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The most common way for students is to apply for educational loans so that they do not have to worry about the finances while they focus on their studies. But there is a lot to think about when it comes to applying for educational loans. A lot of students get stuck with the loans they have taken and then face a lot of difficulties in clearing them.
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Presentation Outline:- • I. Introduction. • II. Not comparing interest rates. • III. Not focusing on the repayment plans. • IV. Not comparing financial institutions. • V. Not understanding the terms and conditions. • VI. Not inquiring about the moratorium period • VII. Social Links
Introduction It is a well-known fact that in today’s world, a post-graduation is vital for a student to grow in their career. Sure, being able and skilled is a major component of performing a job, but very few get into upper management roles without a higher education degree under their belt. Now getting a post-graduation degree is no child’s play either, as one needs strong finances in order to support their academic expenses.
The most common way for students is to apply for educational loans so that they do not have to worry about the finances while they focus on their studies. But there is a lot to think about when it comes to applying for educational loans. A lot of students get stuck with the loans they have taken and then face a lot of difficulties in clearing them.
Not comparing interest rates Every financial institution charges different interest rates on the educational loans that they offer. Not comparing the different lenders’ interest rates could result in you taking an expensive educational loan when a better alternative is available. This is why you should always check with different lenders about the interest rates that they are offering you in order to know which lender to borrow the educational loan from.
Not focusing on the repayment plans This is one of the biggest mistakes many students make while borrowing a loan and is the reason why so many of them struggle to repay their educational loans. It is very important to choose a repayment plan that is suitable for you right from the start so that you do not face any complications in repaying your loan later on.
Not comparing financial institutions A lot of students think that banks are the only financial institutions that they can go to in order to apply for educational loans. But this is not true, as they can also go to Non-Banking Financial Companies (NBFCs), as these lenders provide stiff competition to the banks when it comes to offering educational loans to students. Always compare between these lenders before deciding which financial institution to go for.
Not understanding the terms and conditions Applying for an education loan might get very complicated if you do not understand the exact terms and conditions of your loan plan. This is one mistake that has put students in unnecessary trouble. Always communicate with your lender to learn about your loan plan and clear every doubt that you have in mind.
Not inquiring about the moratorium period A moratorium period is like a grace period where students do not have to start the education loan repaymentprocess immediately. For every lender, the duration of this period may differ, or some may not have this period at all. Not checking with your lender before-hand would be a mistake, so make sure to clear these things before applying for an educational loan. Related Blog:- Most effective ways of repaying your education loan
SOCIAL LINKS Facebook:- https://www.facebook.com/AvanseEducationLoan/ Twitter:- https://twitter.com/avanseeduloan YouTube:- https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug Instagram:- https://www.instagram.com/avansefinancialservices/
