Top Myths About Education Loan

 

Are you exploring education financing options? Surely, you have heard a gazillion opinions about funding your higher education correctly. You might have a long list of good advice, but did someone tell you anything about education loan myths? Most of you say no and that’s obvious. This is because not everyone is wise guy to guide you completely. To assist you in making truly informed decisions about your funding for education, Sharat Chandra Konatham, a leading fintech entrepreneur has debunked the top education loan myths.

 The myths are often considered facts by the general public. These misconceptions might raise a huge problem later in your career. For assuring a secured education loan, Sharat Chandra Konatham not only dispelled the myths, but also provided expert tips to you. Have a look -

Myth 1 - People with top-notch grade get the education loan

This is one of the popular myths among students; they think that only good grades can bring them a loan easily. This is not always the case. There are many such institutions that just require someone from your side to take a guarantee for your loan. Moreover, if you can show a confirmed admission slip or any other document, then you are eligible for an education loan. It is not the past grades but it is repute of your future Institute that determines the loan availability. If your desired Institute is not covered by Banks for Educational Loan, you may have to reach out to NBFCs through platforms like Fee monk to avail an Education Loan.

Myth 2 - Admission to premier the institute will get you a discount

Getting a seat in one of the top 100 universities of the World won’t really affect your education loan structure. Your admission to premier college is just evidence of your academic caliber and extraordinary talent. You will definitely get appreciation, but there is no such provision for allowing discounts while repaying your education loan. So, before you take admission in any top institute make sure you or your parents are not expecting any sort of discount on education loans.

Myth 3 - Education loan terms are the same for all students

SharatChandra Konatham mentions this myth as one of the biggest misconceptions among students. Different lenders have designed their own criteria for sanctioning the loan. For any student, a lender majorly considers his/her program relevance, projected salary with financial details, and learning outcomes. The program that a particular student attends will be helpful in deciding the loan amount and other education loan terms. As you see, there is no single formula for providing loans to students. Therefore, it is always crucial to perfectly analyses and compare different offers as there is a wide range of offers for different students.

 Myth 4 - Education loan make a student ineligible for scholarships

Scholarships and educational loans share the same objective; helping students pay fees for their dream education. The restrictions for using the money are also the same; you will not receive the money in your hand. It will be paid directly to your institution. The only thing that creates a difference is - you need to repay the loan but not the scholarship.

Your academic performance and college fees play a significant role in determining the value of scholarship and education loans. However, there are several unrelated factors for availing both of them, but none can make you ineligible for receiving your scholarship. In fact, every single penny of your scholarship will help you to reduce your loan burden.


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