The word ‘interest’ has two meanings. One that is liked by everyone and the other which is not-so liked by everyone. As long as ‘interest’ implies curiosity, we are good. You showing interest in a particular topic is good, someone showing interest in you is great but ‘interest’ associated with finance is not very well received by anyone. After all, who would want to pay an additional sum on top of what they originally borrowed? I know the pain that interest rates inflict on students while searching for student loans. Hence, in this article, I will be explaining to you a secret tool that will help you escape the clutches of exorbitant interest rates – Interest-Free Loans for Students.
Adding interest hooks you onto thousands — or tens of thousands — of dollars more in education debt. Thankfully there exist many Student Education Loans with 0% Interest. That’s right, technically an interest-free education loan. Scoring such a loan brings down your debt drastically. If you know the power of compounding then you already realise its importance. In ordinary loans, you can end up paying up to 170% of your initial sum. That means, 70% of the returned sum was just piled up interest. You could save this money by choosing a no-interest student loan.
Interest-free loans for students are exactly what they sound like: They don’t accrue interest over time. Hence, the amount you initially borrow is the amount you finally repay. Interest-free college loans have to be repaid just like traditional federal or private student loans. Of course, these unique loans are not easy to find (or simple to get), but they are absolutely worth the shot.
How To Find Interest-Free Loans For Students
Just like scholarships and grants, interest-free student loans are typically offered by nonprofit organisations, private companies and government agencies. The most effective way to discover interest-free loans for students is to start by checking with the following sources:
- College financial aid offices
- High school guidance counselors
- Local chambers of commerce
- Local nonprofits
- State education departments
- Rotary clubs
- Religious organisations
- Fraternities or sororities
Bonus Tip: Note that some interest-free student loans are limited to residents of certain geographic areas. Thus, it will be fruitful if you start your search closer to home.
Don’t forget to read: How Do Student Loans Work?
To assist you ahead with your search, I have listed down the organisations that extend this type of loan. Read till the end to make sure you don’t miss out on any of the available options.
Foundations Offering Interest-Free Loans For Students
Bill Raskob Foundation
If you are a US citizen enrolled at an accredited school for the upcoming year then you are eligible to get a no-interest student loan from the Bill Raskob Foundation.
Note: Undergraduates in their freshman year are not eligible.
Abe and Annie Seibel Foundation
You can get an Interest-free student loan from the Abe and Annie Seibel Foundation if you are a US citizen and meet the following requirements:
- Texas resident who graduated from a high school in the state
- Enrolled full time at an accredited Texas college while working towards your first bachelor’s degree
- Graduated in the top 10% of your class or with an SAT score of at least 1,100 or an ACT score of at least 23
- Have a college GPA of at least 3.0
Recommended Reading: What You Don’t Know About Student Loans Can Really Hurt!
The Scholarship Foundation of St. Louis
Interest-free loans for students are provided to those students who are:
- From the St. Louis metropolitan region
- Attending an accredited, nonprofit postsecondary institution
- Majoring in anything except ministry
Your Financial Aid Office
This is not an organisation but a place where you can find many opportunities. Your school’s financial aid office may be in touch with a lot of foundations that offer help at a local level. Enquire at this place to check if you can get one.
Associations Offering Interest-Free Loans For Students
Military Officers Association of America
To qualify for a no-interest loan from the Military Officers Association of America (MOAA), you must be a child of active duty, former or retired military officer eligible for MOAA membership. Or you should be a child of active duty, Reserve, National Guard or retired enlisted military personnel.
There are various other requirements as well which you can check here: Detailed Requirement List (MOAA)
International Association of Jewish Free Loans
The International Association of Jewish Free Loans (IAJFL) collaborates with many interest-free lending associations. These associations issue interest-free student loans for a variety of purposes, including higher education. You can find an agency here: IAJFL Agency List
Organisations Offering Interest-Free Loans For Students
Leo S. Rowe Pan American Fund
Charitable Trusts Offering Interest-Free Loans For Students
Evalee C. Schwarz Charitable Trust for Education
Colleges Offering Interest-Free Loans For Students
- Occidental College
- Claremont McKenna College
State-Specific Programs Offering Interest-Free Loans For Students
- Massachusetts No-Interest Loan Program
- Central Scholarship (Maryland)
Hope you have many options now for a student education loan with 0% interest. If you are looking for student loans and end up struggling to find the perfect one for yourself then all you need to do is fill this form
Thank you for reading this blog on ‘Interest-Free Loans for Students’. If you enjoyed reading this blog and would like to continue reading more about student loans then do check out our following blogs.