Widen Your Academic Credentials With An Education Loan
In the purview of education becoming expensive globally, several students coming from low or middle income families are deprived of opportunities to get admission in top notch universities and college to pursue higher studies. This is turn dents their career prospects and they find it difficult to find employment with reputed companies, who handpick apprentices and inters from top universities. In such a scenario, the best thing students can do to uplift their career prospects is to take an education loan.
Today there are several financial institutions both private banks and government agencies that offer education loans to the students. Most countries worldwide have government education loan schemes through which funds are disbursed to students who find it difficult to fund their educational fees themselves. The students’ loans provided by government agencies help several students to carry on with their education, even with their financial constraints.
Government Loan Schemes:
One of the striking features of government education loan schemes is that these loans have low and fixed interest rates. Students can use the loan amount to pay for tuition fees, books, accommodation and other related expenses. Students’ loans from government agencies are ideal for students coming from extremely low income families since it is the cheapest source of funds in terms of paying back the loan amount in the future. Besides, the government agencies also provide attractive cut-off to the students during payback. Sometimes, you may also get partial or complete wavier of your loan amount. There are different types of government education loans schemes, you need to review each type and apply for the loan that best suits your financial condition and educational needs.
Loan from Private Lending Institutes:
Apart from education loans from government agencies, students can also avail loans from private banks or other lending institutions if the government loan is insufficient to meet your education needs. However, you must know that the private loans are not guaranteed by the government and each institution have their own unique loan qualification criteria that you must meet to get the funds. Typically, the private financial institutions that offer education loans require a creditworthy co-signer to sign your loan application. The Co-signer takes the guarantee of repaying the loan on your behalf.
While most private finance institutes allow the students to repay the loan amount only after finishing their studies and getting placement you must know that the interest rates are much higher than the government loans. Depending on the lending institution’s policy, you would have to pay the interest at fixed rate or floating rate.
Thus, with the availability of loans options if you are really motivated student, your financial limitation should not deter you from going for higher studies. The key to get educational loans is to do a thorough research about the various loan options available and make a wise decision. Also, make sure that you don’t avail loan more than your requirement. No matter what your financial condition is it is important that you clearly explain the lender about your present financial status, educational goals and your future prospects to get the best deal.
Guest Post contributed by Lauren Devaney, a well-known loan adviser running a payday loan UK company offering fash cash loans to keep you going until your next pay day.