Almost everyone has a problem with young people: too little money for the necessary things like the disco, cell phone, cigarettes, clothes, and the car. Especially for students who have just moved out of their home and suddenly have to stand on their own two feet, money can get scarce at the end of the month.
If no part-time job can be found and the parents cannot intervene in a supportive way, students have the opportunity to obtain an interest-free loan to finance their education from the father state, the private lender. In order to receive the student loan, however, a certain constant academic performance is required; if this is not achieved, the student allowance can be canceled.
The state loan will only be repaid when the beneficiary enters professional life. The maximum funding period is the respective number of regular studies, which can be extended in exceptional cases.
The maximum funding rate is currently 530 USD per month
There are other government grants from the private development bank, but these are not interest-free but are independent of the parents’ income. Otherwise, loans to students are rarely given, for example when the student’s parents vouch for the borrower. Some banks also grant loans to particularly outstanding students at low and affordable interest rates, and this loan is only repaid after completing their studies.
While the student loan from a private lender mentioned above is certainly the cheapest form of financing for most students, the student loans offered by some banks have disadvantages compared to the student loan from Private Bank. These disadvantages not only consist in the fact that the bank’s loans are usually more expensive in terms of interest than the student loan from a private lender but also in terms of loan amount and term, private student loans can have clear advantages. The bank’s “normal” student loan is hardly given above USD 3,000, and the term is usually not more than three or four years.
The loan is paid out in monthly installments, which is also advantageous
The loan must, therefore, be repaid immediately in the form of monthly installments, which would simply be too much of a burden for many students. The structure of the private student loan, on the other hand, is different and also significantly more advantageous for the student. With the Private Student Loan, the student as a borrower only has to start repaying the loan after completing his studies. This completely eliminates the burden of a loan installment during your studies. In addition, the loan is paid out in monthly installments, which is also advantageous.