Applying for an affordable student loan is one sure way of getting around the financial headache of paying for college that students and their parents often face. However, parents and students, especially those applying for loans for the first time, can make small or even huge mistakes that lead to delayed approvals or outright rejections by financial institutions. Here are some of the student loan application mistakes you should avoid if you want your student loan to be approved in a timely fashion.
1. Validity Of Supporting Documents
The financial institutions that provide educational loans in Barbados will often require applicants to attach supporting documents with the loan application. The required supporting documents are customarily spelled out on most financial institutions’ websites. Such documents often include:
● Recent Job Letter
● Pay Slips
● Two Forms of Valid Barbados ID
● Proof of Home Address
● Acceptance Letter
Some of the required documents you must submit will have validity periods assigned to them. Make sure you check the validity requirements for any supporting documents before you submit them with your application.
2. Misunderstanding Shortfall
Oftentimes there will be a difference between how much you can borrow and the total cost you will incur with your studies. Lenders want to know that you can cover that difference and be able to complete your study programme.
Make sure you calculate all your costs (tuition, books, travel, food, accommodation, etc) and are able to show how you will cover any shortfall before applying for a student loan.
3. Misunderstanding Security & Sureties
Depending on the financial institution and the amount you are borrowing, you will be required to put down security and/or have sureties in order to secure the loan. Make sure you read and understand what can be used as security and the eligibility requirements for sureties before submitting your student loan application.
4. Leaving Blank Spaces On Applications
Most online application forms will let you know what fields are required and prevent you from submitting your application if those fields are left blank. In most cases, if the information field is not applicable you can fill in “N/A” to continue.
5. Submitting Inaccurate Information
Submitting inaccurate information is also another common mistake that loan applicants make. Be extra cautious to avoid submitting an email that’s no longer active or inaccurately filling in your details. Ensure that the details you provide match your supporting documents and are correctly spelled.
6. Waiting Too Late To Apply
Some students wait too late to start applying for their student loans. Procrastination is a trait that affects most of us, but in this case, the longer you put off your application, the greater your chances of missing important deadlines. The earlier you submit your application, the more time your financial institution has to communicate with you in the event that they need more details from you or you forgot to include some vital information. Furthermore, financial institutions receive many loan applications, and applying too close to your admission date may result in late approvals and missed deadlines.
7. Providing False Information
Providing false information may seem like a good idea when you think it will help you get approved for a student loan, but being honest is of the utmost importance when applying for a loan because providing false information is a criminal offense and will lead to your application being rejected.
8. Trying To Borrow Too Much Money For Your Programme
Trying to cheat the system by borrowing more than you require for your study programme may lead to the rejection of your application. Some applicants do it to finance other needs but remember that financial institutions process several student loan applications for the same programmes and colleges and are well versed with the average amount required for each programme.