Planning to get education loan? Tips to consider closely

New Delhi: Getting a good higher education is everyone’s dream. But with education costs rising every year, it is not always possible to cover the education cost with your savings or scholarships. 

In such cases, students are filling the gap by taking education loans. With so many options in the market and other complexities, it is often tough to choose the right option.

In the beginning, you must do well research of the course as well as of the institute you are opting for. After the research has been done it is important to assure that the institute you are considering is not blacklisted by any bank for loans. 

Interest rates are also considered by the loan amount, the larger the sum borrowed, the larger the payment period and lower the interest rates. However, short-term loans are heavy on the pocket.

In most student loans, your payment money is applied first to the interest, and then to the principal amount you have borrowed for your education. 

In case of late payments, late fee payments are considered first during the payments. 

You must evaluate in the starting how flexible the bank is in extending the payment duration. 

However, it is good to pay interest timely to avoid interest getting accumulated. Sometimes you may want flexibility on the moratorium as many students don’t get a job immediately after the completion of graduation.

Alongside tuition fees and accommodation and another cost that students need to consider when availing of loans is the indirect cost. Many banks don’t consider indirect costs in the loan. 

Opportunity costs must be considered whenever you are planning to take a loan because the interest paid on student loans is completely tax-deductible.


, International, ,

Post a Comment

Previous Post Next Post