The USA has always been the topmost destination for students from all over the world to pursue their higher studies from. As one of the most highly developed countries in the world, the USA has a higher standard of living that many aspire for, vast job opportunities that could help build a better future, and prestigious universities and educational institutions that provide world-class education.
If you plan on pursuing your further studies, and you want to do it from the USA, then it would be a wise decision to apply for an education loan for USA institutes. We have listed a few benefits of why you should apply for an education loan to help you understand better:
- Personal savings remain safe
Going abroad for higher studies costs a lot especially when the cost of education has increased substantially over the last few years. If you apply to a university in the USA without the help of an education loan, then you would require a huge amount of savings to help you bear all of the necessary costs that are involved in it. This could be a disadvantage if you do not have substantial savings to cover those costs. However, when you go for a study abroad loan, then you will not have to spend your entire savings. This is beneficial especially during the time of family emergencies.
- Your expenses get covered
There are many expenses that have to be borne by you when you go to the USA for further education. These expenses include travel cost, cost of accommodation, cost of study material, exam fees, tuition fees, and so on. When you apply for an education loan for USA institutes, then the loan amount that you get can be used to cover all of the expenses involved. The amount also comes in handy during an emergency.
- It creates a good credit score for you
One of the criteria of student loan eligibility is the ability of repaying the loan amount. When you apply for an education loan, the creditor will accept your application only after verifying your financial status. If you repay your loan with timely installments, then it would help in creating a good credit score for you. This is especially beneficial if you want to apply for a different kind of loan in the future. A good credit would mean quick sanction of your loan application.
- You can avail tax benefits on the loan
The interest that is levied on your education loan for USA universities does not get taxed as total income under Section 80E of the Income Tax Act. This could prove as a huge relief for you as you will not have to pay extra tax for your loan amount, which means you would be saving money on it.
These are some of the benefits that you can enjoy when you apply for a study abroad loan for your higher studies in the USA. We hope that this article helps you in understanding how helpful an education loan can be.
In recent years, students have been understanding the importance of education loans, and how they benefit them, especially when they are planning their higher studies.
For students who plan to go abroad, an education loan is a boon that covers major expenses that they will incur in the duration of their course.However, if you are to apply for study loans at a financial institution like bank, then you will be required to provide collateral.
The alternative is a collateral-free loan, i.e., an unsecured loan.
Keep in mind that the ROI that you will be charged will vary from one NBFC to another.
So, select the one as per your needs.Easy repayment optionsThe main worry for many students when they borrow education loan is the repayment of the loan.
You get a greater moratorium period when you go for unsecured loans compared to a shorter moratorium period when applying for secured loans.
Education Loan For Study In India Our higher education loans provide an easy and flexible option to avail quality education from your preferred institute.
Student Loan Eligibility - Auxilo's eligibility calculator helps you to calculate the loan amount you are eligible before you apply for a loan.
