Success The Turning Point

Author(s): Rajendra Rakhecha
Publisher: Rajendra Rakhecha

Page 56

Pay attention to the terms: The interest rate of your Study Abroad loan may vary depending on whether you repay the loan immediately or wait until after graduation to start repaying. Having a co-borrower can also have an impact on the rate of a loan. Check the Hidden Costs : The hidden costs for borrowing loan can have a big impact on your overall cost of borrowing. Examine carefully terms like Application Fee, Origination Fee, and Default Fee. Prepayment Penalty : Is there any penalty for early repayment? What's the penalty for a missed or late payment? Get the proper advice and support you need : Choose the right loan option as per your financial situation. Learn about the impact of deferring repayment and choosing a long repayment term. Putting off payments and having smaller monthly payments might increase your total cost of borrowing. International versus Indian Banks: US students can receive federal loans guaranteed by the government, but these valuable loans are not available to international students. Luckily, private student loans are available to international students. The loans are cheaper compared to those available in India if an international student is fortunate to get the loan. The interest rate is around 4-6% compared to around 12 % in India. International Student Loans : U.S Banks offer students loan to international students if the loan is cosigned by a creditworthy US citizen or permanent resident (holder of a "green card"). International students may choose from the following international student loan option: Global Student Loan Corporation: GSLC offers student loans for International students that do not require a co-signer in the host country. You do not require a U.S. cosigner if you plan to study in U.S. In addition to covering your tuition, the Global Student Loan provides funding for other school essentials such as computers, insurance, communications, travel, and housing. Federal student loans are popular with US students in the USA, but they are not available to international students. International Student Loans are specialized private education loans that are available for international students who are studying in the USA. International students will have to apply with a qualified co-signer and should only apply for international student loans after exhausting all scholarships, personal funds and other options. International Student Loan Program (ISLP) and Study Abroad Loan Program (SALP): In order to be eligible for international student loan program (ISLP) you should be Non U.S. citizens or non-citizen permanent resident attending an eligible U.S. college or university Have a creditworthy cosigner who is a U.S. citizen or a non-citizen permanent resident. The minimum loan amount is $1,500 per academic year. Students may take up to 25 years to repay the loan. SALP is an alternative loan program for US citizens to study abroad. Canadian Higher Education Loan Program (CanHELP): CanHELP is an alternative loan program for Canadian university students to study in America and approved schools throughout the world. Graduate students may borrow a maximum of $15,000 per year without a co-signer, or up to cost of education with a co-signer. Students can repay loan upto 20 years. Graduate students can apply without a cosigner if they pay a 7.5% guarantee fee at disbursement and a 2% guarantee fee at repayment which will be financed into the loan. Undergraduate students are required to have creditworthy Canadian citizen as co-signer. International Student Loans