How to reduce the burden of Study Loans

Education is expensive especially for the ones who are aiming for higher education in a different country. Study loans are of big help to the students. Education loans for students are given by various banking and non-banking financial institutions. Study loans cover the college fees, library fees, the lab fees, traveling allowances, the dorm and the hostel charges. Even the costs of the materials required to complete the course are also covered.

Education loan for students are available at a lower interest rates of 12.75 % with a nominal processing fee of 1-2 % of the loan amount. Students loans help you preserve your family savings in the time of contingencies also you don’t need to borrow money from your friends and family. When you are opting for higher education in a foreign country you can look for a part time job or scholarships and grants by the university or the government. Education loan for students helps those individuals to build a good credit score which enables him or her to get a loan faster in future for business or any other purpose.

Availing for education loan is easy but while repayment the individual needs to be careful. The student needs to discuss the repayment options with his or her family and opt for the best suited option.

Here are a few tips to manage and shred the burden of education loan for students:

·        Plan a repayment strategy: Repayment of the study loan starts after the moratorium period or the holiday period. The student must have the repayment strategy before he or she starts paying the EMIs

·        Do not miss the EMIs: Skipping an EMI will create a bad credit score and will act as a hurdle when the person is applying for the loan in future. Hence, he or she should avoid being in the defaulters.

·        Start financial planning: Cut down unwanted expenses to save money. Go for grants and scholarships. When you plan for overseas education take into consideration about taking up a part time job so that you reduce the burden of repayment to an extent.

·        Concessions: Women who apply for concessions on the student loan can get 0.50 % off on the loan. Even a 0.5 percent discount can make difference in it.

·        Take care of the fluctuation rates:  The interest rate is the base rate which varies from bank to bank or company to company. When you go for floating rates take care of the fluctuations in the market.

·        Pay and earn: Look for a suitable part time job that allows you to study and earn as well. This will reduce the burden of the loan considerably from yours as well as your parent’s shoulders.

Students should resort to a sedentary life and sit with the family to plan the finance for the education. Any loan if repaid on time will not be a burden and will help you in building a good credit score. Also compare the loans on the online comparing websites to avail for the best possible options of Education Loan for students.

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