What the student loan is?  When and where it comes from?

Hey student or future student! How are you? This time we have written an interesting blog that will definitely be useful to you. You understand our today's topic, don't you? Yes! student loan. We will move together to the past to understand when and where the student loan comes from, then to the present to see in which countries it is popular and what advantages this type of loan has.

If you are reading this blog right now, then since now, you are making your small contribution to your future.

Let's start with the main question. What is a student loan?

A student loan is provided to a student to pay for secondary or higher specialized education. It differs from other types of loans in that the interest rate can be significantly lower, and the repayment schedule can include a delay.

Student loans are provided by private institutions, such as banks and other financial and credit institutions. The state also supports young people by subsidizing part of the student loan interest rate.

Currently, millions of young people use this type of loan. It is very popular in Japan, USA and Sweden. Recently, the student loan is also experiencing a great development in Armenia.

And since the student loan is sometimes not associated with the actual type of loan, today many students already make their profitable investment for their future.

Now let's move to the 1100s, to the University of Bologna, then to the famous Harvard, and understand how it all began.

In the beginning student loans were available in Europe at the University of Bologna in the 1100s. In the United States, student loans began to be provided by private institutions at Harvard University in the 1830s. And already in the 1950s, the USA started offering student loans, the premise of which is the adoption of a special law in 1944, known as the GI Bill. This law was intended for veterans and servicemen. They could enroll in vocational schools or colleges, get student loans, reducing their tuition costs. By the way, servicemen can still receive financial assistance through the GI Bill.

In RA, in 2013, the government supported the student loan interest payment financing program. The purpose of this program was to enable young people with no tuition fees to take out loans on a privileged basis and get an education provided that repayment of the loan would be carried out later. Banks gradually began to develop and offer student loans, and part of the loan interest rate was subsidized by the state.

4 facts about student loans

1. Student loans are provided at a lower interest rate, part of which is subsidized by the state.
2. After obtaining a student loan, during the entire period of education, the borrower only repays the interest of the loan, and after the graduation, the borrower repays the principal amount and interest of the loan.
3. Getting a student loan varies greatly by generation. For example, Millennials and Gen Zs at the same age have more student loans than previous generations.
4. Investment in education. student loans allow individuals to invest in their education, personal growth and development. It contributes to career advancement, therefore allows you to have a highly paid job in the future.

Did you know that Americans currently owe more than $1.7 trillion in student loan debt? This debt is still growing, affecting more than 45 million borrowers. Shall we share the good news? This rapid growth in student loan debt has caught the attention of the US government, and under the National Student Loan Debt Forgiveness Program, more than $116 billion in student loan debt has been forgiven by the government.

About the Evoca student loan and its terms

And now let's talk about the most important- Evoca student loan.

If there are obstacles related to obtaining new qualifications and professions, Evoca is ready to pay for you. Obtaining a student loan at Evocabank is very simplified, fast and easy.

The bank provides student consumer loans with the most favorable terms.

Why student loan in Evoca?

• During the entire period of study, you only repay the interest on the loan (maximum 5 years),
• Only after graduation you start making equal repayments of the loan principal amount and interest,
• You can get a loan on privileged terms with a low interest rate.
• You can get 2-3% subsidy from the state.

Evocabank has also simplified the procedure of tuition fee payment.

How?

To save your time, the Bank transfers the money to the bank account of the relevant educational institution.

And in the end, remember that this is your best investment for the future. Never miss even the smallest opportunity to acquire a profession. Evoca is always by your side.

And as Benjamin Franklin said:

"An investment in knowledge pays the best interest”.