Easy Student Loan to Study Abroad

November 22nd, 2023 by admin No comments »

The decision to study abroad is an exciting one, but also fraught with many challenges, the chief among them being the burden it places on one’s finances. Truth can’t be denied, going abroad to study can be quite an expensive affair, with the cost of air tickets, tuition fees and living expenses all contributing to making a huge dent in one’s own or one’s parents pockets.

One option out would be to apply for a scholarship, but not all universities offer scholarships nor is it an absolute certainty that you will be able to get one. The most likely and safest alternative would be to apply for a student loan. In the following article we look at some terms and conditions of applying for a student loan

Terms and conditions to apply for a student loan to study abroad

Once you get the highly coveted acceptance letter from the university of your choice, rest assured banks will reach out to you with their marketing spiel to apply for a student loan, and although when they are making their sales pitch it will seem as though the bank is a rich and benevolent uncle offering to set up a trust fund for your college education, the reality is that banks do have terms and conditions that you will need to comply with.

You will need to apply from a branch that is situated in your own country. Even though you will be studying abroad in USA, and you have an American Express account which has branches all over USA, you will need to apply for your loan from an American Express branch in India. There are also local loan providers available in some countries.

The bank will most probably require you to apply with a co-applicant who will undertake to repay the loan in case you fail to do so. your co-applicant will need to confirm that he is employed and has a steady source of income that can pay back the loan amount in time. Generally, parents or relatives’ function as co-applicants on student loans.
You will need to provide a copy of your acceptance letter, a copy of your passport as well as the salary slip of your co-applicant. A few loan providers do offer loans even before you apply to study abroad, this can help you plan out your budget and see which school the best fit would be.

Features of a Student Loan

  • A student loan covers tuition fees as well as other expenses such as cost of accommodation, cost of books and other equipment as well as other living expenses
  • Banks offer students the ability to repay at a fixed or floating rate of interest
  • Repayment period is typically between 5 to 10 years.
  • Most often you will not have to pay back your student loans until you complete your course of study.
  • Many banks also provide a grace period after you graduate to enable you to look for a job and get settled financially. The grace period differs from bank to bank but is generally not more than six months