by : Antonio Vargas

All have a natural inclination for education since education helps them to make their life prosperous. However, rising cost of education acts as a barrier in the way of many who cannot bear heavy expenses incurred in pursuing higher education. are feasible arrangements for all such students facing financial shortfalls.

Every education related expenses are covered by student loans. These include course and tuition fees, accommodation, food, travel, books, library charges and equipments necessary for completion of course, such as computers. The loan amount depends on the course opted for and also on the type of course such as regular, part-time or distance education.

Students don't have to take stress about paying back student loans during the duration of the course. The amount can be conveniently repaid after the completion of the course. Moreover, the repayment starts only after the borrower gets employed and starts earning a minimum salary of ?15,000. The interest rate charged is linked to the current rate of inflation as measured by the retail price index. Most student loans are guaranteed by the government.

Student loans are available in two forms - subsidized and unsubsidized. In subsidized loans the interest rate is taken care of by the lending authority while in unsubsidized loans normal rates of interest rates are charged.

For availing government sponsored student loans, borrowers can approach the Student Loans Company, a non departmental public body offering loans and grants to students. There are also private student loans offered by private lending authorities. These loans have no application deadlines and can be applied for at any time. But private loans are not granted on need based criteria like government aids, rather on credit worthiness. All loan applications are to be forwarded by the Local Education Authority (LEA).

Students should supplement their education expenses by applying for grants and scholarships without depending entirely on student loans. Before approaching a lender, they should make an advance assessment of the total expenditure of the course. This way they will have an idea of the cost of the loan and so they will face no hassles in repaying it.