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The thrill of studying abroad – a new culture, diverse experiences, and a global perspective – is undeniable. However, the financial hurdles associated with international education can be daunting. Between tuition fees, living expenses, and travel costs, securing funding becomes critical in realizing your dream. This blog is your guide to navigating the education loan application process. We'll focus on EduFund loans as the ultimate tool for accessing affordable financing for your study abroad adventure. We'll demystify the loan application maze and highlight the streamlined and user-friendly approach offered by EduFund loans. Understanding Education Loan Applications An education loan application form is your official request for financial assistance to pursue your studies abroad. Think of it as a roadmap for the lender, providing them with the necessary details to assess your eligibility and loan requirements. The application form typically includes sections for your personal details, academic background, course specifics, financial information, and sometimes details about a guarantor or co-signer (if applicable). Remember, accuracy and completeness are paramount. Double-check all information before submitting your application to avoid delays or potential rejection. Important Documents for Education Loan Application You must gather and submit specific documents to complete your education loan application successfully. Here's a list of some essential ones (requirements may vary slightly depending on the lender): Completed application form: This is the foundation, so ensure all details are accurate and truthful. Academic transcripts and certificates: Proof of your academic achievements is crucial. Proof of admission to a foreign university: An official acceptance letter demonstrates your confirmed enrollment. Proof of identity and residence: Valid documents like passports or utility bills verify your identity and address. Financial documents: Income tax returns, bank statements, or sponsor letters demonstrate your financial situation. Guarantor/co-signer documents (if applicable): If required, provide documents proving your guarantor's financial strength. EduFund Advantage: A Streamlined Approach to Education Loan Applications Feeling overwhelmed by the paperwork and complexities of a traditional loan application? EduFund loans offer a refreshing solution! Here's why EduFund stands out: Simplified Online Application: Ditch the paper forms! EduFund boasts a user-friendly online application platform that seamlessly guides you through the process. Streamlined Document Submission: No more scrambling for physical copies. Upload all required documents securely through the EduFund platform. Fast and Efficient Verification: EduFund utilizes technology to expedite document verification, ensuring a quicker application turnaround. Dedicated Customer Support: Have questions or need guidance? EduFund's dedicated customer support team can assist you throughout the application process. A Step-by-Step Guide to Applying for an EduFund Loan Ready to embark on your journey with EduFund loans? Here's a step-by-step guide to make the application process smooth and efficient: Visit the EduFund website: Navigate to the "Apply Now" section or the designated application page. Fill out the Online Application: Provide accurate and complete details about yourself, your academic background, and the program you'll be pursuing. Upload Required Documents: Utilize the secure upload feature to submit all necessary documents per the checklist. Submit Your Application: Once you've reviewed and confirmed all information, submit your application electronically. You'll receive a confirmation email. Await Loan Approval and Discuss Terms: EduFund will review your application and notify you of the approval decision. Upon approval, you can discuss loan terms and interest rates before finalizing the agreement.

The ever-increasing cost of education makes student loans a reality for many aspiring students. However, navigating the complexities of securing a loan can be overwhelming, especially when it comes to the topic of collateral. This blog aims to untangle the confusion surrounding collateral requirements for education loans and empower you to make informed decisions. Secured vs. Unsecured Education Loans: Understanding the Difference Imagine a loan as a promise to repay borrowed money. In a secured education loan, you offer collateral (an asset like property or a vehicle) as security. If you fail to repay the loan, the lender can seize this collateral to recoup their losses. Secured loans typically come with lower interest rates and allow you to borrow larger sums. However, the risk of losing your valuable asset is a significant drawback. On the other hand, unsecured education loans don't require collateral. This might sound ideal, but lenders compensate for the lack of security by charging higher interest rates and having stricter eligibility requirements. Generally, a strong credit score increases your chances of securing an unsecured loan. Factors Affecting Collateral Requirements Several factors influence whether a lender requires collateral for your education loan. Your credit score plays a crucial role. A limited credit history or a low credit score may make it more likely for lenders to seek the security of collateral. Here's another factor: guarantors or co-signers. These are individuals who essentially agree to take responsibility for your loan repayment if you default. Having a co-signer with a strong financial standing can improve your chances of getting an unsecured loan or a secured loan with a more favorable interest rate. Lenders may also consider the type of course you're pursuing, the loan amount you're requesting, and your academic record when deciding on collateral requirements. When is Collateral Typically Required for Education Loans? Let's look at some real-life situations where collateral is more likely to be a requirement: Loans for Large Amounts: If you need a substantial loan to cover your education expenses, lenders may seek additional security in the form of collateral to minimize their risk. Low Credit Score: Lenders might require collateral to offset the perceived higher risk of non-repayment if you have a limited credit history or a low credit score. Unestablished Career: Students without a stable job history may find it challenging to secure an unsecured loan, especially for a large amount. A co-signer or collateral can strengthen your application in such cases. When Can You Get an Unsecured Loan to Study Abroad? There are situations where unsecured loans are a viable option: Loans for Smaller Amounts: For smaller loan amounts, lenders might be more flexible and offer unsecured options with competitive interest rates. Strong Credit Score & Co-signer: A good credit score demonstrates your financial responsibility and increases your chances of securing an unsecured loan. A co-signer with a strong financial background can further strengthen your application. Specific Loan Programs: Government or scholarship-based loan programs may offer unsecured options with lower interest rates compared to private lenders. Additional Factors to Consider When Choosing an Education Loan Remember, collateral is just one piece of the puzzle when choosing an education loan. It's crucial to compare interest rates (fixed vs. variable) offered by different lenders. Fixed interest rates provide stability in your monthly payments, while variable rates can fluctuate over time. Don't neglect other loan features like repayment terms, processing fees, and prepayment options. These factors can significantly impact your overall loan experience. It's also wise to research scholarships, grants, and financial aid programs offered by your institution or government agencies. Reducing your reliance on loans can lessen your financial burden.

Education loans have emerged as a much-needed motivation for students who want to pursue higher studies but are constrained by financial issues. Even students who could afford their higher education on their own now opt to take out student loans. This is because an education loan may enable you to maintain your own funds for unforeseen expenses, as well as enable you to receive tax benefits and raise your CIBIL score. Also Read: Tips to Get Education Loans for Abroad Studies What is the moratorium period for an education loan? The duration of a borrower's exemption from loan repayment is known as the moratorium period. Loans taken out for education are subject to this repayment holiday. All government bank education loan programs are required by the Reserve Bank of India to provide a moratorium or grace period on loan repayment. Like other loans, an education loan has an interest rate attached to it. This interest starts to accrue the first month after the student loan is approved. However, government banks are required to grant borrowers of education loans a repayment holiday. This indicates that during the designated moratorium time, students are not required to pay back the interest. It should be kept in mind that during this time, the interest is not waived but simply deferred. When loan repayment begins, students will have to pay this accrued interest (split equally). Despite the fact that each bank has its own terms and conditions, most financial institutions offer a moratorium period of one year after the completion of the program. https://www.youtube.com/watch?v=fufyFB9aMQI&t=1s How do the grace period and moratorium period differ? A grace period and a moratorium period are frequently confused in the market. It is critical to understand that a grace period is a predetermined period after payment is past due during which, the payment may be made without incurring a penalty. On the other hand, a borrower is not required to make payments during a moratorium period. Also Read: Is Collateral Compulsory for Education Loans? What are the benefits of an education loan moratorium period? Let's examine some of the benefits of the repayment holiday. With an education loan, the student will have less financial stress while they are studying. The student can focus on their academics without having to worry about money during this grace period because the bank does not impose any penalties for non-repayment. After completing the program, individuals can focus all of their efforts on finding a career that suits them within a year of graduation without having to worry about debt payback for a year. Throughout this time without repayment, the student's credit score is unaffected. During the moratorium period, the parents, who are typically co-borrowers of student loans, are not required to make any repayments. Also Read: Common mistakes when taking an education loan Is there a downside to the moratorium period? The moratorium term on student loans, like every coin, has both advantages and disadvantages. As was previously noted, the interest is delayed rather than waived during this time. As a result, it basically accumulates and the student is then required to pay it back. Due to the absence of payments during this period, the loan duration may somewhat lengthen. Some financial institutions impose simple interest throughout the study period and compound interest during the moratorium period, which raises the overall amount of interest that has accrued. Despite its many benefits, the most straightforward approach to get around the moratorium periods’ drawbacks is to begin payments as soon as you can. Perhaps, even while you're still in school with the help of a part-time job. https://www.youtube.com/watch?v=TNVvKy460dQ What is the moratorium period for the various Indian banks? Lenders have different moratorium periods. On the basis of the different types of lenders, we may broadly divide this period. The moratorium of various lenders is as follows: Public-sector Banks: Government banks often have a moratorium period of the course period plus six months. During this moratorium, there are no payments that students are required to make. Private-sector Banks: In private banks, the moratorium term is often the course period plus 12 months. However, throughout this moratorium time, the borrower must pay a certain sum of simple interest. After the moratorium period, installments beginning with a portion of the principal amount will be made. NBFCs: Typically, an NBFC's moratorium period is equal to the course period plus an additional 12 months. However, during this moratorium time, the borrower must pay a simple interest sum or some partial interest (determined and disclosed throughout the loan process). After the moratorium period, installments that include some of the principal amounts begin. https://www.youtube.com/shorts/uPGJr3BiXpI Conclusion A moratorium period is a great way to reduce the pressure of repayment on a student while studying. It's crucial to remember that this time period does not come with interest. As a result, the interest charged on the remaining balance of an education loan will be lower the earlier a student begins loan repayment. If there is any confusion regarding these financial issues or if any information or guidance is required, our team of financial advisors is constantly available for you. FAQs How many months is the moratorium period? It is usually 6 months to one year, depending on the candidate's profile and the bank's moratorium criteria. Is moratorium period good or bad? The moratorium period is a period of relief for the student and their parents. It allows them to figure out a way to repay the loan and gives the student enough time to become an earning member of the society. This period is not interest free so it is recommended that the student starts making some repayments towards their interest so that they are not burdened when the moratorium period ends. Is interest paid during moratorium period? Yes, interest is charged during moratorium period and the student can repay it as well. However, they are not obligated to pay interest during this period. Can I pay my education loan during the moratorium period? You can pay interest on your education loan during the moratorium period. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Securing an education loan for abroad studies opens the door to a world of academic and personal growth. Let’s break down the process for getting educational loans for abroad studies and find out the eligibility criteria, documents needed, how to get an education loan, and much more. Education Loans for Abroad Studies In an increasingly interconnected world, pursuing education abroad has evolved from being a mere aspiration to a transformative experience. The exposure to diverse cultures, cutting-edge academic programs, and unparalleled opportunities for personal growth has made international education a sought-after endeavour. However, the costs associated with studying abroad can be overwhelming. This is where investment in education loans comes to the rescue, acting as a bridge between dreams and reality. https://www.youtube.com/watch?v=4gTQkdePOWM Are you eligible to get a study loan abroad? To be eligible, applicants often need to meet certain requirements that the bank has set. For instance, if you are applying for a study loan to study abroad from India then here are the basic eligibility criteria that you need to meet. The applicant must be 16 years old and an Indian citizen Co-applicants must be an Indian citizen Ability to offer collateral for certain cases Co-borrower(s) must have a bank account in any bank in India with cheque facilities and a good credit history. Confirmed admission to the colleges before disbursement. Admission Confirmation: Having an admission offer from a recognized foreign institution is a prerequisite for applying for an education loan. The institution's reputation and the chosen course play a role in determining loan approval. Co-Applicant/ Guarantor: Many lenders require a co-applicant, usually a parent or guardian, to share the responsibility of repaying the loan. The co-applicant's financial stability can influence the loan's terms. Collateral: Depending on the loan amount, lenders might ask for collateral as security. Property, fixed deposits, or other priceless assets can be used as collateral. Eligibility criteria differ on the basis of your nationality. Co-Applicant Education Loan Guide Read More How should you apply for an education loan abroad? Navigating the education loans for abroad studies application process can be overwhelming, given the multitude of options and procedural complexities. To get an education loan, you can visit public and private banks and international lenders, find out the interest rate and start the process with your chosen provider. Rather than visiting all the banks, you can opt for an education loan counselor. An educational loan counselor is an expert who serves as an intermediary between aspiring students and financial institutions, helping them find the best loan options tailored to their needs. They streamline the loan application process, help with documentation, and get your fast approval. Education loan counselors can help you save both time and effort. https://www.youtube.com/watch?v=fufyFB9aMQI Documents you need for an Education Loan When applying for an education loan, the documentation process is a crucial step. Commonly required documents you must have: Loan application form Passport-size photos PAN card and Aadhar card Indian passport (if you are going abroad) Marksheets for 10th, 12th & Graduation Entrance exam results (like IELTS, GMAT, GRE, TOEFL, etc.) Offer letter or a conditional admission letter (if received) Work experience proof (if any) In the case of self-employed co-applicant 8-month bank statements of savings & current account 2- years ITR statement Collateral documents (if needed) In the case of salaried co-applicant6-month bank statements of the salary account of the co-applicant2-year ITR / FORM 16 co-applicant3-month salary slips Collateral documents (if needed) How to use the Education Loan Calculator for abroad studies? An education loan calculator is a way to find out the monthly payments you will be making to close your student loan! An education loan for abroad studies is a huge responsibility, and the calculator helps you find out the EMIs you will potentially be repaying, the duration of repayment, and the total payable amount after adding the interest. It’s very easy to use and can help you determine the future EMIs on your loan. For instance, you decide to take a loan of Rs. 25,00,000 at an interest rate of 10%. The decided loan tenure is 10 years. If you put all these details in an educational loan calculator, it will tell you the exact EMI amount, which is Rs. 33,038, the total payable amount, that is Rs. 39,64,522 along with the payable interest amount (Rs. 14,64,522) on top of the principal amount of Rs. 25 lakhs. An education loan calculator is a powerful tool that helps you prepare for the future, let's gauge the estimated costs you will be repaying and helps you budget for it in advance. What is the interest rate of education loans abroad? The interest rate depends on many factors. The interest rate of education loans for abroad studies is determined by the bank, individual profile, co-applicant history, and whether it’s a secured or unsecured loan. If you are applying with EduFund, you can get low and attractive interest rates starting from 9% with the top loan providers like Prodigy Finance, IDFC First Bank, ICICI Bank, Axis Bank, and many more. Things to Know Before Choosing an Education Loan Selecting the right education loan requires a careful evaluation of several factors: Interest Rate: The interest rate significantly impacts the overall cost of the loan. For the best deal, compare the rates provided by several lenders. Repayment Tenure: Longer repayment tenures might result in lower monthly installments but higher overall interest payments. Choose a tenure that aligns with your financial plans. Processing Fees: Understand the processing fees associated with the loan application. Some lenders might have hidden charges that could affect your repayment burden. Tax Benefits: In some countries, education loan interest payments are eligible for tax deductions. Familiarize yourself with the tax implications of the loan. Prepayment Terms: Check if the lender allows prepayment without penalties. This can help you save on interest payments if you have the means to repay the loan early Higher interest rate of education loans for abroad:  While investing in education loans serves as a lifeline for many students aspiring to study overseas, the interest rates can vary significantly. Factors like the bank's policies, the applicant's credit history, and the loan type (secured or unsecured) play a role in determining the interest rate, exchange rate fluctuations, repayment challenges in foreign currency, and the global economic scenario. https://www.youtube.com/watch?v=TJ4qgFj46Uw Importance of selecting the right repayment plan Choosing the right repayment plan for your education loan is a critical decision that can significantly impact your financial well-being post-graduation. Financial institutions often offer various repayment options, such as fixed, variable, or income-based plans. Understanding the nuances of each plan and aligning it with your future income projections and financial goals can ensure a smoother repayment process and alleviate undue stress. Partnering with EduFund: Shaping a Bright Future for International Education Pursuing education abroad is a transformative experience that opens doors to academic and personal growth. However, the costs associated with international education and education loans for abroad studies can be daunting. Amidst this process, EduFund stands as a reliable partner, offering attractive interest rates and partnering with esteemed institutions to make the dream of studying abroad a reality. EduFund provides access to a range of loan providers, each with its own interest rate structures. Keeping in mind that lower interest rates can significantly reduce the long-term financial burden, applicants should strive to secure the best possible rate for their circumstances. With EduFund's support, students can embark on their educational journey confidently, knowing that their financial needs are well taken care of. FAQs Can I apply for a loan before receiving the admission offer? It's recommended to have an admission offer in hand before applying for a loan, as lenders often require it for processing. What's the typical loan repayment grace period after completing the course? What's the typical loan repayment grace period after completing the course? Does a good credit score essential for loan approval? While a good credit score can enhance your chances of approval, some lenders offer loans to students with co-applicants who have strong credit profiles. What happens if I'm unable to secure a job immediately after completing the course? Some lenders offer extended grace periods or flexible repayment options for students who face challenges in finding employment Can I get a loan for living expenses in addition to tuition fees? Some lenders do offer education loans that cover both tuition fees and living expenses. Check with the lender for specific terms. An education loan for abroad studies bridges the financial gap between your aspirations and the realization of international education. EduFund aims to help you bridge that gap by offering low and attractive interest rates on your education loan. EduFund connects you with India’s top lenders, helps you compare loan plans, and even get collateral-free education loans up to Rs. 1 crore!

Education loans to pay for your higher education overseas are common and effective; let's look at all the expenses under education loans to help you make the right choice. What are some expenses under education loans? Do education loans only help with tuition fees? Can education loans cover the cost of flights or help pay the living expenses?   Keep reading to find out the expenses under education loans.    One of the main issues facing the majority of Indian students who want to study abroad is how they would pay for their higher education. An education loan makes sure that all of the financial conditions for the application process for an education loan overseas are satisfied within the allotted time limit.  For the majority of students, the cost of an education loan in India for studying abroad is the main topic of conversation when it comes to financing higher education overseas. The information on this page is relevant to both secured and unsecured education loans in India for international studies.  https://www.youtube.com/watch?v=7Y0V6Z0lcJs&t=1s Costs of a typical course abroad for a student loan  One widespread misconception is that student loans do not fully cover the costs associated with studying abroad. This is untrue, though, as all educational loans, whether secured ones from government banks or unsecured ones from private lenders, cover the following list of costs that are essential to the educational process.  1. Student fees  One of the two main components of both forms of education loans in India for studying abroad is the tuition prices charged by foreign universities. An education loan in India for the international study is intended to assist students in covering their tuition costs. In India, all student loan repayments include tuition. Therefore, when deciding on the overall amount of your student loans, you should give top priority to covering your tuition costs.  2. Housing Costs  The term "factors" can refer to a wide range of things. The main living costs for a student include their rent or room and board, food, and costs for other daily necessities like transportation to and from school, a security deposit for housing, etc.  3. Medical Insurance  International students are frequently required to obtain health insurance by many foreign universities. This specific cost is covered by an education loan in India for studying abroad as it is one of the prerequisites for studying abroad for many students. Therefore, while applying for an education loan, health insurance can also be taken into account.  https://www.youtube.com/watch?v=4gTQkdePOWM 4. Flight Tickets  Another significant price covered by an education loan when applying for one overseas is airline tickets to the location of your choice. When quoting the education loan amount to your bank, this component might also be included.  5. Research Aid  You can include this information in the education loan application if your foreign university's offer letter states that you are responsible for paying for excursions and other extracurricular activities throughout the course of your studies. In addition, when applying for both forms of school loans in India, students can include the price of products like books, computers, and other study supplies in their total expenses.  https://www.youtube.com/watch?v=fufyFB9aMQI Does an education loan cover living expenses? The answer is yes, in most cases! Indian education loans for abroad studies typically cover a range of expenses beyond just tuition fees. This can include: Living expenses: This covers your accommodation, food, local transportation, books and study materials, and other daily needs. Travel expenses: The loan may cover flight tickets to your study destination and back. Other fees: This might include visa application fees, health insurance premiums, and even exam registration fees. However, there are a few key things to remember: Loan amount limitations: There might be a maximum limit on the total loan amount you can avail. This limit should ideally factor in both tuition fees and estimated living expenses. Documentation required: You'll need to submit documents like university acceptance letters and estimated living cost breakdowns to secure the loan amount for living expenses. Disbursement process: The loan for living expenses might be disbursed directly to the university or in instalments based on a pre-determined plan. Remember: Carefully research different lenders and compare their loan terms, interest rates, and living expense coverage options. This will help you choose the most suitable education loan for your study abroad journey. With proper planning and the right financial backing, your dream of studying abroad can become a reality! What elements must a student take into account when determining costs?  There is no way to change the loan arrangement because the student loan is a one-time transaction. Therefore, a student needs to be aware of the costs they can cover on their own and those for which they might require a loan. The student's financial stability at the time of study is of utmost importance, so the loan amount should be chosen with that in mind.  Before assessing the costs, a student must take the following into account:  The price of housing in a specific country and whether it will be possible to live in shared housing for a lower cost of living.  Food prices in the city where the university is situated.  Additionally, a student's ability to prepare meals on their own can significantly lower the cost of tuition.  Since academics are not just available on-campus, the cost of eating out or intercity travel will be included in the total fee.  Many regions, including the US and Australia, have cheap used car markets and reasonable gas prices. In contrast, students in countries like Ireland receive discounts on public transportation. All of this requires preliminary research.  In the city where the university is situated, there are opportunities for part-time employment. There are enticing part-time occupations with regulated minimum earnings in several nations. This assists students in paying for a sizable portion of their living costs.  FAQs on Education Loans and Living Expenses What percentage of living expenses does the loan cover? The percentage can vary depending on the lender, your chosen university's location, and your course duration. It typically falls between 30% - 70% of the total estimated living expenses. Can I apply for a separate loan for living expenses? While some lenders might offer a combined loan, you can explore separate personal loans to bridge any gap between the sanctioned amount and your actual living expenses. However, remember the additional interest burden of a separate loan. Are there any living expenses not covered by the loan? Discretionary expenses like entertainment, shopping sprees, or travel beyond academic purposes typically aren't covered. What documents are needed for living expense coverage? Universities' cost of living estimates, proof of accommodation arrangements (if any), and detailed living expense breakdowns are usually required.

The USA has emerged as a top destination for ambitious students, and for good reason! This blog explores ten compelling reasons why studying in the USA can be a transformative journey, opening doors to academic excellence, personal growth, and a bright future. 1. World-Class Education: The USA boasts some of the world's most prestigious universities, renowned for their exceptional faculty and rigorous academics. You'll find innovative programs designed to challenge and inspire across diverse disciplines, from engineering and medicine to humanities and business. Many universities prioritize cutting-edge research, offering students the opportunity to learn alongside leading minds in their fields. 2. Globally Recognized Degrees: A US degree is a passport to success. Recognized and respected by employers worldwide, a US education equips you with valuable knowledge and skills that will set you apart in the global job market. Whether you seek a career in India or internationally, a US degree opens doors to exciting opportunities. 3. Flexible Education System: Unlike rigid educational structures, US universities offer a refreshing level of flexibility. The credit system allows you to tailor your studies, choosing courses that align with your interests and career goals. This freedom to explore different fields before specializing allows you to discover your true passion. 4. Diverse and Inclusive Environment: US campuses are a melting pot of cultures, fostering a vibrant and inclusive learning environment. You'll have the opportunity to learn alongside international peers, broadening your perspective and developing valuable intercultural communication skills. This diverse environment prepares you to thrive in an increasingly globalized world. 5. Practical Learning Opportunities: US universities go beyond theory, offering a wealth of practical learning experiences. Internships, co-ops, and hands-on projects allow you to apply your knowledge in real-world settings. This practical experience enhances your resume and makes you a more competitive candidate for future jobs. 6. Cutting-Edge Technology and Resources: US universities are at the forefront of technological innovation. State-of-the-art facilities, advanced research labs, and access to cutting-edge software and equipment provide an unparalleled learning environment. Imagine conducting research in world-class facilities and having access to the latest technological advancements in your field! 7. Development of Life Skills: A US education is more than just academics. Universities cultivate essential life skills, fostering independence, critical thinking, and strong communication abilities. You'll learn to manage your time effectively, collaborate with diverse teams, and express yourself confidently. This holistic approach empowers you to succeed not just in academia, but also in your personal and professional life. 8. Vibrant Campus Life: Step beyond the classroom and immerse yourself in the rich tapestry of campus life. US universities offer a vast array of clubs, organizations, events, and activities catering to every interest. From sports and cultural clubs to student government and academic societies, you'll find opportunities to explore your passions, make lifelong friends, and contribute to a dynamic campus culture. 9. Scholarship and Financial Aid Options: Don't let financial concerns hold you back! Many US universities offer scholarships and financial aid programs specifically for international students. EduFund's expert advisors can help you navigate the financial aid process and explore scholarship opportunities to make your dream of studying in the USA a reality. 10. Post-Graduation Prospects: The Optional Practical Training (OPT) program allows international students to gain valuable work experience in the USA after graduation. This practical experience can strengthen your resume and enhance your career prospects. For some students, OPT can even lead to exciting job opportunities in the US after graduation. Wondering about how to finance your US education? Join our WhatsApp Community to know more! Embrace Your American Dream! Studying in the USA is an investment in your future, offering academic excellence, personal growth, and a chance to build a successful career. At EduFund, we're here to support you every step of the way. Contact our advisors today to explore your options and turn your dream of studying in the USA into a reality!

If you are taking an education loan then you have probably heard the term “co-applicant”. But who is a co-applicant? What are the eligibility criteria for a co-applicant? Why do you need a co-applicant for your education loan? Let’s find out!   https://www.youtube.com/watch?v=TJ4qgFj46Uw Importance of an Education Loan Imagine you just got into your dream university in Canada for a master's degree. All your hard work has finally paid off and you are ready to get your journey started. A part of your degree is already covered by scholarships and your hard-earned savings but you are still short on money. In such emergencies, an education loan can be a savior. Education is the security blanket that helps you live your dreams. It can sponsor your entire education or a part of it. Opting for an education loan offers numerous advantages to students pursuing higher education. One of the primary benefits is the ability to fund your education independently. With an education loan, you don’t have to dig into your family savings or exhaust all your savings on your degree.  Furthermore, responsibly repaying the loan helps students build a strong credit score and discipline. Another benefit of education loans often comes with flexible repayment options wherein they can start repaying their loan allowing students to manage the loan efficiently even during their studies. What is the role of co-applicants in education loans? A co-applicant, also known as a co-signer, is a vital component in the education loan application process. This individual co-signs the loan agreement alongside the primary loan applicant (the student) and shares equal responsibility for repayment. The presence of a co-applicant provides a safety net for the lender, ensuring that the loan is repaid even in unforeseen circumstances when the primary applicant may face financial difficulties. Consult an Expert Advisor Who can be a co-applicant? Financial institutions have specific eligibility criteria for co-applicants in education loan applications. Typically, a co-applicant can be a parent, legal guardian, sibling, or any blood relative of the primary applicant. It is essential for the co-applicant to possess an Indian bank account capable of signing cheques. Apart from these basic criteria, lenders consider other factors to assess the co-applicant's financial stability: CIBIL Score: The CIBIL score of a co-applicant plays a significant role in loan approval. Ranging from 300 to 850, a higher score improves the chances of securing the loan. A good credit score indicates strong creditworthiness, ensuring greater reliability in repaying the loan. Income Tax Returns (ITR) Document: Lenders carefully scrutinize the co-applicants' ITR document, which provides essential financial information. This document enables lenders to evaluate the co-applicant's financial health and repayment capacity. Income Proof: For salaried individuals, providing salary slips for the last 6-8 months is a mandatory requirement. Self-employed co-applicants need to submit various documents, including GST registration proof and financial statements of their business, to demonstrate their income stability. Income Amount: The financial institution evaluates the co-applicant's annual income to determine their eligibility for the education loan. Different lenders may have varying minimum income requirements. https://www.youtube.com/watch?v=9EAyvncisU4 FAQs Who is a co-applicant? A co-applicant can be a parent, legal guardian, sibling, or any blood relative of the primary applicant. Is it good to have a co-applicant? Yes, it is good to have a co-applicant. A financially strong co-applicant can increase the chances of education loan approval. Can a co-applicant take another loan? Yes, a co-applicant can apply for other personal, car, or home loans. Can you apply for an education loan without a co-applicant? Some banks have a mandatory clause wherein a co-applicant is essential for your education loan application while some banks are more flexible.

As you look to plan your child’s career and consider their higher studies in a good institute in India or overseas, the question that most parents ask themselves is, how hard is it to get an education loan? Today, education in India has become quite expensive from the school level onwards. Given the rising inflation rate, fees across the board for higher education in reputed Indian and international universities are going up yearly. In this scenario, if you are serious about sending your child to an excellent Indian institute or abroad for higher studies, chances are high that you will be required to take an education loan. Taking an education loan for a four-year undergrad engineering course from a private institute in India can cost you upwards of Rs. 12 lakhs in tuition fees. The same course in an international university can go up to Rs. 60 - 70 lakhs, with travel and stay extra. Most parents today opt for an education loan to fulfill their child’s educational and career aspirations. That brings us to the topic of this article: how hard is it to get an education loan? To understand the challenges, you must understand what the lenders look for in an education loan application. Apply for an Education Loan What lenders look for while reviewing education loan applications There are several education loans available, as RBI promotes these extensively. So most nationalized banks will offer you these loans. Here is the list of factors they consider when reviewing an education loan application: 1. Financial history of the borrower and co-borrowers Especially in the case of undergraduate courses, parents as co-borrowers must have an excellent credit rating and must show the financial capability to meet the need for repayment, should the need arise. 2. Co-borrower or Co-applicant While international lenders may not ask for a guarantor, most public sector/govt lenders do. They require a guarantor or co-applicant, especially if the loan is for a significant amount. Again, the guarantor's credit history will be scrutinized while sanctioning the loan. 3. Collateral Public sector/nationalized banks and several private lenders need collateral to issue an education loan if the amount is enormous. The value of the collateral is worked out in light of the loan required and varies depending on the lender, but collateral is a must. There are various non-collateral options available for students as well. Most of these even offer loan amounts up to 1 crore, but it depends upon the individual and their application. 4. University of your choice This is another crucial aspect for lenders. Most leading lenders have their preferred list of universities and courses for which they will issue loans. So, you must ensure that the institute your child is shortlisting is on that list and an accredited educational institute that the banks recognise. 5. The academic record of the student An excellent academic record goes a long way in assuring the lender of the child’s seriousness toward education and career. It works as an indicator for them that the student will complete the course for which the loan is being given and will be able to repay the same by building a promising career. FAQs Do we get education loans easily? The easiest way to get an education loan is to connect with EduFund. EduFund helps students by connecting them directly to the right education loan provider! With EduFund, you can get the lowest interest rates, express approvals, and end-to-end assistance in securing the right education loan for your profile. EduFund experts can also help you avoid hidden fees, get approvals without an offer letter, and ensure a smooth loan disbursement for your future plans. Connect with our experts here! Do education loans get rejected? Yes, education loans can be rejected. Banks can reject your loan application if there are any discrepancies in the documents. If your co-applicant does not meet the set criteria, or if you have opted for a course or university that the bank does not recognize. There are many reasons - the best way to avoid rejection is to plan with experts like EduFund, who offer end-to-end assistance. Why is it difficult to get an education loan in India? Yes, the loan process in India can be lengthy and tiresome if the candidate is applying on their own. With the help of experts from EduFund, you can avoid the lengthy process of getting in touch with the right providers directly and applying for a loan in no time. TALK TO OUR EXPERTS

With quality education becoming expensive and costlier every year, education loans are becoming extremely popular among students. In reality, the price of attending a reputable university is already very high. An MBA that cost 13 lakhs a decade ago, would now cost almost double that. Parents who plan their child’s education in advance and want to provide them with the best opportunities possible to invest their money in mutual funds (MFs), fixed deposits (FDs), and stocks. Amid all this, there still is a possibility of a financial shortfall. In such a situation, an education loan plays a critical role in bridging the gap between the shortfall and the necessary amount. The rising cost of education According to Forbes, education costs are rising at double the rate of inflation. In 15 years, the cost of an MBA is expected to rise from Rs 2.5 lakh to Rs 20 lakh. So, if a couple saves Rs 2,500 per month for 15 years at a rate of 12%, they would have saved about Rs 12.5 lakhs, ultimately needing some more funds if their child decides to pursue an MBA. Now, you must have some questions on your mind regarding the intricacies of availing of an education loan. We have tried to answer a few commonly asked questions to enhance your understanding. Apply for your dreams, get an education loan with us! 1. Who can apply for a student loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. 2. What is covered by a student loan? It includes the basic course fee and other costs such as accommodation, exam fees, equipment, and other miscellaneous expenses. 3. Who can avail of a student loan? It is available to students who wish to study in India or further their education outside the country. The overall sum available for studies in India and abroad differs from one bank to the next. 4. For what courses can the loan be availed? It is available as a full-time, part-time, or vocational course leading to graduation or post-graduation in engineering, management, medicine, hotel management, architecture, and other fields. 5. What are the eligibility criteria and documentation requirements? To be eligible for the loan, one must be an Indian citizen who has been accepted into a college or university that is recognized by a competent authority in India or abroad. The applicant must have completed his senior high school education.Some banks can provide a loan even before a student has been accepted to a university. The Reserve Bank of India (RBI) guidelines state that there are no upper age limits, but some banks may impose them. Additional documents such as the institution's admission letter, fee structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The co-applicants income records, such as salary slips or income-tax returns (ITR), are also needed. 6. Is collateral required for financing the loan? Depending on the amount, banks will fund up to 100% of the loan. There is currently no margin money required for loans up to Rs 4 lakh. To study in India, the applicant must contribute 5% of the necessary funds. The needed margin money for international studies, on the other hand, rises to 15%. Banks may also need collateral for loans exceeding Rs 7.5 lakh. For loans up to Rs 4 lakh, financial institutions currently do not need any collateral or third-party guarantee. A third-party guarantee is required for loans between Rs 4 lakh and Rs 7.5 lakh. For loans exceeding Rs 7.5 lakh, a security deposit is required. According to the fee structure, when a loan application is approved, the banks send the funds directly to the college or university. 7. What is the rate of interest charged on the education loan? To set an interest rate, banks use the Marginal Cost of Funds Lending Rate (MCLR) which in India ranges anywhere from 7% - 8% plus a spread (about 1 - 2.5%). Applying with EduFund can get you interest rates starting at just 9%! 8. What is the process of repayment? The individual availing the loan for their education is responsible for repaying the loan. In most cases, repayment begins when the course is completed. Some banks also give you a six-month grace period after you get a job or a year after you finish your studies before you have to pay back your loan. The repayment period is usually between 5 and 7 years, but it may also be extended to 15 or 20 years depending upon the bank and the applicant. The bank charges a basic interest rate on a loan over the repayment period. The student's equated monthly instalment (EMI) burden for future repayments is reduced by paying basic interest during the course duration. 9. What precautions should one take while applying for student loans? When availing of a loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of the total loan amount. 10. Are there any tax benefits? The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This tax benefit is only available to people who are paying interest on a personal loan. The whole amount of interest charged is deductible from your taxable profits. This deduction can be taken for up to 8 years. There are no tax deductions available for the principal sum. 11. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. FAQs What is an education loan? An education loan is a type of loan used for educational expenses such as tuition fees and education-related expenses like books, accommodation, living expenses, and much more. Education loans can be availed for studying only and one of the requirements is an offer letter from a reputed university/college. Who can apply for an education loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. Conclusion Good education is extremely important in the present dynamic world. It not only boosts self-confidence in students but also equips them with skills that in turn help them lead their life in the best possible way. Taking a loan might look frightening but in the long run, it definitely pays off, provided the student is focused and makes the best of the opportunity. Also, since an education loan is a person's first loan, it aids in the creation of a good credit score. If you repay the loan on time and without defaults, it would be easier for you to obtain a home loan, car loan, or any type of loan in the future. CONNECT WITH OUR LOAN EXPERTS

If you've come to this page, it's likely that you're looking into getting an education loan to pay for your studies abroad.   Studying abroad may be a rewarding experience that presents a wealth of chances for both professional and personal development. However, there might be a considerable cost associated with getting a degree abroad. To pay for their foreign studies, many students turn to student loans, but there are a few typical mistakes that can be made when applying for loans.   High interest rates, trouble repaying loans, and other financial problems might be brought on by these errors. In this post, we'll go over some of the most typical mistakes students make when taking out student loans to fund their international studies and offer advice on how to prevent them. Apply for Education Loans Stay away from these blunders 1. Not reading the terms and conditions  When taking out an education loan for international study, one error to avoid is failing to carefully read and comprehend the loan's terms and conditions. To make sure you comprehend the interest rates, repayment alternatives, and any costs or penalties associated with the loan, it's crucial to read the tiny print and ask any questions you may have.  It's also crucial to take into account the whole cost of the loan, which includes the principal borrowed, interest, and any other expenses. After you graduate, make sure you have a clear repayment strategy in place and that the payments are manageable given your anticipated post-graduation salary.  Finally, only take out as much credit as you need. Only borrow what is needed to pay for education, housing, and other necessities after carefully evaluating your financial condition. Overextending your borrowing capacity could result in future debt that is unneeded and financial stress.  Rules for taking education loans Read More 2. An incorrect estimate of the cost  It's a big financial choice that needs considerable thought and preparation to take out an education loan to study abroad. Underestimating their costs is one of the most frequent errors that students make when taking out a student loan.  Students frequently concentrate on the upfront expenses while making plans to study abroad, such as tuition, living expenses, and travel expenses. Yet, there are other additional indirect expenses that can mount up quickly, including those for books, supplies, meals, and travel. Accurately estimating these fees can be difficult, particularly if the student has never lived in the nation previously.  Many issues can arise because of underestimating costs. First, the student might become broke while studying, which could be stressful and have an effect on their grades. After graduation, they might have to take on extra debt or work part-time, which would add to their financial load. Second, kids might not be able to go on trips or take part in extracurricular activities, which could limit their international exposure. Finally, individuals might be forced to make painful lifestyle compromises that could harm their general well-being.  Students should think about the following advice to avoid underestimating costs while taking out an education loan for studying abroad:  Do your homework: Students should thoroughly examine the cost of living in the country they intend to attend school. They should take into account all costs, including indirect ones like food, transportation, and entertainment.  Talk with professionals: Students should speak with education loan companies or advisors who assist them in organizing their finances for study abroad programs. These professionals can give them precise cost information.  Create a budget: Students should put together a sensible budget that accounts for all costs and distributes money appropriately. Also, they need to budget for any unforeseen costs that might occur while they are away from home.  Be conservative: It's better to estimate costs that are too high than too low. When evaluating costs, students should use cautious estimates and make backup plans.  https://www.youtube.com/watch?v=7Y0V6Z0lcJs 3. Dependence on a single lender  It's crucial to weigh all of your options and not rely entirely on one lender when taking out an education loan because doing so increases your risk of making mistakes that could wind up costing you money in the long run. There may be fewer options available, so it's critical to evaluate and contrast the many loan options to choose which one best suits your financial condition and academic objectives.  It is crucial to take into account the possibility of higher interest rates, undisclosed costs, flexible repayment options, and diversification when taking out a student loan. Interest rates may be higher than expected, and you may not be aware of the expenses involved with the loan. Flexibility in repayment is also crucial because different lenders could provide different levels of flexibility.   Finding a loan that offers good conditions and matches your financial situation might help you spread your risk and diversify your portfolio.  An overseas school loan is a substantial financial choice that has to be carefully thought out and planned. When submitting a loan application, students and their families can make a number of typical blunders that can lead to long-term financial troubles.   While taking out an education loan, some typical mistakes to avoid include not doing your homework on the lender, borrowing more than you need, forgetting to read the loan's terms and conditions, not checking into all your loan possibilities, and depending on just one lender. It is crucial to do extensive research on the lender and loan terms, figure out the precise amount of money you need, read and comprehend the loan's terms and conditions, investigate multiple loan options, and avoid relying on just one lender to avoid making these blunders.   Planning and being proactive are ultimately the keys to avoiding blunders when taking an education loan overseas. You can locate a loan that matches your needs and enables you to pursue your academic objectives without experiencing undue financial hardship by taking the time to properly investigate and weigh your options. Taking out a student loan can be a wise investment in your future if you approach it correctly and make the necessary preparations. FAQs Why does an education loan get rejected? There are several reasons behind loan rejection. It could be due to incomplete and fake documents, the co-applicant's poor credit history, low marks in school or college, low repaying capacity, etc.  Can I get an education loan with 50% marks? Yes, some banks do provide loans to students who have scored 50% marks in school. Connect with us here to know more! What are the conditions for an education loan? Some basic conditions for an education loan are: The applicant must be a student between the age of 16 to 35 years of age, must be an Indian citizen, must have a co-applicant, must have a conditional or confirmed admission letter for processing, must have the capacity to pay back the loan and a satisfactory credit history that meets the bank's requirements. TALK TO AN EXPERT

Choosing between an education loan vs self-finance for your child’s higher education is as tough as planning for a child's higher education. Most parents consider self-financing a viable alternative to pay for their child's education by liquidating valuable assets like land or FDs or borrowing from family, friends, and relatives. Such financial assistance is not available to all families. This is when a student loan can help. Let’s look at the benefits of student loans and their preference over self-financing. Self-financing  Taking out an education loan can be a financial burden for most students and parents, so they prefer self-financing as a viable option to avoid future debt. For one reason or another, students don't want to be burdened with EMIs when they can pay for everything at once. What exactly qualifies as self-financing? Self-financing may be preferred in the following circumstances: Paying for your own education Request for financial help from family, friends, or relatives Securing funding from a third party (excluding government banks or education loan providers) Education Loans In the debate between education loan vs self-finance, education loan has emerged as a strong competitor. The demand for student loans in India has increased steadily even during the pandemic. Collateral loans or Secured loans are offered based on the collateral provided. When a borrower pledges collateral to obtain a loan, the lender is guaranteed partial compensation for any outstanding loan debt. In case payments are not made on time, they can seize the mortgage and sell the property. The best mortgage loan providers in India are government and commercial banks Collateral Free or Unsecured loans do not require any collateral to be pledged. These loans are available to students with insufficient assets to pledge. However, when financing unsecured loans, lenders consider factors such as parental income, university ranking, and fees are taken into account when considering unsecured loans. Education loans vs Self Finance Conclusion Student loans come with several benefits, whereas self-funding has limited benefits. Self-funding your child's higher education can help reduce your child's financial burden. Saving for a child's higher education may be tricky, but if you plan early, you can start from a small amount and create a large corpus over time to protect your child's future. If you are facing difficulty in saving and do not know where to invest your savings, then download the EduFund app today and connect with experts to know how you can save and plan for your child's higher education. FAQs What is self-financing? Self-financing is when you pay for your education or tuition fees out of your own pocket without taking on any debt or liability. Which is better, a personal loan or an education loan? An education loan is better if the aim is to pay for your education expenses. A Personal loan is better if you need it for vacation expenses or personal needs. What type of loan is best for education? An education loan is the best type of loan to finance your education. It is designed for students who wish to better their lives through good quality education and upskilling. Education loans have relatively low interest rates, a moratorium period to take debt-free while studying, flexible tenures and much more. TALK TO AN EXPERT

For parents who desire to send their children to continue higher education but cannot financially do so on their own, an education loan is certainly a blessing. Many people eventually sell off family belongings, including gold, to pay for their children's further education. With the aid of an education loan, you may preserve these priceless possessions while paying for your child’s education. Few loans for higher education may need collateral, and few won’t. Many education loans from the country’s top lenders are available to pay for different courses. Whatever form of student loan you decide to take out, you must have a reliable repayment schedule in place. By doing this, you or your child will be able to pay the monthly payments without going into default. You've come to the right place if you need assistance managing student loans. Apply for Education Loan Tips to repay education loans faster 1. Advice for managing student loan debt Are you soon to take out a student loan? Continue reading for some practical advice on managing student loans. 2. Select a loan with a shorter term A brief tenure is a fantastic choice for managing student loans. While a shorter loan term can result in higher EMI payments, it will also enable you to save significantly on interest payments. Now, this does not imply that you choose EMIs that are too expensive for you to afford. Instead, go with the shortest tenure you can handle. To figure out how much you can afford to pay each month for your student loan, use an EMI calculator. How Does Education Loan Work? Read More 3. Pick a suitable repayment strategy Choosing the appropriate repayment option is the best method to manage student loans. You will have several repayment choices from your lender. Pick the option that fits your budget the best. You must be mindful of the duration of your moratorium. You will then be aware of how much time your child has left to obtain employment and save funds before the first EMI is due. Do not forget to consider how much they can expect to make in their first job. You can determine the appropriate tenure and EMI with the help of all of this. Without such careful planning, you can end up selecting an EMI that would be very expensive for both of you. https://www.youtube.com/watch?v=9EAyvncisU4 4. Set up automatic payments Missing loan installments might seriously harm your child's financial situation. Their credit score may be impacted, and they may incur late fees as a result. Just ask them to set up automatic withdrawals from their savings account so you won't have to worry about missing payments. They won't incur any missed EMI charges because these payments will be made on time. They will be able to retain a good credit score with regular payments. In turn, a good credit score is beneficial for making future loan applications. Education Loan Repayment Strategy Read More 5. Pay off interest during the moratorium Your payments don't start right away when you take out an education loan. They start after the moratorium has ended. The moratorium is a six-month or one-year period that starts when you finish your course. The interest on your child’s school loan starts to build the instant they receive the funding, even if your payments won't start until the moratorium is over. Therefore, it would be good to begin paying this interest while your child is still attending school. The best student loan advice you will likely receive is this. While still in college, your child might want to think about having a part-time job. The money they make from this job can be used to pay off their student loans. Either of you will significantly reduce the total amount that must be paid if you pay off this simple interest before it accumulates. 6. Make additional loan repayments Did you get a pay raise at work? Or perhaps your relatives gave you some cash as a gift. You might want to think about increasing your student loan payments if you get some extra money. This is a fantastic strategy to reduce the overall payback burden. Making larger payments on your student loan may enable you to pay it off earlier. One of the best pieces of advice for properly managing student loans is this. Check with your lender to see if there are any prepayment charges, though. Before going through your loan application process, you can check the fine print or ask your lender whether there are any penalties. https://www.youtube.com/watch?v=fufyFB9aMQI Conclusion The repayments of a loan can be very stressful. You and your child should do whatever you can to make it easier. These points will help reduce the burden on them and help them go through the process. If after this there are any questions, advice, or information you need, EduFund’s team of financial advisors is available to talk to you FAQs Can I repay my education loans before the scheduled time? Yes, most education loans allow early repayment without penalties. Check with your lender for specific terms. Are there benefits to repaying education loans early? Yes, early repayment can save you on interest costs and improve your credit score faster. What should I consider before repaying my education loans early? Ensure there are no prepayment penalties, evaluate your financial situation, and prioritize higher-interest debts first. Is there an option to repay your education loan before time in India? There are NO penalty charges for prepayment. You can prepay your education loan anytime. Can we close the education loan before tenure? Before prepaying your education loan, you should consult your lender to understand whether they will levy any kind of prepayment penalty. In India, there are no penalties on prepayment but it's important to consult and check to avoid extra payments. Connect with our Loan Experts

What does refinancing a loan mean?   Refinancing an education loan lets a new lender take over the existing loan and pay out the old lender. The new lender typically offers a lower interest rate on your loan, may offer a refinancing bonus, and provides better pay-back terms and service, making the shift attractive.    Why do students refinance education loans?   Most education loans have a tenure ranging from 5 years to 20 years. During this tenure, the loan rates may change in the market, and the current lender may not pass on the benefits of lower interest rates to the borrowers.    To ensure your education loan has the lowest interest rates, you can monitor the education loan market closely after taking the loan. Even a slight lowering of interest rates can impact the repayment tenure or per month EMI. As your child starts their career and begins to repay the loan, every small amount saved will enable them or them to repay the loan faster.    There are usually three main reasons to refinance an education loan:    To optimize the monthly pay-outs   Lower the interest rate   To change the loan tenure   Additional read: 5 ways to make getting an education loan easier for your child What are the eligibility criteria to refinance an education loan?   To refinance an education loan in India, the student should have taken the loan to pursue graduation or post-graduation degrees from well-known institutes and colleges.      The repayment process of the education loan usually begins once the student has already started earning.   Accordingly, the student should have completed the course and either could have begun the repayment process or be in the process of starting repayment.    The borrower must have a good credit history and score, with financial resources in terms of a regular salary to pay back the EMI month after month. Most lenders will also check on the other debt that the borrower may have.    Dos and don’ts of refinancing an education loan   Apply for Education Loans While refinancing an education loan, ensure you do the following:   Do due diligence before rushing in to shift the loan to a new vendor. In India, refinancing a loan may invite charges from the old and the new lender. The Old Lender typically charges a foreclosure penalty, and the New Lender has processing charges upfront that will add to the overall payout. Before deciding to shift your lender, check on the additional costs that the refinancing will incur.   Monitor the education loan market carefully. Changing rates can impact the total amount payable by you considerably. When you find the market rates dropping, you can speak to your existing lender to refinance your existing loan at the current rate or connect with a new lender for the same.    Opt for a fixed interest rate, and explore the possibility of a student loan refinancing bonus. These amounts can considerably impact young students starting out in their careers.    If your child’s refinancing application has been rejected initially due to low salary / insufficient funds, a promotion or salary increase can make them eligible later. Ensure your child uses these career developments smartly to refinance the education loan.    Instruct your child not to default on the student loan as it impacts the individual’s credit score in the long run. Poor loan repayment habits will affect their chances of getting a refinance and even new loans in the future.    To see how a change in interest rates will affect the monthly pay-out and tenure of your education loan, check out our Loan Calculator. This will help you understand the benefits of having the education loan refinanced.    If your refinance application is rejected for any reason, you will do well to start saving money through our various investment options and build your own corpus to settle the education loan at the earliest. Early loan repayment helps you minimize the interest you are paying and keeps your overall payout under control. FAQsIs it good to refinance student loans?  Refinancing student loans can be a good financial decision if you can secure a lower interest rate than your current loans, potentially reducing monthly payments and saving money over the loan's lifetime. However, it may not be suitable for everyone, so carefully evaluate your situation before deciding.  What happens if I refinance my student loans?  When you refinance your student loans, you basically take out a new loan with different terms to pay off your existing loans. This may result in a lower interest rate, a different repayment term, and a new lender. It can lead to lower monthly payments, cost savings, or both, depending on the terms of the new loan.  What is not a good reason to refinance a student loan?  Refinancing may not be a good idea if you're relying on federal loan benefits such as income-driven repayment plans, loan forgiveness programs, or deferment/forbearance options. Refinancing federal loans into a private loan could make you ineligible for these valuable benefits. Additionally, if you have a low credit score or unstable income, refinancing may not yield favourable terms.  Is it beneficial to refinance a loan?  Refinancing a loan can be beneficial if you get lower interest rates, reduced monthly payments, or faster loan repayment. It can save you money and simplify your financial situation. However, the benefits depend on your specific circumstances, so it's essential to carefully assess the terms and compare them with your current loan before refinancing.  TALK TO AN EXPERT