What should a student decide?
Education is the passport to the future, for tomorrow belongs to those who prepare for it today — Malcon X
Every student has the right to education but nowadays affordability of such extravagant educational expenses is what matters over right.
To overcome such a problem as a result of the need for financing the expenses arises i.e. Education loans.
These loans aim at converting the dream into reality. It acts as a bridge that connects aspiration with fulfillment.
Every student wants to attain quality knowledge by studying in one of the best institutions, but in today’s world high fees demand comes as a gift with the word best.
It is not always that loans are the only medium through which we can finance our studies there are also some drawbacks of it which tries to diminish all its usability.
Everything has two aspects or two sides one which is good and the other which is bad. It applies to education loans also there are some advantages and some disadvantages which are explained in this blog.
- Makes education accessible: This is one of the merits of education loans by which education can be attained by any student irrespective of their financial ability. As education is the universal right of every student, education loans make every student equal in the eyes of education by easily availing them educational facilities
- Easily available: Education loans are easily available and are very simple to issue. Various financial institutions provide these services. The applicant can also apply online for the loan. It can be availed within 15-30 days after completing the procedure.
- Specialized loan schemes: Education loans are also available for several special and training courses. The banks offer various schemes from time to time which makes it easier and affordable for the applicant to avail loans. It can also be aided in studying abroad.
- Interest rate benefit: Various benefits are related to the interest that is availed by the borrower. The interest rate on education loans is comparatively less than the other loans. Special concession schemes are also available for female candidates.
- Independence for students: Education loan gives students the independence to study and to achieve whatever they want without any pressure. It gives them a sense of relief and security.
- Parents rescued from the burden: Education loans not only benefit the student but also provide relief to the parents. In today’s world, everything’s price is hiking up. They are inflating day by day. It is very difficult for the parents to finance such expensive studies. These loans fulfill their dreams which they have seen for their children. The loans are also common among these parents as they are rescued from the burden of earning more for their child’s education. These loans give them a sense of belief that they can tackle such financial constraints.
- Eligibility criteria: The loans are provided or issued only to those students that are eligible in the eyes of lenders. Those students that they think do not deserve are not provided with the loan. This can be a major drawback of education loans.
- Repayment pressure: Once the loan is availed there comes the repayment pressure. As some security has been attached to the loan in case the applicant failed to pay the loan at the time then this liability is covered by acquiring his/her security. There is an added pressure on the students as well as they have to do better in their studies for repaying the loan.
- Might ruin your credit score: Delay in payment of the loan can hurt the credit score of the applicant. If the credit score gets impacted then this credibility also gets affected by destroying your image in society.
For a student who belongs to a middle-class family, difficult financial conditions can often arise and education loans can be an option. A search then goes which finds a low-interest loan that is easily available.
I hope that through this blog you have understood the benefits and drawbacks of education loans. If you want to convert the disadvantages into benefits all you need is to make a thorough study of financial institutions that lend loans for educational purposes.