Getting a higher education is a privilege. Even with the increasing costs of education, both in India and abroad, a significant number of students opt in for higher education. Taking a student education loan is one of the ways to meet the education costs.
A large number of lenders provide student education loans, for both education in India and abroad. Most of these loans provide loans for tuition and some also provide for living expenses.
5 things to consider before applying for a student education loan are:
1.Total cost of education:
By total cost of education, it is not only the cost of tuition, but living costs such as accommodation, food, local transport, that needs to be considered. If you take a student education loan only for the amount of tuition, you will have to pay living expenses and food expenses out of your own pocket. Along with this, another important point to consider is whether the lender will lend for the course you would like to study. Most lenders cover a wide variety of courses, but still, before you apply for the loan, it is better to check it once.
2. Rate of Interest and Loan sanctioned on education loan:
One of the most important considerations for an education loan is the education loan interest. The standard education loan interest varies between 8.5% to 15%. Different lenders have different rates. It is best to take one with a reasonable interest rate.
Not all banks give out loans for the entire tuition cost or cost of education. While finding a lender, it is important to check the loan amount they usually disburse for a student education loan. That way, if one lender provides a loan for partial amount, it means you need to raise the balance funds through a second education loan.
3. Repayment period:
Most education loans have a concept of moratorium, which means a certain amount of time before which repayment starts. For example, if you avail a student education loan and the moratorium is 36 months, it means repayments will not start for 36 months after the loan is disbursed.
4. Scholarships and other benefits from the University:
Most foreign Universities have provisions for scholarships. There are a lot of such scholarship programs which meet a part or full tuition cost. While applying for a student education loan, it is important to see if you qualify for a scholarship.
5. Government schemes and loans:
The Central Government provides a subsidy scheme where students who are from poorer backgrounds get subsidy on education loan interest. This scheme is only open for student whose parents have a gross income of less than Rs. 4.5 lakhs.
A large number of lenders provide student education loans, for both education in India and abroad. Most of these loans provide loans for tuition and some also provide for living expenses.
5 things to consider before applying for a student education loan are:
1.Total cost of education:
By total cost of education, it is not only the cost of tuition, but living costs such as accommodation, food, local transport, that needs to be considered. If you take a student education loan only for the amount of tuition, you will have to pay living expenses and food expenses out of your own pocket. Along with this, another important point to consider is whether the lender will lend for the course you would like to study. Most lenders cover a wide variety of courses, but still, before you apply for the loan, it is better to check it once.
2. Rate of Interest and Loan sanctioned on education loan:
One of the most important considerations for an education loan is the education loan interest. The standard education loan interest varies between 8.5% to 15%. Different lenders have different rates. It is best to take one with a reasonable interest rate.
Not all banks give out loans for the entire tuition cost or cost of education. While finding a lender, it is important to check the loan amount they usually disburse for a student education loan. That way, if one lender provides a loan for partial amount, it means you need to raise the balance funds through a second education loan.
3. Repayment period:
Most education loans have a concept of moratorium, which means a certain amount of time before which repayment starts. For example, if you avail a student education loan and the moratorium is 36 months, it means repayments will not start for 36 months after the loan is disbursed.
4. Scholarships and other benefits from the University:
Most foreign Universities have provisions for scholarships. There are a lot of such scholarship programs which meet a part or full tuition cost. While applying for a student education loan, it is important to see if you qualify for a scholarship.
5. Government schemes and loans:
The Central Government provides a subsidy scheme where students who are from poorer backgrounds get subsidy on education loan interest. This scheme is only open for student whose parents have a gross income of less than Rs. 4.5 lakhs.
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