Education is an asset. Here are a few steps to get a student loan.
The first step is to find a financial institution or bank of of one’s preference. Their interest rates have to be checked. Banks usually ask for the offer letter of admission from the candidate. They verify it first. The standard of the course and the institution are both taken into consideration. A guarantor on behalf of the student is required if the initial parameters are met. A term insurance is then done in the candidate’s name.A term insurance provides high cover and the rate of premium is very low. It is done to ensure that in case of an untimely demise of the student, the loan can be paid back.
The bank provides costs of books, fees, computer, hostel etc. In case of a full time course, a payment holiday is given. The student can start paying back the loan after one year of completion of the course or after getting a job. The earliest is considered in this case. The repayment has to be made in form of equated monthly installments. No payment holiday is given in case of part time courses or executive courses. This payment holiday is termed as moratorium period. In India a student loan is available both for undergraduate and postgraduate studies.
Thus it is very easy to get a student loan. It is advisable to check the quality of the course and it’s job prospects. So if one has the determination to study, there is always a way out. The Indian government is trying to make norms and procedures of getting a student loan simpler. Hence things will become easier. Nothing is more valuable than education as it stays for a lifetime. Hope these steps will be helpful in securing a student loan.
By: Suddhadeb Chakraborti
Steps to Get a Student Loan
June 6th, 2010 by admin No comments »Tips on Reducing Student Loan Debt
June 5th, 2010 by admin No comments »
The student life is an exciting one and is full of amazing things. But spending a lot of money with all your wishes is also easy to do and you may find yourself with empty pockets. Plus, the taxes you have to pay are not small at all and sometimes many students have to take up one or three jobs just to make it through college. They even take up scrubbing pans kind of jobs just to make it through.
For this situation, the student loans were invented. These loans allow students to spend money that they do not have. The money has to be returned after graduation. And there is an interest rate too. Sometimes many fresh graduates find it hard, if not impossible to pay these loans.
But there are some ways in which you can reduce your debt. For example, you must keep your costs under control and always know your debt. Do not forget that you have a loan and you need to give it back. Sometimes it may be easy to forget all about it. There are even students that do not care to read the documents and they are just happy to have some money. But this is not wise and you must avoid that as much as possible. Monitor the credit history and the interest rate. You do not want to discover after graduation that you owe $70,000. That can be a shock.
Specific Resources
Consolidating your loan is one easy way of managing it. This means you will have a big chunk to pay and it is easier to track. If you have taken money from a private loaner or the bank, make sure to read all the documents and keep them at hand. Keep all the receipts and all the communication materials. If you can not organize yourself properly, ask for specialized help. For the federal loans, some of the documents are on the national websites.
Consolidation
This is really helpful if you want to pay a large amount at the end. This way you will not deal with a fast changing interest rate. You will use a lower rate instead. The federal loans normally have a rate of 8% and if you consolidate, it drops to 7% which can be significant for a big sum. Private institutions are consolidating the private loans. But the private companies will consolidate the loan taking the living conditions into consideration and the interest rate also.
By: Cristian Stan