Is it possible to borrow money as a student? – Loans
When you are a student, you really have to learn how to manage your money to afford rent, course literature and food. Not many students have money left for entertainment or extravagant experiences.
The rent is usually the highest expense, especially if you live and plug in a place where there is a housing shortage. Rents are usually highest in the major cities of Stockholm, Gothenburg and Malmö and in the major university cities of Lund and Uppsala.
Student loan / student loan
The Central Student Aid Committee (CSN) is a Swedish authority whose task is to provide student support for persons studying at upper secondary level, Komvux, folk high school, university and university. In Sweden, everyone should be given the opportunity for financial support to study and CSN is the authority that tests, denies or grants people’s right to study support.
The tuition consists of both loans and grants and how much you get depends on whether you study full-time or part-time, and how long you will study. While studying, you are not liable to repay. The repayment of the student loan takes place no earlier than six months after you last had a student loan.
Most students are granted a loan from CSN, but it is still not certain that the loan will always suffice. If you study full-time (2016) you will receive USD 9904 in student support each month, of which USD 7088 is loans and USD 2816 is grants. If you are going to rent an apartment in Stockholm, the rents are about USD 6,000 and up. This means that there is not much money left to live for after you have paid your bills.
Jobs for students
One way to clear out the checkout is to get an extra or part-time job in addition to your studies. Obtaining an extra job in the industry in which you are training is a good way to get a head start in the job market after you graduate. Trade jobs, such as store jobs, provide good OB compensation (compensation for inconvenient working hours) in the evenings and weekends. A bonus of working extra – except that you obviously get paid – is that you do not lose any money when you are at work!
NOTE! There is a limit to how much you can earn when you take out student loans. The limit is called a free amount. It is important that you keep track of how much you earn per calendar year, because if you exceed the free amount you can become liable to repay the tuition. The amount of the allowance varies depending on whether you study full-time or part-time and how many weeks you have study funding during a calendar year. If you study full-time with study support for 20 weeks in a half year, the free amount is USD 85,813 (2016).
Borrowing money as a student
What do you do if you do not have the opportunity to work extra? Maybe your education is too demanding or it’s a job shortage in the market right now.
The next step may be to investigate the possibility of borrowing money from a bank or lender. Unfortunately, student aid is not considered an income and many banks believe that CSN is not enough to grant loans to students.
However, there are exceptions where banks and lenders have the opportunity to offer loans to students. Often these are low loans, because student loans are considered risky due to the low or non-existent income. However, because studies often lead to qualified jobs with higher salaries, some banks are still willing to make an exception and lend money to students.
Before making the decision to borrow money, it is important to be aware of the requirements and rules of different banks. It is important that you choose a loan that is most advantageous to you.
Short-term loans and SMS loans to students
The loan shop lends money to students on condition that they have a different income besides the student support and have the financial conditions to repay the loan. If you are not sure whether you are eligible to borrow money as a student at the Loan Store, you are welcome to contact our customer service.
Remember that not taking loans unnecessarily but a better path may instead be to try to reduce existing expenses. Here you will find good savings tips for students