If we wrote to you that at the beginning of your studies you can take out a loan, the repayment of which will be necessary only after 2 years from graduation, would you take it? What if we added that it has a very low interest rate and the repayment period is twice as long as its collection period?
Certainly these conditions would force you to wonder if it is really true. However, student loan exists and its popularity is growing from year to year, although it is still small. In this article, we’ll show you what a student loan is, what its exact terms are, and how to get it.
What is a student loan?
Student loan is a preferential loan to which the state pays. It can be taken at banks that have signed an agreement with Bank Gospodarstwa Krajowego regarding the use of the Student Loans and Credit Fund (e.g. SGB + Bank). It is important that the banks themselves do not have much scope to change the terms of this loan, because they are determined in advance by a regulation of the Minister of Science and Higher Education.
It is granted to those students who study both full-time and part-time. You can get it both in the first and last year, and even in doctoral studies – but it is important that the monthly income per person in the family does not exceed the limit of PLN 2,500. Another limitation is the necessity of starting education before the age of 25.
The loan is repaid 2 years after graduation. The repayment period is twice as long as it was withdrawn, which means that if you have been charged for 50 months, the repayment will be divided into 100 reduced installments.
Student loan procedures
An applicant for a student loan must have a bank account . Of course, it’s best if it’s from the same bank . This will not only reduce formalities in contact with banking institutions, but will also reduce fees for monthly tranches.
The first step is to submit an application at a bank branch. It is necessary to attach to it a certificate from the university or scientific unit conducting doctoral studies on the subject of studies. There will also be no confirmation of the loan surety, a statement about the current number of family members and a statement of income that was obtained in the previous year. When submitting the application, you have to decide whether it will be for 600 (basic installment) or 800 PLN (increased installment).
The application should include:
- Personal data (name, surname, PESEL, series and ID number, place and date of birth, address)
- Data on studies (institution, level, mode, field of study)
- Data required by the bank for the purposes of assessing creditworthiness
Loan repayment guarantee
The bank must assess the loan repayment security – in the event of a negative opinion preventing a loan from being taken from one bank, the student may submit such an application to another student loan facility.
The terms of the guarantee change over the years, but currently they look as follows:
- Total surety regardless of income for students who have been deprived of parental care completely or partially.
- Total surety regardless of income for students who have been placed in a care and educational institution (family, socialization, resocialization)
- Total guarantee for students whose income per person in the family does not exceed PLN 600
- 70% guarantee for students whose income per person does not exceed PLN 1,000
Reduction, suspension and cancellation of loan repayment
Different life situations force the use of different methods in the case of student loans. If, for temporary or periodic reasons, you have problems repaying your loan – you can contact the bank to reduce your loan installment to 20% of the average monthly income over the last three months.
If you have a difficult financial situation due to losing your job or, for example, you have an accident preventing you from employment and a steady flow of cash – you can apply to the bank for suspension of loan repayment with interest for a period of 12 months.
Total or partial cancellation of loan repayment can occur in three cases. If you managed to complete your studies in a group of 5% of the best university graduates (or doctoral studies) – you have the right to cancel the loan by 20%. The application should include confirmation of a competent university representative about your achievements – it can be e.g. the director of a research unit. It should be submitted to the bank within 30 days of obtaining confirmation.