A student loan remains the best solution to finance your studies when it is impossible for us to find other funds: family, scholarship, student job, etc. It will allow you to benefit from solid income to finance your studies , your useful purchases ( computer, car, scooter, etc.) and your incompressible expenses (rent, food, leisure, etc.)
Student loan: when to take out one?
If your parents do not have sufficient income to help you finance your studies, if it is not possible for you to meet the criteria for obtaining a scholarship and if, despite all your research, you do not have not managed to get a student job, do not despair and orient yourself towards another possible solution: take out a student loan that will allow you to meet your needs and cover your extra expenses.
Note: the use of student loan funds is not monitored by the bank that lends you. You are alone in front of yourself to manage your daily expenses. It is therefore a financing for which you are entirely responsible!
What conditions must be met to benefit from a loan?
Not all students qualify for a student loan. Eligibility for this type of credit requires meeting several criteria clearly defined below. To take out a student loan, you will need:
– Be aged between 28 and 30 years maximum according to some banks
– Whether a parent or a third party acts as a surety (valid for the majority of banks)
– Whether you are of French nationality or from the European Union
– Prepare a diploma in French higher education
Often these conditions do not change. They may possibly be specific to each bank on the number of criteria to be met.
Find a guarantor to get a student loan.
No loan without a guarantor !
As with renting an apartment, in most cases you will need to find a guarantor who will guarantee the bank against any default. The income and charges of your surety (s) will be taken into account to calculate the maximum debt ratio authorized for a loan; in the event that you can no longer ensure the repayment of your loan.
What solution if the student has no guarantor?
Without a guarantor, it is still possible to take out a state-guaranteed student loan .
Indeed, the Public Investment Bank (BPIfrance) has an envelope with a specific amount that allows several students to benefit from a loan guaranteed by the State without any bond conditions or income.
The eligibility conditions are the same as for a classic student loan with a bank, with the difference that no guarantor is required.
The loan granted by BPIfrance extends up to € 15,000 for a minimum period of study of 2 years and is only valid with certain partner banks such as Société Générale, Banque Populaire, Caisse d’Épargne , Crédit Mutuel or CIC .
Characteristic of the student loan
Between amount, interest rate and provision of a budget
The amount borrowed may vary from bank to bank. Regarding you, it will be based on your file, the duration of your studies, your financial needs and your planned daily expenses – therefore, and even before choosing the banking institution that will grant you a loan, in partnership or not. with your school, estimate the budget you will need: school fees, rent, food, computer, transport, leisure activities, little extras, etc.
Student loan interest rate
The interest rate for this type of loan is often more advantageous than a consumer loan. This is why for a student loan, the interest rate is often around 2% on average against a classic loan offered at 4.90% on average as well.
Please note , not all banks pay the administrative fees.
There are two options for taking out your student loan . You can:
– Either to recover all of the credit granted in one go,
– Or to benefit from regular income during the period covering your studies.
In most cases, you prefer to receive all the funds from the start so that you can manage your budget yourself. Only here, if we do it wrong, we quickly find ourselves on “the straw” and there the trouble begins … It is therefore strongly recommended to use your credit as and when your daily needs – as a monthly salary for example – There are indeed 2 advantages:
– Interest costs often reduced
– Self-managed and regulated student credit budget throughout your education