Want to save on education loan repayment? Make a smart plan for to repay education loan and avoid such outflow that can be avoided.
Overseas education has become easy with education loan covering the expenses. It is a great option to sponsor your study abroad dream without exhausting your savings and investment. Upon completing your education, loan repayment seems a huge task with no guidance whatsoever.
No need to put a big chunk of your salary into repayment! If you chalk out a smart plan to repay education loans, you can actually save money and save yourself from financial burden. Creating a repayment plan will take a substantial burden off your shoulder. Repaying education loans early comes with great benefits. However, coming up with a repayment plan is complex work. There are so many factors to consider.
What are these factors, and How to strike a smart strategy to get rid of education loans smartly?
For striking an effective repayment strategy, you need to sort out two important questions-
How much do you have to pay?
When will you start repaying upon completing the degree?
If you have these two aspects answered beforehand, you can effectively repay education loan.
We have listed some smart ways to repay education loans that can save you some pennies.
Pay Extra with Each EMI
Try to pay an extra amount with your EMIs! It is easy to boost your EMIs with an additional amount every month. It won’t put some financial burden on you and also help in reducing the principal amount. You can save substantial interest by adopting this simple practice.
Work Part-Time While You Study
It’s not a bad idea to work while getting your degree. Freelance or take up a part-time job! Put aside these earnings and pay a part of your education loan with this money. You can also start paying during the moratorium period.
By automating your loan repayment, you can save yourself from the horrors of any default in payments and also get a lowered interest rate from the lender. You can pre-plan the frequency and amount of each EMI and put it on automated mode. Even if the lender lowers the interest rate slightly, it can do wonders for your savings.
Deal with Variable Rate Loan First
If you have taken more than one education loan and one of them is lent at a variable interest rate, try to pay it first. Even if the interest rate for this one is lower than a fixed interest rate education loan, it is advisable to deal with a variable rate loan first.
Consider a Balance Transfer
Do you know you can consider a balance transfer to a bank with a lower interest rate?
ForeignAdmits even offers a 0.25% lower interest rate even if you have already got your loan approved. A balance transfer is an effective way to reduce the EMI amount and interest rate.
Get Assistance From your Employer
Yes, your employer can help repay education loan faster! Some employers offer student loan assistance schemes to help the new employees repay their loans. They pay an aggregate amount as a part of the compensation package towards the repayment of your education loan. Isn’t it an amazing incentive?
Go for the Part-Payment
Save money and make a part payment of your education loan. Paying a lump-sum amount will help reduce the principal amount, and interest rates can be tackled. The faster you repay a loan, the less costly it becomes. You must understand that the interest amount is more burdensome than the principal sum. Go for the Part-payment by saving money.
There is no way that you can know about these small strategies and execute them by yourself. Expert guidance comes in handy when dealing with hefty education loans. ForeignAdmits is a one-stop solution for all your overseas needs. We offer you smart tools that can help you navigate through the loan process and stay ahead by getting real-time updates.
Budget Estimator Tool
All you have to do is fill in some basic details; we can give a fair idea of the funds you will be needing. This tool can be quite beneficial in chalking out an adequate funding mix. Education Loan repayment becomes a problem when you overestimate your funding needs and procure a loan much bigger than your actual requirement. Budget estimation can help you get a clear picture of your savings, investments, and other funding sources before you decide on the education loan amount.
Loan Finder Tool
Getting an education loan at a high-interest rate is as bad as getting an overpitched loan. The loan finder tool provides you with a list of loan lenders based on what university you have applied to and what academic credentials you have. It connects you with various lenders and allows you to have options where you can choose the lender with the most suitable interest rate.
Get Real-time Updates on your Loan application
Once you sign up at ForeignAdmits, you can track the progress of your loan processing at your ease and keep the ambiguities at bay. The transparency helps in getting acquainted with the process and makes you well aware of the terms and conditions. Getting the right loan is as important as replaying it early. We help you get the right amount from the right lender at the right interest rates for the right loan tenure.
By signing up at ForiegnAdmits, you can avail other ancillary services too. If you open a bank account in the USA through us, we get a US credit card and SIM card. Education finance is not a tedious process anymore. We not only get you accepted to your dream university, but we also make sure that you reach your dream country with the best deals on accommodation, flights, credit cards, GIC, and education loans. Contact us today to know more about our services. We are happy to cater to your post-admission needs, and that too free of cost.
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 repay education loan and other career options.