What about the bank studies loans? Back to school: how to find the right student loan (really) for your needs
Banks offer all kinds of offers to continue your studies in peace.
If the cost of higher education is largely covered by the State in public sectors, the bill for private schools reaches between € 3,000 and € 10,000 per year. To afford the course of their dreams that will give them a maximum chance of professional integration, many students then have no choice but to take out a loan, even before they enter the working life. It is better then to choose it wisely…
Most banking institutions offer one or more student stamped loan offers. Make no mistake, these are classic consumer loans, with the difference that they are "affected". In other words, the amount awarded must only be used to finance the scope of application mentioned in the contract, namely your course of study.
Bank studies loans
But don't panic, most formulas also provide for the possibility of paying for everything related to studies, such as the purchase of computer equipment or why not a car to get to class, but also your accommodation or food costs. In practice, banks pay little attention to the expenses to be financed, as long as you justify an enrollment in a higher education institution.
The interest rate applied to student loans is generally attractive since the objective is to retain young people to encourage them to subscribe to other products and services later. According to the National Institute of Consumer Affairs (INC), it is currently necessary to count on a global effective annual rate (APR), which therefore includes all costs, including insurance, varying between 1 and 2% on this type of credit.
Even better, some establishments do not hesitate to offer 0% APR. If a price comparison is obviously necessary, the cost is however not the only criterion to be taken into account!
Bank studies loans details
Depending on your needs, you can borrow a few hundred or several thousand euros and even up to € 50,000 depending on the offers on the market. That said, the larger the amount, the stricter the guarantees required. Banks often require the presence of a parental guarantor and the subscription of a borrower's insurance covering death and disability when the amount involved is high.
To avoid paying a high price, the INC also recommends opting for an offer that provides for a gradual release of funds depending on your financing needs. The advantage? Interest will also be applied gradually!
The issue of reimbursement is also central since students have little or no income. That is why this type of credit is usually spread over 2 to 10 years. Then check that it includes a deductible period, also called "deferred repayment" which will allow you to limit your monthly payments to the only cost of interest and insurance during your studies, before starting to repay the principal once your diploma is in your pocket or, even better, when you land your first job.
Finally, to end this financial burden as soon as possible, make sure that the contract allows early repayment with few, if any, penalties.
Bank studies loans guarantees - A loan guaranteed by the state
If the banks refuse you a loan due to lack of income or guarantor, you can turn to the offer of a loan guaranteed by the state. This credit reserved for students aged 18 to 28 was precisely revalorized in 2021 as part of the France Relaunch plan. Its amount has thus increased from €15,000 to a maximum of €20,000, while the grant quotas have been multiplied by five. To qualify, you must apply to a partner bank (Société générale, Banques populaires, Caisses d'épargne, Crédit mutuel, CIC, Crédit Agricole, Banque postale or BFCOI Overseas) between May and September. Note that each institution remains free to set the interest rate.
Good to know: an alternative is to use crowdfunding. But be careful to inquire beforehand with the ACPR, the gendarme of the sector. Indeed, some crowdlending sites (loans between individuals) such as StudyLink and Edukys, which became known a few years ago for their student loans, have since ceased their activity.
