Have you ever thought about going to college , but not sure if you could afford it every month? Want to know more about how the Student Financing Fund (FIES) works and other options to finance your studies?
Don’t worry: realizing the dream of graduation can be a reality for you, since, in addition to student funding offered by the government, there are also private funding and scholarships.
For those who want to earn an undergraduate degree, the opportunities to spend little studying at a private college are real. In addition, the student is not always able to move to the city where a public university is located — and what is free can be more expensive.
The idea is that the government, through FIES, (or a private loan estimate company) pays the monthly fees and then you pay the amount in installments that fit in your pocket . So you don’t have to choose whether to buy an important book for your studies or pay for college.
In this sense, FIES and private funding can be an additional door for those who want to go to college. In this post, you will find everything you need to know about student finance. Read on and find out!
What is student funding?
One of the biggest difficulties faced by students who have medium or low income is paying for a good college. A delay in tuition and suddenly you have a snowball in your hands. What do you do? Let it all get lost? Searching for solutions?
For those who don’t give up easily, here’s an opportunity to pay everything, with low interest rates and realistic installments: financing. In a simplified way, it happens when you get a total amount with a bank or a finance company and they divide this amount for you in installments.
Each one with its peculiarities, installments can be the best solution for those who do not have enough income to pay college tuition. Thus, the debt that used to be directly with the educational institution becomes with the bank, which, in turn, helps you with smaller installments that can be paid off during and/or after graduation.
Remembering that interest can increase according to the number of installments you want to pay. That is, if you want to pay off smaller installments, but consequently the number of them increases, this means that the interest must also increase. Therefore, be careful not to pay in interest much more than the amount requested.
Nobody wants to pay the equivalent of two or more degrees, right? With that in mind, we have separated information about some of the existing funding. Among them, student financing offered by the Federal Government — FIES.
How does FIES work?
Since the first half of 2018, the new FIES rules have come into force. Among the changes are interest rates, new income ranges to apply for financing and deadlines to start paying.
Calm down, let’s explain each one of them! The most interesting and worth mentioning is that students who already have a contract in progress can switch to the new FIES. In general, it works like this: the government, through the banks, pays for your college and after graduation you pay the amount back in installments.
During the study period, interest is paid, with installments charged every three months. For the most needy students, from now on, 100,000 places will be made available at zero interest. The other vacancies will have variable interest according to the bank, which may fall from the current 6.5% to at least 3.5%.
It used to be like this: after graduation, the installments continued quarterly for a year and a half — the so-called grace period. Now, if the student is employed, he starts paying as soon as he finishes the course, being able to pay in installments for up to 14 years.
In the case of unemployed students, dropouts or those who lose their jobs during the payment period, the installments will be charged at the minimum amount of the financing. For those who have a formal job, the amount will be deducted directly from the employee’s salary, through eSocial.
To obtain the FIES, the student must meet certain requirements:
- have a family income of less than 5 minimum wages;
- have scored at least 450 points on the Enem ;
- not to reset the writing of the Enem;
- register within the period indicated by the MEC .
With the new FIES, there will be 3 ways for students to apply: 100 thousand vacancies at zero interest for those with per capita income of up to 3 minimum wages. 150 thousand vacancies for those who live in the North, Northeast and Midwest regions and have a per capita income of up to 5 times the minimum wage. And finally, 60 thousand places for students from all regions of the country with per capita income of up to 5 minimum wages.
Who can apply for private funding?
We are already advancing from the beginning that anyone can apply for private financing, however, approval, or not, depends on the conditions required by the finance company or bank.
The advantage here lies in the fact that it does not have to fit into the essential requirements of FIES. The deadlines will also depend on the bank, but you can extend it to continue paying after college is over.
With increases in fees, interest and special conditions, banks such as Sicoob form partnerships with colleges. Thus, you can pay your semester in installments on the spot price of the course, among other facilities.
Scholarships and discounts can also be an alternative for you to not have debts after you get your degree, such as:
- scholarships with discounts that can reach up to 50% in monthly fees during the course;
- referral programs, where veteran academics can refer new students and get discounts on the amount paid for the monthly fee for each referral, upon enrollment;
- institutional discounts, with benefits for payments on time or in advance.
Why choose student financing?
Working like any other line of credit, student finance is like a loan. The difference is that the focus is on studies and the completion of a college by the service contractor.
Anyway, whether with FIES, or in banks and finance companies, the most important thing is to plan and calculate how much and for how long you can pay . The end result is to have an undergraduate degree in hand in a job market in which higher education has become a basic requirement in most sectors.