Importance of Education Loans for Study Abroad
Be it India or America, education is becoming expensive year after year, especially when it comes to post-graduate courses. In such a scenario, students who wish to study in the U.S. tend to eat into their savings to pay for their college tuition. But not many people have the luxury of having a college trust fund or parents with a sizable chunk of money kept aside. For them, education loans are a blessing, as it allows them to fulfill their dreams even though they have limited means. It gives these talented young students a chance to stand neck-to-neck with the global students and bring their unique brilliance to the forefront. It aims to empower young minds who are only bound by limited financial means and gives them the wings to soar high in the sky. Let’s look at other reasons why an education loan is a must-have if you plan to study abroad.
1. Saving your parent’s savings
Indian parents spend their entire lives saving hard-earned money for their children’s college funds in the hopes of seeing their child study at a prestigious university someday. These savings often come at the price of their wishes or money they could have otherwise spent comfortably by them in their retirement. Taking an education loan to finance your studies relieves your parents from the stress of taking a significant financial burden on your behalf and frees up their life savings which can now be used as they deem fit. It puts the onus on you and your ability to pay back the loan in the years to come.
2. Shaping Your Credit Score
While the concept of a credit score may not be as popular here, in foreign countries, it is pretty relevant. A loan to finance your education is a sure-shot way to build your credit score in America. All you need to do is ensure that all Installments are paid from time to time and that a stellar credit ranking is guaranteed. People use their high credit scores to secure funds in the future whenever the need arises. It symbolizes your ability to repay the loan in the agreed-upon time without any delays or defaults.
3. Quick & Easy Visa Approval
In most countries, including America, the visa authorities want to ensure that there’s a steady flow of funds and that the source of these funds is reliable. When the loan is supported by public sector banks or trusted lenders, it automatically lends more credibility to the student’s profile, making him/her a more worthy candidate in the eyes of the authority. So it’s a safe bet that a student who has secured an education loan for her higher studies has a better chance of getting a visa quickly than a student who is financing her studies.
4. Covering all The Bases
In most cases, when you take an education loan to sponsor your college, it’s not only your tuition fees that get funded but also other expenses like travel expenses, study material, accommodation, etc. And if you take an education loan from Lorien finance, we also throw in a free flight ticket to the U.S. Not only that, we wire the tuition fee directly to your university before each semester, so you don’t have to take the extra stress of going to the bank and making the payment or risk forgetting and becoming a defaulter.
5. Tax Benefits
This is a frontrunner factor when deciding on taking an education loan for higher studies. Under section 80E of the Income-tax of India, the interest on an education loan is subject to a tax rebate. This makes the foreign education loan a viable scheme for your parents, who can juice the benefit of the tax rebate emerging from the interest you pay on loan after every period. If you’ve made up your mind to secure an education loan to finance your studies in America, then you’ve come to the right portal. Lorien Finance not only makes securing the loan quick and easy, but it also offers competitive interest rates as low as 8.5%. To know more about our education loans, click here.
