A student loan is a state-guaranteed loan. The state guarantee is granted automatically when an applicant applies for student grants. The state guarantee comes in the form of a loan, but the loan itself must be applied for by the student at the bank of their choice. The student loan government guarantee is max. USD 650 per month and around USD 800 per month for students studying abroad. Children under the age of 18 may receive a state guaranteed loan of USD 300 per month. Almost always, if a student receives a student grant or adult education allowance , he or she is entitled to a state-guaranteed student loan.
What is a student loan for?
As a rule, the loan should be used for various educational materials such as books, computers, phones. A student loan can also be used to pay part of the rent, food or use of your own car. Each student uses the student loan in the best way they see fit.
Student loan or small loan?
A student loan is a matter of opinion and it is a personal matter for every student whether they want to take advantage of a state guaranteed loan or take out a small loan when they need it. Student loan costs are very moderate thanks to the state guarantee. You do not have to pay any interest at all during your studies, but you can only start repaying your loan after two years have passed.
A small loan for studying can be applied for unless the student loan is attractive. There are loan services online that lend to 18 year olds without regular income. However, it is important to borrow only as much as you need for a sufficiently long payment period.
How do I apply for a student loan?
Apply for financial aid . When applying for a student grant, you will receive a decision on the state guarantee for the student loan. After this decision, you can apply for a student loan from your own bank, for example, where you usually do business. The bank clerk will tell you more about the cost, interest and repayment of the student loan.