Who doesn’t like the idea of studying overseas? Many do, and as for me, I was always wishing and praying to go abroad for my higher studies, only, it was quite expensive for my parents to sponsor that kind of education.
Thank heavens, I had the student loans to help me navigate the situation without much hassle.
My parents and I have always been middle-class concerning our finances, but we’d a broader perspective of life. They believed that money shouldn’t be the hindering factor for my dreams, which made them send me to the University of Michigan for studying business with a student education loan.
I used to freak out on hearing the word ‘loan’, just like any other little-informed people. Never did I assume that this student loan will act as the pillar to fulfilling my dreams later in my life.
I was pretty apprehensive about my father taking the loan, and he had to convince me that I wouldn’t have to keep our house on the mortgage to pay it back.
That was 2012, but now, things have changed drastically!
Students take loans more frequently than ever for studying abroad. There are numerous ways to get those loans approved, and you need not belong to a banker’s family as I did.
Coming to the benefits that I enjoyed, because my father took that wise decision in time, I want to let you know why it is best to opt for a student education loan to study in an overseas university.
The maximum amount of educational loan that a student can get in India is 1.25 crores, and sometimes more if certain conditions are fulfilled. The big amount will be able to cover all your expenses, while you’re in a foreign country.
The tenure of the loan may extend to a period of 25 years, depending on the amount and some other factors. Hence, you won’t feel any pressure to pay back the amount as soon as you complete your studies.
If you take a loan to study aboard, you’ll feel responsible for it and work harder to be able to pay it back. That’ll keep you from distractions, as you’ll be busy focusing on your goals and achieving those.
As for me, I felt quite grateful to my parents for taking a loan, when I started feeling the changes in me, because of the same. Not only did I become more responsible and independent but also quite aware of the way the world works.
My parents have catered to my needs and requirements since the day I was born. Getting a loan for my higher education abroad prevented them from exhausting their entire life’s savings on my education. It felt really good being able to ease the burden on their shoulders.
The entire interest that you pay on the educational loan can be claimed under Section 80E of the Income Tax Act. However, it is valid only for higher educational loans, which have been taken from a financial institution recognized by the Central Government.
This is a short period that follows your course completion when the financial institution gives you some time to begin your career and enjoy a wok life.
You don’t have to start paying the loan immediately during the moratorium period, which can vary between 6 months after getting employed or 12 months after completing your studies.
You can get student international loans from several banks and other financial institutions these days. Make sure you opt for a reliable one to enjoy maximum benefits.