5 key ways to make repayment of an education loan easier

 

Education loans help students to pursue further studies. It boosts the morale of students who are meritorious enough to study further but do not have funds to pay their higher education costs. But many students, more often than not, find repaying their education loans difficult. The best education loan would provide flexible ways for a student to repay it. To help such students, we have come up with an article that tells how education loans can be repaid in 5 effective ways.




  1. Pay off the interest during the course period

Lenders offer students the chance to pay the interest levied on their education loan during the course period itself. Students should get a part-time job apart from studying their courses, and pay the interest levied on the total education loan amount disbursed up to that point in time. This way of repayment slightly reduces the burden of clearing off the education loan in the long run.




 

  1. Pay off a partial amount of the interest during the course period

This way of repayment is similar to the first one. Students should get a part-time job, like becoming an assistant to a university professor, and thus, earn money to pay the interest levied on the education loan. If the salary is not enough to manage all of their expenses then students should pay the interest partially. They should repay the maximum amount of interest that they can afford to. This reduces the amount of money students pay from their pockets as interest on their education loans in the long run.

 

  1. Repay the EMI during the course period

If students get an exceptional opportunity to work professionally along with studying their courses, then they should repay the education loan EMI during the course period. This exceptional opportunity is usually in the form of a job where the course knowledge is supposed to be applied through skills relevant to the course. These kinds of jobs pay students handsomely which enables them to earn enough to pay the education loan EMI during the course period itself.




 

  1. Go with the usual way of repaying the education loan

Lenders offer a grace period to students to bag a job and begin earning. Once this grace period ends, the repayment tenure begins. This is the usual way of repaying education loans. In this period, students pay the education loan EMIs to clear off the loan gradually. Such a facility is available when you take a loan to study in India or abroad.

 

  1. Choose the step-up EMI repayment facility

Lenders offer this type of flexibility to students to help them clear off their education loans fast. In this way of repayment, students pay an EMI that is proportional to their salaries. The EMI amount starts increasing over time. This helps students save money during the initial period, thus giving them an easy start.

 

So, these are 5 key ways of flexibly repaying an education loan. These methods can be used to maximize the effectiveness of the repayment strategy. Please consult a financial advisor to plan the repayment of your education loan. All the best!

 

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