Sunday, 27 July 2014

Is student loan pays off

A student loan is an attractive proposition not only for students but also for doctoral universities. It is addressed primarily to the poorest who can not afford to pay for education.

On what basis, and who can get it?

A student loan is a preferential credit granted full-time students and part-time and doctoral students on the basis of the Act on student loans and credits of 17 July 1998 (as amended). The granting of student loans can be applied for learning both in the public schools, and private schools, assuming that the studies started before the age of 25. You can join the program regardless of year of study, allowing you to benefit from the assistance of both those just starting their studies at university, and students of the fourth or fifth year.

What are its objectives?

A student loan is granted for a period no longer than the period of study, with a maximum of 6 years. It is paid in installments, the actual height is 600 per month. Installments are paid during the academic year, ie during the actual collection of science - it is a maximum of 10 months of the year. The continuation of the monthly payments confirmation learn, passed by the student at least twice a year - benefit is paid after completion or discontinuation of study.

A special feature of student loans is that the repayment (except in the case of study discontinuation) starts only after two years after graduation. It takes place in monthly installments and the repayment period is at least twice as long as the period of receiving benefits. For example, if a student fetch a loan of twenty months (2 years academic), its repayment will be spread over a minimum of 40 months.

It was only during the start of the repayment of the loan, the interest charged to the student. Their height is half the value of the rediscount rate for the Polish National Bank. Its current level is 5%, so the interest rate on the loan is only 2.5%. Previously, when downloading the loan, as well as during two years grace period after graduation, interest shall be charged with a specially created fund Student Loan.

Is this a good solution?

The drawback of student loans is that newly minted college graduate begins his "adult life" with considerable debt. It's actually the only downside of this preferential credit, because he has much more advantages. Its greatest advantage is the extremely low interest rates, the amount of which is often several times lower than the values ​​encountered at cash loans. In addition, there is a solution for those who do not have the capacity to take out any other loans. Complementing these features for a period of grace period after graduation and long-term same repayment obligations, it can be concluded that the student loan is a loan that pays off.

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