If you look at comparing scholarships and education Loans, and which works best for you, it is important to consider the factors of financial situation and long-term projections of your working status, academic course profile and long-term goals associated with your studies. By being sure of all these factors, you can decide which option is best for you.
Scholarships are a type of financial help where institutions encourage students to realize their goals and aspirations. The students are selected for this opportunity based on many factors like their academic performance, merit, athletic capability through a separate sports quota, financial need, or it can be a combination of all. As appealing as it may sound, the percentage of students landing on a scholarship is less compared to other financial support options, as the openings for the same are limited. tages. Let us explore which option is best suited to students between scholarships and education loans in India.
Awared to students based on their academic records, talents and skills in extra-curriculars.
Awarded to students who score exceptional marks in academics for top performance.
Awarded to students who excel in sports and have taken part in major sporting events in the country or internationally.
Here, students who are in dire need of pursueing their education are chosen for this type of scholarship.
These types of scholarships are provided to students coming from certain classes of society under reservation or for those with physical disabilities.
There is no repayment obligation while opting for scholarships and it is the most significant benefit.
Once a student receives a scholarship, a sense of ownership and responsibility sets in, to put in his or her best efforts to become successful in academic performance.
Networking opportunities are ready to open doors to relate and collaborate with alumni, receive guidance from different mentors for education related guidance and support.
Receiving a scholarship is equivalent to validating your accomplishments with a sense of pride to show around your family, friends and acquaintances.
Scholarships are limited and are often awarded to a limited number of applicants, however, the demand for it can be higher than the granted number.
As scholarships need not be repaid, the amount given to the student must be used judicially, or it should be worth it. Hence, many scholarships have specific stringent requirements, such as GPA, test scores, or extracurricular certifications in art or sports for instance.
Scholarship grants are of fixed amount, and not all students can qualify for scholarships, with varying amounts awarded for everyone.
When a scholarship announcement is released, not many students get to know of it, unless they are pursuing it aggressively. This feature makes students lose out on scholarships that they could have easily qualified for.
An education loan for abroad studies on the other hand, is guaranteed fund of a set amount, lent by financial institutions to students. They can then channel it to realize their goals of pursuing higher studies to make a pathway for a flourishing career.
Education loans are classified based on the type of institution lending them to the student. These loans cover the major aspects like tuition fees, accommodation, travel and other expenses related to the course. Hence it is crucial for you to know the options that you have, to pursue your goals without taking the financial stress on your shoulders alone.
These loans are provided by banks and other financial institutions to pursue their higher studies anywhere within India
Studying abroad may be expensive for many, hence you can consider opting for these types of loans for those who are keen on pursuing their higher studies abroad.
Some families cannot afford to pay a large amount for education due to their financial contingencies. However, pledging a property, securities or deposits in the family name can help you secure a loan, which is otherwise known as a secured loans.
While applying for your education loan, you can include a co-signer as a surety to the loan amount you have borrowed. This way, banks become less reluctant and based on your co-signer’s guarantee, will disburse your loan amount. This also is a type of secured loan, and your co-signer is the guarantor here.
As the name suggests, you can avail yourself of this loan to pursue your education in graduate courses. You can apply for top colleges within India or abroad using the funds.
You can receive a master’s degree in the course of your choice anywhere in the world using these types of loans.
Education loans are readily accessible when compared to scholarships, with less stringent eligibility criteria.
The deal with education loans in India can cover a wide range of educational expenses, like tuition fees, books, and living costs. It also comes with seamless customer service, when you are stuck with financial hiccups concerning transactions and other issues such as unexpected delays in paying an EMI and others.
Most lenders offer tangible and reasonable repayment options, helping graduates to manage their debt effectively. Some lenders are considerate of repayment only after a student land in a job.
Once opted for an education loan, the repayment tenure is a long period, and there are chances for the interest rates to fluctuate along with changing regulatory conditions prevailing at that time.
Once you have availed of education loans in India, you are indebted to repay it back for a long period.
You are at the risk of defaulting at any point in time throughout the loan tenure and is considered to manage your credit score leading to legal implications.
