What is a student loan?
Student loans are personal loans that you can use to cover expenses related to your studies. This type of credit helps you to carry out your projects throughout your studies and commits you to repay it.
Indeed, student life involves many expenses such as registration fees or renting a student apartment. However, there are many ways to finance your higher education.
What are the different types of student loans?
Banks typically offer two types of student loans to help finance your education. This is a part of installment personal loans, and secondly the opening of a line of credit.
Personal loan by installment
A personal installment loan is a loan, the amount of which is borrowed, the repayment term and the APR of the loan are set at the outset. This is a fixed rate that does not change over time. As soon as your application has been accepted and your paperwork is in order, you receive the amount credited to your account. Then, you repay each month a portion of this loan in addition to interest.
The line of credit
At the opening of a line of credit, you will receive a defined amount credited to your account. The repayment terms of this amount are however flexible because the refund can be made at the pace that suits you. However, you must each month repay a minimum amount and can spread the refund over several months or years depending on the bank. There are however legal restrictions as to the number of months or years over which you can extend the refund.
Note that some banks offer the option of only paying interest on the amount spent. Once your studies are completed, you must then refund the total amount. However, this option is limited, as your line of credit must be reset at least every 5 years.
What are the advantages of each type of student loan?
Personal loan by installment
The main advantage of the installment staff is that you have from the beginning of the year a sum of money made available to cover your expenses. Thus, you can finance your registration fees or the purchase of your books without any problem. Also, in case you need a new phone to stay reachable at any time, the personal loan allows you to cover these costs. With deadlines and a fixed rate, no surprises, you know how much you owe each month and have no unforeseen expenses.
The line of credit
The line of credit offers you a certain flexibility which allows you in case of unforeseen to always have a reserve of money on hand. Indeed, student life has its share of surprises, even when we have already covered the costs appearing at the beginning of the school year. With a line of credit, you can easily cope with unexpected expenses that no one is immune to. The major disadvantage is that the cost of this type of loan is higher than that of personal loans.
What can I buy with a student loan?
If you have a student loan, it’s up to you to decide what to make the money you received. Thus, you can choose to use this amount either strictly for your studies (as for example to pay your registration fees), or to cover personal expenses related to the student life itself.
Similarly, if you want to buy a laptop, or a full race, a student credit can also help you. Whether you eat in the canteen or the Ritz, or you prefer the purchase of a MacBook to a PC, the choice is up to you to opt – or not – for a higher range. Your purchases should not be justified with the financial institution you depend on, so you are free to spend this money as you see fit.
I would like to take a kot. Can I take a student loan to pay for it?
Taking a kot while studying can generate a lot of costs. A student loan can help you with these costs. An education loan allows you to have the money to pay the rent of your apartment. The money you borrow with the education loan can be repaid at your own pace.
I would like to buy a car, can I finance it with a student loan?
If you prefer to continue living at home and want to buy a car to go to university, student credit is not the smart choice. It is indeed more advantageous to opt for a car loan.
I would like to study abroad, can I take a student loan to help me?
Today, more and more students are studying abroad, whether for a short or a long term. Indeed, whether through the Erasmus program or through an exchange program to study outside Europe, it is increasingly easy to leave for his studies. Know that to finance your trip, the European Commission as well as a large number of public institutions can allocate you a specific scholarship. If you can not receive all the benefits or if they are insufficient, you still have the option to opt for a student loan to help you cope with the costs of going abroad.
Note that if you go abroad for your studies, it is very convenient in addition to a student credit to apply for a prepaid credit card. With a prepaid credit card, you can pay safely in most stores abroad. In addition, it keeps your budget under control since the latter can not create debts. Indeed, it must first be loaded in order to use it. Similarly, if you are in trouble and need money, your parents can quickly and without going through an intermediary deposit money on your card.
What are the requirements for applying for a student loan?
To apply for a student loan, you must meet certain conditions:
– You must be at least 18 years old;
– You must have sufficient repayment capacity;
– You can not be blacklisted by the Central Credits to Individuals.
Note that it is very favorable to have a fixed or part-time student job so that the bank approves your loan application. If you do not have a student job, it is also possible for your parents to sign your loan as co-borrowers.
Do I have to pay a deposit on a student loan?
Unlike some personal loans, the banks will not ask you to pay a deposit of the amount borrowed under a student loan. However, if you are unable to repay your loan, the bank reserves the right to use your salary to offset your debt. Caution: If you are not able to provide security to your bank, your parents may be required to repay your debts.
Where to find the best student loans?
To find the student loan that suits you best, we advise you to compare the offers available on the Belgian market. To do this, use our online comparison tool to compare up to 26 loans. You can also perform a loan simulation and save up to £ 1,000.
How much money can I borrow on a student loan?
In general, you can borrow between € 1,250 and € 100,000 over a period ranging from 6 to 120 months. However, the maximum amount you can borrow depends on one bank to another. You can directly see how much money you can borrow on OneTopNotch and see the amount of the deadlines to repay your loan.