Student loan: how to choose the best offer?

Because students often have limited budgets and education is not always easy, it is possible to take out a student loan from a bank or credit institution. What are the advantages and special conditions of this type of consumer credit? All explanations on Cratchit family.fr.

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  1. Student loan: what is it?
  2. Types of student loan
  3. The conditions for obtaining a student loan
  4. The repayment of the student loan
  5. Choose a student loan
  6. Compare to find the best student credit

Student loan: what is it?

As the name suggests, a student loan is a consumer credit granted by a bank or credit organization to people who wish to their studies. The student loan can be used in various elements: an enrollment in school/university, tuition fees, the purchase of a computer, a car, renting a home …

Each bank freely sets conditions for issuing student loans. Generally, student loans range from € 1,000 to € 45,000, for periods ranging from 2 to 10 years.

The advantages of the student loan

The purpose of the student loan is to enable students to study in good conditions. Most banks offer interesting conditions for this type of profile. Among the benefits you can enjoy:

  • Preferential credit rates;
  • A deferred refund, up to 10 years;
  • An adjustable repayment term;
  • Unlocking capital one or more times
  • The possibility of repaying interest from the first years thanks to small monthly payments adapted to student life.

Types of student loan

Types of student loan

There are different types of student loans: traditional loans (personal loan, assigned credit …) and loans guaranteed by the state.

Classic student loans

Banks and credit organizations offer traditional student loans that meet the requirements of traditional credit. Depending on the banks, it is possible to opt for a personal loan or an assigned credit, that is to say, granted for a pre-defined expense, which must be justified for the borrower.

Some schools or universities benefit from partnerships with banks. This may allow students to benefit from advantageous terms, including lower than average credit rates for taking out a bank loan.

Student Loans Guaranteed by the State

Student Loans Guaranteed by the State

Banks or credit agencies require student borrowers to have a deposit or proof of income. Conditions that can be difficult for some students. The state-guaranteed student loan (Oseo loan) has just been introduced to help this type of profile. It allows students to borrow money without having to provide these guarantees.

In case of failures on the part of the student, it is the Public Investment Bank (Bpifrance) who will take care of the monthly payments.

The loan guaranteed by the State is subject to eligibility conditions and must be underwritten by certain banks that are partners in the scheme.

The conditions for obtaining a student loan

Many institutions offer student loans. However, obtaining this type of credit is subject to certain conditions:

  • To be of age ;
  • To be a student, of course, to be enrolled in a university, a school, an institution of higher education and to be able to prove it by means of a student card or a certificate of schooling;
  • Being under 30, sometimes under 28 at some banks;
  • To have a deposit, that of the parents (according to the banks, other relatives like the brothers and sisters, uncles, aunts etc. can also be guarantors) in the case of a traditional student loan.

Some banks only grant student loans to people enrolled in structures recognized by the National Education.

Note: obtaining a student loan is not automatic. Banks are free to refuse certain files if they do not have sufficient guarantees or judge that the borrowing capacity of the student is too low.

The repayment of the student loan

Generally, the repayment of a student loan takes place over a maximum period of 10 years. Most banks or credit agencies offer students a grace period. In this case, the repayment of the student loan is done in two periods:

  • At first, which corresponds to the period of study, the student enjoys a period of exemption (or deferred phase). If the deductible is total, he only reimburses his borrower insurance (optional but recommended). If the deductible is partial, he reimburses his loan insurance, but also the interest on his student loan;
  • In a second step, which usually corresponds to the end of higher education/entry into the workforce, the repayment period (or amortization phase) arrives.

Choose a student loan

A student loan is classic consumer credit. In order to find the most appropriate solution, it is important to properly assess your borrowing capacity and to define the conditions of realization of your project.

So, before applying for a loan from a bank or credit institution, consider:

  • The maximum amount you need for your student loan
  • The amount of monthly payments that you can pay in the future;
  • The duration of your loan;
  • The loan rate (APR) that can be offered to you and the type of interest rate (fixed rate, revisable rate …).

To estimate the conditions of your student loan, think of the student loan simulation! On the Internet, you can easily find consumer credit calculators to see how long and what amounts are right for your situation.

Compare to find the best student credit

Compare to find the best student credit

Today, institutions offering student credit are numerous. Not always easy to see clearly and find the most advantageous loan offer.

Good news: a consumer loan comparator is the ideal tool to find the best consumer credit. On Cratchit family.fr, all you have to do is fill in some information about your profile and your needs before accessing the quotes adapted to your situation. You just have to compare offers, choose the best for your profile and make your loan application!

Items to compare

Duration of credit, amount of monthly payments, implementation of a deferred refund with full or partial excess, percentage of annual percentage rate of charge (APR), type of credit rate (fixed rate, revisable rate, etc.), pricing conditions, banking services available … Remember to compare all the terms of the loan to choose your student credit serenely!