Thu. Sep 21st, 2023

Characteristics of the student loan to pay for your studies at a lower cost

It is impossible to continue your studies without having the budget to. Unless, of course, you are lucky enough to get a university grant. Just for the calculation, a year of study in college costs on average in the tens of thousands of euros.

This is not only due to the increasing tuition fees, but also to the rent and other expenses that young students have to go far away from home to continue their studies. Fortunately, student loans are now available to help finance this type of project.

What is a student loan? ?

A student loan is nothing else than an affected loan. You can use the student fees offered by the various faculties as proof of your financial standing. But also your miscellaneous costs associated with your accommodation.

If you have been able to gather solid and reliable evidence, you will have the chance to benefit from a.

Contrary to other types of loans, the student loan does not require any personal contribution to qualify. On the other hand, you will have to think about a guarantor, it is mandatory. A trusted person, usually parents or siblings, who will commit to paying the monthly installments.

The state can also act as a guarantor on your student loan application, but under certain conditions. Notably, you must be under 28 years of age to do so.

Conditions to qualify for a student loan

Not everyone can benefit from a loan to pay for their studies. Already, it is to be accepted in the college, but that is not all. The student credit is one of the rare bank services that are subject to an age limit. Indeed, the offer is only available to those under 30.

If you don’t, you won’t have a chance to get financed by the bank.

However, being a student, less than 30 years old will not always guarantee the success of your loan application. As with any other banking service, the conditions of the loan vary according to the borrower’s profile. For example, the repayment period will be fixed according to the amount requested. It will be the same for the rates.

And the more reliable repayment guarantees you have, the more likely you are to get a favor with the bank.

How does the repayment of a student loan work? ?

Generally speaking, when paying off student loans, you should do so in two stages. This kind of loan is like a bridge loan. Namely, you can initially pay off only the rates of the credit. The capital itself will not be due until after your studies are completed. Needless to say, student credit applies to any field. Banks may also give you an easier time collecting the debt.

Everything will depend on your situation. Some loan contracts are not repayable until years after graduation. It can be for 5 or 10 years, or even longer. Also, you have the option of requesting a rescheduling of repayments up to an average of 7 years after graduation.

This is what experts vulgarly call a “deferred payment.”. But be aware that the longer the loan lasts, the more you have to pay the bank.

And what about prepayment ?

Of course, it is possible to ask for an early repayment of your student loan. This is thanks in part to the Scrivener law. But beware, the steps to do this are not like those of the classic consumer credits.

Among other things, you have to give your banker 1 month’s notice to do this.

In any case, you should know that student loans are available from online banks as well as traditional institutions. By playing the competition, you may be able to negotiate a better rate for your loan. What may not seem important to you now, but could affect your future financial health.

For your information, the repayment rate applicable at the time of execution of the student loan contract is the one at the time the loan is taken out.