Education has become quite expensive these days and parents often struggle to meet the expenses that are incurred in giving students a good education. While many people liquefy their assets to fund the education of their children, many opt for student loans. Here is a brief outline of the many benefits of opting for a student loan.
Keep the assets intact: When people choose to opt for a student loan and not liquefy their assets to fund the education of their children, they save their assets and ease the financial burden on the family. Student loans are available at a considerably less EMI and students can themselves make the repayments after they get a job post finishing their studies.
Low-Interest Rates: Compared to all the different kinds of loans available these days, student loans are way cheaper than financial institutions and even the government wants to ensure that the youth get a fair chance at getting educated so they can have a good career and contribute to the country’s economic growth in the long run.
Long moratorium period: The best thing about loans for students is the long moratorium they get. Students need not start paying the EMIs as soon as the loan amount is disbursed but get a moratorium period for the complete tenure of the course. Some financial institutions and banks also give an extended period of six months to one year after course completion for the repayments to start. This way the student can study without any worries of huge repayments looming large on their head.
Coverage for multiple expenses: Student loans are designed to cover not only the course-related but also other expenses for the student which often include travel, accommodation, extra study materials, laptops as well as insurance. With all these taken care of, parents just do not need to worry about the child’s higher education.
Inculcates a sense of financial discipline: With the knowledge of the fact that a loan has to be repaid right after completing the course a sense of urgency, discipline, as well as a commitment toward studies, automatically develops in the student. The student starts managing the finances better and also does his/her best to excel in studies and grab a high-paying job so the EMI does not become a financial burden.
The loans for students are designed to give financial freedom to the parents as well as the students so they can study well and make a good career in their chosen field.
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