Increasingly, young people are struggling with financial problems. This is associated with greater boldness. desire for independence and independence. One of the help options is a student loan , which is not very popular. Student loan 2018 has fallen in the rankings, making it even less frequent than in previous years. So why are we giving up it, since it is one of the most popular solutions in other European countries? Is the view that it is a safe start aid true? Is it worth taking it in Poland?
What is consumer credit?
Simply put – this is a type of financing that is intended to help young people studying and starting an independent life. We usually take it for expenses related to learning, starting from commuting, buying educational materials and accommodation. The bolder students even decide to invest, setting up their first, own business. Student loan is offered by the most popular banks.
Advantages of a student loan
- low interest rate, especially when we compare it with other non-student loans. On average, it amounts to less than 1% per annum. Such a small percentage does not negatively affect our portfolio and further expenses
- installments are set individually, in line with our needs and, more importantly, financial possibilities
- in the case of a scholarship or good academic performance, the bank may write off part of our arrears. Attractive offers are up to 20% of the total arrears.
The repayment can be extended for a period after graduation. In this case, we are talking about even 2 years.
- there is refinancing if we consider the borrowing costs to be too high for us. The bank will offer to suspend repayment for a year or … cancel the outstanding loan
- It is considered one of the safer and more attractive in the credit industry
Who is the student loan for?
As the name suggests – for a person who has the status of a student and has documents that confirm this status. Under the name of a student, we mean both those at private and public universities. This applies to both full-time and part-time modes, starting from 3 years as well as 5 years of doctoral studies. When applying for a bachelor’s and master’s degree we cannot be older than 25 years.
The second condition is the budget for each member of our family. In previous years, the maximum budget was about $ 2,500 per unit. However, it is worth remembering that every year this amount is set anew and significantly different. This provision results from the fact that the purpose of a student loan is to help the poorest students who really need financial help. This form of support is not therefore targeted at people with a significant monthly budget.
To get a student loan you need to prepare several important documents:
- completed application, which will be submitted to the bank to obtain a loan
- confirmation of the income ceiling reached for family members
- documents confirming the status of a student – including a certificate from a university
- all other documents required by the bank, including a document confirming creditworthiness
Applications are submitted from July 15 to October 20 every year according to a different template required by the institution of your choice.
Duration of student loan
Due to the fact that we are talking about a student loan, and therefore intended for people participating in university classes, the loan is granted for the duration of the study. Therefore, the records indicate a period not longer than the standard 6 years. Doctoral studies, due to a different mode, may be extended by another 4 years (thus giving a maximum of 10 years). The loan is paid out in monthly installments only during the academic year. This means that we receive financial assistance within 10 months of the year (the remaining 2 months are holidays where the installment is not present). What is important – the loan is not paid if we take holiday or health leave.
At the student’s request, the application may be suspended and resumed at the time indicated in the document written and sent by the student.
How much is the student loan?
Currently, the installments are $ 600 / month. So it’s easy to count that for 10 months of the academic year we can receive about $ 6,000. It is worth noting that in the event of very poor material conditions, this amount may be increased to even $ 1,000. Similarly, you can ask to reduce the amount to e.g. $ 500. We can make this type of change at any time – also during the loan period.