Most students who want to study abroad now have to take out an education loan because of the intense competition and skyrocketing costs.
The majority of parents were used to using their savings and liquidating assets like gold, fixed deposits, land, etc. to pay for their children’s education in the past. These days, parents are beginning to embrace the paradigm shift of borrowing money to pay for their kids’ education.
This is because parents and students are now both aware of the many benefits that a student loan may offer. They are aware that choosing an education loan over a personal loan for school is preferable.
You may be aware of a few benefits, but this post will go through all the benefits that students can receive from an education loan while studying abroad.
Interest rates on personal loans for paying for school abroad are typically higher than those on education loans. Less interest is charged on student loans. Additionally, all female students receive an additional 0.5% discount from government banks.
One of the key benefits of student loans is this. Education loan programmes have a moratorium period, unlike personal loans where the borrower is required to begin making payments on the accrued EMIs in the following months.
The moratorium period is the time frame during which the student is exempt from making payments to the lender or the start of the EMIs. In order to allow students to focus on their studies, the moratorium period typically lasts the length of the course plus 6 months (with the option of an additional 12 months.)
Nearly all of the costs that a student can incur to complete their education are covered by an education loan for studies abroad. Tuition, travel (tickets), housing costs, university fees, food costs, living expenses, a laptop, or any other equipment necessary for your studies are all included.
The loan applicant or coapplicant may take advantage of the education loan income tax exemption under Section 80E of the Income Tax Act 1961. Simply put, the loan applicant or co-applicant may declare that a portion of the interest they pay on their student loan is deducted from their gross income.
As the student is responsible for repaying the debt after completing his studies and the moratorium period, taking out an education loan can free parents from any financial obligations.
These are a few advantages of taking out an education loan. You can pay for your international studies in full by taking out a student loan.
Education loans are quite advantageous since they give students significant assistance in financing their higher education. Apply through WeCareCapital if you need a loan to pay for your study overseas. A member of our staff will walk you through the whole student loan application procedure and explain the benefits of the loan.
Our team has worked closely with more than 10000+ students to efficiently process their student loans. We respect students’ time and work, therefore we give you all the information you need and will walk you through the full application process for your study abroad. We link you up with the top lenders of education loans in India who can pay for your education. Our team has a specific affinity for the lenders of education loans, which makes it possible for us to assist our students with the full loan process while making sure that all legal formalities are completed within the allotted time limit.
To Conclude, Students must now understand the benefits of student loans and how to save money without depleting it. But even at WeCareCapital, our financial advisors advise taking out an education loan to pay for one’s higher education because there are so many benefits to doing so. We are only a phone call away if you find yourself in a scenario where you are unsure about applying for an education loan or fear it will put a financial burden on your parents. Get expert guidance on student loan issues by getting in touch with our staff.