A course of study usually takes around three years and is therefore not only a challenge, but also a costly affair. If a student cannot count on family help, outside funds are needed. The first option is a credit aid, but not everyone gets one and even with that it is not always clear whether that is enough. Rarely is the university near the parents’ house, so that there are also tuition costs and living expenses. If the place of study is in another city, you have to find accommodation, whether it’s an apartment or a shared apartment. A student loan is a solution to this problem. A student loan only serves as a loan for studying and does not cover unexpected purchases.
Who gets a student loan?
To get a student loan, various criteria have to be met. A loan is usually not possible without an income, but students rarely have a regular income that ensures their creditworthiness. Since a student rarely has collateral, you need a guarantor. This can be relatives or acquaintances who increase the creditworthiness. The guarantor must have a regular income, because if the borrower cannot repay the loan, the guarantor must pay for it according to the conditions.
Where can you take out a student loan?
Obviously, the bank is the first point of contact for all kinds of loans. It is best to compare several lenders with regard to their terms. A student loan is a small loan and not every bank offers this. If you don’t get a loan because of a negative credit bureau entry, P2P loans are a possibility. This means that both the borrower and the lender are private individuals. A credit bureau entry is also not welcome here, but private lenders pay less attention to it. If a student loan is required, various offers should be compared so that the best possible conditions can be obtained.
When will the loan amount be paid out and when will the repayment take place? The student does not get his loan amount paid out in full, but in monthly installments. How high these are depends on the loan amount and the term. After the last payment, there is a rest phase, which usually lasts two years and only then does the repayment begin. Contractually, you can of course shorten or extend the time. Here you have to remember that a loan can quickly turn into a debt trap. Anyone drawing debt, for whatever reason, must be aware that they are in debt with a loan. If you can’t pay this debt, it gets angry. Because even a well-completed degree is no guarantee of a well-paid job. Helpful: If it is agreed in the conditions that total repayment is possible, this can simplify the repayment.
How long is the credit period?
The duration usually depends on the length of the course, but not necessarily. You can apply for a loan for the entire study period or only for a part. At the start of your studies, you don’t know whether you might have to repeat a semester. A repetition is not included in a student loan, but it does incur costs. There are also student loans with a term of one year that do not cover the entire course, are practical in the case of repetition or a financial bottleneck. The length of the period therefore varies from case to case.
How much is the loan? In advance, it must be determined which costs are incurred monthly and in what amount. Costs that are always incurred but are variable in amount should be estimated at a fixed amount. One can z. B. set a daily budget for groceries and extrapolate accordingly. Important: Because of the interest, the repayment amount is higher than the loan amount.