Is a Payday Loan Right for a Student to use?

Students often have a lot of financial concerns. They will probably have a student loan and the money will be enough to cover the fees of their course. They may also have some money from a loan that will cover some of their living expenses but this is often not enough once rent is paid or as it is means tested students from better off families do not get as much. This means that it can be tricky to cope with the money that is available and it can be tempting to borrow. A payday loan might be something that they could consider alongside other borrowing options.

Would a payday loan be offered? – payday loans are usually offered to people that have a regular income and it has to be repaid on their pay day. This means that it could be assumed that students would not be able to get one because they do not have a regular income. However, there will be some students that will work part-time so that they have money to help them manage and this could be enough for them to be considered for a payday loan. It may also be the case that they are due a loan payment and need some money to keep them going until it arrives and so a payday loan or similar may be allowed. It may be possible that a payday loan will therefore only be offered in certain circumstances but there is a chance that it will be.

Could a student afford a payday loan? – it is important with any loan that you consider whether it is affordable and can be repaid. Students have a reputation of not having much money and so thinking about whether they can afford a loan may seem obvious that they will not be able to. However, having money from their loan and possibly form grants as well and if they have a part-time job then it could be something that they will be able to afford. They will have to do the calculations though and work out whether they will able to afford to repay the loan. It should be easy enough for them to be able to look at how much money the have and will get and how much they need to pay out both for the loan repayment and other things and this will allow them to be able to calculate if it will be affordable.

Would a payday loan be the best option? – it is also wise for them to think about if this is the best option for them. With all loans there is a financial cost and this needs to be considered. It is worth calculating how much it will cost and then thinking about whether this would seem to be good value for money. It might also be that there are other options that can be considered such as going without the items that the money is being used to buy, waiting and saving up for it, using savings or considering a different type of loan. There are lots of things to think about but it is worth thinking hard about it. It might even be worth students discussing the issue with their parents. Although students are old enough to be independent, it is likely that they will still be relying on their parents financially quite heavily. Therefore, if they are struggling it can be worth them thinking about seeing their parents can help them. It might be that they will be able to help out financially or that they will be able to give advice on the best way to get out of the particular situation.

So, although it might not be that likely that a student could get offered a payday loan, there is a possibility. If this is the case they need to think hard about whether it is something that they can afford to repay and whether it is the best option for them. It is worth taking time to think as it can be all too easy to get carried away with a loan like this. The payday loan can often be arranged very quickly and within a few hours you might find that you have spent the money before you have even had a proper chance to decide whether it is the right thing for you to do. So, it is important to make sure that a hasty decision is not made and therefore discussing it with someone, even if it is not parents, could help you to make sure that you are making the right decision. Just delaying the decision for a few hours could be enough to make sure that it is the right decision and that there are no other alternatives which could be better.