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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 18 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 writing facilities 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, 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 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 9.85% 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. Talk To An Expert 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

The United Kingdom has been one of the preferred global destinations for Indian parents who want to send their children abroad for higher education.  The thought is exciting enough as it opens new doors of opportunity for a flourishing career but it requires a considerable sum of money that every parent cannot afford. Education, especially higher education in foreign countries like the UK, is revered in India, no doubt. But it is a fact that every Indian parent cannot afford to send his child abroad without an appropriate loan. Knowing about the education loan process for the UK must be a priority for a parent as it will help in fulfilling their children’s dreams to a great extent. https://www.youtube.com/watch?v=sRiktJ_KLmo Cost to study in the UK   Studying in the UK entails various costs, including tuition fees, accommodation, living expenses, and study materials. Tuition fees differ based on the university and program, with undergraduate fees ranging from £10,000 to £38,000 per year for international students. Postgraduate fees can vary similarly. Accommodation expenses vary by city and housing type, with average rents ranging from £800 to £2,000 per month. Additional living costs, such as food, transportation, and utilities, might average around £700 to £1,000 per month. Scholarships can help offset these expenses. It's crucial to budget for visa fees, health insurance, and potential travel costs. Researching scholarships, part-time job opportunities, and efficient budgeting strategies can make studying in the UK financially manageable.  Documents required for Education Loan Approval:  Applying for an education loan to study in the UK is a significant step towards realizing your academic aspirations. To ensure a smooth loan approval process, it's essential to provide the necessary documents that demonstrate your eligibility and commitment to your education journey. The documents required typically include:  Admission Letter: A formal confirmation of your acceptance into a recognized educational institution in the UK is a crucial document that validates your need for financial support.  Cost Estimate: Present a detailed breakdown of the anticipated costs of your education, including tuition fees, accommodation expenses, living costs, study materials, and travel expenses. This estimate will guide the lender in determining the loan amount.  Academic Records: Submit copies of your academic transcripts, certificates, and standardized test scores, such as IELTS or TOEFL results. These documents showcase your academic prowess and your commitment to your studies.  Collateral Documents: If you're applying for a secured education loan, provide relevant collateral documents. These might include property papers or certificates of fixed deposits that demonstrate your capacity to secure the loan with valuable assets.  Proof of Identity: Present a valid passport, Aadhar card, or any other government-issued identification document to establish your identity.  Proof of Address: Furnish documents that verify your residential address. This could include utility bills, rental agreements, or any other official documents.  Income Proof: Showcase your parents' or co-borrowers income stability and capacity to support your education. This might involve salary slips, income tax returns, or business-related documents.  Co-borrower Documents: If you're including a co-borrower, such as a parent or guardian, provide their identity and address proofs, as well as income-related documents.  Letter of Admission: A critical piece of evidence that affirms your intention to study in the UK. This document outlines the course details, duration, and starting date.  Types of Education Loans for the UK:  When pursuing an education loan to study in the UK, you'll typically encounter two primary types: secured education loans and unsecured education loans.  Secured Education Loan: This type of loan requires you to offer collateral, which could be property, fixed deposits, or other valuable assets. For the lender, the collateral serves as security, lowering their risk. In return for this security, secured loans often come with lower interest rates compared to unsecured loans.  Unsecured Education Loan: Unsecured loans do not require collateral. These loans are based on your creditworthiness, academic performance, and the financial stability of your co-borrower. While they provide a valuable avenue for those without significant assets, unsecured loans usually come with higher interest rates to compensate for the increased risk borne by the lender.  Expenses Covered in Education Loan for the UK Education loans for the UK are designed to comprehensively cover the various expenses associated with pursuing higher education overseas. These expenses typically include:  Tuition Fees: The loan covers the tuition fees required for the chosen course of study.  Accommodation Expenses: The loan encompasses accommodation costs, including rent and related charges.  Living Costs: This includes day-to-day expenses such as food, transportation, study materials, and personal needs.  Travel Expenses: The loan can cover travel costs related to your journey to and from the UK.  Insurance Fees: Comprehensive health insurance is essential when studying abroad, and education loans often account for these costs.  It's essential to have a clear understanding of what expenses your education loan covers. This knowledge will allow you to plan your finances effectively and avoid unexpected financial burdens.  Eligibility for Education Loan for the UK While eligibility criteria can vary among lenders, certain common factors determine whether you qualify for an education loan to study in the UK. These typically include:  Indian Citizenship: You need to be an Indian citizen to be eligible for most education loans.  Admission Confirmation: You must secure admission into a recognized educational institution in the UK.  Co-borrower Requirement: Education loans usually require a co-borrower, often a parent or guardian, who demonstrates the ability to repay the loan in case you face difficulties.  Academic Performance: Lenders often consider your academic performance as an indicator of your commitment to your studies.  Financial Stability: The financial capacity of your co-borrower to repay the loan is a crucial factor in the approval process.  Education Loan Documents Required for the UK When applying for an education loan to study in the UK, the following documents are commonly required:  Completely fill out the application form that the lender provides.  Admission Letter: A formal letter of admission from your chosen UK educational institution.  Cost Estimate: An estimate of the total expenses involved in your education, including tuition, living costs, and other related expenses.  Academic Records: Copies of your academic transcripts, certificates, and standardized test scores like IELTS or TOEFL.  Collateral Documents: If applying for a secured loan, provide relevant collateral documents.  Income Proof: Documents that establish the income stability of your co-borrower, such as salary slips or income tax returns.  Proof of Identity: A valid passport, Aadhar card, or other government-issued ID.  Documents that attest to your residential address serve as proof of address.  How to Make a UK Student Loan Application:  Acquiring an education loan for studying in the UK involves a structured process:  Research: Begin by researching the various lenders that offer education loans for studying in the UK. Compare the terms, interest rates, and qualifying requirements of each.   Application: Once you've selected a lender, complete their application form and gather the necessary documents.  Document Submission: Submit the application form along with the required documents to the lender's designated branch or online portal.  Loan Approval: The lender will review your application and documents to assess your eligibility and creditworthiness.  Loan Sanction: Upon approval, the lender will issue a sanction letter outlining the loan amount, terms, and conditions.  Repayment of Education Loan Repaying your education loan is a significant responsibility that begins after the completion of your course or after a predetermined grace period. The repayment term varies, typically ranging from 5 to 15 years, depending on the loan amount and terms. It's essential to factor in your post-education financial situation and choose a repayment plan that aligns with your capacity to repay. How to Choose the Best Lender? Selecting the right lender for your education loan significantly impacts your financial journey. Here is some advice on how to choose wisely:  Interest Rates: Compare the interest rates offered by various lenders and opt for one with competitive rates.  Loan Amount: Ensure that the lender covers the full extent of your education-related expenses.  Repayment Terms: Evaluate the flexibility of repayment terms and choose a lender with options that suit your financial situation.  Processing Time: Opt for a lender with an efficient and streamlined loan processing system to avoid unnecessary delays.  Customer Service: A responsive and supportive customer service team can make your loan journey smoother.  Additional Benefits: Some lenders offer additional benefits such as pre-visa disbursement and reduced interest rates for female students. When choosing, keep in mind these benefits.  How to start the UK education loan process? Some important facts about the education loan procedure for the UK are as follows: Step 1: Research the education loan procedure Research is the key. So, start looking at viable options at least 8 – 10 months before the new semester begins in the UK. The loan procedure of every country is different. Hence, going through reputed sites like EduFund to gain the correct information is absolutely crucial. https://www.youtube.com/watch?v=Obks6fyQyhs Check Education Loan Eligibility Step 2: Know the difference between secured and unsecured education loans Secured loans: Secured loans refer to collateral-based finance options like government banks for funding higher education in foreign countries.  The low interest rates and fewer processing fees make them look inexpensive when compared to other types of education loans Unsecured loans: Unsecured loans refer to education loans secured with the help of NBFCs or non-bank financial companies.  The interest rates are high, no doubt, but it is a feasible option if a student wants to pursue an education course in one of the top 10 or 20 universities in the UK.  This service is also available on the EduFund App at zero hidden charges and fast disbursal. Step 3 - Decide the university in which you want to enroll Identify the university in which you want to enroll. Make sure it is offering the education course you want to pursue. Look at the eligibility criteria for admission. Look at the average fee structure. Calculate the amount of education loan you will need to study at the specific university.  Include both academic and non-academic expenses like tuition fees, other compulsory fees, accommodation expenses, transportation costs, books and supplies costs, and, health insurance premiums. Look at the amount you can shelve out from your pocket and the amount needed to pursue the studies. Calculate the difference and identify the actual loan amount you will need. Download App and Start Saving Step 4 - Make inquiries about the banks and loan options Identify the banks that offer loan opportunities. Check the criteria for loan eligibility. Look at the interest rates. Calculate the actual amount you will have to pay. Know about the payment schedule and the terms of payment. Enquire about the penalty or the additional amount you will have to pay in case you are unable to pay on schedule or as directed. For a hassle-free process, you can check your eligibility for easy educational loans at EduFund. Why? No hidden charges, low-interest rates, and collateral-free loans up to Rs 75 Lakhs. Step 5 - Compare the education loan options in the UK You have already shortlisted the banks with viable education loan options.  Compare all the relevant details like interest rate, processing fee, processing time of the loan, loan margin, payment terms, and also available income tax exemptions. Do not hesitate to make comparisons as it will help to save a good amount of your money. https://www.youtube.com/watch?v=mW0VH10uH9I Conclusion The presence of widespread Indian communities and numerous academic courses like Medical, Engineering, Hotel Management, Finance, and Business coupled with an easy education loan processing for the UK acts as a magnet to lure in students from all over the country. To interested Indian parents, EduFund is here to help you. Explore all of your options and compare them all in one platform.

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.

Today's expanding world of opportunity benefits greatly from an education loan. Your child has so many educational courses to choose from. A decent education is essential for your child's growth and development, and several institutions throughout the world provide student loans with low-interest rates to those who cannot rely on their savings. Banks and other financial organizations provide outstanding education loans with a reasonable interest rate and loan payback time.  An education from a reputable university is the first step to a prosperous profession. The cost of college expenses is rising quickly, though, and for parents who might not have enough money, taking out an education loan sounds like a perfect alternative for their child. https://www.youtube.com/watch?v=tdwqQH0xkFw In reality, the cost of higher education overseas and for Indian parents has increased enormously due to the rise of the dollar value versus the rupee. This pattern is also observed in TransUnion CIBIL data, where the average ticket size of a newly issued student loan increased by 48 percent from INR 5.73 lakhs in 2015 to INR 8.5 lakhs in 2018.  So, here are the five best ways if you are planning to get a student loan for your kid and help them to pursue higher studies easily. Tips to Consider Before Taking an Education Loan Choose the right course  Let your child choose a subject that fascinates them enough to make it their career. Don't allow your child to do what the majority of others are doing to deter them from following a passion of yours. For example, a student who is required to study engineering could not do well or even finish the course if they are least interested in the subject  However, if the student in question were interested in law, he would make a brilliant attorney and have a successful profession as well as a happier life. Therefore, a wise piece of advice for parents is to let their kids discover their passion by researching the course's requirements before making a choice. After completing their education, you should consider your child’s career possibilities and see if they can find employment to help you pay off the debt. Ways to Tell Your Child about Education Loan Read More Research about banks  Make sure to do your thorough research before choosing a bank. Avoid making rash or emotional decisions when applying for a loan. By conducting an extensive study, you can comprehend the varied interest rates, processing costs, terms, and conditions, etc. The amount you must repay varies depending on each bank's interest rate. You will need to spend and repay a certain amount of money for every point in the interest rate. Verify if your loan's interest rate is fixed or fluctuating. Making a choice between these rates is crucial since it significantly impacts how you intend to repay your loan and how much your EMI will be.  Borrow only what you need  If you want to take out an education loan for your child, resist the urge to request the utmost amount permitted. If your child has any financial awards, such as scholarships, you should constantly assess how much you have or how much you can afford to support your child’s education. Decide how much you want to borrow from the bank as an education loan after doing the math for the amount you have. As a parent, you must help your kids understand that every amount they take will have a specific interest rate levied on it. Hence, it is essential to borrow only the amount they can repay. https://www.youtube.com/watch?v=4gTQkdePOWM Educate your child about the loan  Whether you want your kid to continue their education in India or overseas, you should be aware of the specifics of their current coursework and any loans you have taken out. A VISA will allow your child to enter a foreign nation but does not give them access to everything. They could be questioned about their intentions and entry procedures at the airport. Your child should be ready to answer any queries about their course, organization, teachers, tuition costs, loan amounts, repayment terms, interest rates, etc. Your kid should also be aware of their personal information and information about their families, such as names, birthdates, residences, levels of education, and jobs.  Plan for repayment   Even though interest starts to accumulate from the first month, students may occasionally be given a moratorium or one-year grace period before they must begin making loan payments. One advantage of this time frame is that, even if your child can pay the EMI after this grace period, you can start repaying the EMIs early and assist your child in paying off the loan more quickly by doing so.  Early investment and saving can help reduce the financial burden that a high-quality education places on families, but some parents may not have the opportunity to do so since they are already dealing with admissions. An education loan could be the best option in such situations.  However, choosing the correct course, university, and financial institution may assist enhance the possibilities of simple loan payback, making the student debt-free sooner rather than later. This is in addition to creating a decent repayment plan. 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. TALK TO AN EXPERT

An education loan is a great means to end a dream college! It can enable you or your child to attend their dream university or course. Kickstart their careers. While it is a great medium for securing your end goal it requires planning and systematic payoffs. Paying off your education loan on time can  raise your credit score, save better and work towards different financial goals.     Paying off a loan is a process and here are some tips on how to pay off your education loan:   1. Read the fine print   No one likes to read the paperwork involved in securing a loan but it's highly important. This fine print can tell you when you have to start paying back right after the course or after securing a job. Knowing when you have to start paying the EMIs can help you budget and prioritize your expenses.   Fine print discusses your loan interest rate, duration, penalties, and tenure period. It can tell you whether you need to attach collateral, benefits, and the payment plan.  Before signing up for a loan understand the conditions and prepare yourself to repay it.    2. Plan for repayment  Once you know the terms and conditions of your loan agreement, you can start formulating a repayment plan. Education loans require you to start paying after completing the course or securing a job, but planning should not wait that long. Once you know the amount you have to pay back monthly, start thinking about you will manage it. Find out how much you need to save in order to make timely payments. Consider lifestyle changes and even cutbacks to ensure your financial freedom is not compromised.   Having a proactive repayment plan can bring financial discipline, help you prepare for future financial goals, and budget your expenses with ease.   3. Consider part-time jobs   If you want to pay off your education loan faster or save up extra for the future then part-time jobs, passive sources of income, paid- internships, freelancing, or making reels can help. The world is teeming with opportunities where you can earn extra, save for future repayments, and hopefully, get paid off your education loan faster.   You can also save up through discounts, budgeting well, looking for shared apartments, going for homecooked meals, seeking scholarships and stipends to help sustain your everyday expenses, or saving for the future.    4. Budgeting and saving are important    A monthly Netflix subscription costs around Rs.800, which is Rs.9,600 for the entire year. Without budgeting, you won’t realize how much you are spending and where this money is going. Rather than spending without care plan your expenses, and set aside a portion of your savings for investing. This fund of savings can reduce the stress and burden of repaying the loan when you are looking for a job after graduation.    5. Know tax deductions   Education loans allow for tax deductions under Section 80E of the Income Tax Act. Deductions can be claimed by the person who is repaying the loan - a parent, guardian, or spouse of the student. Talk to your financial advisor and get the full benefit of tax deductions on your education loan. 6. Loan transfer at a lower interest rate  A loan transfer can cut down the cost then go for it. This can help you save on the generated interest and make more affordable EMIs.  Before opting for a lower interest rate, read the fine print and find out the extra costs and fees to have your loan transferred from one lender to another. Only opt for the transfer if it makes up for the difference.   Taking an education loan is a huge responsibility and its repayment requires heavy financial planning. By following these tips, you can easily plan your repayment installments and make your life easier and stress-free!  FAQs What is the best way to repay an education loan?  Ans. The best way to repay an education loan is to make timely and consistent payments. Create a budget, consider income-driven plans if applicable, and explore options like refinancing or loan forgiveness programs.  Can I pay off my education loan early?   Ans. Yes, you can typically pay off your education loan early. Check your loan terms for any prepayment penalties, and if there are none, making early payments can save you interest.  What is the smartest way to pay student loans?   Ans. The smartest way to pay student loans is to prioritize them in your budget, pay more than the minimum, when possible, explore refinancing options, and take advantage of loan forgiveness programs if eligible. 

MBBS is considered one of the most expensive degrees in the world – it costs up to Rs. 1 Crore to study MBBS from a private university in India today. In the 10 years, this cost will only increase further - thanks to the impact of inflation. If you are those lucky parents whose children have decided to become a doctor in the future, then here’s how you can start saving early to avoid any hassles.   How to avoid education loans? More and more parents in India find it hard to manage the rising higher education cost. Even if they want to study abroad or choose any professional course, they find it challenging to meet the overall cost of their studies. MBBS is the most expensive course and arranging funds to enroll the child in the best MBBS college in the country is a difficult task. This growing cost of education has affected parents’ ability to meet the financial goals for their child's education.   Taking up an education loan is the fastest way to let your child enroll in medical coaching and medical school. There is no doubt that you have to be financially strong for the child to let them become a doctor. But, for low-middle-class and middle-class families, getting an education loan can be tough. They bring their own set of worries and tensions to the family as well.   Most education loans are non-collateral, which can cause high interest rates and fees. The average interest rate of 9.55% to 13.25% per annum can be hard to pay off after 5 years of medical schooling.  The interest rate can be cheaper if you take a collateral-secured loan. However it requires you to provide an asset, FD, or property to the bank as collateral. The collateral acts as protection in the event of repayment.   To avoid the pain of education loans, there are financial instruments that parents should consider if their child aims to become a doctor:   Mutual funds An underrated financial instrument, Mutual funds can be a great investment option if you have a time period of 10 to 15 years. Families that invest in Mutual Funds can get good returns over the years. With a small monthly SIP of Rs. 1000 for your child today, you can reap the benefits in the future.    Public provident fund It is an excellent solution where the banks give you a reasonable interest rate on the payment. It will ensure that you can save money on the superb return and keep your child's future for the better. There is no looking back if you save a child's money through PPF. People find it the safest investment option, meaning you do not have to think much. PPF generally has a lock-in period and allows you to save up to Rs. 1,50,000 yearly as deposits.   https://www.youtube.com/watch?v=tdwqQH0xkFw Digital gold Another option that will give a good return in the future and ensure you get the benefits of the saving. It has good market value, and there is nothing to fear about digital gold. You can save money from your income and invest in buying digital gold. Later if you want to sell the gold, you will get a reasonable market price as per the current gold value.   Fixed Deposit If you already have good income savings, you can put that bulk money in a fixed deposit for 20 years. It is a fixed source of income that will double up with the interest rate when it gets coverup after maturity. FD is the oldest form of saving and can be a good investment if the base lumpsum amount is large enough to give a good return.  Know the future cost of education Finally, the only way to save is to know how much you need to save in the future.  A good financial plan requires a set of targets, which is why by using the College Cost Calculator, you can find out the future cost of studying medicine across the globe. Find out this future cost before you start planning your savings.   If your child aspires to become a doctor, then support their dreams mentally and financially. While there is no harm in taking an education loan, it is harmful to ignore the plethora of financial instruments that can easily help you build a good education corpus to help your child actualize their dream. FAQs What will happen if I don't pay an education loan?   If you don't pay an education loan, it can have serious consequences. These may include accumulating interest and late fees, damaging your credit score, facing legal action or debt collection efforts, and potentially having your wages garnished or assets seized. It's crucial to communicate with the lender to explore repayment options and avoid default.  What happens if you don't pay an education loan in India?   If you don't pay an education loan in India, it will lead to serious consequences. The lender may initiate legal action, which can result in a damaged credit score, difficulty obtaining future loans, and potential asset seizure. It's crucial to communicate with the lender and explore repayment options to avoid such situations.  Can I get 50 lakhs education loan without collateral?  Getting a 50 lakhs education loan without collateral may be challenging. Most banks and financial institutions require collateral or a co-signer for large loan amounts. However, some lenders may offer unsecured loans for smaller amounts. It's best to research and compare loan options from different institutions to find the most suitable one for your needs.  TALK TO AN EXPERT

Business Insider says, “The average expenditure on a child in India is ₹8,331 per annum. The average fee for enrolling in a professional course for higher studies can go above the ₹72,000 mark.”  According to Yourmoney.com, “Around 65% of parents set money aside for their children’s education once they turn 3”. But despite efforts to ensure long-term investments in Fixed Deposits (FD), Mutual Funds, Gold, and insurance plans, they seek ways to bridge the small amount required.  With parents striving to ensure quality education in India for their kids, it is essential to know about education loans.  Here’s your guide to understanding how education loans work What does an education loan imply?   An education loan is an offering that banks provide to guardians to fund a child’s secondary and higher education requirements. Different banks and government institutes offer education loans at other criteria and interest rates. An education loan is of 2 types - Domestic and Overseas.  General eligibility criteria for education loans in India  Education loan eligibility criteria  You must be a citizen of India  The age limit must be 18-35   The child must have a solid academic record  The child must ensure a confirmed admission receipt from the respective educational institution in India  They must be undergoing a post-graduation/ graduation/ diploma  The institution must share the UGC or AICTE affiliation  Students pursuing a full-time graduation course must have a co-signer on loan.  NOTE: These criteria may or may not vary depending on the bank offering these loans. You are advised to check the specific eligibility criteria for the education loan you are interested in. What does an education loan cover?   It covers the following costs:  Tuition fee  Hostel fees  Stationary  Exam fees  Library fee  Books fee  Educational trips Documents required to get a quick education loan approval in India   Seeking approval from a lender is easy if you meet the document requirements without fault.   Documents required:  Accurately-filled loan application form  A recent photograph of the student  Age Proof (Aadhar Card, Identity proof, voter ID card)  Address Proof  Admission proof (Admission letter)  Marksheet (10th/12th/graduation/GRE/TOEFL/IELTS, whichever is applicable)  Income proof of the co-signer on the loan. He can be a guardian/parent.  Bank statements (Last six months)  The previous two years’ income tax returns along with income computation  Audited balances sheet for previous two years  Proof of yearly revenue/salary receipts  Documents of assets for collateral requirements on the loan Read more: Pay off an education loan How does an education loan work?   An application process may vary from bank to bank. However, here is the general way an education loan works:  source: pexels Step 1 - Explore the interest rates from different banks  Check the factors below before applying:  Total costs over EMI (Equated Monthly Instalments)  Repayment period  Money margin: It is an upfront cost to pay on a loan. If the loan exceeds 4Lakh, the lender exempts the margin.  Check the bank’s partnership with NBFC (Non-Banking Financial Companies)  Check the tax deductions you may qualify for under Section 80 E of the income act. It is a tax deduction on education loans for higher education. A taxpayer applying for a child’s education abroad can qualify.  Guarantor or collateral over the loan  Step 2- Fill out the loan application  After choosing the bank to partner with and checking the terms, fill out the loan application. Check whether or not the banks provide loans for a particular course. Always check the loans for the periods before applying. Banks offer loans for both parts and full-time education.  Fill out and submit the application form with the documents mentioned below:  Passport size photographs (2)  Graduation, secondary or higher secondary Marksheets  KYC documents (Voter ID, PAN card) ID address  Age proof  Signature proof  Guardians/Parent’s income proof  Documentation of immovable property  You can file for a loan either online or offline at your convenience  Step 3 - Confirm the loan sanction   After meeting the requirements and attesting to the required documents, you will receive a mail detailing the loan terms and elements. Read carefully before signing. If applying for a secured education loan, the lender may ask you to provide collateral details.  Read more: How to avoid education loans? How does an Education loan repayment work?   After the loan sanction, the bank provides a memorandum period. It is a defined payment gap in the loan tenure until which a borrower is not liable to pay any repayments towards the loan. Banks generally provide a 6-12 months memorandum period. However, education loans have competitive interest rates. Talk with your lender and begin your repayments early.  If the lender agrees, you can improve your credit score by paying off the loan early. Enquire for pre-payment loan fee (if any). Do so only if not availing of tax deductions (Section 80E) on the loan. Else, qualifying for tax deductions, in this case, stands next to null. It is known as an auto-deduction loan.  Repayments vary from bank to bank according to the loan amount availed. If unmanageable, you can set up an auto-debit system to make monthly payments towards the loan.  Conclusion  Finding a low-interest and non-collateral educational loan is tasking. Edufund eases the process for you by filtering out the best loan options from multiple banks and NBFC partners. Contact us for more details. FAQs How does an educational loan work?   An educational loan is a financial product that helps students and their parents fund education expenses. The borrower borrows money from a bank or financial institution, and after completing the education, they start repaying the loan along with interest, typically in monthly installments over a specified period. The interest rate and repayment terms vary depending on the loan provider and the borrower's creditworthiness.  Is education loan interest-free?  Education loans are generally not interest-free. Interest is charged on the loan amount, and borrowers are required to repay the principal amount along with the accrued interest over the loan tenure.  Is taking an education loan a good idea?   Taking an education loan can be a good idea if it enables you to pursue higher education and career opportunities that would otherwise be financially challenging. However, consider the repayment terms, interest rates, and your future earning potential before making a decision.  TALK TO AN EXPERT

In the previous article, we discussed how to plan for your child's bachelor's in Australia. In this article, we will talk about what to tell your child about education loan It is quite interesting how one day students go from choosing their study course to choosing a student loan for their higher studies. Many students choose to take an education loan and end up struggling with it. It is mainly because they don't have clarity about how education loans work.   So, it only makes sense to step in as a parent to have a serious conversation regarding an education loan with their kids. It's never too late or too early to talk to your child about the cost of college. Moreover, if you haven't saved much for your child, you can always start doing it now. Bear in mind that every penny counts.   Apply for Education Loan What should your child know before taking an education loan? 1. They need to repay the loan with interest  When one takes a loan, one must repay all of it, including interest. No other time can be best for you to explain this to your kid. Tell them how the loan-taking procedure works. You will also come across certain student loans that do not add up the interest when your kid is in college. Nevertheless, repaying it with interest is a must for all other loans. The interest levied on private and government student loans works similarly to auto loans or home mortgages.   Education Loan Schemes in India and Other Countries Read More 2. There are different types of loans  While you talk to your child about taking an education loan, ensure that they understand the difference between the different types of loans. So, when it's the right time, fill out the loan application form with your child. It will give them a better understanding of the loan procedure.   You will come across various education loans that cater to the requirements of different education programs. You may apply for a loan based on the type of education course like diploma and certificate courses, skill-based courses, and studying abroad loans.   Regardless of the course, two main categories of student loans are:  Domestic education loan: Those who want to pursue their education courses in their own country can apply for a domestic education loan. Your child must meet the eligibility criteria and obtain approval from the lenders.   Study abroad education loan: This loan is beneficial for those who wish to study in a country different from theirs. The student has to secure a seat in an institution among the eligible list of colleges/universities to get their loan approved.  Co-Applicant Role in Education Loan Read More 3. Courses that get loan preference  Usually, engineering, medical, and management courses get faster approvals for a student loan. Financial institutions provide a loan based on the course type you select, such as:  Graduate student loan: This loan is applicable to those who want to continue studying in institutions in their own country. It is specifically for students who plan to pursue postgraduate degrees after completing their undergraduate programs.   Undergraduate education loans: These loans are available for those students who want to pursue their undergraduate degree courses.   Professional education loans: Many banking institutions offer loans to students who want to go for career education.   The most important factor of a loan provider is the applicant's repayment capacity. Therefore, it makes sense to apply for a loan for courses that have a higher chance of giving you better job placements and offer a high-income generation.   Best Banks for Education Loans in India Read More 4. High-amount loans require a third-party guarantor  Student education loan amounts may vary from Rs 1 lakh to Rs 30 lakh. For loan amounts up to 4 lakhs, you need not provide any third-party guarantor or collateral. Nevertheless, for loan amounts above 4 lakhs, providing a third-party guarantor is a must. Almost all banking institutions will ask you to provide a co-applicant or a guarantor when applying for an educational loan. This is because when the applicant is unable to repay the loan, their guarantor has to take care of it.    Questions to ask before taking Education Loans Read More 5. The repayment period starts as soon as the course ends  Help your kids understand the loan repayment procedure. The applicant is responsible for repaying the loan. It is highly recommended that the applicant starts repaying their loan as soon as they can. The repayment period will start at the end of the course. Certain banks may offer a relief period of 6 months after the student’s course ends. The repayment period can be between five to seven years depending on various factors such as the value of the loan, interest, EMI, etc.   Educate your kids about the process of applying for a student loan. Also, make them aware of the consequences of not repaying the loan. This will only make them more responsible for each step they take while applying for a student loan. FAQs What is an education loan in brief? Education loans are loans for students that cover tuition, books and supplies, and living expenses. Can parents take education loans for kids? Parents can sign as co-applicants for an education loan for their children. However, they are not the main applicants because an education loan is issued to the student. Is it wise to take an education loan? Yes, it is wise to take an education loan if the course offers a great ROI if you are short of funds or do not want to dig deep into your savings and understand the impact of taking legal responsibility as a student.

In today's rapidly evolving world, education plays a vital role in shaping our professional paths and opening doors to countless opportunities. However, the rising cost of education often poses a significant financial barrier for many individuals. This is where education loans come into the picture, offering a way to finance higher studies and bridge the gap between aspirations and affordability. In this blog, we will explore the advantages and disadvantages of taking an education loan, providing a comprehensive understanding of the pros and cons associated with this financial decision. https://www.youtube.com/watch?v=gbPJ_XjILUA Advantages of taking an education loan Education loans offer several advantages that make them a viable option for individuals seeking financial assistance to pursue higher education. Here are some key advantages to consider: Accessibility to Education: Education loans make education accessible to a broader range of students who may not have the immediate financial means to fund their studies. By providing funds to cover tuition fees, books, accommodation, and other related expenses, education loans enable individuals to enroll in desired courses and institutions. Flexible Repayment Options: Most education loans offer flexible repayment options, allowing borrowers to start repayment after completing their studies or opt for affordable installment plans. This flexibility provides students with the necessary time and resources to focus on their education and secure employment before beginning loan repayments. Building a Positive Credit History: Taking an education loan and making timely repayments can help individuals build a positive credit history. This can be advantageous in the future when applying for other financial products, such as mortgages or car loans, as lenders often consider creditworthiness. Potential Tax Benefits: In some countries, education loan interest may be tax-deductible, offering potential tax benefits for borrowers. This reduces the overall cost of borrowing and provides additional financial relief. Focus on Education: By obtaining an education loan, individuals can focus on their studies without the constant worry of managing immediate financial obligations. This allows students to dedicate their time and energy to academic pursuits, maximizing their learning experience and increasing their chances of academic success. taking education loans Disadvantages of taking an education loan While education loans provide an avenue for individuals to finance their education, it is important to consider the potential disadvantages that come with borrowing. Here are some key points to be aware of: Accumulating Debt: Taking an education loan means accumulating debt that needs to be repaid. Depending on the amount borrowed and interest rates, this debt burden can be significant and may take years to pay off, impacting an individual's financial situation for an extended period. Interest Accrual: Education loans typically accrue interest over the repayment period, adding to the overall cost of borrowing. Higher interest rates can significantly increase the total amount repaid, making education more expensive in the long run. Repayment Obligations: Loan repayments can be a financial burden, especially for individuals who are just starting their careers or facing other financial obligations. Monthly loan payments can limit financial flexibility, affecting one's ability to save, invest, or pursue other life goals, such as homeownership or starting a business. Risk of Default: Failing to meet loan repayment obligations can lead to serious consequences, including damage to credit scores and potential legal action. Defaulting on an education loan can have long-lasting effects on an individual's financial health and future borrowing opportunities. Dependency on Income: Loan repayments are often tied to income, which means that individuals may be required to allocate a significant portion of their earnings toward loan repayment. This dependency on income can limit career choices and job flexibility, as individuals may feel compelled to prioritize higher-paying jobs to meet their repayment obligations. https://www.youtube.com/watch?v=uPGJr3BiXpI Considerations for Taking an education loan Before committing to an education loan, it is essential to consider various factors to ensure a well-informed decision. Here are some key considerations to keep in mind: Financial Planning: Evaluate your current financial situation and future earning potential. Create a budget to determine the amount you can comfortably borrow and repay without compromising your financial stability. Alternative Funding Options: Explore scholarships, grants, part-time work, or employer-sponsored education programs as alternatives to borrowing. These options can help reduce the amount of debt you need to take on. Loan Terms and Conditions: Thoroughly research and compare loan options from different lenders. Pay attention to interest rates, repayment terms, fees, and any hidden charges. Understand the implications of deferment, forbearance, or early repayment. Future Career Prospects: Consider the potential return on investment for your chosen field of study. Research the job market and earning potential to ensure that your education loan is aligned with your future career prospects. Ultimately, by carefully considering the advantages and disadvantages, individuals can make informed decisions and strike a balance between financing their education and managing their long-term financial well-being.  When approached responsibly, education loans can be a valuable tool in achieving academic dreams and building a brighter future.

Education loans offer instant financial relief. But before we guide you on how to find the best education loan for yourself. Here is a sneak-peak into the rising costs of education and what kind of loan amount you might need. The cost of education, especially higher education, is increasing at a rapid pace. For instance, in 2016, tuition fees in IITs were increased from 90,000 INR to INR 2 lakhs per annum. Moreover, a medical or a management course costs anywhere between INR 10 lakhs to INR 20 lakhs in India.   If your child pursues the same course abroad, costs can go up to INR 50 lakhs! Self-financing is one of the best options. However, sometimes, parents can fall short of arranging the entire cost of education for their kids. With a good education loan, you can bridge the shortfall.   With the cost of education skyrocketing, education loans greatly assist parents in meeting their child’s aspirations. With an education loan, parents can afford to send their children for higher studies abroad. Here are some strategies to help your child find the best education loan. 1. Research the best interest rate   Look for the best interest rate when selecting an education loan for your child. Education loans don’t come cheap and the interest charges can be hefty. But in most cases, banks can decrease the interest rate if the EMIs are paid properly on time. Moreover, if the loan is repaid without default, you can evade higher interest rates.   2. Collateral clause  Since defaults are pretty common, lenders insist on collateral for education loans. It is crucial to be aware of collateral before applying for an education loan. The collateral for an education loan usually involves fixed deposits, a house, land, etc. Note that with collateral, you can decrease interest rates.  3. Co-borrower or guarantor   Note that it is a standard practice for most financial institutions to insist on a parent as the guarantor. The number of years of service the parents possess plays a crucial role here. If you are about to retire while applying for an education loan, the lender won’t consider you as a guarantor. Moreover, you have to incur higher interest rates in the absence of a guarantor.   source: pixabay 4. Importance of margin money   You should check how much the lender will fund and how much you need to pay as a down payment. However, this requirement varies based on the lender, loan amount, and place where your child will study.   For instance, PSU banks usually charge a 5% margin for loans above Rs. 4 lakhs. On the other hand, they will charge a 15% margin money for studies abroad. Private banks may fund without any margin requirements. But be careful, you may want to refrain from paying higher interest rates just to avoid paying the margin.   Learn from Experts: Satendra Singh, Loan Expert with HDFC Credila talks about education loans! https://www.youtube.com/watch?v=Q4LEzHbW75o&t=141s 5. Select the right bank   A number of banks offer educational loans for various courses in India and abroad. You should select a bank that offers you the best moratorium period. Furthermore, the bank should offer you competitive interest rates so that your child finds it easy to repay the loan. It is usually recommended to select a lender that offers you the best loan terms rather than finance.   You should also check if you can pay EMIs in advance or make part payments towards the loan. It is imperative to learn about all the service charges that are applicable to your education loan. Parents opting for education loans should know that both part payments and prepayments come with a warranty.   6. Plan for repayment   Budgeting is always an important part of the repayment of the education loan. Once your child starts earning, they need to strategize to pay back the loan. Inculcating healthy financial habits in your child is, therefore, crucial for the effective repayment of the education loan on time. Loans can become burdensome after a while. Hence, it is better for your child to know how to repay properly.   7. Look for tax benefits   Many parents do not look at the tax benefits offered under Section 80E of the Income Tax Act on the interest you pay for the educational loan. However, you should apply for this loan from a gazetted financial institution or an Indian-scheduled bank. However, these deductions are available only for the initial assessment years and seven years after.      8. Apply for the loan in installments   To make it easy for your child, always apply for an education loan in installments. Lenders charge money on the amount of money disbursed. Since you have to pay tuition fees every 6 months, then try to ask for a disbursement plan that helps you reduce the interest and pay your bills on time. Interest accumulated will be less when you apply for the loan in installments.   If you are looking for the right education loan for your child then follow these strategies and help them secure the right deal to kickstart their education dreams.  FAQs Which bank is best for educational loans? There are many banks in India that offer educational loans for students starting at 8-9% interest rate. The interest rate depends on your profile and it differs from person to person. You can apply with EduFund and analyze which bank suits your application in the best way possible. Do we get a 100% student loan? Yes, you can get 100% coverage for your student loan in some cases. Absolute coverage is given in rare cases and there is a limit on spending as well. Is education loan interest-free? No, education loans are not interest-free in India. Students do pay interest starting at 8-9% depending on your application. TALK TO AN EXPERT

Studying abroad may be a rewarding experience that opens up a world of knowledge and opportunity. However, pursuing education abroad sometimes entails a significant financial load. Many students may end up with large student loan debt as a result of the cost of tuition, living expenses, and other related fees. Thankfully, there is hope in the shape of debt forgiveness or discharge programs created especially for loans taken out for studying abroad. In this blog, we have discussed the process of applying for loan forgiveness or discharge. Understanding loan forgiveness and discharge Individuals may still be burdened by student loan debt years after they have finished their school. However, programs for loan discharge and forgiveness give borrowers who are having a hard time making their loan payments comfort and optimism. Let's examine the ideas of loan discharge and forgiveness to comprehend their relevance better. Loan Forgiveness: The elimination of a borrower's responsibility to repay all or a portion of a debt is referred to as loan forgiveness. Usually, this relief is offered upon the completion of particular criteria or prerequisites. Depending on the forgiveness program and the borrower's eligibility, the amount forgiven may change. Loan Discharge: The total termination of a borrower's responsibility to repay a debt is referred to as loan discharge. Exceptional situations, such as when the borrower suffers a permanent disability, the educational institution closes, or the borrower dies, are normal when it is given. The borrower is released from any further repayment obligations and is not taxed upon loan discharge. https://www.youtube.com/watch?v=HEgDlLoxsjo Types of loan forgiveness or discharge programs Borrowers with loans for international education are eligible for a number of loan discharge and forgiveness programs. You may choose the programs that best fit your needs by understanding the possibilities. Here are some typical programs to take into account: Public Service Loan Forgiveness (PSLF): This program allows borrowers who have made 120 qualifying payments while working full-time for qualified employees in the public sector and have eligible federal Direct Loans to have the remaining balances forgiven. It is a great choice for borrowers who want to work in the public or nonprofit sectors. Total and Permanent Disability Discharge: Borrowers who experience a total and permanent disability may qualify for loan discharge. This program relieves them of the obligation to repay their federal student loans. Documentation from a physician or the Social Security Administration is typically required. Closed School Discharge: If your school closes while enrolled or shortly after withdrawal, you may be eligible for loan discharge. This program applies to federal loans, ensuring that you are not responsible for repaying loans taken for an educational program that was abruptly discontinued. Other Programs: Depending on your circumstances, you may also explore programs such as Income-Driven Repayment Plan Forgiveness, Perkins Loan Cancellation, Military Service Loan Forgiveness, and more. Each program has specific criteria and benefits tailored to different situations. Remember to thoroughly research each program, review eligibility requirements, and gather the necessary documentation before applying. Understanding the available options empowers you to choose the program that best aligns with your specific needs and goals. https://www.youtube.com/watch?v=tdwqQH0xkFw Applying for loan forgiveness or discharge Applying for loan forgiveness or discharge requires careful attention to detail and adherence to specific procedures. Follow these steps to navigate the application process effectively: Research Programs: Begin by researching the forgiveness or discharge programs applicable to your abroad education loans. Understand their requirements, benefits, and deadlines. Ensure that you meet the eligibility criteria for the chosen program. Gather Documentation: Collect all the necessary documentation required for your application. This may include loan statements, payment history, employment records, proof of study abroad program eligibility, and any other supporting documents specific to the program you're applying for. Keep your documents organized and accessible. Review Application Instructions: Read the application instructions thoroughly to understand the specific requirements and procedures. Be aware of any deadlines and ensure that you comply with all instructions to avoid delays or potential rejections. Complete the Application Form: Fill out the application form accurately and provide all requested information. Double-check for errors or missing information before submitting. For online applications, ensure a stable internet connection and save a copy of the submitted form for your records. Submit the Application: Submit your completed application form and all supporting documentation through the designated channels. For federal loans, this is typically done online through the loan servicer's website. Private loans may have different submission processes, so consult your lender for guidance. Follow-Up and Monitor Progress: After submitting your application, follow up regularly to track its progress. Maintain open communication with the loan servicer or lender and inquire about any additional documentation or updates required. Keep records of all correspondence for reference. Be Patient and Persistent: The loan forgiveness or discharge process can take time, so be patient. It may involve multiple stages of review and evaluation. If you encounter any issues or experience delays, don't hesitate to reach out for clarification or assistance. https://www.youtube.com/watch?v=uPGJr3BiXpI When loan forgiveness or discharge might apply for abroad education loans Loan forgiveness or discharge for abroad education loans can be applied in various circumstances. These may include the closure of the educational institution, fraudulent activities by the institution, the borrower's disability, or even the borrower's death. Understand the specific conditions and requirements for each circumstance and gather the necessary supporting documentation to strengthen your application. Applying for loan forgiveness or discharge for abroad education loans requires understanding the eligibility criteria, gathering the required documentation, and following the application process diligently. By exploring the available programs and adhering to the necessary steps, borrowers can alleviate their financial burden and achieve a fresh start in their financial journey.

A student may need more financial means to attend the institution of their choice, but an education loan can help. However, this practical means of paying for your education also requires repayment.  Repaying your student loans decreases your debt-to-income ratio, gives you financial freedom, boosts your credit score, and helps you save money while pursuing other financial goals. In this blog, we'll go through strategies to keep your money in order and organized while handling your student loan payments while you're studying abroad. Create a sound financial plan When enrolled in the course, use money wisely. Get a firm understanding of your debt situation, then create a budget to deal with it. Save money on something other than unimportant things. Use the right insurance coverage to cover your medical costs. As part of your financial strategy, look for part-time work so you can regularly set away money. It matters, no matter how little. Over time, smaller sums that are methodically put together build up to larger ones.  This will help you accumulate cash reserves that you may use to sustain yourself while looking for work when your degree is over. Furthermore, you will be prepared to make the EMI payments on your student loans until you get your first paycheque. You earn an additional benefit if the country where you are pursuing your course of study has a higher currency value than the Indian Rupee because the study loan's currency denomination is Indian Rupees. Advice for students who are considering studying Abroad Read More Always build an Emergency fund  You can get started by saving away a tiny sum of money each month. By the time your student loans are repaid, you may try to have amassed a sizable sum of money. According to the calculation above, your emergency fund should be Rs 40,000 x 6 months = Rs 2.4 lakh if your normal, recurring, and unavoidable monthly costs total Rs 40,000. Find some good investments This might be a wise strategy for paying off your student loan debt after you start working or if you have additional money. The goal is to invest for a longer period. Invest in a reliable mutual fund or a fixed deposit that offers an annual return that is fixed. By using the interest or returns from your assets, you can use this technique to pay off some of your loan EMIs. Consequently, you will only need to use some of your income to repay the loan in full. Your money will continue to grow as a result. You will be able to pay off your debt by creating an asset. https://www.youtube.com/watch?v=tdwqQH0xkFw Create extra income After the moratorium period is passed, the majority of students begin paying. However, it is advisable to start working part-time while pursuing a degree. Pay down your student loan debt with the money. We millennials know how to use the internet to get some side income. So, start promoting your services as a freelancer online or as a social media influencer. If the traditional route appeals to you more, apply to be a TA. Working even a small amount of time may increase your income and reduce your debt.  Pay more Paying more than the required minimum each month is one of the most straightforward strategies to eliminate debt. Any additional funds you provide to the bank are subtracted from the principal, so even a modest amount can go a long way because it lowers interest. You should prepay the debt partially or entirely if you have enough money. Save more While making monthly payments toward student debt repayment is a good idea, creating a recurring savings account is even better. Automate the procedure to ensure consistency and make it easier to administer. Each month, deposit a certain amount into it. Use the accumulated corpus to pay back the student debt.  Keeping track of any financial windfalls is another way to increase your savings. Don't spend money received from family members, friends, or elders, a signing bonus, or a tax return. Use it to settle a portion of the debt. Self Financing vs Students Loans Read More Consider refinancing your loan There are two approaches you may take: Check to see if you may move your loan to a bank with lower interest rates. Ask your current bank to cut the interest rate. The danger is lessened once you begin working, so the lender could be willing to reward you with a better interest rate. Finally, repay your study abroad loan before receiving your first income. Take the steps right now to live a stress- and debt-free life.

Securing financial support through education loans is a crucial step for graduates and professional students pursuing advanced degrees. However, the loan process for these students presents unique challenges that require careful navigation. In this comprehensive guide, we will explore the intricacies of obtaining education loans specifically tailored to graduates and professional students. Understanding education loans for graduates and professional students Education loans are essential financial tools for graduate and professional students pursuing advanced degrees. These loans provide the necessary funds to cover tuition, fees, and living expenses. Graduate and professional students have specific considerations when it comes to education loans. They typically face higher tuition costs, longer program durations, and specialized career paths.  Understanding the types of loans available, such as federal loans, private loans, and institutional loans, is crucial. Graduate and professional students should also be aware of the loan repayment options and potential loan forgiveness programs. By understanding education loans, students can make informed decisions about their financial future. Preparing for the Loan Process Preparing for the loan process is crucial for graduate and professional students seeking education loans. Here is a guide: Start by creating a comprehensive financial plan, assessing the total cost of education, including tuition, fees, and living expenses.  Research and compare different loan options, considering factors such as interest rates, repayment terms, and eligibility requirements.  Improve creditworthiness by maintaining a good credit score and addressing any outstanding debts.  Gather all necessary documentation, including tax returns, financial statements, and identification documents.  Finally, seek guidance from financial aid offices or loan counselors to ensure a smooth application process and maximize available financial aid options. https://www.youtube.com/watch?v=tdwqQH0xkFw Federal student loans Federal student loans are a valuable resource for graduate and professional students seeking financial assistance to pursue their advanced degrees. These loans, provided by the U.S. Department of Education, offer several benefits and protections. Here's what you need to know: 1. Types of Federal Loans: Graduate and professional students can access two main types of federal loans: Direct Unsubsidized Loans and Direct PLUS Loans. Direct Unsubsidized Loans are available to most students, regardless of financial need, and accrue interest while in school. Direct PLUS Loans require a credit check but can cover expenses beyond the unsubsidized loan amount. 2. Eligibility: Graduate and professional students are generally eligible for federal student loans as long as they are enrolled in an eligible program at least half-time. U.S. citizenship or eligible noncitizen status is required. 3. Application Process: To apply for federal student loans, complete the Free Application for Federal Student Aid (FAFSA). This form determines your eligibility for federal aid, including loans. Be sure to submit the FAFSA by the designated deadline. 4. Loan Limits: Graduate and professional students typically have higher loan limits compared to undergraduate students. The specific loan limits depend on the loan type, academic program, and dependency status. 5. Interest Rates and Fees: Federal student loans have fixed interest rates determined by Congress. Interest rates may vary depending on the loan type and disbursement date. Federal loans may also have origination fees, which are deducted from the loan disbursement. How to choose the best education loans? Read More Private education loans  Private education loans are another option for graduate and professional students seeking additional funding for their advanced education. Unlike federal loans, private loans are provided by banks, credit unions, or other private lenders. Here's what you need to know: 1. Eligibility and Application: Private loan eligibility and application requirements vary among lenders. Generally, a good credit score and a co-signer with a strong credit history are beneficial for securing private loans. 2. Interest Rates and Terms: Private loan interest rates are determined by the lender and can be fixed or variable. Terms and repayment options also vary, so it's important to compare rates, fees, and repayment terms from multiple lenders. 3. Loan Limits: Private loan limits depend on the lender and may vary based on factors like creditworthiness, program of study, and cost of attendance. 4. Considerations: Before choosing a private loan, carefully review the interest rates, repayment terms, and borrower benefits. Be aware that private loans may have fewer repayment options and borrower protections compared to federal loans. 5. Exhaust Federal Options First: It's generally recommended to exhaust federal loan options before considering private loans due to their typically lower interest rates and more flexible repayment options. Institutional loans and other financial aid resources Institutional loans and other financial aid resources are additional avenues for graduate and professional students to secure funding for their education. Institutional loans are loans offered directly by universities or professional schools. These loans may have unique terms and eligibility criteria, so it's important to explore options specific to your institution. Additionally, graduate and professional students should also explore other financial aid resources, such as scholarships, grants, and work-study programs. These resources can help supplement education costs and reduce reliance on loans. Research and contact your school's financial aid office to inquire about institutional loans and explore available financial aid opportunities. Repayment strategies and loan management Repayment strategies and effective loan management are crucial for graduate and professional students to successfully navigate the repayment phase of their education loans. Here are some strategies to consider: 1. Understand your repayment options: Familiarize yourself with the various repayment plans available, such as Standard Repayment, Graduated Repayment, Extended Repayment, and income-driven plans. Each plan has different terms and monthly payment amounts. 2. Create a budget: Develop a realistic budget that considers your income, living expenses, and loan repayment obligations. Prioritize your loan payments to ensure they are made on time. 3. Explore loan forgiveness programs: Investigate loan forgiveness and repayment assistance programs specific to your field, such as Public Service Loan Forgiveness (PSLF) or income-driven repayment plan forgiveness options. These programs can help reduce your loan burden over time. 4. Communicate with your loan servicer: Stay in touch with your loan servicer to ensure you have accurate information about your loans and to address any questions or concerns you may have. 5. Consider refinancing or consolidation: Explore options for refinancing or consolidating your loans to potentially lower interest rates or simplify repayment by combining multiple loans into a single payment. 6. Stay proactive and responsible: Make your loan payments consistently and on time. If you encounter financial difficulties, contact your loan servicer to discuss potential deferment, forbearance, or alternative repayment options. Remember, education loans are investments in your future, and with careful planning and responsible management, they can serve as a stepping stone toward your professional goals.