In earlier times, only the people who had the means to fund their higher education costs were the ones who studied further. But when education loans came into the picture, more students started pursuing their dreams as well. Today, students have various lenders to choose from to finance their higher education. When students take education loans with a high-interest rate charged on them, they have to part with a huge amount of money while repaying those loans. But they can save themselves from paying too much money if they try their best to get lower education loan interest rates. To help students out, we have come up with a blog to show how they can land the best interest rates on their loans.
- Compare different lenders
Lenders differ from each other on the basis of the type of services they provide and the quality of those services. To find the most suitable lender for yourself, read reviews about various lenders. Learn the praises or complaints people have for their lenders. Compare the lenders based on the maximum education loan amount they usually approve, the interest rate they usually set, and the moratorium period they offer. This way, you can find the most affordable lender with the best features. After all, the ideal education loan is one that has an affordable rate of interest and good services given by the lender.
- Negotiate with your lender
Once you have shortlisted a few lenders, talk with each one of them and try to negotiate the loan interest rate that they are charging you. Do also bear in mind that students who calculate the potential costs of their higher education thoroughly, are in a better position to negotiate their education loan interest rates. So, know the course tuition fees of the degree you want to pursue, the costs of sustaining a comfortable lifestyle in a foreign city if you need to relocate there for your higher education, the cost of getting books, stationery and a laptop. With this knowledge, you can try to negotiate a good interest rate if the lender is willing.
- Opt for a secured loan
A secured loan or collateral-based loan is the one in which a student pledges their family assets as security against the education loan amount they take. This helps them get lower education loan interest rates.
When a student takes a secured education loan, the risk of the education loan not being recovered is lesser than if the same student does not secure their assets. So the lender cuts some slack for that student and offers lower interest rate on their education loan.
In other words, opting for a secured loan helps a student score a lower interest rate on their education loan.
Now you know the 3 tips to get lower education loan interest rates. Do not let money constraints hamper your higher education aspirations. Please consult a financial advisor to calculate the total cost of your higher education accurately. Have a nice day!
Educational Loan Interest Calculator - Find out about the the interest on education loan.
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