Many aspirants dream of studying abroad at a university where academics and prospects are given equal weight. Higher education in a foreign university is advantageous but also expensive, leaving no options for aspirants to use other mediums to fund their education.
One of the most popular ways to finance your education is by opting for an overseas loan. Given the advancements in today’s date, an education loan application is just a click away. Public banks, private banks, NBFCs, and international lenders offer education loans at competitive rates for studying abroad.
As easy as it is to apply for and get a study abroad loan, the repayment procedure has hassles that must be addressed strategically. This article comprises the 5 effective ways to repay your education loan faster, which you can incorporate into your repayment plans for desired results!
How to Repay Your Education Loan Faster?
Even though there is availability of various scholarships to study abroad, due to the rise in the number of international students, getting a scholarship has become more challenging. In this situation, the most fitting financial aid is to get a study abroad loan from a financial institution that caters to your requirements.
Here are the most popular ways you can repay your loan in less amount of time:
-
Do Not Wait for the Moratorium Period to Get Over
Most students commit this mistake to start with the repayment once after the moratorium period is over. However, the most effective way to pay off your loan faster is to start repaying during the moratorium period to reduce the principal balance. Consider alternative funding sources such as scholarships, grants, and personal savings to minimize your reliance on loans. Alternatively, due to the availability of part-time job opportunities in foreign countries, you can start with a part-time job and plan your finances accordingly.
By starting early, you can make informed decisions about your education expenses, set realistic repayment goals, and potentially reduce the amount borrowed.
-
Refinance to Get a Lower Interest Rate
You can always consider refinancing with other lenders available in the market. The primary benefit of refinancing your education loan is the interest rate reduction. Especially when you are a graduate and employed, you can negotiate terms and conditions better due to your earning capacity. Research different lenders and compare their refinancing offers to determine if switching to a new loan with more favorable terms makes financial sense for you. However, exercise caution and thoroughly evaluate the terms and conditions before refinancing.
-
Cut Some Slack from Living Expenses
Unlike the cost of studying, the cost of living can be maintained or reduced by incorporating budget strategies to ensure smooth education loan repayment in India for study abroad. Establishing a comprehensive budget is essential for effective loan repayment management. If you are working abroad, you can start by calculating your anticipated expenses, such as living costs and other miscellaneous expenses. Allocate a specific portion of your budget towards loan repayment and track your spending diligently to ensure that you are under your financial means.
-
Look for Extra Streams of Side Income
Even with a steady income, you can still look for alternative means to earn more. In the advanced landscape of technology and digital media dominance, you can always take advantage of social media channels, preferably LinkedIn or Instagram, by creating an impact socially, connecting with the audience, and making some extra money. Supplementing your income through part-time employment or freelancing gigs can provide an additional source of funds to allocate towards loan repayment.
-
Make the Most of Unexpected Windfalls
You must resist spending impulsively when you come into unexpected windfalls like bonuses, tax refunds, or monetary gifts. Instead, direct these funds toward your education loan repayment. You can significantly reduce your outstanding balance and interest burden by allocating windfalls directly to loan payments. This strategic approach allows you to make substantial progress in repaying your loan efficiently.
The cost of education to study abroad can extend from affordable to costly, which calls for the obligation of an education loan. Even though taking an education loan has many benefits, it is highly recommended to maintain the loan’s repayment term.
If you are looking for financing options for studying abroad without possessing any assets, you can present your query to a financial loan advisor on how to get an education loan without collateral. All the best for your future!
