Student Loans in India : The Truth About Student Loans

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Student Loans in India
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The Truth About Student Loans
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• We all love True or False questions! You have a
  50/50 chance at getting the question correct,
  dont you? But what if someone could help you
  improve your chances beyond the flip of a coin?
  What if we could remove 50 of your doubt on
  questions around an important topic like Student
  Loans? Join us on a little journey as we debunk
  myths and answer questions that many MBA students
  encounter as they look to fund their programs.
  Lets do it!

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• 1. True or False I can get a loan for tuition
  AND living expenses.
• TRUE. You can borrow funds for tuition, fees
  and living expenses up to the school approved
  Cost of Attendance budget. Be sure to check with
  the school for any budget appeals as all loans in
  the US must be certified and approved by the
  school.
• 2. True or False I need to show assets to secure
  a loan.
• FALSE. Many lenders will offer loans to
  students with a co-signer or with the school as
  the guarantor. Some newer and innovative
  peer-to-peer lenders will assess students on
  their future potential and not require any
  collateral or co-signors.

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• 3. True or False Interest rate is the only thing
  that I should look for in a loan offer.
• FALSE. While interest rate is a very
  important component of the loan offer that will
  determine your monthly payments, students must
  consider all fees and interest accruals when
  comparing offers. Most lenders will be required
  to share the APR (annual percentage rate), which
  will provide the effect of all costs of
  financing.
• 4. True or False I must notify my school that I
  am taking a loan.
• TRUE. In the US, students must complete a
  Financial Aid form with their school, confirming
  any loans or financial aid that they will be
  using to fulfill their program budget.

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• 5. True or False I can get all of the money
  upfront.
• FALSE.All US schools require that the
  loan proceeds are disbursed according to the
  school schedule and will often split the funds
  evenly over the program terms. Please contact the
  schools financial aid office for any special
  arrangements.
• 6. True or False The length of the loans term
  and the loans total interest cost have an
  inverse relationship.
• TRUE. While a loan with a longer term (i.e.
  20 years vs. 10 years) will provide the borrower
  with more flexibility and lower monthly payments,
  the total interest cost over the life of the loan
  will be significantly greater than a shorter loan
  term. Make sure to consider the best option for
  your budget.

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• 7. True or False I can use a Letter of
  Confirmation from the lender for my VISA
  application.
• TRUE. Once you have completed your loan
  application and received an approved offer,
  lenders can provide you with the Letter of
  Confirmation that can be used for your I-20 form
  and VISA application.
• 8. True or False I need to repay my loans
  immediately.
• FALSE. Most lenders will not require
  repayment during school and many will offer a
  grace period of 6 to 9 months following
  graduation. Be sure to read the details of the
  loan offer regarding early repayment and any
  associated fees.

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• 9. True or False I dont have to pay back my
  loan.
• FALSE.While there are a few special loan
  forgiveness programs available, loans must be
  repaid in the provided term of 10 to 20 years
  depending on the offer. If the borrower
  encounters problems making their monthly
  repayments, many lenders will offer forbearance
  arrangements for financial hardship, health
  issues or extraordinary circumstances.
• 10. True or False US loans must be repaid in
  USD.
• TRUE. Loans offered in the US must be repaid
  in USD, so make sure to think about how you will
  repay your Student Loans in India if you return
  to your home country outside of the US. Many
  lenders offer a variety of repayment methods to
  make it as easy as possible, but currency
  fluctuations will be the responsibility of the
  borrower.
• Source http//blog.accepted.com/2015/10/19/the-
  truth-about-student-loans/

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