Student loans are a common and effective alternative for a person who is interested in enhancing their professional development to expand their opportunities.
During student life, expenses related to high tuition fees but also to living expenses (accommodation, food, transport, laptop, travel abroad, etc.) are often significant. In order to meet these costs, parental assistance and financial assistance received by the State are generally not sufficient, and students are therefore forced to have recourse to specific financing solutions: student loans. To put it simply, these are consumer credits intended to allow you to finance your studies at an adapted rate.
There are several entities where they can be requested but first some aspects must be taken into account to make a better future investment. One of the specifics of the student loan is that the borrower will not have to justify the use of the funds received which may be used for various expenses.
The main ones of which will be as follows:
Financing of studies
The student loan can be used here to finance tuition fees, regardless of the type of higher education followed.
For the financing of its current expense (rent, deposit, food costs, etc.), the student loan will constitutes a significant cash contribution.
Among the many possible uses of the student loan, it can also be used to finance a driver’s license.
Car purchase financing
The student loan can also be used to finance the acquisition of capital goods or a means of transport (car).
Points to take into account before taking out a student loan
Choice of banks
Which bank should you turn to? Here is the primary question to ask yourself when taking out your student loan. Most banking establishments are now positioned on this market and a myriad of offers are available to you. To help you make your decision calmly, do not hesitate to turn to online comparators. These will give you an overall picture of the offer available according to different criteria. Once you have identified the best options, you can find out about the details of the offers directly from the banks by telephone or by requesting an appointment. You can also choose to take out this credit online.
The amount of the loan (sum / interest rate)
This is an essential point to study thoroughly. If the majority of students prefer to borrow the maximum amount, it is more relevant to take the time to estimate the amount that really corresponds to your needs. It is important to take into account your repayment capacity after graduation.
The duration of the loan
The duration of the loan (inversely correlated to the amount of the monthly payments) must be consistent with your repayment capacity. Knowing that the student loan is generally subject to deferred repayment, you will not start to repay until your studies are completed. This deferred phase is generally between 2 and 6 years.
The interest rate
Depending on the loan amount, you will have more or less significant interest rate negotiation leverage. So do not hesitate to use it to lower your rate.
How to get a student loan?
If many banks and credit organizations today offer student loans, you should know that they will only be granted under certain conditions, the main ones being:
- To be of age
- Not be over 30 years old
- Being a student
- For the 30 year age limit, some lenders may set a lower maximum age such as not imposing a limit at all.
To justify his student status, the applicant must imperatively be registered in a higher education institution and be in possession of a student card.
Other criteria may be added in terms of eligibility conditions for the student loan (income, deposit, duration of studies, etc.). Each lending institution is free to set its own conditions for accessing the student loan.
In the particular case of the student loan guaranteed by the State, the conditions to be respected will be to be registered in a French higher education establishment, to be under 28 years old, and to be French.
Supporting documents requested
The file to be filed to validate your student loan request includes both the supporting documents of the borrower and the surety.
For the student borrower, the documents include:
- A copy of the valid ID
- A certificate of education or student card
- Proof of address, only if your address is different from that of your deposit
For the deposit:
- A copy of the valid ID
- Proof of address (Invoice of fewer than 3 months of electricity, gas or landline, or receipt of rent of fewer than 3 months)
- A certificate of income (Latest salary slip, or tax notice for the liberal professions, or last statement of pension funds for retirees)
Depending on the case, your advisor may have to ask you for additional supporting documents.
Student loan without surety: What is it?
Funding higher education is sometimes a difficult task for students from families with modest incomes. Finding a guarantor respecting the required level of income is not always possible. So do you have to have a bond to take out a student loan? Fortunately, the answer is no.
There is indeed the possibility of taking out student loans without a guarantee thanks to the state guarantee. To save you from finding a bond or proof of income, it is good to know that the government can provide security for such a student loan.
The placement of study loans continues to grow in the national financial system and this year the trend is expected to continue because more and more people are betting on their professional development and growth.