Loans for university, how much do they agree?

More and more young people are also making use of university loans in Italy. In America they are widespread, but there is a risk that the accumulated debt is too heavy.

Due to the economic crisis and the significant reduction in the purchasing power of families, more and more students are applying for loans to finance their studies. This practice has been affirmed for years in the USA – where studies are much more expensive – while only recently it has been gaining ground in Europe and Italy. For young consumers looking for a credit offer to access studies, it is possible to compare the most convenient loans by taking care to select the options of the banks dedicated to the categories of under 30 and students.


Student debts

Student debts

Lately the American model, however, is showing the first potential flaws. The debts accumulated by students who have requested to take out personal loans, in fact, have grown exponentially and some see this as the risk of a bubble bursting. The New York section of the Federal Reserve has recently estimated the amount of this debt at one trillion, against which the default rate is also increasing.

In Italy the system is very different, also because the burden of studies and all related expenses is much smaller. However consumers association has calculated that it amounts to about 9 thousand dollars per capita per year, a figure that for many today is prohibitive and can require the intervention of banks with loans.


Formula of loans

student loans

The formula of loans is also different in our country, because instead of real disbursements of liquidity, they are rather openings of credit (of controlled credit lines, in short) contained in current accounts. The set of guarantees also varies: in our case, it is the university that acts as guarantor, based on an agreement with the credit institutions and with the students themselves, who must, for example, maintain a certain average.

Like all forms of consumer credit, however, this too deserves to be carefully evaluated, especially considering that the repayment begins at the end of the studies, a moment not particularly happy for Italian recent graduates struggling with the chronic shortage of work and precariousness.

Mortgages and loans for foreigners in Italy, Romanians first for requests

Obtaining a loan is an indispensable operation for many savers, especially for those belonging to the weaker groups such as temporary workers, students, young parents. In order to find an accessible credit offer for all types of consumers, one possibility is to compare the most advantageous loans of the moment in order to choose the most convenient one for everyone’s pocket.

The “Report on the demand for credit by Italian citizens” presented by the Lite Lending risk center investigated how high the degree of banking and financial integration of foreigners in Italy was. Among the results, the increase in the demand for loans and mortgages stands out, with different percentages according to the nationality of origin.


Submission of loan application

loan application

Even a fifth of last year’s total online and traditional loan applications were submitted by Romanian citizens (with over half a million applications), followed by Albanians and Moroccans (with 6.1% and 5.7% respectively).

Unexpectedly, the Chinese community only holds the twenty-seventh place in the ranking of requests for personal loans, despite its growing presence throughout the national territory.

The same goes for the list of entities that require real estate mortgages, with Romanians once again at the top of the ranking with 18% of total applications. In second and third place we find Albanians and Swiss, with 12 and 6% of requests.


Finalized loans 

Finalized loans 

Similar situation, at least for the first two communities mentioned in the ranking, which are reconfirmed at the top of the list also for finalized loans (24% of requests from Romanians and 7% from Albanians).

The figures relating to the average amount requested were also processed by Lite Lending: the Dutch came first with 58,387 dollars. Followed by the Spanish (on average $ 37,854), the Austrians ($ 36,138) and the Chinese ($ 25,123). This time we find the Romanians at the bottom of the ranking, together with Filipinos and Moroccans, with amounts less than 10,000 dollars on average.

With a comment on the results that emerged from the report, Stephen Larocchi, Sales & Marketing Director of Lite Lending, said that “the application for credit represents one of the main drivers for the social and economic integration of citizens from other countries”.