Guide to Latino Student Loans

The Hispanic community in the U.S. has had to face some unfortunate circumstances. They face many obstacles due to a lack of immigration documentation. They also have to deal with racial barriers in U.S. immigration law as caused by the Trump administration.

Despite these issues, the Hispanic community still aspires to a better life. They also pursue better opportunities by enrolling in institutions of higher education. But how can a community with so much opposing them still afford tuition? Are there ways to finance a degree when you are relatively undocumented? Can immigrants without a Social Security Number still get access to credit to pay tuition fees?

Latino student loans help thousands of Hispanics to pursue their dreams by financing their higher education. You could possibly qualify for a Latino student loan, but here follows some information and tips you need before you apply for your student loan.

The Truth about Latino Students and College Debt

Credit is available to those who qualify for it. No one can get a loan without fulfilling some eligibility criteria. So many prospective Latino students are immediately disqualified from certain loan options. Not only that, many Latino families are prone to become over-indebted once they accept a student loan.

In 2012, 63% of Latino students who graduate with a bachelor’s degree from a public university had student debt. This is proportionate to the number of white students who graduate with debt. But according to stats from 2009 31% of Latino students with debt had to drop out due to financial pressure brought on by student debt.

As this trend points out, it may place your financial wellbeing under severe pressure if you accept a student loan. You must choose wisely and only opt for the courses you can afford, and then choose the best and cheapest loan available to finance your qualification. It’s helpful to choose a course you can finish since it grants you the opportunity to earn an income in the profession you have qualified for. A loan is supposed to be a tool to build your life. Work smartly with your finances when you get a loan and use it as your key to greater success.

You can get many types of loans to help finance your education. There are personal loans and student loans to name a few. These types of loans work in different ways but they boil down to the same principles. Each has a principal loan amount, an interest rate, and a loan term (the number of payments required to settle the loan). Let’s have a look at federal student loans as an example.

Do Latino Students Qualify for Federal Student Aid?

Federal student loans are made by the government but offered by agencies. There are many types of student loans with key differences. Federal student aid is generally regarded as a cheaper form of credit when compared to private loans (loans offered by private lenders).

But there is a big eligibility criterion that determines whether someone can apply for these loans. Those who aren’t eligible for federal student aid are forced to look for alternative solutions. Let’s look at two groups within the Hispanic community in the U.S. and see whether they are eligible for federal student aid.

Hispanic Students with American Citizenship

Federal student aid is only available to American citizens and permanent residents. Only people from the U.S. or those who at least own a Green Card could be eligible for federal student aid. These loans could fulfill the role of Latino student loans if the applicants are eligible. The different types of loans have varying eligibility criteria. You’ll have to do your own research on the types of FAFSA student aid available. Go through the different options to find those for which you qualify.

If you are a U.S. citizen or a Green Card holder you may be able to get federal student aid. It’s also important to note whether your school is recognized by the government. Only students from recognized higher education institutions are eligible for federal student aid.

Hispanic Immigrants

Hispanic immigrants have a tough time in the U.S. since they have so many obstacles to overcome. They don’t have citizenship, they probably don’t have a Green Card yet and as a result, are ineligible for federal student aid. They are forced to look for Latino student loans of a different kind. Their lack of documentation could also be a stumbling block once they start searching for private student aid. Traditional banks and lenders refrain from helping undocumented people. The Latino community who can’t comply with these eligibility criteria suffer a type of economic exclusion and must find another form of credit that could help to finance their higher education.

There are fortunately more options available. The private credit market also has non-traditional lenders like credit unions and online lenders who could offer a type of solution that will fit the situation. Personal loans could easily double up as Latino student loans. You could even get a DACA loan if you qualify. Let’s see how it works.

Personal Loans for Latino Student

Personal loans are for whatever you need. You can use it to buy a car, you can buy a property, and you could even finance education with it. Some lenders won’t even ask why you need the loan. This is a perfect solution for the Latino community who can’t comply with the eligibility criteria required by federal student aid.

Personal loans can also function as Latino student loans. It has an APR and it requires monthly installments. Even immigrants without a credit score could be eligible for personal loans. Some online lenders don’t even require them to have a cosigner guarantee the loan.

You could apply for personal loans to find the best and cheapest option to finance your higher education. Especially if you aren’t eligible for federal student aid.

You can read about financial aid for undocumented students here.

Scholarships and Grants for Latino Students

People from the Latino community could still be eligible for grants and scholarships. If you work hard you could replace your student loans with grants and scholarships. The unique challenges you face as a member of the Latino community are well clear to many schools. Challenges like:

• Family needs
• First-generation college students
• Language barriers
• Children of migrant workers.

Many schools still commit in some way to help those who are in need by providing scholarships and grants. You could perhaps be eligible for a grant or scholarship at the school in which you enroll. Latino scholarships and grants are possible. They may perhaps be merit-based, but you could get the help you need from such an opportunity.

Next Steps

Your next best step is to determine whether you are eligible for federal student aid. These student loans are the cheapest loans available since they are made by the government. Find ways to get your Green Card if possible to become eligible for this type of credit. It is the best type of student loan.

But you don’t have to fret about your future yet. You could still be eligible for Latino student loans from private lenders in the form of personal loans. Your hard work and dedication determine whether you get the loan opportunities you want.

Apply and get accepted at a recognized higher education institution. Then apply for the types of student aid you need and qualify for.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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