Are you a student and wondering if you can get a loan !? As a student you would think getting a loan is a difficult task. Nothing could be further from the truth because as a student you can get a loan in different ways where the provider is aimed at students. You must, however, be older than 18 and in most cases follow a full-time study.
Student loans with a revolving credit.
Most Dutch banks offer student loans with a revolving credit of up to 5,000 euros. These student loans can often be paid off in the first few years without interest, but this interest is charged to the final balance. This means that you only pay the interest when you are no longer entitled to student finance. In most cases you even have the option of paying off your withdrawn credit one year after the student loan has ended. Interest is charged on this extra waiting year.
A short advance
In addition to the maximum ‘red’ standing at your bank or the maximum additional loan to DUO (Education Implementation Service: former IB-Groep), you can also receive a temporary ‘advance’ which in most cases applies up to a 500 euro limit. You can get the desired amount in your account within ten minutes. Please note that you must pay it back in time because the interest rates on such loans are quite high. With this form of borrowing you do not have to take a full-time study.
If you are following a full-time course and you are probably borrowing more than a student loan with a parental contribution, you will not receive a tax benefit. This is because they are untaxed. When you borrow from a commercial company such as a bank, you are in most cases entitled to a refund of your tax. This is in fact added to your debts.
Are loans by definition expensive?
No, as a student you have to deal with an enormous amount of expenses such as rent, school fees, book fees, clothing, telephone and internet bills, etc. If you always receive extra administration costs on top of your reminders or even have to pay bailiff costs, in this case the interest on student loans is many times cheaper.
What should you pay attention to when taking out student loans?
Take a good look at the duration of a loan in advance. With every loan you get a time frame in which you must have repaid this loan at the fixed interest rate. If you take longer to repay, higher interest rates will be added to your final balance.
Compare the interest rates with multiple providers. Every financial organization uses different rates. The interest rates can vary considerably and your task is to find the lowest interest rate. See if you have the luxury to take out a loan. You must of course be able to pay it back at a later date.