June 15, 2018 Matura time is passing by. Young people eagerly await the results of exams and register for selected fields of study in the hope that they will get them. Unfortunately, not everyone can think about further learning. Some just can’t afford it. Do you have to give up your dreams? No. If financial matters have a key impact on your decision to start studying, you don’t have to give up learning. You can apply for a student loan. What is a student loan, how to get it and where to apply? Learn more about student loan.
What is a student loan?
Banking institutions provide the opportunity to use a wide range of financial products. Starting from personal accounts, through cash and mortgage loans, to various types of saving instruments, e.g. deposits and savings accounts. Student loans are also one of the bank’s offer points. It is called a preferential student loan because its conditions are particularly favorable. It not only has attractive interest rates, but part of its costs is covered by the state budget.
Is it worth taking a student loan? Yes, because we can not always count on the help of parents, and in demanding directions it is difficult to take a job to be able to support themselves. Even if we go to free studies, there is no cost to education.
Studying costs money. We pay for:
- flat – approx. PLN 400-600 per month,
- media – around PLN 200 per month,
- public transport – approx. PLN 47-63 per month,
- meals – around PLN 500 per month,
- other expenses, e.g. related to entertainment – approx. PLN 300 per month,
- educational materials – about PLN 100 per month.
Aegon Polska took care of this data collection. The quoted amounts refer to a typical student and may depend on the city in which they study. If a young person can save, it is possible that he will spend less. But he can also spend a lot more if he doesn’t have good budget management habits and lives wastefully. That is why financial education and instilling money management principles from an early age are so important. Because student loan money can be quickly passed through, but you can also live wisely, and some of it can be invested.
Therefore, if your parents’ salaries do not allow you to continue to teach your child, student loan should be considered. Is it worth it We already know the answer. Let’s take a closer look at the student loan terms.
Student loan – conditions
Student loans, regardless of the bank’s offer, offer similar conditions. It is worth getting acquainted with them and see that it is a good way to become independent of the parents’ wallet and start an independent life. All the more so if most of the 5 questions about taking a loan have answered positively.
Student loan features:
- intended for people who started education before the age of 25,
- granted for a study period of up to 6 years. In the case of doctoral students, it may be extended for another 4 years,
- maximum income per family member – currently PLN 2,500 net,
- interest rate – currently 0.875% per annum,
- monthly tranches paid no more than 10 months a year in the amount of 400 (reduced installment) to even 800 or 1000 PLN (increased installment) The basic installment is 600 PLN. The larger the tranches, the greater the final loan amount will be,
- two-year grace period for student loan repayment without accruing interest,
- the possibility of total or partial redemption of a student loan for the best students and those with financial problems.
Student loan goals are free – for housing, living, educational materials – money can be used for anything. Also on investments if we don’t spend the whole amount and think about our future. How to get a loan and where to apply for a student loan when we cannot afford university?
How to get a student loan?
If we want to get a student loan, the rules are simple. First of all, we must collect the documents necessary to submit a student loan application.
List of documents necessary to apply for a student loan:
- an application submitted to the selected bank together with documents that confirm the student’s family income,
- a college certificate that confirms that we have undertaken education or a document which certifies our participation in recruitment,
- documents that will help the bank calculate our creditworthiness.
In addition, student loans require collateral. Possible forms of loan collateral are:
- surety by Bank Gospodarstwa Krajowego,
- surety in accordance with the general principles indicated in the Civil Code,
- other forms of security that the bank indicates.
Submission of documents is possible between 15 July and 20 October of the year in which we want to obtain a loan for a student. Where to apply for a student loan?
Student loan – where is the best?
We have already learned most of the information on consumer credit. It remains for us to check the banks’ proposals in this respect.
Which banks currently offer student loans?
- student loan Pancor Bank – gives the possibility of obtaining a loan for a student by persons without income, with low creditworthiness. It offers tranches in the amount of PLN 400, 600, 800 or 1000 and a flexible loan period, tailored to the client’s capabilities. The bank allows you to postpone repayment of installments, if we have a problem with settling the debt, in addition, it does not charge fees for early repayment of the loan. PB forgives part of the loan for the best graduates and people in an extremely difficult life situation;
- student loan Bankor (together with affiliated cooperative banks) – a student loan for any purpose with a low interest rate of 0.5 x rediscount rate of the NBP bills of exchange. The bank gives the possibility to guarantee the loan by SCV and ERFA. The loan tranches are the same as in the Pancor Bank, and the student loan cancellation may apply even to the whole amount paid;
- student loan SCV-Bank SA (together with associated cooperative banks) – a student loan with an attractive interest rate, grace period and the possibility of loan repayment. Intended for people without creditworthiness. Details available at the bank branch.
Check the conditions and calculate how much a student loan can cost you, and you will quickly find out that it is worth applying. The more that student loan and its repayment is a way to build a positive credit history. Student loan also solves the problem of the first loan. Having financial credibility will allow you to sign further contracts with the bank, even for a loan to renovate a house or apartment.
Student loan – repayment
Repayment of a student loan begins two years after graduation, but if we want – we can start paying off earlier. As soon as the debt is settled, the state stops paying interest. Importantly, installment amounts are two times lower than tranches collected during studies. Therefore, if we received PLN 400 monthly, we will now pay back installments of PLN 200 plus small interest. Thanks to this, it is easier to pay back the debt without seriously violating the budget.
Student loan – redemption
Redemption of consumer credit means that you can abolish even the entire amount, provided you are in the group of 5% of the best graduates. For the bank to redeem, the borrower must submit an application, confirmed by the head of the basic organizational unit of the university or another one-person body of the university or the director of the scientific unit. We have a maximum of 30 days from the receipt of the confirmation to submit the application.
Persons with difficult financial situation can also count on redemption, partial reduction of the installment or temporary suspension of repayment. However, if you get seriously ill and have no opportunity to take up a job, we will also be able to count on total or partial loan cancellation. Although we would not like to use this option, it is worth knowing that it exists. In this case, redemptions are made by the minister competent for higher education on the application submitted by the borrower.
Study abroad – UK student loan
Polish banks do not grant student loans to people who want to study in England. The cost of living in London and studying there will not allow us to stay without additional support, so where will we receive financial help? Tuition for studying in the UK is 9,250 pounds a year. Students can apply for a government student loan without checking their credit history and guarantor and family charges.
Student loans in England require EU citizenship. We will receive it only if we have not started undergraduate studies at a public university and we have not obtained a bachelor’s or engineer’s degree at a public or private university.
Repayment of student loan in England begins only and only if we got a job. There are also requirements for income received.
We will start paying off studies in England if our income is:
- 2083 pounds a month and we will work in the UK,
- about PLN 4,000 a month, if we return to Poland after studying,
- 2083 pounds per month, for travel to Germany, USA, Austria, Belgium, Canada, France, Japan, the Netherlands and New Zealand.
When we achieve the income indicated, only 9% per month will be deducted from their income. We apply for a student loan at the expense of studies in England only after choosing two universities. The second serves as security if we don’t get to the first one. Beforehand, however, you must send the UCAS application to universities and receive responses from them. The first deadline for sending a loan application is at the end of May. Despite this, you can still apply for a loan of up to 9 months from the start of studies, but let’s bear in mind that universities do not like to wait so much for tuition fees.
Student loan as an alternative to student loan
Not only banks offer financial assistance to young people. An alternative to a student loan is a student loan. To get it, all you need is your ID card, mobile phone and bank account. Lenders do not set high requirements and reduce formalities to a minimum.
The best online loan offers can be found in payday loans and installment loan rankings. The free payday loan, which requires a repayment within 30 days, is particularly attractive. If we are late with the return of the debt, we will have to pay fees in accordance with the table of fees attached to the contract.
You can also apply for a cash injection in the form of a loan. Opinions on this form of financial support are positive, provided that the repayment deadlines are met. If we need to regulate unforeseen needs, just read the offers and not be afraid to apply for additional funds.