Education is greatest asset that a student earns, which forms the basis for all the achievements in his life. But the soaring cost of education is hindering students to pursue their dream career. A workable solution to tackle rising educational expenses is education loans. More than sixty percent of students take these loans to finance their higher studies.
Students who are young people have little credit history. Despite this lenders frequently offer because most student loans are guaranteed by government. Student loans are a cheaper option than any other loan borrowing method to finance educational costs like tuition fees, accommodation, books, computers, transportation, etc.
The amount granted in student loans depends on the course opted by the borrower. It also differs on the type of course taken i.e. regular, part-time or distance education. Thus before taking a loan, students should make an estimate of the total cost of the course including course fees and living expenses.
Student loans have interest rates based on the prevailing rate of inflation. The interest is calculated daily from the date of disbursement of the loan. Repayment of these loans starts after the completion of the course and only after getting a job with a minimum salary of ?15,000. This minimum earning was increased from ?10,000 to ?15,000 in April 2005.
There are many banks, financial institutions and lenders both offline and online offering student loans. All loan applications are to be forwarded by the Local Education Authority (LEA). LEA, which is a part of local council, is responsible for funding higher education in UK. Students can also approach the Student Loans Company, a non departmental public body, which offers grants and loans to students.
Students should not entirely depend on student loans for completing their education. In turn they should apply for scholarships and grants to support their expenditure. If possible, they can also take up a part time job to supplement their expenses.
So a brilliant student dreaming to pursue a career of his choice but facing financial constraints has no need to worry. Student loans can always make his wish come true.
