Who can guarantee a student loan ?

Are you a little worried about budgeting? Welcome to the adult world. Depending on what you’re planning to study and where, your expenses can soon explode, with rent, shopping, Uni fees, a foreign exchange trip, and leisure activities your wallet will be groaning. So, you’ve decided to take out a student loan? But you need a guarantor... who can guarantee a student loan? Nemea Appart'Etud has the lowdown.

What does a student loan guarantor do?

Great question! Thanks for asking! If you’re a first-time student, you probably haven't yet passed your student loan black belt. So what’s a financial guarantor? Also known as a guarantor, the guarantor is a way for the bank to ensure the loan they give you gets repaid even if you can’t pay it back yourself.

In concrete terms, if you are in arrears or just don't have the money and can't pay, the bank will knock on your guarantor’s door and ask them to pay for you. It’s an assurance for the bank, and the more "secure" your guarantor, the more likely you are to get a loan at an attractive rate (like if it's Jeff Bezos you don't have to worry too much).

Generally, you’ll only have to start repaying your student loan once you’ve finished your course, but read the fine print to be sure, so your guarantor doesn’t get mad when the bank starts knocking their door down.

Who to choose as a guarantor for your student loan?

Be careful, you can't choose just anyone to be your guarantor, there are some rules to respect. The guarantor must : 

• Be an adult
• Be able to justify sufficient income

So while your little cousin's offer to give you her piggy bank is super cute, it’s not actually very helpful.

You can also get a State guaranteed loan! And you don’t need to be down to your last cent, eating leftovers from the uni cafeteria to get one, as it isn’t linked to your resources. The conditions of the State-guaranteed loan: 

• Be enrolled in a higher education institution (or preparing for a competitive examination)
• Be under 28 years of age on the date you sign for the loan
• Be of French or EU nationality (but you must prove that you have lived in France for at least 5 years)

The maximum amount is 15,000 euros, but this can only be borrowed in certain banks that have signed an agreement with the State: Crédit Mutuel, Société Générale, CIC, the various Banque Populaire and Caisses d'Epargne.