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Student loan calculator: Everything you need to know
College is supposed to be exciting, and we often see cheerful students and beautiful campuses in almost every college and university advertisement. But in reality, studying in one of the prominent colleges can be expensive. In recent years, students have been more inclined to take loans because it helps them fulfill their dream of pursuing a degree in a high-end institution.
However, student loan debt has been skyrocketing over the past decade, and you need to calculate and understand the risk involved before you blindly choose a loan beyond your means. Therefore, a student loan calculator is the best way to pick a loan that suits you best.
If you want to know all about a student loan calculator and how it works, then keep scrolling!
Factors taken into account before granting a student loan
Almost all the banks offer student loans; while there may be some minor differences in clauses and requirements, here are some of the main factors they would consider-
- A student who is applying for the loan must submit the records of marks, credits, and achievements. These are some of the things the bank will consider to determine the applicant’s academic background.
- Banks do detailed research about the particular course a student is willing to study. They check if the course applied by the applicant is credited or not.
- The banks also do detailed research about the institution to which the student has applied. The accreditation and reputation of the institution are essential and play a crucial role in loan sanctions.
- The collateral provided by the applicant for a loan is another factor. Collateral means an asset you provide as security along with the loan application. This security can be LIC Insurance, land, house, etc. The bank will consider the value of the collateral provided.
- If there are any co-borrowers, such as parents or guardians, the bank will look at the co-borrowers’ job histories and credibility.
Student loan EMI calculator
The student loan EMI calculator will help you understand the amount of EMI you will have to pay on your loan. This allows you to plan and manage your finances better and ensures that you take a loan that you can afford to repay without any added stress. You need to know the current interest rate, the loan amount, and repayment tenure.
The mathematical formula to calculate the EMI is EMI = Loan amount × interest rate × (1 + interest rate) tenure in the number of months divided by ((1 + interest rate) tenure in the number of months – 1).
You can look at several sites to find the EMI calculator and the best student loan calculator, which is easy to use, quick, free, and accurate.
Student loan interest calculator
The student loan repayment calculator works by multiplying your daily interest rate by the number of days since your last payment. Divide the annual interest rate on your loan by 365 to derive the amount of interest daily. Then, multiply that amount by your loan balance.
Benefits of online education loan calculator
There are several benefits of using a student loan payment calculator. Some of them are listed below-
- Using a student loan amount calculator, individuals can instantly find out the EMIs they will need to pay. Therefore, it helps in saving a lot of time and effort.
- Manual calculations are time-consuming and might lead to unwanted errors. In the case of an online calculator, there is no room for error, and one can be certain of accurate results when using student loan calculators.
- The biggest advantage of using a student loan calculator is that it helps plan your finances. By entering the numbers into the calculator, users can find out the repayment amount. Knowledge of this is important as it will help them identify whether they can afford the loan.
Which are the courses eligible for educational loans?
Banks offer loans to students for various courses provided by an accredited institution. Students can avail of loans for the following courses-
- Undergraduate degrees
- Postgraduate degrees
- PhDs and Doctoral Programs
Some banks also offer loans for specialized courses, training, and diplomas. An applicant must do proper research and find a bank that will provide them with the loan they are looking for.
Your next steps
Once you are done with research and calculating the student loans, here’s what you must do next-
- Use our pre-qualification tool to see if you qualify for a private student loan.
- Check the interest rates to expect before you apply.
- To apply, find the application, fill it out with the necessary details and you will get an instant credit decision.
- Educational loans are promoted because they allow students to study further. It enhances the nation’s growth and development.
- Government banks offer subsidies and student loans at lower interest rates aiming to promote education for all, irrespective of their financial status.
- Educational loans are an investment in the future, and you must carefully do your research and take your time.
- To check how much loan you need, you can use a student loan calculator. It will help you calculate the amount you need, EMIs, etc.
We hope you enjoyed reading this blog. For assistance related to your student loan, connect with us or drop a comment below!
Liked this blog? Read more: 10 best countries to study abroad and work in 2022.
Q1. Can I avail a student loan without a guarantor?
Answer- Usually, banks require you to have a guarantor when providing a student loan. However, depending on the course you are opting for and your profile, having a guarantor may not be compulsory.
Q2. Which are some sites where I can use a student loan amount calculator?
Answer- You can use a student loan amount calculator by Bankrate, Bank bazaar, or any official bank site.
Q3. What expenses are usually covered as part of a student loan?
Answer- The following expenses are covered as part of the student loan-
- Tuition Fees
- Hostel Fees
- Examination Fee
- Library fees and lab fees
- Purchase of books
- Purchase of laptops and other equipment
- Travel expenses for studying abroad
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