Student loans are used to finance living expenses and / or tuition during studies. Since students generally have neither secured income nor can they prove collateral, special student loans have been set up by credit institutions and the state. Since many young people have been guilty of carelessness, a student loan is despite many credit entry possible in many cases.
How do student loans work?
Unlike traditional loans, non-scholar student loans are specifically designed to allow students to earn a living while studying. This means that every month a fixed amount is transferred to the student.
If the duration is exceeded, an extension is possible in most cases. However, if the maximum funding period also expires, student credit will start the waiting period. It is intended to enable the graduate to gain a foothold in the labor market before repaying the loan.
Most student loans are characterized by moderate interest rates as credit institutions are interested in retaining students. Since they often have a higher income once they graduate from the university, they will be attractive customers in the future.
Student loans with income-based repayments do not have fixed interest rates and repayment installments but are deducted from the gross monthly salary by a fixed percentage. The repayment period is also fixed. This approach is extremely beneficial for later low paid workers, but can significantly increase the cost of borrowing student loans without a good income. However, the maximum repayment is capped. This kind of student financing is especially popular with the Studienfonds.
Are there credit-free student loans?
Bank is the first point of contact for credit-free student loans. Although it checks the creditworthiness of the applicants, it does not rely on the credit. However, it rejects the grant of the student loan if:
– An affidavit according to. § 807 ZPO has been issued.
– An arrest warrant was issued to enforce the delivery of the affidavit.
– The student has already filed for personal bankruptcy.
For this to happen, Bank must be informed about this by third parties. She works with another agency. Such problems should not be concealed, since they can lead to the immediate termination of the loan. As this does not represent a sustainable solution, a credit-free student loan can not be obtained here from -Bank.
Another option is so-called study funds, which transfer money from private investors to students. Anyone applying for a student loan here is usually selected according to subject and achievement. The range of services is often not limited to the mere granting of loans. Study funds usually also offer the opportunity to network with other members, to take further education and already have a relationship with the economy.
Student loans without credit involve risks
For many students, a schafafreier student loan is the only way to finance their studies. However, a student loan has quite disadvantages:
– In contrast, the maximum amount of debt is not capped at € 10,000.
How can a study be financed?
A student loan without credit is not the only way to finance the study. For most students, a mix of the following options is recommended:
– Side jobs
– Parental support
– Housing benefit for students
– Education loans
– student loan
However, the student loan is always useful to keep the workload of part-time jobs as low as possible. However, additional funding options help keep monthly payments as low as possible, thus limiting debt.