In the 21st century, higher education has become very expensive and is predicted to skyrocket even more. Most families cannot afford to pay for their child’s higher education due to the exorbitant tuition fees, accommodation costs, and other expenses. Students, who have the potential but lack the funds, cannot complete their higher education in a top-tier university like they deserve.
Choosing the Best Education Loan can be a bit tricky sometimes. Education loan companies try to entice the customer with offers and deals that can sometimes end up costing more. That is why we have put together 10 tips to get the best education loan:
- Choose the best course for you- Do not go with the flow. Choose the course that means something to you and will be easy for you to turn into a career. It is also important to choose the course that will help you pay off your Education Loan in the future.
- Decide the proper loan amount- Decide how much money you actually need. Take a look at the course fees, the tuition, accommodation costs, and other expenses required to complete the course. Calculate what you can pay from your savings, then take a loan for the remaining amount so you will not be in debt for a long time.
- Do proper research when it comes to interest rates- Do not be hasty with your decision. Do not choose the first lender that comes your way with attractive offers. Compare interest rates of different lenders and then choose the lender with the best interest rate for you.
- Opt for a longer tenure- A loan with a longer repayment period means lesser estimated monthly investments (EMIs). You can easily pay the monthly payment without burning a hole in your financial pocket.
- Pay during the moratorium period- A moratorium period is the grace period wherein you do not have to make payments on your loan. It is usually while the course is in session and a year after the course, or 6 months after employment. You do not have to make payments, but the interest will keep accumulating. Try paying off the loan during this period to lessen the burden in the future.
- Do not take the loan all at once- Banks or non-banking financial companies (NBFCs) charge interest on the amount disbursed. Therefore, it is more beneficial to take the loan amount in quarterly instalments to reduce the interest.
- Plan for repayment of the loan- You have to start budgeting as soon as you take the loan. Keep a record of your expenses and stick to that. Do not spend more than you need to, especially once you are employed. Cut the costs on things you do not need, and focus on repaying the loan as soon as possible so it does not affect your future plans.
We hope this article was helpful. Remember not to take hasty decisions and do your research. Good luck getting the best education loan for you!
Related Blog: Everything You Need to Consider Before You Take an Overseas Education Loan
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