Student loan – New Regulations

From August this year, student loan will be more suited to the student’s expectations. Changes can be expressed in two words – more and faster. Even $ 1000 per month may be credited to the bank account of the average student. The persons applying for admission to university will also gain, and the state will pay for everything.

Student loan as a form of financial support is an attractive alternative to other solutions available on the market. All thanks to the low interest rate and the deferred repayment date , which reaches two years from the end of the studies. Due to the student loan, a difficult life situation does not have to be associated with the necessity to hang on the peg of a dream of a diploma. Additional support can also facilitate the path to independence, allowing students to leave the family home more quickly.

What exactly is a student loan?

student loan?

By assumption, the student loan is to provide material support for students and PhD students. Starting from this year, applicants for admission to the university may also apply for funding. The attractiveness of the solution is primarily determined by its low cost. During the loan draw-up period as well as during the grace period of two years from the end of education, the interest is repaid by the state budget. However, the borrower in the repayment period will be charged with interest at half of the rediscount rate of the NBP bills of exchange, which currently amounts to 1.75%.

An interesting solution, ensuring a better matching of the amount of support, is the greater spread of loan tranches offered. In the previous academic year, the student had to choose between a basic installment of $ 600 a month and an additional installment of $ 800 a month. In the 2016/2017 academic year, the range of available options was expanded by an installment of $ 1000 and a so-called reduced installment in the amount of $ 400.

Magda, a second-year student of psychology, successfully using student loans, assesses the improvement of the offered tranche. – Since the beginning of my education, I have struggled with financial problems, but my current life situation has improved significantly. In the new academic year, I will certainly ask for a reduction in the amount of the tranche. It is finally a loan, so the money will have to be paid some time – he adds.

Money will appear earlier on your account – change of dates beneficial for students

Money will appear earlier on your account - change of dates beneficial for students

The problem that was binding so far was the deadline for submitting the application to the final payment of the loan tranche. Sometimes, from the moment of submitting the required documents to the bank, several months were spent to pay the first part of the loan. In the worst-case student applying for a loan in October, to sign a contract, had to wait until the end of March next year – such charms of bureaucracy.

Currently, the deadline for submitting the application to the payment of the tranche has been shortened. Credit applications can be submitted from August 15 to October 31. The bank, on the other hand, to issue a decision and sign the contract, will have until December 31. Thanks to this, funding will be provided to student accounts by January of the following year at the latest. – I remember well when I was saving money borrowed from my friends because I waited for several months to sign a loan agreement. In the end, I received a tranche, increased by overdue installments, which allowed me to repay my loans and go straight. These were not the easiest moments.

Bank requirements to meet expectations

student loan

In order to verify the borrower and adequately secure future liabilities, the banks expect certain criteria to be met. Three issues are of key importance: the age of the applicant, the income criterion and the guarantor , who in the bank’s opinion has the creditworthiness to repay the debt. Only people who have started their studies before the age of 25, coming from families where the income per person does not exceed $ 2,500, can apply for the loan .

The most problematic condition is the need to present a person ready to spend the planned loan. It is the guarantor who is fully responsible for paying off the debt, which makes it easier to convince a family member or a person who trusts us. If the guarantor’s search is unsuccessful, you can apply for a guarantee from Bank Gospodarstwa Krajowego, and people living in rural areas may apply for a guarantee from the Agency for Restructuring and Modernization of Agriculture.

And all these documents

Of course, all the bank’s requirements should be reflected in the submitted documents. And so the borrower, in addition to the loan application, should present a statement on the income and number of people in the family, a certificate of higher or doctoral studies, a certificate of income and a statement from the guarantor about the financial situation. The list may seem long, but taking into account preferential loan terms, it is worth trying to complete them.

Opinions about the need to collect a whole list of documents are contradictory. Some people think that this is a painful journey, others have no problem with the documents and successfully applied at the very first attempt. – I have printed all the required documents from the bank’s website. In case of doubt, I contacted a consultant or called the hotline, where I received all the necessary information. Thanks to this, I managed to complete all formalities quickly and efficiently – reveals Kinga, a graduate of journalism.

Is student loan the right option?

Is student loan the right option?

In comparison to other products available on the market, student loan is definitely the cheapest solution. The group of recipients is strongly narrowed, but the idea behind the solution is to facilitate obtaining higher education, people in a difficult financial situation. The maximum funding period for students of six, and for PhD students four years, can successfully provide a steady flow of cash during the period of study. In addition, the best students can count on the redemption of part of the loan.

Despite preferential conditions, interest in student loans declines year by year. The reasons for the situation can be seen in the better and better economic situation of students, which allows financing education on their own. There is also merciless demography here, and more precisely than the demographic one, which irreversibly deprived universities of thousands of students. Against all odds, student loan seems to be an indispensable solution, because even the smallest group will find a person who will properly use the support received.