Have you obtained your high school diploma and are you going to study? Congratulations! Following a study is a wonderful investment for your future, but … in the meantime, it can be difficult as a student to keep your head above water. To make it financially easier for you, you can make use of the right to study finance while following your studies. You can request this student loan from the Education Executive Agency, or MIO. However, things have changed in recent years in that regard. For example, the basic grant for new Bachelor’s and Master’s students in higher education has been abolished per school year 2015-2016. You can then only apply for an additional grant and / or loan.
Borrowing from MIO: smart or not?
Whether you borrow money from MIO, from a private individual or from another institution: always ask yourself to what extent you actually need this loan. Borrowing an amount once to pay for a large, unexpected expense (such as a broken washing machine or an expensive repair to your car) is not such a problem in itself, but the moment you have to borrow structurally in order to support yourself ( groceries, insurance and your rent), it might be time to review your income and expenses. Often you will see that with a few small adjustments you can already cut back, or ensure that your income increases. If you still cannot manage financially, borrowing from MIO can be a good solution, since interest and conditions are often more favorable at MIO than at other financial institutions.
How much do you need?
If you want to know how much money you need to borrow from MIO, then of course you first have to know how much comes in total. This includes all income, such as:
- the basic grant;
- the supplementary grant;
- alimony or other contribution from your parents;
- the income that you have from a part-time job or perhaps from your own company (you);
- allowances, such as housing allowance and / or care allowance;
- money that you have in your savings account.
If you receive a little extra once, for example because you are entitled to holiday pay for your side job or maybe even a thirteenth month, try to put this money aside as much as possible for lean times. It is more convenient to teach yourself to save than to teach yourself to spend too much money.
It is also important to also look at the amounts you spend: is that subscription to the gym really necessary? Jogging in the park will improve your fitness as well, and it won’t cost you a cent. For fun, you can see who wants to do sports and run with you. This also applies to food: eating together is not only much more enjoyable, but usually also cheaper. By dealing creatively with this, you can often save a lot of money. Money that you do not have to borrow from MIO as a result. The advantage of this is that you will not have to pay back as much in the future. Because even though MIO has favorable conditions: borrowing money always costs money.