If you are a student looking to apply for a loan , be aware that there is a wide range of options available in the Brazilian finance market. By getting a credit you can finish paying for your studies, taking a trip, paying for an international exchange, buying books, and more.
What is student credit?
The 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, for example.
This is a type of credit that is intended for this audience, and therefore 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 funding?
These are four highly recommended student funding types in the country:
- FIES ( Student Financing Fund) – It was created by the Ministry of Education (MEC) of Brazil. It is responsible for funding the studies of students who are unable to afford a private college.
- University Grant – The University Grant project is present in the state government of São Paulo. It is aimed at students who have no purchasing power to afford a college payment. The student who gets this scholarship gets full funding for his studies: fifty percent is paid by the University and the other fifty by the Government. What is different about FIES is that the individual pays this scholarship by performing a function in the Family School program on weekends.
- PEP (Private Student Program) – Freshman students will be able to enter PEP and choose one of the institutions participating in the program as well as one of the three installment arrangements available: PEP 25, PEP 30 and PEP 50). Each has its own specifics.
- PraValer – This funding category is present in over 300 institutions across the country. To enroll the student will have to check if the institution is among those that allow this type of funding, and will need to have a “guarantor” who has an income greater than a minimum monthly salary and can not 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 undergraduate programs that have a good MEC assessment, 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 as a minimum grade four hundred and fifty points, as well as not having been able to zero the essay. The family of this individual will have to have a monthly income of less than three minimum wages.
- University Scholarship – Only students without other faculty may participate.
- PEP (Private Student Installment) – 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 gets about seventy percent of the total cost of tuition and pays the remaining 30%), PEP 30 (the student pays 70% of the tuition and the scholarship 30% ), PEP 50 (is divided half and half, half pays the student and the other half the scholarship).
- PraValer – Works every six months. The interested student will have to check if the institution of interest has an educational credit agreement. The cost of the monthly payments will have to be fully paid by the program, and the consumer will be able to repay 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 is intended to finance an important life project that will bear fruit in the future. The recommendation is that before a consumer decides on any type of loan, he should perform simulations of the total cost of the loan as well as monthly interest rates. Enjoy that on the Best Deal page this option is viable. The student will be able to simulate how many times he thinks it is necessary and answer all his doubts.
Student Credit Online
With all the facilities that the internet has provided in the modern world, getting a loan is becoming easier and more practical. Many banking and finance companies are adapting their services so that at least part of the loan transaction can be done online.
Banco do Brasil, for example, has a payroll-deductible credit facility that is designed 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: