Studies begin – more student lenders?
12.08.2009In the prevailing recession getting a summer job has been difficult and many seekers have found no work despite active search. It will be just as hard to find a job for the academic year. As working has been essential for many students to secure subsistence during their studies, they must now think of another way of financing their studies during the forthcoming academic year.
The popularity of student loan has recently been even surprisingly low and taking out a loan has been for many students the very last means of financing. In fact, demand for student loan was low until late last spring, after which it has been rising. The weak labour situation makes students take out a loan when they resume their studies, which means that the popularity of student loan will probably increase compared to last autumn.
Besides during the actual study period, studying affects the finances in the years following graduation. However, only few people make a comparative calculation on what taking out a loan will finally cost in relation to working during the studies and thereby possibly prolonging the study period.
Work experience is very important, but taking out a loan may also be well justified. Student loan is most often a cheaper alternative than consumer credit. Although students are often innovative savers and used to go short of their consumption, it is good to map out in time the available alternatives of financing studies.
If you wish to discuss your finances for your study period or need further information on student loan, contact a banking adviser in Nordea.
Further details of student loan
Tarja Svartström
