How to get an emergency student loan

Unexpected financial challenges can make completing your education seem impossible. In fact, 59% of college students considered dropping out due to financial stress, according to a recent study by Ellucian.

Emergency student loans can provide a financial lifeline, providing immediate funds to cover essential expenses like tuition, housing or medical bills. Read on to learn more about emergency student loans, how they work, and where to find them.

What are emergency student loans?

Emergency student loans are short-term, rapid-response loans designed to help students handle urgent financial needs that can't wait until their next financial aid disbursement or regular loan processing.

Common reasons for needing an emergency student loan include medical emergencies, unexpected housing issues, and changes in family income.

Here's what sets them apart from traditional student loans:

• Faster funding. You can usually get emergency funds within a few business days.
• Lower loan limits. Emergency student loans are relatively small. Many lenders cap the amount you can borrow at $500 or $2,000 per term.
• Shorter repayment terms. You usually have to repay emergency student loans within a few weeks or months, while the standard repayment term for a traditional student loan is generally ten years.

Low or no interest. The interest rates on emergency student loans are usually lower than those available from payday loans or credit card cash advances. In some cases, you may qualify for zero interest as long as you repay the loan on time.

Where to get emergency student loans

Your school's financial aid office

One of the first places to look for an emergency student loan is your school's financial aid office. These loans may be interest-free and available quickly. For example, Arizona State University's Short-Term Loan Program provides $500 per semester for students facing delayed financial aid. The University of California, Los Angeles similarly offers interest-free emergency loans of up to $200 per quarter for eligible students.

Education nonprofits or foundations

Some education-focused nonprofits and foundations offer emergency loans and grants to students in need. These organizations may focus on particular student populations, such as low-income students or those pursuing specific fields of study. For example, National Medical Scholarships (NMS) provides emergency scholarship funding for underrepresented students in their second to fourth years of medical school. The Institute of International Education (IIE) offers emergency funding to international college students facing financial crises.

Eligibility criteria for emergency student loans

Eligibility for emergency student loans varies depending on the loan source, but here are some standard criteria most students will need to meet to qualify.

• Be enrolled and in good academic standing. To qualify for an emergency loan through your school's financial aid office, you typically must be an enrolled student in good academic standing.
• Have immediate, verifiable financial need. Schools often require that you have an immediate, verifiable financial need, such as a medical bill, unexpected housing expense, or other urgent cost. You may have to provide proof of your financial hardship, such as a bill or eviction notice.
• Provide documented eligibility. If the loan program has specific eligibility criteria, you must provide documentation to show you meet that criteria. For example, if you're applying through an educational nonprofit that assists students from low-income families, you may need to provide copies of tax returns or proof of income to document your financial situation.

How to apply for emergency student loans

Here are the typical steps involved when applying for an emergency student loan through your school:

1. Contact your school's financial aid office. Start by reaching out to your school's financial aid office. Explain your situation and ask whether emergency student loans are available. Most schools have a designated process or form for these requests.
2. Gather documentation. If necessary, be prepared to provide proof of your financial emergency, such as medical bills, an eviction notice, or other relevant paperwork.
3. Complete the application. You may need to fill out forms required by the financial aid office or apply online. Be thorough and honest in detailing your financial needs.
4. Follow up. After submitting your application, follow up with the financial aid office to ensure they process your loan application. In many cases, you should be able to get the funds within a few days.

Emergency student loan alternatives

Emergency student loans can provide immediate financial relief, but they're not your only option for dealing with financial hardships while you're in school. Here are a few alternatives to consider.

Seek temporary assistance

Many colleges and universities have short-term assistance programs to support financially distressed students. For example, your school might offer emergency grants, a food pantry, or emergency housing or transportation services to help students in need. Check with your student affairs office or the financial aid office to find out what's available on your campus.

Private student loans

Many banks and online lenders offer private student loans that you can use to cover short-term, unexpected expenses. You can usually get private student loans fast, with same-day approvals. However, disbursement times can vary by lender, and the funds are typically sent to your school to be applied toward outstanding bills. They also may come with higher interest rates than the other options mentioned above.

Negotiate with service providers

If you're facing bills you can't pay, contact your service providers, such as your landlord, utility companies, or private student loan servicers, and explain your situation. Many companies offer hardship programs or are willing to negotiate payment plans, which can give you more time to resolve your financial situation.

Apply for grants and scholarships

Grants and scholarships are the best alternative to emergency loans because you don't have to worry about repaying them. Many schools, private organizations, and government agencies offer emergency grants to help students facing financial hardships, although eligibility criteria might vary from program to program.

Look into community or government resources

Looking into local community and government resources like food banks, housing assistance programs, or the Supplemental Nutrition Assistance Program (SNAP), can provide immediate relief and help stretch your budget during a financial crisis, allowing you to focus on your studies without the added stress of meeting basci needs.

FAQ

Who qualifies for emergency student loans?

Eligibility varies by school and organization, but typically, you need to be an enrolled student facing a verifiable financial hardship. You may also need to show proof of need and maintain good academic standing.

How do emergency student loans work?

Emergency student loans provide quick financial relief by offering short-term funding to cover unexpected expenses. The application and approval processes are fast so you can get the money quickly.

How much can I get in an emergency student loan?

The amount you can borrow depends on the lender and the nature of your financial emergency. Schools often cap emergency loan amounts at $500 to $2,000 per semester or quarter.

How long do I have to repay an emergency student loan?

Repayment terms vary by lender. Most school-based loans require repayment within a few months or within the same semester or academic year.

Can I get an emergency student loan without a cosigner?

Yes, many school-based and nonprofit emergency student loans don't require a cosigner. However, private loans may require a cosigner if you have bad credit or little to no income.