Student loan at 0 rate: what are the possibilities?
When you are a student, it can sometimes be difficult to meet the various expenses required to complete your education. A student loan can then be a good solution to finance the various costs related to studies.
What is the student loan?
Student loan is a type of consumer credit intended for people enrolled in a higher education institution. It aims to finance the expenses related to their studies, these including the registration fees at the university, the purchase of equipment (the books of the study program 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 after graduation. It often takes the same form, that is to say, divided into two periods: the first, lasting 2 to 5 years during which the student does not have to repay his loan (or so only partially) is followed by a second period, ranging from 2 to 4 years, which constitutes the bulk of the repayment.
The amount may vary from organization to organization but generally it cannot exceed a maximum of US $ 50,000.
The conditions of acceptance may differ depending on the establishment. However, there are often certain essential criteria. To be able to benefit from such a credit, the student must be enrolled in a higher education institution, be under 28 years old when taking out the loan and have either French nationality or that of one of the Member States of the EU or the European Economic Area with proof of uninterrupted residence in United States for at least 5 years.
Most of the time, it is necessary for the student to have a surety, a person who can stand surety in the event that he is unable to repay his loan.
Being a consumer credit, the student loan is subject to the regulations in force for this type of loan. Thus, information such as the annual percentage rate of charge (APR), the repayment schedule or the prepayment terms must be communicated to the borrower before the subscription. As with most credits, the withdrawal period is 14 days after signing the contract.
What are the solutions for a 0 rate loan when you are a student?
A zero rate loan is credit that does not involve interest. Thus, the reimbursement includes only the amount borrowed, without additional costs (except in the case where the borrower decides to take out optional insurance). Zero interest student loans are hard to find. You can find it from some financial institutions but it is an offer that is not very widespread and most of the time, the sums that can be borrowed are not very high.
- Banking establishments
BNP Paribas offers a loan called “Prélib'Campus”, reserved for students and without interest. It allows students to borrow amounts of up to US $ 1,000, repayable over 12 months, with maturities of US $ 83.33. It is a credit that can be useful if the student needs a boost in his education or then, to cover a one-off expense related to his studies (a trip abroad for an internship for example). However, the maximum amount is not very high, if the student needs more to meet his expenses, he will have to find another solution.
The Caisse d'Epargne offers a similar student loan, still at zero rate but up to US $ 2,000. Here the repayment is made in 36 monthly installments (3 years).
There are also banks that offer zero interest student loans in partnership with their region. For example, Crédit Agricole allows you to borrow up to 5,000 US dollars for students in the Champagne-Ardenne region. Interest is covered by the region as well as by Crédit Agricole du Nord Est.
- The CROUS zero-rate student loan
Formerly called the student loan of honor, today it is the zero rate loan. It is a credit that can be requested by students without resources and having financial difficulties.
The conditions imply to be registered in a higher education establishment, not to be a grant holder on social criteria and not to be a grant holder on university criteria. It is a loan granted on local, educational and social criteria. It is repayable without interest and the repayment period can be up to 10 years after the end of studies. The maximum amount is 3000 US dollars and the average amount borrowed is 1500 US dollars. If the student abandons the studies for which he obtained the loan, the repayment must be made 10 years after the payment. To benefit from it, the student must contact the CROUS in his region directly.
- The loan of honor of the General Council of the North
It is a 0-rate loan reserved for students under 28 on December 31 of the start of the academic year, domiciled in the Nord department and enrolled in a French higher education establishment, authorized to receive scholarship holders. He must be able to present a deposit that can justify his income. It is a loan of up to 1500 US dollars, repayable over 5 years. A student can benefit from a maximum of three honorary loans during their entire education.
- The permit at 1 US dollar per day
The permit at 1 US dollar per day is a form of 0-rate loan given the absence of interest, which is borne by the State. It is a loan that allows young people aged between 15 and 25 years to benefit from a payment facility in the financing of their driving license. The total cost of the training remains the same but this allows the borrower to spread his payments over a certain period while the chosen financial institution advances the necessary funds to the training center.
It is a device that facilitates access to a driving license, its cost can be a real obstacle for some people. It takes into account training in driving category B (light vehicles) or category A (motorcycles) vehicles.
To benefit from it, you must first contact a driving school and request a quote which will then have to be sent to the financial institution to apply for the credit. The candidate will have to prove sufficient income in order to be able to pay monthly payments of 30 US dollars per month or else, call on a guarantor who will have to repay the loan in his place in case of problem. If the person is a minor, their parents will have to apply for the loan on their behalf.
- The zero rate student loan in Guadeloupe
Since 1996, the region of Guadeloupe has been offering a system allowing young students to access loans at 0 interest. Among the banks involved, we find Crédit Agricole, the Savings Bank, BNP Paribas, Société Générale and Bank of the French Antilles. Depending on the student's file, the amount of principal borrowed can be up to US $ 15,000 and the interest on the loan is fully covered by the regional council. The repayment period can reach 8 years, including a maximum of 5 years of partial deferred capital amortization.
To be able to benefit from this loan, the student must be between 18 and 25 years old. However, if he is older, he can benefit from an exemption up to the age of 29, provided that his studies have not been interrupted.
Thus, there are certain solutions to be able to benefit from a zero rate loan when you are a student. However, if these are not suitable, you can always go through the classic student loan, financial institutions often offer very advantageous rates for this category of loans.
What are the necessary supporting documents for a student loan?
The documents requested will often depend on the bank or institution specializing in consumer credit. Whatever organization you choose, you may be asked for the following documents:
-A valid proof of identity (national identity card, passport, residence or resident card, etc.)
-A proof of address of less than 3 months (electricity bill, gas bill, lease contract, rent receipt ...) OR an accommodation certificate if the student is accommodated, accompanied by proof of address of the person hosting them as well as their identity document
-A proof of student status (student card, school certificate, admission letter, etc.)
-The last three bank account statements or savings account statements
Supporting documents will also be requested from the person acting as guarantor. We find among them:
-A proof of identity
-Proof of address
- Proof of income (last tax notice, last pay slips, certificate of family benefits ...)
-The last three account statements
-A bank or postal identity statement (RIB or RIP)
Depending on the establishment chosen, the student may also be asked to provide proof of future expenses (invoices from the school, invoices or quotes for school materials, rental contract, invoices or estimate to justify installation costs…).
However, this list is not exhaustive and the organization may request additional documents, especially if the borrower's situation presents certain particularities.