Introduction
Student interest loan is a loan facility provided to tertiary education students by banks or any financial institutions. Student interest loans are usually disbursed via the government and are repaid once you finish your studies. Important information to know about student interest loan regards different loan plans, eligibility, application process as well as the loan’s terms and conditions.
History
In most countries, if not all, in the world student interest loans are offered through the government to provide funds to tertiary education students to pay for their academic expenses like fees, accommodation and transport. This facility is common in all countries especially to students who study at government run universities and colleges. Student interest loan aims at providing financial support to any student who wants to pursue his studies with any university especially, financially disadvantaged learners.
Features
Student interest loan is provided to any student who qualifies at a government-bank gazette and agreed interest rate. The banks will disburse funds to successful applicants under the government banner although each applicant is required to disclose the details of his/her surety. The funds are used to pay for your academic and other related expenses such as food, accommodation, transport, study fees and stationery throughout your period of study such as three, four or five years. The bank directly pays your fees, accommodation and fees direct to the college or university and the balance of the money is paid into your account to cater for your miscellaneous expenses. This money is repaid once you finish your studies together with interest. In most cases a grace period of six months is allowed before you start to pay back the money. The repayment terms are spread through a number of years like over ten to twenty years. If you withdraw or expelled from the university, the six month grace period to repay the loan do not apply. The information required for you to qualify for a student interest loan include a confirmation letter of admission from the university or college showing the proposed program, study fees and other related expenses as well as the period of study. The bank would also require your personal identification documents, details of your surety, details of your parents or guardian as well as your banking details. Once you receive an offer of study from the university, you will be eligible to apply for a student interest loan and the amount of money to be advanced depend on your proposed study program, personal background and the maximum amount of money that the bank advance to each student.
Tips and comments
Student interest loan help parents and students to get money to pay for university and college academic and related expenses. This loan facility gives all learners equal chance of attaining tertiary education despite their different backgrounds. If you are from a poor family and wants to further your studies through any university or college especially state owned academic institutions, student interest loan is the best option for you. The money will be repaid after you have completed your studies over a period of say ten or more years from your salary.
