Education Loan in India and Their Benefits

Money should not be a hindrance for a student when he or she is interested to go for higher studies. However, in a poor country like India, money is always a big problem for most of the students. As a result of this, a lot of talented but poor students do not get opportunity to study as much as they want. In such a scenario Education Loan Indialooks like a blessing for them.

Easy Terms and Conditions:

Now it is extremely easy to take education loans as the terms and conditions associated with it have been simplified a lot. Now, almost all the students from any financial condition can apply for the loans. Almost all the reputed banks are encouraging the numerous students for higher studies by providing the education loan in various ways.

It is now very much easy for the student to go through the websites of the various banks for applying these loans. Often the students remain tensed with the high interest rates of any loan. However, in case of education loan they don't need to worry about it. The interest rate is extremely low in this case. So, any student can apply it without any hesitation.

Providing money to the institutions:

When you apply for the course in a particular university, the banks pays the registration fees of the university. They also give the tuition fees and the other necessary requirements. So, after applying for the loan, you don't need to worry about the financial matters related to your study.

You can give your full concentration in your study and eventually can make better result which will be helpful towards your better career. Education loans from the various nationalized and private banks are applicable mainly for higher studies which indicate that the student who will complete the course will get a respectable job by the help of which he or she will be able to repay the loan at right time without any problem.

Criteria:

Well, there are no such strict criteria which you have to maintain for getting these kinds of Education Loan In India. You have to go through the policies of taking a loan from a particular bank in their official website. Generally, the guardian of the student has to produce a proof of his financial status. The medical report of the student has also to be given to the banks. So, the criteria for applying this kind of loan are not very stringent. As a result of this now a lot of poor but talented students are getting the best opportunity to fulfill their dream of higher studies and they are establishing themselves in a respectable position. There is no doubt about the fact that these loans are encouraging more and more students for getting higher studies which is extremely beneficial for the future of any country.

Now, most of the reputed banks in all over the world offer the students some lucrative education loan options which will help the students to study as much as they want. They will be successful to establish themselves in respectable career options easily.

Source:[https://goo.gl/YZgTXZ]

5 Celebrities Who Struggled With Students Loans

When you have student loans, it’s easy to feel overwhelmed and alone with your debt. Watching friends live in luxury apartments and eat out every night can make you feel like you’re the only person struggling with loans.

But you are far from alone — even the rich and famous have struggled with student loans. Some celebrities still have student loans today that they have not paid off.

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5 Celebrities Who Struggled With Student Loans

Kat Tretina

Kat Tretina

Updated on December 23, 2016

celebrities with student loans

When you have student loans, it’s easy to feel overwhelmed and alone with your debt. Watching friends live in luxury apartments and eat out every night can make you feel like you’re the only person struggling with loans.

But you are far from alone — even the rich and famous have struggled with student loans. Some celebrities still have student loans today that they have not paid off.

1. President Barack Obama

Becoming President of the United States is not cheap. Barack Obama went to Occidental College, Columbia University, and got his law degree at Harvard Law School.

In a 2013 speech, Obama said he graduated with a mountain of student loan debt. Despite his stellar education, it took years for him to pay off his loans. In fact, he didn’t finish paying back his loans until he was in his 40s, just before he was elected to the U.S. Senate.

Obama noted that he should have been saving for his daughters’ educations by that time, but his loans prevented that. And while that must have been a difficult choice, paying down your own debt before saving money for your children is a smart financial decision for the long-term.

2. Cecil Shorts

Cecil Shorts is a wide receiver for the Tampa Bay Buccaneers in the NFL and was first drafted in 2011.

In 2013, people were shocked when Shorts signed a four-year, $2.6 million contract. Not because of the deal, but because Shorts revealed he was still paying off a large amount of student loan debt.

Unlike many NFL players, Shorts did not get an athletic scholarship in school. Though he worked part-time jobs while he studied physical education, he took out over $70,000 in student loans to pay for his tuition and expenses. As of 2013, he still had about $30,000 left to pay.

Shorts stressed the importance of working while in school to minimize debt. He recalled that while other players would go out, he would work odd jobs like cutting lawns or landscaping to make extra money. That helped prevent him from taking on even more debt.

3. Miles Teller

Miles Teller is an actor who has starred in movies like Fantastic Four and the Divergent series, but he is also still paying six figures of student loan debt from his time at New York University.

He went to school to study acting and racked up $100,000 in loans. In his senior year, he got his break and moved to Los Angeles to film his first movie.

However, despite his success, he still has not paid off his debt. In an interview with Vulture, Teller said his business manager told him that interest on his debt is so low, it makes no sense to pay them off earlier.

While that decision might work for Teller since he has multi-million dollar movie contracts, for most people it makes sense to pay off your debt as quickly as possible.

If you can’t decide if it’s better to pay off your loans or invest your money, check out this payoff versus invest calculator to help you make an informed decision.

4. Kate Walsh

While you may know her from the hit show Grey’s Anatomy, Kate Walsh struggled financially early on.

Before beginning her career as a model and actress, she worked at Burger King and Dairy Queen. Later, she attended the University of Arizona.

In an interview with Refinery29, Walsh stressed how difficult it was to handle her debt.

“I am a person who came out of college with, oh, jeez, just thousands and thousands and thousands of dollars in debt. And the only way I was, honestly, able to pay off my student loans was at age 37, because I happened to get on a big, fat TV show called Grey’s Anatomy, and I was able to finally pay my student loan debt. And that’s insane — it was just interest accruing and accruing and accruing,” said Walsh.

Because of her experience with student loans, Walsh campaigned to encourage people to get out and vote in the most recent election. She cited student debt as one of the issues she’s most passionate about.

5. Kerry Washington

If your favorite show is Scandal, take comfort in knowing that Olivia Pope understands your student loan woes. In fact, Kerry Washington didn’t finish paying off her debt until she was cast in that iconic role.

In a speech she gave at the Democratic National Convention in 2012, Washington emphasized where she came from and how student loans made education possible for her.

“I’m here not just as an actress but as a woman, as an African-American, a granddaughter of Ellis Island immigrants, a person who could not have afforded college without the help of student loans,” said Washington.

What their stories mean for you

While you may not have the salary of the celebrities on this list, you can still learn from their experiences. All of them struggled with students loan and managed their debt differently. While some still have not paid them off, others scrimped and saved to pay them off before they even made it big.

Diligently applying even small amounts to your loan balance can help you pay your debt off faster and save thousands in interest. For more information on different strategies of paying off your loans, learn about the

Source:[https://studentloanhero.com/featured/5-celebrities-struggled-student-loans/]

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Education Loans to students will help expand facilities & improve quality of institutions

The launch of the Education Loan Guarantee Scheme by the Delhi government to enable students of all universities, colleges, technical institutes, skill centres, polytechnics and ITI’s in the national capital to get an Higher Education Loan is a game changer that other states should adopt. Students preparing for courses like CA, ICWA or CFA and even those doing skill development courses specified by the Delhi government can also avail of the Higher Education Loan.

For the first time in the country a state government will provide a guarantee for all student loans up to Rs 10 lakh irrespective of the social or economic background. The scheme will also ensure that the students do not have to provide any collateral or margin money to the banks. The only condition is that the student should have done their education in Delhi and are studying in institutions whose fees are regulated by the government.

To meet the costs of the scheme the state government has set up a Higher Education and Skill Development Credit Guarantee Fund (HESDCGF) for providing guarantees to the banks against any default on these Higher Education Loans. It will have an initial corpus of Rs 30 crore and will also collect an annual guarantee fee of 0.5% of the outstanding amount of the loan from the banks each year.

In case of default by the students the HESDCGF will initially settle 75% of the claims of the bank after the initiation of the recovery proceedings and the remaining 25% will be settled after ascertaining the final loss of the bank at the end of the recovery process. The threat of defaults are to be minimized by making the parents or the legal guardian’s joint borrowers of the Higher Education Loan along with the student.  A default will also negatively impact the credit rating of the student and parents.

The Higher Education Loan would be available not only to students of government owned institutions but also to the private or self-financing institutions which have been a minimum grade of A+, A or B from either the National Assessment and Accreditation Council (NAAC), National Board of Accreditation (NBA) or the State Fee Regulatory Committee (SFRC).

Banks will be allowed to charge a maximum simple interest rate of Base rate plus 2%. Application for loans is to be made simpler by receiving them in online and ensuring sanction for eligible loans in 15 days. Rejection of individual loans is to be intimated the higher education department of the Delhi government.

The repayment holiday of the Higher Education Loan will extend up to one year after the completion of the course and will have to be paid in fixed equal monthly installments over a period of 15 years. Banks are to also allow for telescoping of repayments with the size of installments going up in the later years. Students availing of educations loans are also to given life insurance cover.

This Higher Education Loan facility worked out by the Delhi government will be a game changer in the annals of higher education and could help boost both the quantity and quality of the higher education infrastructure. This is because the liberal education loans will increase manifold the number of students taking up higher education.

The competition among educational institutions to attract more students and the government stipulations for securing accreditation by educational institutions providing admission to students availing Higher Education Loans will ensure improvements in quality of education. The educational intuitions would also be forced to improve the course content in tune with market needs to ensure employability of the students.

By liberally expanding the Higher Education Loan scheme the Delhi government has wisely chosen to follow the approach most popular with the governments in advanced economies. This would help expand Higher Education Loans as an important market to the banks like in the US where the outstanding Higher Education Loans of more than $ 1.3 trillion makes it the largest form of household debt next only to mortgages.

The liberal Higher Education Loan of the Delhi government, the risks of which are borne by the government, is in line with the practices in advanced countries like Australia, Canada, Denmark, England, France, Germany, Japan, Sweden and United States where the funds are provided by the government to improve student access to higher education. The shifting the burden of losses from the banks to the government is a landmark move which will give a big boost to higher education and help roll out important national programs like the Make in India initiative and also build a new knowledge economy in tune with the needs of changing times.

Source:[https://goo.gl/bGgYSf]

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