What is a Student Loan ?
A Student Loan is the financial help provided to students so that they can pay for post – secondary education. This money will help them to pay there associated fees of tuition , books , supplies and there living expenses. It becomes sometime difficult for parents to bear with the education expenses of there children. But as education is the most important part of Child life , Government and Financial Companies promote Education loan for students.
GOVERNMENT STEPS TOWARD EDUCATIONAL LOANS
The Indian government has launched several websites by the agenda “Education For All ” and ” Pdhega India , Tabhi toh Agge Bhadega India “. These two quotes encourage students to study and get a quality education from colleges although they are expensive. Government has started a website known as” VidyaLakshmi” for students seeking educational loan . Government has also included and prefered several Government Banks including State Bank Of India , Central Bank of India , IDBI Bank , Bank of India to students opting Education Loan.
RATE OF INTEREST FOR EDUCATION LOAN
In developing countries like India Education plays a very important role. Government focus on education of each and every child and students seeking education loan. They have to pay the rate of interest on the amount they opt is lower than the other loans . Maximum interest rate charged by Banks is six to seven percent only. Also, in some special cases government didn’t charge any interest rate . An additional benefit for students is that they can’t be punished if they become bankrupt , but full inquiries takes place.
THINGS THAT SHOULD BE KEPT IN MIND OF STUDENTS BEFORE TAKING LOANS
Some students seek personal loan by thinking that loans can be easily paid back by their expected starting salary with the easy pay back . They often think that they will earn enough after college to handle their student loan. But the idea of finally graduating from college and getting is foot in the door of your expected job with much salary that you will pay back your loan amount plus your household expenses is no longer existing.
In the world full of competition Students are often misguided and opt for student loan without thinking about the future. So take loans with full Wealth Planning Strategies.
Students also thinks that they shouldn’t bother paying back there student loan. Because they’ll always be there so , let me correct you my friend that as soon as you take your foot out from the college , bank will start poking you for repayments.
However the Student Loan is good for higher education but it must be Full Wealth Planned.
By- Yash Garg