Once someone starts planning their higher education, especially to study abroad, the question of funds strikes their mind. However, they need not worry, as there are many options available for students to fund their education. Thus, most of the students are left with no other option but to opt for an abroad education loan, which is one of the ways for them to fund their education.
Sometimes the repayment of an abroad education loan can become a nightmare for a person. Perhaps the repayment of the study abroad loan should be structured in a way that does not count as a burden. Lack of proper strategy and a smart plan is the reason why most students consider repaying a loan a liability.
Paying off any debt early is helpful in the long run. Longer repayment terms in the early stages might look pleasing, but just thinking of paying interest for years is quite frightening and can even lead to a stressful situation. You can’t think of taking any other loan while paying EMIs for it already. Sometimes, a loan with a longer tenure can become a roadblock on your way to financial success.
Here we have enlisted some pointers to help you pay off your study abroad loan early:
While strategizing your repayment plan, you need to take into account all other expenses. The inclusion of other expenses is necessary since it gives you a realistic idea. If you have an idea in the back of your mind related to the repayment plan, then it would be easier to segregate your expenses. You must have other daily expenses that should be taken care of, so create mindful strategies. Keep in mind when and what amount you should release to repay your loan.
Before considering the option of a loan, you should look for a scholarship. Scholarships are the best way to help you eliminate the burden of loans. Being a student, you can go for country-specific, course-specific, or even government scholarships. Students can get hold of any scholarships if they fulfil the eligibility criteria.
If you get a scholarship, then ultimately a certain amount of tuition fee or expenditure will be covered under the scholarship. So, you need to opt for a smaller foreign education loan. In addition, scholarships have other benefits too. Since you do not need to pay off your scholarship, it is not going to add to your burden. Education Loan Guru can assist you in finding good scholarships and further with education loans.
Keep your eyes and mind open while planning to opt for an education loan to study abroad. Read and explore the different types of education loans available on the market. Several options are on the market for students, but finding the right education loan is a problem. Check out the documents and formalities before applying for a loan, in case you need any help with it, then contact the Education Loan Guru. Further, explore options that have flexible repayment options. The main factor that you should take into consideration before opting for any loan is the interest rate.
You will require a higher amount if you are planning to study abroad. So, you need to plan accordingly.
Wishing to pay off an education loan early? Go for a shorter-term loan. If you will pay more in the short term, then there are higher chances that your loan won’t become a burden. When applying for a shorter-term loan, the EMIs will definitely be higher. But paying off higher EMIs for the short term is better than paying off fewer EMIs for the long term.
It is advisable to go for a shorter-term loan to keep yourself free in the long term. Choose the shortest tenure of the loan so that you don’t block yourself. Repaying an education loan to study abroad early makes you eligible for a new loan, like a home loan, a car loan, or any other loan.
There is only one option to get rid of an education loan without disturbing your day-to-day budget: to earn more. Always look out for more opportunities to work so that you can make a good amount. Earning an extra penny will assure you of getting rid of the loan faster. You can either look out for freelancing options or try exploring part-time jobs that suit your profile. This way, you will be able to add quality to your career and repay the education loan faster. As a student, no country denies you the right to work as a part-time worker.
Planning to utilise your bonus in an effective way? Then, use some extra cash or bonus to pay off an education loan. Repaying a loan using these bonuses or savings is the best way to pay off the debt of a student education loan early. You can repay loans in larger amounts, which will help you clear your debt faster. Even gift cards sent in by your friends, relatives, or family will be helpful for students to pay off their education loans early.
However, check whether your lender is charging you any penalty for prepaying the loan.
Tip: You can claim a tax deduction on the repayment of a student education loan to study abroad.
Education loans are a way to escape the demand for finances to study abroad. However, the repayment of loans becomes hectic for students. Most students wish to get rid of long-term debt or loans. So, we have presented to you a few ideas to pay off the education loan early. Use these pointers to make hassle-free payments on your loan early without getting stressed throughout your life about the loan.
By Education Loan Guru
