4 perks of getting an education loan for higher studies

 

Higher education helps students study at their choice of universities and earn a job to contribute in running the world’s economy. But not many students have the funds to pay the tuition fees and other expenses of their higher education. An education loan helps such students learn at those universities. Apart from this, getting an education loan for higher education has some perks. In this article, we will tell you about the 4 perks of getting an education loan:

 

1. Covers all your expenses

Higher education institutes are usually located in major cities and educational hubs. Many students who don’t live in these cities have to travel and stay there for the total duration of their courses. In such cases, they need to manage finances for their course tuition fee, travel expenses, lodging and boarding expenses in the city, exam fee, library fee, stationery and laptop expenses and so on.

 

A study loan from many lenders covers these expenses holistically. They cover all these expenses, and in some cases, may also finance any extra, necessary expenses that students incur.

 

2. Saves your financial assets

Many parents save financial assets to secure their future. In some cases, they use those assets to fund their children’s education. But lenders like some NBFCs have changed the rules of education finance. Now parents can save their financial assets like home, gold, FDs, RDs, shares and stocks from being used up to fund higher education.

 

These NBFC lenders give an education loan without the parents needing to place their financial assets as collateral. This way children study and earn a higher degree. But their family’s assets remain secured.

 

3. Enjoy moratorium period

The lenders do not expect the students to start repaying the education loans as soon as they finish their degrees. They offer a grace period called moratorium period to the students. Moratorium period begins after a student completes his or her degree and ends either 1 year after the student completes his or her education or 6 months after the student begins working at his or her first job, whichever comes earlier.

 

Students can use the moratorium period to bag a job and save some money to pay off the first few EMIs of their education loan. They can also save the money to pay the EMIs in the future when they may not have a stable income.

 

4. Avail tax benefits

The Indian government has enacted a bill to make higher education lucrative for the students. According to the section 80E of the Income Tax Act, a student can avail the benefits of tax deductions on the interest he or she pays on the education loan.

 

This benefit is applicable only until the student repays the loan completely or until 8 years from the beginning of the repayment period, whichever comes earlier. Students should aim to pay off their education loan within 8 years to save their hard-earned earnings.

 

 

 

So, these are the 4 perks of getting an best education loan. We hope that after reading this article, you know more about education loans in general and how they are beneficial to help you earn a tertiary degree. All the best!