While future students finalize their choices on Parcoursup and registrations in universities, business schools and engineering schools are in full swing, the question of financing their studies is becoming central for many families. Tuition fees, accommodation, transport, computer equipment… the bill can quickly reach several thousand euros per year. To cope with this, many young people are turning to student loans, a solution which allows them to spread out these expenses and defer repayment until they enter working life.
However, not all student loans are created equal. Interest rates, additional costs, parental guarantee, partnerships between banks and higher education establishments are all elements which can significantly vary the cost of credit. Some banks even offer zero interest offers or preferential conditions for students in certain schools. Maxime Chipoy, editorial director of the Meilleurtaux group, details the reflexes to adopt to finance your studies at the best price and avoid the most frequent pitfalls.
What are the conditions for obtaining a student loan?
To obtain a student loan, you generally need to be majorbe enrolled in a higher education institution and respect the criteria set by the bank. Most establishments reserve these credits for young people aged 18 to 28 or 30 years oldeven if some brands can be more flexible depending on the course followed.
The student’s income is generally not the main criterion of analysis. Banks mainly examine the solidity of the study projectthe professional prospects of the chosen training and the presence of a deposit. The amounts granted can range from a few thousand to several tens of thousands of euros to finance tuition fees, accommodation, current expenses or even a stay abroad.
How much does a student loan cost today?
Unlike a home loan, there is no single reference rate for student loans. The conditions granted vary greatly from one establishment to another. “It depends on the banks, your school and the prestige as well as the expected remuneration after that school”explains Maxime Chipoy. In most cases, the rates offered vary between 2% and 3% for a period of approximately five years. However, some banks regularly launch promotional offers. “I saw that at the moment, at Crédit Mutuel CIC, there are student loans at 0%, but subject to means testing”underlines the expert. The advantage remains significant compared to traditional consumer credit. “For the same duration, a student loan is half the price of a traditional consumer loan”recalls Maxime Chipoy.
School-bank partnerships, the best way to pay less
To obtain the most advantageous conditions, students should contact their future establishment for information. “Those who obtain the best conditions today are those who sign with their school’s partner bank »indicates Maxime Chipoy. These agreements are particularly common in major business and engineering schools or certain long courses. Banks see a reassuring profile there, with generally favorable professional prospects. “Those which allow you to have the most guaranteed opportunities with the most attractive remuneration”he summarizes. Before signing a loan, it is therefore useful to check if the establishment has a partnership with a bank. This information is often communicated during registration or by student offices.
Why you should first consult the parents’ bank
Another piece of advice from the expert: start your procedures with the family bank. “The first move is to go see your parents’ bank and see what it offers before looking around at other establishments”he recommends. A logical strategy since parents often play a central role in the operation. “ Banks are keen to retain not only the studentthe future asset, but also the parents of the student who are generally guarantors of the loan »explains Maxime Chipoy. This already existing commercial relationship can sometimes make it easier to obtain an attractive offer.
Parental guarantee is almost always requested
In the vast majority of cases, the bank will require a guarantee. “A deposit is systematically requested”recalls Maxime Chipoy. Exceptions mainly concern students who already have regular income or those who benefit from a state-guaranteed loan. In addition to this financial aspect, parents also have an important role to play in supporting their child.
What if your parents can’t act as guarantor?
In most cases, banks require a parental guarantee to grant a student loan. However, some young people can turn to the state-guaranteed student loan. This system allows you to borrow without a personal guarantee or parental guarantee, with the State guaranteeing part of the risk. The borrowable amount can reach several tens of thousands of euros according to the conditions in force. However, this solution remains granted within the limit of an annual envelope and subject to acceptance by the partner bank.
Why comparing several offers remains essential
Even when your school has negotiated an advantageous banking partnership, it is advisable not to stop at just one proposal. From one bank to another, conditions may vary on several points: the interest rate, the application fees, the maximum amount grantedthe conditions of the reimbursement deferral or the guarantees requested.
The comparison is all the more important as student offers evolve regularly. Some banks occasionally launch promotional operations with very attractive rates, or even zero-interest loans under certain conditions. Others may be more flexible on the amount financed or the repayment terms.
Comparing several proposals also makes it possible to measure the real interest of a school-bank partnership. Although these agreements often offer advantageous conditions, they are not not systematically the most competitive for all profiles. A few additional quote requests can sometimes make it possible to obtain a better offer or negotiate more favorable conditions.
Be careful not to use the loan as a reserve of money
For the expert, the main pitfall of the student loan does not lie in the interest rate. “It’s a great tool. However, it is a tool that must be handled with vigilance »he warns. Unlike a mortgage, the student loan is an unallocated credit. Once the funds are paid, the student is free to use them as they wish. “The bank will not ask you to justify what is done with it”underlines Maxime Chipoy.
The expert therefore recommends that parents to supervise the management of this money as much as possibleespecially when the sums are large. To limit the risks, he considers it preferable to favor a gradual release of funds rather than a full payment from the first year. “Especially if you take a loan for five, six or seven years and you recover the entire amount from the start”he specifies.
Advice to follow before signing
If he had to remember only one rule, Maxime Chipoy would not hesitate. “Make your budget”he answers bluntly. According to him, a student loan should finance costs related to studies, housing, transport or food, but not become an envelope intended for leisure. “The student loan is intended to finance your student life. We must not make a mistake on this”he insists.
The stakes are all the more important as itThe credit must be repaid upon entry into working life. It is therefore better to ensure that the amount borrowed remains consistent with the income that the student can hope to receive once they graduate. “There must still be consistency between the amounts borrowed and the amount that the new asset should obtain after their studies”concludes the expert.
