Student Financing: How It Works and How to Get Yours

THE student financing It is an essential alternative for thousands of students who wish to enter higher education, but do not have sufficient financial resources to cover the cost of tuition fees.

With different programs and options available in Brazil, this modality allows students to start their degree and pay the fees in installments, often with reduced interest or even no interest.

In this article, we will cover How student financing works, what are the main options in Brazil and how to apply for yours.

What is Student Finance?

THE student financing is a loan granted to students to finance their studies at private higher education institutions. Payment can be made during or after completion of the course, depending on the type of financing chosen. Some modalities offer facilitated conditions, with low interest and extended terms to pay off the financed amount.

This resource is essential to expand access to higher education, allowing low-income students can study without compromising their immediate financial conditions.

Main Types of Student Financing in Brazil

Currently, in Brazil, there are some options for student financing which vary according to the student's profile and the educational institution. Below, we highlight the main alternatives available.

1. FIES (Student Financing Fund)

THE FIES is a federal government program aimed at students of private institutions. It allows you to finance courses with reduced interest rates or even zero interest, depending on the student's family income.

How does FIES work?

• Requirements: To register for FIES, the student must have participated in the Enem (National High School Exam) and obtained a minimum required score.
• Income criteria: The program is intended for students with per capita family income of up to three minimum wages.
• Payment: Financing may cover partially or fully the monthly fee. The student pays small installments during the course and only begins to pay off the outstanding balance after graduation.
• Enrollment: Registration must be done through the official website of FIES, within the deadlines established by the government.

2. P-FIES (Private Student Financing Program)

THE P-FIES is a different version of FIES, aimed at students with family income greater than three minimum wages. This financing is granted by private banks, in partnership with the federal government.

• Interest rates: P-FIES does not have zero interest like traditional FIES. Rates vary depending on the bank chosen.
• Payment terms: The student must check with the financial institution what the specific installment conditions are.

3. Private University Credit

In addition to government options, many financial institutions offer private student financing. Banks like Santander, Bradesco and Itau provide specific lines of credit for students.

• Advantages: Flexibility in payment terms and possibility of financing any course, even those who are not registered with FIES.
• Disadvantages: Higher interest rates compared to traditional FIES.

4. Funding Offered by Universities

Many private universities offer their own degree programs. student financing, allowing the student to pay part of the amount while studying and the rest after graduation.

• Example: Some institutions have programs like TO BE VALUE, which allows extended installments with reduced interest.

How to Get Student Finance?

If you wish get student finance, follow the steps below:

1. Search Available Options

Before choosing the type of student financing, analyze the criteria required by each program.

• If your income is low, the FIES may be the best choice.
• If you cannot participate in FIES, consider the P-FIES or private credit.
• If the university offers its own financing, evaluate the conditions and rates.

2. Check if your Course and College are Eligible

Not all institutions participate in student finance programs. Check if the college and the desired course are accredited in FIES or private programs.

3. Register for the Chosen Program

Each financing has its own application process:

• FIES: Registration through the official government portal.
• P-FIES and Private Credit: Contacting banks and filling out forms.
• University Funding: Registration directly at the educational institution.

4. Analyze the Contract Conditions

Before signing the contract student financing, please read the terms carefully:

• Interest rates
• Payment terms
• Guarantor requirements (if any)
• Consequences in case of default

Advantages and Disadvantages of Student Financing

Advantages

Access to higher education even without immediate financial conditions.
Easy installments, allowing the student to pay after graduating.
Some options have reduced or even zero interest.

Disadvantages

Long-term debt, as the amount must be paid even after graduation.
Bureaucracy in approval, especially for public programs.
❌ In some private modalities, high interest can make financing more expensive.

Alternatives to Student Financing

If you don't want to take out student loans, there are other options to pay for your degree:

• Scholarships: Programs like ProUni offer full and partial scholarships.
• Work and study: Many universities offer scholarships for monitoring or internship.
• Distance Education (EAD): Online courses usually have more affordable monthly fees.

The decision to hire a student financing must be well analyzed. If you have financial difficulties and want to guarantee your professional future, this may be a viable alternative. However, it is essential plan your payment well and choose the best option according to your profile.

If possible, seek other forms of assistance, such as scholarships or internship programs, to reduce the need for long-term financing.

The most important thing is invest in your education, as it can open doors to a promising future. With the right options, you can start your degree with more peace of mind and without compromising your financial stability.