Student loan: how to choose?

The student loan is a consumer credit which must allow you to finance your studies: tuition, accommodation, computer, food, travel abroad, car … You do not need to justify your expenses to solicit it.

Why take a student loan?

The main reason for taking out a loan during your studies: expensive tuition, but also the expenses of everyday life. Ryan, 21, originally from Tahiti, had to take out a loan to finance his training at EM Normandie, whose high school program costs more than 9,000 € a year. “I also had to buy a round-trip airfare and spend money to settle and to equip me to fit my wardrobe (pullovers, down jackets …),” he.

All the students can not rely on the help of their parents, as was the case of Ryan, but also of Romain: “They also had to finance the studies of my brothers. imposed a sustained rhythm, with projects to carry out, commitments associative … I wanted to concentrate on my studies and could not take a student job, “says this student of EM Strasbourg, scholarship graduate 2.

What are the conditions ?

The conditions of access to the student loan are flexible, although often they are more advantageous for a student in a large business school than in a university of letters. “Any type of student can take out a student loan at the Crédit Agricole Center Loire, it is enough to provide a certificate of schooling, but we must be at the age of 30 years for the offer of our bank,” explains Aurélie Cogné, wealth management consultant.

The student loan must also be made in your name, unless you are still a minor, in which case it will be made in the name of your parents. Another condition is to have a guarantor in metropolitan France who stands surety for you. Ryan, Tahitian, paid the price and had to turn to a bank in his overseas collectivity. Note that it is from the income of your guarantor that your debt ratio is calculated, since it is he who will have to repay your credit in case of default on your part.

The State may vouch for

If you can not find a guarantor, the state may in some cases act as a surety. This system is restricted to five banks: Société Générale, Crédit Mutuel, CIC, Banque Populaire banks and Groupe BPCE savings banks. Another condition is to be under 28 years of age. This student loan is for a maximum amount of 15,000 € that you will have to start repaying two years after the end of your studies.
How do I start to get a student loan?

The first thing to do, when you start your process, is of course to go to several banks, make appointments, to better understand the system and compare offers. “I made inquiries by telephone with four banks, on the advice of my pre-school teachers and my family. I also took two appointments to compare rates,” says Ryan, who chose Tahitian bank Socredo.

 

“During the exchange with the student we ask him questions to consider with him his needs: tuition fees, but also rent, bail, stays and study trips abroad. a loan of 2,000 € will not be made over 10 years, for example, “says Aurélie Cogné of Crédit Agricole Center Loire.

How much to borrow?

The amount you have to borrow must match your needs throughout the duration of your studies, but remain realistic to be able to repay it once you graduate. Romain, 23, chose to borrow 35,000 euros from the Postal Bank. “It’s the bank where I’ve been since I was a child, my mother works there, it’s easier to get a loan quickly, because I had my admission results in mid-July and had to start pay my registration fee (7,500 € per year) in August, “he says.

The student of the EM Strasbourg advises to “think carefully about the money that is really needed for his studies and not take the maximum amount of office, because it must then pay back! With hindsight I think I ‘ could have borrowed 5,000 euros less “.

How to repay?

For reimbursement, it all depends on the negotiated conditions. Romain will have to start repaying 630 € a month, 5 years after contracting his loan, which was set at a rate of 1.85%. For Ryan, who borrowed 12,000 € at a rate of 4.5%, he will have 10 years (from the end of his course) to repay this sum. He has completed this funding with the “subsidized student loan” granted to all students from overseas territories, in the amount of € 500 per month, the student will reimburse it one year after the end of studies, without having to pay interest.