Credit for tuition fees
If you are planning to study, you have to consider how it should be financed beforehand. Not every student has the option of financial support from parents. This is why many students stay afloat with a part-time job, which often leaves little time to learn. With a loan for the tuition fees, students receive the necessary financial support and can therefore concentrate 100 percent on their studies.
The loan for tuition
Since this is a state funding program, the conditions are more favorable than at a bank that is geared towards maximizing profits. In the case of a loan for the tuition fees of bank, the borrower does not receive the loan amount in one sum, but rather monthly. Depending on requirements, he can choose between a monthly payment of between 100 and 650 dollars.
The loan is granted regardless of your own income or that of your parents. Furthermore, the student does not have to provide any collateral for the loan. Another great advantage is that the interest rate is fixed for the entire term and is therefore independent of any interest rate fluctuations. The repayment begins within a period of 6 to 23 months after the last payment. By this point, most students have found employment and can easily repay the tuition loan. Those who earn well can make additional special payments at any time to repay the loan more quickly.
Student loans from regular banks
Most private banks now also offer student loans. These can differ from bank to bank as far as the exact form is concerned. Therefore, you should compare the different models carefully before applying to find the right offer for you.
What else to look for in a student loan?
In the worst case, a student loan that is not carefully thought out can also turn out to be a debt trap. Therefore, the loan should only be taken up in the amount that is absolutely necessary. With almost all student loans, repayment begins within two years of the end of the course. So you should prepare for it early. If you want to change your subject during your studies, you should consider that this does not delay the repayment date. So it may be that he has to start repaying the loan during his studies. In addition, the duration of payments is in most cases limited to 10 semesters. Those who need longer to study will then no longer receive payments.
If other debts have been accumulated in addition to the student loan, this can easily lead to financial difficulties. If you take out such a loan, you should have the contract stipulate that both special repayments and early redemption are possible free of charge. Some banks charge special, otherwise separate fees for this, which make the loan unnecessarily expensive. Most student loans are only granted to full-time students who study at a state-recognized university.