Loan as student
Most of us know the scenario: as students with a monthly SU of around $ 5,000 and with expenses for rent, books, food and Friday bar, the money can quickly run out. In addition, the last thing you want – or time – is to have a boring study job next door.
There are many options for taking out loans, the most favorable for students is the SU loan, which is a government-guaranteed student loan This year the loan is $ 3,020 monthly, but this rate changes every year. The loan can be taken by all students who are SU eligible and no credit rating is required. This means you can borrow the money whether you owe money in other loans.
How does the SU loan work?
The student loan is automatically transferred to your account every month, and you must pay no interest or repayment during the period when you borrow the money. In addition, you can opt out of the SU loan during periods when, for example, you have a fixed income or do not need the loan. You can easily change these things at SU.
Repayment of the SU loan must start no later than one year after the end of the study period. You can adjust where your payments are, as well as how many times a year you want to pay the installments.
Benefits of SU loans
- Low interest rates. The SU loan is specially made for students and thus has somewhat lower costs and interest rates than consumer and bank loans. While you are a student, the interest rate is 4%, but after graduation it drops to only 1%, making it a very favorable loan.
- Long payback period. You have a maximum of 7 to 15 years to repay your debt, depending on how much you owe.
- Checking the loan period. You decide for yourself how many months you want to take out the loan.
Unsuitable SU loans
- Unnecessary loan. Due to the easy and cheap loan option, many may take out an unnecessary student loan. Although the loan is favorable, saving is always a better idea than taking a loan.
- Reimbursement after study time. While it may seem like a sensible idea that the loan should only be paid after the end of the study period, when the income is higher, it is worth thinking an extra time. After the study period is over, you may want to spend more money on travel, family, housing and car than paying off an old debt?
- Think about it an extra time before you jump into an SU loan (or any other loan). Paying for an old debt can be painful when you finish your education.
- Loans are therefore only necessary. If the situation is not critical and the household can run around, try to save money for what you dream and dream about.
- Consider whether you should apply for a student job instead of borrowing. While this may seem confusing and tedious, it does give you a sense of self control to earn your own money while gaining experience on the resume.