How to Get a Student Loan?

Student loan

For some of us getting an education is a privilege. Expenses of an overseas education cannot be covered with your own pocket unless you were born with a silver spoon. So for the major portion of the society student loans are the way of getting education.

  • Be aware

There are various kinds of loans available. Interest rates, expenses covered, repayment time, collateral taken and many other factors distinguish the type of loans. Review all and choose the best one. Usually government loans are the best as they have low interest rates and offer subsidies to students. The only drawback is the limited sum of money lent under government loans. They might not cover all your expenses. They also require more documentation than most private banks. Hence, depending upon your requirements go for a government or private bank’s loan.

OTHER ALTERNATIVES

However, try to avoid taking a loan as long as you can, because it is easy to get a loan and not that easy to repay one. Education is definitely an investment with the guarantees of a source of income for repayment of the loan. But one can never be too sure of the circumstances and needs to keep other options available. So, instead of directly jumping to the decision of getting a loan, first check out all other options. Once you completely exhaust all other modes of funding then only should you go for filing a student’s loan. Other options include,

  • Working part time

Find a part time job or a work from home job that will incur the cost of your expenses while you study even if that means taking a semester or two extra. Working part time not only is a source of income but also an opportunity to learn new things and get hands on experience of how things get done in the real world. One should take up part time jobs while studying even if they are able to pay for their education because of the sense of independence it brings with it and to get that experience of course.

  • Borrowing from close friends or relatives

Why this option is better than borrowing from a bank is that it eliminates the stress of repayment that taking a bank loan brings with it. You would have to repay the sum to your friend or relative too but here you can expect a bit of leniency. You also get rid of paying interest.

  • Choosing a less expensive institute

Brand name of a college only takes you a few distances ahead of others. How successful you get ultimately depends on you only. How good you are at making the full of your opportunities tells about your success in future. Knowledge is what matters and you can get that from any anywhere. Keep in mind that there is no substitute for hard-work. You may miss out on a few things that happen in your dream college but getting into one is the priority now. So prioritize your needs and choose wisely.

  • Getting a scholarship

Most institutes have funds kept aside for some genuinely bright and passionate students. Make sure you don’t lose out on this great opportunity. Ask your college of any such scholarships available and make the most of it.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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