Funding Through My Rich Uncle
*Important notice – Myrichuncle.com is a now-defunct student lender that ceased its lending operations and filed for bankruptcy protection in 2009. The company rose to prominence by challenging the status quo within the student lending industry – a marketplace that has seen tremendous change since MRU became involved. The following reference is maintained as a historical archive.
Offering Different Rates and Benefits
Finding resources to pay for a post-secondary education can be daunting. Say you have worked hard to save money for school, applied for scholarship funding, received help from family members, and you are still coming up short in the finance department. What can you do?
You might want to consider an alternative source of financing, like My Rich Uncle (MRU). MRU provides loans of up to $50,000.00 for undergraduates and $70,000.00 for graduate students.
When processing loan applications, MRU takes into account an applicant's credit history. When an applicant has a co-borrower (an individual who is responsible for making loan payments if the primary borrower defaults on the loan), that individual's credit history is considered. That's pretty standard stuff, but what happens in the case of a young person who has not yet had an opportunity to establish their own credit and/or who does not have a co-borrower? In this situation, MRU will consider a student on his or her merit, taking into account factors such as GPA, desired course of study, and the college or university they are planning on attending.
Federal Student Loans
Through MRU, students and their families can apply for four different types of federal student loans. MRU actually offers discounted interest rates on these types of loans (as much as 1.75% lower than other lenders), which certainly makes a difference when the time comes to repay the loan.
Stafford Loans (Undergraduate and Graduate) are the most common type of federally-funded student loans. They can be subsidized, in which case the government pays the interest on the loan until the student has graduated. In order to qualify for this type of funding, a student must demonstrate financial need. Stafford loans can also be unsubsidized, which means that the borrower will be required to repay all the interest accrued on the funds advanced while attending school, plus the original amount borrowed. (All students, regardless of income level, can apply for an unsubsidized loan.) The interest payments can be deferred until after graduation - the amount of interest will be added to the principal when calculating the loan repayment schedule.
The Parent PLUS Loan option allows parents of dependent children to borrow funds to make the up difference between their child's financial aid package and the amount required to cover the cost of attending school. My Rich Uncle determines eligibility for this type of loan based on the parents' credit history, not on demonstrated financial need.
The Grad Plus Loan program was introduced on July 1, 2006 to provide funds for graduate and professional school students who wish to borrow more than the maximum provided by the Stafford Loan program. It is designed to make up the difference between the student's current funding and the full cost of attending school. Eligibility is not determined by financial need alone; in this case, the student's credit history is also taken into account.
MRU offers private loans in which funds are paid directly to the student (as opposed to being paid to the institution the student is attending). This type of loan can be used for such expenses as textbooks, accommodation, living expenses, lab fees, and educational supplies.
In addition to private loans for both undergraduates and students attending graduate school, private loans are available for those studying Law, Business, Engineering, Medicine, and Dentistry, including the following:
- Residency and Relocation Loans for costs incurred by Medical and Dental residents during this portion of their training
- Board Exam Loans to cover costs associated with studying for Medical or Dental Board exams
- Bar Exam Loans for law students preparing to take the Bar Exam
Study Abroad Loans provide financing for students interested in studying in a foreign country, while Internship Loans are designed to pay for expenses incurred while a student is gaining valuable real-world experience through an internship (some of which are unpaid or pay only a small stipend).
Those interested in applying for loan products through My Rich Uncle can apply online. Visitors to the site have the option of applying for multiple loan products with one application. MRU will seek federal funding for an applicant first due to the fact that interest rates on government loans are lower than private ones; if further funding is needed, a private loan may be used to make up the difference.