The Education Loan Digest

Welcome to The Education Loan Digest! This season takes you on a comprehensive journey through the realm of education loans. We’ll explore every aspect of funding your education, from choosing between secured and unsecured loans to understanding eligibility criteria.

Join us as we unravel how to improve your chances of approval, leverage tax benefits, and navigate the impact of your credit score. Get clarity on crucial concepts like moratorium periods, repayment plans, and the possibility of obtaining loans without a guarantor.

This season will also shed light on essential factors like education loan waivers, the risks of common mistakes, and myths that could mislead you. Gain practical strategies that could help you manage your education loans and make informed decisions about your academic future. Gear up for a deep dive into the world of education loans!

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Episodes

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E01: Navigating Education Loans All You Need to Know
03 mins
Pursuing higher education could come with rising costs, but there might be ways to make them more manageable. In this video, we’ll explore how education loans could support your academic dreams by covering expenses like tuition fees, books, accommodation, and even travel. We’ll look into the different types of education loans available for domestic and international studies. From undergraduate courses to advanced degrees at top universities like IITs, IIMs, Harvard, Oxford, etc. there are various loan options that might help you. We’ll discover how domestic education loans could help fund studies in India, with options for secured or unsecured loans based on your eligibility. You’ll also learn about international education loans, designed to cover a broader range of costs like housing, health insurance, and so on. We’ll find out how government schemes might offer subsidies for students from economically weaker sections. Whether you plan to pursue professional courses, short-term certifications, or distance learning programs, education loans could offer the financial support you need. With a better grasp of education loans, you might be able to step closer to fulfilling your academic aspirations.
Frequently Asked Questions
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You might be able to get an unsecured education loan. However, since these loans do not require a collateral, they may have stricter eligibility criteria. Lenders might often assess factors like your academic record, the course you’re pursuing, and the reputation of your chosen institution. These parameters might vary from lender to lender.
You might be eligible to claim tax benefits on the interest that you pay for your education loan. As per Section 80E of the Income Tax Act, the interest amount is deductible. This might help reduce your taxable income. This benefit is available for a maximum of 8 years and does not have a maximum capping.
During the moratorium period, you aren’t required to make repayments. This period usually extends until you finish your course, plus an additional buffer of 6–12 months. Interest might still accrue on your principal amount. This could increase the total repayment amount after the moratorium ends.
You could transfer your education loan to a different lender through a loan balance transfer. This might allow you to benefit from better interest rates or repayment terms. However, you might need to be aware of any processing fees or penalties that apply, to switch lenders.
Missing repayments could impact your credit score and attract penalties. Lenders might initiate recovery processes or report defaults to credit bureaus. If you’re facing repayment issues, you could consider talking to the lender to negotiate a restructuring or deferment plan.
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