What is a student loan? You must know that!

Do you want to study and wonder where you will get the resources necessary to live in a new city? The option you are considering is a special student loan? Want to know what a student loan agreement is? What income entitles you to apply for this type of loan and what is the interest rate on student loans? We’ve collected a handful of useful information for you! Check what to know! Everything about student loans!

What is student loan about?


Let’s start with the basics and explain the terminology: what is the definition of a student loan? What exactly is this specific product? Who in practice can apply for a student loan and why?

Student loan, as the name implies, is a type of loan whose task is to enable people in financial difficulties to enter education in a university.

Many people who take up studies are forced to completely reorganize their lives. How much do studies cost? It is often necessary to move to a new city, rent an apartment / room, or live in a dormitory. In addition, there are fees associated with the use of public transport, the cost of buying textbooks, expenses for meals, etc. It may turn out that the student will ultimately need a substantial sum of funds, and unfortunately can not always count on the full financing of his needs by parents or not is able to take on additional work, for example due to numerous classes at the university. In such situations, a student loan can be a considerable support.

Who can get a student loan?


What conditions must be met to apply for a student loan? The rules for granting and applying for this type of loan determine, inter alia, the age of the applicant. What is the age limit? A student loan can be applied for by a person applying for admission to university, but at the time of concluding the loan agreement he must prove that he has the status of a doctoral student or student. In addition, student loan is intended for students under 30 years of age and doctoral students under 35 years of age.

A person who wants to apply for a student loan may not exceed a certain threshold that determines the maximum income per family member. This amount is disclosed by the Minister of Science and Higher Education.

How to take a student loan and what is needed?


Are you probably wondering what documents need to be provided to apply for a student loan? What requirements should be met? How to get a student loan? First of all, the first step should be to choose the right institution that can grant this loan. Then gather the documentation she needs. What is the deadline for submitting student loan applications? Want to know when you can apply for a student loan? Pursuant to the new act (Act 2.0), student loan applications can be submitted throughout the year, which is a great convenience compared to previous years.

Student loan: who can be a guarantor?


Student loan and gypsies: what should you know about this topic? What can a student loan guarantee be? In practice: who can guarantee a student loan? Banks need a loan repayment guarantee by parents. However, if your parents do not achieve the required income, it does not stop you from applying for a student loan. In this case, you can apply for a surety by Bank Gospodarstwa Krajowego or, if you live in a rural area – the Agency for Restructuring and Modernization of Agriculture.

When are student loans repaid?

When are student loans repaid?

What does the student loan repayment look like in practice? If you are going to apply for a student loan, it is very likely that you are asking yourself this question. When does the student loan start paying back? Debt repayment is necessary two years after graduation. Why is this so important? 2 years is a period that you can devote to finding a job and stabilizing your financial situation. How many years does student loan pay back? The number of installments repaid is simply doubled the number of tranches downloaded. However, it can be reduced at the borrower’s request.

Student loan: how much do you have to pay back? The repayment amount will depend, inter alia, on the amount of individual tranches to be collected. Tranches: what options are available when it comes to student loans? When completing the loan application, specify the tranches you want to receive: 400, 600, 800 or 1000 USD. From this also, incl. depends on the student loan amount. When considering how to get a student loan, remember that the loan is paid out in tranches for 10 months of the academic year.

How to cancel a student loan?


Let us now move on to the fundamental issue of redemption of all or part of the student loan: is it even possible? Redemption – either at all or to a certain extent, can take place, for example, when a person who has taken out a loan finds himself in a difficult life situation. The redemption depends also on the result with which the borrower left school. For example, if you are in the group of 1% of the best graduates in a given academic year, the loan can be canceled in half!

Student loan: is it worth taking it?


We already know when you can take a student loan, i.e. what conditions must be met to be able to apply for it. So the natural consequence is the question: is it worth it at all? Of course, you have to answer them yourself. Perhaps the vision of having such a serious commitment is too much for you, or maybe you have no choice and you need such financial support to be able to study at all? Your individual situation is very important.

Remember, however, that the student loan interest rate is half of the rediscount rate of the National Bank of Poland, and the interest is regulated by the state for the period in which the loan tranches are disbursed and 2 years after the borrower has finished his education.