The solution to students' financial difficulties

The difficulties faced by students have been exacerbated by COVID. Student distress is real as can be seen here, here, here and here. Students feel alone, isolated and in a precarious situation. For Smarto, the solution to this situation is student loans accessible to all.

Student loans for all: a solution envisaged by the State

Long neglected by the state, students have become a priority for the government. We applaud the proposed law for a €10,000 loan for all young people aged 18 to 25, to enable them to invest in their future. Young people are the future of our country, it is important to allow them to invest in themselves.

We are convinced that the student loan is the right solution: it allows everyone to continue their studies, it is inexpensive and empowering.

The student loan, an equal opportunity factor?

While student debt in the US is alarming, some of the most egalitarian countries in the world such as Sweden make extensive use of student loans. As education is free in Sweden (like universities in France, which are almost free), student loans are mainly used to cover living expenses while studying. It allows their students to invest in their future by continuing their studies while living with dignity.

Every year, 85% of Swedish students take out a student loan, compared to only 12% in France.

The organisation in charge of student loans in Sweden does not take into account the financial situation of the parents but that of the student when granting the loan. The loan is therefore accessible to all and limits the impact of the student's family's financial situation on their choice of studies. Smarto seeks to do the same by replacing the guarantor for student loans.

Student loans in France

At Smarto we are convinced that student loans are one of the solutions to get out of this crisis and allow students to live in dignity.

The benefits of a student loan:

1. Rates are low (0.8% on average).
2. Setting upa deferment (the student only repays the outstanding capital once he or she has completed his or her studies).
3. A long repayment period (up to 12 years).

However, the student loan is not very common because it also has disadvantages.

Disadvantages of the student loan:

• The procedures are cumbersome : it often takes 2 appointments in the agency and it takes an average of 2 months between the first appointment and the receipt of the funds
• The student needs a guarantor. A guarantor is a close relative (often a family member), with a permanent contract, in France, who is between 30 and 55 years old and who is not too indebted.

Smarto, the student loan 2.0

Smarto makes student loans even more attractive. We solve the problem of the guarantor by replacing it: we make the student loan accessible to all. We simplify the process by digitising the loan application and accompanying the student from the analysis of their needs to the repayment of the loan. We speed up the process, with the student receiving the funds in 2 weeks instead of 2 months on average.

For more information about Smarto's services, you can follow us on Instagram or contact us directly on our website.

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