An education loan is a sum of money borrowed to finance post-secondary education or higher education-related expenses. Education loans are intended to cover the cost of tuition, books and supplies, and living expenses while the borrower is in the process of pursuing a degree. Payments are often deferred while students are in college and, depending on the lender, for an additional six-month period after earning a degree. This deferment period is also referred to as a "grace period.

Types Of Education Loan

Although there are a variety of education loans, they can be broken down generally into two basic types: federal loans (sponsored by the federal government) and private loans

Federal Loans

• Federal Student Loans: Sponsored by the government, obtained through the FAFSA without a credit check.
• FAFSA Application: Completing the FAFSA helps determine eligibility and the amount based on school costs.
• Loan Types: Includes direct subsidized, direct unsubsidized, and direct consolidation loans.
• Disbursement: Funds are sent to the school; surplus funds might be issued to the student for other expenses.
• Interest Coverage: Subsidized loans cover interest while in school; unsubsidized loans defer interest during enrollment and good academic standing.

Private Loans

• Supplemental to Federal Aid: Students might consider private loans if federal aid isn't enough, suggested sometimes in federal loan packages.
• Types of Private Loans: Include those from private lenders, state-related nonprofits, and institutional loans from schools.
• Application Process: Typically involves a standard private-sector loan application, which often requires a credit check.
• Direct Application: Borrowers apply directly to private lenders, and the loan amount is influenced by the attending school.
• Disbursement: Funds initially cover school expenses; any surplus is sent directly to the borrower for educational costs.

Benefits Of Education Loan

• Low Interest Rates: Study loans often offer lower interest rates, especially from public sector banks, with potential government subsidies for underprivileged backgrounds.
• Easy Availability: Accessible from various sources including banks (public and private), NBFCs, and organizations offering simplified processes.
• Flexible Repayment: Banks often provide flexible repayment options, considering future earnings, making it easier for students to repay after securing employment.
• Tax Benefits: Interest paid on education loans is tax deductible under Section 80E of the Income Tax Act, offering financial relief during the repayment phase.
• Promoting Self-Responsibility: Encourages self-dependence by easing the financial burden on parents and instilling commitment to studies by investing in their education through a loan.

Why Choose Aadeeshwara ?

• Quick Approval: Streamlined processes for faster approval, ensuring timely access to funds for education expenses.
• Transparent Practices: We prioritizes transparency in loan terms, ensuring clarity about conditions and repayment schedules.
• Expert Guidance: Professional guidance and support throughout the loan application process for students and their families.
• Customized Solutions: Personalized loan solutions to cater to specific educational requirements and eligibility criteria.
• Accessibility: We extends education loan solutions to various student segments, ensuring accessibility to education financing.