Top 5 Reasons Why Student Loans Are Essential For Your Education and Career

Top 5 Reasons Why Student Loans Are Essential For Your Education and Career

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Loan for Education and Career

Education is widely recognized as a critical tool for achieving success in today’s world. It provides individuals with the knowledge, skills, and credentials necessary to increase one’s chances of being accepted into prestigious universities and secures employment with reputable companies. 

However, the high cost of education can be a significant barrier for many students, making it difficult for them to pursue their academic dreams. According to a report by the National Sample Survey Office (NSSO), the average cost of general education in private institutions increased by 175% while the same for technical and professional education rose by 96% between 2008 and 2014. These expenses include course fees, books, transportation and coaching, among other things. 

Student loans can help alleviate this financial burden. These loans are designed specifically to assist students in paying for their college and overall education. They are typically offered by banks, non banking financial companies and other financial institutions. They can be used to cover the cost of tuition, books, housing, and other education-related expenses.

In order to qualify for a student loan, the student and co borrower, such as a parent or guardian, must typically demonstrate financial need and have a good credit history. Your co borrower will be responsible for repaying the loan.

Despite the high cost of education, it should not deter individuals from pursuing their academic dreams. Student loans can be a valuable tool for making this dream a reality. With proper research, planning, and budgeting, it is possible to secure a student loan and achieve a successful future.

Things to remember while selecting a Student Loan:

  • Your academic record plays a key role in determining the interest rate offered on your loan, so strive to maintain a strong record.
  • Be prepared with all necessary documents, such as proof of residence and your admission letter from the institution, as these will be required for loan approval.
  • Take into account the turnaround time for loan approval, as this can vary among lenders. Plan ahead and allow for at least two months for loan disbursement.
  • Research and compare loan options from different lenders. Consider the cost, interest rate, and repayment terms before making a decision.
  • Remember that timely repayment of your loan is crucial in order to maintain good credit and secure loans in the future.

Also Read: Student Education Loan in India: Pros and Cons

Reasons why Student Loans are essential for your education and career

A student loan not only helps you pay for your higher education, but it also has a number of other advantages. Here are some reasons why student loans are essential for your education and career:

1. Affordability

One of the primary reasons for the importance of student loans is that they make higher education more affordable. The cost of attending college or university has risen dramatically in recent years, and without student loans, many students like you wouldn’t be able to afford the cost of tuition and other expenses.

2. Expense Covered

Student loan not only covers the cost of the course but also pays nearly the entire cost of education. It will cover the following expenses:

  • Tuition fees and hostel expenses
  • Exam, library, and lab fees if applicable
  • Any refundable fees paid to the institute
  • Cost of uniforms, books and other essentials
  • Travel expenses

3. Opportunities

Another important reason why student loans are essential is that they provide you with access to higher-paying and more rewarding career opportunities. A college or university degree is often a prerequisite for many jobs, and without the ability to obtain a loan, many students like you would be unable to pursue these opportunities.

4. Investing in Yourself

A student loan is an investment in yourself, your education and your future career, rather than a consumable expense. It allows you to acquire the knowledge and skills necessary to pursue a successful and fulfilling career, which in turn can lead to greater earning potential.

5. Best Interest Rates

Education loan interest rates are a crucial factor to consider when making the decision to take out a loan. Student loans typically offer competitive interest rates, particularly when obtained through public sector banks in India. This makes repayment of the loan more manageable and helps keep the overall cost of the loan low.

6. Bonus

Repaying student loans on time can help you build a good credit history, which can be beneficial when you need to take out a loan in the future for buying a car, house, or starting a business. It also can open you more opportunities in rental, credit card and employment applications

Eligibility Criteria

Every bank or NBFC has its own set of eligibility criteria for student loans, but here are a few that are common-

  • The applicant must be of Indian origin.
  • The applicant must have the documents confirming admission with them at the time of application.
  • The applicant should be between the ages of 16 and 35.

What are the documentation requirements for an education loan?

  • Two passport size photograph
  • Age proof
  • Identity proof
  • Residence proof
  • Bank account statement for past 6 months
  • Papers pertaining to the applicant’s eligibility for any scholarships, as well as an admission confirmation letter
  • Expense for the course
  • Mark sheet of test
  • Foreign exchange permit copy

In conclusion, student loans play a vital role in making higher education accessible to students from all backgrounds and income levels, and in providing aspirants like you with the necessary tools to pursue rewarding career opportunities. It is an investment that is well worth the cost in the long run, as it provides many benefits that will help you in both your education and career. If you’re considering taking out a student loan, Varthana is certainly the right choice!  

Varthana loans cover the cost of studies and other expenses. However, before you even get approval for the amount, try and ensure that you have at least a rough plan and strategy in place for repaying your loan. Apply now to get access to Varthana education loan benefits.

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