Why every student must use education loan calculator before applying.

Education loan calculators are one the easiest ways for students to plan their loan application & repayment decisions. However, very few aspirants actually use these tools. This is mostly due to the lack of awareness regarding these online calculators. To change this and help you students with their preparation for a study loan, the following article will tell you what these calculators are and why you should use them.

So what are education loan calculators?

They are simply online calculators backed by complex and powerful algorithms. The 3 most common student loan calculators are EMI calculators, Eligibility Calculator & Repayment Calculators. Their names are pretty self-explanatory and tell you exactly what they help you calculator. So let’s look at each one of them and see why every student must use them before making that signature on the dotted line of the loan application form.

Eligibility Calculators:

As the name suggests, these education loan calculators help you compute the loan amount you are eligible for. You have to simply provide the calculator with your monthly income and obligations along with some other details such as the interest rate of your student loan. Then, you hit enter and site back. Within seconds, the tool will display a loan amount you are eligible for.

Without knowing this loan amount, two things could happen. The first is that you apply for a loan amount that’s below what you are eligible for. This means, you will have to put more money from your own pocket. Though this is best avoided, it’s still okay when compared to the second thing that could happen – your loan gets rejected. If that were to happens, your processing fee would also go down the drain as this is a non-refundable amount. So you won’t get it back even if your application gets rejected.

EMI calculator:

This is one of the most important education loan calculators. It calculated each every installment you need to pay as part of your loan’s repayment process. This information will help you build the framework of your repayment process. You will be able to adjust your income and your expenses to create space for your home loan EMIs. You can plan way in advance and take more time to figure out things by using this tool before you apply for the loan.

Repayment calculator:

If you’re thinking of ways to prepay the loan and save on the total interest payable, this education loan calculator is a must use for you. It will help you approximate the savings of paying before the due date. You can calculate the effect of increased EMI amounts or lump sum payments and see which is better to prepay the loan amount.

These were three of the most important education loan calculators available today. We hope this article has shed enough light on what they do for you and how they can help you if you’re planning to apply for a student loan. Good luck with your borrowing decisions, good luck and all the best. Study hard!

I'm a professional blogger. I have been blogging since 8 years about Education Loan