Bank Loan Question....

Teddi

Hey guys...

I was wondering if its possible to take out a loan and re-pay it after your years in college?
it wouldnt be a huge Loan...just enough to tie me up for Appartment expenses etc..

i know its a long time for re-payment, but has anyone else heard about it?
(I'll be in College for another 3 years)

Your student bank might help you if your parents go guarantor for the loan(assuming you are say 18-21 or so)
You will have to show some means of repayment capacity.

Are you looking for a loan that you only pay off in 3 or 4 years in some sort of baloon payment.
That would be very expensive if it's even available as a product(I've not heard of one)

fade2black

Get yourself a graduate account also.

drdre

how much are u looking for as i donot think any bank gives large amounts to students and i wouldnot say so as u would be in college for 3 years so it would be hard to pay it off while studing

anyway contact a few banks,someone should be able to help or try mbna as they are throwing away cash to everyone:D

angeldelight

drdre wrote:

how much are u looking for as i donot think any bank gives large amounts to students

I'm not sure about being able to repay it afterwards but the above statement isn't strictly true. It depends on the degree you're doing. Every time I speak to my uncle (he works quite high up for Ulster Bank) he's trying to persuade me to take a loan for large amounts as I'm doing a Pharmacy degree and will probably have quite a healthy account when I graduate which they'd like to keep. Also a friend on my course has a huge student loan, which paid for her masters and then graduate fees for this degree and accomodation etc.

I'd like a loan I could pay back when I was qualified, would pay for my rent!

antoinolachtnai

In the UK and the US this is pretty much how a large proportion of higher education is funded. It would be perfectly feasible to do it in Ireland too, particularly because long-term interest rates are so low. However, the scheme would inevitably need some sort of government guarantee. However, a national student loan scheme is just not politically palatable.

If you are well on the way toward a professional qualification that will get you earning a substantial salary within four years, I can see the bank lending you the money.

The one thing to watch out for is the interest rate. If you borrow twenty grand now at a rate of 9 percent, you'll have 32,000 in debt in four or five years. To pay that off at the same rate, will take somewhere in the region of Eur 1000/month over around four years. (Maybe the bank will give students a better rate on borrowing their education than they give to people upgrading their cars, I don't know.)

If you were investing in your business, you would be able to tax-deduct the interest on a loan like this which would greatly reduce the bill. However, that isn't allowed.

It is a shame the government can't see its way to introducing an attractively-structured student loan scheme for, say EUR 10000/year.

fintan

When I was in college, I got a loan that I didnt have to start repaying till about six months after graduation. Saying that I got the loan in my final year and needed my parents to act as guarantor.

Best advice is to drop into the bank and have a chat with someone

Teddi

sorry on the slow replys guys..

im looking to take out about 3500-4000..

mainly for appartment rent (place already sorted out)

currently working in a clothes shop and will be all year....(great pay)

ill only be taking it out for the year...then worry abou paying it back maybe in the following summer...

im doing art and have great possibilities selling my work in a friends gallery...which equals great re-payment potential??...im hoping it will...

that sound resonable?....thanks guys..

antoinolachtnai

If you haven't sold any art yet, I don't think I would put too much emphasis on it as a possibility. You should really try to sell some art though, if you think have the contacts.

I wouldn't be overly hopeful with this, because what you're doing isn't perceived as a high-paying profession with big prospects, and you're expecting the bank to hang on for 18 months or longer without seeing any of its lucre coming back.

Of course, that's just my opinion. I don't know about you, so I can't really say whether you have a hope of selling your art or landing a good job or not. (Though the bank manager won't know much more about you than I do.)

If you are pitching to the bank, you might want to construct the argument as being that you are using all the money you earn on your rent, and you need the extra money to put toward fees, books and materials.

Also, you should be proposing that you will begin paying interest and some capital much sooner, out of the proceeds of your job. Even if you are only paying EUR80/month, it sounds better.

They will probably want a guarantor.

Try and figure out what all the terminology means before you go near the bank guy. Try to work out your cash flows for the next three years. Maybe do these out in a spreadsheet (although don't necessarily bring these along with you to the bank manager).

nlgbbbblth

can you cover interest? That will have to be done so that the balance of the loan does not increase above the original amount sanctioned.

All situations are different. You'll need a guarantor. Depending on who the guarantor is, the Bank could permit a moratorium on repayments for a couple of years.

eth0_

Not a chance. You have to start paying back a loan the month after you draw it down.

What do you really need this money for? You say you have a job - landlords don't ask for a years rent in advance you know!

nlgbbbblth

eth0_ wrote:

Not a chance. You have to start paying back a loan the month after you draw it down.

doesn't apply for every situation.
particularly for students.

eth0_

nlgbbbblth wrote:

doesn't apply for every situation.
particularly for students.

Since when? Can you back this up with url's from Irish banks?

nlgbbbblth

eth0_ wrote:

Since when? Can you back this up with url's from Irish banks?

there are no hard and fast rules or laws governing this

for personal loans to people in full-time employment - yes repayments are usually meant to commence within one month following drawdown.

for student loans, other loans - it is possible for a degree of flexibility. The Consumer Credit Act permits this. As long as the appropriate loan agreement is completed repayments can be deferred for as long as can be mutually agreed.

BuffyBot

Since when? Can you back this up with url's from Irish banks?

Non-standard loans can be arranged at the discretion of the Lenders or Managers

sceptre

Teddi wrote:

that sound resonable?....thanks guys..

Quite possibly. I know someone who took out a similar-sized loan to fund education things (mainly rent). Repayments didn't start till about six months after graduation. The loan could have been easily restructured as a single balloon repayment had that been arranged before the first repayment was due but this wasn't the option taken. A suitable guarantor was required for the loan.

Easily_Irritated

eth0_ wrote:

Not a chance. You have to start paying back a loan the month after you draw it down.

No you don't. I got mine for 4th year cos I didn't work that year and went traveling after and got a delay on paying back. It all depends on how long you've had your account there, job prospects, previous credit rating and whether you have a gaurantor.

Altho you won't be able to delay it for like 4 years! You'd be better off trying to get a loan for a year and trying to pay off the majority of it next summer and then if you've a hight percentage of that loan paid off they'll extend your loan and lend you more. If you're a first year you will needa guarantor, tho!