The Importance Of Education Loan Calculator

1. Education loan calculator can be found on most lender websites. However, most often than not, they are tucked away in a corner somewhere and only a few students end-up using these innovative tools before they apply or during their repayment. Some students don’t even know these tools exist.

However, these calculators are actually super useful and could make your journey through and out of debt much easier. That’s why this article will give you a brief understanding of these tools so you can make the best use of them when dealing with your education loan.

So what are education loan calculators?

Well, they are simple online tools that make education loan related calculations easy and quick. Without them, you’d have to spend a good amount of time exercising your cerebral cortex (the part of the brain responsible for calculations) or put your excel skills to the ultimate test.

These calculators are of three types - the EMI calculator, the education loan eligibility calculator and the repayment calculator. EMI calculators provide you a comprehensive break-up of your loan’s repayment schedule, right from the first EMI payable to the last EMI of your student loan.

They also help you understand your loan affordability - if the EMI amount is too high it means you cannot afford to borrow the loan amount you’ve input into the calculator. However, you could keep reducing the loan amount you feed into the calculator until the EMI amount provided is within your financial reach.

They also help you create full-proof repayment plans, even before applying for the loan. You can figure out what expenses you’ll have to cut down on in order to accommodate the EMI amount provided by the calculator.

Eligibility calculators tell you the ball park loan amount you are eligible for in seconds based on your monthly income, outgoings and interest rate. Armed with this information, you can apply for the correct loan amount and avoid rejections and wasted processing fees associated with applying for a loan amount beyond your eligibility. Considering that the processing fee for student loan is usually around 1 or 2 percent of the loan amount, it makes sense to use one of these calculators before applying.

The last education loan calculator is the repayment calculator. This tool helps you plan ways to repay your loan before the due date and tell you just how much interest amount you can save on by doing so.

Put together, these tools can help you form a strong base to your application & repayment plans.

Education loan calculator are free to use. You don’t have to pay money to avail the services of such a tool, neither do you have to subscribe to a newsletter or provide personal information.

They are also very easy to locate, a simple Google search for ‘student loan calculators’ should fetch you a number of aggregator and lender websites that should have these helpful tools. They are also super quick and provide you answers before you have time to blink. So if you are going for a student loan, remember to use an education loan calculator before taking any further steps.

Good luck and all the best!

An personal loan would be the first financial help for your family in your absence.