Student loan: it is possible to borrow up to 20,000 euros without a guarantor, thanks to the state

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 a student loan with a state guarantee, which allows you to borrow up to 20,000 euros.

The time to go back to school is approaching, and with it come the various costs for students in higher education: tuition fees, housing, transportation… the bill can rise quickly. If some students are fortunate enough to have parents who fund these studies, others should take out a student loan to fund them.

4,800 loans had already been 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: Often, it requires the student’s parents or a relative to witness. Thus, if the latter defaults, it is the guarantor who has to repay the bank.

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But what or what Students who can not count on family solidarity? Since 2008, the state guarantees, Through BPI France, loans to thousands of students. In 2021, nearly 16,000 loans were guaranteed by the state, twice as much as in 2020. For 2022, the total funding allocated to banks is about 450 million euros. At the end of May, 4,800 loans had already been granted.

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Concretely, how does it work? These are student loans that can be up to a maximum of 20,000 euros, with a partial or total deferment ranging from two to a maximum of 10 years. The student must be under 28 years old And whether he is of French nationality or from a country in the European Economic Area, explains Gladys Prochandi, who is responsible for developing the banking partnership 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 accepted, we authorize the insurance. Thus, the lending bank sets the credit rate and then directs BPI France to guarantee student loans granted by partner banks.

Partner banks:

  • mutual credit
  • The CIC
  • Postal Bank
  • savings bank
  • Societe Generale
  • People’s Bank
  • Credit Agricole
  • BFCPOI (French Commercial Bank, Indian Ocean, offering La Reunion and Mayotte)

These loans, guaranteed by the state, are traditionally available from May to the end of August, and are now facilitated throughout the year. So far, the device has been seasonal due to the relatively low state allocation, Gladys Prouchandy notes. Since the government’s recovery plan, we have stronger allocations. Therefore, the level of envelopes allocated to each banking partner is greater, which allows the student to apply for a loan of this type from January 1 to December 31. Be careful, though: The number of student loans guaranteed by the state granted annually is still limited. It is better to do this as soon as possible.

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