Higher education is a priority for most high school graduates. With a diploma, a young person is more likely to build a good career and secure a decent future. Not everyone is able to pass a rigorous competitive selection and enroll in free education. But this does not mean that higher education is the destiny of the elect. Education loan provides an opportunity to get a diploma to students with different financial capabilities.
Student loan: features and conditions for obtaining
It is possible to acquire a promising profession in a paid department, and the applicant does not need to have the full amount of money needed for training. It is enough to prepare documents and submit an application to one of the banks offering a target loan.
Educational loan appeared on the Russian market relatively recently. In general, it is a kind of consumer loan, but has a number of features. This is a target loan designed to pay for the services of an educational institution (technical school, college, university), and the conditions for it are somewhat different from other types of credit products. A number of banks also provides borrowed funds for MBA and training in foreign universities. Other features of the educational loan include:
- the presence of a grace period during which the borrower can pay only interest. This period can be from 1 to 5 years and, as a rule, coincides with the term of training of the borrower;
- relatively low interest rates (10-20% per annum);
- cash is issued for a period of up to 11 years;
- it is not necessary to be an adult to receive funds for tuition. Persons over 14 years old can apply to the bank by providing a notarized parental consent to the credit institution.
In most cases, using this type of loan you can pay no more than 90% of the amount to which the training is assessed. Often, a prerequisite for issuing a loan is additional registration of life and disability insurance or the availability of guarantors with a confirmed income and a good credit history. If the loan amount is large enough, the bank may require collateral.
An important condition for issuing a loan is the presence of a residence permit or temporary registration of the borrower in the village where the bank is located. A student loan is provided by transferring funds to the account of an educational institution and cannot be spent for other purposes. If a student takes an educational loan, he is obliged to provide the bank with a certificate issued by the university and confirming its good academic performance once every six months or a year.
To become a happy owner of a loan for education, you must submit the following documents to the bank:
- documents confirming the identity of the borrower (passport and a second document to choose from);
- documents confirming the income of the borrower (if he intends to receive a second degree or complete courses) or his guarantors / co-borrowers;
- contract with the university to receive paid services. Before you get a loan for education, you must make sure that the information about the payee and the amount transferred correspond to the conditions of the loan agreement;
- written consent of parents to receive a child’s education loan, notarized by a notary.
Overview of banks offering educational loans
A loan for higher education is issued by the bank provided that it has an agreement with the university in which the borrower plans to study. To find out where it is better to get a loan for education, you only need to contact the educational institution with this question. You can also get a payment document for the bank, where the cost of study and the details of the university for transferring funds will be indicated.
Loan with government subsidies
In 2013, the Russian government approved a special program for subsidizing student loans. ABC banking became one of the first credit organizations to start issuing such loans. It is possible to issue an educational loan with state subsidies in this organization at the rate of 7.06% per annum. ABC banking provides young people the opportunity to receive money without a down payment, insurance, commission and security.
These funds can be spent on full-time, evening, or part-time studies of a university registered in the Russian Federation. The term is calculated individually: 10 years are added to the years of study, during which the borrower must repay the principal debt. The grace period in which only interest is paid is: study time + 3 months. During the first year, the student makes a monthly payment in the amount of 60% of the accrued interest, in the second year – 40%, and starting from the third – 100%.
In case of delay, ABC banking provides for severe fines – the penalty will be 20% per annum in the amount of the debt. Only students with good academic progress can take a loan with state support: if there are triples in the certificate, crediting will be stopped. Upon completion of training, the borrower is obliged to provide the bank with not only a diploma, but also a document confirming official employment in the received specialty.
So far, not all students can get a loan with state subsidies: only a small number of universities have an agreement with ABC banking.
We must not forget that many credit institutions under the guise of an education loan offer an ordinary consumer loan without these benefits. The only thing that distinguishes it from the usual loan is that the money goes directly to the account of the educational institution. It is not profitable to use such a loan product – it is easier and cheaper to get a regular loan for urgent needs or a loan secured by property. This can be done by parents or other close relatives.
In our country, special offers of banks for students are still an innovation. An important difference between this loan product and others is the age of the borrower. Citizens who have reached the age of 14 can receive money for education if there are solvent guarantors or co-borrowers. Another important difference is the repayment scheme. For one year or all the time of study for the borrower, there is a grace period during which he is obliged to pay only interest. Then, when a young specialist gets a job, he begins to pay the principal debt. Such conditions best meet the needs of the borrower and allow you to get the desired diploma without significant overpayments. In the large banks of the Russian Federation today you can get a loan to pay for education in almost all leading universities in the country.