A student loan is a great help for financially impaired students who wants to earn a decent education. Different countries provide student loans, though terms vary from one to the other.
Student loan in the United States
In the United States, a federal student loan is offered by the government to assist students who want to obtain a college or university education. Title 4 of the Higher Education Act of the United States provides federal student loan for the entire students living in the country. Federal student loans usually come either subsidized or unsubsidized and is guaranteed by the Department of Education either directly to the student or paid on the student’s account. Federal student loans have a grace period of 6 months. Meaning students are not obliged to pay until 6 months after graduation or stopping from college.
Student loan in Australia and Canada
In Australia, students can obtain interest-free loans from the Higher Education Loan Program (HELP), which is jointly administered by the Department of Education, Science and Training (DEST), and the Australian Taxation Authority (ATO).
The HELP aids undergraduate familial students to cover all their school fees. Students can apply for a $5,000-loan every six months, though they are only allowed to apply for two loans over their lifetime. The loan is directly granted to the applicant minus the 20% charge from the amount borrowed.
In Canada, both the federal government, through the Canada Student Loan Program (CSLP), and the local government can grant student loans. Part-time students are eligible of receiving such loans though they must repay the interest while still studying. Payment for the principal begins after the student ceases from attending school. Meanwhile, students with disabilities are eligible for a grant, which is intended to cover the cost of education for the year.
Student Loan in the UK
In the United Kingdom, students can apply for loan through the local education authority, which usually examines the application and determines the actual need for assistance of the student. Loans are usually released by the Student Loans Company.
Student loans in the UK do not require repayment for as long as the student is in school or earning at least L15, 000 annually. The loan is usually interest-free since the interest rate is tied to the current inflation. Payments are later deducted from the salary of the borrower, at 9% of the total annual gross of the borrower. There is no exact schedule or deadline in clearing the loan. In fact, if the borrower is not able to pay back within 25 years or by the time he is reaches 65, the loan is nullified.
Student Loan in Germany and the Scandinavian Countries
In Denmark, students are granted a student loan when they reach the age of 18. The loan is overseen by the Danish State Educational and Loan Scheme Agency. Though Denmark secondary and tertiary education is virtually fee, students still offered a loan, should there be a necessity to do so. Eight hundred ten dollars is the maximum amount released for every student loan application and is repayable when the borrower ceases from attending the school.
Germany is another country that offers student loan despite the fact that it charges nothing for a college education. Students belonging to low-income households are usually the recipient of the loan to fund school-related expenses whenever parents cannot afford to do so.
Student loan in Norway is administered by the Norwegian State Educational Loan Fund (NSELF). It is usually issued to student provided he is student at a NSELF-accredited institution. Payment is made after graduation and no interest is added on the capital. Every semester, students who want to convert part of their student loan into a grant are required to take and pass an examination.
In Sweden, a study grant is provided, especially to students living with their parents, though they can both avail of a study grant and a student loan. A full-time student can borrow as much as $700 a month, which free from income tax.