Life as a student is not always a dance on roses, and it is especially difficult for the economy to get the hang of it for most people. We are fortunate to live in a privileged country where you have the opportunity to receive support during your education, but surviving on SU alone can be difficult.
It is especially students in Denmark’s most popular study cities who may run into problems with the economy. This is mainly because the rent in these cities is so high that a large proportion of the monthly rent. Here, it can be completely impossible to survive on SU alone.
Not everyone can get help at home
Some students are so lucky that they can get help from home. For example, more and more parents are choosing to invest in an apartment for their children, which they can live in while they are studying, while others choose to provide some financial assistance along the way.
However, it is far from all parents helping their students along the way. For some, this is a matter of principle, since the young people must learn to stand on their own, but for others it is simply because there is no advice. In any case, it can be extremely difficult for these young people to get their finances connected.
The opportunity for leisure jobs
Many young people choose to get a leisure job which can dilute the economy while they are in education. This can be a good way to avoid student loans if you have the energy to care for study and jobs all at once. Some students are also so lucky that they can get a job that is relevant to their studies, but this is often a small number.
In some studies, their emphasis is on study-relevant work, which often means volunteering or unpaid internships. For many, this may make it impossible to have a paid job as well. Others just want to focus 100% on their study so that they can achieve the best possible results and therefore they opt out of work.
In some of Denmark’s largest study cities, it is a well-known problem that there are not enough student jobs compared to the number of students in the city. This is because universities attract so many young people that there is huge demand for jobs. In practice, this means that students cannot find a job even if they wish.
What does a student loan cost?
Unlike most other loans, setting up a student loan costs nothing. With other types of loans, it is common to pay a setup fee, but this is not the case with a student loan. You can borrow around DKK 3,000 a month and the interest rate is 4% while you are still reading.
When you finish the study, the loan must be repaid. Here, the interest rate drops to 1%, which is an extremely low one. Generally, there are no other loans that can match that interest rate. However, it is important to note that interest rates rise to 8% if you do not comply with your repayment agreements.
How much to pay off each month depends on the size of the debt. It is also the size of the debt that decides whether to repay the loan for 7.5 or 15 years.
Is student loan a good idea?
Initially, it is rarely a good idea to take out debt, but experts do point out that in many cases a student loan can pay off due to the low interest rate. As mentioned earlier, a cheaper loan is not found in the market, and thus it can be an advantage to take advantage of the loan option.
If you are a student and are considering a student loan, then you should note that you can borrow up to approx. DKK 3,000 every month where you are active in study. However, there may be talk of it being possible and borrowing extra if, for example, you are a provider or similar. However, here it is also important to note that there are no loans. For example, you can easily borrow less if you can live for less. If you borrow thousands every month for all the years you study, it can easily run into a lot of money. This can feel like a hindrance on the day you get your first job.
Pay back your student loan
You start repaying your student loan when you finish your study. You will automatically receive a letter from the SU Board when it is time, and here you will also have the opportunity to view your entire repayment schedule. Often, you only have to pay off with a small amount, which also means that it can easily be a long repayment period.
In relation to a student loan, however, it is important to note that it is also permissible for you to make voluntary payments. You can do this at any time and it’s free. Many people choose to take advantage of this opportunity so that they can get rid of their debt faster and pay less in interest. A small extra repayment on the loan can be one and investment if you have money to spare.
Do I have to pay off extra on my loan?
As mentioned earlier, you have the opportunity to voluntarily deposit extra money to pay off your student debt, which can be a huge benefit if you want to be debt free quickly. However, it is important to mention that it is by no means always a good business.
You may not pay off extra on your student loan if you have debt elsewhere. This is because the student loan has the lowest interest rate, so getting this loan out of the world should not be your first priority. If you have other debt, this debt should be your first priority – especially if it is repayment loans, or other types of expensive loans. Only when these loans are gone should you consider giving extra attention to your student loan.
Fortunately, student loans are generally so cheap that interest expenses are marginal as long as you comply with your repayment scheme.