Student loans: Zero rates almost disappeared but conditions are still good

Student loans: Zero rates almost disappeared but conditions are still good

Holders of the baccalaureate 2022 will be able to finance their studies under good conditions. Even if interest rates in the financial markets rise (the rate of bonds issued by the French state over ten years now exceeds 2.3%, (up from 0.10% last year), most banks are already maintaining favorable terms for student loans, and intend to continue that way until the start of the school year in September.

For example, co-operative credit customers can borrow at 0.50% through September 30, while the best offers start at 0.59% for BNP Paribas and 0.60% for La Banque Postale and LCL. However, these last three institutions hold such very good rates for students in higher education with which they have an agreement.

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“We have more than two hundred partnerships with organizations from all walks of life: nursing training institutes, universities, business or engineering colleges, trainee training centers, etc.”Olivier Morin, a board member of La Banque Postale Consumer Finance, a subsidiary of the consumer credit group, explains. But here, even the “normal” rate remains useful: 0.80% versus 0.60% for students benefiting from the partnership.

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Sometimes the lack of agreement is particularly unfavorable: the rate rises to 1.24% in Societe Generale, 1.50% in BNP Paribas and 1.51% in LCL. “You have to check with a bank branch near your school because partnerships take place at the local level,” Solène Le Her, market manager in charge of strategy for children aged 16-24 at Societe Generale, advises, which shows a rate of 0.79% in the case of a partnership.

The game is worth it because the agreements also sometimes include a reduction of the bank card contribution for a year, or until the end of studies.

No bill

“We offer all students, whatever their training, a €5,000 credit at 0% over a maximum of sixty months”, says Chantal Leidme, Head of Customer Marketing at LCL. So young people can get this loan, and then, if necessary, a classic student loan at a rate of 0.60% (major schools), 1.01% (other partner schools) or 1.51% (without partnership). Some other banks offered “free” loans from 3,000 euros to 10,000 euros in 2021 to support students facing difficulties due to the Covid-19 pandemic, but these offers were not renewed.

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