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.

Source: http://shyamolishah1.onesmablog.com/How-education-loan-eligibility-calculator-works–2555802

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.

Source: http://griffithchafey.ning.com/profiles/blogs/what-are-the-student-loan-eligibility-norms

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.

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.

Source: http://ezinearticles.com/?Benefits-of-Subsidized-Educational-Loans&id=4146994

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.

Source: http://www.sooperarticles.com/finance-articles/loans-articles/learn-about-defaulted-student-loan-610162.html

What Students Had to Understand About Higher Education Funding Provided By Public or Private Firms

Big adjustments have come to the higher education loan industry as a result of the Stock market meltdown. Much longer before the pyrotechnics of failing credit union and government bailouts, lots of students have actually felt the credit crisis as they returned to school to find that they had to scramble to find new lenders ready to service their student financings.

A college student loan provider that was supported by unsuccessful financial services company needed to notify pupils that the nonpublic lendings they had been permitted for would not be cashed. Baseding on some banking firm, 70 private lenders have indeed left the student loan industry in 2008. A number of these loan providers have suspended business in the higher education loan market and others have put on hold loan programs with universities that they consider as being a higher threat, on the other hand, numerous lending institutions have gone out of business entirely.

Here’s what you have to know to get the money you have to complete your educational aims:

Support is on the way. The senate successfully passes the Ensuring Continued Access to Student Loans Act which will definitely permit the Secretary of Education to buy fundings from private companies. This move should raise the assets of these loan providers, permitting them to loan more money to students.

The Ensuring Continued Access to Student Loan Eligibility Act also changes the terms of settlement for PLUS loans. Within the present terms, parents need to begin repayment 60 days soon after the disbursement of cash. Going ahead, parents will possess the choice of delaying repayment for as much as 6 months right after students leave college.

The all new act likewise raises the loan limitations on fixed price, no credit check on some lending’s. This move was targeted at helping students save funds by foregoing more expensive private student lending’s.

Credit reliability is essential. Guard your credit report! As lenders work to shore up their bottom lines, credit value is paramount. Alternative fundings, which are credit based, might be an option you will need to consider with the rising expense of university fees. In the event that you really don’t have good credit, you will have to find a co-signer.

Complete the FAFSA to get approved for the all the financial aid available to you. Higher education loan eligibility is identified based at the time of the info contained in the FAFSA or Free Application for Federal Student Aid. Accomplishing the FAFSA will help to identify your qualification for grants financial aids and work-study along with student loans. Increasing your financial alternatives will create more money readily available for education expenditures.

Ensure to get in touch with a financial aid adviser at the college or career school that you plan to join. Schools are needed to update you of their financial aid procedures and deadlines. They can additionally inform you of other forms of financial aid, like state programs of school based scholarships.

Keep that in mind the extraordinary financial crisis affecting the higher education loan industry is continuously fluctuating. The very best way to make sure that you have the funds that you need is to be updated of the modifications and how they affect your financial aims.

Source: http://www.sooperarticles.com/education-articles/financial-aid-articles/what-students-had-understand-about-higher-education-funding-provided-public-private-firms-1464931.html

Student Loans – The Essential Information Resource!

Student loans are provided by a joint Federal and Provincial program with the amount of and eligibility for a loan different between the Provinces and so depends upon the Province you are a resident of (your Province or territory of residence is decided by where you have lived for the last 12 months consecutively whilst NOT a student). You may, however, attend any educational establishment in the country provided both the establishment and the program of your choice are listed by the assistance office in your province.

There are several different types of funding for post secondary education that include grants and bursaries (which you wouldn’t have to pay back) but there are 2 main types of student loan – the Federal and Provincial programs. Whichever type of loan you wish to apply for it all has to be started off by applying to the Provincial/Territorial Assistance office for the Province you are officially a resident of.

The main attraction of student loan eligibility is that although they are REAL loans that do have to be repaid, they are interest free while you remain enrolled in an eligible education program. Once you graduate/leave education the repayment terms are set (normally low interest and you agree the repayment term) and you begin to pay them back. Banks and other lending establishments are no longer involved in offering new loans as all funding is provided by the federal or provincial governments.

Quebec, Northwest Territories and Nunavut are NOT involved in the Canada Student Loans program and have their own systems. If you are a resident of one of these 3 provinces or Territories then you need to contact the particular office for that Province.

To start the ball rolling with the application for a loan there are several processes that you should consider. Your eligibility is the most important – both you (the applicant) and the course you wish to undertake must meet the criteria laid down.

The applicant: The main factor of eligibility is whether you are intending to be a full or part time student. If you are a part time student (20 – 59% of full course load) you may only apply for federal assistance though you would apply through the provincial/territorial assistance office.

A full time student (60% + of a full course load) may apply through the same offices but will be considered for both Federal and Provincial support (depending upon the province in question) though this would have to repay both the loans. The difference between the Provinces and Territories is prevalent here as these provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and the Yukon all would entail paying the loans back separately. If you are from Ontario or Saskatchewan then you would make one payment back to the NSLSC which would cover the total amount borrowed from both the federal and provincial programs.

The course you wish to enroll on must be listed on the Master List of Designated educational Institutions – it is strongly advised that you ensure the establishment you wish to attend is recognized by your provincial provider and the course choices meet the necessary requirements before you commit to it. This also applies if you wish to attend an overseas establishment.

Your personal financial status will determine the amount of assistance you will be offered with the Federal loan system covering up to 60% of the total you are assessed as needing and the provincial system contributing up to the remaining 40%. Your “needs” are assessed by the provincial office when you apply as they handle the initial application and will forward you the loan documents. Once the Provincial or territorial Student Assistance office has received and processed your application, it will establish the amount of loan you are entitled to apply for and carry out credit checks. Once approved, your Canada Student Loan will be administered by the National Student Loans Service Centre (NSLSC) through to its termination (full repayment).

This agency is responsible for all loans supplied since 1st August 2000 and has two distinct sections. The Public Institutions Division (looking after anyone attending a course at a Public facility such as a University or Community college) and the Private Institutions Division (for those who are receiving instruction at a privately funded facility like a technical college or trade school).

Article Source: http://EzineArticles.com/152184

Educational Loans Intended For Students to Realize Dreams of Higher Education

In India there is famous slogan ‘Education for all’ but how to achieve this. In India where the number of people living in rural areas is more than the urban and are poor thus on the first place it is difficult for them to think about going to school and somehow they manage to take up education up to the secondary level, it is impossible for them to take up higher education.

The basic reason behind this is lack of money. The fees associated with the professional courses are so high and other expenses related to these courses also cost more therefore it makes difficult for a poor and middle class students to pursue for these courses. In current scenario it has become difficult to live a smooth life with limited income and cost of education is also high.

Every parent wants to give best education to his/her child so that they can fulfill their dreams and live prosperous life. To overcome this problem in India banks offer education loan eligibility for students. Earlier education loan was given for pursuing professional courses but now the policy has been changed. The loan can be taken for the primary level education also especially given for girl child for the development of the girls.

Education loan covers the complete expenditure of a course such as tuition fees, cost of study material, hostel fees, for buying equipments related to the course, etc. This personal loan has proved to be a great help for the aspiring students who have the aptitude but due to lack of money cannot think of taking up higher studies. Therefore this personal loan has to much extent has helped to come over the financial problem of many students and move further to achieve their goals.

Banks give education loan for pursuing higher education and professional courses within India and abroad. The terms and conditions, loan amount and the tenure vary in both the cases. Students who have secured admission in the colleges and professional institutes are eligible to take loan. Banks charge different interest rates for different loan amount.

The repayment of the loan commences one year after completion of course or 6 months after securing job, whichever is earlier. Earlier the students who took loan for professional courses in which high cost is involved, bank used to take collateral from the students but now government has removed the collateral security on the 4lac amount. Loan above the 4lac amount will carry collateral condition. However the repayment tenure for students taking higher education within India and abroad is different. Generally this loan comes with an option of equal monthly installments.

Moreover there is personal loan which parents can take for the higher education of their children. The interest rate on this loan is more or so similar with flexible terms and conditions.

Article Source: http://EzineArticles.com/1738150