To complete their budget or finance an unforeseen event, students can benefit from lower rate credits without the parents necessarily taking surety.
Each year, the budget of a student varies between 8,000 euros, according to the figures of the National Observatory of Student Life, and 15,000 euros according to those of the student union UNEF – which includes more items of expenditure (expenses of registration, books, housing, food, clothing, outings …). And again, this sum is naturally higher for students of the grandes écoles, because they have to pay registration fees of 7,000 to 12,000 euros, against 300 to 600 euros for a year at the university.
A cost that sometimes requires the use of credit to avoid too tricky month ends. Depending on the nature of the expenses, the financial situation of the student, and that of the parents, there are different credits at advantageous rates.
The classic student credit
All banks offer student loans ranging from 1,500 to 120,000 euros depending on the duration and cost of studies, at particularly exciting rates. For large amounts (more than 10,000 euros in general), the deposit of parents is almost always requested.
Even if the advertising inserts bloom in the window of banks at the beginning of September, it is possible to take out this type of loan during the academic year.
Each banking network determines its rate grid according to studies and partnership agreements concluded with higher institutions. “Our bank has signed more than 300 partnerships with schools and universities for different sectors, so their students have access to us at preferential rates,” says Christophe Pierre, marketing manager at LCL credit.
The differences are significant, since average credit rates range from 1.7 to 3.9%, for 40 000 euros borrowed over eight years. To find the most competitive rate, and know which banks to turn to, you must contact the school’s tuition department or the student office (BDE) of his university.
If no agreement has been reached between the institution and a bank, ask your bank advisor, some networks grant special conditions to the children of their clients or their members (for mutual banks).
Lastly, banks such as the Center-East Credit Agricole offer an extension of credit in the course of study when the student decides, for example, to spend a year abroad to study or to do an internship. And if he finds a job very well paid once graduated, it is possible to repay his credit in advance without penalty.
The deposit of their parents. It is 70% guaranteed by the State, the balance being borne by the bank, which is why some of them charge a deposit (depending on the student’s situation).
It operates like a conventional consumer credit, with an amount of up to 15,000 euros and a term of two to ten years. The partner banks (some Caisses d’Epargne, CIC, Crédit Mutuel, Societe Generale) freely set the rate of this credit.
Attention, this rate is not always exciting and fees of a few hundred euros are often charged. The institutions that market this credit rarely advertise, so it’s up to you to find out.
The return advance
In the event of unforeseen expenses (registration for one semester abroad, cost of a study trip during the year, September entry fees, etc.), young people can apply for a cash advance from their bank. Almost all institutions offer this type of credit at zero rates without any fees. But the amount is limited since it does not generally exceed 1,000 euros.
The driving license credit
This loan is intended for young people between 16 and 25 years, not necessarily students enrolled for the first time in driving license training (motorcycle license of over 125 cm 3 or B car license). It is granted only once and provided that the training is conducted in a driving school partner state.
As needed, the driving school draws up an estimate of the number of hours required. Then you have to go to a bank to apply for financing your license. The rate of this credit is 0% because the interest is borne by the State. If you, or your parents, accept the funding, the money goes directly to the driving school. The amount of this loan varies from 800 to 1,200 euros and the maximum monthly repayment is 30 euros (or 1 euro per day).
The cash advance
If you are a scholarship student, back to school is synonymous with financial hardship, because, despite promises repeated each year, the state often takes time to implement the payment of scholarships.
To offset the cash gap, the banks offer an advance on the stock market. This authorization of overdraft is free, without expenses of file or agios, and can reach 1 000 euros during three months.
Some institutions, such as BNP Paribas, offer up to 3,000 euros at a very low-interest rate of 1.01%. To obtain it, you must provide your agency with your award notice. Be careful, some schools ask the solidarity guarantee of parents to implement this funding.