Financing studies, a master's degree, or specialized training is one of the most common personal investments that requires turning to outside financing. There are several routes available, with different terms and purposes, worth comparing before deciding.
Dedicated study loans from certain lenders
Some banks offer financing lines specifically designed for studies, sometimes with somewhat more favorable terms than a generic personal loan (such as grace periods during the training, designed so you don't start repaying capital until you finish your studies and start earning income).
Loans tied to specific schools or universities
Many business schools and private universities have agreements with specific financial institutions to make financing their own programs easier, sometimes with preferential terms for their students, though it's still worth comparing these terms against other market alternatives before assuming they're automatically the most advantageous.
Scholarships and public aid: the first route to explore
Before turning to any financing, it's worth exhausting the route of scholarships and public study aid, both national and regional, which can cover all or part of the cost with no need for repayment, unlike any loan.
When a conventional personal loan may be the best option
If dedicated study lines don't offer genuinely better terms than a conventional personal loan (once you compare the full APR, not just the grace period terms), it may be more worthwhile to go directly for a generic personal loan, especially if you already have an established relationship with your regular bank that lets you negotiate better terms.
The grace period: an advantage to weigh carefully
A grace period during your studies (not paying capital, sometimes not even paying interest) can make financing much easier while you have no income of your own, but as explained in other articles about grace periods, this benefit has a cost: unpaid interest during that period can be capitalized, increasing the total outstanding debt once the grace period ends.
Calculate the expected return on training before taking on debt
Before taking on significant debt to finance training, it's worth realistically assessing the expected impact on your future income (salary improvement, access to new job opportunities), to make sure the cost of financing is reasonable against the expected benefit in the medium term.
Compare the total cost of the different alternatives
Our personal loan calculator lets you calculate the monthly installment and total cost of any financing alternative you're considering, including dedicated study lines, so you can properly compare before deciding.