THINGS TO KEEP IN MIND WHILE APPLYING FOR EDUCATION LOAN
You get accepted to an exceptional university but find yourself tight on the budget. We understand that everyone cannot afford the high tuition fee of foreign university. To your relief there are lots of options to avail education loan as a student. There are private and government institutions that lend you money at minimal interest rates which you can repay after completing your study program. Education loans are more accessible now than ever. This blog offers you tips and general information to keep in mind when you are applying for education loans.
When you have made your decision about studying abroad you should start seeking education loans as soon as possible. Preferably you should start applying for loans at least 6-8 months in advance so you have enough time to come up with great applications for loan. Education loans will require you to complete various formalities by submission of documents to institutions offering loan.
TYPES OF LOAN
There are three main types of Study Abroad Loans: General Student Loans, Federal / Government Loans, and Private Loans. Each of these have different requirements for Application and diverse processes in place for when you need to apply.
Federal / Government Loans are usually issued to those with high financial aid needs. Private Student Loans for Study Abroad are given out through a Financial Institute / Company, such as a bank. Just ensure that the company lending the loan is credible and trustworthy. General Student Loans vary from university to university. These loans usually don’t have many requirements in order to apply and are open to almost every student.
Basically, Student Loans vary from institution to institution, so it will be your job to figure out what and when you need. Be sure you research the type of Study Abroad Loan you need before registering for one. Regarding any queries, you can always contact your University’s Financial Aid Office.
ELIGIBILITY OF INSTITUTION
It is imperative that the university you apply for is internationally recognized and accepted. Without eligibility of your Institution, there is no point of applying for a Loan. You can check to see if your University meets the eligibility criterion from online resources.
A cosigner is someone who can legally sign loan papers for you so you can obtain the loan. They must have a good credit rating / score in respective country. Having a creditworthy cosigner can not only make it easier for you to get a loan, but it can also reduce your interest rate. You can choose any family members or friends as your Co-Signer and Co-Signer will increase your chances of getting a Loan for Study Abroad.
DISBURSEMENT OF LOAN
Student loans for study abroad are typically disbursed a few days before your program starts, but it ultimately depends on the schedule you’ve agreed upon with the lender. Be sure to double check your Loan Application to ensure that you chose the correct disbursement period to avoid any financial trouble during your studies in any foreign country.
REPAYMENT OF LOAN
You will eventually have to repay the loan after you complete your study program. While you are applying for education loan read the terms and conditions thoroughly and understand the structure and mode of repayment of loan. Carefully learn about the interest rate. You will be responsible for paying back the amount you borrowed plus an additional interest at agreed percentage.
There are several scholarships and funds offered by institutions as well as universities. These are highly competitive and have a completely different way of working. You should research and prepare for the same in case you are interested in this option.