploma program or greater, not together with medical faculty
  • US citizen
  • Attend an accredited, nonprofit college within the US
May fifteenth
The Abe and Annie Seibel Foundation $8,000 per 12 months
  • Texas resident and US citizen
  • Graduate of a Texas highschool
  • Enrolled as a full-time student in an eligible Texas bachelor’s diploma program
  • Two cosigners
  • Meet GPA and take a look at rating necessities
  • Demonstrated monetary want
  • Must not be affiliated with Frost Bank, the Abe and Annie Seibel Foundation
February twenty eighth
The Scholarship Foundation of St. Louis $11,000 per 12 months
  • Live within the St. Louis metropolitan space for not less than two years
  • 2.0 GPA or greater
  • High faculty diploma or equal
  • Enrolled in a nonprofit degree-granting program within the US
  • Demonstrated monetary want
April fifteenth
Military Officers Association of America (MOAA) $7,000 per 12 months
  • Parent have to be eligible for MOAA membership or be an active-duty, Reserve, National Guard or retired enlisted navy service member
  • Under 24 years previous
  • 3.0 highschool GPA or greater
  • Registered for Selective Service — male candidates solely
  • Attend accredited program as a full-time student
  • Not attending a US navy academy or academy prep faculty
  • Parent have to be on prime of their MOAA membership dues
March 1
Evalee C. Schwarz Charitable Trust for Education
$5,000 to $15,000 per 12 months — with a lifetime cap of $60,000
  • Standardized take a look at scores in prime 15% nationwide
  • Eligible for a federal Pell Grant
  • Attend faculty in your state of residence
  • US citizen
  • Not a regulation student
April tenth
Central Scholarship
Varies
  • US citizen or everlasting resident
  • Maryland resident
  • Total family revenue below $90,000
  • 2.8 GPA or greater
  • Cosigner
  • Enrolled in or planning to attend an accredited degree-granting program full time
April 1st
Massachusetts No-Interest Loan Program
$1,000 to $4,000 per 12 months — with a lifetime restrict of $20,000
  • Massachusetts resident for not less than one 12 months
  • Enrolled full time in a certificates, affiliate or bachelor’s diploma program
  • Attend a Title IV faculty
  • No earlier bachelor’s diploma or equal
  • Submitted the FAFSA
  • Eligible for need-based federal funding
  • Maintain passable educational progress
  • US citizen or eligible noncitizen per the Department of Education standards
  • No defaults on federal or state student loans
Not said
Leo S. Rowe Pan American Fund
$15,000 lifetime restrict
  • Citizen of a Latin American or Caribbean Organization of American States (OAS) member nation
  • Accepted or already learning at an accredited college within the US
  • Valid student visa
  • Guarantor who’s a US citizen or everlasting resident
No deadline

1. The Bill Raskob Foundation

This interest-free student loan is accessible to any US citizen enrolled in a degree-granting program — excluding medical students. It’s a need-based loan, so how a lot you obtain depends upon your loved ones’s funds. The common loan is round $5,000.

Repayments usually begin six months after leaving faculty, and the muse determines your loan time period after reviewing your utility. You can apply by filling out and mailing within the utility, which incorporates monetary statements, transcripts, an essay, references and different details about your faculty.

2. The Abe and Annie Seibel Foundation

This need- and merit-based loan is accessible to Texas undergraduates attending faculty of their dwelling state. Graduating highschool seniors have to be within the prime 10% of their class to qualify and have not less than an 1100 SAT rating or a 23 ACT rating. College candidates should have a minimal 3.0 GPA to qualify.

While the applying is due on the finish of February, you may need higher luck qualifying should you apply as quickly as purposes open on January 1st. If accepted, repayments begin instantly at a minimal of $50 per 30 days whilst you’re at school and in the course of the six-month grace interval. Once the grace interval is up, full repayments kick in for a nine-year time period.

3. The Scholarship Foundation of St. Louis

Each 12 months, 500 residents of the St. Louis metropolitan space obtain this need-based loan. It’s designed for students with distinctive monetary want, so households anticipated to contribute greater than $15,000 after finishing the FAFSA may need bother qualifying.

While this loan is primarily for undergraduates, you too can use it for a graduate program should you’ve beforehand acquired funding from the muse. All educational fields are eligible besides ministry. You can apply on-line via Scholarship Central. Repayments start after a one-year grace interval following commencement, and phrases run for 5 years.

4. MOAA

This need- and merit-based scholarship is accessible to youngsters of navy households pursuing their first undergraduate diploma. MOAA opinions purposes based mostly in your educational file, extracurriculars and monetary want.

If you qualify, you’ll be able to renew the loan for as much as 5 years, so long as you’re registered as a full-time student. Unlike another interest-free loan applications, you’ll be able to apply and repay your loan on-line. Renewal additionally doesn’t require a full utility — you simply have to add your transcript and submit a renewal kind on-line.

5. Evalee C. Schwarz Charitable Trust for Education

This merit- and need-based loan is among the few out there to each undergraduate and graduate students. But eligibility necessities could be laborious to fulfill: You should have a excessive class rating and be within the prime 15% of nationwide standardized checks. Your household can also’t be anticipated to contribute greater than $5,486 after finishing the FAFSA — which means you need to full the FAFSA earlier than you’ll be able to apply for this loan.

You can obtain the applying from the Evalee C. Schwarz Trust for Education web site. In addition to finishing and mailing within the kind, candidates should write a private essay and submit three letters of advice. All loans include a 10-year graduated reimbursement plan with month-to-month repayments that improve annually.

6. Central Scholarship

This need-based loan is accessible to low-income students in Maryland or the Baltimore space. You can use it pay for an undergraduate, graduate or skilled diploma. How a lot you obtain varies by want, although most debtors get $4,000 per 12 months. Central Scholarship has a strict cosigner requirement, so skip this one should you don’t have anybody to share the accountability of repaying the loan.

The utility is accessible on-line and spots are restricted — you’re extra prone to qualify should you get it in earlier. Like the Schwarz Trust loan, this feature comes with a graduated 10-year reimbursement plan.

7. Massachusetts No-Interest Loan Program

Massachusetts residents can discover no-interest funding via this need-based, state-funded loan program. The utility closely depends on the FAFSA, so that you may need to apply for federal student support first. Only undergraduates pursuing a certificates, affiliate or bachelor’s diploma are eligible — and you may’t use it for a second diploma.

Reach out to your faculty’s monetary support workplace for extra particulars on deadlines and the way it works. Loans include a 10-year reimbursement plan.

8. Leo S. Rowe Pan American Fund

This loan program is accessible to Latin American and Caribbean residents learning within the US. It’s one of many few interest-free choices for worldwide students, although you need to have a US citizen or everlasting resident assure your loan — just like a cosigner. You can use this loan to pay for an undergraduate, graduate or skilled diploma, in addition to technical coaching or educational analysis. For a non-degree program, you need to full one semester of your program earlier than you grow to be eligible.

Unlike the opposite interest-free loans on this listing, there’s no deadline to use. Funding comes from the OAS and goes on to the student, fairly than the college.

Generally, interest-free student loans can be found via nonprofits, foundations and government-sponsored organizations. Some faculties like Occidental College and Claremont McKenna College provide interest-free student loans as a part of their monetary support package deal.

The greatest place to get began in your student loan search is to succeed in out to your faculty’s monetary support workplace. Many of those loan applications can be found based mostly in your state of residency and the place you attend faculty. Some are additionally based mostly on educational efficiency and pursuits. Your faculty’s monetary support workplace can suggest particular applications you may qualify for.

It varies by program, although you usually have to comply with these steps:

  1. Fill out the FAFSA. Since many applications are based mostly on want, you sometimes have to submit the FAFSA to determine should you’re even eligible.
  2. Read the applying guidelines. Interest-free loans are inclined to require numerous paperwork and extra types on prime of the usual utility.
  3. Ask for suggestions. Generally, you’ll want to present as much as three suggestions from academics, former employers or anybody else who’s labored with you in an instructional or skilled capability.
  4. Find a cosigner — or two. While they may not verify your credit, many interest-free student loan applications require you to use with somebody who agrees to share the accountability of repaying the loan.
  5. Write your private assertion. Most purposes require you to submit a brief essay a few previous expertise or your future targets — just like the one you needed to write when making use of to varsity.
  6. Gather your paperwork. These may embrace your loved ones’s tax returns alongside along with your monetary support award letter, transcripts and standardized take a look at scores.
  7. Fill out and submit the applying kind. Some organizations provide paper purposes, which you’ll obtain on their web site and mail in. Others have a web based utility.

What occurs after I submit the applying?

What occurs subsequent depends upon the group providing the loan. Often, candidates undergo a number of rounds of qualification. If you make it previous the primary or second minimize, you may be requested to come back in for an interview. Typically, you discover out should you qualify for the loan in late spring or early summer time.

Funds often go on to your faculty, although in some instances you may obtain the verify your self. After tuition and charges are lined, you’ll be able to decide up your student loan refund verify out of your faculty’s bursar workplace to cowl private bills.

Having bother qualifying for interest-free student loans? Consider one in all these choices as an alternative:

  • Tuition cost plans. Many faculties help you break up tuition and charges into month-to-month installments — often for a small price. Payments are sometimes due within the months main as much as the semester or after it begins.
  • Scholarships and grants. Typically based mostly on educational advantage or monetary want, these have a tendency to come back in small quantities and have an identical utility to interest-free student loans — however you don’t must pay them again.
  • Income share agreements (ISAs). Some faculties like Purdue provide ISAs, the place students conform to pay a share of their future revenue for a set variety of years as an alternative of ordinary tuition.
  • Work-study applications. The Federal Work-Study program lets you work a part-time campus job in change for partial tuition cost.

Interest-free student loans may be the following greatest deal after scholarships, grants and work-study applications. But the applying sometimes requires quite a lot of effort and time. In some instances, it may be value spending that vitality making use of for support that you just don’t have to repay.

You can study extra about your monetary support choices by trying out our information to student loans.





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