What is a student loan?On January 25, 2020 by admin
Do you need extra money as a student, for example for your driver’s license or internship abroad? Then you can borrow money in the form of a student loan at the bank. The loan form of student loans differs from bank to bank, just like the amount that you can borrow.
Maximum student credit
Agree bank offer revolving credit with adjusted conditions for students. The maximum amount that you can borrow is between 2,500 USD and 6,000 USD, depending on your studies and the bank you choose. You choose how much you withdraw from this amount. Only the amount that you actually withdraw is covered by the student loan.
Student credit HBO and University
HBO and Wo students can borrow more than MBO students. You can also borrow more if you are no longer a freshman. The higher the level of your studies, the greater the chance of a well-paid job. And the further you are in the study, the greater the chance that you will obtain this diploma. The bank therefore has more certainty that you can repay the loan if you have a higher study level or are in a higher year.
Repay student loan and interest
The advantage of this student credit is that you do not have to make any repayments during the study. You do, however, also pay interest for this loan, even during the study. This interest is lower than the interest of a normal revolving credit, but is still high. Certainly because you will only pay back after years, the interest will rise considerably.
After your studies, the bank converts the student credit into a revolving credit. From that moment you therefore also pay the interest rate that is associated with this loan form. In this overview you can compare the revolving credit of all banks to see how much interest you pay for this.
Tip! You don’t have to pay off during the study, but you can. If you pay off (in part) in the meantime, this can save you a considerable amount of interest.
Student credit on checking account
Another form of student credit is marked in red on your student account. As a student you can be red at most banks up to 1,000 USD. At ABN AMRO you can be in the red up to 5,000 USD. You pay a high interest rate at each bank on the amount that is in your red.
Student credit or loan from DUO
A loan from the bank is more expensive than a loan from DUO. If you want to borrow money as a student, then it is smart to first try to borrow the money from DUO. If you take out a high student loan at DUO temporarily, you will also have a large sum together for a while, for example for a minor abroad.
The interest you pay on the loan from the bank and from DUO can vary by 7 percent. You will not feel this difference in the short term, but you will feel it if you have to pay back after the study. Moreover, DUO is more flexible if, for example, you have no job for a while, which means that you cannot pay back. At banks, you must repay at least 2 percent of the loan amount per month. So you can really only borrow money cheaply from DUO as a student, although here too interest rates can rise considerably after years.