Student - No Job - Need a loan

Strange_Fruit

What are my chances if any at all?
Im looking to get a loan to put me through college for the next 3 years, im not working,and im not expecting that to change any time soon.
Does a graduate loan mean you can pay it back when you graduate?

dotsman

A Graduate loan is just a marketing term, and to the best of my knowledge (it certainly is the case for most banks), is aimed at those who have graduated and starting out in life.

You need a "Student Loan". Without a job, it will come down to things such as you standing with the bank (if you are not well known to them, are your parents?), what course you are doing, and the current credit risk climate (not good!). Without a job, you will definitely need your parents to go guarantor.

Your best bet is to approach your bank. They should have a student officer (if they don't, then certainly their branch by your college will). It doesn't cost you anything to apply!

If all else fails, can your parents take out a loan in their name? That is to say, they borrow the money, give it to you and you repay the loan via them.

10000maniacs

Theres a guy in Finglas giving out loans to people with no income. Bone-crackingly competitive interest rates.
But seriously I think you will be lucky to persuade any bank to give you a loan as you are a credit risk. A credit union might be a very good option for you. Give it a try.

IsThatSo?

Lots of students get student loans and the arrangements are made to pay back beginning at some date in the future rather than repayments starting straight away. Often the bank will require a guarantor but that should be a given if you will not be paying back for a set period of time.

Don't get a student overdraft, it will haunt you.

samhail

yeah, be positive when you apply for it, but dont get your hopes up m8.
took me a few months for them to approve me though i had a few payments bounced on another loan

Newport81

am in the same situation and i went to ulster bank - they sorted me out straight away - just opened an account with them, they give u an overdraft of over a grand and more ie a credit card etc... just go into any branch... hope this helps

dotsman

smyths wrote: »

am in the same situation and i went to ulster bank - they sorted me out straight away - just opened an account with them, they give u an overdraft of over a grand and more ie a credit card etc... just go into any branch... hope this helps

Avoid like the plague !!!

Never go near an overdraft or credit card without regular income. Ideally an overdraft/credit card should be paid back within a month - max 3 months. They are intended for short term borrowing due to cash flow issues - not for hard core debt.

TestTransmission

Strange_Fruit wrote: »

What are my chances if any at all?
Im looking to get a loan to put me through college for the next 3 years, im not working,and im not expecting that to change any time soon.
Does a graduate loan mean you can pay it back when you graduate?

Try this first

Kila

I had a small loan from Bank of Ireland while I was a final year student, to help towards car insurance and some other related expenses, and also to compensate for the fact that I wouldn't have as much free time to work and earn a little, as I'd be working on my theses (yes, plural) and exams.

When I got the loan, I just went in and explained my situation, and said that what I'd like was to take the loan (in September) and start paying back in around July (after my graduation, when I'd be working). The girl there worked out payment terms with me, made sure the monthly repayment wasn't too high, and set up the payments to be deferred until July. Obviously, the loan was accruing interest during the time that I wasn't repaying too, but it meant that I didn't have to worry about payments during the year. My parents were guarantors on the loan, and as long as your parents don't mind doing the same for you, you may be able to get sorted.

I also had a friend who took a similar type of loan with AIB, with deferred payments for a while. His was for a much larger amount, and it all seemed to work out ok.

Your best bet is to go to one of the banks and ask about a student loan. A loan officer will talk to you, and you can outline your request, your reasonable repayment goals, etc.

I can't, in good conscience, recommend BOI (after a previous bad experience) but my loan with them was reasonably smooth, aside from some delays at the start. I believe my friend's loan with AIB was also reasonably hassle free.

sitstill

Kila wrote: »

I had a small loan from Bank of Ireland while I was a final year student, to help towards car insurance and some other related expenses, and also to compensate for the fact that I wouldn't have as much free time to work and earn a little, as I'd be working on my theses (yes, plural) and exams.

When I got the loan, I just went in and explained my situation, and said that what I'd like was to take the loan (in September) and start paying back in around July (after my graduation, when I'd be working). The girl there worked out payment terms with me, made sure the monthly repayment wasn't too high, and set up the payments to be deferred until July. Obviously, the loan was accruing interest during the time that I wasn't repaying too, but it meant that I didn't have to worry about payments during the year. My parents were guarantors on the loan, and as long as your parents don't mind doing the same for you, you may be able to get sorted. .

I did the same as this, organised through the Bank of Ireland at UCD, and I didn't even have to get my parents to guarantee it.

Newport81

dotsman wrote: »

Avoid like the plague !!!

Never go near an overdraft or credit card without regular income. Ideally an overdraft/credit card should be paid back within a month - max 3 months. They are intended for short term borrowing due to cash flow issues - not for hard core debt.

The overdraft is interest free up to 3grand - you dont pay a penny back until you graduate - i dont graduate until 2011 - fair enough the credit card does have to be paid back - but the overdraft facility is great esp for students who arent working, there isnt the immediate pressure of having to pay it back straight away!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:mad:

dotsman

smyths wrote: »

The overdraft is interest free up to 3grand - you dont pay a penny back until you graduate - i dont graduate until 2011 - fair enough the credit card does have to be paid back - but the overdraft facility is great esp for students who arent working, there isnt the immediate pressure of having to pay it back straight away!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:mad:

Are you sure the entire €3,000 is interest free? According to their website, the amount Ulster Bank offers is much less.

Even if it's interest free for the moment, what happens when you graduate? You'll suddenly be left with a €3,000 overdraft at high interest rates. Although you can get a graduate overdraft (€1,500 with Ulster), you might not necessarily go straight into a job (could take several months), and when you do get a job, it takes a while before you are actually have money to repay your loans - starting on a low salary, possibly needing deposit plus rent for a nice place (as you'll be sick of living at home/in a run-down student flat;)), perhaps needing a car to travel to work etc.

Not saying it won't work out for you, just from the experience of my friends (I was fortunately debt-free as I had a part time job through college), they had a tough first year or 2 upon graduating trying to repay everything. By having a structured student loan on low interest rates, with, perhaps, a small interest-free overdraft, you should do fine. But I wouldn't like to be graduating with a €3,000 overdraft!

Newport81

dotsman wrote: »

Are you sure the entire €3,000 is interest free? According to their website, the amount Ulster Bank offers is much less.

Even if it's interest free for the moment, what happens when you graduate? You'll suddenly be left with a €3,000 overdraft at high interest rates. Although you can get a graduate overdraft (€1,500 with Ulster), you might not necessarily go straight into a job (could take several months), and when you do get a job, it takes a while before you are actually have money to repay your loans - starting on a low salary, possibly needing deposit plus rent for a nice place (as you'll be sick of living at home/in a run-down student flat;)), perhaps needing a car to travel to work etc.

Not saying it won't work out for you, just from the experience of my friends (I was fortunately debt-free as I had a part time job through college), they had a tough first year or 2 upon graduating trying to repay everything. By having a structured student loan on low interest rates, with, perhaps, a small interest-free overdraft, you should do fine. But I wouldn't like to be graduating with a €3,000 overdraft!

It was explained to me in my branch that i wouldnt be charged any interest until i graduate - im happy with that, i knew what i was getting into, and in all fairness 3 grand debt is not much debt to be leaving college with! I have friends who have had to go to uni in england and their debt is huge, the op needed money and wasnt working, i just offered my thoughts on what i had done... end of.

Strange_Fruit

Thanks for the replies.I went to N.I.B but they wont give you a student loan unless you are already a member,that came into effact just last week.:(
What Im looking for is not to pay back until i graduate,or at most 40 quid a month....

dotsman

Are you a customer with any bank? If so, then you should try them. If not, then I would recommend joining a bank that fits as many of the following criteria:

1. There is a branch on or near your campus
2. There is a branch near your home
3. One of or both your parents is a customer
4. Has great online banking (as once you join, 99% of your interaction would, ideally, be via ATM, Debit/Credit Card or Online Banking)
5. The bank, obviously, offers you a student loan:)

Some people think a person should just join whichever bank happens to be the cheapest at the moment, or has the best student offer (many banks offer special student incentives like free phone credit, student discount cards etc). However, I would also bear in mind that, ideally you would like to be able to deal with the same bank long after you graduate. Given that the days of banks throwing money at anybody who came through their doors is now over, you will see a return to banks looking more favourably on someone who has been with them for years, and thus they can see exactly their financial history (both the good and the bad!).

Kila

I wouldn't worry about not being a member. There doesn't seem to be any minimum time limit between joining and them giving you a loan (although I'm open to being corrected on that). I only joined BOI to get the student loan initially, after examining all the banks open to me at the time. And I had only joined the bank pretty recently when they gave me the loan.

beckett24

i also need a loan of between 400 and 800 euro. i live in the republic of ireland. so how do i go about dis