When you start studying, it is well known that it can create several different new situations for you. In many cases, this may mean moving to a larger city where you can take your education. If you haven’t moved away from home yet, it will cause a big change, as you now have to live for yourself and manage on your own. This can be a bit overwhelming, as you now have to take some more responsibility.
It is well known that students can have a tight economy where it cannot always be entirely connected. This is where a student loan comes into play. A student loan can be a solution for you who lack a little extra capital to make your everyday life financially connected. Here we help you with a guide to everything you need to know before you take out a student loan.
If you want to know even more about student loans, read this guide to student loans at Good Finance.
What is a student loan and when do I need it?
A student loan is a loan you take in connection with your need to study. In order to delve deeper into what a student loan is, it is appropriate to first introduce how the finances of a student are typically related. When you need to start studying, it can be difficult to get the finances connected. A study can be extremely demanding, and in most cases it will be considered a full-time job. It is therefore something that you can quickly spend a lot of time on.
When you spend most of your time studying, you do not have much time to work. This means that your earnings will, as a starting point, be non-existent if you do not have the opportunity to make money. However, as a student in Denmark, you have several good opportunities that you can take advantage of.
What is a student loan and when do I need it?
A really good addition to your income is SU. SU stands for State Education Support. When you study in Denmark, the state gives you ‘salary’ to study. This is part of our welfare system that helps students get started with their education. There are certain requirements to be able to get SU. There are some overall requirements that you have to live up to. In addition, there may also be additional conditions depending on the education you are going to start.
The general conditions mean, first and foremost, that you must be a Danish citizen and a minimum of 18 years. However, in some cases it is also possible to obtain SU as a foreign national if you fulfill certain requirements. When you receive SU, you are not allowed to receive other forms of public support. For example, it may be cash assistance or the like. The training you must take must also meet certain conditions before you are eligible for SU. When you go to an education, you are required to be active in study. If you make money next to your SU, there are certain requirements that you may not earn too much. Therefore, there are several conditions that you must meet in order to obtain SU.
The rate of SU may vary based on several different factors. It can be in relation to whether you are a resident or a resident, what education you take, whether you have children and many more things. A very common scenario is an out-of-state student studying for a higher education. In this case, they will be able to receive USD 6,090 per person. month in SU. However, this amount is before tax. Therefore, you have to pay tax on the amount, which gives you less income.
If you are a student and only have an SU as income, it can be difficult to make it all come together financially. Housing costs can quickly eat up a large part of the SU, which doesn’t give you much back to pay fixed costs with and to live the rest of the month. This is where a student loan comes into play.
With a student loan, you can borrow money to live for while you are in education. It allows you to concentrate on your studies without having to live in a cardboard box or live off of water porridge all your study time. With a student loan, you get a supplement to your earnings, which will typically be your SU.
What is an SU loan and how do I get it?
One of the most common student loans in Denmark is an SU loan. The SU loan is in many ways linked to SU, as it is a loan option offered by the state. You therefore have the opportunity to borrow money from the state when you need to study if you are missing a grant for your SU. There are several special things about SU loans that differentiate it from a traditional loan that you know from the bank.
One of the most important conditions of being able to get an SU loan is that you receive the SU. If you don’t get SU, you can’t get SU loans either. It also means that you cannot get SU loans if you opt out of your SU for a few months or if you choose to take leave from your study.
When you need an SU loan, apply through minSU. This is also where you are looking for regular SU. For SU loans, be aware that you must apply for two rounds. In the first instance, you should apply to be allowed to get an SU loan. Once approved, you can apply for how much you want to get in SU loans. It typically takes 1-2 weeks to get its SU loan approval approved. Once you get the approval, fill out a loan plan. It is in this loan plan that you have to fill in how much you want to borrow, which you must then also approve. This is the second round of application for an SU loan.
The smart thing about an SU loan is that you make a loan plan for one year at a time. It is therefore something that you have to complete every year. With this loan plan, you know how much you can get out of your SU loan over a year. However, you can control how much you want to spend each month. You could say that a total amount will be made available, which you can distribute yourself over the months. It gives you a lot of freedom to coordinate the repayment of your SU loan. You may have some months where a higher income is needed than others. This may be, for example, at the end of the semester, where books must be purchased for the new semester. With an SU loan, you have much more freedom to put together your finances as you need it.
Another benefit of an SU loan is that you only have to repay the amount and interest of that amount that you actually borrow. When you have a pool of money from your SU loan that you can distribute over the year, there is no requirement for you to use the entire pool from the SU loan. Simply use what you need and pay back only what you have spent. It gives you a great opportunity to tailor the SU loan to your finances.
Are there different types of SU loans?
When you need an SU loan, there are several different types to choose from. Exactly, there are three different types to choose from. There may be certain conditions for you to be approved for the different types. The three different types are the traditional SU loan, supplementary SU loan for dependents and final loan.
The traditional SU loan
The traditional SU loan is the loan that most students use when they need an SU loan. So far, this is what is primarily explained in this post. When you choose a traditional SU loan, you can receive an average of USD 3,116 per month. month (SU.dk, 2018) in addition to what you get in SU.
Supplemental SU Loans for Providers
A supplementary SU loan for dependents is slightly different from the traditional SU loan. You can only get a supplemental SU loan if you have already been approved to get the traditional SU loan. The supplementary SU loan is a way to borrow more money while you are a student. When you get a supplementary SU loan for dependents, you get both a traditional SU loan and a supplemental SU loan. Therefore, there are two different rates added to an SU loan.
First of all, you will get the rate of USD 3,116 for the traditional SU loan. In addition, you get a rate above, which sounds at USD 1,559 on average per person. month. That gives you a total of USD 4,675 on average per day. month. However, it is also possible to use only a supplementary SU loan for dependents, and thus only settle the rate of USD 1,559, if that is what you need.
However, there are certain conditions for you to be eligible for a supplementary SU loan for a parent. It is slightly in the designation. You must, of course, be a provider in order to be approved. That is, you must have one or more children who are under 18 years of age. In addition, they must have address at you.