Study Loan
A Study Loan is a loan for the students which benefits them to pay for their education and other related fees like books, tuition, miscellaneous, cost of living and supplies. Banks and NBFCs provide it for a maximum tenure of 7 years. After the end of the applicant’s education, they have to repay the loan in the form of EMIs.
Study Loan for Abroad
A Student can obtain a Study Loan for studying in India as well as Abroad. It has a considerably lower interest rate, as the main applicant of the loan is the student itself. The repayment tenure can go for a maximum of 7 years while it still varies in exceptional cases and can be extended up to 15 years for higher loan amounts. The interest rates and repayment tenure varies from country to country. Some of the examples of particular countries are explained below:
Australia
In Australia, students are mainly funded through these two schemes.
HECS – Higher Education Contribution Scheme
HELP – Higher Education Loan Programme
These two funding are not normal debts. Instead, they are repaid utilizing a supplementary tax using a sliding scale based on the loan applicant’s taxable income. As a result, the applicant can pay back the loan once he starts earning to support the timely payment of the loan. Students can, however, make an early repayment to get discounts. Both the schemes are available to the citizens and humanitarian visa holders of Australia.
Canada
In Canada, the Government sponsors study loans to post-secondary students to help pay for their education expenses. A program run by the federal government named Canada Student Loan Program funds students. In addition, Canadian banks give commercial loans to a specific set of students who are in professional programs.
New Zealand
New Zealand grants study loans for tertiary students who fulfil the eligibility criteria. Here the loans are provided based on whether the student is a full time or part-time student. A full-time student can claim loans for both fees and cost of living, while the part-time student can only demand the education fees. In addition, the loan can be borrowed free of any interest rate by the student who is a resident of New Zealand.
South Korea
Korea Student Aid Foundation manages study loans in South Korea which provides every student with the opportunity to grow and refine their talents and serve the nation as a proud member of Korea.
United Kingdom
The Student Loans Company provides study loans in the United Kingdom. Repayment starts the very next tax year when the student completes their education. The same can be cancelled by the lender if the borrower dies or is unfit for work.
United States
There are two types of loans granted in the United States.
- Sponsored Study Loan by the Federal Government
- Private Student Loans (State-Affiliated Non-Profit, Institutional Loans by Schools)
Study Loan for Abroad – FAQs
✅ Is it worth taking a study loan for studying abroad?
Study loans, if utilized in a correct way can help the student to pay for their education and pay back the loan without burdening the parents. However, the student must not take a study loan for studying abroad if he just wants to fulfil a degree.
✅ How much loan can an applicant get for studying abroad?
There is no particular limit set by the banks. However, it depends from bank to bank. Most of the banks offer loans for a maximum of up to 20-30 lakhs. The higher the loan amount, the higher is the interest rate of the loan.
✅ Can a student get a study loan without the parents?
A student can obtain a private study loan without a parent, withstanding the condition that private loans generally require a creditworthy cosigner, no matter who it can be. If a person having a good credit score is willing to cosign a loan, you can easily get a study loan without your parents.
