Sallie Mae Cuts Rate for Bar Study Loan: Boon for Students? - Analyst Blog

SLM Corporation SLM, also known as Sallie Mae, announced a reduction in interest rates for the Bar Study Loan provided to finance the costs related to bar exam that are not covered by federal student loan programs. Sallie Mae's Bar Study Loan is available for the students pursuing law and tenders minimum annual percentage rate ("APR") among private education lenders in the country.

Study Loan

Study Loan 

About Bar Study Loan

This product facilitates loans for law students by providing for bar review course fees, bar exam deposits and fees as well as living expenses incurred while studying for and taking the bar exam. The interest rates for the loan vary from 3.25% to 9.96% in terms of APR based on the current LIBOR index.

Though similar loans are available, the loan program offered by Sallie Mae covers post-graduate training expenses unlike others. In addition, apart from the accessible competitive rates, borrowers do not have to shell out origination or disbursement fees to the saving, planning and paying for college company.

Moreover, no prepayment fine is levied by Sallie Mae and students do not have to rush to make payments while in school or after that for nine months. Sallie Mae's Bar Study Loan is an attractive opportunity for students interested in higher studies as it comprises flexible repayment options.

The repayment alternatives include interest-only payments for the first two or four years with principal sum and remaining interest repaid subsequently. A standard repayment option of repaying for up to 15 years is also available under the program.

To top that, a cutback of 0.25% is provided by Sallie Mae for registration to make scheduled monthly payments by automatic debit. Further, free of charge access to FICO Credit Scores is given on a quarterly basis.

Our Take

Sallie Mae's Bar Study Loan program takes into consideration the immeasurable study hours and expensive preparation courses and thus, accordingly offers easy loans to students. The new economical rates will further help extend affordable choices to the law students.

Currently, Sallie Mae carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enova International, Inc.

ENVA , Credit Acceptance Corp. CACC and Santander Consumer USA Holdings Inc. SC. While Enova International sports a Zacks Rank #1 (Strong Buy), Credit Acceptance and Santander Consumer USA hold a Zacks Rank #2 (Buy).

Source: https://educationloansinindia.wordpress.com/2016/06/29/sallie-mae-cuts-rate-for-bar-study-loan-boon-for-students-analyst-blog/

Student loan debt weighs on state, national economy

Central Texas mom Joan Neppl-Wilhite has navigated student loan applications, extended retirement plans and even bought a few lottery tickets to help her two children in college.

Student Loans in India

Student Loans in India 

Most recently, the single mom put a plea on gofundme.com for a portion of her daughter Marissa Wilhite’s estimated $60,000 tab to attend Texas A&M University for an undergraduate degree.

“You have to be creative or your kids are going to get creamed,” said Neppl-Wilhite, 50. “You are walking away with a $60,000 bill in your pocket. I’m thinking, ‘My God, how do you even make it?’ It’s gotten out of hand.”

Student loan debt weighs on state, national economy photo

Andy Sharp

Mohamed Bayo, a student at Austin Community College’s Round Rock campus, stands in the campus amphitheater on Feb. 17. Bayo, who graduated last year from Pflugerville High School, says he wants to know everything involved with borrowing money so he won’t get into trouble later.

Neppl-Wilhite isn’t alone in her frustration.

Amid rising college education costs, the country is seeing a surge in student loan debt and in those borrowers’ delinquency rates. The combination, lawmakers and policy experts say, has led to a new kind of debt crisis, and one that could become a long-term threat to the U.S. economy.

The U.S. student loan debt market, which grew 7.1 percent to a record $1.2 trillion last year, is now the second-largest form of consumer debt behind housing, according to the Federal Reserve Bank of New York. It’s nearing the size of the $1.3 trillion subprime home mortgage market that helped spark the last recession.

Student loan debt weighs on state, national economy photo

Ralph Barrera

Jan Ross Piedad, studying on Feb. 19 in the Texas Union at the University of Texas, says she is trying to do whatever she can to cut down her student loan debt. She also works on campus to help defray costs.

“There’s a lot of dynamics that are very different here,” said Garrett Groves, economic opportunity program director at the Center for Public Policy Priorities, which has spotlighted the issue in Texas. But “when you’ve got a bowling ball of $1.2 trillion, how might that knock over some of these other economic foundations?”

The impacts have been wide-ranging: Record numbers of students are returning home as they delay a laundry list of economic and personal decisions from buying homes to getting married. Many say they are also reconsidering their career prospects.

Experts also say they are concerned that the crisis will widen demographic gaps on college campuses, as minority students and those from low-income families face tougher choices to access funding.

Student loan debt weighs on state, national economy photo

Stephen Spillman

Joan Neppl-Wilhite holds a photo of her daughter, Marissa Wilhite, at her home south of Austin on Feb. 18. Through the use of a crowdfunding website, Joan is collecting donations for her daughter’s study abroad trip to Greece in June. Marissa is a junior at Texas A&M University.

“My family doesn’t have a whole lot of money to donate towards college,” said Mohamed Bayo, an 18-year-old Pflugerville high school graduate attending his first year in college. “It’s a lot of money dealing with college.”

Loan struggles hit home

Texas has seen the default crisis firsthand as tuition rates surge, fueling debt levels and delinquency rates.

“Particularly worrying is the fact that rising tuition rates are driving an equally steep increase in college loan debt,” the Texas comptroller’s office said in a recent report. “Many Texas college graduates and former students are entering adult life hobbled by years and even decades of crippling debt.”

Bayo, a first-year student at Austin Community College, visited his financial aid office a dozen or more times over worries about borrowing money.

Bayo lives at home to save money and help his single mom.

“I definitely know the grants are going down,” he said. “And I don’t want to be stuck with too much.”

Bayo has reason to worry.

In 2012, 20.5 percent of the state’s Student Loans in India borrowers were more than 90 days delinquent, surpassing the national rate of 17 percent and marking the 10th highest rate in the country, according to the most recent figures from the Texas comptroller’s office.

“That’s where Texas could be doing a lot better,” said Groves.

Experts say a combination of higher fees since tuition deregulation and a lagging grant program is fueling the increases.

As of 2014, Texas students owed an estimated $75.6 billion in college loan debt, up about 7 percent from the previous year.

Texas tuition rates — once among the most affordable in the country — now are catching up to the national average and greatly outpacing health care prices, income, inflation and housing prices.

Texas colleges saw Hispanic enrollment fall 28 percent, or 149,790 students, short of 2015 state-directed higher education goals.

 “A lot of the default prevention efforts occur after students have left school,” Webster said. “This is trying to create a system that will … have students make wise decisions while they are in school.”

Meanwhile, students and policy groups such as Washington, D.C.-based Young Invincibles are lobbying for relief this session. State lawmakers are considering a 4.5 percent funding cut to community colleges even as the state’s coordinating board has called for a 13.8 percent funding increase, the group said.

“It’s the wrong direction to go,” said Colin Seeberger, spokesman for Young Invincibles, a millennial policy and advocacy group, which led a recent student rally on the issue at the state Capitol.

Meanwhile, to help prepare student borrowers, TG and the University of Texas each are now offering online tools to let students estimate future earnings versus debt based on their college and career plans. Policy groups are also pushing to streamline forms such as the burdensome Free Application for Federal Student Aid required for aid.

Addressing students’ needs before, during and after the borrowing process is key to ensuring success, experts say.

“It isn’t just go to school and you will be successful,” Webster said. “But go to school with a plan on how you are going to pay for it.”

Source: https://educationloansinindia.wordpress.com/2016/06/28/student-loan-debt-weighs-on-state-national-economy/

Which degrees are worth the debt?

Education loans

Education loans    

Student loan Debt how big the bubble grow

Educational loan

Educational loan 

Finally an Antidote to the Student Loan Debt Problem

The New Proprietary Online Learning Model To Offer Fully Accredited, Postsecondary Education To Busy Adults — Minus the Direct Loan Debt.

Educational loans

Educational loans 

THE PROBLEM IS WELL KNOWN, and the personal stories that follow are often tough ones, with a narrative that has become all too familiar.

College tuition costs have skyrocketed over the last twenty years, and the accompanying student loan debt has increased dramatically, financially shackling young adult graduates and too often delaying individual dreams. But what happens when an educational company believes that American colleges and universities have a social obligation to solve the cost crisis?

We like to tell our children that they can “own their future,” and today, fortunately, they have become increasingly assured that we mean what we say. It is one thing to offer encouragement in the form of an upbeat refrain. However,  it is quite another to tackle these two enormous impediments to higher education, affecting the majority of students seeking an advanced degree. Swelling college tuition costs and massive student loan debt are, after all, no small matter.

The crush of numbers can still be surprising, not to mention intimidating: 70 percent of 2013 graduates had a median average of just under $29,000 in student loan debt. Only one year later, the average debt load was around $33,000. Even adjusting for inflation, that figure is more than double what students had to pay back just 20 years ago. From 2005 to 2012 alone, average debt jumped a whopping 35%. Americans today owe a staggering $1.2 trillion in student loans, a number that now surpasses total credit card and auto loan totals.

Dreams Delayed By Student Loan Delinquency

As though that was not enough, the Wall Street Journal recently published “The Student Loan Problem is Even Worse than Official Figures Indicate”. In which they reported that nearly a third of all Americans now struggling to pay down their student debt are at least a month behind. Delinquencies on student loans are far higher than other types of consumer credit, and that includes mortgages, credit cards, and auto loans. These are facts that can shake a student’s confidence in the future – specifically, their OWN financial future.

Clearly, something needed to be done.

We asked ourselves, how can any graduate hope to “own their degree,” let alone their future, burdened with heavy college loans? The immediate answer is that students need to be able to graduate college without incurring crippling direct loan debt. But how, amid the skyrocketing tuition costs of the traditional university model that sits at the heart of student debt problem, could that be possible?

Own Your Degree. Own Your Future

As an alternative to the standard university model that sits at the heart of student debt problem, Patten slashed tuition costs, with development of an award-winning outcomes-focused online learning model, designed to make higher education accessible and affordable to all, no matter their age, location, ethnicity or financial situation.  Flexible scheduling gives working adults the ability to adjust their pace to meet the demands of their busy schedule. Exams are scheduled when students are ready to take them. Once a student understands the material they can test out of the course and move ahead.  With open enrollment and an affordable pay-as-you-go approach, there’s no need for Educational loans.

Long Term Advantages Of Graduating Without Direct Loan Debt

This allows students working full-time, many of which are parents, to maintain their job and afford their studies in the present. And most importantly enjoy the long-term advantages of graduating without the burden of student debt, creating wider possibilities. Upon completion, Patten University graduates can often hold out for better paying, more promising jobs longer than indebted students. They are also more likely to afford a monthly home mortgage sooner or even start a family years earlier.

“Graduating Debt-Free Means Students OWN Their Degree And OWN Their Future! “

Emerging as a new model in higher education, Patten meets all eligibility requirements for corporate tuition reimbursement. So it is no surprise that employer partnerships have played a large role in our expansion. Through tuition assistance employees can to keep their current job and work towards advancing their career at the same time. Since Patten tuition cost is lower than the typical amount offered by employers through tuition assistance, employees can earn their college degree at no cost, books included. This is a game changer.

Increasing possibilities by eliminating the need for additional student loan debt is not only the benevolent thing to do, at Patten we believe it is the responsible thing to do. After all, public taxpayers fund just under $200 billion a year in government aid to higher education. So isn’t it incumbent upon all U.S. colleges and universities to make sure they use every tool they have to increase access and lower costs for their students?

This socially responsible, fully accredited online university thinks so.

Source: 

https://educationloansinindia.wordpress.com/2016/06/23/finally-an-antidote-to-the-student-loan-debt-problem/

When it comes to student loans, there's no simple nudge

Never before has the topic of student loans featured so prominently in the nascent stages of a presidential campaign. Nearly every major candidate has publicly addressed how they would help Americans better manage their student debt, with policy prescriptions ranging from making college debt-free for all students to simplifying and expanding access to income-based repayment options.

Study Loan

Study Loan

What is often overlooked in the rhetoric about student debt, however, is the question of how we can help students make informed borrowing decisions in the first place. Making strategic investments at the front end of the process to help students borrow amounts that are well-suited to their personal circumstances could help reduce downstream challenges with repayment or debt management.

Choosing whether and how much to borrow is a highly complex decision to navigate. In an ideal decision-making process, students would simultaneously consider a multitude of important factors—like the probability that they will graduate from the college where they’re planning to enroll; the earnings return they can expect from a degree in their field of study; the likelihood that they will stay motivated and focused on coursework even when faced with many competing interests for their time and attention—and borrow if the benefits of doing so outweigh the costs.

As work in behavioral economics and psychology has demonstrated, though, people’s actual decision-making processes are typically quite different from this ideal. For instance, one common behavioral tendency is to stick with the status quo when making an active choice would require a substantial investment of cognitive energy and attention. In the context of student loans, this could mean that students borrow the full amount they are offered in a financial aid package even if they need less than this amount to enroll. Alternatively, at institutions that do not automatically offer students loans as part of their financial aid packages, students who might benefit from borrowing may not apply for a loan.

Over the past several years, researchers have implemented a variety of interventions to help students make active and informed decisions at other similarly complex stages on the road to and through college, such as where to apply to college, whether to complete the federal financial aid application, and how to navigate a complex array of financial and procedural pre-matriculation requirements during the months after high school graduation. These interventions, which apply insights from behavioral sciences, have cost relatively little per student but have generated substantial improvements in college enrollment and persistence.

In these cases, the direction of how to nudge students is fairly clear. Encouraging low-income students to complete the Free Application for Federal Student Aid (FAFSA) qualifies them for thousands of dollars in need-based grant aid, making college more affordable if they choose to matriculate. Supporting high school graduates to complete required tasks at the college where they have been accepted and decided to enroll helps them follow through on their own intentions.

By contrast, providing loan guidance is inherently student-dependent. For a hard-working, motivated student planning to pursue engineering at a high-quality institution, encouraging them to consider a loan to meet the cost of attendance seems sensible. On the other hand, cautioning a student who is pursuing a less career-oriented field at a lower-quality institution to limit their borrowing might make sense.

The United States Department of Education (USDOE) has attempted to address the personalized nature of student borrowing decisions by requiring all students to complete loan entrance counseling before they receive a federal loan. However, as Ron Lieber reported in a recent New York Times article, the loan counseling itself is often beset with complex, seemingly irrelevant information that likely only further impedes active and informed decision-making by students.

How, then, can we intervene to help students make informed borrowing choices?

Avoid defaults; prompt active choice. As I describe above, various defaults are built into the loan origination process: some institutions automatically include loans in their aid packages; other institutions do not include loans by default. Some institutions automatically offer students the full loan amount for which they are eligible. In each case, these default policies can lead students to borrow more or less than they would if prompted to make an active decision. Instead of employing these loan packaging strategies, colleges could actively encourage students to assess whether they need a federal loan to meet the cost of attendance or to pursue their intended program of study, and if so, how much they need to borrow to do so.

Proactively deliver simplified information about the loan borrowing process. For many students, there is a several month gap between when they complete the FAFSA and when they finalize their borrowing decision. The Department of Education could leverage the contact information students provide on the FAFSA to send students loan-related planning prompts during this interim. Messages could emphasize, for instance, that students get to choose how much they borrow—they do not have to simply accept the amount offered by their institution. Other prompts could inform students that monthly payments as a portion of take-home income will vary considerably depending on their major and the institution they attend; these prompts could encourage students to choose a loan amount that will have manageable monthly payments given their planned course of study. High schools, colleges, and community-based organizations could employ similar outreach strategies with their students.

Reduce barriers to professional, individualized loan counseling. The student loan origination process is sufficiently complex that, for many students, the types of low-touch nudges I’ve just highlighted may not go far enough to help students make an informed borrowing decision. Well-trained, impartial financial aid advisors or loan counselors can help students determine borrowing amounts that are well-aligned with their personal circumstances and goals. This loan counseling need not be in person, and can be delivered at a large scale. Researchers and practitioners are using a variety of interactive technologies to provide high-quality advising to students at various stages in the college pipeline; these strategies could easily be adapted to expand the number of students who have access to professional assistance when navigating complex study loan decisions.

Intervening early on to help students make informed borrowing decisions should be an important component of broader policy efforts to reduce the volume of people who experience repayment struggles or unmanageable debt burdens.

Source: 

https://educationloansinindia.wordpress.com/2016/06/22/when-it-comes-to-student-loans-theres-no-simple-nudge/

International study Loans

The International Student Loan Center provides international students and study abroad students with access to a range of loan products to help fund their education abroad. Get started by finding your student loan in just 10 seconds.

4 Steps To Find Your Student Loan

Find Student Loans. To compare loans, the first step is to use our comparison tool above. Select the college you will be attending and the amount of money you need to borrow. You can then see the loans that meet your criteria.

Select Your Student Loan. Next, see what lenders are available at your school. Compare the terms and conditions and click apply to start the online application.

Fill Out Your Application. Complete the loan application for the lender. If you are a non-US citizen or non-US permanent resident, you will need to have a cosigner complete the online application as well. US students are also encouraged to have a cosigner.

Get Approval. Initial approval is often within days or weeks of your completed application. Funds from your loan will be disbursed by your school once it has been approved.

Examining Your Student Loan

When you are comparing private student loans, it’s important to consider any fees, rates, and repayment options to ensure that you are choosing the loan that works best for your needs. You should evaluate and compare the following:

Monthly payments

Total cost of the loan

Annual percentage rate

Repayment period

Deferment option

Cosigners

All non-US citizens and permanent residents will be required to have a cosigner with good credit who has lived in the US for the past two years. International students will be required to include their cosigner on their application.

US citizens and permanent residents are not required to have a cosigner for their loan application, however a US cosigner can:

Increase the likelihood of getting approved for their student loan

Reduce the interest rate students are required to pay

Types of Student Loans

There are many Study Loan designed for students studying outside their home country. Our US student loans are available for non-US students coming to the US as well as US students studying in a foreign country. For more information about the particular student loan products, please see below:

Student Loans for International Students

The International Student Loan Program is available to international students from around the world who are looking to study in the USA. You have to be attending one of the approved schools and you must also have a US citizen or US permanent resident to cosign the loan with you. International Student Loan offers funding that is disbursed directly to you with competitive interest rates and no application fees!

Student Loans for Study Abroad

A Study Abroad Loan provides funding to US citizens who are looking to participate in a study abroad program outside of the USA. To be eligible, students need to be attending and earning credit at an approved school in the USA. Your US school will disburse the funds directly to you prior to departing for your host country.

3 tips for making your final college decision

Congratulations on getting into your top three schools! It may seem like the hard part is over, but the hardest part of all – committing to a school – has just begun. The college admission process is filled with daunting deadlines, and a very important one is approaching: College Decision Day. Time may not be on your side, but don’t worry. Sit back, take a deep breath, and continue reading. You’re only a few steps away from making a decision.

Study Loan

Study Loan 

Step one: Self-reflect

Selecting the right college is probably one of the biggest decisions you’ve had to make. Before any big decision, it is important to self-reflect. Make decisions based on your own wants, needs, and goals. Ask yourself these questions:

• What would my ideal profession be?

• What program would I need to be in to work towards that profession?

• Do I need a bachelor’s or master’s degree?

• Where do I see myself in 10 years?

Step two: Calculate your return on investment

For most people, a college degree is the second biggest investment they will make after a mortgage. Unfortunately, the college selection process is dominated by lifestyle considerations, and very few people think about college as a financial investment. Don’t let that be you.

To calculate a simple return on college investment, divide your expected salary (return) by total college cost (investment). When calculating your investment, remember to factor in costs for room and board, tuition, textbooks, entertainment, school supplies, and more. Think of the total amount of money it will take you to earn that degree. When calculating your expected salary, make sure to compare it by school and by program. If you get a degree in marketing from School A, will your expected salary be more or less if you get a degree in marketing from school B? How does that compare to the median salary for marketing?

Remember that your salary (return) will likely increase every year, for many years. That makes a college degree a wise investment in almost every scenario. Some degrees and schools will provide more of a return than others.

Don’t forget, if you rely on student loans to pay for your degree, you’ll have to pay interest on them. The more study loans you take out, the more of an investment you’ll have to make over time due to interest.

Step three: Consider your ideal college experience If you’ve narrowed down your list to a couple of schools you can afford, make sure to think about the type of college experience you want to have.

Some lifestyle considerations include in your college decision:

• Location: Will you have to move? Is it in a location you could live for four years?

• Student population: Do you want to go to a big school or small school?

• Student to faculty ratio: How many students are there per faculty member?

• Type of school: Do you want to attend a traditional university or an online school?

• Academic calendar: How is the calendar structured? Semesters? Quarters?

• Graduation rate: How many students graduate?

• Extracurricular programs: Do you want to participate in them?

Source: https://educationloansinindia.wordpress.com/2016/06/13/3-tips-for-making-your-final-college-decision/

ISM Announces Release of Financial Literacy Tool for Hoosier Students

Student Loan Game Plan Educates College Students About Over Borrowing, Provides Personalized Tips to Reduce Indebtedness

Educational loans

Educational loans 

A new online resource that features real-time results in planning for college is now available for all Hoosiers through ISM College Planning’s website.

Student Loan Game Plansm is a unique tool to help students understand how over borrowing to pay for college can affect their financial future.

The tool provides users with personalized results on how their borrowing habits today could affect their lifestyle post-graduation. Student Loan Game Plan is web-based and gives students immediate suggestions on how to approach borrowing wisely

“Student Loan Game Plan compares future salary data with requested loan information,” said Joe Wood, president of ISM. “By looking at a realistic budget for life after college, students often are more motivated to look for grants and scholarships during college.”

Users of Student Loan Game Plan progress through a series of interactive screens and input information, including their requested loan amount, an anticipated future career and estimated past, present and future student loan amounts. From this information, an estimated student loan debt-to-income ratio is revealed.

The ratio is explained as a measurement that could indicate future financial challenges. Applicants are also warned about the financial obligations of taking on a student loan. Finally, they are walked through an estimated budget and a variety of immediate ways to reduce their expenses.

“The best loan is no loan at all, but when borrowing is going to be part of how college is funded, Educational loans Game Plan can serve as a wakeup call and eye opener for students to make the best possible choices,” Wood said. “Through proper planning, students can avoid a mountain of debt waiting for them after they receive that valuable diploma.”

Source: https://educationloansinindia.wordpress.com/2016/06/11/ism-announces-release-of-financial-literacy-tool-for-hoosier-students/

Student Debt of Olympic Production

Educational loan

Educational loan 

The life cycle of the student loan

Study loan

Study loan 

Stemming the student loan debt tide

Addressing borrowing for college strengthens Indiana’s financial future

Educational loan

Educational loan 

College loan debt is a growing crisis with direct consequences to Indiana’s economic health.

Graduates burdened with suffocating loan payments have less disposable income and high school students ill-informed in the college planning process often unknowingly marry their future to debt.

A recent report by The Institute for College Access & Success, a non-profit independent advocacy group, paints a sobering picture. Indiana now ranks 11th highest in the nation for average student debt, with 63 percent of the 2011 graduating class having loans. Indiana’s average loan debt burden of $27,500 is $900 above the national average, according to the report released last month.

It doesn’t have to be this way.

The institute’s report should ring the classroom bell of alarm to begin rethinking how Hoosier students and their families plan for college and reshape the approach of financing a higher education diploma. This will have a long-term benefit of helping to strengthen Indiana’s economy.

Consider the current scenario: Average tuition and fees at Indiana’s public colleges have increased by more than 100 percent over the past decade, according to the Indiana Commission for Higher Education.  Increased cost is not limited to just Indiana of course, or to one sector of schools. In addition to the cost increase, the available dollars for grants are stretched by a larger number of eligible recipients, resulting in more loan applications for larger amounts.

Combine those ingredients with a stale national economy, difficult job market, students’ additional debt on credit cards, and Hoosier graduates are often yoked with uncertainty from the start

Switching the collective mindset from paying for college to planning for college is the antidote. It sounds simple, but focusing on avoiding or at least limiting borrowing for college must start early and be unwavering.  The key understands the educational loan process before applying for college in order to make informed decisions.

Student loan debt can be reduced, or even avoided, by making the right moves in a few important areas:

Select the appropriate college and field of study. An online skill profiler can help students identify their interests and skills; with those variables in mind, narrowing the list of colleges (and their affordability) becomes a much easier task. Think long-term success, not short-term gratification.

Finding free money. First on the list should be the Free Application for Federal Student Aid (FAFSA), which is required to be eligible for any state or federal financial aid program. Start planning well before the March 10 deadline. Billions of dollars in grants and scholarships are doled out each year. How to piece together funding makes all the difference.

Understanding loan options. All loans are not the same. Federal money should almost always be first due to the offer of several benefits, including:  fixed-interest rates and a variety of repayment and loan forgiveness plans that are not typically found in other loans.

Indiana college tuition and fees have outpaced Hoosier earnings growth more than 100 to 1 over the past decade, according to the Indiana Commission for Higher Education. Two-thirds of college graduates in 2011 nationwide had loans, according to The Institute for College Access & Success’s report.

It doesn’t have to be this way.

By switching the collective mindset from paying for college to planning for college, the debt burden on graduates can be reduced – often even eliminated – which bodes well for Indiana’s economic health.

Source: https://educationloansinindia.wordpress.com/2016/06/06/stemming-the-student-loan-debt-tide/

Worrying about funding your dream education? Loan scores over self-financing

The only advantage of self-financing the education is that one does not take on a liability. Whereas, education loans are advantageous as they offer tax breaks, fee payment in EMIs, back-up for any unforeseen increase in cost and even makes one more responsible and independent.

Educational loan

Educational loan 

A good education helps open many doors for the child. However, education is very expensive these days. A decent education in India alone costs anything between Rs 10-12 lakh while a foreign education costs about Rs 25 lakh per year. Thankfully, one can avail of education loans to provide the best education to our kids.

Even if one has assets or savings that can be liquidated for the purpose of funding the education, experts believe it is better to opt for an education loan instead. "Unless you have some 'extra money', one should opt for an education loan as it has multiple benefits,'' says Neeraj Saxena, chief executive officer (CEO), Avanse, which is a joint venture between DHFL and IFC Washington. Avanse has a loan portfolio of over Rs 530 crore as of March 31, 2016.

Many parents believe in self-financing the education needs of their children. "The only advantage of self-financing a child's education is that you do not take on a liability. However, the disadvantages outweigh the advantage," says Yogita Dand, financial planner.

To raise the resources for self-financing, most parents raise funds through personal or friendly loans or they tend to dip into their retirement savings or sell off their assets to finance their child's education. "There have been cases where parents have even sold off their own houses to fund their child's education,'' points out Dand.

Education loans are advantageous as they offer tax breaks. "Interest paid on repayment of the education loan is allowed as a deduction without any limit under section 80E of the income tax act for 8 years,'' says Arnav Pandya, financial planner.

"In case of self-financing, fees are usually paid in lump-sum for the year/ semester. An education loan eases off that burden through the option of repayment in easy EMIs which start post the course completion,'' says Ajay Bohora, co-founder, MD & CEO of Credila, a subsidiary of HDFC Ltd. Credila has disbursed over Rs 3,400 crore of education loans, as on March 31, 2016.

Although most education loans come with a moratorium period (when one need not pay any interest on the loan), Saxena advises parents to pay the simple interest on the amounts disbursed right from day one.

"It is not that the bank or financial institution is not charging you interest for this period. Instead your interest gets capitalised and you end up paying EMIs on a higher amount at the end of the moratorium period,'' points out Saxena.

The average rate of interest for an education loan today is anywhere between 10.50% to 14%, depending on multiple factors like the student's academic profile, course, institute co-borrower's profile, etc.

"For instance, for students going to the USA for degrees in fields related to STEM (science, technology, engineering and maths) with a GRE score of over 300, Avanse has a special product wherein the students do not need to provide any collateral for loans up to Rs 25 lakh. Generally, for all applicants, we look at collateral in the form of mortgage of property,'' says Saxena.

"An education loan also helps you create a back-up for any unforeseen increase in cost, including an increase in cost due to potential depreciation of the currency,'' says Bohora.

An intangible benefit of an education loan is that it actually helps the child to learn the value of money. "Many parents, despite having the funds, still opt for an educational loan, just so that children become more responsible and independent,'' says Saxena.

Nowadays, many students plan to study overseas but the living cost often is as much as the tuition fee. Most people also worry if it is worthwhile to spend such a big amount? Yes, an overseas education from a good institute does pay off in the long run. HR professional Anukruti Khadilkar says, "A degree from a foreign university is definitely a great advantage when compared to a degree from smaller Indian institutions since employers prefer to hire candidates who have completed a degree abroad with relevant academic scores over a student who has completed the same degree and has similar work experience in India. Besides, an international degree also offers a good head start in terms of a better pay package.''

Source: https://educationloansinindia.wordpress.com/2016/06/03/worrying-about-funding-your-dream-education-loan-scores-over-self-financing/

International Student Loans

The International Student Loan Center provides international students and study abroad students with access to a range of loan products to help fund their education abroad. Get started by finding your student loan in just 10 seconds.

Education Loan in India

Education Loan in India 

4 Steps To Find Your Student Loan

Find Student Loans. To compare loans, the first step is to use our comparison tool above. Select the college you will be attending and the amount of money you need to borrow. You can then see the loans that meet your criteria.

Select Your Student Loan. Next, see what lenders are available at your school. Compare the terms and conditions and click apply to start the online application.

Fill Out Your Application. Complete the loan application for the lender. If you are a non-US citizen or non-US permanent resident, you will need to have a cosigner complete the online application as well. US students are also encouraged to have a cosigner.

Get Approval. Initial approval is often within days or weeks of your completed application. Funds from your loan will be disbursed by your school once it has been approved.

Examining Your Student Loan

When you are comparing private student loans, it’s important to consider any fees, rates, and repayment options to ensure that you are choosing the loan that works best for your needs. You should evaluate and compare the following:

Monthly payments

Total cost of the loan

Annual percentage rate

Repayment period

Deferment option

Cosigners

All non-US citizens and permanent residents will be required to have a cosigner with good credit who has lived in the US for the past two years. International students will be required to include their cosigner on their application.

US citizens and permanent residents are not required to have a cosigner for their loan application, however a US cosigner can:

Increase the likelihood of getting approved for their student loan

Reduce the interest rate students are required to pay

Types of Student Loans

There are many student loans designed for students studying outside their home country. Our US student loans are available for non-US students coming to the US as well as US students studying in a foreign country. For more information about the particular student loan products, please see below:

Student Loans for International Students

The International Student Loan Program is available to international students from around the world who are looking to study in the USA. You have to be attending one of the approved schools and you must also have a US citizen or US permanent resident to cosign the loan with you. International Student Loan offers funding that is disbursed directly to you with competitive interest rates and no application fees!

Student Loan in India for Study Abroad

A Study Abroad Loan provides funding to US citizens who are looking to participate in a study abroad program outside of the USA. To be eligible, students need to be attending and earning credit at an approved school in the USA. Your US school will disburse the funds directly to you prior to departing for your host country.

Student Loan for Canadian Citizens

For Canadian students studying or planning to study in the USA, we offer the Canadian Student Loan. Students applying for the Canadian Student Loan will require a US citizen or permanent resident cosigner. Student loan applications can be done right online and your US school will disburse funds upon arrival and the start of your semester.

Student Loans for US Citizens Foreign Enrolled

The Foreign Enrolled Loan program provides US citizens with funding for their education when they plan to enroll directly in a degree program abroad. This is a private, alternative loan that offers high loan limits to cover the cost of school abroad, so borrowers can apply for up to the total cost of attendance minus any other aid received.

Source: https://educationloansinindia.wordpress.com/2016/06/02/international-student-loans/