Student Loan Situation Advice?

RJM22

Hi,

Please could you help me to work this one out?

I took out a 6000e loan with BOI for college last year (year4) and its all gone. I need a slightly smaller but similar ammount for this year (year5) too, mostly for accomodation expenses. What do you think my best approach is here?


Go back to my bank (BOI) and ask them for a second loan or loan top-up, guaranteed by my parents?
Go to a different bank, set up a new account and ask them for a student loan?if so which bank?
Go to my local Credit Union, set up an account and ask them for a loan?

I'm still repaying my first loan. I'm worried about:
1. actually securing another loan.
2. The effect that paying off 2 loans will have once I graduate.

I'd like to stay clear of credit cards, and I won't be able to work during the college year.

What do you think?
thanks!

Toots

Well first of all, I'd say don't go near a credit card if you're looking for 6 grand. The limit on student credit cards is only around €800 anyway so it wouldn't be suitable.

I'd say your best bet is to approach BOI. Your parents/someone else will have to act as guarantor,however that's no guarantee it'll be approved. If you top up the current loan, there'll only be one repayment coming out of your account, but it will be higher than your current one.

I'd say if you go to another institution and set up an account there, they'll want to see how the account operates before lending to you. They'll also know that you've got debts with another institution so it won't really make much difference where you apply, the current loan will still be taken into account.

The credit union, AFAIK, will only lend a certain multiple of your savings to you for your first loan, then when you've paid that back, you can get more the next time etc. They may also look to freeze a portion of your savings to act as security.

If you're not working during the year, how are you going to make repayments on the loan? Are you making repayments on the current one or is there some sort of special arrangement where payments are deferred until you graduate?

RJM22

Thanks toots

I have an agreement with my parents that I'll start paying it back once I graduate and in turn pay them for their contribution.

So it seems that it will really depend on what BOI think.

In your experience is there an amount that BOI 'prefer' to lend to students, as in is there a certain figure that is too high?

Toots

It all really depends on what the loan is for, and how good a candidate the applicant is. I've seen students get amounts from €300 to €30,000 (obviously that would be a rare occurrence). Best bet is have a chat to the bank and see what they say.