The two economists Jorge Collar from Copenhagen Business School and consumer economist LeAnn Merge from Nordea agree. It is silly not to take a SU loan while studying. This is stated in articles for Politiken and Berlingske Tidende.
Today, it is far from all SU students who take out an SU loan and that is what the economists think is a big mistake. However, they do not think you should borrow the money to spend them. No, instead, students should put the money into a savings. The explanation comes here.
If you borrow money through an SU loan with a 4% interest rate, and then deposit the money into a bank account with an interest rate of 2-3%, it will make a deficit during your studies. But when you finish your education, you will most likely need the money to start a family or buy a house, for example, and this is where the scam lies. The loans you can take out through the bank are more expensive to take out than a SU loan and may go up and cost you more money in the long run.
Thus, economist Jorge Collar believes that if the students have a longer-term plan than the 5 years in which they study, then there is money to save.
Important to remember about SU loans
However, one of the most important points to remember is that you do not have to borrow the money to spend them. Because if you spend the money and subsequently come down to the bank with a student loan of $ 250,000 and want to lend money to a house, the bank may not approve your loan because of your student debt. Therefore, your student debt can also become a problem for you if you do not look after it. Instead, you should take out an SU loan if you plan to earmark the money specifically for the expenses that come when you finish your study.
An SU loan is clearly one of the cheapest loans one can take because of the favorable interest rate of 4%. Furthermore, it is easy to get because you do not have to provide a guarantee for the loan. Therefore, it is tailor-made for students and LeAnn Merge believes it is foolish not to make use of a loan that is definitely intended for one’s specific situation. Therefore, she thinks one should consider taking an SU loan before taking a loan in the bank.
Briefly about SU loans
You can take an SU loan if you are a student and receive SU. However, you must be an active student and therefore cannot apply for the loan while you are on leave or otherwise away from your studies. SU loans and final loans are offered by the state and repaid to the State Administration after the end of the study period. The loans are taken up for one year at a time and are paid in monthly installments. The loans can be repaid at any time or during periods when you do not need them.