Articles

Related links



Student education loan

happy students

Generally parents do arrange for their children’s education in advance but many times their forecast of the amount required for education is not correct. This can be due to rising education cost. Sometimes the parents are not in a position to pay the entire cost of education due to their limited income. In these situations student education loans play a great role. These loans are the loans given by government and the private banks for education purpose. The loans given by government generally have lower interest rates, do not require any co signer or a good credit record but they are of limited amounts.

Further the amounts of loans by government do not go up with the rising cost of education. Therefore to fill the gap between the cost of education and the government loans the private loans are required. The private loans do require a co signer who has enough income to repay the loan in case of default. In absence of co signer a good credit history is a must. All theses loans can be consolidated by taking consolidation loans from respected sources. The forms for student education loans can be filled manually or online. Upon completion of requirements the processing of the loans generally takes six to eight week hence the application for student education loans should be filled in advance. Many education institutions have counselors and best loan schemes in the college itself. They guide the students in the process of getting the loans. For the student education loans given by government there is a grace period provided generally of six months to one year within which the repayment of the loan should start. On failure of this the interest rate goes high. Depending on the increase in interest rate the loan can be repaid by taking another consolidation loan of lower interest rate and longer repayment period. While doing the repayment of loan the enquiry of any penalty for pre payment is must in order to save money. a consolidation loan can also be taken from the present loan lender which can be of lower interest rate and longer re payment schedule. While taking consolidation loans the processing fees and the loan associated charges should be taken into account before applying for certain amount of loan. Enquiry regarding the addition of these charges in the loan amount is possible is also important.


Before going for any private loan a comparison of interest rates, re payment period, processing fees, other associated charges and the terms should be done from many loan lenders. For the comparison online sources play a great role. There are websites available to help in comparing the loans. But it should be noted that they can be biased for many reasons. The actual interest rate and other related fees and the terms should be checked rather than relying on the advertised rates. Some maximum beneficial loan lenders from the Borrowers point of view may not be listed on the comparing sites for their unwillingness to pay the website for listing. After a good research only a certain loan lender should be fixed for application.