How to Apply forStudent Loan?
What are student loans?
A student loan is funded by the federal government, andprivate student loansare funded by the banks, state loan programs, or other lenders.
What is the difference between federal and private student loans?
Federal student loans include benefits like fixed interest rates and income-driven repayment plans, which are not typically offered with private loans. In contrast, private loans are more expensive than federal student loans. On the other hand, Private student loans provide benefits in various other forms that federal loans do not offer. NBFCs offer student loans for career oriented courses and for skill development courses, which federal banks do not provide.
Being a college student is always financially demanding. Many students look for personal loans to help them wrap all of the extra costs while in college. However, the option of a personal loan may not be the wisest or the smartest financial choice;nevertheless, it provides a way out to the student to meet his/her educational expenses.
Even if the scholarships or the grants wrap all your of direct costs, you may need student loans for your living expenses or indirect costs. Lenders will not allow or permit you to borrow the amount more than your total COA. The financial aid office at your college will surely give you your total allowable amount limit for student loans.
Documentation which is required to get to student loan:
· Letter of the admission.
· Duly filled and signed loan application form of college.
· 2 recent passport size photographs for the forms.
· Statement of cost or fee of study.
· PAN Card, AADHAR card of the student and parent/guardian.
· Proof of identity and of course proof of residence.
· IT returns or IT assessment order of the previous two years of the co-borrower
To qualify for this loan:
· The applier must be a permanent resident.
· The borrower must be of legal age as defined by the state of permanent residence.
· The borrower should have at least 3 years of positive credit history and fulfils other creditworthy requirements. There are many of the student loans that require no cosigner. If the figure is high, then the loanwill be more expensive.
· Also, you need to have an excellent credit score for the loan approval.
After the loan gets approved, it can take 2 weeks to 2 months for the lender to send the loan which then proceeds to college or you. If an amount is sent directly to your college, it may typically take 1-2 weeks before the remaining amount is refunded to you.
Now, the standard repayment plan for a student loan puts the borrowers on a 10-year time track to pay off all the debt, but research has shown that the average bachelor's degree holder takes nearly 21 years to pay off his or her all the loans. Under the income-based repayment options, the remaining debt is forgiven after 20 years too. Hence, you should Apply For Student Loan after properly planning your requirements, repayment modes and time.
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