Scholarships vs education loans: what is the ideal choice?
The primary reason why we opt for higher education is the very fact that it offers us better job prospects along with a better pay. Just limiting yourself to the undergrads degrees in today’s time is not an option. Lakhs of students pass out with those minimum undergrad degrees and end up into the profiles and packages they never wanted. Getting higher education places you into the top companies and organizations in the country and you are offered your desired salary package.
Problem while going for higher education
But things are not that easy when it comes to getting higher education in India. It so happens that most of the gifted students are not economically capable of arranging the expenses involved in the admission procedure, course fee and tuition fees and such others. Some students who belong to the minority groups manage only till the undergraduate level and stumble when willing to get higher education as it is so expensive, due to sky high education loam interest.
Problem with loan for higher education
So ideally in such a scenario they either have to manage an education loan or a scholarship. But even here most of them can’t think of availing an education loan, the latter being expensive as well. Most of the banks offer education loan interest which is too high to be afforded by the not so economically well off yet meritorious students.
The major disadvantage of an education loan is the rate of interest. The education loam interest is often too high. When a loan from any financial institute is credited to you, you need to pay back the loan amount that includes an additional interest rate to the original principal. In addition to this, the tenure of repayment can remain between 5 to 10 years. This compels you to remain stuck with the repay formalities for a period more than the period of your higher education’s academic session.
Solution remains in scholarships
What comes as the ultimate solution is the interest free education loan. When we are talking about interest free education loan, we talk about the various scholarships available for the meritorious students. Obtaining a scholarship is far easier than getting your loan for higher education being sanctioned. All you need to do here is maintain high grades throughout your academic sessions, and keep the certificates and mark sheets available. The best part of scholarships is that you earn them in lieu of years of hard work for academic excellence and you never really need to pay back the scholarship amount. It gets granted to you considering your academic merit and that too without any further condition of paying it back.
Scholarships are great add-ons to your resume. With the help of a scholarship you are not only educated under some of the premier educational institutes but you also earn some sort of weightage to your career.