Individual Education Loans The most popular type of education loan is the individual education loan. This type is meant for people who want to take up education by working full-time, or part-time, or perhaps, by studying at a distance. Individuals who wish to study for a short period of time may also borrow this type of loan. The repayment period usually varies from 3 to 5 years and after the repayment period, the loan is forgiven and the borrower is free to borrow the amount again, however, there is no restriction on the loans and the borrower has the freedom to go for any education loan as per his need and priorities.
The sources for getting the loans include: National Examinations Board National Skill Development Corporation (NSDC) Government Institutes of Technical Education (GITE) Some additional institutions where students are eligible to apply for a loan include: Scholarships/Scholarships up to Rs.10000 Government of India’s Post Matric Scholarship Coaching Centre Exams In addition to these, there are scholarships for engineering/medical/science students in rural areas and public sector institutions in the country. How to Apply for an Education Loan? There are two main ways for obtaining a loan. You may either apply online by going to the Direct School Admission’s website, using the loan eligibility criteria mentioned or contact your institute to apply.
If the loan is required immediately, it is advisable that you start the process as soon as you get admission to the college/university. However, in case the college/university has not been registered yet, then you can approach the colleges/universities concerned for registration. How do you apply for a loan? Apply to the college/university concerned by filling out an application form and providing the necessary details of the admission. Make sure you provide accurate and complete information.
If you want to study, make a career or further your studies, you may need a loan to pay for your education. It is essential to secure a loan as soon as possible as the loan amount will be used for your education only. So it is important to secure a loan in time. The loan amount will also be the responsibility of the borrower and he/she will need to pay interest. Your future income is not necessarily linked to the loan amount. In certain cases, the loan amount can be a huge sum of money. It can go up to about 40% of the income of the borrower. So if you don't have a high income, you don't have to take a loan. But, even with a high income, your monthly repayment will be limited. It is better to secure a loan to make your future secure.
Here is a lowdown of the educational loan, which one can easily apply for. 1. It can be a means to the next step in one's life. If you want to pursue higher education abroad, the education loan can help you get yourself registered to an international university or a professional training institution like a hospital, bank, etc. Your education loan helps you fulfill your dream of getting higher education abroad. 2. Education loan is an unsecured loan. Unlike a personal loan, an education loan is a secured loan. The EMI amount you pay will depend upon the number of installments, which are to be repaid. In other words, you will have to pay the EMI on every payment date. 3. It is a life-changing opportunity for students. Getting a student loan is a big deal.
Whether you are a refugee or a non-resident Indian (NRI), an education loan has provided a helping hand to you and given you the opportunity to go to a good school. I sincerely hope that this article helps you to take a step closer towards your education loan. About the Author, Henry Simons has been writing about finance and investing for several years. Besides appearing on Examiner.com.au, Henry also writes for PersonalInvestor, as well as the Financial Review, OzDay, and various personal finance websites.
Education loans are usually a new form of financial aid that was first introduced in the United States in the 1980s. They typically require a lot of paperwork and are in return offered lower interest rates. However, for students without a stable income, loans are a risky option. A national study estimates that more than 70% of students drop out of college because they cannot afford to repay their loans, especially if they do not plan to work in a high-income occupation. In addition, defaulting on a student loan can result in serious financial repercussions for the borrower and can significantly harm a borrower’s credit rating. The student loan market also has a relatively small size with outstanding loans in the United States amounting to nearly $1 trillion in 2017.
Your education loan is usually due within 15 to 30 years of your graduation, depending on the type of loan and the lender, and unless you don't qualify for any more federal loan assistance or attend school for longer than 10 years. How long does a student loan take to pay off? "An average loan that the Department of Education makes, takes 10 to 15 years to pay off," said Povilaitis. Should I consider private student loans if I don't qualify for federal loans? There is no easy answer to this one. "The main thing is to consider all options," said Chris Whitlow, executive vice president of student loans at FedLoan Servicing.