The pursuit of secondary studies is increasingly crucial as 42% of an age group obtains a higher diploma, of which 15% a Masters level. Although registration fees remain more moderate in France than in other countries of the world, certain courses can prove to be extremely expensive. And this without counting accommodation, books, but also the little pleasures of the twenties. What if the loan was the solution?
Simple and often transparent operation
Although each bank has its own student loan offerings, some basic rules are common:
- Their amount is generally limited to around $ 30,000, although it can sometimes be higher.
- The generally practiced borrowing rates vary between 2 and 4% TEG.
- The start of reimbursement can be postponed over time (the “deductible”), on average five years later, which often corresponds to the date of entry into working life.
- The release of funds can be done “as and when”: thus, the student does not pay interest on the sums to which he does not touch.
- A loved one can vouch for the loan, which increases the chances of getting it. If you do not benefit from a joint guarantee, do not hesitate to contact Best Bank, which guarantees student loans up to $ 15,000 from certain approved banking organizations.
The main points of vigilance
In order to effectively compare the different offers, give particular importance to the TEG (total effective rate), that is to say the cost of your all-inclusive loan (interest, insurance, handling fees, etc.). It is also up to you to see which banking organizations offer you the possibility of modifying the repayment period, the amount of the monthly payments, or even the amount of the loan, all at a lower cost (or no cost).
In exchange for the subscription of your loan, which constitutes for the bank a guarantee of customer loyalty, you can negotiate other additional advantages: current account management fees or bank card at preferential prices, more flexible overdraft ceiling, discount on the home insurance contract, etc. Similarly, if you are a student in a large school, do not hesitate to contact the Student Office, which generally negotiates advantageous conditions with one or even several banks.
Student loans: towards a new major banking crisis?
Remember that taking out a loan means submitting to the obligation to repay it. However, the risks of non-repayment of certain student loans in the United States raise fears of a new banking crisis. In fact, outstanding student loans have crossed the 1,000 billion dollar mark, more than the accumulated debts of all of the country’s credit cards!
In the same way that the non-repayment of so-called subprime mortgage loans in the United States had caused the financial and then economic collapse of 2008, the question of American student loans is today a source of major concern in financial circles.
In fact, for 25 years, tuition fees have been multiplied by 5 across the Atlantic, universities taking advantage of loan guarantees from the federal government to continually increase their fees. This growing weight of tuition fees is also a reality in some European countries, but also in some French schools, especially business schools.