We recently became aware of the Government’s interest in unblocking the credit line for university students with Mutual guarantee for the periods 2017 to 2020. They will be € 20 million per year, which should start to be approved from February after several years in which this facility was closed.
Being available again does not mean that it should be the best alternative. In fact, mutual guarantee loans have reduced rates and interesting repayment terms, serving as direct stimulus to the Government. However, it is still a new loan that has to be repaid (and is practically impossible to renegotiate in case of need).
We can not forget the experience of other countries. For example, in the USA, young people finish their degrees with very penalizing levels of indebtedness.
University investment has a guaranteed intellectual return. Already the financial return is not so guaranteed, especially in courses with less demand or market potential. In the short run it is further pressured by youth unemployment rates and average maturity levels.
Therefore, we suggest that you make a very rigorous and prudent analysis. Which assesses not only your financial and family conditions but also the market potential of the competency you will acquire. The University’s prestige and other factors that may affect its employability in the future (universities and courses are not all the same!). This is because the existence of a financing facility does not imply that this is the best option to take (it is enough to analyze the data of over-indebtedness in Portugal).
If nothing has changed (for the time being we do not have details yet) we suggest you read the article we first wrote about the Student Loan System. Find out if this credit can do well for your career. Many times we have a dream but it turns out to be quite complicated to have to pay a benefit when we do not have a fixed income (or when we do not have a job).