Looking at 4 misconceptions about education loans

1. Looking at 4 misconceptions about education loans Education loans have been helping students study at their chosen universities and colleges, and carve out a commendable career path for themselves. Getting an education loan has become easy due to the streamlined process put in place by many education loan lenders. But many students are unaware about how education loans work. There are many misconceptions that stop students from getting the most out of education loans. In this article, we will tell you about 4 misconceptions students have about education loans. 1. One has to keep margin money ready Some lenders finance only some part of the education expenses while other lenders cover the complete education expenses of students. They do not expect students to contribute margin money for their own higher education. This is a saving grace for students who have the calibre to pursue higher education in their chosen trade but cannot afford to pay the fee for that course. 2. Education loans cover tuition fee only Students think that if the lender offers to pay their college tuition fee, they have got the best deal. This deal is good for students that stay in the same region as their college. All they have to do is travel to and fro from their homes to their college. But conditions change when students have to study in foreign lands. They have to make arrangements for their stay in a foreign city throughout the time they study their chosen course. In this case, NBFCs and private banks help. These lenders offer to cover the students’ college tuition fee and their travel expenses, accommodation expenses, the exam fee, the library fee, stationery expenses and so on. 3. One is supposed to start repaying the loan as soon as they complete the course

2. Many students think that they have to start repaying their education loans as soon as they complete their education. This is not true. The lenders do not expect their education loan borrowers to start repaying their education loans that way. Lenders offer moratorium periods to students. It is called the grace period. It usually is as long as 1 year from the student completing the degree or 6 months from the time the student gets a job, whichever comes earlier. The student can use this time to catch his or her breath and stash some savings to pull off the first few EMIs. 4. One cannot get a pre-admission education loan Students think that they can get education loans only if they have secured a seat at a university. This is not completely true. Although most banks have this as a clause, not all lenders put it in practice. Many lenders, like NBFCs, offer pre-admission education loans to students. So you can get education loans before you enrol into any course at any university. So, these are the 4 misconceptions that students have about education loans. We hope that after reading this article, you have understood education loans in a better way than you did before. We wish you all the best! Related Article: - Busting 3 myths about the education loans