Almost every student wants to study at a reputed college, get a good job and become successful. Unfortunately, good colleges are almost always expensive. The fees of these colleges are incredibly high, and it is tough to get admissions into them. While the admission process is up to the student, the tuition should not be an obstacle in their career. It is why a lot of students take loans using a loan app.
A loan for students is an effective way to pay your way through college and get a great job to kick start your career. Paying for college is not easy, but it is one of the best ways a student, a young adult can learn to take the responsibilities of an adult.
Here are some reasons should consider taking a student loan:
- Interest rates
Student loans have a much lower interest rate compared to personal loans. While these rates are lower, they are designed to take into consideration the additional living expenses and other payments that students need to make when they are abroad or otherwise away from their homes. With the fees of the colleges only going higher, the students get burdened with not only their semester fees but also the daily expenses. To help them and give them a little peace of mind regarding their college tuition fees, banks generally provide student loans with much lower interest rates.
- Responsibility and Ownership
Taking a loan gives students the reality check they probably need. While taking a loan from a loan app may be easy and convenient, paying back the loans is not so. It takes time and effort to pay back a loan and teach the new adult responsibilities that are a part of being an adult. It also gives them ownership of their money and finances. They realize that they now have to make money and spend it by themselves and that they can no longer rely on their parents for financial support.
- No credit history
Students are not required to have an ideal credit history to avail of a loan. They do not need to have a good credit score or payment history, or a debt history that needs to be paid. Most students have a blank credit history, which is why it could be difficult for them to secure a loan and at a much lower rate of interest. Therefore, student loans are a great tool for the ones that cannot afford to pay their way through an expensive college. With a loan EMI calculator they can calculate the time it will take for them to clear their loans and they can customize their payments according to their convenience.
- Repayment after graduation
Most organizations providing student loans allow them to start their repayment 6-12 months after graduation or when they get a job, depending on which one occurs first. You pay your loans through EMIs as and when you land yourself a job. The monthly EMI that you have to pay can be customized so that you can pay your living expenses and repay your loan simultaneously, without any hassle.