When you make up your mind to avail an education loan, it becomes essential to do a little bit of prior research. Do the needed homework to find out more about loan schemes that would fall under your estimated budget. By opting for the wrong education loan, you may remain short of funds even after availing a loan. When you are skeptical about how much money to borrow and what will be the interest rate on the amount borrowed, you can straight away go to any of the online banking sites and make use of an education loan calculator to compare between interest rates available. Students who have secure admission in any of the reputed college/university, have better chances of obtaining an education loan. However, this is not the only factor that is considered. Your overall performance during the previous academic years, GRE score, annual income drawn by the borrower’s family are some other factors which are assessed by the lender before sanctioning a study loan.
Before proceeding further, consider the following things:
- College fees of the chosen course
Estimated amount required for expenditures other than the college fees such as the cost of books, laptop, hostel and mess charges etc.
- Repayment modes offered by the lender
- Repayment tenure
Once you figure out with an education loan calculator about the amount that will be needed, youcan easily generate it by producing the relevant documentation. Apart from some important documents, it is vital to have a co-applicant. A co-applicant can be defined as someone who applies for a loan along with the borrower. Theco-applicant has to be employed so that his/her salary can be used to supplement the borrower’s eligibility. To put is in simple terms, a co-applicant is required so that the lender has more than one option to recover the debt. The borrower’s spouse, parents/guardian or siblings can be his/her co-applicant while availing a loan. People below 18 years of age (minors) cannot be considered as co-applicants. Also, the borrower has to be between 18 to 35 years to obtain a student loan.
Start preparing for the repayment, since the day you enter college/university. This way you will be left with sufficient funds at the time of reimbursement.