Is it worth taking out an additional loan even with SU? Cost comparison

For students already receiving SU (Statens Uddannelsesstøtte) in Denmark, a common question arises: is it worthwhile to take out an additional loan to supplement expenses, study, or invest in courses and experiences outside of university?

Although SU offers basic financial support, many students face extra costs for housing, food, transportation, and leisure . Before making any decision, it is essential to analyze the costs, interest rates, payment terms, and future financial impacts.

1. SU and student loans: how they work

1.1 What is SU

• The SU is a state scholarship offered to students in Denmark.
• Can be basic ou complementary, depending on the type of course and age.
• It is paid monthly and usually covers essential expenses, but rarely all extra costs.

1.2 Additional loan

• The Danish government allows students to take additional student loans, called SU-lån.
• They can be used to:
  • Housing costs
  • Additional courses
  • Study trips
  • Investments in additional learning

💡 Tip: SU loans have relatively low interest rate and flexible payment terms, but they still represent debt that must be paid off after studies.

2. Advantages of taking out an additional loan even with SU

1. Greater financial flexibility
   • Allows you to cover unexpected expenses without compromising your daily routine.
2. Investment in academic experiences
   • Courses, exchanges or special materials can generate long-term benefits.
3. Relatively low interest rates
   • SU-lån offers lower rates than traditional bank loans.
4. Safer financial planning
   • It allows you to maintain reserves for emergencies or extra expenses, avoiding expensive credit card debt.

3. Disadvantages and risks

1. Debt accumulation
   • Even with low interest, the loan must be repaid in the future.
   • The higher the value, the greater the impact on the post-graduation budget.
2. Default risk
   • In case of delay, fees and negative impacts on the financial history may arise.
3. False sense of security
   • Having more money available can encourage superfluous expenses, increasing debt unnecessarily.

💡 Insight: It's essential to calculate how much you really need and avoid taking out a loan just "as a precaution".

4. Cost comparison: SU vs. SU + loan

💡 Insight: The larger the loan, the greater the financial impact after studies . It's crucial to plan the exact amount needed.

5. Strategies for making smart decisions

5.1 Calculate your actual expenses

• Make a detailed monthly budget, including housing, transportation, food, leisure and emergency.

5.2 Determine the required loan amount

• Take exactly what is missing, without exaggeration.
• Avoid accumulating debt “for safety”.

5.3 Compare with alternatives

• Part-time work or additional scholarships may reduce the need for borrowing.

5.4 Plan payment

• Know exactly how much will you pay per month after graduation.
• Use SU-lån simulators to calculate interest and repayment terms.

5.5 Consider long-term impact

• The more debt, the greater the effect on purchase of a car, apartment or future investments.

6. Practical examples

1. Student living in Copenhagen
   • SU covers partial rent, but transportation and food still generate a deficit of 2.000 DKK/month.
   • Additional loan of 2.000 DKK resolves deficit, but creates debt that will be repaid in up to 20 years, with low interest (~1–2%).
2. Student investing in academic exchange
   • SU covers basic expenses, but international course costs 15.000 DKK.
   • Additional loan allows participation, increasing career opportunities and financial return in the future.

💡 Insight: Strategic loans can be an investment in experience and learning , not just consumption.

7. Conclusion

Taking out additional loans even while receiving SU (Suitable for Suffering) can be advantageous or risky , depending on your financial profile, goals, and discipline.

• Advantages: coverage of extra expenses, investment in learning, low interest.
• Disadvantages: future debt, risk of default, unnecessary expenses.

💡 Strategic Summary:

1. Calculate actual expenses and determine the exact amount needed
2. Compare alternatives (jobs, scholarships, savings)
3. Plan future payments and interest
4. Use loan only for real need or strategic investment
5. Maintain financial discipline during and after your studies

Final message: Additional loans should be seen as a strategic tool , not as extra income. When well-planned, they can make your academic life easier and open up opportunities, but irresponsible use can lead to unnecessary debt.

About the author

Rafael Miller

Hi! I'm Rafael Miller, a credit analysis and banking market specialist. I dedicate my career to uncovering the inner workings of financial institutions to help people get the best rates and approvals on the market. Here on the blog, you'll find strategic guides, opportunity alerts, and a step-by-step process to mastering your credit score. Let's unlock your financial life!