If some students need a loan to finance their studies, they do not always have a guarantor to reassure the banks. Do not panic: many banks offer the student loan guaranteed by the state, which allows you to borrow up to 20,000 euros.
Back-to-school time is approaching, and with it come the various costs for students in higher education: tuition fees, housing, transport… the bill can quickly climb. If some students are lucky enough to have parents who even finance these studies, others must take out a student loan to finance them.
Already 4800 loans granted at the end of May
But in the context of a student loan, as in any traditional credit, the lending bank asks for reassurance: very often, it requires the student’s parents or one of their relatives to vouch. Thus, if the latter is in default of payment, it is the guarantor who will have to reimburse the bank.
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But what students who cannot rely on family solidarity? Since 2008, the state guarantees, through BPI France, the loans of thousands of students. In 2021, approximately 16,000 loans were guaranteed by the State, i.e. twice as many as in 2020. For 2022, the overall financing envelope allocated to banks is approximately 450 million euros. At the end of May, 4,800 loans had already been granted.
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Concretely, how did it work? These are student loans that can go up to 20,000 euros maximum, with a partial or total deferment that ranges from 2 years to 10 years maximum. The student must be under the age of 28 and whether he is of French nationality or from a state in the European economic area, explains Gladys Prouchandy, in charge of Banking Partnership Development and Network Support at BPI France. From there, all he has to do is go to one of our banking partners to apply for a state-guaranteed student loan. Then the bank decides based on its criteria. If she accepts, we then make a delegation of insurance. The lending bank thus sets the credit rate, then instructs BPI France to guarantee the student loans granted by the partner banks.
Partner banks:
- Credit Mutuel
- The CIC
- The postal bank
- The Savings Bank
- Societe Generale
- People’s Bank
- Credit Agricole
- BFCPOI (French Commercial Bank Indian Ocean, presents La Runion and Mayotte)
Traditionally available from May to the end of August, these state-guaranteed loans are now smoothed over the year. Until now, the device was seasonal in view of the state allocation which was relatively low, notes Gladys Prouchandy. Since the government’s recovery plan, we have had stronger allocations. The level of envelopes allocated to each banking partner is therefore greater, which allows a student to request a loan of this type from January 1 to December 31. Be careful, however: the number of student loans guaranteed by the state granted per year remains limited. Better to do it as soon as possible.
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