Most credit offers are aimed at working people with permanent and stable incomes. However, there are specific offers suited to student status, the student loan that we explain in detail in our article.
The student loan is a consumer loan. It is intended to cover the needs of the student throughout his course. Tuition, accommodation, student accommodation facilities or just daily shopping, the student loan can be used to cover expenses of any kind. It is a loan with no specific allocation. However, certain establishments verify that the expenses were made for the actual needs of the student.
What is the profile of the student borrowing?
There are no real restrictions on the profile of the student borrower. I only need to be over 18 years old at the time of the loan. However, for practical reasons, some establishments set a maximum age ranging from 25 to 30 years. On the other hand, the student must provide a deposit that guarantees his engagement. The student’s repayment capacity will be based on the guarantor’s repayment capacity. The same will apply to the debt ratio as well as the borrowing capacity. If the borrower cannot provide a bond, the state will replace it.
How much is the student loan?
Student loans range from 1,500 to 30,000 $ on average. Some institutions, however, grant student loans of up to $ 120,000. The amount of the loan depends essentially on the borrowing capacity of the guarantor provided by the student.
The student has no income allowing him to repay his loan during his years of study. Banks and credit institutions then provide a deferral of one year after the end of studies to begin repayment of the loan. One year is the average time it takes for a freshly graduated student to find a paid job. Other establishments foresee a longer delay of up to 2 years. An extension of the deferral is also possible, especially if the borrower plans to extend his studies. On the other hand, the borrower has the option of repaying his loan in advance, most often without penalty, provided he observes a notice period of 1 month.
How to compare student loan offers?
The first criterion for comparing offers is obviously the interest rate. However, other criteria must be considered, including the deferral period in order to provide you with the time and resources necessary to optimally repay your loan. It is not uncommon for students to take out their student loan at the institution where they open their bank account. Price of the services, cost of the bank card, choose the establishment which offers the best rates.