Research by Statistics shows that almost 4 billion euros have been contracted out to student loans.
Half of this went to student loans, which are available from the loan company in either an additional form or if students do not meet the conditions of the performance-related grant.
The performance-related grant must motivate students to “study” quickly. However, students often have a busy student life with additional activities such as a student association or an additional internship. These activities are good for the development of students, but at the same time these activities also ensure that students borrow more money.
If we look at ten years ago, we can see that at the time, students borrowed no or hardly any money. In recent years we see an increase in the number of students who borrow money. Likewise, the amounts for money borrowing are also getting higher.
The government wants to warn students about the consequences of borrowing money. Nevertheless, it is of course understandable that students simply want to borrow money, but sometimes they can not do otherwise. Borrowing money for a room or for study books is sometimes a necessity. Students sometimes also want to enjoy life a little and therefore also borrow money for holidays or for clothing.
Currently there is an economic crisis and the question is whether the government will tighten its rules on borrowing. This makes it harder for students to borrow money. But the problem really lies with the students or the economy just got worse. Has not everything become more expensive and do we solve the core of the problems through stricter rules for student loan? This remains the key question. Cutbacks are coming, but what the cutbacks will focus on is still the question.
Students have a lot of costs. For example, students not only have costs for college money, but also costs for study books, room, food, drinks and other activities. Many students have a part-time job, but because of the study they can not make many hours with a part-time job.
Students only get it harder. For example, the government wants to cut costs and we have already seen that college funds have gone up and a second study is more difficult to make.
Students borrow more and more money . Students often do this in the form of student loan . A student’s loan has the advantage that it is flexible. For example, it is possible to borrow money from the company for only a few months. Then the loan can be converted back to a 0-euro loan.
Here we have listed the possibilities for a moment.
Borrow from your parents
Borrowing money from parents or from other family members is often the cheapest. Family members often do not charge interest and borrowing money without interest remains the cheapest.
Or with your employer
As mentioned, many students have a part-time job. Many students therefore have an employer. An employer may agree to grant a loan .
Borrowing money from the loan companies is also attractive for the students. The company does not use high interest rates so borrowing from the loan companies is cheap money. Borrowing money for and by students is usually done via the loan companies , but students can also take out a student loan from the banks. Borrowing money is often necessary for many students. Everything has become more expensive and students often have a low income. A low income due to too few hours worked in a month. That is not surprising, because many students can only work a few hours a week. A study also takes time, but let’s not forget that a study also costs money. Not only the tuition fee, but also costs the money because of the books and any tutoring for exams. In short, borrowing money is often necessary.
Many students borrow money from the loan companies. Borrowing money from the company is often the cheapest for students. Interest rates are low, but the company is also flexible with the repayment agreements. The company is the ideal lender for students. Nevertheless, students also borrow money from the banks. Perhaps because the maximum loan amount at the loan companies has already been reached, or the students simply do not know that they can also borrow money from the loan companies. Anyway: Students borrow money from the banks. Of course, that does not have to be a bad thing, since most of the Netherlands borrow money. However ill-considered money borrowing is a bad thing!
When we compare a loan through the loan companies with a student loan at the banks, there can be no doubt that borrowing money through the loan companies is much cheaper. When we compare the student loan with other forms of lending, except for the company, we can conclude that this is also an advantageous way of borrowing money. Preferably, saving is of course better. Saving is always the most advantageous!
Insurance with a student loan?
Banks can also offer students additional insurance policies. For example, insurance can be taken out when there is a risk that the applicant (the student) does not graduate. Different insurance policies with different insurers are on offer. Students can request quotes for insurance and compare them.
Is it necessary?
The answer is: Sometimes unfortunately. Sometimes students see no choice but to borrow money. Life is expensive. And sometimes having extra money is also just fine. Lend responsibly is the message and do not borrow what you can not redeem. Saving is always better!
Borrow money for underage students.
When a student is a minor, he / she may still need to borrow money. There is, however, a problem with underage students: it is often not possible. Loans are agreements. Agreements are explained by law. It is also stated in our legislation that legal action, such as entering into a transfer, is only possible for adult individuals. In short, a problem for the lesser-old students.
Underage students can borrow money more easily, in whatever form of loan. Sometimes there are possibilities to borrow money from the loan companies. If underage students want to borrow money from our banks in the Netherlands, they must have the support of a parent or guardian. With the permission of a parent or guardian, borrowing money for underage students is possible! Somehow the legislation protects underage students for reckless lending. After all, when you can not borrow money, you can not borrow irresponsible money either. When the underage student passes the age of 18, suddenly there are many opportunities for borrowing money. This creates the possibility of a revolving loan or a personal loan. Just a momentary note. Parents often open a payment account for their underage children. Sometimes these accounts contain the possibility of standing red. If a minor student has such an account, he / she can also borrow money with red.