The issue of obtaining student loans is acute in the lives of many Americans. College education in the United States is free of charge, so many young Americans have to look for resources to cover their tuition costs.
The most common way is student loans. However, many people are intimidated by interest rates. In some cases, borrowers have to repay an additional several thousand dollars due to interest rates, which increases the credit burden and lengthens the debt repayment period.
Fortunately, you can find loan options without interest rates. In this article, we will look at the best ways to get loans without interest rates.
How to find interest-free student loans?
Student loans are often provided by nonprofit organizations, government agencies and less often by private companies. You can find student loans without interest rates at the following institutions:
- High School Guidance counselors;
- College Financial aid offices;
- Rotary clubs;
- Local nonprofit organizations;
- Chambers of commerce;
- Education Department;
- Religious organizations
Let’s review some foundations that can provide you with interest-free student loans
Bill Raskob Foundation
This foundation is available for American high school students enrolled at an accredited school for the following year. Freshman undergraduates cannot apply for this program, nor can international students.
Foundation of abe and Anne Siebel
This foundation program is available for U.S. citizens who meet the further criteria:
- An applicant must be a Texas resident who graduated a high school in the very state;
- Enrolled full-time in the college accredited in Texas;
- Minimum SAT at 1.100;
- Minimum ACT at 23;
- Minimum GPA at 3.
St. Louis Scholarship Foundation
This program is available to the following candidates:
- Residents of St Louis Metro Area;
- Applicants who attend a nonprofit postsecondary institution;
Pan American Fund of Leo S. Rowe
The Organization of American States Leo S. Rowe Pan American Fund helps Latin America and Caribbean citizens. Unfortunately, they aren’t usually eligible for interest-free student loans in the United States. Students must furthermore meet the following criteria in addition to this requirement:
- Have a valid student visa
- Study in the U.S.-approved post secondary institution and plan to complete their program of study in two years or less.
Evalee C. Schwarz Foundation
You must meet the following criteria to receive an interest-free student loan from Evalee C. Schwarz Charitable Trust for Education:
- Be a citizen of the United States of America.
- Choose a school in your state to attend.
- Have one of the top 16% of test scores in the country
- Apply for financial aid using the Free Application for FAFSA.
Massachusetts Program for No Interest Loans
Residents of Massachusetts who are U.S. citizens or non-eligible citizens under Title IV may be eligible for the Massachusetts No-Interest Loan Program if they meet the following criteria, among others:
- Applicants who have submitted their FAFSA application
- Applicants who are working for a certificate, an associate’s degree, or their first bachelor’s degree;
- Applicants who demonstrate that you have a financial necessity.
Stop by your school’s financial aid office
Many schools today have special financial aid offices which aim to support the students in need. In addition, if you need to receive an interest-free student loan, you may get additional information from your community or college.
Which parameters do you need to meet to qualify for interest-free student loans?
All interest-free student loans have a certain amount of requirements that applicants should meet. Following are the most common criteria:
- You need to prove your financial need;
- You need to complete the FAFSA application;
- You must hold American citizenship;
- You must be a resident of a state in which the program is active;
- You must graduate from a high school in a state where the program is active;
- You must study in a specific field;
- You must have competitive academic records (for instance, GPA);
- You must write a motivation letter explaining your future goal;
- You must pass the interview with the loan provider;
- You must have a cosigner who guarantees your repayment plan.
You must consider that unlike the regular federal and private student loans, these programs have a more competitive procedure of applications. Therefore, you need to apply as soon as possible and ensure that your parameters match the program requirements perfectly.
There are many ways for American citizens to obtain interest-free student loans. Almost every state in our country has programs that provide students with interest-free student loans. If you are sure that your criteria are suitable for applying for such programs, you should do this first and only consider ordinary loans.