Student loan – how to save yourself in a difficult situation?
Studies are an important period in the lives of many young people. However, they are not only related to acquiring new knowledge and making new friends. It is primarily an additional expense – for the student or his parents. Lack of financial resources to stay in college is the most common reason for giving up acquiring knowledge at universities.
Increasingly, however, it can be seen that young people who want to achieve something in life decide to take out a student loan. What exactly is a student loan? Who can apply for it?
Student loan – what is it?
Various financial products can be found in the offer of traditional banks. These are not only deposits, savings accounts, consumer loans or mortgages. Student loans are also popular recently. Student loans are granted on attractive terms. Such a financial product has a low interest rate. Part of the costs is covered by the state budget.
The decision to apply for a student loan requires some thought. Is it worth starting such a big commitment at the beginning of your adult life? Isn’t it better to combine studying with work? Some studies, however, require a lot of time and work, which may exclude the possibility of employment. Living in college is associated with expenses: renting a room, meals, bills, public transport tickets and the purchase of educational materials. On average, approximately USD 800-1200 should be spent on monthly living.
Young people who enter adult life only learn to manage their budget when they are in college. Rational disposal of available funds and planning of expenses is required. Money from student loans can make life much easier in college. Some are able to save some money and even invest.
Student loans are most often used by people who cannot count on the help of a family or simply want to be financially independent.
Who can get a student loan? What are the requirements?
As a rule, the student loan offer at various banks is very similar. However, do not decide on the first offer encountered, but compare all available options and choose the best one. You can always use the advice of a financial adviser who will help you choose the best offer.
An attractive interest rate is the advantage of student loans. At present, it is 0.875% per annum. Money is paid out in monthly installments. A maximum of 10 tranches can be received per year. Depending on the amount received, their amount may be USD 400, USD 600, USD 800 or USD 1,000. Two years after graduation, there is a grace period without interest. Some students may apply for the redemption of some or even the entire loan amount.
When are student loans repaid?
Two years after graduation, the student must start paying off the loan. However, if he wants (and has the appropriate resources), he can start to pay his liabilities earlier. There is one rule during repayment: the installment amount is two times lower than the amount of the tranche paid during studies. For example, if the amount of the tranche was 1000 zlotys, the student must pay 500 zlotys together with small interest.