For students considering going back to school or even for students who want to progress in their course but do not have the financial capacity to do so, student credit is a financial product to consider. It can be a help when it comes to funding your education and expanding your knowledge.
Unfortunately, not all Portuguese have easy access to education due to lack of monetary possessions to pay university fees, materials and textbooks. All these elements increase in value as you move from secondary to tertiary education.
Whether for a degree, for those who already work and want to do a postgraduate or master’s degree, or even for those who want to acquire new knowledge, student credit can be a solution.
Factors To Consider In A Student Credit
When considering applying for a personal credit directed towards education or training, it is important to consider some factors. Firstly, you should choose the desired course and get in touch with the higher education institution concerned, universities often have funding partnerships with certain financial institutions.
Afterwards, you should also do a market analysis (yes, even if the university has its own funding) to choose the best student credit for you.
Lastly, read through all the available information about the student loan options presented. There are various interest rates and repayment terms suited to each borrower’s financial standing. Please also note that your effort rate should not exceed 33% to avoid default.
What are the advantages of a student credit?
This type of loan has very targeted benefits for students, namely:
- Lower interest rates compared to other specialized loans;
- It is not possible to pay any monthly installments during the studies, starting to repay the loan after the end of the course (with the possibility of having a grace period that varies depending on the loan in question);
- In some cases, interest rates may drop if the student has very good grades – this is a way of rewarding success;
- Depending on the type of course, the student may choose from various forms of payment: monthly, quarterly or even funding settlement at the end of the course.
It all depends on the student credit you opt for. You should, however, pay attention to the special conditions of the offers. For example, some of the bonuses (such as reduced interest rates or certain payment methods) may only be available when the customer subscribes to an associated student account or a credit card targeted at higher education students.
What are the requirements for applying for this type of financing?
Although the requirements and documentation required vary by financial institution, these are generally required across:
- Be of legal age;
- Be enrolled in a university or polytechnic, public or private, national or international;
- Study programs such as Erasmus abroad may also be considered for student credit;
- Not blacklisted by Banco de Portugal;
- If student credit has the possibility of reducing interest rates according to the student’s grades, proof of these results is required.
Which institutions offer student credit?
The offer is quite diverse, it all depends on the bank chosen, the amount of financing and the client’s characteristics.
For example, Margarita and Richard have a combined income of $ 3,000 and Margarita wants to do an Executive Master in order to make her career progress. This course will cost 10,000 dollars and the couple would rather have a longer payment term.
The Agricultural Credit, for example, provides, for this amount of funding, paying in 36 months, a monthly installment of 299 dollars. This offer has an APR of 4.9% and a capital shortage ranging from 6 to 42 months depending on the type of course. Finally, the loan also includes teaching materials, living and food expenses, if the client goes to study outside his / her residence area.
Another institution that provides student credit is ABC Bank. For the same amount of funding and with the same repayment period, this financial institution offers a 5% APR and a similar installment (299 dollars).
In addition, this bank offers exemption from the payment of early amortization commissions (total or partial) of the outstanding amount and includes life insurance with coverage of 100% of the financed capital and credit protection insurance.