Introduction
In case you wish to get enrolled for a graduate or master’s program and you are running short of money for paying college fee, you have two options to settle financial issues-- either clear a scholarship exam or apply for a loan. Often, clearing competitive exams is a hard task for pupils therefore they opt for student education loan.
Educational loans are granted by government bodies, university board, local banks, NGOs and private associations. They basically cover expenditures related to your education mainly tuition fee, exam fee, books, hostel charges and associated expenses. They differ on the basis of amount offered, application process, interest rates, repayment policies, negotiations and bankruptcy laws.
Step 1
Student education loan is bifurcated into 2 broad categories:
Subsidized Loans:
They have fixed credit limits and interest is paid by federal government until the time students are enrolled in school. Once the grace period gets over and scholars complete their degree, they’re expected to pay interest as well as basic amount of their loan.
Unsubsidized Loans:
The credit limits and interest rates are higher in this case. Scholars are expected to pay interest on their own, even while they’re in school. You can borrow money within $4000-$5000.
Application Process:
You can approach online or offline banks, financial institutions, universities or peer-to-peer lending firms. The application criteria and paperwork process is subjected to lender’s or company’s policy.
In order to apply for student education loan, lenders have to fill out application form and attach necessary legal documents. Fresh sophomores have to attach FAFSA paper along with their application. Thereafter, wait for response letter. Once you receive your financial aid statement, you can sign the contract and receive your check.
Generally, private institutions and foundations have strict regulations for lending. They make it mandatory for you to submit age proof (stating you’re 18+), photo ID, citizenship proof, bank account number and social security number. Moreover, you’ve posses a high credit score worth 600+, 3 successful credit lines and a debt ratio of less than 60-65%. If you successfully meet these requirements, you’re offered the requested sum.
If you wish to compare between different loan companies, you can use comparison sites like to check out various policies. Additionally, you can calculate your monthly investments via loan calculator.
Tips
Top Institutions That Offer Student Education Loan:
There are many institutions which provide a loan worth $3,000 to $8,000 to approximately 60 scholars (sophomores, juniors and seniors).
Also there are scholarship funds open to 1,500 kids of current or retired army officials that posses average grade score worth 3. Approximately $5,500 is offered to scholars.
Much charitable Trust for education provides loan amount worth $15,000 to top 10 scholars of their streams who have family income rate below $4,600. Additionally, they should attend full-time school. This loan is not open for law students.
Now that you’re familiar with student education loan, you can easily apply for it. However, make sure you carefully read through the points of your contract and consult a finance advisor before applying.
