As education costs continue to soar, students often struggle to cover college/school fees. Parents therefore invest their funds in various schemes such as mutual funds (MFs), fixed deposits and unit-linked insurance plans (ULIPs) so as to assist their children pursue higher studies both domestically and overseas. When this saving doesn’t suffice, an education loan becomes invaluable.
Education loans are a form of financial aid designed to cover college or university tuition and associated expenses for students. Most commonly offered through banks and credit unions, education loans may also be obtained from some private companies and the federal government. Loan terms and conditions differ widely, however most require you to be enrolled as a student as well as demonstrate financial need before being approved for one.
Students looking into education loans can use online EMI calculators to estimate how much their monthly payment will be. These EMI calculators use mathematical formulae that takes into account principal, interest rate and repayment duration before automatically calculating an estimated EMI amount based on these factors. They’re an easy and affordable way to find a loan tailored exactly to your needs – use one today!
When choosing a loan, it is essential to take the total costs associated with education and future earnings into account. Ask your school for a breakdown of tuition, living expenses and required fees before talking with other students in your field about starting salaries; compare multiple methods for paying college such as part-time work during the year or accepting work-study offers or enrolling at less expensive schools as well as searching for jobs offering tuition reimbursement programs.
The types of education loans available depend on both your federal aid eligibility and type of college you attend. The Direct Subsidized Loan program provides low-interest loans for undergraduate students who demonstrate financial need as determined by their school using information you provide on their FAFSA form, while Direct Unsubsidized Loans enable borrowers to borrow up to their school’s reported cost of attendance minus other forms of financial assistance they received – with interest accruing while in school and being added back onto principal when leaving school.
The Federal PLUS Loan program is intended to assist parents of dependent students and graduate/professional students cover the cost of education. Loan amounts do not depend on financial need; rather, their maximum value may reach up to your cost of attendance less any aid received minus other aid received. Interest accrues at all times and payments must be made monthly via installments or deferment or forbearance (interest continues accruing during deferment or forbearance).