It takes minimum 1crore in Indian Rupees for a student to pursue his undergraduate and postgraduate degree at the prestigious colleges of the United States of America and the United Kingdom. If you are considering completing your Engineering or Management degree course at IIT and IIM, then the expenses will be around 20 – 30 lakhs. A middle- class person is not able to shell out this huge amount of money. So, an education loan will save the probable student and his/her family. But taking an education loan is a challenging task since after your parents it up to you for paying off the education loan with EMI’s. Moreover, sometimes there is no guarantee that you will get a higher paying job once you complete your education.
Though taking a student is loan is quite helpful but you must keep certain things in your mind before taking a student education loan. Here are the few points which are necessary to be discussed. This includes:
Is the desired education course is right for you?
You must consider and ask yourself if this course will be right for you. You must decide this while you keep in mind the scores of your competitive exams and CGPA. Moreover, you can talk to the previous students of the course and the Universities about the job opportunities and the placement record of the University or colleges .
You must consider the type of the jobs you will get after pursuing this course. Just remember that not all Universities offer decent placement and not all students get decent jobs. Before you apply for the loan, you must figure out the minimum salary you will get after pursuing the course. This will be the sign if you are capable to pay off the EMIs or not. Moreover, if you are not able to pay off the loan in the initial phase of your career, then you must have a Plan B to execute or convince your parents to pay off the EMIs till the time you will be capable enough to pay off the loan.
Calculate the rate of interest and monthly EMI’s.
Before you go for a loan you must compare all the available banks offering education loans at what rate of interests, amount of monthly EMI’s, loan duration, etc. for that you can user any loan or emi calculators online. In the past few years, banks have started to hike the interest rates due to a large number of defaulters. You must evaluate the education loan offered by all the banks, and take up the cheapest education loan. You must also try to pay off the loan as soon as possible since you will be ending up paying double the amount you have taken as loan. The extra amount is for the interest. So, it is better to pay the loan faster to save more money.
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So, here are the most important facts you need to reconsider before you opt for a loan. After you avail the loan, study hard and work smart to pay the loan before its duration.