Student loan is a type of loan designed to help students pay for post secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other type of loans in that the interest rate may be substantially lower.
Student prefer education loan for pursing higher education.Also education loan is free from tax. This is a special type of loan granted by banks under which some amount of money is granted to students at special rates. With the help of education loan, the students can achieve higher and costly studies at cheaper rates.
Anyone who has secured an admission into an approved course is eligible for an education loan. The bank manager has dicretion in approving the loan based on the student academic performance and the expected employment opportunities for the course.
The rules to repay education loan are quite simple.You have to start repayment of loan after completion of course or after joining a job. If, in any case, student is unable to repay the loan, then the responsibility shifts to the guarantor.