Whereas the student loans are concerned Peer to Peer Loans are the best in bringing the ordinary people together in a lending marketplace. It was a good service started by the Prosper site, which was allowing the customers to cut out the banks and any middleman between the transactions, as it was offering the different financing facilities and various kinds of loans to bid upon. Peer to Peer loans have a lot of benefits for lenders and borrowers, hence it is a good choice for both of them. The Person to Person lending is a beneficial loaning facility in all over the world, hence it can also be considered the best where the student loans are concerned.
There is an also good company i.e. Lending Club, which is offering the peer to peer loans for the students who are looking for financial aid for colleges. But the only thing they inquire is your credit history, and you can’t get the loan without a good credit history. But with the passage of time a lot of companies have come into the market, which are offering the different peer to peer loan facilities, and the Credit Crunch is one of them, which has hit the market with solid peer to peer loan schemes.
Despite of federal student loans, why students are looking for peer to peer loan providing companies, which are offering the quick financing facilities to the students to meet their college expenses. The following are some reasons for which the students are considering peer to peer loans more beneficial.
For Lenders There is:
- always a personal satisfaction that they are helping students in several ways to get education without any problem.
- an experience of using the small budgets amounts to make difference
- a very low default rate in peer to peer loans as compared to federal student aid programs
- a more beneficial and personalized experience than contributing to a fund that is alumni
For Borrowers There are:
- no needs of cosigners to get loan
- deferred payments
- very low and reasonable interest rates
- very low concerned about credit scores whether bad or good
- direct payments and checks, which directly go in the student’s account.
For the above mentioned reasons, the peer to peer loans are not only beneficial for students but also for the lenders, who are providing the quick student loans without inquiring about their background history.