Education is the tool that can be used to change the world. It has such power, and a means to earn respect in the society. But with fewer resources and race to become the best, the access to elite colleges often gets restricted by financial needs. To overcome such restriction students usually opt for student’s loan. Inefficient handling of personal finance, not getting a good paying job and many other such factors make it difficult to for a student to pay the loan. Therefore here is a guide to help you in getting over this situation.
- Do not default on your loan-Make the best practices of personal financing. Learn about this topic, search on the net and get as much information as you can. Save money here and there and always repay your loan when the time comes. Do not unnecessarily default on your loan. Such acts result in bad credits and can create a lot of problem in future. Better maintain the account and avoid any such problem.
- Use your friendly gadgets to sort out things– Use the internet to search for the plans that suit you the best regarding loan repayment. For simplification, you can go with loan EMI calculator, as provided in this website, that gives you the EMI amount instantly along with a graphical representation that shows the degree of principal and interest to be paid by the time of completion. Use it and make a quick comparison of different loan plans and choose the best one as per your need.
- Get the most out of preparation period: The preparation period or in the technical term, the moratorium period is your time to collect funds and all your savings to get ready for the payment phase. This moratorium period or also known as repayment holiday is usually a year after your studies over or six months after your job commence whichever comes earlier. So preparing yourself during this period makes it easy to repay for the EMI after the period.
- Exploring different types of schemes: There is a plan that allows you to take loans in parts. In that way, the burden of interest is lowered. Reducing the overall burden from the very beginning of repayment holiday is a good way to reduce the overall EMI that you will have to pay afterward. There is also a special scheme for girls who can get a loan at reduced interest. Also, there is a special loan that provides extended moratorium period to economically backward students.
- Search for ways to earn: The student can get flooded with scholarship offers, competitions with prize money, paid part time services and much more. In this way, you can earn some money and get funds in advance to clear your debt with ease.
There are many things to consider before moving on with the idea of getting an education loan. A well-planned startegy an education loan will ensure that your study period goes well and at the same time you take care of your finance.