A student loan is designed to help those students who don’t have sufficient savings to pay for university tuition, books and living expenses. It is quite different from other types of loans .The interest rate is substantially low in case of student loan .
Do have the Knowledge about the following points before applying for a student loan:
Creditworthiness: Before giving any loan the financial aid officers or the creditors measure the individual’s ability to meet debt obligation. So your credit score impact directly on the amount and type of loan. There are some loans which don’t look out for your creditworthiness so Individuals who have poor creditworthiness can apply for those types of loans.
Knowledge about the loan you are applying: One should have enough knowledge about the type of loan he/she is appling i.e. – its characteristics and specifications, as it will help in simplifying the application process.
Probable Future Earning Potential: Do some research work in your field to find out how much other graduates are earning and how they are managing up their debt obligations.
Repayment of Loan: Have knowledge about how much will be your EMI and duration for your debt repayment.
I f you are in the Martial: Special loan options with better terms and conditions are available for students who had worked or are working in the armed forces.
Before applying for loan lookout for other possible sources of funding like- if you’re working in armed forces then you are entitled for enlistment bonus, you can also earn through part time job during school time which can probably lessen down your debt amount.
Deciding to take a student loan is in itself an important financial decision of your life. So one should have thorough knowledge of the system from where you are borrowing and understanding of how you will go about paying it back.
Do share with us your views, comments on this blog by filling up the feedback section.