The acquisition of skills, completing higher education and getting a professional degree has become the essentials to secure a stable job. But since educational institutions have become quite expensive, numerous lending organisations are offering student loan so that there is no hindrance in their education. There are many options available for the students from which they need to select one of the best student loans available for them according to their requirements. But numerous factors should be kept in mind while acquiring a student loan: •Eligibility for the loan: In case of not earning at the time of acquiring the loan, the parents/guardians can become the co-applicant of the student loan. It is recommended to have a co-applicant in full-time courses while the student's role is that of the primary debtor.
•Amount of the loan: The students should decide the amount of the loan based on the course fee, considering how much they can pay from their savings. They should carefully decide how much needs to be borrowed and only borrow as much as they can easily repay. •Details of the expenditure: The total costs such as the annual tuition fee, hostel fee, and development fee should be calculated before applying for the loan.
•Down payment: The student should consult his parents while deciding on the amount of money that can be spent while making the down payment. •Interest rates: Detailed research should be carried out on how much interest will be charged on loan and whether the interest rate will remain fixed throughout the repayment period or change according to the market trends.
•Loan Repayment Period: The students should look for the loan having a longer repayment tenure so that they can pay small EMIs and avail the benefits of tax saving. •Payments on time: Payments should be made on time to avoid being a defaulter as it can adversely affect the student’s career prospects besides affecting the completion of his course. Moreover, if the student is unable to repay the loan within the designated time, the chances of any financial institution granting him any loan in the future, becomes slim.
•Copies of the loan: The student must keep record of the papers received from the lending organisation related to the loan and its repayment. •Alternatives for the repayment of the loan: The students, who have taken a loan without any financial aid from their parents and are enrolled in such courses where job opportunities are late, need to consider other alternatives to repay the loan. Since all the financial organisations can grant the entire educational expense of the student, he must ensure that the student loan covers the tuition fees, living costs, travelling expenses and all his other expenses. The best student loans can prove to be boons for the meritorious students who are unable to afford their educational fees as they can be repaid when they start earning on their own.