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Bank loan for postgratuate study

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  • 31-05-2011 12:59am
    #1
    Il Trap
    Registered Users Posts: 454 ✭✭


    I'm coming to the end of my first year of a full-time PhD study in Irish literature. I am hopeful of getting a local authority grant but this is not in any way a certainty. My only other option to fund this study is to take a bank loan as I don't envisage receiving government funding. I'm currently a BOI customer.

    My question is, how likely am I to have an application for a loan of €10k-€20k accepted, to pay for my fees and accomodation over the next two years? I will be unable to contribute much towards paying the loan back over the duration of the course but will endeavour to do so once I graduate. I tentatively broached the subject with the manager of my local branch a few years back and got little encouragement - although I must stress that this was only a very brief informal conversation.

    I have had several small loans over the past few years (I'm 25) and have paid them back on time in each case so my credit history is 100%. I currently work two teaching jobs part-time and earn around €1100 before tax per month, although this income is not a certainty over the next 2-3 years.

    Any help/advice would be much appreciated. Thanks.


Comments

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    #2
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    Have to be blunt here - your chances are slim to none.


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    #3
    Il Trap
    Registered Users Posts: 454 ✭✭Il Trap


    phormium wrote: »
    Have to be blunt here - your chances are slim to none.
    Thanks for the reply. Could you please elaborate on this a bit? Do you reckon I would have better luck applying to a credit union for example?


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    #4
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    Well if you a lukewarm response a few years ago think what you will get now in the current banking climate. The first thing a bank wants to see is ability to repay, you admit you don't have that at the moment, fine in theory, all student loans are based on future earning capacity but with the present state of the economy even that is hard to quantify. The banks are lending so little at the moment that what they are lending has to be cast iron. Put yourself in the banks shoes, what is in this for them, nothing at the moment and potentially wait a long time for the loan to be paid back. I could not see any underwriter agreeing to that loan at the moment unless there are serious extenuation circumstances such as excellent guarantor or some form of security other than property or shares.

    Credit Union is definitely better bet if you are a saver with them.


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