Timely education loan repayment is extremely important to keep your credit rating good and avoid extra interest costs. Meticulous planning is extremely necessary to repay the education loans faster. Students who have taken an education loan should compulsorily plan to save more every month after getting a job, so he/she collects corpus in order to pay loan faster. Education loan in India has a 5-7 years repayment period, so the installments are not that high and can be paid easily. Let’s take a look at some tips that can help you pay education loans faster.
Using the moratorium period:
The education loan repayment does not start immediately. Banks levy simple interest on student loans during the moratorium period and course of study. The amounts add up and increase the debt burden. You can pay the interest levied on the principal amount during the moratorium period. Paying interest during the course of study will lower the repayment installments after the moratorium period is over.
Get a job:
Waiting for your dream job is not always a good idea. The employment scenario changes with the economy. An economy slump causes losses of thousands of jobs and it may take long time to get a suitable opportunity. Therefore, you should judge the scenario and take up some job until you get your dream job. Having some job is better than not having one, especially when you have an education loan to repay. Take up job even if it is in sales, there are several things to learn and your experience will grow with every day you spend on a job. Besides having a job also means you will be able to pay education loan repayments on time and clear off the debt early.
If you are finding it difficult to find a good job after completing your higher education or the education loan repayment installment is high, you can consider refinancing your education loan or restructuring it by approaching the bank. Many banks will agree to refinance the loan if the employment market is downward during the repayment period.
Using the moratorium period:
The education loan repayment does not start immediately. Banks levy simple interest on student loans during the moratorium period and course of study. The amounts add up and increase the debt burden. You can pay the interest levied on the principal amount during the moratorium period. Paying interest during the course of study will lower the repayment installments after the moratorium period is over.
Get a job:
Waiting for your dream job is not always a good idea. The employment scenario changes with the economy. An economy slump causes losses of thousands of jobs and it may take long time to get a suitable opportunity. Therefore, you should judge the scenario and take up some job until you get your dream job. Having some job is better than not having one, especially when you have an education loan to repay. Take up job even if it is in sales, there are several things to learn and your experience will grow with every day you spend on a job. Besides having a job also means you will be able to pay education loan repayments on time and clear off the debt early.
If you are finding it difficult to find a good job after completing your higher education or the education loan repayment installment is high, you can consider refinancing your education loan or restructuring it by approaching the bank. Many banks will agree to refinance the loan if the employment market is downward during the repayment period.
