If the cost of higher education is largely borne by the State in public sectors, the bill for private schools reaches between 3,000 and 10,000 € per year.
To afford the course of their dream which will give them a maximum chance of professional integration, many students have no other choice than to take out a loan, even before they enter working life.
Better to choose wisely...
A dedicated offer
Most banks offer one or more student loan offers.
Make no mistake about it, these are classic consumer credits, with the difference that they are “assigned”.
In other words, the amount granted should only be used to finance the scope mentioned in the contract, namely your course
. But don't panic, most formulas also provide for the possibility of paying for everything related to studies, such as the purchase of computer equipment or why not a car to get to class, but also your accommodation or food costs.
Banks are in practice not very attentive to the expenses to be financed, as long as you justify registration in a higher education establishment.
An advantageous borrowing rate
The interest rate applied to student loans is generally attractive since the objective is to retain young people to encourage them to take out other products and services later.
According to the National Consumer Institute (INC), it is currently necessary to rely on an annual percentage rate of charge (APR), which therefore includes all costs, including insurance, varying between 1 and 2% on this type of credit. .
Better still, some establishments do not hesitate to offer APRs at 0%.
If a price comparison is obviously necessary, the cost is however not the only criterion to take into account!
Conditions under the magnifying glass
Depending on your needs, you can borrow a few hundred or several thousand euros and even up to €50,000 depending on market offers.
That said, the larger the amount, the stricter the guarantees required.
Banks often require the presence of a parental guarantor and the subscription of borrower insurance covering death and disability when the amount involved is high.
To avoid paying the high price, the INC also recommends opting for an offer that provides for a gradual release of funds according to your financing needs.
The advantage?
Interest will also be applied progressively!
The issue of reimbursement is also central since students have little or no income.
This is why this type of credit is generally spread over 2 to 10 years.
Then check that it includes a deductible period, also called “deferred repayment” which will allow you to limit your monthly payments to the sole cost of interest and insurance during your studies, before starting to repay the capital once you graduate. in your pocket or, even better, when you get your first job!
Our "STUDENT" file
Finally, to end this financial burden as quickly as possible, make sure that the contract allows for early repayment with little, if any, penalties.
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Focus: A state-guaranteed loan
If the banks refuse you a loan for lack of income or guarantor, you can turn to the loan offer guaranteed by the State.
This credit reserved for students aged 18 to 28 was rightly upgraded in 2021 as part of the France Relance plan.
Its amount has thus increased from €15,000 to a maximum of €20,000, while the grant quotas have been multiplied by five.
To qualify, you must contact a partner bank (Societe Generale, Banques Populaires, Caisses d'Epargne, Crédit Mutuel, CIC, Crédit Agricole, Banque Postale or BFCOI in Overseas France) between the months of May and September.
Note that each institution remains free to set the interest rate.
Good to know: an alternative is to use crowdfunding.
But be careful to inquire beforehand with the ACPR, the sector policeman.
Indeed, some
crowdlending
sites (credits between individuals) such as StudyLink and Edukys, which became known a few years ago for their student loans, have since ceased their activity.
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