Sep 13, 2014 09:42 AM
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Now a days nothing is cheaper even education. Students who wish to study further but if their financial condition does not allowed they go for educational loan. Many bank provide educational loans and they try best to attract the customers by giving different policies. Many people fall for them but there are something’s which you should think before and after taking student loan.
Keep track: firstly it is necessary to know the interest rate and also the time period from when are you going to start to repay. Some banks start the interest amount repayment right from you take the loan. Keep track of the lender, balance, and repayment status for each of your student loans. These details determine your options for loan repayment and forgiveness.
Grace period: for most of the bank the rule is once you complete your education and after 6 months the your repayment starts. So better check all the paper work because the time period may vary according to the banks. You can also demand the grace period for that you need to consult bank officers they will tell exact procedure for applying.
Repayment period: this mostly depends upon the amount you took. The period is 10 year usually but don’t panic if you think you can’t repay in the given time. You can extend the period, the policy is called income based where it depends upon income the period of repayment.
Don’t worry: life is never the way we expected. If you're having trouble making payments because of unemployment, health problems, or other unexpected financial challenges, remember that you have options for managing your student loans.
Pay early: if you think you can pay it early. If you can afford to pay more than your required monthly payment - every time or now and then - you can lower your principal, which reduces the amount of interest you have to pay over the life of the loan.
