The State can act as a guarantor for the repayment of a student bank loan: this system facilitates borrowing from partner banks to pursue your higher education.
Do you need money to pursue your higher education? Note that you can take out a student loan guaranteed by the State : partner banks can grant you a loan of €15,000* maximum and this, without condition of deposit or financial resources. The State acts as guarantor with the partner banks through Bpifrance. Be careful, the banks decide whether or not to grant the loan, mainly in relation to the quality of your professional project.
* Amount 2021-2022: €20,000
The number of student loans per year is limited (2021-2022: 5 times more than the previous academic year as part of the State Recovery Plan)
Who can benefit ?
Any young person between the ages of 18 and 28 enrolled in an establishment in France with a view to preparing for a competitive examination or a French higher education diploma .
To apply for a student loan , you must be of French nationality or a citizen of a country in the European Economic Area.
Appointment between May and September (in view of the next academic year) in one of the contracted banks. Your adviser will explain the procedure to you and will accompany you in the subscription of your loan.
- Who has not been able to complete their training within the time limits set by law.
- Completing training for the follow-up of post-internships, or for training beyond the master’s degree (provided that this training does not exceed 3 years).
- Who is following additional professional training to promote the exercise of the targeted activity.
Nearly 40 million Americans will start repaying their student loans in May, after a two-year break, at the risk of seeing an increase in late payments and defaults on all loans, according to a study by the American central bank. These borrowers “are likely to experience a significant increase in defaults, both for student loans and for other debts, once the moratorium expires”, underline, in this study, Jacob Goss, Daniel Mangrum and Joelle Scally, researchers at the New York branch of the New York Fed .
How to do ?
A pause on the repayments of certain student loans had been decreed in March 2020 by former President Donald Trump and then extended several times by Joe Biden, now until May 1 , 2022. Nearly 80% of borrowers have been able to benefit from this moratorium. But, for those who have had to continue repaying student loan installments, delays and defaults on other loans have multiplied.
Cancel student loans
Along with Senate Minority Chuck Schumer (D-NY), Warren said the federal government should forgive up to $50,000 for each student borrower. Warren and Schumer say if the president cancels student loans, it would reduce social, economic and racial disparities and help stimulate the economy.
That said, Schumer changed his tune this week and now says this student loan forgiveness would only apply if you earn less than $125,000 in annual income. Currently, Biden does not support a plan to forgive $50,000 in student loan debt. On the contrary, Biden wants to cancel $10,000 for each student borrower due to the Covid-19 pandemic.
Will your student loans be forgiven?
They say that Congress has already authorized a President (through the US Secretary of Education) to cancel student loans without further authorization from Congress. Biden says he doesn’t plan to forgive $50,000 in student loans. Instead, Biden called on Congress to immediately cancel student loans. That could lead to a battle next year, especially if Republicans maintain control of the US Senate. Senate Republicans are unlikely to endorse a large-scale student loan forgiveness plan. It’s unclear whether Biden can legally cancel student loans for millions of student borrowers through an executive order. Most legal scholars would argue that under the US Constitution, Congress should pass legislation to cancel student loans because it is a form of federal spending, and Congress controls federal spending.