The student loan is a consumer loan which allows a student to calmly finance his studies. This type of funding has become essential for some students. Here is what you need to know about this consumer loan like no other.
Student loan: financing required
In the absence of a sufficiently remunerative study or work grant, some students request a bank loan to finance major expenses such as tuition fees, accommodation or travel abroad.
One academic year costs between USD 10 500 and USD 20 000 (equipment, fee registration, fees health). According to the same sources, the average monthly budget for a student is 681 dollars.
To meet their needs, around a million students work during their studies. In addition to this solution, there is family support.
However, if the student cannot count on the family, recourse to public aid and bank credit quickly becomes necessary and often essential.
Student credit: rates, conditions
As banks and institutions of credit consider students as customers with strong potential, they held their red carpet.
First, the rates are particularly attractive: they are around 2%, 3 or 4 times less than conventional consumer credit.
Then, commercial practices: no credit institution levies application fees and all allow the student loan to be repaid in advance without prepayment allowances.
Finally, they also give their a modulation of loan outstanding of the curriculum: This option is very useful if the student spends part of his studies abroad.
As for the conditions for granting of loans students, they are quite variable depending on the banks, the schools or universities and especially the curriculum.
According to the law, it is enough just to be registered in a university or a school to claim this type of credit, but the students of the large obtain credits on much more advantageous conditions than those of a generalist university.
Student loan: amount, guarantees
The banks lend more to a student enrolled in a school famous rather than a student in the college. Similarly, a student in the master gets a larger amount than a student in the first year of license.
The amount of this loan varies between 1,500 dollars and 45,000 dollars, depending on the lending institution and the repayment period can run from 2 to 10 years.
In addition, most lenders require a deposit in excess of 20,000 dollars, so the guarantor must agree to reimburse the bank if the student defaults.
If the student can not find a guarantor, it may, however, request a credit student guaranteed by the state.