The Convenience of Education Loans for Students

It is every parent’s and child’s dream to get a quality education from a reputed or top-tier university either in India or in some foreign country like the US, the UK, Canada, etc. The cost of education, however, is increasing year by year and not all parents can afford to send their child for higher education. This means that even if the student has the potential to do really well in the degree of their choice, they simply lose out on the opportunity due to lack of funds. A few decades ago, paying for the child’s education through solely savings was possible. However, nowadays, it is not possible to only use savings unless the family is upper middle class or upper class. Education loans for students make it possible for the students to achieve their dreams. Education loans for students are loans that are offered by banks and non-banking financial companies (NBFCs) to help the parents pay for the students’ education. Education loans for students provide funds for the course fee and other expenses that the students might have to endure during the duration of their degree. Now, you might be wondering how education loans for students are convenient because of the word ‘loans’. In most people’s head, a loan means a liability. Fortunately, that is not the case with education loans for students. Here is the convenience of education loans for students:

1)      Easy to get- Now by this, we do not mean that the process is easy. We mean that they are readily available because of the numerous banks and non-banking financial companies (NBFCs) that offer education loans for students. You can apply either at the physical branch of that bank or non-banking financial company or you can apply online through the lender’s website. Even government banks have online application forms, making the process a bit easier than it used to be.

2)      The existence of the moratorium period- The moratorium period is the period where the applicant (you) or the co-applicant does not need to pay off the loan. When it comes to other loan types, the repayment starts immediately. However, in the case of education loans for students, the repayment period starts a year after the completion of the degree or 6 months after the applicant has obtained a job.

3)      Tax benefits- Under Section 80E of the Income Tax Act, citizens who are paying an interest on education loans for students, are eligible for a tax deduction for up to 8 years.

4)      The student’s life changes- If not for education loans for students, most students would not be able to get the education they truly deserve. With education loans for students, they can get the quality education as well as the quality job they need and deserve. They also make the student more financially independent and responsible overall.

Remember that education loans for students are a huge responsibility that should not be taken lightly. Do your research and then only apply for the loan. We hope this article was informational and we wish you the best for your future education and career!