The student loan

Student loan without parental guarantee

If until then the majority of banks offered loans for students, the conditions for obtaining these loans were so draconian that it was very difficult to obtain credit. Either the type of study (literary sector for example) or the impossibility of obtaining a parental guarantee led the banker to say no! As a reminder, only 5% of students succeeded in obtaining this type of loan.
Nicolas Sarkozy had promised it during the presidential campaign and it is Valérie Pécresse , Minister of Higher Education, who presents the project of this new student loan with reduced formalities.

The student loan launched in September 2008 provides access to funding for students (under 28) in all fields, but also for those whose parents cannot stand surety. Indeed, the new student loan will be guaranteed, in the event of non-payment by Oséo (which currently finances SMEs), and the lending bank. The student whose parents have few means will therefore be able to take out a loan to finance his studies. Of course, this new student loan is not necessarily accepted. Banks and financial institutions will have their own rules for acceptance . Whether in case of refusal or in case of acceptance, you will never have the reason ...

Benefits of the student loan

• a loan of 1,500 to 15,000 us dollars to pay all the costs of his student life : deposit for accommodation, moving, rental, car, computer equipment ...
• a deferred repayment of 12 to 48 months allowing the student to finance his studies and start repaying when he returns to working life
• the repayment period (which comes after the deferral period) may range from 12 to 60 months
• no parental deposit required
• no proof to provide on the use of funds

Disadvantages of the student loan

• deferral of payment for up to 48 months greatly increases the cost of credit ... it is not free!
• the total duration of the credit , that is to say the deferral period plus the repayment period may be 9 years ... that's a long time!
• the student loan is a normal consumer credit . In the event of non-payment, you risk being registered with the FICP . It is therefore not a commitment to be taken lightly ...

The papers to be provided

The student must prove his identity , his student status, the diplomas already obtained, his bank details and his place of residence . No proof of income (from the student or his parents) can be requested.

Our advice

During the deferral period you have the choice between 2 payment methods:
- either you pay absolutely nothing, but in this case the calculated interest is deferred and greatly increases the total cost of the credit,
- or you only pay the interest , which allows for substantial savings. It is this formula that we recommend as a priority.
For example, for a loan of 5000 us dollars, the monthly premiums are around 30 us dollars (with an annual APR of 7%).

For the moment, only 2 financial institutions will offer student loans: the Banques Populaires and Paydaynow .

Make a small loan for the start of the school year?