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Most students around the world borrow loans to pay for college education, bar those with rich parents or parents who have saved enough over the years. According to a statistic by the College Board, up to 60 percent of graduates of the four-year program, used students loans to pay through their education.
Few students can manage to work and earn enough to pay for their university and college while attending classes and maintaining good grades. For that reason, loans have become increasingly popular among students.
Federal student loans are common types of student loans, but they are designed to pay for college tuition alone. But as any college student will tell you, the cost of education includes more than just tuition.
What are student loans?
As the name suggests, a student loan is a loan type designed specifically to help students cater to their college education and related fees such as books and supplies, tuition as well as living expenses.
They differ from other types of loans such as personal loans and business loans in that the charged interest rates may be incredibly lower and repayment terms may be delayed while the student is still pursuing their education.
If you apply for any financial assistance, your college may include a student loan as part and parcel of your financial aid package.
Student loans are a quite popular and oftentimes essential way to cover college costs. These loans make it easier for many young people to attend university and college, which means a better and more skilled future workforce.
For most people, student loans are the first loans they’d ever received and it can be that way for you too. As a result, it is important that, before you apply for any student loan, you understand how much it will cost you in the long term.
Whether you are a parent or student, it is important to understand precisely how these loans work so that you can find the best type that is right for you.
An important point to note is that student loans are different from grants and scholarships. Loans mean you have to repay in full or part if a certain amount is forgiven. Grants and scholarships on the other hand don't require to be paid back.
With that being said, when applying for a private student loan, be sure to check the interest rates charged as this will directly affect the long-term costs of the loan. A fixed interest rate is always the best because it does not change during the life of the loan.
Another important thing to be aware of is the loan origination fees. This fee is usually charged one time when you take out the loan for the first time and the percentage varies based on the lender and the type of the loan.
What are the advantages of student loans?
There are plenty of benefits of student loans other than just ensuring you complete your high learning education program.
Lower interest rates
Perhaps what makes student loans affordable compared to other types of loans is the lower interest rates charged. Loans like car loans, home loans, and same-day loans tend to have predominantly higher interest rates compared to education loans.
If you have a credit card, you can get an education loan at the rate of 7 percent per year – and if you are a female student, you can receive a special discount of up to 0.5% in government banks.
Covers a wide range of expenses
Unlike federal student loans, private education loans tend to cover a border range of expenses including travel, tuition fees, university fees, house rent, living expenses, food costs, laptops, and many other items needed for your education.
Compared to other types of loans, students are required to pay back their student loans after completing their education. This moratorium period is what is called the repayment holiday and is one of the major benefits of student loans.
The repayment holiday usually includes 6 months per year in addition to the course duration so that students can fully concentrate in class.
Build credit score
Paying back education loans on time can be a perfect way for students to build good credit history. A credit score often ranges from 300 to 900 where any score above 750 is deemed a good score.
Student loans can benefit your CIBIL score since timely repayment of the loan will build the necessary score and make it easier for you to get a loan in the future.
Liberate your guardians/parents from the debt burden
Taking a student loan can help liberate your parents from debt and other financial burdens as you are solely responsible for the loan repayment after completing your college program ad repayment holiday period.
Liberating your parents from debt and other financial burdens can also make university and college education attainable for students who don't have other alternative funding options.
Why Choose Us For Student Loans?
At Micro Enterprise Works, we believe that education fuels empowerment, thus we take out all the obstacles of obtaining a private education loan. When working with us, you will not have to pay an origination fee, application fee, prepayment fee, or any other hidden fees. You can easily compare interest rates without worrying about your credit score being affected. Here are some additional reasons why you should choose us for your student loan application.
The simple and easy application process
You will take only three minutes to apply for your student loan, and once you are approved, you will receive your school fees instantly.
Different loan term options
Choose the loan term you want to repay your education loan based on your financial situation. Our options start from 5, 10, 12, and 15 years.
Customized payback options
Curate your payment schedule such that it suits your budget. Decide if you wish to start repaying instantly or delay it until you finish your education.
Our student loan packages cover the full cost of your college attendance, such as books, housing, fees, travel, and food among others.
Student loans expand your possibilities in the future. That is why we provide you with more options to qualify for an education loan whether you have a guarantor or not. We want to fully support you on your education journey regardless of where you currently are in your education.
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