Education Loan Eligibility criteria

Education Loan Eligibility criteria can be termed as the requirements that need to be fulfilled by the borrower before applying for an education loan. An education loan is availed to pursue higher studies within the country or in a foreign nation. Education loans can be availed by parents or students themselves and the prime purpose of getting a student loan is to cope with the rising cost of tuition, college and university fees. There are a lot of educational loan programs and you must choose exactly the one which fits your financial stature.Lenders have now started offering student loans with very flexible repayment options which has simplified the entire process thus making it easier for aspiring students to find a reliable source of availing loans. Many students have to give up on their dreams just due to lack of financial backup. Taking this into consideration, the government often keeps on introducing innovative loan schemes to benefit the young lot. Off lately, even private banks and financial companies have started offering loans with interest rates as low as 12.75% with a processing fee of mere 1-2%. Over the past few years, there has been a consistent rise in the number of borrower’s opting for such loans.

Education Loan Eligibility criteria for borrowers is between 18 to 35 years of age. He/She should have a co-applicant who can be equally responsible for borrowing the loan. The borrower’s parents, siblings, or spouse can become co-applicants. A salary slip may be demanded by the lender as a document proof indicating that the co-applicant has a steady source of income and is capable of repaying the debt.Only when there is an acute shortage of funds, you should consider taking up a loan. Students with lack of monetary assets can plan accordingly as to how they will be able to repay the loan amount. Try and choose career oriented courses with better job placement opportunities after completing the course. It is quite understood that loans availed for pursuing studies in a foreign nation would be expensive as loans availed for studying in your own country.

Banks offer loans of many types, but borrowers and co-applicants must bear a few things in mind to get qualified for the loan. All the Education Loan Eligibility criteria set up by the bank/financier need to be followed.You can find all the relevant information, terms and conditions on the relevant banking website, so go through it carefully before applying for the loan. Attach all the required documents along with the application form. The most unique feature associated with an education loan is that you do not have to pay back the loan till the time you complete your education. As soon as you secure a job within 6-12 months of the course completion, you can begin paying the funds in the form of EMIs. The EMIs are divided into equal parts so that the borrower can finish paying them within the given time frame and at the end of the repayment tenure. Do not skip paying your EMIs as it would reflect on your credit score. A bad credit score decreases your chances of availing a loan in the future.


How education loan eligibility calculator works?

Just like the basic necessities, even education has become one of the essential needs of life. The government also keeps coming with new loan schemes so that no deserving student remains devoid of basic education. Students who have a secure admission in any of the reputed colleges whose degree/diploma is recognized by the university affiliated with the state board are eligible for the loan. Banks avail these loans so that students can pay for college fees, hostel, laboratory charges, cost of purchasing books, computers/laptops. In order to fix the loan amount to be sanctioned, the lender would take into consideration, the duration of the course, additional course related expenses, course material, etc. Once the loan gets approved by the lender, it is directly disbursed into the account provided by the borrower. In case of a student loan, students have to provide the account details of the college/university. To find out about the interest rates offered by various lenders, you can make use of the student loan eligibility calculator. The amount will be disbursed in Indian currency directly to the institute.

Unlike other loans, the students do not have to begin the repayment immediately. Lenders provide a grace period of 6 to 12 months other than the duration of the course. The borrower can use this time to secure and relevant job.Some job oriented courses have a longer duration. Accordingly, the tenure is also longer. Now-a-days due to the availability of the internet and online banking services, hassle free and speedy loans are being approved by lenders.If the student belongs to a financially sound family, he/she can repay the loan while still in college or else it can also be paid after finishing the course. However, you have to clear this with the lender at the very beginning. The interest rate is higher, but this is generally when the borrower cannot pay at the time of pursuing the course. If you are able to successfully pay during the beginning of the course, you will not have to face any penalty afterwards.An education loan eligibility calculator can be found on any of the banking websites.To qualify for the loan, the student has to be above 18 years and less than 35 years of age. The borrower and the co-applicant has to be of Indian nationality. Also, the co-applicant needs to have a sound monthly income source. This is like an assurance that the loan will be paid within the given time period. Both the primary and secondary borrowers need to maintain a good credit score in order to avail the loan.

Who are eligible to be co-applicants?

The student’s guardian/parents, siblings or spouse can apply for the loan with the primary borrower.

How to apply for the loan?

Firstly, visit the relevant banking website after doing all the necessary research. Fill the online loan application form and attach all the relevant documents along with it. Submit the form upon completing everything. The authority will then verify it and if the loan gets sanctioned, you will be informed by the lender. It usually takes a fortnight for the entire verification process to take place.


What are the student loan eligibility norms?

Planning to take up an education loan for higher studies? With the government’s initiatives to reduce the rate of interests and offer flexible prepayment options on loans, students are considering it as a viable alternative. But how does one come to know whether he or she fits the student loan eligibility criteria of obtaining the loan?

  • As far as age is concerned, the borrower has to be 18 years (18-35)or above.
  • He/She must be an Indian citizen.
  • The applicant must have a secure admission prior applying for the loan.
  • Proper documentation such as address proof, identity proof, previous mark sheets will be required.

Education loans are of two types, secured and unsecured. To obtain a secured loan, the student will be required to produce collateral in any form of property papers, valuables, etc. Unsecured loans can be availed at the time of medical emergency or when in dire need of money because they have a comparatively higher rate of interest yet a very less repayment period.

Student loan eligibility does not become an issue if everything falls into place.Education loans are proven to be a very helpful tool in shaping the dreams of students who are hopeful towards achieving their career goal.By following an easy process, you can avail a student loan from banks and financial institutes. By availing a loan, you will not have to borrow from family or friends. Also, you will not have to sell out your property or valuable assets to obtain cash.

Many people believe that scoring well in academics will help eliminate their fees but the fact is that you only get financial relief up to a certain extent. The entire amount will not be covered by scholarships or grants. This may also not be the case for most of the banks. Some banks ask for a certain percentage or grade in order to sanction the loan amount. If you successfully satisfy all these criteria, you will be eligible to qualify for the loan. Other important criteria also need to be fulfilled such as availability of collateral, the reputation of the college/university applied for, etc. Your field of education will also be taken into consideration at the time of verification.

Student loan eligibility may also vary from lender to lender so it is essential that you go through the website thoroughly prior to applying for the loan. A little bit of comparison should be done before drawing any conclusion. There is a huge difference between a loan and a grant/scholarship.Both the types can be availed from government as well as non-government banks. The eligibility also remains the same with just one major difference, i.e in a scholarship you do not have to repay the borrowed funds back unlike a loan. You can apply for a loan even when you have a scholarship in hand. It will help to cover the remaining educational expenses which cannot be covered by the scholarship. Along with covering your academic fees, a loan will ensure that all your expenses such as your basic fare, tuition fees, hostel and mess charges if any, stationery needs will be covered.


Student Loans Eligible for Consolidation

When you take out student loans for college, at some point you are going to have to pay them all back. In most cases you’ll be able to put off payments until you are done with school, but then you’ll suddenly be left with various payments each month. Suddenly dealing with all of these payments can be financially taxing, but there are some options available to make things easier for you.

Many people choose to consolidate their student loans so they only have one payment and a lower interest rate. Instead of dealing with many loans, this allows you to only have one loan, and in many cases you are able to get a lower payment, which is helpful when you’re just getting started in the work world.

If you are considering consolidation, you may be wondering what loans you can consolidate if you are going for an Education Loan Eligibility program. Here is a list of some of the loans that can be consolidated with the federal student loan consolidation options.

– Perkins Loans

– Federal Grad PLUS Loans

– Federal PLUS Loans

– Stafford Loans

– Federal Direct Loans

– Auxiliary Loan to Assist Students

– Federal Supplemental Loan for Students

– National Direct Student-Loans

– Health Education Assistance Loan

– Loans for Disadvantaged Students

These are just several of the loans that you can consolidate with a federal student loan consolidation, which can make things easier for you financially. Consolidating your loans can definitely be a great option, but just remember that not all loans are going to qualify, such as private loans. Private loans have to be consolidated separately instead of under federal consolidation programs. Check with lenders before you make a move to ensure you can get all your loans consolidated to make repayment easier for you.

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How to Understand Student Loan Eligibility Requirements

Furthering your education is something that you may want to do immediately after high school or it may be something you put off and decide to do at a later time in your life. It doesn’t matter when you decide to go to college or what you want to study when you go; people go to college to get an education to further their career, to make more money and to accomplish a goal. And one thing remains the same for every college student; classes are expensive. For some, this is not a problem. Scholarships and their own personal finances allow some students to go to college at any time without worrying about money. For others, paying for school is a struggle. This is why it is important for you to understand what college loans you can obtain and what eligibility requirements you must meet.

For private loans for students issued by a bank or other financial institutions, you must have excellent credit – or a cosigner with excellent credit – to be issued a private student loan. For those students without excellent credit and/or a cosigner, the federal government offers federal student loans that do not require a credit check. Just about everyone is eligible for a federal student loan, but to ensure that you are eligible, you must understand the Student Loan Eligibility requirements. They are not too difficult or too complicated, but you need to understand a few requirements before you apply.

Anyone that wants to apply for a college loan must meet all eligibility requirements. The first is that you must be a high school graduate or you must have obtained your GED. Additionally, you must be enrolled in an accredited college or university or you must have been accepted as a student at one of these. You must be a United States citizen or an eligible non-citizen, which means you, must have your Green Card or you must be a student that is in the country for the specific purpose of going to college on a school Visa. You must also have a valid Social Security Number as issued by the Social Security Administration.

Furthermore, you must maintain satisfactory academic progress while in school to maintain your eligibility for a student loan. You must not be in default of repaying another student loan and you must sign a form stating that you will use your federal student aid only to pay for college classes and other college expenses. The final eligibility requirement for obtaining federal student loans is filling out the FAFSA. The Free Application for Federal Student Aid is available on the internet or you can pick up an application at any college campus. You must fill this out and submit it to the federal government – it is easier and faster and you will get your results sooner if you fill it out and submit it online. Once the federal government reviews your FAFSA, your school will be issued the funds you need to go to college. You can accept the full amount of your student aid or you can accept only what you need to cover tuition. This is all you need to know about student loan eligibility requirements.

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Benefits of Subsidized Educational Loans

There are so many benefits of subsidized educational loans that cannot be overemphasized. These loans are usually guaranteed by the United States Department of Education, such that the beneficiaries of these loans do not have to make any interest payments for the loans.

Sometimes, these loans are guaranteed by other guaranty agencies appointed by the United States Department of Education after satisfying various conditions offered. A whole lot of students wish they could have these loans but it is not every kind of student that is eligible for it.

Subsidized Education Loan Eligibility is usually meant for students who have serious financial need. Such financial need must be demonstrated in that it must be proven that the student is in critical financial need. There will always be students who are in need but proving to educational authorities that you need a subsidized student loan can be another thing.

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There must be irrefutable evidence to show that you are really in need. There are various evidences that can be shown or used to prove ones eligibility for a subsidized student loan. Most times there is a serious competition for limited slots to be offered this kind of loans, hence anybody that is well qualified for it should be ready to prove it beyond any reasonable doubt.

One of the most coveted benefits of subsidized educational loans is the non interest payments that come with such loans. The student who has benefited from these loans is only expected to pay the principal amounts borrowed. Another benefit that is there is usually a grace period of six months after graduation before repayments can commence.


Learn about the defaulted student loan

The cost of getting college education and the other higher studies is rising every year. Many aspiring students are therefore seeking help in terms of the student loans. This type of student loans allow them to go for higher college degrees in reputed institutes which they would not have otherwise be able to afford. The benefits of the student loans are several in numbers like the rate of interest is much lower than that of the other traditional loans. The lender organization usually allows the borrower student a longer tenure of time for the repayment of the loan and usually they also allow you to finish the school before you start the repayment of the student loan process. Many a times, there are also student grants available. It is a better thing to get these grants as you need not repay it back. In case of the loans, there is a chance that the student loans in default occur. The defaulted student loans can make a huge impact in your professional as well as personal life for several years of your life. Thus no matter when you make such kind of student loans in default, the impact can really affect your life and also career.

The defaulted student loans have serious impacts like it is sure to damage your credit score and eventually prevent you from getting any loans in the near future unless you repay the previous loan. The longer you are unable to repay the student loans in default, the more damage is done against you. The defaulted student loan eligibility also affects your tax refunds and that may on the other hand lead you to garnish your wages and get you involved into a law suit. There are many ways to avoid the defaulted student loan. One of the most popular ways is to consolidate the student loans in default but then there are certain eligibility criteria that you must fulfill so that you are able to consolidate the defaulted student loans.

The eligibility standards include a good FICO score, you must also pay at least three repayments in full amount, all the due student loans in default must be in their current billing cycle and finally you must wait for at least 6 months from the main and the final date of your graduation before you are termed as an eligible candidate for the defaulted student loans. One of the main benefits of the student loan in default is that you get a reduced rate of interest once you are a graduate. If you want to pay the student loans in default through the automatic method of withdrawal, then the chance of the reduction in the rate of interest is even more than that of the normal procedure. You must also be aware that all of the student loans vary from each other in terms of the various features. Thus it is vital that you get to understand all the features of the consolidation loan before applying for it.