Never depend totally on student education loans

Your college might have an ulterior motive for recommending certain lenders. Some let private lenders use their name. This can be frequently not be within your cheapest price. The institution could be getting payment when you agree to select a particular lenders. Make sure you understand all the subtleties of a particular loan just before accepting it.

Education loans

Education loans 

 in order to buy your schooling. Keep your money up upfront and appear into scholarships you could possibly be eligible for. There are a number of proper scholarship sites to take advantage of. Start searching straight away to get the entire process going by leaving yourself enough time to prepare.

Stay in contact with the lender providing your lender. This is very important as you will want to know all the information about your loan including what is stipulated from your repayment plan. Your lender can provide some valuable repayments tips to repay your loan more effectively.

Be sure to be aware of information of your repayment options.If you anticipate financial constraints immediately following graduation, you really should join to get graduated payments. In this way your starting payments aren't huge and definately will gradually increase as the earning potential rises.

Tend not to stress an excessive amount of when you notice the total amount owed in your education loan balance seems insurmountable. It may be an enormous number, but you will be able to whittle away at it.

Be sure to pay strict attention to the payback's terms. You need to know your loan details and what your lender expects. You must determine what to do about this stuff before signing anything around the dotted line.

Take online classes to offset the most from education loans.It is possible to work these inside your regular courses and whatever else you are carrying out. This gets the most credit hours per semester.

Take AP classes during senior high school to maintain the cost of college down. Every AP class tests your degree of knowledge about them with a college level. A very high enough score means you are given college credit for your class.

Never take the very first loan offer you get. Look to get the best rates and terms before you make your final decision.

Alternative loans (aka private student loans) should simply be a last option. These loans usually have fluctuating interest rates that can induce a rise for your monthly premium. They might also not offer a few of the protective programs on the market as well as options to cover special circumstances which get you federal loans in case you are available from Federal loan programs.

Tuition.io can be quite a real help in dealing with your debt. This will help organize your debt organized. It will also help you stay along with loans and sustain good order. Furthermore, it lets you whenever your loans change.

You now should know the education loans process better. Keep these details in mind while completing forms for your school loans. Buy your education in spite of the high costs.

Source: https://educationloansinindia.wordpress.com/2016/05/30/never-depend-totally-on-student-education-loans/

Scholarships with Spring Deadlines Can Grow College Cash

Keeping track of scholarship deadlines can be tricky because each month there is a new set of dates to watch out for. But staying organized can ensure that you're doing everything possible each season to get money to make paying for college easier.

Education loans

Education loans

This spring, check out these valuable scholarships with deadlines in March, April, May and June as you celebrate the melting snow and prepare for summer. This is just a sample of what's out there. Do your research, make your scholarship lists and apply to as many awards that you are eligible for as you can.

March

In March, students who are members or are the children of members of a Service Employees International Union local union have their last chance to apply to one of the five different scholarships offered through the SEIU scholarship program. The award amounts range from $1,000 to $5,000, with some renewable scholarships; this year's application deadline is March 3.​

Undergraduate or graduate-level Muslim students or those who are active members of the Muslim community​ have until March 21 to apply for the Islamic Scholarship Fund's award. This scholarship awarded between $2,000 and $5,000 last year with the goal of awarding 40 to 50 scholarships to qualifying students. Students will only be considered if entering a foundation-approved area of study.

April

On April 1, the application for the American Legion Legacy Scholarship closes. This scholarship – for the children of ​U.S. service members who have died ​in post-9/11 service – was established to help bridge the gap between the cost of college and any available federal and state aid. The award amount varies from year to year and is renewable.

In addition, every year on April 15, the application period for the Brown and Caldwell Minority Scholarship comes to an end. This $5,000 scholarship is for full-time college juniors and seniors and graduate school students at an accredited university who are also minority students. Education loans must have declared a major in civil, chemical or environmental engineering or one of the environmental sciences.

May

The Sara Scholarship was developed for female high school seniors planning to pursue a college degree and who are actively engaged with the sport of golf. This doesn't necessarily mean that applicants must be good golf players.

This scholarship awards $2,000 and is renewable up to four years – for a total of $8,000 – and this year's applications are due on May 2.

June

By the time June comes around, it's almost summer. It's also time to make sure your application to the Pedro Zamora Young Leaders Scholarship is complete because the application deadline has historically been around ​June 15. To be eligible, you should be a high school senior or college freshman, sophomore or junior ages 27​ or younger and have demonstrated a commitment to fighting AIDS through leadership and public service. This scholarship usually awards between $2,500 and $5,000.

Also in June: The Bruce Lee Foundation Scholarship application period closes on June 10. The scholarship is for students ages 16 or older who exemplify Bruce Lee's passions and are familiar with Lee and his

insights. In the past, the award has been $1,000 per winner, and the scholarship has awarded about​ $30,000 to date.​

Source: https://educationloansinindia.wordpress.com/2016/05/28/scholarships-with-spring-deadlines-can-grow-college-cash-2/

The Student Loan Bubble

Students are offered college tuition loans guaranteed by the Federal government. Some students have anywhere from 150k to 300K in loans.  If the student pays it off in 10 years, that’s about $1,820 to $3,640 a month for 10 years.  When they graduate, they will need an 80 to 100K beginning wage job. If they can’t find one, there will be 12 to 24k of interest accrual each year that payments aren’t made. This interest turns into principle when added to the loan, so a 150k amortized over 7 years at 8 percent with no payments made turns into $257,000.  And if we calculate the same for 300K, you get a new loan amount of $514,000.  If you are unable to find a job, just the monthly maintenance to keep the loan amount from increasing is $960 a month on the 150K loan—double that for the $300K loan.

Educational loan

Educational loan 

Now picture how the economics work for an institution of higher learning.  They need students that can afford a 2 to 4 year degree.  They are not promising jobs, they are promising an education to get you a better job (this is the most important sentence, and nobody really comprehends it-- a college degree does not mean more pay, it implies it).  With a lot of two year schools, the education received wouldn’t buy a cup of coffee, but the dollars the student spent are real.  The school needs students, and a lot of ”would be students” don’t have the dollars to attend.  Here is where the school will offer services, free of charge, to help you finance your education with them.

Don’t be surprised to read about the divorced mother of two who signs up for the 2 year dental technician course for $12,000,  graduates only to find out she can’t get a job with her new training. She still has the 2 kids and now in addition, 12K in school debts.  If she’s flipping hamburgers, her hours will probably be cut because of Obamacare, and her wages will be garnished to pay off the student loan. FYI,  that trade school is still turning out dental technicians by the 100's ---financing is in place for your future degree.

Our youth has been told  that  a college education guarantees a better paying job.  Students with large student loans will have to look at the bottom line before they accept a job—it might not pay all the bills.  There is always the chance your girlfriend will have just as much debt as you do. 20 years ago, the consensus was  a person with a college degree would earn a half million more than the guy without one  (I sure hope that amount has increased somewhat).

The choice for a graduating senior in High School is obvious; flip hamburgers, or get that college loan and go to college. The real irony, is that you get the loan, and the education, and then you learn how to flip hamburgers for the rest of your life.  Not every college degree is in demand. Plus you might not want to work in Butte Montana or in Detroit Michigan.

The student debt bubble could be deflated if Congress would allow students to file for bankruptcy on the ridiculous amounts loaned to them.  It’s a noble gesture to offer everyone the money to pursue a college education. It’s insanity to think that most will have the opportunity let alone the desire to pay it back.   The underwriters of these loans are turning our kids into indentured servants. If you can’t afford something you do without---what if the government offered guaranteed loans on lottery ticket purchases?  I'd love to have sold the guy that thought up the student loan program a toll bridge or two.

We saw how free money caused a real estate bubble.  When that bubble collapsed, bankruptcy was a way out of a bad mistake.  Right now, the student loan bubble is fueling the economy ---1 trillion dollars’ worth of consumption so far and Congress is still pumping air into it. Can we count on these college grads to be consumers when they graduate?  Will they be too busy paying back their loans or fighting to keep their wages from being  garnished? 

Everyone at the age of 20 has dreams of success and wealth. The rest of the world will play on those dreams, they are a vulnerability. Two kids a wife and a house payment are a reality,  and there isn’t much room for a large educational loan.  The more bills you have, the less you sleep at night. A college education could become your worst nightmare.  We can be very sincere when we say;  “The road to hell is paved with good intensions.”   Another 10 years of these super fantastic student loans, and one will  need a Master's Degree to get a job cleaning toilets or a PhD to flip hamburgers.

As a post script, you can always move to Australia and forget about the debt. Being broke and having a new start will work miracles on your state of mind and you'll sleep a lot better. Now might be the time to invest in surfing posters about Australia and New Zealand for the dorm room.  However, it wouldn't surprise me to see them distributed free of charge, with a visa application for the Down Under, printed on the back side. No "go figure" on this one, we saw it coming and did nothing.

Source: https://educationloansinindia.wordpress.com/2016/05/27/the-student-loan-bubble/

Education Loan for Engineering Students in India

Overview:

Education loan offers the much required financial assistance to deserving students who have secured an admission for pursuing technical education or higher professional studies in India or abroad. Finances should never be a hurdle to any deserving student when it comes to continuing education. Right monetary support at the required time ensures success. Education loans are generally offered to individuals who have secured admission to courses like engineering, management and medicine at either graduate or postgraduate level.

Education Loan in India

Education Loan in India 

In India, engineering has always been a popular stream of study. It comes as no surprise that India has some of the best engineering colleges in the world - both private and Government owned. One sixth of Indian students generally enrol in engineering and technology related courses. With more than 700 multi - disciplined Universities and over 35,000 affiliated colleges with over 20 million students, Indian higher education is a very large system. Most of the Indian Banks offer education loans for engineering students at affordable interest rates.

Features of Education Loan for Engineering Students in India:

Here are some of the advantages of availing an education loan to pursue engineering courses in India.

Since engineering is one of the highly preferred courses in India, availing education loan for engineering courses like B.E, B.Tech and M.E is relatively easier.

Indian nationals aged between 16 years to 35 years can avail an education loan from any lender for pursuing graduate and post - graduate courses in engineering.

The applicant must have a confirmed admission in a university or a college recognized by UGC, Government, AICTE or such board.

The education loan will cover costs of exam fees, library fees, admission costs, tuition charges, accommodation charges and other reasonable expenses required to complete the course.

Education loan repayment will start only after the course is complete. The entire loan amount, in any case, has to be repaid before the tenure which is usually anywhere between 5 years to 7 years.

Generally, the interest rate would be minimum if the amount is lesser than Rs. 4 lakhs. However, interest rates vary with bank and are subject to frequent change.

For girl students who have secured an admission to a recognized engineering college, many banks offer concession in interest rate.

Most of the banks do not demand security for education loan amount up to Rs. 4 lakhs. Documents of assets like gold and house can be pledged as security for home loan.

Education Loan for Engineering Courses – Eligibility:

An applicant must satisfy the following eligibility conditions if he wishes to apply an education loan for an engineering course in India.

The applicant must be in the age bracket of 16 to 35 year and should be an Indian resident.

The applicant must have secured admission to a graduate or postgraduate engineering course in college or universities recognized by the UGC, Government, AICTE and other such institutions.

A collateral security might be insisted based on the loan amount.

The applicant must apply for an education loan with a co-applicant. The co-applicant can be parent, guardian or spouse in case the applicant is married.

Education Loan for Engineering Courses - Documents required:

The applicant will be required to submit the following documents while applying for an education loan to fund the engineering education,

Admission Letter

Detailed cost break-up of the engineering program

Duly filled application form with photographs

KYC documents

Guarantor’s bank account statement for the last 6 months

Guarantor’s IT Return for the last 6 months

Statement of assets and liabilities to be presented by the co-borrower

Proof of income from parent or other co-borrower

PAN card and Aadhaar card

Academic documents like mark sheets and pass certificates

Education Loan for Engineering Students in Bangalore:

If a student has secured admission to a recognized engineering course in a college or a university in Bangalore, most of the national and private banks in India will be ready to fund the cost of education including hostel charges, admission costs and other associated costs. For students willing to pursue

B.Tech/B.E/M.E courses in any engineering college in Bangalore, Based on the repaying capacity and the course selected, students will be offered a maximum education loan of Rs. 10 lakhs for pursuing engineering education in India. Some of the popular banks that offer education loan for engineering students in Bangalore are Bank of Baroda, HDFC Bank, Bank of India, Federal Bank and ICICI Bank.

Education Loan for Engineering Students in Tamil Nadu:

Tamil Nadu houses some of the best engineering colleges in the country including CEG and IIT Madras. Students who have obtained an admission to an engineering course in a recognized technical university in Tamil Nadu can get an education loan without any hassles. Select engineering colleges also have partnered with banks to provide education loans easily. In Tamil Nadu, the fees for undergraduate engineering course may vary between Rs. 4 lakhs to Rs. 12 lakhs for 4 years. Also, in some cases where the student has secured admission through management quota in an engineering college in Tamil Nadu, certain banks may offer education loan. Some of the most preferred banks for education loan for engineering students in Tamil Nadu include State Bank of India, Punjab National Bank, Central Bank of India and Canara Bank.

Education Loan for Engineering Students in Delhi:

The State Government of Delhi has come up with a unique scheme wherein students whose parents do not have property as guarantee to avail loan will be offered educational loan up to Rs. 10 lakhs. As per this scheme, students who have cleared class 12 will be eligible for the education loan. Apart from this State Government initiative, students who have secured admission to a recognized engineering college in Delhi can avail an education loan easily for up to Rs. 4 lakhs. The loan quantum will be decided based on the repayment capacity, college and the course selected by the candidate. Education Loan for Engineering Students in Delhi covers all costs including admission costs, fees payable to hostel, books & equipment costs and project costs required for course completion and purchase of completion, if required. Also, if a student obtains admission through management quota in any of the engineering college in Delhi, education loan may be considered on a merit basis.

Education Loan for Engineering Students in Mumbai:

A student who has secured an admission to undergraduate engineering courses like B.E and B.Tech in Delhi and post graduate courses like M.E in Delhi in a recognized engineering college will be able to get an education loan easily, Students will be required to submit certain documents after making an application and the documents will be verified by the bank. For engineering studies in India, most of the banks offer loans up to Rs. 4 lakhs at nominal interest rate. In case the individual has obtained an admission to an engineering college under management quota, certain banks may consider offering a loan based on the merit status of the student. Mostly, the tenure offered for education loan for engineering courses in 5 to 7 years and the Education Loan in India can start servicing the EMI after the moratorium period or after they secure a job.

Source: https://educationloansinindia.wordpress.com/2016/05/26/education-loan-for-engineering-students-in-india/

Student loan

Eliminating your so to speak can be one amongst the particular fighting monetary goals   several buyers are necessary to juggle. Another   can be household possession.

Study Loan

Study Loan 

It can be fairly distinct that student loan installments will have an effect on the amount     and also precisely how quickly you're able to preserve the down payment for one’s first household. Nonetheless they may have an effect on your eligibility for the house loan to begin with.

Check out this to find out the way the distinct federal government house loan programs view? The variety involving student loan installments.

Designed inside the 1930s, the Fed Housing Government house loan is often a popular decision for most first-time homeowners. Not simply does it usually accommodate a reduced down payment – 3. 5 percent occasionally – the particular credit score requirements is usually a a bit more forgiving as compared to just one from a conventional financial institution.

Sad to say, recent changes to FHA house loan underwriting guidelines could make this program fewer accessible to buyers together with student loan debt. Before, buyers exactly who acquired the student loan installments deferred for a minimum of 12 a few months could possibly don't include this debt through the total debt-to-income percentage deemed any time trying to get home financing.

Just what loan providers try to find here is whether or not your month to month obligations are generally consequently large balanced with your revenue of which you will have difficulty or struggle to fork out your house loan transaction in the future. The majority of loan providers try to find debt-to-income proportions cheaper

As compared to in relation to 43 percent, but some are generally OK when it is as tall as 50 percent.

Intended for credit seekers together with large? student loan debt, finding the option to don't include this debt through of which debt-to-income computation could possibly imply the particular difference involving being approved with an FHA house loan and also becoming refused. Given that September. 15, on the other hand, such deferred lending options will probably now become as part of the debt-to-income computation on the song involving 3 percent from the student loan sum or in relation to $200 for any $10, 000 to be paid.

Including scenarios the place that the consumer can be underneath an income-based repayment strategy which has a transaction involving absolutely nothing bucks. Individuals together with preset monthly bills can have people installments utilized ?in the particular debt-to-income formulation.

Even though this concept modify will clearly lead to some first-time applicants to become refused, it will assist make certain that people are not really signing up for additional debt as compared to can be workable.

Veterans Government lending options work underneath similar suggestions; on the other hand, they'll not matter the particular study loan debt when the bank loan is within an 18- to 24-month deferment during the time of final.

Anecdotal data appears to suggest of which underwriters occasionally use the very same standards for both FHA and also VETERANS ADMINISTRATION mortgages, so it's constantly recommended that you request what sort of deferred or absolutely nothing greenback income-based repayment sum will be treated.

Source: https://educationloansinindia.wordpress.com/2016/05/24/student-loan/

Top 10 Education Tech Blogs

Education is evolving fast. Every day, we hear about some new technology that will change the world and the way we learn in it. At Brainscape, we are dedicated to improving the way you learn with our own innovative smart flashcard technology (check out our subjects here), but there are many other educational technologies that are key to improving learning around the world. Because these rapid changes offer us the chance to improve education at every level for all people, it is more important now than ever before for teachers and students to have access to the best new methods, programs, and devices in the field right away.

Best Education loan

Best Education loan 

Luckily, many dedicated educators blog about some of the best education technologies available and the evolution of their uses. These 10 blogs are our favorites here at Brainscape. Smart, pithy, and immediately useful, these blogs will teach you plenty about the best and most up-to-date technologies for use inside classrooms, at home, and wherever there are students who want to learn.

Top 10 Education Tech Blogs

1. The Innovative Educator

If you have ever felt that school was boring or irrelevant, the Innovative Educator, Lisa Nielson, understands how you feel. Motivated by her own disillusionment with the way public schools today approach teaching, Nielson focuses on showing other educators ways that they can use freely available resources and technologies already within students’ grasps to make classes more engaging and relevant. Not only does Nielson deal with broad ideas about technology in the classroom, but also the nitty gritty details of implementation, so that teachers will be able to use her ideas without having to struggle against a budget process or other restrictions.

2. The Daring Librarian

Gwyneth Jones, the Daring Librarian herself, knows that librarians can have lots of fun. Approaching ed-tech with a sense of humor and plenty of Vines and cartoons to illustrate her stories, Jones writes a blog that entertains as it informs. Not only does she provide plenty of excellent content on new apps and ideas on how to use everyday websites as learning opportunities, but also a good measure of fun stories that will have you laughing out loud.

3. EdTech RoundUp

With weekly posts on the state of technology in education, EdTech RoundUp is the best place to go to find out the latest news related to education tech. The comprehensive coverage of news and recently released apps and devices allows you to find out the latest happenings in just one place every week. While this blog may not have as many original ideas as some other blogs in the field, the RoundUp provides you with the best place to keep informed on progress in the field.

4. Edudemic

Easily the largest hub for education content out there, Edudemic provides teachers with advice, ideas, and lesson plans to better integrate technology in the classroom. While a visit to this site may be a bit overwhelming at first due to the sheer amount of attention-grabbing content, you will always be able to find new ideas that make your visit worth your time.

5. MindShift

When you are tired of reading the same ideas over and over again written in different words on different blogs, head over to MindShift for something unique. Focusing on slightly edgier, more fringe topics within the educational technology field, MindShift opens your eyes to totally new ideas. With its wide scope and its dedication to sharing all unique opinions on education, MindShift will give you plenty to talk about with your colleagues.

6. Free Technology 4 Teachers

While ideas are great, implementation remains the biggest challenge for many teachers. A lack of resources and tools plagues many schools, making it more difficult to use technology in the classroom. Richard Byrne addresses this in his blog, Free Technology 4 Teachers. His well-organized site is a treasure trove of free apps, software, videos, and graphics that teachers can use in the classroom right away. Practical and clear, Byrne gives suggestions that even the least tech-savvy teacher can use.

7. Cycles of Learning

Who doesn’t like a good life hack? Ramsay Musallam recognized how useful hacks could be in classrooms, so he set up Cycles of Learning to share practical education tech hacks to make teachers’ lives just a bit easier. Once you see his TED Talk on sparking learning, you won’t be able to get enough of his content. By focusing on simple ways to inspire real learning in students using technology in the classroom, Musallam shows us that even learning can be hacked.

8. Edutopia

Hosted by the George Lucas Educational Foundation, Edutopia has plenty of well-indexed information on how technology can be used in classrooms. Since information is filed by age group and topic, teachers can easily get practical ideas that are relevant to their current curriculum without wading through lots of ideas that won’t quite work for their individual situations. With plenty of videos and fun quizzes, Edutopia can be a fun place to browse even if you aren’t looking for anything specific. Make sure to click on their “Trending Topics” section to find out what the hottest topics are currently in education technology.

9. Steve Hargadon

Don’t let the simple design and lack of flash fool you; Steve Hargadon’s blog provides plenty of worthwhile current information on educational technologies. A true ed-tech leader, Hargadon is the director of the Web 2.0 Labs, host of the Future of Best Education loan interview series, chair of the Social Learning Summit and the Learning 2.0 Conference, and co-chair of the annual Global Education and Library 2.0 worldwide conferences. As Hargadon is one of the top experts on educational technology, you can be assured that reading his blog will give you plenty of innovative ideas.

10. My Paperless Classroom

Sam Patterson, K-5 tech integration specialist, talks about his own experiences trying to implement tech ideas in classes in My Paperless Classroom. Not only does Patterson have some excellent ideas on how to effectively use technologies less commonly allowed in classes, including MineCraft worlds, toys, and video games, but he also candidly reveals some of the

challenges and pitfalls of these technologies. Be prepared to learn what tech integration really means in the classroom.

Source: https://educationloansinindia.wordpress.com/2016/05/19/top-10-education-tech-blogs/

An Education Loan can be highly tax efficient for you

For most assesses, tax benefits typically revolve around Section 80C for insurance premiums and provident fund payments, Section 24 for interest on housing loan and Section 80D for payment of medical insurance premium. These are normally the most commonly used sections in India. However, there is another very important and less talked about provision under Section 80E for interest paid on education loans pertaining to higher studies. The beauty of this provision is that there is no upper limit for Section 80E and technically any amount can be claimed. The only condition is that it should pertain to interest paid on an education loan taken for the purpose of higher studies.

Understanding the basics of Section 80E…

Education Loan in India

Education Loan in India 

First and foremost it needs to be remembered that Section 80E pertains only to individuals and this benefit is not available to HUFs (Hindu Undivided Family). Originally, this benefit was only available if you took the loan for your own education. But subsequent to an amendment, the Section 80E also applies to interest paid on education loan taken for self, spouse and for children. Interestingly, the benefit can also be claimed in case of children for whom you are the legal guardian under law, though they may not be you own children.

It needs to be remembered that Section 80E does not have any upper limit. The only condition is that the benefit can only be availed for interest paid on education loan and not for the principal repayment. Secondly, the interest has to be actually paid out of your taxable income during the previous year. Any interest paid out of your non-taxable income will not be eligible for deduction under Section 80E. Also, the interest has to be actually paid and any accrued interest will not be eligible for tax benefit.

The definition of the usage of the loan is quite broad. It not only includes the tuition fees, but also includes books, laboratory equipment, accessories, boarding and lodging for the student. Thus all these items can be claimed as eligible expenses under Section 80E funding.

From where can you avail the loan?

The benefit of Section 80E will be available in case of loans availed from approved financial institutions, banks and approved charitable institutions only. Informal loans availed from family and friend will not be eligible for this benefit. Also the definition of higher education is defined to include any higher

Studies post Senior Secondary Examination or equivalent level. In recent amendments, many vocational courses have also been added to the list of eligible categories for which benefits of educational loan under section 80E can be availed.

While studies abroad are not included as an explicit category, there is no provision that bars from claiming the benefit of Section 80E for the purpose of studies abroad. That would also depend on how many banks are willing to fund the same.

It needs to be remembered that the deduction can only be availed by the person who has taken the loan. Thus if the father takes a loan then the son cannot avail the tax benefit and vice versa.

For how long can the deduction be claimed?

The deduction for interest on education loan will be available during the assessment year in which the loan is availed plus 7 subsequent years after that. Of course, this is subject to the fact that the loan is not repaid before that period. Hence strategically it makes more sense to restrict your education loan to 8 years as tax benefits are not available after that.

For claiming the benefit under Section 80E, the bank which has lent the education loan gives you an explicit certificate which clearly states that the loan was taken for the purpose of pursuing higher education and hence is eligible for Section 80E. Additionally, the bank certificate also includes the detailed segregation of interest component for the full year and the principal component. As mentioned earlier, the benefit of Section 80E is only available for interest component of educational loan and not for the principal component.

In short, Section 80E provides a very useful method to get a loan for higher education. Banks are a lot more flexible on giving loans for higher education and do not insist on too many documents. At a time when higher education costs are going through the roof, this provides a very tax efficient way of financing higher Education loan in India for you as well as your spouse and children.

Source: https://educationloansinindia.wordpress.com/2016/05/18/an-education-loan-can-be-highly-tax-efficient-for-you/

Fund your education with better education finances

In India, it’s a herd mentality that we feel our parents will pay for our education. But, you should be aware that education costs is creeping each day, inflation is an added burden on people and with the handful of savings your parents have,  it will become next to impossible to finance your higher studies that are super expensive especially the professional studies. Instead, there are better solutions like education loan that will take complete care of your higher studies whether in India or abroad. It makes you become self-independent and gives confidence in shaping up your career in your desired way. Secondly, it makes your parents relieve from unnecessary burden of traditional finances and loans that come at very high costs, with stringent measure of repayment. 

Education loan

Today, education has been commoditized and studying from top-notch university, B-school or law is surely going to costs you lakhs of rupees in this highly inflating economy.  Student insists on studying abroad is because professional skills are added in your portfolio and gets you a replacement for a good desk job. But there is a great price attached to it in achieving this and education loan provides the right platform for an individual to achieve the dreams of life.

This loan is form of credit advanced to scholars and students. It is designed to help students to pay their college tuition fees, books, laptops, hostel or accommodation charges, and other living expenses including travelling costs for foreign studies as offered by some of the leading private finance firms in India.

Every banks or private finance firm has its own norms and qualification process to pass the education loan. In today’s rising costs time, every individual faces own set of problems such as a visa clearance, fund approvals, slow loan processing, incomplete finances etc. While taking admission in foreign university students have to show sufficient proof of funds. If you don’t have these funds your admission is likely to get cancelled. Therefore, some of the leading private finance firms have come up with unique and friendly solution for customers such as Pre-Visa Disbursement Loan, Pre-Admission Loan, Certificate of Availability of Funds, GRE score based loan, Bridge loan, fast track loan etc. which cater exclusively to students’ particular requirements and set them free from any form of obstacle in their road for career development.

Private Finance firms & government banks offer customized loan solutions after taking a holistic view of the student as well as the co-signer and security, if any, for the loan. Meritorious students are given the option of availing education loan without any security for select courses and countries. Various flexibilities and features with co-signer and collateral norms assist student get better access to financing that would otherwise be hard to obtain. They have a dedicated research wing that keep up with various developments and nuances of the dynamic education sector globally; this translates to underwriting innovation via which they can project the future career trajectory of students. Such innovations and domain knowledge simply means smarter financing options for smart Indian student section.

While government banks demand for margin money of around 15-20% of the loan amount to approve study loan, some private finance firms give loan at no margin money costs. The interest rates offered are as low as 12.75% and the processing fee is mere 1-2% of the loan amount being calculated on a case-to-case basis. They design study loans without setting any cap on finance and provide 100% coverage of education costs, making such young talents of India free from unnecessary burdens.

When it comes to repayment these banks or private firms come up with flexible payment options such as EMI payment course, Interest servicing during course & partial interest servicing during course, EMI repayment Post-Holiday /Moratorium period and Step Up repayment facility. You can look these options and then decide the repayment as per your flexibility. However, repayment is also one of the important part of education loan financing and you need to clear the debt associated with your loan. As this is the best helping hand that you get during your rainy days of searching finances for your higher studies.

High Cost of Quality Education and Who Pays for It

As we all know, fees in IITs has been increased to Rs 2 Lac/year, though the committee had recommended a fee of Rs 3 Lac/year. Even at Rs 3 Lac, the fee would have covered perhaps about half of the actual cost per student of running an IIT.

Education loans

Education loans 

High quality higher education is actually expensive. Let us understand why it is so. In most  areas that change rapidly, like engineering and sciences, high quality education is only possible in institutes that have a strong focus on research. The reason is simple – without engagement in research, the faculty is likely to get outdated, leading to  its education becoming outdated. This correlation can be empirically observed as well – across the world the best places for technical education are also the Institutions that are ranked the highest in research.

With new pay scales of 7th pay commission, the direct overall cost per faculty will average more than Rs 20 Lac per year in Institutes like IITs.  As in such research focused institutions the student-to-faculty ratio may be about 10:1 or lesser for BTech students (the overall ratio will be much higher as such institutes have a high number of PG students who pay minimal fee).  This means, just to cover the cost of faculty, the fee will need to be about Rs 2 Lac per year per student. And in a research focused institution, as it has to invest in labs, library, travel support, PG programs, etc. the cost of faculty is around 1/3rd of the total expenditure. This means that the overall cost of education per BTech student is about Rs 6 Lac per year.

(It should be noted that in many private colleges which only focus on teaching, the costs are significantly lower. Their average cost per faculty is less than half of an IIT, the BTech student-faculty ratio is twice or more, and as they do not invest in research their faculty costs are two-thirds or more of the expenses. These translate to the cost per student of Rs 75K per year.)

The burning question of current times is who pays for this high cost of high quality higher education. A few decades ago, globally it was accepted that higher education is public good – i.e. it is in the interest of the society/nation to have people go for higher education and that the society will benefit from more people with higher education. With this understanding that higher education is public good, world over, including India, higher education was highly subsidized by the Government.

Today the scenario is different. Higher education is increasingly being seen as private good, i.e. the individuals who get higher education are the largest beneficiaries of it. This empirically also holds – people with higher education generally earn more, and people who get high quality education from top institutions often earn substantially more. If higher education is private good, then it  follows that the individual should pay its cost, at least most of it. Due to this, government subsidy for higher education has been reducing in many developed countries like US (where most state universities have seen a steady decline in government support), UK (where fee were raised substantially, despite hue and cry, a few years ago), Australia, etc.

This argument that quality higher education is a private good and hence should be paid for by the beneficiary is slowly coming to India also. But in India, as higher education is the ticket to individual upward mobility, it is imperative  that this opportunity is not denied to those who cannot afford to pay the cost. Therefore, there is a need for models for financing so as to ensure that access to higher education is available to all, yet the individuals who benefit the most pay for it, when possible.

Clearly subsidy is not the answer for providing access, as it subsidizes costs for all, even for those who can easily afford it, from public funds. Also, as gross enrollment ratio increases, and the demands on Government funds increase for other public goods and services, it will become increasingly harder for the Government to afford or justify subsidy of higher education.

One possibility is that student pays, but easy access to education loans is available. Education loans are already widely available in India, and some Governments like the Delhi Government, have made the access to these loans even easier by becoming the guarantor for such loans.

However, education loans are still expensive and not all students can afford it, particularly if the job prospects after education are not very bright, as is often the case. Recently, my colleague and friend M. Balakrishnan and I wrote an opinion piece in Indian Express on an alternative to education loans for paying for the high cost which is fairer in many ways. In the proposed scheme, a part of the fee for the student is deferred, and the student pays for it after he/she graduates, with the condition that the payment is limited to some percentage of his/her salary for a few years. This innovative scheme reduces the need for loan, and converts it to payment

which is done after the student is in employment and the amount is dependent on the paying capacity of the student.

There is still need in the country for schemes to ensure that access is not denied, while not subsidizing education for all. Towards this, there is a strong argument to support income-linked fee-waivers, in which students whose families can afford, pay the full fee, while partial fee waivers are given to students whose families cannot afford the high cost. (In US this approach is often referred to as “need blind” admissions.)  Implementing such schemes is becoming far more feasible now with better reporting and tracking of incomes and linking of assets with Aadhaar, PAN, etc

IIIT-Delhi has been operating such a scheme for many years. While the fee has been kept close to actual cost as the Institute has to become self-sustaining on operational expenses. for ensuring access to its high quality education, IIIT-Delhi has income-linked partial-fee waiver scheme which provides for 100%, 50%, and 25% waiver for students from families with different levels of income. Recently, the Government of Delhi has agreed to cover this subsidy, allowing the Institute to widen this program and continue it. This innovative model, now backed with Government support, provides a good balance between charging the real cost of education and ensuring access to all.

I believe there is need to evolve more innovative methods to ensure access to all, while minimizing subsidy where not needed.

Source: https://educationloansinindia.wordpress.com/2016/05/09/high-cost-of-quality-education-and-who-pays-for-it/

Understanding student loans

Study loan

Study loan

4 States That Offer Generous Student Loan Forgiveness Programs

One of the Student Loan Ranger's all-time favorite television series was the quirky '90s show "Northern Exposure." The premise was that the main character, New Yorker Joel Fleishman, had his medical school tuition paid for by Alaska in exchange for him living and working in that state for a period after he graduated. Instead of the expected destination of Anchorage, he's sent to the very small town of Cicely with its cast of eccentric characters.

Study loan

Study loan 

The show came to mind when we were answering one of the most frequent questions we receive here at Student Loan Ranger: "How can I get my loans forgiven?" We've talked about the most common programs, the income-driven repayment plans and Public Service Loan Forgiveness, many times before. This week we're highlighting a few state programs that offer some very generous student loan repayment benefits in exchange for living and working in a particular state, in a particular field.

• Alaska: While there may not be a Cicely, the state does offer a very generous loan repayment program for qualified health care workers willing to live and work in areas with shortages of certain types of health care providers. The program will pay up to $35,000 in qualified federal or private student loans for up to three years.

Alaska's program allows an additional three years for some employees and will increase the benefit to $47,000 per year for "very hard-to-fill positions." The level of benefit will depend in part on whether you are licensed in a tier I position – as a physician, dentist or pharmacist – or in a tier II position, which includes physician assistants, nurse practitioners, registered nurses, physical therapists, clinical psychologists, clinical social workers and dental hygienists.

• California: If you're more into water skiing than dog sledding, California also offers a very generous loan repayment program for qualified health professionals. The California State Loan Repayment Program offers up to $50,000 per year in federal or private student loan repayment for a two-year, full-time, commitment in an underserved area.

Have more qualified debt? Extend your service and receive up to $20,000 per year for years three and four, and $10,000 per year for years five and six. You must be licensed to practice in California and not be part of a private practice.

Eligible areas of health care include medical doctors in primary care or family medicine, psychiatric nurse specialists, dentists, mental health counselors, registered dental hygienists, health service psychologists, primary care nurse practitioners, licensed clinical social workers, primary care physician assistants, licensed professional counselors, marriage and family therapists, certified nurse midwives and pharmacists.

• New York: State residents with undergraduate degrees from approved New York colleges and universities may have up to $10,000 per year of their loans repaid if they operate a farm full time within the state. Most federal loans (except Perkins) and private student loans are eligible and you must sign a five-year commitment to be eligible. The maximum award is $50,000.

• North Dakota: Got milk? Veterinarians licensed to practice in the state may receive up to $80,000 in loan repayment benefits by agreeing to a two-, three- or four-year commitment in a high-need area. Only three veterinarians are approved per year and preference is given to those willing to focus on "large food animals."

The award amounts are as follows: $15,000 for each of the first and second years of a two-year contract; $15,000 for each of the first and second years and $25,000 for the third year under a three-year contract; and an additional $25,000 for the fourth year of a four-year contract.

Those are just a few of the dozens of state-based student loan repayment programs out there. You can find a full list in our e-book.

Now, the bad news: The majority of student loan borrowers are going to have to pay back their student loans as agreed. The programs that most federal loan borrowers may qualify for are the income-driven repayment plans and, if they work for a nonprofit or government employer, Public Service Loan Forgiveness.

Keep in mind, however, that these programs require many years of payments before any forgiveness kicks in – and under the income-driven plans, the forgiven amount is taxed as income. As far as these state and other programs go, the amounts and availability can change annually based on budgets and priorities.

The bottom line is that one should never borrow in anticipation of forgiveness. But if you have significant study loan debt, these programs are a great way to reduce that debt while gaining experience and giving back.

Source: https://educationloansinindia.wordpress.com/2016/05/05/4-states-that-offer-generous-student-loan-forgiveness-programs/

A Nightmare Scenario for the Student Loan Program

You may know that the federal student loan program makes an immense profit. But while that may be the case, not every student is profitable. In general, the government uses money it makes from the most reliable borrowers, particularly graduate students and the parents of undergrads, in order to subsidize generous terms for riskier undergrads who tend to default on their debts in large numbers.

Education loans

That's why I can't help but feel a little nervous reading this piece from Quartz's Shelly Banjo about top companies that are now helping their young employees pay off or refinance their student debt. Credit Suisse, for instance, is now helping workers get an extra 0.25 percent off their interest rate when they choose to refinance with SoFi, a startup that apparently has similar deals with 200 employers. It's a nice perk, and I imagine other corporations looking to attract top graduates will start following suit. Which should probably give the Department of Education fits.

The student loan refinancing industry operates on a pretty simple principle: A lot of high-earning borrowers get a relatively raw deal on their government student loans, so it's easy to offer them better terms while still making a profit. This is because the Department of Education doesn't have any underwriting standards—no matter how big or small a credit risk a borrower might be, they get the same interest rate. So an aspiring software engineer at MIT, who will probably have no problem paying off her debt after graduation, gets the same deal as a community college student who's likely to drop out and possibly default. From a social fairness perspective, this make sense. But it leaves an opening for companies like SoFi to come along and pick off valuable borrowers by offering a new, low-interest loan to pay off their old government debt. They're just skimming the cream off the top. 

On its face, none of this is bad from a consumer standpoint. But by hooking up with employers, student loan refinancers stand to gain an enormous amount of free marketing and new business. And as the benefit becomes more widespread, it's easy to envision a situation where the government loses a significant fraction of the borrowers who now essentially make the student loan program self-financing. That could mean the deficit will end up growing a bit, or (more likely) Congress will decide to increase interest rates for the remaining borrowers who are still in the federal program—who will also, sadly, likely be the ones least able to pay. And, of course, the more the government hikes rates, the easier it becomes for refinancers to swoop in and snatch more business. Theoretically, at least, you can imagine a death spiral of sorts forming.

Top Comment

If the government has a problem with losing "good" borrowers such as myself, they can make my interest 2.5% like the company I consolidated with.  Sorry, I'm not paying 8.5% just because the government makes poor loans.  More...

A necessary disclaimer: I might just be hyperventilating here. Startups like SoFi are, well, still just startups, and it's entirely possible that Education loans refinancing will just remain a niche without much in the way of federal budget consequences. It's also possible the government could head the whole problem off by lowering rates a bit, either for graduate students, who tend to be the juiciest targets for private refinancers, or maybe even across the board. But, as I've said before, I think the issue at least bears watching.

Source: https://educationloansinindia.wordpress.com/2016/05/02/a-nightmare-scenario-for-the-student-loan-program/