What is a student loan and how does it work? In this article, we take a look at Student loans and give you an insight into why it might be a good idea to apply for a student loan during your education.
In Denmark we have a really good system in relation to getting an education. As one of the few countries in the world, education is free. At the same time, as a student, you have the opportunity to receive the state’s educational support – or Student loan as it is popularly called. However, few young people have the opportunity to live solely by the Student loan. It is therefore often necessary to take a job next to the studies or take out a loan with the family.
However, an alternative to this is to take out a student loan. With a student loan you can get financial peace of mind about your situation so you don’t always have to stress over your personal finances while concentrating on your studies.
The benefits of taking out a Student loan
There are many good reasons to take out an Student loan, if you need a little extra money during your studies, to pay the fixed expenses and the books for the study. Or just sweeten everyday life, like poor students.
However, the overarching advantage of the Student loan is that it is a very cheap loan. An Student loan is much cheaper than a quick loan, for example. On an Student loan, you only pay 4% in interest and it is much cheaper than the vast majority of other loan offers available on the market.
On the state side for Student loan – it appears that in general there are 3 types of Student loans
- The regular Student loan where an amount is paid on top of your Student loan. In 2018, the loan rate is USD 3116.
- A supplementary loan for dependents. If you are a parent, you have the opportunity here to borrow USD 1559 on top of your Student loan
- Final loan, which targets the students who have run out of Student loan clips. Here you have the opportunity to borrow USD 8039 for the last 12 months of your education.
You can find more in-depth information about the different loan types at Student loan.dk
How is the Student loan repaid?
When you have completed your education, you must of course repay your loan. It is Payout Denmark that manages this part of the process. You will be automatically notified when it is time to pay off the loan.
If you have to point to a disadvantage of the student loan, it is obvious that you will pay back the loan during a period when you are establishing yourself with a house and family. What is inflation and what does it mean for your private economy Get what you need with a cheap loan