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Realize Your Dream with Student Loan for Studying Abroad  

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student loan for studying abroad

Table of contents

Importance of Choosing the Right Student Loan for Studying Abroad
Why is an Education Loan Becoming a Popular Option for a Study Loan
How to Conduct Initial Research and Assessment for Study Loan
Benefits of Applying for a Study Loan for Study Abroad Program
Fundamentals to Follow While Applying for Study Abroad Program Loan
Key Points to Keep in Mind After Opting for A Study Loan
Government or Private Sector Loans: Weighing the Options
Conclusion
For aspiring students who wish to study abroad, financial planning may be a daunting task for many. For those who want to arrange the required sum, here are some main aspects to tap into, while you are considering applying for a student loan for studying abroad. Let us explore which loan type is the best for you to study abroad.

Importance of Choosing the Right Student Loan for Studying Abroad

Making the tough choice for yourself, or as parents, your children on what to do next to pursue higher studies can be an overwhelming task.  Especially when the option of choosing a study abroad program, you will have tens of questions on the way forward such as application for a Visa and school or college admission procedures, deciding whether to go for an education loan or not, how to manage finances for food and accommodation in a foreign land. All your worries are over with these options to financially equip you for a study abroad program. 

Study Abroad Program

Why is an Education Loan Becoming a Popular Option for a Study Loan  

Nowadays, a study loan for studying abroad has become as famous and essential as the tuition fee in any educational institution. With a study loan disbursement in hand, a student can simply enroll at the college or university abroad, of their choice. 

This is no child’s play when it comes to deciding to opt for a study abroad program. Only students who have thought before deciding to apply for a student loan for studying abroad will diligently utilize the disbursed amount and complete the education with flying colours. In some cases, some students applied for an internship where they studied abroad. Read further on to know how you can benefit from applying for a study loan. 

How to Conduct Initial Research and Assessment for Study Loan

  • Overall Program Costing: Includes tuition fee, living and travel costs, and any miscellaneous program expenses. Coming up with an approximate figure while applying for a student loan for studying abroad 
  • Break Up of Disbursement Amount for Fee and Scholarship: Consider jotting down any grants, scholarships, or any other type of financial aid you've received to adjust the difference amount in the total amount planned 
  • Repayment Ability: Including your potential to earn during or after your study abroad program will help you when estimating your ability to repay the loan. 
education loan for studying abroad

Benefits of Applying for a Study Loan for Study Abroad Program 

For promising aspirants with difficult family contingencies, the current family financial situation may not suffice to study abroad. Applying for a student loan for studying abroad is the best way to suffice the total cost incurred to get a study abroad program fully completed. 

You have the liberty to choose between the total education completion fee or part of it for your end-to-end education and miscellaneous expenses. It is advised to consider applying for a student loan for studying abroad as an opportunity to build a comfortable and decent life, and not a bad debt, as the opportunities that lie ahead will compensate for the money borrowed at present. 

For your convenience, some rules can be passed to support a young aspirant to achieve their dreams. For such leniencies, there are a few lenders from both the Government and Private Sectors who go all the way to make a student applying for a study loan happy. 

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Education Loan for Study abroad

Fundamentals to Follow While Applying for Study Abroad Program Loan  

Your student loan for studying abroad can be approved and passed if the following criteria are met by the student: 
  • Must be a citizen of India 
  • A guarantor or a co-applicant present will ensure acceptance of the application 
  • A letter of acceptance from the university 
  • The financial situation of the student’s family should be stable and healthy 
  • Must have the necessary proof of documents at the time of loan application such as school marks cards, proof of identity and residence, salary slips if any, admission acceptance proof 
  • Careful collation of legal documents in case of a mortgage, gift deed etc. involved 
study loan

Key Points to Keep in Mind After Opting for A Study Loan

  • For repayment, it is important to ponder what type of Interest Rates is best suited. You are given two options, fixed or variable. This significantly impacts the total loan cost. The fixed interest rate remains constant throughout while the variable is a dynamic one. 
  • Be mindful of processing fees and other hidden charges and penalties before the said time frame associated with the loan at the start of the loan repayment process. 
  • Choose a loan with convenient repayment options that best suit your financial goals once you find a job. Look for a loan with a holiday period facility where you only start repaying post-course completion, and when you start earning right after.  
  • A longer loan term converts to lower monthly payments; however, the interest amounts paid increase at the end of the term. As opposed to this, a short-term loan means a higher EMI amount but less overall interest.  
  • Look for convenient disbursement options and look for lenders who meet your study abroad program's requirements. Some programs might require direct payment to the university. 
  • A small tip for you here is if you bring in a co-signer, especially it can be beneficial if you have limited credit history, which is usually the case in students. 
  • Look for a lender who has a reputable customer service wing, so that even when you are abroad, you can experience seamless options related to the study loan. Having access to prompt and helpful customer service is essential throughout the loan process. 

Government or Private Sector Loans: Weighing the Options

Opting for Government Loans:

Pros: 

  • Government-backed lenders offer relatively lower interest rates compared to private loans. 
  • Provides income-driven repayment options, making repayment easily manageable while keeping future income as the source. rantor or a co-applicant present will ensure acceptance of the application 
  • These lenders offer flexible borrower protection options, when a loan applicant cannot afford to repay the study loan amount due to unforeseen circumstances, he or she can then transfer this loan to another who is willing to help you through deferment or forbearance options. 

Cons: 

  • Eligibility requirements are more stringent, especially to have a permanent resident or citizenship status. 
  • Study loan amounts may have limitations in government-backed loans, requiring additional funding sources apart from this loan. 
  • The application process is not as standardized and quick processing. 
student loan for studying abroad

Opting for Private Sector Loans:

Pros: 

  • Offer more flexible eligibility criteria, making them a better option for students applying for an education loan for studying abroad. 
  • Private lenders offer higher loan amounts to cover the entire cost, right from food and accommodation to tuition fees, of your study abroad program. 
  • The application process is fast, with clear communication between the lender and the applicant and more streamlined compared to government-backed loans. 

Cons: 

  • Generally high interest rates compared to government loans. 
  • May be stringent in borrower protection programs, with limited or no options for deferment or forbearance. 
  • Repayment terms are more fixed and less flexible, leading to paying higher monthly installments. 

Qck Loans is here to help choose the best option for student loans for studying abroad!

Reach out on +91 9448113666 or write to us at qckloans@gmail.com to let us know our process now!
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Conclusion: 

You are Now Ready to Take the Next Step!

We at Qck Loans have equipped you with the information to navigate through which type of student loan for studying abroad. You are the master of your dreams and hence, after considering the pros and cons of government-backed and private lender loans.
Now that you are aware of this knowledge, you can confidently conduct your research on various lenders and government loan programs to find the best fit for your study abroad program. Be mindful of how a student loan for studying abroad can be a powerful enabler to help you achieve your academic dreams.

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