Borrowing Money After College

Many students form addictions in college, and I had a bad one. Everyone around me was doing it too; it was so easy. So accessible. I started to want it more, to need it. I’d get one supply and run through it in a night, leaving me begging for another dose the next day.

So what was my drug of choice? Borrowed money. And it’s one of the most dangerous things to become dependent on, especially in college. Pushers love to throw money at students like they’re a pack of starved hyenas. Everyone’s primed to borrow hugely irresponsible amounts in the name of “education,” and few are above pocketing the “leftovers.”

But what happens when you graduate? Take it from me—banks are not lining up to loan you the $20,000 you want to pimp out our new pad with a flat-screen TV, surround sound, mirrored ceilings, and a bidet .

However, if you need to borrow money wisely (like to pay that broker’s fee and security deposit on your new apartment), there are resources out there to help you. Here are some options to check out:

The Fam

Like your naked baby pictures, loans are best kept in the family. A banker probably won’t love you like a brother, and if your family is capable and willing, you probably won’t find better terms anywhere else. Don’t be too proud to ask for help. Your family might prefer that you borrow from them rather than get suckered into a high interest deal with a sheisty lender. Just make sure to follow the IRS rules on loans to family members.

Bank Loan

This early in the game, it isn’t likely that recent grads will need (let alone qualify for) a bank loan.

But if we want to start a business or buy a car, it’s worth looking into. Just be prepared to answer a lot of questions and be scrutinized intensely. Traditionally, you don’t apply for bank loans the way you do for credit cards. No “instant approvals” or easy online applications. Instead, you have to sit down with a banker who assesses our credit, collateral, and character before handing out a dime.

Non-traditionally, you could visit a site like LendingTree.com to see how you fare amongst lenders who “compete” for your business. The process is easy and free, so it's a good starting point to see if you get any bites. However, the site sets minimum benchmarks for certain loans so you might not even be able to use it, and bare in mind that you may still get better terms somewhere else.

Peer to Peer Lending Sites

P2P networks are no longer just useful for pirating the new Lil Wayne album. Now there are P2P lending sites like Prosper.com. Prosper is part Myspace, part eBay. Borrowers create personal profiles (with pics!) that tell their personal story of why they need a loan. Then lenders, if moved, bid to help them out! Also, borrowers can have multiple lenders, not just one. Just say you are stuck in Nigeria trying to save millions of dollars from a corrupt government and people will be fighting over you before you know it!