Month: February 2020

Taking out a loan as a student?

As a student, the shortage of money can be enormous – depending on how extensive or not extensive the parental help, the support or the wages of the part-time job. So why not take out a loan as a student? Going to the bank is basically quick, and there are also numerous opportunities on the Internet to make money more or less quickly – but do these opportunities open up to students?

Unfortunately, you have to put it this way – in the eyes of the banks, students are hardly better off than pensioners or even unemployed people. This is simply due to the fact that they do not have a fixed income – more or less regular support from their parents’ home is not counted as income.

Take out a guarantee loan?

Take out a guarantee loan?

In principle, however, students, like any other citizen, have the option of taking out a guarantee loan. Banks usually speak of a loan with a second borrower in order to avoid the term deterrent loan. The second borrower is to be held fully responsible for the loan amount taken out, even if the loan amount itself went to the first borrower. In order to be able to approach the named guarantor, the bank does not have to take legal action against the first borrower; a default is sufficient.

Education loan targeted for students

Education loan targeted for students

Educational loans are sometimes intended for schoolchildren, but primarily for students: it can either be taken out through bank, ie as a educational loan, or in some cases from other banks or savings banks. If the education loan is involved, the maximum loan amount is 7200 dollars, which are paid out in monthly installments of between 100 and 300 dollars. However, one of the prerequisites for this educational loan is that you are already in your main studies – a hurdle that the savings banks and banks do not provide for their educational loans, but require a certain credit rating.

Conclusion: Basically, students are better served by having family members help them out privately or looking for additional income that does not have a negative impact on their studies. However, if this is not possible, educational loans are an attractive way to still be able to finance your studies.