As a college student, you are likely on a tight budget. A single emergency — your car breaks down, childcare falls through, or work cuts your hours — can completely derail your plans and cause you to pause your education.
Emergency student loans can help you pay for those unexpected expenses so you can stay in school and complete your degree. Here’s how they work and how to find them.
What Are Emergency Student Loans?
Your tuition bill is due, but your federal loans haven’t been disbursed yet. The car you use to get to class breaks down. Your professor assigns pricey textbooks that cost more than you budgeted. Financial emergencies can come in many forms, and emergency student loans may help keep you on track despite unexpected circumstances.
If you’re like many students, your finances are already stretched thin. A Trellis Company survey found that 25% of four-year college students ran out of money five or more times in the prior year.
If an unexpected expense arises, emergency student loans can help you cover the costs and stay in school. You can use these loans to pay for things like:
- Food
- Housing
- Childcare
- Medical expenses
- Monthly bills
Emergency student loans are relatively small, usually $1,000 or less, with short repayment terms. While traditional student loans have repayment terms of 20 years, emergency loans typically must be repaid within a few weeks or months.
Emergency student loans are usually no-cosigner loans, and they can have low interest rates. Some lenders may even charge no interest if you repay the loan on time.
Are Emergency Student Loans A Good Idea?
While any form of borrowing comes with some risk, such as the risk of default, emergency student loans can sometimes be a good idea. These loans are generally small, and interest costs are often minimal. An emergency student loan can also help you stay in school and cover essential expenses if an unexpected hurdle arises.
How Long Does It Take to Get Approved for an Emergency Student Loan?
The application process for emergency student loans will likely take only a few minutes, but approval timeframes can vary depending on the lender. Some emergency loans may be disbursed quickly, as these funds are often required to cover essential expenses. If you have questions about how long it will take to disburse your loan, ask your lender directly.
Where to Get Emergency Student Loans
If you need money quickly to pay for your school-required expenses, living costs, or other fees, you can find emergency aid through several sources.
1. Contact Your School’s Financial Aid Office
If your student loans are delayed or a sudden expense comes up. The financial aid representative may have solutions, such as:
- Advancing you a portion of your loans
- Small grants for students with financial need
- School-issued emergency loans
If your financial status or your family’s financial situation changes, you may also be able to appeal your financial aid status if you were denied or not offered much money initially.
You can do this by asking your school for a professional judgment of your aid award. During this process, an administrator may be able to modify your FAFSA data based on your new circumstances. Or your school may determine that extenuating circumstances justify a change to your initial financial aid package.
Some colleges and universities also have funds set aside for emergency student loans. For example:
- Emory University: At Emory University, students in the Laney Graduate School can receive an emergency loan as big as $1,000. The loans must be repaid within 89 days and are interest-free as long as you repay the loan during that term.
- University of Houston: The University of Houston has an emergency loan program that students can use for expenses of $500 or less. The loans do not accrue interest but must be repaid within 45 days if you take them out during the spring and fall semesters. In the summer, repayment is within 30 days.
- University of Pittsburgh: Students at the University of Pittsburgh can apply for an emergency loan of up to $300 if facing financial hardships. You must repay this loan over a three-month term before graduation.
Emergency Direct Loan
Suppose you opt out of taking the total amount of Direct Loans that the Department of Education approves you for. In that case, you can obtain more money than you were eligible for if you face financial hardship later. You can request the distribution of subsidized and unsubsidized student loans you initially opted not to take out.
Emergency PLUS Loan
PLUS Loans are also available to parents of undergrads or graduate students through the Department of Education. You can apply for one if you’ve maxed out your Direct Subsidized and Direct Unsubsidized Loans but still need emergency cash to help cover your college expenses.
3. Search for Help on the Federal Government’s Database
If you’re looking for federal and state assistance programs, you can use the government’s database at Benefits.gov to search by category or location. You can find resources that may help you with subsidized child care, housing, food, and emergency cash relief.
4. Call 2-1-1
United Way Worldwide runs the 2-1-1 helpline and website. When you call, text, or email 2-1-1, a representative can connect you to local community resources and nonprofits that provide financial assistance to students in need.
For example, the 2-1-1 center in Florida may connect Seminole State College students to Destination Graduation. Run by the local United Way chapter, Destination Graduation is a program that gives students emergency financial assistance for unforeseen expenses that could hurt their chances of graduating on time.
Alternatives to Emergency Student Loans
Suppose you’ve tried to get emergency loans for students from your college, area nonprofits, and government agencies but still need help. In that case, another option is to apply for federal or private student loans.
Federal Loans
Federal loans don’t require credit checks for undergraduate borrowers; you can use the money you receive for your tuition and living expenses. The standard repayment term on federal loans is ten years, but some borrowers can qualify for income-driven repayment plans that offer terms as long as 25 years. You will need to submit your FAFSA to be eligible, and it is a good idea to complete your FAFSA early to maximize the benefits available to you when looking for emergency aid for college students.
Private Student Loans
Another option is to apply for private student loans. Unlike federal loans, which have borrower limits for undergraduate students, private lenders usually allow you to borrow up to the total cost of attendance. Depending on the lender, you can take advantage of quick student loan disbursement and use the money to pay for your emergency expenses.
If you apply with a private lender for emergency student loans, you can get a quote without affecting your credit score with ELFI’s Find My Rate tool.
Look for Additional Grants and Scholarships
If you need emergency loans for college students, grants and scholarships could be a better solution to your cash flow issues since the money doesn’t have to be paid back. Since your credit and income don’t matter for scholarships, these are also an excellent option for anyone looking for emergency student loans with no cosigner required.
Several resources can help you get a scholarship or grant — although eligibility can vary based on many factors.
Tuition Payment Extension
If you are worried about not being able to make your tuition payment on time, your school may be willing to work with you to provide an extension or determine a payment plan that works. You should check with your school’s financial aid office for options. It is best to act early so you can work something out before missing a tuition payment.
