You have secured admission into the engineering college of your dreams but are finding it difficult to fund your education. So what do you do? Opt for a higher education loan, of course. With higher education becoming costlier each passing year, parents and students are increasingly resorting to education loans for MS and B schools. While these loans have helped students, particularly those from economically weaker sections of the society, to pursue their higher education dreams, many believe that they often result in undue hassles and headache for the borrower. So are education loans a boon or a bane? Let’s find out by looking into the pros and cons.
Advantages
- Finances your higher education goals
You no longer have to defer or sacrifice your dream of pursuing an engineering degree due to lack of funds. Education loans cover your tuition fee and related expenses, giving you the freedom to focus on your study without having to worry about money. The best part is that compared to other loans, they offer better payment terms. Students can easily pay back the loan once they get a job.
- Easily available
As engineering is one of the most sought-after courses in India and abroad, availing an education loan from banks and other financial institutions is easy. The terms and conditions are flexible and the process is much simpler than conventional loans. In fact, students can even apply for an education loan online.
- Gives tax benefits
Education loans come with tax sops. The interest paid on such loans can be claimed as deduction under Section 80E of the Income Tax Act, 1961. It’s a good way to save money and put it to some other use.
Disadvantages
- Lack of clarity
While financial institutions are prompt at disbursing education loans, not all of them are quick in answering queries and quelling doubts that the student might have. Many students get trapped into accepting unsuitable education loans due to lack of support from the lender to help them understand the loan process and terms and conditions.
- Inadequate repayment assistance
If the student is unable to repay the loan in time, it usually leads to a lot of hassles. Some financial institutions may not inform the candidate about late payment charges, which combined with the interest, increases the overall cost of the loan. Sometimes loans may go into default as a result of a single missed payment. In cases like these, the borrower requires proper repayment assistance which unfortunately many banks and other financial institutions fail to provide.
However, despite these problems, we cannot deny that education loans have helped students fulfill their higher education goals. The trick is to find a financial institution that offers sensitive solutions catering to the specific needs of the student and provides complete assistance in every step of the process – from application to repayment.
In case you are looking for such a financial partner to fund your engineering dreams, apply for a student loan online by logging on to Nitstone. We provide education loans online with 100% coverage of the education cost and offer a wide array of benefits to help you in your pursuit of quality education without any hassle.
