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Tips that will Help You to Pay Off Study Abroad Loans

If studying abroad is a dream, then availing a study abroad loan is one of the primary approaches for funding. The challenge arises when you need to start fulfilling that education loan. Achieving financial freedom and living a debt-free life is what every student aspires. Paying off the debt as early as possible can free up the earned income which can be further utilized to invest wisely for the timely attainment of financial goals.

Another major reason to pay off Education Loan for abroad studies in the stipulated time is to retain a respectable credit score. You will the 5 most effective and tested ways to clear off your education loan.

Read on.

  1. Pay the Interest During the Course Duration

Every bank or finance organization has its own policies for rate of interest which are applicable on the loan amount. These are simple interest rates and the compounding of this interest increases the financial burden when actual loan repayment begins after your grace period is over. Hence, it’s always better to choose a lender that offers a lower interest rate. It is really important to wisely choose the overseas education financer. Some Financial Institutions give an option to pay loan interest amount upfront and in one go. This facility is provided depending on the nature of course and underlying demographics. These kinds of financial organisations are to be approached.

 

  1. Smooth Planning of Finances

During the tenure of the course, spend wisely. Use a suitable Insurance Policy to cover the medical bills. Look out for some part-time work, which helps to put aside a certain amount of money on a regular basis. It doesn’t matter how small the amount is. Small amounts put together in a systematic manner amount to larger amounts in the future which can be utilised to pay student loan EMIs.

 

  1. Earn While You Learn:

Students should consider taking part-time jobs to bear the day to day expenses. This can help to repay a large chunk of money through instalments or through a single stroke. There are some lenders that do not charge for repayment or charge less. So, again it all depends on choosing the right lender. Nowadays, repayment of student loan debt or providing assistance for student loan debt is the new employee benefit incentive which is becoming very popular as companies find this to be a good way to retain the right talent.

 

  1. A Little Excess Interest Every Month Will Add To Big Profit

This is another great way of paying the study abroad Loan debt early. Also, there is a special provision given to students before they start repaying their education loan. Now this is in the case of both secured and unsecured overseas education loan. The moratorium period or EMI holiday period allows the student or parent to pay the simple interest applicable for loan only during this period. The completion of 1 year after finishing the course or 6 months after getting the job from the time the loan is transferred to the student’s account is the stipulated Moratorium Period. Then the regular decided EMI value has to be paid by the student every month. This can be definitely beneficial in the long run of repayment.

 

  1. Opt for Some Good Investments

This could be a creative way to pay off the higher education loan debt only after the student gets a job. Or if the student has some additional funds. The whole idea is to invest some money for a longer time frame. One of the great ways to do that is to choose a good Mutual Fund or alternatively invest the money in a Fixed Deposit which offers a fixed yearly return. Using this technique, the loan debt can be paid off by with the returns or interest earned from the investments. This way money keeps multiplying eventually easing out the burden of the entire loan amount.

Contact the nearest overseas education consultants to get complete guidance on education loan for study abroad which  now you know will not be overburdening.

Take the right steps today to live debt-free and stress-free tomorrow.

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Studying abroad – Breaking down the roller coaster ride

After long months of continuous wait, uncertainty, hard work, sorting out of documents and applying in various Universities, finally getting admissions into a college abroad may seem like a dream. Congratulations! We bet you can’t wait to begin your new life.

Studying abroad is definitely one of the most exciting experiences you will ever have and the most probable to change your life forever. However, the actual experience of studying abroad may be very different from what you have probably been day dreaming about since the last few months.

First of all, we would like to inform you about the various myths of studying abroad. Beware, we do not wish to break your heart or pull your morale down, but we do want to give you a clear picture of what to expect.

Studying abroad is not a cakewalk. Most of the University brochures, websites and movies (read Bollywood) you have seen till now have created an image of perfection in your mind. Even Google images seem to repeatedly remind you of the beauty of that place.

Yes, this is all true, but not entirely. The city you will live in will not be as beautiful throughout, and you will NOT live in the most expensive, beautiful area of that city. The window in your bedroom may not have that picturesque view Google images had shown you and the locals around you may not always be as fluent with English as you thought them to be nor as helpful as you’d like them to be.

For most students, studying abroad comes with a lot of dreams. Having realistic expectations about the country you are going to study in is always a better option. Prior research on the culture, people, and University campus will help you a great deal. Getting to know about the local history, cuisine and sentiments of people will help you integrate into the society better. If the country has a language other than English, prior knowledge of the language is a great idea.

Many students go abroad with unrealistic expectations of traveling, partying and having a good time. Traveling not only requires a lot of money, but as international students, there are several laws and regulations that have to be fulfilled.Ideas about working and earning should also be realistic; these do not pay very well and require a lot of hard work.

If you go with such expectations, the monotonous routine of going to attend lectures every day will seem very boring to you. You must go with a clear mind on these aspects.Now that your bubble is burst, we would like to familiarize you with the highs you will experience once youâve left home.

The first and the foremost are your freedom and independence. After so many years of living under you parents, that exhilarating feel of freedom will be irreplaceable. Of course, there will be days you will miss your family and feel homesick, but rest assured, the years spent away from home will make you independent and strong. You will learn how to deal with the worst situations on your own and you will finally realize that at the end, all is well.

At some point, you will find friends who will replace your family and make you feel that you are not alone. You will also find some very kind, empathetic people and will notice the feeling of responsibility every citizen has. You will suddenly want to make sure roads are clean and follow traffic rules!

You will build a life of your own and know all the streets of the city. You will finally be living the life you’ve always wanted to in the city of your dreams!

This is when you will find yourself so well integrated into their society that your home town will seem like a distant reality. Countless opportunities will cross your way.

And then, all too soon, there will come a time when your program will near its end. You will then you will pack all your memories and lessons and take home the new person you have become, leaving the old you behind.

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