Expenditures and low income: student life is a balancing act as soon as you look at finances. Not everyone has the chance to get a scholarship or make a fortune with a small student job. All is not lost either, whether to develop his studio or pay an expensive master in a business school.
It can be daunting to be 18 with a whole life ahead, but no money. Never mind, banks are also there to help young people. Once you are of age, nothing prevents you from applying for a student loan with a bank. But as it is not guaranteed to obtain it, it is better to put all the chances on one’s side.
The student loan is financing allowing a student to finance his studies but to obtain this sum, he must justify guarantees such as sureties or guarantors find out how to get a loan to finance his studies.
What does a student loan finance?
If the word student is indeed present in the title, nothing requires you to detail your banker what you intend to do with the money. Credit should not be taken lightly, however, so it is better to meet a specific need.
Among the most common is for the payment of tuition fee, but also can be used for the purchase of a computer, a car, the payment of a deposit for housing and so on
The amount of student loans can range from a few thousand dollars to $50 000, in the best cases. As with any credit, the strength of the file plays a vital role in its attribution.
How to get a student loan?
Some large institutions, including business schools, have agreements with some banks. The tuition fees are very high, but it is possible to obtain credit at unbeatable rates in partner banks, which is considered a better way for them to capture a promising clientele.
“The more advanced you are in your studies, and the better your institution is, the more you have a chance of getting a high amount and an attractive rate.”
As with a traditional loan, income is scrutinized, and this gives a good point for students who have a little job. However, a parental guarantee may suffice, and herparents’ incomes are then studied, and they agree to repay the loan in case of default of their child.
Not everyone can claim parental security, and some studies leave little time for a job. Fortunately, there are also solutions for this type of profile. Since the establishment of the student loan guaranteed by the State, it can vouch for some students. However, you must fulfill some conditions:
- To be enrolled in an institution
- To be under 28
- Being a legal citizen of the jurisdiction that the loan covers
Flexibility in repayment
If one borrows, it is for lack of money. It is therefore not given to all to be able to repay his loan every month, hence the possibility of proceeding to a loan franchise.
This consists of pushing back, usually from two to six years, the start of repayment. With an entire franchise, we do not refund anything at first. With a partial deductible, we start by paying interest and possibly insurance. The latter is obviously a less expensive formula than the former.
And if you change your mind en route, no problem. You have the right to change the repayment term, or even to make an early repayment, all without charge.
The 10 critical tips for obtaining student loan:
- Do not sign anything until you have an idea of the scholarships you will receive. Getting a scholarship will allow you to reduce the loan and the repayment period.
- Make your total projected budget. Many articles about the budget needed to study in each country it’s available, enjoy! It’s up to you to adapt the calculation to your needs, to get an idea of the total amount to borrow.
- Ask your friends for advice. If you ever think the amount you believe to be too high or too low, ask for information around you.
- Never borrow more than you need. The money will have to be repaid later, and having too much money can push you to excess.
- Do not forget student jobs as an alternative to borrowing. Although foreign students often have to have a minimum amount of money to live a year without working, extras can be funded by a student job on the spot, and the loan covers only the minimum.
- Ask for your loan as soon as possible. Once the costs are calculated with certainty, ask for your loan to pay the university fees.
- Follow the instructions correctly to obtain your loan. Each mistake can delay the securing of the loan, and in some cases be penalizing.
- Keep an idea of what you will have to repay later. Ask about the monthly payments to be paid at the end of your studies, or see even before depending on the type of contract.
- Do not forget the university registration fees in calculating the budget. This is often the most essential part, and ignoring them would be fatal to your project.
- Think of an alternative solution that allows you to pay during your studies. If you find a student job, try to have a contract that will enable you to start paying back when you can.
Finally, for your research, do not hesitate to look at the offer in France but also in the host country. Some countries offer zero-rated student loans that are therefore only indexed to inflation and thus allow you to repay only what you have borrowed.
With all of these tips, you have an overall idea of how your budget is prepared, as well as how much to borrow.