When all you're left is a loan

Bank loans are becoming an increasingly popular way of financing students through third level. All the major banks, including AIB, Bank of Ireland and Ulster Bank have special units dealing with student business. But remember, if as a student you want to take out a loan, your parents or guardian will have to stand guarantor. Interest rates vary so it's worth shopping around. AIB is offering a 10 per cent variable rate on all student loans. Bank of Ireland is currently charging students its basic lending rate of 11.5 per cent. At Ulster Bank interest-free overdrafts of up to £300 are available to full-time third-level students. The overdraft must be agreed before December 31st and will remain interest-free until next May 31st.

If you're a member of a credit union you may be able to borrow from this source to finance your way through college. Rates vary to a maximum of 1 per cent per month on the reducing loan balance. Some credit unions are charging as little as 9 per cent per annum.

Repayment schedules for bank loans also vary. Understandably the banks are reluctant to make large loans to cover the duration of a college course and they are usually negotiated on an annual basis. Repayment schedules too, vary. The credit unions like you to repay your loan on a regular, even monthly basis.

Some banks will allow you pay off your loan after graduation but many discourage this and prefer loans to be paid off annually - after you've hopefully made vast amounts on summer vacation work, for example.