To receive a traditional loan, we must meet a number of conditions that may not be available to many students. Therefore, a product with attractive conditions has been created for this group of consumers. A preferential student loan can be a good way to maintain liquidity.
When pockets and wallets shine empty, this is not the end of the world. Before you decide to use standard banking products, it is worth paying attention to the offer of financial support for students.
Student loan – what’s going on?
From 2019, a special law 2.0 was introduced that aimed to reform domestic higher education. Currently, it is in this document that we find the most important information about student loans or loans. Thanks to the introduced changes, we can apply for such financial support at any time. Until now, if the student had not submitted the application in due time, he had to wait a year to resume recruitment. Now he can do it when he simply runs out of money.
Commission and student loan interest rate
Loans for students are primarily characterized by much lower costs than standard offers. Let’s start with the interest rate. This is the price we incur for the possibility of having additional funds. To a large extent, it depends on the current level of the NBP reference rate. According to the Anti-usury Act, the statutory interest rate is equal to the sum of the NBP reference rate and 3.5 percentage points. In turn, the maximum interest rate should not exceed twice this amount. Currently it will be 10%. However, how does the student loan refer to this provision?
In the case of student loans, the interest rate may not be lower than half of the NBP rediscount rate. It is currently 1.75% (05/06/2019), which means that the minimum interest rate will be 0.875%. However, as you know, in addition to interest, the commission is also important. As for student loans, it will also be small. It is usually between 0 and 5%.
Student loan – what conditions must we meet?
When applying for any financial support, we must meet specific conditions. The same applies to student loans. The first and basic criterion is attending university. However, until 2018, the age limit limited the possibility of applying to graduates of doctoral studies, because the loan was intended for students under 25 years old. Currently, any person under 30 can apply. It is also worth mentioning the income criterion.
In order to receive money as part of a student loan, the income per family member should be a maximum of USD 2,500 net .
Student loan payment
Student loans have different rules than other consumer products. If our application is approved, the money will be transferred to our account for a maximum of 7 years. However, we will not have access to them throughout the year. The payout period is 10 months, i.e. the entire academic year, excluding holiday time.
Information about the preferred amount of withdrawals must be determined already when submitting the application.
The monthly tranche after the increase is a maximum of 800 or 1000 USD. The basic amount includes a transfer of USD 600. In turn, according to the student’s needs, it can also be reduced to USD 400.
How to pay back a student loan?
The repayment rules may also surprise. Money will be paid throughout the entire period of study. During this time, we do not have to worry about paying off the debt, because the interest accrued is covered by the state. However, we as borrowers receive time to find a job and stabilize professional life. As a result, the refund will only take place two years after leaving higher education. The rules are simple. The monthly installment is equal to half the amount we received during each tranche. The loan period is extended twice. Let’s not forget to add interest to the installment. However, do not worry about the supply. Everything will be included in the contract.
Student loan – what to spend it on?
Student loans can be used for any purpose. Of course, we can invest in the present, that is, fees for housing, studies or other obligations. However, more and more often it happens that students decide to prepare a “good start”. On the forums we will find many questions about what to invest in and with what profit, whether it is worth putting money into a deposit or savings account. There are many answers, but ultimately everything depends on our individual financial situation.
Some share their mistakes, regretting the money they spend unnecessarily. If we are able to cover expenses from our own capital, it is worth investing in investments or putting aside cash to buy a flat in the future. Thanks to this money, we can secure capital to start our own business or develop our skills. It is worth noting that everything takes time, because we will not receive cash in the form of a one-time payment to the account, and in parts.
Studies in the USA – how to finance?
Many young people decide to study abroad. What sources of financial support can we use? It turns out that international student loans are difficult to access. That is why it is worth thinking about other forms of financing. To obtain a visa to study, we must prove that we are able to pay the tuition fees and take care of our own living expenses. One way to get the amount you need is scholarships offered by international companies such as Google and Microsoft. If we manage to employ in one of these places, perhaps our superiors will agree to invest in our development.
Many universities also offer special funding to cover part of the costs associated with studying. If the university does not offer scholarships, there is also the option of reducing tuition fees. However, we will find detailed information on the websites of specific institutions. Scholarships for outstanding students are one of the most popular financing methods. We can earn it thanks to both sporting talents and exceptional academic performance. It is worth mentioning that there are also special systems that will allow us to search for the right scholarship.
If not a student loan, then …
It is worth knowing that also in Poland we can receive an offer to cover the costs of studies by the employer. One of the elements of good team management is taking care of the skills development of your employees. In many companies, staff training is accomplished by sending company members to study. Thanks to this, not only the team but also the employee gains. Increasingly, free education appears in job advertisements as a benefit. However, if our company does not offer such a possibility, there are also other solutions.
From 2008, the “Ordered directions” program was also implemented. It was aimed at educating graduates of such profiles for which there is currently a demand on the labor market. It was intended to be technical, IT and mathematical studies. Persons deciding to take advantage of this offer could receive an additional scholarship in the amount of USD 1,000 and the possibility of completing a paid internship of USD 6,000. Currently, it has been replaced by the Competence Development Program on knowledge in the field of economics, finance and company law. Classes take the form of workshops and practical tasks. However, these are additional opportunities for people who already have student status at selected universities.