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Scholarships vs. Education Loans: Which Is Right for You?

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Education Loans

Table of contents

How do Education Loans and Scholarships help?
What are the Main Aspects of Scholarships?
Education Loans are an Ideal Solution
Deep Diving into Education Loans 
Brief on Types of Education Loans
Factors to Consider When Choosing a Loan
The Role of Education Loans in Financial Planning
Conclusion
The pursuit of going for higher education is a significant breakthrough for setting a career roadmap, however, it often comes with a high cost. Because of this reason, many students are torn between giving up this dream or continuing to pursue higher education with aided assistance. In this pursuit, many students look for scholarships or education loans. Both these options have their merits and challenges. Let us dwell on the aspects of scholarships and education loans and what can best work for you

How do Education Loans and Scholarships help?

While scholarships look more tempting to apply to than education loans, the former come with a heavier package of disadvantages. Let us explore which option is best suited to students between scholarships and education loans in India.
Scholarships vs. Education Loans

What are the Main Aspects of Scholarships?

Scholarships are primarily allocated funds or grants awarded to students looking either for this form or education loans for abroad studies, based on academic merit, financial requirements, and other criteria specific to the institution. This mode of financial assistance can prove to be a breather for students qualified for higher studies through scholarships. They represent a form of financial binding that does not require repayment, making them a go-to option for those seeking to minimize or nullify their educational debt. Scholarships are of many types, they can cover a portion or the entire tuition, fees cost, books, and living expenses.

Advantages of Scholarships  

  • 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. 

Challenges of Scholarships  

  • 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 amount 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. 
  • Once awarded with a scholarship, it is not certain to get hold of it immediately. And often, the amount may not be covered entirely in the case of scholarship. 
With the disadvantages weighing down heavily than the advantages on the scale, you can readily opt for an education loan instead. Let us explore and compare scholarships vs. Education loans and see which suits best for most students’ needs.
education loans in India

Education Loans are an Ideal Solution

One of the prominent and popular options for funding is an education loan for abroad studies. Contradictory to scholarships, loans provide immediate financial support by quick processing as soon as a student approaches a lender for education loans, allowing students to focus on a clear step-by-step roadmap for studying further and pursuing a successful career. Let us look at other advantages of education loans for abroad studies:

  • Accessibility: Education loans are readily accessible, when compared to scholarships, with less stringent eligibility criteria. 
  • Flexibility: 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 with respect to transactions and other issues such as unexpected delay in paying an EMI and others. 
  • Repayment options: 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. 
While the prospect of being in debt for something that is uncertain, opting for education loans in India, when managed judiciously, can be a wise investment.

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Education Loan for Study abroad

Deep Dive into Education Loan

We have seen why education loans in India are well known among many students as the accessibility and flexibility of education loans make them a popular and simpler choice to make. However, it is good to be mindful to tackle it with utmost seriousness and financial prudence.
Education Loans

Brief of Types of Education Loans

  • PSU Backed Loans: These loans are offered by the government-led public sector units and typically have lower interest rates and more flexible repayment options. 
  • Private Lenders backed Loans: These loans are lent by private banks, credit unions, and other small scale private money lenders. Interest rates and repayment terms change invariably, hence regular supervision and careful comparison is crucial. 
  • Education Loans with Guarantor: These loans are lent to the parents of dependent undergraduate students. 

Factors to Consider When Choosing a Loan

  • For education loan for abroad studies, it is best to opt for loans with the least interest rate offered among lenders. 
  • Look for benefits from lenders who offer flexible repayment terms, including holiday periods, deferment options, and different repayment plans. 
  • For education loans for abroad studies, it is best to opt for loans with the least interest rate offered among lenders. 
Scholarships vs Education Loans

The Role of Education Loans in Financial Planning

While education loans can seem overwhelming at times, they always prove to be a valuable tool, essential to include them in your financial journey. It assists in:
  • Planning and creating a budget simple enough to include loan repayments. 
  • Within the loan amount, it is best to set aside an emergency fund to cover unexpected expenses in between the schooling process. 
  • Post opting for education loans, students are advised to invest early to build a surplus wealth for the future. 

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: 

When comparing scholarships vs. education loans, the former may be tempting, however, you can get easily disappointed after not qualifying for one, or even if qualified, the time frame to receive the scholarship can be frustrating. However, education loans can be a stepping-stone to a promising future, however with responsible borrowing. By splitting the nuances of education loan for abroad studies, like the different types of loans, carefully tapping on to different options, and being aware of debt management, you can minimize the financial burden and make best use of the benefits of your education loans.

While scholarships remain a primary option for many, reality sets in soon when students will need to rely on education loans to finance their education at their required time. Qck Loans, a leading loan provider in Bangalore, is committed to helping students achieve their bright academic goals from the best institutions abroad, without compromising their financial well-being by providing the best options in education loans.

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