3 questions to ask educational loans for studying abroad in Australia

 

Do you need funds to finance your plans to study in Australia?

If yes, then you should consider taking a student loan. Australia is known for having some of the finest universities that employ some of the smartest minds in the world. Doesn’t Australia sound like an awesome place to pursue higher studies? If you are planning to go to Australia for your higher studies, you need to plan your student loan well. To help you out, we have come up with 3 questions that you should ask yourself when you take an education loan to study abroad in Australia.

1.     What kind of education costs do I want my education loan to cover?

Many students do not have enough money to cover the costs of their higher education in Australia. Even if you have saved a significant amount of money for your higher education in Australia, you should understand that you may still have to rely on educational loans for studying abroad to finance your education there as you should not deplete your savings.

Before you take an education loan, you should calculate the costs of your education in Australia. You should learn about the tuition fees of your choice of course in Australia and the potential cost of staying there throughout your course. Do not forget to calculate the money you need to pay library fees, competitive exam fees, and buy books, stationery and a laptop for your course studies.

Then, ask yourself how much money do you need to cover those costs and accordingly proceed.




2.     How long do I want my repayment tenure to be?

Before you take an education loan to study in Australia, you should calculate how long will you take to pay back the whole amount with interest?

The faster you repay, the better things will be for you as you will save a significant sum of money from ending up in the lender’s pocket as your loan’s accrued interest. You should talk with your lender and set a repayment tenure such that you do not find repayment cumbersome or difficult when you start paying your loan EMIs.

 



3.     Should I opt for a regular EMI payment facility or an income-based repayment facility?

Lenders offer students a few ways for repaying education loans. Either, students have to pay their lenders a small, fixed sum of money—Equated Monthly Instalment or EMI—every month, or pay EMI whose value increases as students gather momentum in their professional career. Ask your lender if they provide the second facility as well. The second way of repayment—also called as income-based repayment facility—sets a small EMI value for students who start working at their first job, and as they start getting paid handsomely with increasing professional experience, the lender increases the EMI value. It helps students repay their loans faster than they would before.

 

Now you know the 3 questions you should ask yourself when you take an education loan to study in Australia. Have a nice day!

 

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