Though education is something we keep gaining all through life, it is something that we need to make a conscious effort towards. Education is indispensable. A quotation once read, “It is education that distinguishes man from animal.” Education certainly widens your career horizons to extents you may have never thought possible. But besides that, it makes you an individual person and gives you your identity. This is not an overstated statement but a verified fact. Though many of us seem quite complacent with a school degree, it is specific higher education that can get you the best career options tomorrow. The call of today is that of specialization. Specific education has therefore become a must, assuring us of higher salaries and respected reputations.

Going in for higher education is more of a privilege today, considering the rising number of dropouts every year. This privilege that seemed miles away, has now become a possibility, thanks to Education Loans. Basic and higher education is a necessity and not a choice for the simple reason being - well paying organisations want well qualified employees. And though most of us desire such education, not all of us can afford it. Since most students today, prefer being independent, paying for higher education all by themselves, can sometimes become an impossible task. It is for situations like these that Education Loans cater to. But by no means allow a shortage of finances to deter you from chasing your dreams.

Education Loans are of various types:

These loans are different, depending on the party repaying the loan.

• According to the sponsor, they can be Federal or Private.

• According to the beneficiary, they can be undergraduate loans, payment loans, parent loans, insurance loans, etc.

• According to the course, law school, medical school, dental school, MBA, general graduate, or post graduate.

• Career Loans – for those pursuing education, while being employed part time or full time.

Let us get a little more familiar with Federal Education Loans and Private Education Loans that make up the majority in the market.

Federal Education Loans:

Federal Loans are what most students, today, apply for because these loans have lower interest rates. They are again of 2 types: The Federal Family Education Loan Programme and the Federal Direct Loan Programme. In the Federal Family Education Loan Programme, the lending party is none other than the bank, the school or any credit union, whereas for the Federal Direct Loan Programme, the Department of Education lends you the money. This is a very simple and convenient method of approach. These federal authorities are exclusively for students and therefore the terms and conditions, availability and approval is much simpler and time saving. However, these Education Loans mainly fund graduate and post graduate programmes, i.e. usually higher education.

Private Education Loans: Bankruptcy

With these loans, you – the student (or any guardian on your behalf) can provide financial back up to their education plans. These private lending parties are in no way connected or backed by the government or any other financial institution. Private Education Loan Programmes cater to graduate and undergraduate courses of education. While studying, besides basic tuition fees, there are several other expenses to see to. These include living expenses, books and other study material, boarding and lodging and even travelling expenses. Education Loans do cater to most of these additional but necessary costs. But do remember that you have to make your lender aware that you want your Education Loan to cover all these aspects. The Education Loan amount that is granted depends on your monthly income, monthly household expenses, the course and the place of residence during the course. Requirements: social security number, date of birth, employer’s name, phone number, years of employment, gross annual income

Repayment of Education Loans is expected to commence once you complete that particular course/ programme. Sometimes, repayment is further suspended in case the student has finished his final degree and has not yet gained employment. Here, repayment begins once he gets employed. Get yourself and Education Loan and chase your dreams, without turning back.