Student loan is a type of debt addressed to students and doctoral students aimed at financially supporting young students. From January 2019, the Ministry of Science and Higher Education introduced several significant changes that significantly facilitate the receipt of such a loan. It probably has to do with little interest at the moment.
Despite the fact that the first student loans in Poland were already paid out in 1998, they are not as popular as in the West, for example. This may be due to the fact that the best universities in Poland are free, unlike the United States or Great Britain, and the conditions for qualifying for studies are most often the results of the final exams and assessment on the certificate.
However, there are people who dream of university studies, but due to the need to study extramural or choosing a private university they are obliged to pay tuition fees. Then student loan is very useful. How to get it?
One of the basic conditions for obtaining a student loan is student status. A document confirming such status is of course a valid ID, which we receive after qualifying for studies. Persons who are in the process of recruitment must provide a document confirming participation in the recruitment procedure. The loan is therefore directed to:
- first and second cycle students who were under 30 years of age prior to starting their studies
- PhD students who are under 35 years of age.
It does not matter whether we study in a day, evening or extramural system or whether the university is public or private. The tranches paid out do not have to be used to cover the tuition fee, so anyone who meets the above conditions can apply.
Detailed student loan terms
You can apply for a loan throughout the year, and not as before before the start of the academic year. Applications are considered within 30 days from the date of submission. The loan is ultimately granted for the duration of studies and repayment takes place 2 years after their completion. During this time, the student does not bear any costs associated with the loan, and all interest is regulated by the state budget.
After the grace period, we begin paying off the debt and accrued fees. The number of installments is twice the tranches paid, ie if we used the loan for 3 years, we will repay it for 6 years. The installment amount is half the amount of the monthly installment charged. In the case of the standard tranche of $ 600, the loan installment will amount to $ 300 plus accrued interest. The interest rate for January 2019 was 0.5% of the Funding Square Bank rediscount rate, ie 1.75%.
The loan is granted for a maximum of 6 years in the case of first and second cycle studies and 4 years in the case of doctoral studies. Money is paid out for 10 months – from October to July. There are 4 tranches to choose from: 400 USD, 600 USD, 800 USD and 1000 USD. This amount should be chosen at the stage of completing the application.
The financial condition of the applicant is also a condition for receiving a student loan. Net income cannot exceed $ 2,500 per family member. The method of calculating income is analogous to the one that applies when applying for a social scholarship at the university.
The bank will of course require the loan repayment guarantee from the candidate and in most cases it is the parent who becomes a resident. However, there are people in a slightly more difficult situation, but without fear. There are other ways to get a loan repayment guarantee:
- surety of Yeslink Bank
- guarantee of the Agency for Restructuring and Modernization of Agriculture (only for those living in rural areas).
The terms of such a surety depend on the life and financial situation of the candidate. However, net income cannot exceed $ 2,000 per family member.
People in a difficult life situation or with outstanding academic achievements may apply for the redemption of part or all of the loan. The situation is as follows:
- 20% in the case when a graduate completed education in a group from 5.01% to 10% of the best graduates / doctoral students
- 35% in the case when a graduate completed education in a group from 1.01% to 5% of the best graduates / doctoral students
- 50% – if the graduate completed education in a group of up to 1% of the best graduates / doctoral students
- up to 100% in the event of a particularly difficult life situation or permanent loss of repayment capacity.
To find out how to submit an application, it’s best to go to the branch of our choice where the loan serviceman will explain everything to us. Nevertheless, the required documents in each bank are almost identical.
First, prepare the student loan application. It can be submitted both in paper and electronic form. This is a novelty that came into force in January 2019. The following documents should be attached to the application:
- statement of income for the previous year
- certificate from the university that the applicant is a student or doctoral student; possibly a document confirming participation in recruitment
- other documents required by the bank in which we apply for a loan; they are used to assess creditworthiness and how to secure their repayment.
A student loan does not have to be intended to cover the costs of studying. Although most people allocate it in this way, there are students who use the loan for another purpose.
Some put their money into a high-interest savings account. Does that make any sense? Yes, provided that we do not withdraw money, and gradually transfer it to a savings account. After graduation, it may turn out that we have earned several thousand loans, and the longer we leave them there, the more we will gain.
People who dream of opening their own business can use the funds obtained from the loan in the form of initial capital. Such an entrepreneurial approach is not very popular, but if we have a good business idea, we will multiply this financial contribution very quickly. This is a great start option, especially since the creditworthiness after graduation is in many cases zero, and the student loan terms are very attractive not to use them.
Is it worth it?
Student loan is a very attractive offer, which we will use only during higher education. Similar conditions will not happen again, which is why it is worth considering applying for such financial support not only when we really need it, but also if we are thinking about investing the accumulated funds in the future.
There are many possibilities, and an additional cash injection for a rainy day is definitely a sign of financial independence, which every student strives for.