More than 2,000 euros can cost the enrollment of the university, according to the University System Observatory. And we refer to public, not private. These are figures that are not available to all pockets. Scholarships help, but often they are insufficient , because they do not reach all the families that need them; In the 2014-2015 academic year, only 57,650 undergraduate students benefited from a state tuition scholarship, according to the Ministry of Education, and the number of university students was almost 1.4 million. To deal with tuition, some families are forced to resort to student loans , but how are they?
Loans to pay for college
The student loans are known worldwide for the effect, ruinous in many cases, that they have on the American youth, forced to get into debt because of the high costs of higher education in their country. During the first quarter of this year, the US student debt UU it was more than 1.5 trillion dollars , according to the data of the Federal Reserve. To get an idea of the magnitude of this phenomenon, the figure exceeds the GDP of some of the most developed economies:
Fortunately, in Spain university prices are not as high , but some families are forced to resort to student loans to send their children to college, especially if they are going to change their residence. Those who resort to the bank in search of financing, will have to face an APR of 5.65% . That’s the average annual rate that loans have to study in Spain, according to a study conducted by HelpMyCash.com. The price is much lower than the total of consumer loans , which in May had an average APR of 8.85%, according to the Bank of Spain.
The cheapest credits to finance studies
Earlier this month, Deutsche Bank was opening a loan to study at a very attractive interest rate of 4.50% and an APR of only 4.59% (there is no opening fee). The offer of the bank with a German name is one of the most attractive in the market, along with the loans for master’s degrees and Abanca’s degrees at 4.20 and 4.50% APR respectively. It also highlights the Credistudio de Caja de Ingenieros , which has no interest and only charges a commission of 50 euros, although it is necessary to be a member of the entity to request it (1.85% APR).
Below, a summary with the cheapest:
|Bank||Loan||TIN||TAE||Max Imp.||Max Term||C. opening|
|Engineers box||Crediestudio||0%||1.85%||€ 6,000||10 months||€ 50|
|Abanca||Master Loan||E + 3.95%||4.20%||€ 44,000||8 years||1 %|
|Abanca||Grade Loan||4.15%||4.50%||€ 30,000||8 years||1 %|
|Deutsche Bank||Loan Studies||4.50%||4.59%||€ 60,000||8 years||0%|
|Engineers box||Loan Studies||4.25%||4.84%||€ 50,000||7 years||1 %|
|Ibercaja||Master Loan||4.75%||5.02%||€ 60,000||10 years||1 %|
|Cofidis||Project Credit||4.95%||5.07%||€ 15,000||5 years||0%|
Advances of scholarship
Case apart are the scholarship advances, which allow us to advance the amount of state aid and then reimburse it when the Administration pays us. At the moment, the most attractive option is the Unicaja advance, exempt from interest and commissions (0% APR). It is followed by Abanca which despite having an interest of 0%, has an opening commission of 3% (3.72% APR). Ibercaja offers a loan to anticipate the Erasmus scholarship, but it has an interest of 5% plus a commission of 1% (7.10% APR).
Loans for students … and for their parents
When a bank approves a financing request it is or should be because the borrower is solvent. Now, let’s ask ourselves how many 18-year-olds at the gates of the university have a good economic profile. Indeed, very few, hence many times these loans are signed by parents.
Many of these credits also incorporate grace periods, so if the student is the one who hires them, there may be a time without paying while he studies and until he finds a job . But, be careful, because the shortages make the cost of the loans more expensive, since during the time that is not paid, interest continues to be generated and in the end the loan is more expensive.