How to prevent your education loan from taking over your life
Over the last few decades, education has become a priority for most of the upcoming youth. Many of these individuals are aiming for education levels that go beyond the standard college degree. Some individuals have even contemplated pursuing degrees and higher educational levels abroad.
However, such educational degrees come at a price, especially if the said degree is an international one. But rather than losing out on such an opportunity, many individuals finance their education through the means of an education loan. However, lack of well-paying jobs, recession and demand for local workforce has often affected loan owners, who are looking for means to repay back the borrowed funds. After all, lack of income leads to lack of repayment. So how can you avoid a potential debt in your life while ensuring that you get an opportunity for the highest education? Here are a few steps you can follow:
Before you borrow
While the best way to avoid a potential debt is to avoid borrowing in the first place. This can be an impossible situation if you are seeking a high international educational degree with the help of education loan in India. So instead, you can ensure that you follow certain steps before you apply for the loan. They include:
Get a complete picture of your education goal: The reason why colleges and higher education might seem expensive, is the fact that half of the students graduate at the end of theterm. Most of these individuals either drop out, flunk out, or even switch their majors. Some even drop out midway because they get a job opportunity, only get stuck on the corporate ladder due to lack of a higher educational degree. To avoid this potential situation, you will need to focus on your education goal. This will help you understand what the potential financial expenditures are, in order to attain the position you want in your targeted industry
Take a year off: Taking a year between your college and earning your masters or PHD will go a long way to assist you in planning your future. This year can be used to explore alternate career options or earn a down payment for your education loan.
After you borrow
Once you have borrowed funds through the education loan in India, here are a few factors you can follow:
* Create a post-college budget
If you are going to borrow, you need to be aware of what you owe, how much you owe, and the time it will take to repay the funds. Calculate the monthly cost of your loan payment while you are still studying, so that you are aware of how much of a budget you will need to follow when you start earning to pay off the loan.
* Prioritise your repayment
As you start earning, it is important that you focus on prioritising your repayment. Ensure that you have sufficient funds to save, for your monthly requirements while paying off your loan at the same time. As far as possible, avoid taking on additional debts till you have paid off your loan considerably.