Is there a way to pay off an education loan faster? The question of how to repay education loan faster must have crossed your mind if you have taken an education loan or are planning to take one. Education loans are a great way to finance your study abroad venture.
Without draining your savings, you can successfully pursue your desired course at your dream university with the help of an education loan. After completing their study, most students get lucrative job offers and the rest work on establishing their careers. Amid all this, one significant question keeps nudging their mind, and that is-
For how long I’d be paying the student loan?
The question “how to repay education loan faster?” seems genuine, given you don’t want to keep using a significant part of your salary towards paying EMIs. If not planned smartly, paying off an overseas education loan can be a toll-taking process. Certain ways can help you repay your education loan in less time. Read on to know how.
Make a well-informed decision about education loan
Before you know how to repay education loan faster or how to take a loan, you should do your research first and get complete clarity on the repayment schedule. Enquire about all the additional charges apart from the principal amount and interest rate so that you don’t have to bear the extra cost. Most financial institutions give a moratorium period where you don’t have to pay the EMIs. You can utilize this period and plan your repayment schedule effectively.
Start Early
If you start repaying the education loan during the moratorium period, you can get a significant concession in the interest rate. Some financial institutions offer relaxation in interest rates if you start repaying early. No matter how small the concession rate is, it makes a big difference while repaying hefty education loans.
Generate Income
Part-time work is not a bad idea while studying. It takes off some of the financial burdens and can be a great way to save for part-payment of your loan. After making the part payment of your loan, you can choose not to alter your EMI. By keeping the same EMI amount for a reduced loan, you will repay it fast.
Request Refinancing
It is possible to transfer the loan to a bank with low-interest rates. Besides, you can also request your bank to lower the interest rates. Once you have secured employment after completing the study, your bank might agree to reduce the interest rate because of the reduced risk.
Make Good Use of Windfalls
Bonus, tax refund, or pay raise; use the windfalls for paying a chunk of your education loan. You can pay more than your EMI every month if you utilize the unexpected gains wisely. Small portions do make a big difference.
These little smart practices can help you repay your education loan ahead of your schedule. Apart from that, there are smart tools that can help you calculate your EMI and estimate your budget.
ForeignAdmits offer a budget estimator that provides you with a fair estimate of funds you will need to study abroad. It can help you get the right amount of education loan in the first place and save you from overpitching your financial needs.
Do you know ForeignAdmits can help you get a 0.25% lower interest rate than your approved education loan?
Yes, that’s right!
If you want to know how to repay education loan faster, let us help you plan your finances and provide the best guidance for procuring an education loan. Our EMI calculator tool can help you schedule your repayment plan and make a smart outline of the whole process. Sign up with ForeignAdmits to know more about education loans and our other ancillary services.
At ForeignAdmits, we understand how important this decision is. We are here to help you every step of the way, from finding the right school to getting admitted and securing scholarships.
ForeignAdmits have a team of experienced counselors who can provide you with customized guidance based on your individual needscontact us today to get started. We look forward to helping you achieve your educational and career goals!