The 6 Best Student Loans. Find yours!

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If you are a student and are thinking about applying for a loan, know that a wide range of options is available in the Brazilian finance market. Getting credit, you can finish paying for your studies, take a trip, pay for international exchange, buy books, among others. 

The Brazilian financial market is growing, and it increasingly offers us better and more accessible options for different audiences. It is important to verify that the lending entity is trustworthy.

What is student credit? 

The great lake student loan category has been used for many years in countries such as the United States. It is very common for students to use this credit to pay for their university studies. 

It is a type of credit that is intended for this audience, and for that reason, it has lower interest rates and special plans. In Brazil, more and more banks and financial institutions are developing and making this service available to students.

What are the types of student finance?

Here are four types of student loans that are highly recommended in the country:

  •  FIES ( Student Financing Fund ) – It was created by the MEC (Ministry of Education) of Brazil. It is responsible for funding the studies of students who cannot afford a private college. 
  •  Bolsa Universidade – The Bolsa Universidade project is present in the Government of the state of São Paulo. It is aimed at students who do not have the purchasing power to pay for college. The student who obtains this scholarship receives full funding for his studies: fifty percent is paid by the University and the other fifty by the Government. What is different in relation to FIES is that the individual pays this scholarship by performing a function in the Escola da Família program on weekends. 
  •   PEP (Private Student Program) – Fresher students will be able to enter the PEP and choose one of the institutions that are participating in the program, as well as one of the three installment modalities that are available: PEP 25, PEP 30, and PEP 50). Each of them has its specifics. 
  •  PraValer – This financing category is present in more than three hundred institutions spread across the country. In order to enroll, the student will have to verify that the institution is among those that allow this type of financing, and it will be necessary to have a “guarantor” who has an income higher than a monthly minimum wage and cannot be negative.

How does student credit work?

Student credit will work in different ways according to the specific agency. Here we explain how student credit works for some financial entities:

  •  Fies – Students must enroll in the graduations that have a good evaluation by the MEC and in institutions that accept this program. Another requirement is that the student must have taken the ENEM (National High School Exam) test and must have obtained a minimum score of four hundred and fifty, as well as the essay, cannot be zeroed. The family of this individual will have to have an income per month of less than three minimum wages. 
  •    University Scholarship – Only students without another faculty will be able to participate. 
  •  PEP (Private Student Installment) – To function according to the election of each student by the credit options that exist in this program. The types of installments are PEP 25 (the student obtains the financing of about seventy percent of the total cost of the monthly fee and pays the remaining 30%), PEP 30 (the student pays 70% of the monthly fee, and the scholarship 30% ), PEP 50 (half and half, half pays the student and the other half the scholarship).
  • PraValer – It works every six months. The interested student will have to find out if the institution of interest has an agreement with educational credit. The cost of monthly fees must be paid in full by the program, and the consumer will be able to pay off this debt up to 6 months later. 

Is student credit worth it? 

Student credit can be very useful for the lives of many Brazilian students, especially if it will be used to finance an important life project that will bear much fruit in the future. The recommendation is that before a consumer decides on any type of loan, they carry out simulations of the total cost of the loan and also of the monthly interest rates. Take advantage of this option on the Melhor Trato page. The student will be able to simulate as many times as he thinks is necessary and clear all his doubts.  

online student credit

With all the facilities that the internet has provided in the modern world, getting a loan is getting easier and more practical. Many banking and finance companies are adapting their services so that at least part of the loan transaction can be carried out online. 

Banco do Brasil, for example, has a payroll-deductible line of credit that is intended for students who work with a formal contract, and much of the procedure can be done online. These are some of the advantages offered by the institution:

  •  Flexibility for the payment of loan installments.
  •  Low-interest rates because it considers that the university public does not have much purchasing power.
  •  The payment of installments will be deducted from the payroll.
  • The payment term can be long, depending on the contract with the bank. 
  • By purchasing this service, in addition to paying for your higher education, you will also be able to pay for the purchase of study material. 

student loan simulator

The most suitable measure for the Brazilian student who is looking for a loan of any type is to carry out numerous simulations of its existing possibilities. It is also recommended that credit be simulated with different institutions. 

After many loan simulations have been carried out, the student must compare the results, as this will allow him to obtain a broader view of all his possibilities. 

Also, try to know not only the value of interest rates and installments but also the CET (Total Effective Cost) of your credit. The CET contains:

  •   Tax on Financial Transactions (IOF).
  • Loan  Review Fee.
  •  Insurance – This is security for cases in which the person responsible cannot pay the debt he has incurred.
  •  Total interest rates.
  •  The rest of the fees and related fees.

It refers to the total, complete expense that will actually be paid to the bank or finance institution selected for the requested loan.

personal student loan

For students who were unable to get a loan with Fies or its model (because they are loans for this audience), you can use personal student credit.

Many banks and institutions currently provide this service. The value of the interest rates of this type of loan is lower than other credit options in the Brazilian financial market. 

To be able to take out a personal loan, the student must be of legal age (18 years old and above) and must present a bank statement or proof of income, proof of residence, among others. Bearing in mind that these documents will vary according to each different institution, as each stipulates its own regulation.

What is the best student loan option?

These are some options from banks and financial institutions that are considered quality and reliable to hire student loans: 

  •  Banco Itaú student financing – PraValer was purchased by Banco Itaú, so the plans coincide; that is, the plan mentioned above in this article corresponds to the same.
  •  Financing from Banco Santander – This institution does not have a financing program for undergraduate courses. However, it has the Continued Education Credit, with which it is possible to finance postgraduate courses and MBAs. Not all faculties have an agreement with this entity. This credit proposal can finance up to 100% of the cost of the course in question. 
  •  Bradesco – Student Financing – At Bradesco, student customers will have twelve months to pay off the corresponding six months of their college fees. The amount will be automatically debited from your account, and the first installment will be validated thirty days after you sign the contract with the bank. 

College Loan – Government Measures 

Fortunately, the Government of Brazil provides a lot of student funding. This action helps to increase the perspective of life, work, etc., of many disadvantaged individuals. Not only are undergraduate university studies funded, but graduate studies are as well. The Coordination for the Improvement of Higher Education Personnel (Capes) and the National Education Development Fund (FNDE), an agent of Fies, offer the possibility of many scholarships, both for universities located in the country and international scholarships. 

CDC Educational Credit

The Consumer Defense Code cannot be valid for educational credit agreements. Likewise, it will not be possible to capitalize interest rates in these situations, as it concerns a program that is governmental and provides good assistance to students who are in need.

The CDC is not valid because educational credit is not considered a banking function, however, but is a government program, which is paid entirely by the Federal Union of Brazil. 

100% student financing 

Some institutions such as Fies and PEP (Parcelamento Estudantil Privado) have full funding proposals for students who need the scholarship to stay in a higher education institution. Both entities, for example, provide the possibility for this loan to be repaid in a flexible manner and with low and fixed interest rates. Expiration dates are also considered reasonable and may be extended in accordance with the contract established between both parties.  

Student loan for an exchange 

There are many quality financial companies that generate student exchange funding in Brazil. Bradesco and Banco do Brasil are two of them. At Bradesco’s bank, for example, there is a plan called CDC Intercâmbio, whose main characteristics are: installments starting at twenty reais, it is available for account holders who are over eighteen years old, the payment term can be up to 48 months, and the IOF is financed and is added to the value of the installments.

Student funding Medicine

In Brazil, as Medicine is a very competitive degree and therefore very difficult to enter a public college, many finance companies and banks offer financing in private institutions. Banco Santander is one of them. These are some of the main features of this service offered by the entity:

  •  It is available for students who are studying the third month of Medicine.
  •  The amount that is released to the college is in the form of a single installment for the full term.
  •  The interest rate starts at 1.39% per month (can change depending on the credit analysis).
  •  The medical student may have twice as much time to pay as compared to other types of loans.
  • Loan fees are lower than college tuition and are deducted directly from your bank account. The student may renew the funding. 
  •  It will be necessary for the client to have at least one guarantor, who will necessarily have to be the mother, the father, or a financially responsible person who can prove the situation of economic dependence.

Private student funding 

For student students who have not been able to obtain funding from a program that provides them with a 100% scholarship, they may choose other alternatives. In general, these alternatives will be offered by financial institutions and banks, and sometimes by the University itself.

If the student has a bank account, for example, they can ask or check if they have private student financing.

Remember to thoroughly research satisfactorily before making such an important decision as taking out a loan.

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