Student loan rate 0: what possibilities?
When you are a student, it can sometimes be difficult to cope with the various expenses necessary to complete your schooling. A student loan can then be a good solution to finance the various costs related to studies.
What is the student loan?
The student loan is a type of consumer credit for persons enrolled in a higher education institution. It aims at financing the expenses related to their studies, these including the university registration fees, the purchase of material (the books of the curriculum or computer equipment for example) but also all the expenses necessary for their everyday life, such as rent.
Most of the time, it is a loan that can be repaid once the studies are completed. It often comes in the same form, that is to say, divided into two periods: the first, lasting from 2 to 5 years during which the student does not have to repay his loan (or only in part) is followed by a second period, ranging from 2 to 4 years, which constitutes the major part of the reimbursement.
The amount can vary from one organization to another but generally it can not exceed a maximum of 50,000 euros.
The conditions of acceptance may differ from one institution to another. However, we often find some essential criteria. To qualify for such a credit, the student must be enrolled in a higher education institution, be under-28 at the time of the subscription of the loan and have either French nationality or that of one Member States of the EU or the European Economic Area with proof of uninterrupted residence in France for at least 5 years.
Most of the time, it is necessary for the student to have a surety, a person who can be a guarantor in the event that he is unable to repay his loan.
Being a consumer loan, the student loan is subject to the regulations in force for this type of loan. Thus, the information elements such as the annual percentage rate of charge (APR), the repayment schedule or the terms of early redemption must be communicated to the borrower before the subscription. As for most credits, the withdrawal period is 14 days following the signing of the contract.
What are the solutions for a loan rate 0 when you are a student?
A zero interest loan is a loan that does not involve interest. Thus, the refund includes only the amount borrowed, at no additional cost (except in the case where the borrower decides to take out optional insurance). It’s hard to find zero-rated student loans. It can be found with some financial institutions but it is an offer that is not widespread and most of the time, the amounts that can be borrowed are not very high.
- Banking institutions
BNP Paribas offers a credit called “Prélib’Campus”, reserved for students and without interest. It allows students to borrow up to 1,000 euros, repayable over 12 months, with maturities amounting to 83.33 euros. It is a credit that can be useful if the student needs a boost in his schooling or, to cover a one-time expense related to his studies (a trip abroad for an internship for example). However, since the maximum amount is not very high, if the student needs more money to meet his expenses, he will have to find another solution.
Caisse d’Epargne offers a similar student loan, still at zero rate but up to 2,000 euros. Here the refund is made in 36 monthly installments (3 years).
There are also banks offering zero-rated student loans in partnership with their region. For example, Creditcole makes it possible to borrow up to 5,000 euros for students in the Champagne-Ardenne region. Interest is borne by the region as well as by Creditcole du Nord Est.
- The student loan rate zero Domaew
Formerly known as a student loan, today it is a zero-interest loan. It is a credit that can be solicited by students without resources and having financial difficulties.
The conditions imply to be enrolled in an institution of higher education, not to be a student on social criteria and not to be a scholar on university criteria. It is a loan allocated on local, educational and social criteria. It is repayable without interest and the repayment term can be up to 10 years after graduation. The maximum amount is 3000 euros and the amount borrowed on average is 1500 euros. If the student abandons the studies for which he has obtained the loan, the repayment must be made 10 years after the payment. To benefit from this, the student must contact the Domaew of his region directly.
- The loan of honor of the General Council of the North
It is a loan rate 0 reserved for students under 28 years of age at 31 December of the new school year, domiciled in the Department of North and enrolled in a French institution of higher education, entitled to receive scholars. He must be able to present a deposit that can justify his income. It is a loan of up to 1500 euros, repayable over 5 years. A student can benefit from a maximum of three loans of honor during all his schooling.
- The license to 1 euro per day
The license for 1 euro per day is a form of loan rate 0 given the absence of interest, they are supported by the state. It is a credit that allows young people between the ages of 15 and 25 to benefit from a payment facility in the financing of their driving license. The total cost of the training remains the same, but it allows the borrower to spread his payments over a certain period of time while the financial institution chooses to advance the necessary money to the training center.
It is a device that facilitates access to a driver’s license, its cost can be a real brake for some people. It takes into account the driving training of vehicles of category B (light vehicles) or category A (motorcycles).
To benefit from it, you must first go to a driving school and ask for a quote that will then be sent to the financial institution to apply for credit. The candidate will have to justify sufficient income in order to be able to pay monthly installments of 30 euros per month or, to call on a guarantor who will have to repay the loan in its place in case of problem. If the person is a minor, his parents will have to apply for a loan on his behalf.
- The zero interest student loan in Guadeloupe
Since 1996, the region of Guadeloupe has been offering young students access to the 0% loan. Among the banks involved are Creditcole, Caisse d’Epargne, BNP Paribas, Societe Generale and La Banque Populaire. Bank of the French West Indies. According to the student’s file, the amount of the capital borrowed can go up to 15000 euros and the interests of the credit are entirely taken in charge by the regional council. The repayment term can reach 8 years, including a maximum of 5 years of partial deferral of capital amortization.
To qualify for this loan, the student must be between 18 and 25 years old. However, if he is older, he is entitled to a derogation up to 29 years provided his studies have not been interrupted.
Thus, there are certain solutions to be able to benefit from a loan with zero rate when one is student. However, if they are not suitable, you can still go through the traditional student loan, financial institutions often offering very advantageous rates for this category of credit.
What are the necessary supporting documents for a student loan?
The requested documents will often depend on the bank or institution specializing in consumer credit. Whichever organization you choose, you may be asked for the following documents:
- A proof of identity valid (national identity card, passport, residence or residence card …)
- A proof of address of less than 3 months (bill of electricity, gas, lease contract, receipt of rent …) OR a certificate of accommodation if the student is hosted, accompanied
- by a proof of address the person hosting him and his identity document
- A proof of student status (student card, school certificate, letter of admission …)
- The last three bank statements or savings account statements
- Supporting documents will also be requested from the guarantor. We find among them:
- A proof of identity
- Proof of address
- Proof of income (last tax notice, last payslip, certificate of family benefits …)
- The last three statements of account
- A bank or postal identity statement (RIB or RIP)
Depending on the school chosen, students may also be asked to provide proof of their future expenses (school bills, invoices or quotes for school equipment, rent contract, invoices). or quote to justify installation costs …).
However, this list is not exhaustive and the organization may request additional documents, particularly if the borrower’s situation has certain peculiarities. top