They are third party for profit servicers and are not the Dept of Education. They make money of each of your payments therefore many have found navigating the waters very hard. They do not want your loans going into a program.
Similarly, can we get education loan easily?
Easily available: Education loans are widely and easily available. In fact, they are a priority product in all banks as per the RBI’s guidelines. Varied loan amounts: Banks can offer loans anywhere between Rs. 2 lakhs and Rs.
Correspondingly, how do I repay my education loan?
Repayment of education loan is not a big process as such. You just need to get in touch with your bank manager who will take note of your account details and start the repayment on an auto deduction mode. You can also check out the various education loan repayment schemes available in India.
How does the student loan work?
Student loans can include a tuition fee loan and a maintenance loan to help with your living costs. Tuition fee loans, to cover the full cost of your course, are paid directly to the course provider, and you won’t have to pay it back until after your course, when you’re earning above a certain level.
The bank filed the present appeal saying candidates who have secured 60% marks and above alone are eligible to get education loan as they alone can be treated as meritorious candidates.
Generally, education loans are unsecured in nature.It means you do not have to pledge any asset as collateral. However, education loans with loan amount of Rs. 7.5 lakh or higher, may require collateral. Though there is no cap on the disbursed loan amount, the loan amount can range anywhere between Rs 20-50 lakhs.
Education Loan Eligibility Tabular representation
|Minimum- 18 years Maximum- 35 years
|Pursuing graduate/postgraduate degree or a PG diploma.
Documents required for Education Loan
- KYC documents.
- Bank Statement / Pass Book of last 6 months.
- Optional – Guarantor Form.
- Copy of admission letter of the Institute along with fees schedule.
- Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses.
Undergraduates can borrow up to $12,500 annually and $57,500 total in federal student loans. Graduate students can borrow up to $20,500 annually and $138,500 total.
Education Loan Interest Rate in 2021
|Minimum Tenure (excluding grace period)
|Moratorium Period (after course completion)
|Minimum Loan amount
|Maximum Loan without collateral
The PSLF Program was established to encourage individuals to work in public service by forgiving the remaining balance of their Direct Loans after they have made 120 qualifying payments while employed by a qualifying employer.
Banks offering Education Loans and Collaterals Required
|Loan Amount and Collateral Required
|Loan up to Rs.5 lakhs do not require collateral
|State Bank of India (SBI)
|Domestic Education – Up to Rs.15 lakhs Foreign Education – Up to Rs.20 lakhs For loans up to Rs.7.5 lakhs no collateral is required
A sign that the offer is a scam is if a caller claims that they can get rid of your loans in a short time. Most government forgiveness programs require many years of qualifying payments and/or employment in certain fields before loans are forgiven.