November 16, 2020
As everyone knows, financing student life is complicated. You leave home, you move and for many it's the first time they have to manage a budget.
This year, more than 2 million students faced financial difficulties (FAGE).
These difficulties can be related to different factors: such as living expenses (housing, food, transport, ...) as well as tuition fees (which keep increasing every year). They can also occur at any time during a student's education (loss of a student job, unexpected expenses, etc.). Each student has a different situation and therefore a different financial need. University students mainly need help with living expenses, while public school students need to pay their tuition fees and living expenses.
COVID has made this situation much worse as many students have lost their jobs. More and more students find themselves in a bank overdraft situation every month, and end up going without food and care for financial reasons.
Sacha's Brut interview highlights the financial difficulties of students.
To support themselves, students often have to fend for themselves. They have two options: student employment and student loans.
Today, 40% of students have a job during their studies. Having a student job is empowering and professionalizing. It can also be an opportunity to apply what you learn in class.
However, wages are not sufficient to cover living expenses and are often only a supplement to another type of income. Having a student job can also have negative effects on academic performance. Employed students are also more likely to have to make up work, repeat grades and stop their studies before graduation.
At Smarto we are convinced that the student loan is one of the best solutions to cope with student financial difficulties.
Indeed, it allows to cover the living expenses of students and their tuition fees. In France, the student loan is cheap (0.8% interest rate) and the deferment period allows students to pay back only at the end of their studies (once they have a job). It is true that taking out a loan is not a decision to be taken lightly: every borrower has to pay back the amount borrowed. But when taken out properly, a student loan is an investment in the future. Many countries, such as Sweden and the UK, have created beneficial student loan schemes, allowing students to continue their studies while living with dignity.
From May onwards, Smarto will simplify access to student loans, by acting as a guarantor for those who do not have a guarantor (regardless of your family's financial situation). We are working hard to make the application process simple, fast and transparent.
If you have any questions about your student loan, don't hesitate to contact us directly on Instagram or by email.
