Student loan simulation: what is it?

When studying, it is common to need to take out a student loan for his studies, his housing, equipment, one or more semesters abroad, the purchase of a car, a motorcycle or any other project. But not always easy to start a loan application and know where to start.

This is exactly what the student loan simulation is for. Student loan simulators are tools available online. Like a calculator, they give you an idea of ​​the conditions under which you could apply for a student loan. In concrete terms, you fill in the amount you need and over what period, and the calculator simulates the monthly installments and the loan rate that could be offered to you.

Why do a student loan simulation?

student loan

Doing a student loan simulation is an important step in your student credit research. This step will allow you to:

  • To judge the feasibility of your project. The calculator tells you concrete figures (monthly repayments, repayment period), which allow you to protect yourself and see if you are able to assume these repayments;
  • To prepare your project well. Your application for a student loan will be better received by a bank or credit organization if it has been well thought out and you already have an idea of ​​the conditions under which the contract could be established;
  • Find the best solution for Ramsay familyment. You can do several simulations, for example by varying the repayment periods or the number of monthly payments. This will allow you to see the scenario with which you benefit from the most advantageous credit rate (or tag, annual percentage rate).

How to simulate your student loan?

Doing a student credit simulation is very easy. First, go to a consumer credit simulator. Most sites offer simulators for student loans, whether personal loan or credit affected.

Fill in the fields of the calculator for simulation

money calculator

To simulate your student loan, you must first fill in the empty fields of the calculator. To work, the tool needs to know:

  • The amount you want to borrow, which is the total amount you need;
  • Either the amount you are willing to repay every month, that is to say, the monthly payments that you can assume. As a reminder, these monthly payments must not represent more than 33% of your income. Beyond that, you risk finding yourself in a situation of over-indebtedness;
  • That is the duration on which you want the repayment of your student loan. It can be expressed in months or years.

Some simulators offer you to simulate your student loan with or without a deferred refund. A useful feature to make an informed choice!

Get the results of the simulation

From this information, the simulator automatically calculates the monthly payments that you can repay (if you have indicated a duration) or the duration of your credit (if you have indicated monthly payments), as well as the interest rate of your loan.

Warning: the information you provide a student loan simulator has no contractual value. These are indicative data, but are not definitive and do not correspond to an offer from a bank or credit institution.

The conditions for obtaining a student loan vary according to your profile, your guarantors, the type of school you attend, the course followed and your level of study. Note that the student loan simulation gives you a first idea of ​​the conditions of your project, but that they will have to be adjusted according to the elements mentioned above.

Compare after simulating his student loan

Compare after simulating his student loan

Once you have done your student loan simulations, all you have to do is compare the credits on a comparator. Thanks to the simulation, you know the conditions under which you would like to apply for a student loan. You can now put the banks in competition to get the student loan at the best rate!