5 tips you can use to repay Education loans with complete ease.

Opting for a student loan to give wings to your further educations plans is a great decision. However, after you graduate and get that degree you’ve always dreamt off, paying off your education loan becomes the next most important concern.

Repaying your educational loan demands discipline, patience, strategic planning and many sacrifices. But aside from saving on your expenses, there are quite a few excellent ways to repay your student loan with ease and this article will highlight a few of them.

1. Save for a down-payment before applying for Education loans.

This tip is useful if you haven’t already applied for the loan. Though most lenders will not require you to pay any margin money, it’s better to do so if you can. The larger the down-payment, the smaller the loan amount you need to borrow and the lower the amount of interest you have to pay on the loan.

2. Get a part-time job.

Getting a part-time job during the course of your education will help you save loads of money. These savings can be used like a buffer when the repayments begin and provide you some extra time to find a good job.

3. Consider paying the interest rate during the moratorium period.

Sure, an education loan doesn’t require you to make any payments until you find a job or finish your course, whichever comes first. However, your lender will still calculate simple interest on your loan amount for every year of the moratorium period and add it to the principal amount. But, you can choose to pay this interest amount during the moratorium period to avoid building your principal amount.

What’s more is that, most lenders will offer you a concessional rate of interest should you choose to service the interest during the moratorium period.

4. Consider refinancing Educational Loan

Refinance is a procedure wherein you transfer the outstanding balance from your current lender to a new lender. In most cases, the lender will provide you lowered interest rates that should by itself afford you easier repayments in the form of smaller EMIS. Some lenders take it step further by providing you extended tenures which will again help reduce your EMIs.

5. Prepay Education loans.

Another great way to ease your repayment is to make prepayments. Over the course of your student loan tenures, you are sure to receive a raise, a bonus or a promotion even. You can use this increase in your disposable income to either pay higher EMIs or make prepayments. This will shorten your loan tenures along with decrease the amount of interest payable on your education loan.

Repaying study loans is easy if you use these tips. Remember to exercise discipline while paying back your loan, cut down on unnecessary expenses and direct as much as you can towards your loan repayment. Also, if it is possible, consult a financial expert and look for more ways to reduce the burden of your repayment.

Good luck and all the best with your education!

Hi, I am Anaya shroff is working with Education loan comapny as adviser owing good knowledge of loans policies such as study loan, study in usa,, overseas education loan so on.