How to use a graduate loan

As a graduate who has just left college or university you will have an exciting time ahead of you, whether you decide to get stuck in and start work right away or whether you decide you want to travel and see the world before you settle into a career.

There are a number of options available to graduates, and this includes travelling for some time before starting a job, breaking into the career of your choice immediately, or taking any type of job just to get experience and earn a little cash before spending time trying to break into your dream career.

Whatever you decide to do the chances are that you are going to need money to do it. If you plan to travel you will definitely need access to funds.

Even if you decide to get straight to work you will still need to be able to access some form of finance, as you will need clothes, money for travel, and other necessities to help you get to and perform in your new job when the time comes.

Life as a full time student isn’t a lucrative one, and therefore it is unlikely that you are going to have a stash of spare money put aside to fund your travel or keep you going whilst you wait for your earnings to start coming in.

This is where graduate loans can prove very useful, and these loans are targeted specifically at new graduates who are looking to raise finance to either help them secure work or to give them the opportunity to travel. Below are some commonly asked questions relating to graduate loans, which may help to give you a better understanding of this type of finance:

What is a graduate loan?

A graduate loan is a loan that is designed for new graduates that have just graduated from university having completed a full time further education. These loans are for graduates that intend to take some time out and travel or are starting work in a new job right away.

What are the benefits of graduate loans?

The main benefit of a graduate loan is that it gives you the opportunity to get on right away once you graduate from university. As a student you have probably not been able to save much money if any at all, and therefore the finances from a graduate loan will prove invaluable.

These loans also enable you to build links with a particular bank or lender, which can prove invaluable in years to come, when you need money for purchasing a property or car, or when you need to open a savings account or look at investments.

What can the funds from a graduate loan be used for?

These graduate loans are designed for those that either plan to get to work right away or those that plan to travel before starting work. Therefore you can use the funds to pay for your travel and expenses, or you can use the money from the loan to buy clothes, pay for travel to work etc, and fund day to day costs until you get some savings from your earnings.

How do these loans work?

Like any other loan you borrow the money and repay it over the specified period. However, many lenders will offer you the loan based on a job offer in writing, and will then allow you to defer payments for a specified period, which could be a year or more, so that you get time to start earning and get some savings underway before you have to start making repayments.

The eligibility requirements and other areas of these graduate loans can vary from lender to lender based on their own lending criteria, so you will need to look at a number of lenders.

What are the interest rates like?

With graduate loans you can get competitive rates of interest, but these interest rates do vary from one lender to another so you need to make sure that you take the time to compare different lenders in order to find the lowest rate.

Also look at other areas, such as how long you can defer repayments for, what the repayment period is, and how much you will have to pay each month once you do start making repayments. Also check the eligibility requirements so that you do not make wasted applications for finance that you may not be eligible for.

Where can I find graduate loans?

Graduate loans are available from a range of lenders, and therefore you can enjoy plenty of choice when it comes to finding a suitable graduate loan.

You can compare the different rates and lenders with ease and convenience online, which makes it simpler to get the graduate finance that you need to fund your travel or tide you over as you get settled into a job.