Loans
Student, bank and credit union loans are funding options for many students.
Article by : SpunOut.ie
- If you are not able to get a grant or you need more money to survive then bank and credit union loans could be an option.
- Talk to your student's union before applying for a loan. They might decide you're eligible for financial help. They might be able to help you source financial help. Most colleges have a hardship fund to help students in need. There may also be childcare grants for students who are parents.
- You need proof of address and identification to open a bank account.
- If you're opening a student account bring your student card to prove this.
- Choose a bank that offers the best loan rates instead of one offering free gifts to students.
- The bank will have a student officer to talk to you about loan options.
- One option is an overdraft (a certain amount of money that you can spend even though it's not in your account). So if you have €600 in your account and a €500 overdraft then you can spend €1100. Ulster bank and National Irish Bank offer interest free overdrafts.
- Remember to also check with your Credit Union/bank about loans. Try to build up a good relationship with your Credit Union or bank so that you are more likely to get a loan if you need one. Avoid defaulting on repayments as this could affect your credit rating in the future.
- Beware of credit cards. The rate of interest on them may be high. If you do get a credit card, keep it for emergency use only.
- The Credit Union or bank may ask for a guarantor. This is someone who will sign the loan document and will have to repay the money if you don't do it.
- Remember that you're going to have to pay back the loan at some point so don't go crazy thinking it's free money! Only borrow what's really necessary to live on. Don’t use it to live beyond your means, buy expensive clothes or party!
- If you want to go travelling in the summer look for jobs abroad instead of borrowing more money to cover your expenses. You could also choose to work full time at home for a month of the summer and spend the other month travelling.
- Or you could work full time at home for a month of the summer and spend the other month travelling.
- You can find lots of useful information at www.itsyourmoney.ie.
Northern Ireland student loans
These are loans set up especially with students in mind. They are low-interest and partly means tested but unlike a grant, you have to pay the money back eventually. The Student Loans company decides on whether you're eligible for a loan and of how much.
If you have received a students loan and are still in serious financial difficulties then you might be able to get a hardship loan as well. Contact your Local Education and Library Board for more information.
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