Education loans for studying in overseas educational institution typically cover the entire tuition fee and predefined proportion of the cost of living and other miscellaneous expenses. The amount paid to the candidate varies as it depends upon the
- Co- borrower’s history
- The existing burden of EMIs (education management information system)
- The credibility of the institution
- The a ability to provide a capital asset as collateral
- Confirmed admission receipt from the respective college/ university
Considering the dynamic structure of education loans of different lenders and varying expenses associated with different institutions, you should consider several things that can help optimize the process and lower the effective debt obligation.
Relate Total Cost Of Education
This should be the first and foremost differential to be considered before applying for an education loan to fund overseas studies. Besides considering tuition fee, a student must consider the other expenses like cost, living, travel and other miscellaneous also. Must consider the institute you are selecting for the course as there are multiple institutes offering similar courses with common teaching methodologies, but there can be huge differences in the tuition fee and cost of living expenses.
Explore All Possible Scholarship Opportunities
This is a most lucrative way to break off the overall living expenses in a foreign location. A large number of private and government organizations offer generous amounts through various scholarship opportunities that help to reduce the collective (tuition and living) cost. This step needs a rigorous exercise as most of the direct grants are not advertised. Therefore you have to explore all the expected grants and bursaries offered by the respective state Government for foreign students.
Check The Eligibility For Being Funded
It become trickier to select the lender that caters to your education loan requirements. Most of the education loan financiers only provide the loan for tuition fee if the applicant has been selected into a premier institution. Students have to check whether the course and college for which they are seeking for loan is eligible to be funded. Also check whether the loan is unsecured or it is backed by the collateral and secured.
Check The Amount Of Available Loan
After checking the eligibility for loan, the applicant should check
- The quantity of the loan amount available
- Applicable interest rate
- Pause before starting the EMIs
- Total tenure of the loan
- Availability of co-payment option
- Margin requirements
- Eligibility for income tax deduction
- Applicant should also take loan in installments at the time of paying the semester fees
Servicing Of The Loan
- Applicant should also check the ease of servicing of the loan
- Applicant should clear the points of part payment option and pre- closure of the loan
- Also consider either the lender has availability of digital channels to service the loan or they require physical visit to the office.