A student loan is one of the good solutions to cover the costs associated with upkeep during the studies. Obtaining, paying back and paying out student loans is currently regulated by Act 2.0.
What is student loan about? It can be used by young people who study at universities. Student loans have much more favorable conditions than consumer loans because interest is dated by the state, which makes the cost of student loans low.
From 2019, there were changes in student loans. The change was introduced and regulated by the Constitution for Science, also called Act 2.0, reforming national higher education. The act replaced four currently existing: the law on higher education, the act on the principles of financing science, the act on academic degrees and titles, as well as the act on student loans.
What are the conditions for obtaining a student loan?
Student loan conditions for obtaining:
- Students and doctoral students can apply for a student loan – however, all these people must start their studies before the age of 25
- The main condition for obtaining a loan for students is the income criterion – it is announced by the Minister of Social Security (currently the maximum income per family member cannot exceed USD 2500 net)
- you must have a student loan guarantor who, if necessary, will repay the obligation, e.g. parents, siblings
- in the case when family members are dead and you don’t have a guarantor, you can apply for a guarantee from Bank Good Finance or a surety from the Agency for Restructuring and Modernization of Agriculture.
How does a student loan work?
A maximum student loan can be obtained for a period of 7 years as a result of changes in Act 2.0. The cash will go to students for 10 months in the academic year (excluding holidays). In the application, you must indicate the amount of monthly loan you want to get.
Only after 2 years from graduation do you have to start paying off the debt, including interest. When it comes to student loan repayment, the number of installments is twice the number of student loan tranches paid out.
What is the student loan interest rate?
An important issue that needs to be addressed in the context of student loans is the fact that we are dealing with a variable interest rate. The loan interest rate for students for the period of study and 2 years after their completion is 0 percent.
After this period, the student loan interest rate is 0.875% (half of the rediscount rate for bills of exchange of the National Bank of Poland, which is 1.75%).
What is the student loan amount?
The amount of student loans depends on the period for which we want to get a loan for the student and what monthly installments will be paid. The maximum loan amount is 1000 USD and the minimum is 400 USD.
In the 2018/2019 academic year, the monthly amount of student loans paid is:
- 400 USD – reduced installment,
- 600 USD – basic installment,
- 800 USD – increased installment,
- 1000 USD – increased installment.
What are the student loan repayment rules?
Student loan repayment begins only 2 years after graduation. The number of repayment installments is twice the number of student loan tranches paid. In practice, if we received USD 1,000 for 50 months, we will pay USD 500 (plus 0.87% interest per annum) for 100 months.
Earlier repayment of student loans is possible – however, hardly anyone makes that decision. In the event of repayment problems, our commitment is taken over by the guarantor indicated in the application. It can be our parents, siblings, relatives, friends.
We can obtain a surety from Bank Good Finance or surety from the Agency for Restructuring and Modernization of Agriculture if we have no other option.
Is it worth taking a student loan?
In our opinion, it is worth taking a student loan. The conditions under which we will get credit for students are much more favorable than those for obtaining a consumer loan on normal terms.
The interest rate is subsidized by the state, thanks to which we repay only as much as we borrowed plus 0.87% interest calculated from the passing of the period of 2 years from graduation.
Only a student loan allows you to repay obligations only 2 years after graduation, which will give us the opportunity to get a job and increase our creditworthiness. A student loan is a good solution for getting cash to support yourself during your studies.