Education Loan

About Education Loans

Are you worried about your financial stability and don’t know how to complete your college education? Well, if that’s the case then you can try your hands on an online education loan. There are different types of education loans for students. However, you on your part need to come up with the best education loan that caters to your needs.

For instance, there are different loan types for graduates as well as undergraduates. Now, if you are undergraduate then the educational loan type you opt for will certainly differ from those opted by the graduates.The major benefit of education is that they enable students to complete their courses in spite of financial difficulties.

Things to be kept in mind while choosing an education loan:

There are a few things that need to be kept in mind while choosing an education loan – types of loans on offer and the organization that is providing them. The students should also be aware of the various terms and conditions of a particular loan.

Prior to opting for education loans, you need to first gain familiarity with the different kinds of student loans. An education loan can be rightly termed as a kind of financial aid from a financial institution or bank which allows a student to pursue higher education. They are possibly the best suited option through which a deserving candidate is able to pursue higher education and make his dreams turn into a reality.

You can avail education loan for professional, post graduation as well as graduation courses from any institute that has been approved by the central government and state government. In fact, there are multiple colleges and institutes that have joined hands with different banks so as to help the students with the needed help.

Education loan in India

If you want to continue your education in India then you can avail a maximum loan amount of 7.5 lakhs.Before approving the loan, banks take into consideration the feasibility of the borrower after a personal discussion with the students. Other factors that the bank takes into consideration include your annual income, family assets, how far the institute is reputed, the type of course you want to enroll into and much more.

If you have opted for a loan of amount of up to 4 lakhs then there isn’t any need for margin or collateral. Over and above, in this case, the rate of interest will in no way exceed the PLR or Prime Lending Rates. However, if you have opted for a loan amount of more than 4 lakhs then the rate of interest charged will be the PLR together with an additional one percent as interest. Some banks have special privileges for women or for those who come from premier institutes. Last, but the not least, you need to repay the loan within five to seven years with an extended notice period of one year.

Education loan in the US

The following are the different types of loans that are offered to the students in the United States of America

US Direct Loans

The direct loan program of the US Department of Education is named William D. Ford Federal Direct Loan Program. The program can be availed not only by students but also by schools and parents. The direct loans are provided to the students irrespective of their financial position or previous loan records.

Sallie Mae Student Loans

Sallie Mae offers education loans for both students and their parents. Its Smart Option Student Loan enables families to save up on a lot of money with three options for repayment, which are sure to be commensurate to any type of budget. In addition to the Smart Option Student Loan, Sallie Mae offers other educational loans:

• Career Training Smart Option Student Loan
• K-12 Family Education Loan
• Medical Loan
• Tutorial Financing Loan
• Dental Loan
• Bar Study Loan
• Global Health Loan

Chase Education Loans

Chase offers a couple of education loans – Chase Select Private Student Loans and Chase Private Consolidation Loans. The Chase Select Private Student Loans are a recognized program and cater to students at undergraduate and postgraduate level in addition to health professionals at the graduate level. The private loan service is a credit based one that helps students address monetary requirements in case financial aid like federal loans and grants are unable to do so.

The Chase Private Consolidation Loans allow students to group together various loans they have taken for educational purposes. This provides them the opportunity to pay off all their loans only once a month. Most of the times, these amounts are lesser than the ones they would have been paying otherwise.

Last updated : Sept 8,2011.