Understanding Grants and Loans｜Which Student Loan is Better? PROMISE Helps You to Pay off Credit Card Debt at Ease

Do you find it is more difficult to cope with financial challenges once becoming a tertiary student? Tuition fees, accommodation fees, daily expenses can all create pressure for tertiary students and lead to financial difficulties, even you have a part time job. Therefore, student loan has become an important tool for tertiary students to relieve financial stress. There are many types of student loans, do you know which one will be more suitable for you? What is the purpose of each student funding and loan scheme? Can student loan be used to pay off credit card debt? Let's take a look on this article for more details.

Grants vs. Loans – Understanding Various Types of Student Funding and Loan Schemes

Many students may first exposed to the student financial assistance schemes administered by the Student Finance Office under the Working Family and Student Financial Assistance Agency (WFSFAA). Currently, the government's student financial assistance schemes mainly include grants and loans which are different from each other.

Grants: Depending on applicant's family economic situation and may provide full financial assistance without repayment required. They are used for paying tuition fees, study-related expenses, and compulsory student union fees, but not for paying off credit card debt. Two types of grants are listed as below:

1. Tertiary Student Finance Scheme (TSFS):
   For eligible full-time students enrolled in publicly funded tertiary programs, including local universities, Hong Kong Academy for Performing Arts, Prince Philip Dental Hospital, Chinese Culinary Institute, International Culinary Institute, Hong Kong Design Institute, etc., applicants need to undergo family income and asset review.
2. Financial Assistance Scheme for Post-secondary Students (FASP):
   For students aged 30 or below who enroll in self-financed, locally accredited sub-degree, higher diploma, or degree programs, while applicants need to undergo family income and asset review.

Loans: Repayment is required, with payable interest and administrative fees. Different schemes have various eligibility criteria and details correspondingly. Among these, there are non-means-tested loans, applicants do not need to undergo financial assessment test. These include the following three types:

1. Non-means-tested Loan Scheme for Full-time Tertiary Students (NLSFT):
   Aims at helping eligible students of full-time accredited programs to pay tuition fees. Interest accrues from disbursement date, including during study periods. Administrative fees apply.
2. Non-means-tested Loan Scheme for Post-secondary Students (NLSPS):
   Aims at helping students of self-financed and locally accredited sub-degree, higher diploma, or degree programs to pay tuition fees. Interest accrues from disbursement date. Administrative fees apply.
3. Extended Non-means-tested Loan Scheme (ENLS):
   Aims at helping eligible students of specified tertiary/continuing education courses in Hong Kong to pay tuition fees.

Before applying for the student financial assistance scheme, applicants should understand the features of each scheme, such as interest rates and repayment terms. It is important to note the interest rate for non-means-tested loan schemes can change over time, and may cause a tighten budget. Beware of the application deadline and submit required documents timely. If means test is required, it is advised to prepare all necessary documents of your family members in advance as you cannot apply after deadline.

Personal Loan for Tertiary Student: Higher Flexibility, Faster Fund Transfer. You can Use the Fund for Paying off Credit Card Debt Too!

Government Loan Scheme:
Interest rate is generally lower and provide flexibility for repayment. However, the application process is complicated and approval process is relatively slow, while the applicants may need to prepare and submit various supporting documents. Applicants need to pay attention to the application deadline too. The purpose of fund is limited to tuition fee and educational expenditures, which is not intended for paying off credit card debt.

Personal Loan for Tertiary Student
Money lenders like PROMISE offer loans with faster approval and higher flexibility. Application process is simple, applicants can apply loan online 24/7, funds will then be transferred instantly once the loan is approved^{^}.

Tip: Can Student Loans be Used to Pay off Credit Card Debt?
The government loan scheme is not meant to pay off daily expenses or credit card debt. If you have an urgent need of debt clearance, you may consider to apply for a personal loan. In general, there is no limitation on the usage of personal loan, you can use the fund for paying tuition fees and other expenses or repaying debt!

PROMISE Tertiary Student Loan – 24-Hour Online Instant Approval^⦿

PROMISE understands the financial challenges that tertiary students may face, including urgent need for credit card debt clearance. Applying for PROMISE Tertiary Student Loan requires only HKID, mobile number, and student ID^#. Applicants do not need to show up in person^*, the application can be completed online.

• No income proof required^#: Tertiary students with part time job can apply online with HKID, student ID, and mobile number only.
• Online instant approval^⦿: Loan application, agreement signing, and fund transfer can all be completed online. Funds will be transferred instantly with FPS once personal loan is approved^{^}, helping you to pay off credit card debt before deadline.
• Flexible repayment: Repayment period varies from 3 to 84 months. No additional costs (e.g. penalty, handling fee, etc.) if you make extra repayments or clear the loan in advance.

Except earning from part time income, it is crucial for tertiary students to maintain financial flexibility, especially when you are facing credit card debt problem. Choosing a suitable personal loan may be helpful for you to relieve your financial stress.