Education loans make it so much easier to finance the cost of your further studies. Today, you should be able to find loans that offer 100% finance and cover all your education-related expenses. This allows you to forget about the costs and focus fully on your admission and your studies.
An education loan also offers amazing tax benefits that will help you save a lot of money every year! All this makes a student loan a really amazing option for aspirants, especially those who fall short on the financial front.
Nonetheless, since schooling advances are typically your first brush with obligation, there is a dependably edge for the mistake. Sometimes these errors can lead to minor disappointments, other times they can lead to financial losses. To ensure you do not have to deal with either, the following article will highlight some of the most common mistakes that students make when taking an education loan.
Not Comparing Before Borrowing Education Loan
Many students go with an education loan their parents suggest or with their trusted banking partner. However, one should always do their research before choosing a lender. Analyse rates, surveys, residencies, credit sums, and so forth prior to taking instruction in advance. This will ensure you get affordable, convenient and trustworthy finance solutions.
Not Using Educational Loan Calculator
Many students forget to use education loan calculators when applying for their education loans. This can result in rejected applications & haphazard repayment planning. To avoid this, you can use the eligibility calculator – it will tell you the loan amount you qualify for. Next, you can use an education loan EMI calculator. This will tell you the monthly instalments payable for your education loan and help you plan out the repayment process of your student loan.
Gaining an Abundance
Without a doubt, the qualification mini-computer will let you know the advance sum you meet all requirements for this probably won’t be the right advance add up to apply. You need to check your needs and apply for the education loan amount accordingly. If you borrow more than you need, it will mean that you are paying interest on a loan amount you do not need!
Not Perusing The Terms And Conditions
The fine print might not make for light reading, but it is very important to go through all the terms & conditions before signing. You should understand all the charges and workings of your educational loan. This will ensure you are not blindsided by any hidden costs or clauses.
Not Considering Prepayments
Once you’ve got your education loan, it’s time to relax, right? Wrong! You should instead look for prepay the loan and get out of debt quicker. You can pick up some part-time work and repay the student loan even while you study. Once you get a job, you should use bonuses & appraisals to increase your EMIs and make part payments. This will decrease your exceptional equilibrium and guarantee you pay less interest on your educational loan.