Education Loan and Their Benefits

Education Loans or Student Loans or College Student Loans are designed to help a student, who aspires to enroll for higher studies in an institute, by paying all the education expenses on behalf of him/her. These expanses may include tuition fee,

hostel fee, fee for book, food, uniforms, etc. For those, who are, just not lucky enough to get any kind of scholarships, student loan is the best way to pursue higher studies in any domestic and international universities or educational institutions. In India, education loan was first started by SBI in 1995.


Almost all the Public and Private banks offer various College Student Loans and run educational finance schemes for higher studies in international universities, which can be utilized by any student on easy terms. Once you show that you have secured admission in any nominated university or school, any bank would be more than happy to loan you for your studies.

Investing on a student, whose future is bright, is considered a good move for the banks as they make a good return. On the other hand, Student Loans are a boon for students, who have secured admission in some of the nominated institutions of the world and wish to fly high with their dreams.


Some of the advantages of an Education Loans Easy and Simple: Student Loan is very simple to apply for. If you have successfully passed the entrance test and secured admission in any nominated university, college or institute in India or abroad, any bank would love to finance you.

You just need to submit your admission letter to the bank and complete few other formalities. The bank would directly transfer the entire amount for your tuition fee, hostel fee, fee for books, meals, travelling, etc to the concerned college or institutes.

Easy Repayment: Once you complete your course, banks give you enough time, which may be up to two years, to start the repayment procedures. One to two years, is a good time to search for jobs and you can pay back to bank own your own. This is the best thing about Education Loan. You don't need to depend on your parents to repay the money.

Tax Benefits: Under 80(e) of the Indian income tax act, there are some tax benefits, which you can enjoy while repaying the loan. Under this section, you can get deduction for the interest, you pay to the bank.

by Sakshi Verma

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Financial Institution Loans

If you need loans for education, because you're going to college, university, or some other form of school, you may well want to consider private loans from financial institutions. Student loans from financial institutions are very flexible, have competitive rates, and can be used for a wide variety of school related expenses. Even if you do not qualify for US Department of Education federal loan, you will generally qualify for some form of loan from financial institutions offering student loans. Plus, if your federal loan does not fully cover your school costs, loans such as the Great Lakes education loans can provide you with a loan that will make up the difference.

Great Lakes Educational Loan Services Inc
Great Lakes Higher Education Corp. and affiliates have been in business for almost four decades. During this time, Great Lakes student loans have helped millions of students borrow enough money to pursue higher education. Great Lakes Higher Education Corporation act as a guarantor and servicer of educational loans. Most loans from this organization are targeted towards college and university students. Through their web site, mygreatlakes.com, Great Lakes offers students the ability to learn about loans, manage their loans, and get additional information.

ACS Student Loans
Affiliate Computer Services (ACS) has offered loans to millions of students. In addition to helping students apply for PLUS loans and other forms of federal loans, ACS also offers consolidation services and tax relief for those students who find their student debts overwhelming. Through their web site, acs-education.com/bac/genl/Home.html, ACS allows borrowers to manage their loans, consolidate their student loans, and to pay their debts. The web site even allows students to apply for loans quickly online. ACS education loans are popular primarily because they offer college and university students such a simple application procedure and such no hassle loan management options.

ACS was previously known as AFSA Data Corporation (Academic Financial Services Association). The company is known as one of the largest servicers of education loans. The company has more than 800 clients (including universities, colleges, and financial institutions) across the country. ACS handles more than 5 million loan accounts and oversees loans totaling more than $31 million. With 1400 employees dedicated specifically to student loans, and service centers in California, New York, and Illinois, ACS is considered by many students to be one of the most reliable services for student loans.

ACS has a number of divisions or departments. The Federal Family Education Loan Division offers educational loan servicing for secondary markets and banks and financial institutions. The Direct Loan Division is the only education loan service or that services the Federal direct student loan program with approval by the US Department of Education. The Campus-Based Division offers financial services and administration for student loans to colleges and universities.

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Get a Personal Loan Online

Many people are now opting for a personal loan as the best solution to most of their financial needs as this has very few requirements and you don't have to explain your reason of borrowing to the lender. You can use a personal loan for some financial needs like paying for education fees, settling some owing bills, financing home improvements or even for some urgent needs like paying for health bills or an urgent business trip.

How to get a personal loan

You can get a personal loan either from a local lender or from an online lender depending on the one you find more convenient. To apply locally, the applicant has to visit the lender in person where the deal is negotiated and then they have to agree on the method on which the funds will be availed. This can take some time before the funds are processed and can be quite tedious since local lending usually involves a lot of paperwork and documentation.

Online application is easier and this is very convenient since most people now have access to the internet. To get a personal loan online, the applicant needs to first find the lenders who can offer him such and a quick online search which give a number of them. The best lender should have:

• Relatively lower interest rates
• Loan amount that will fully satisfy your needs
• Flexible terms and conditions
• A website with high encryption

If you meet all the requirements put by the lender for the type of personal loan that you applied for, the cash is transferred to your account through wire transfer. With online application, the funds are processed pretty fast and you can even have the funds on the same day of application.

Playing safe during application

No matter how fast you may want to get a personal loan, it is good to take time to go through all the loan documents and ensure that everything in them is clear. The applicant should confirm anything unclear with the lender especially when it comes to repayments and penalties. If you are uncomfortable with anything in the loan documents, it's better to look for another lender.

To easily get a personal loan, one should always maintain high credit scores by making loan repayments in time and as agreed. If you have poor credit scores, you can convince the lender to offer you the funds by pledging some collateral as security on the amount that you want. Having high scores and offering some valuable terms can also get the applicant better terms and lower interest rates.

by Farold Haefen

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