State-guaranteed student loan
Verified 26 August 2022 - Directorate for Legal and Administrative Information (Prime Minister)
The government-guaranteed student loan is a loan created to help young people under the age of 28 finance their education. To benefit from it, you must be a French national or a national of a European Economic Area (EEA) countries. The request is made to the banks that are partners in the operation. The loan must be repaid with interest, but repayment can be deferred until the end of the studies. The banks grant the loans within the budget allocated by the State.
The government-backed student loan allows you to borrow money to finance your education, without having to provide a bond or proof of income to the bank.
the number of government-guaranteed student loans granted per year is limited.
To qualify for a government-guaranteed student loan, you must meet all of the following conditions:
- To be registered in an institution in France to prepare a competition or a diploma of French higher education (university diploma, BTS, business school, engineering school...)
- Be of age and under 28 years of age at the date of conclusion of the loan (an emancipated minor over 16 years of age may also apply for a student loan guaranteed by the State)
- Have French nationality or that of a Member State of the European Economic Area (EEA), on condition that you have resided in France continuously for at least 5 years
There is no cap on resources.
You don't need to put up a bond or have a relative as a guarantor.
Indeed, the State provides its guarantee to the partner banks, via the Banque Publique d'Investissement (Bpifrance).
But you have to repay the loan, because the state guarantee will only come into play if the bank proves that it has tried unsuccessfully to recover its loan claim. Moreover, the State guarantee covers only 70% of the loan amount.
You must apply directly to one of the partner banks:
- Postal Bank
- People'S Bank
- BFCOI (mainly in Reunion and Mayotte)
- Savings Banks
- Crédit Agricole
- Mutual Credit
- General business
You don't necessarily have to be a customer of the institution you're applying to, but some banks will not accept applications from outside applicants.
Moreover, the number of loans granted by banks is linked to the credit envelope that the State grants to them each year. When that credit is exhausted in a year, the banks stop providing the guaranteed student loans. So consider applying as soon as possible.
the bank can refuse you the loan if it feels you can never repay, even with the government guarantee.
The student loan is a consumer credit and the partner banks must comply with the rules applicable to this type of credit.
Insurance is not required for a government-guaranteed student loan, but you can choose to take out insurance. In this case, you are free to take the insurance offered by the bank or choose another insurance.
The amount of the loan depends on the bank granting it and can reach €20,000.
The interest rate is set freely by the partner bank.
The duration of the loan is determined by the bank granting it with a minimum of 2 years.
the loan agreement must provide for the possibility of early repayment and the conditions under which such repayment may be made.
You have the right to postpone the repayment of the loan (principal and interest) until the end of your studies.
However, you can decide to pay the interest during your studies.
This choice must be made at the time of the subscription of the loan.
If you decide to take out insurance, you have to pay the monthly insurance payments during your studies.
- Consumer Code: Articles L312-18 to L312-27Formation of the credit agreement
- Consumer Code: Articles L312-31 to L312-33Execution of the credit agreement
- Consumer Code: Articles L312-34 to L312-35Early repayment
- Consumer Code: Articles L312-36 to L312-40Borrower's default
- Consumer Code: Articles L312-57 to L312-83Revolving credit
- Consumer Code: Article L312-71
- Consumer credit: personal loanService-Public.fr
- Annual specific allowance for students in difficultyService-Public.fr
- Student loan guaranteeBpifrance
- State-guaranteed student loanInfoservice Savings Bank Insurance