Planning Higher Education Finances with a Student Loan Calculator
Higher education is a practical way to expand your existing knowledge and skill set. It can help you grow as a person and a professional. This, in turn, can set you on the path of creating your mark in the world.
Higher education, whether in India or abroad, involves a significant cost. However, you need not worry about the financing, as applying for an Education Loan makes it possible and manageable.
There are several things you must do when planning to apply for an Education Loan. One of them is financing planning.
Financing planning ensures a hassle-free Loan process, allowing you to focus on your studies without any financial stress.
The Student Loan Calculator is an incredible financial tool that helps you plan your education finances. This blog explains how.
Student Loan Calculator overview:
A Student Loan Calculator, also known as the Student Loan EMI calculator, is an online tool that offers an estimate of the payable EMI.
All you need to do is enter the Loan amount, interest rate, and tenure in the calculator. Besides the EMI, the calculator offers a breakup of the total Loan amount (Principal + interest).
You can access the Student Loan calculator on almost any leading banking and financial institution website or mobile app. The calculator access is free and unlimited.
Planning higher education finances with a Student Loan EMI calculator:
Compare bank offers:
Almost all banks and financial institutions offer Student Loans. As a result, each of their Loan offers may differ in terms of Loan amount and interest rate.
Therefore, comparison is crucial to identify and opt for the most suitable Loan offer. A Student Loan EMI calculator helps you do this. Let’s consider an example to understand this.
- Suppose you have two Student Loan offers in front of you.
- One offers a significant Loan amount at a competitive interest rate.
- The other one also offers a decent Loan amount, but at a higher interest rate.
- You enter the Loan variables of both offers in the Student Loan calculator.
- This helps you know the offers’ overall cost and EMI.
- Based on this information, you can identify the offer with a Loan offer that best meets your requirements and fits comfortably within your affordability.
Understand the total cost:
Like any other credit facility, when you take a Student Loan, the interest component is important as it impacts the total Loan cost. Higher interest leads to significant Loan cost and vice-versa.
Since you need to pay from your pocket, you must be aware of the interest component and consider its manageability beforehand.
Using the Student Loan calculator is helpful here. It provides a breakdown of the total Loan amount, giving you a clear idea of the Education Loan Interest.
Based on this, you can decide whether paying the interest rate is worth it and if it fits in with your financial capacity.
Plan repayment:
A Student Loan is a significant financial commitment. Repayment delays and defaults hinder the repayment process and negatively impact your credit score.
It also causes financial stress that can take a toll on you. Hence, you should avoid them at all costs. Planning the Loan repayment often helps prevent the occurrence of such issues.
The Student Loan calculator is useful for repayment planning. As mentioned, it provides an estimate of the EMI.
This ensures you are aware of the funds you have and set aside the funds required for repayment.
Furthermore, the EMI results are also accompanied by an amortisation schedule. It enables you to track the timeline and payable amount for every month of the tenure.
Summing It Up
Student Loan makes your dream of higher education realisable. It offers a significant Loan amount at a competitive interest rate with a feasible repayment system.
Before applying for a Student Loan, consider using the Student Loan EMI calculator. It provides an estimate of the payable EMI and a total breakup of the Loan amount.
This information helps you effectively plan out your higher education finances.
