Why Choosing an Education Loan is Better Than Your Liquidating Savings

Quality education is often made possible by the unconditional support of parents. They willingly exhaust all their life savings to provide their children with the best opportunities. Whether we see it as a fundamental responsibility or selflessness, there is a smarter approach. Instead of utilising savings, why not preserve them and finance education through an education loan? There are several reasons why you should choose a student loan over liquidating your savings.

An Education Loan Comes with the Self-Made Badge

A student loan is an incredible way to earn a self-made badge. Many choose this type of loan to study abroad as it covers all education-related costs, including tuition fees, equipment expenses, airfare for students, and more. This makes the entire academic journey stress-free, not just for you but for your parents as well. This way, your parents can keep their savings and investments intact for the future, allowing you to focus on your studies.

Additionally, the current generation prefers to finance their education instead of depending on their parents. Being self-reliant is one of the important goals in every student’s life. Moreover, once you complete your studies, you will need a strong credit history to buy a car, obtain a home loan, or get a credit card. An education loan allows you to build a healthy credit score early in your life.

Mistakes to Avoid While Taking an Education Loan

• Paying Attention Only to Interest Rate: Thorough research on interest rates is paramount. However, most students make a significant mistake by shortlisting education loan providers based solely on the interest rate. You should consider other important factors, such as the time required for approval and EMIs.

• Overlooking the Terms and Conditions: Most reputable providers will not charge hidden costs and are transparent about the entire process. However, it is still advisable to read the fine print to ensure that no additional expenses or fees, other than those mentioned to you, are included in the document.

Studying abroad can be expensive, so conduct thorough research on how to utilise your parents' hard-earned money. Additionally, it is vital to contemplate every aspect before applying for an education loan; use online tools like an education loan EMI calculator to understand the financial commitment you are making.