Giving their children a well-rounded, complete education has become the dream of every parent in today’s cut-throat competitive world. For one to succeed in today’s times, one needs the backing of a quality education. A sound education helps your child forge a successful career, while also providing them with the sense of financial security and independence. But with the ever-rising cost of education across the globe, it is becoming increasingly difficult to fund the cost associated with higher education. As, such education loans seems to be the only saviour. In this article, we shall find out what an education loan typically covers.
Here’s what the loan typically covers
Tuition: A major chunk of the loan typically goes towards paying for the college tuition fees. Depending upon the university and the course you have chosen to pursue, your entire course can last for anywhere between four to eight semesters. Your student loan covers the tuition fees of all semesters. However, the bank has the discretion to determine whether to pay off the entire loan amount to the university in a lump sum or in instalments, every semester.
Associated Fees: Universities levy charges for a host of services and extra-curricular activities offered by them. These charges are levied under the umbrella of associated fees (simply known as fees). The student has to bear the costs that go beyond the scope of tuition fees for facilities offered by the institution. One must pay for on-campus student services, athletics, student union fees, extra-curricular activities, counselling, and use of library, laboratories and technology as well as for any transportation provided by the university. All these costs are levied under fees. These charges are also covered under the education loan.
Cost of books and equipment: With every passing semester, you have to pay for new textbooks, guides and notebooks. You may also require a laptop, a scientific calculator and design boards (for architecture and engineering students, for instance). There is also the added cost of notepads, drawing papers, folders, stationery and so on, depending upon your course. These expenses are necessary and therefore covered in your loan.
Lodging and Boarding: When you apply for student loan, especially to study in a foreign country or a city away from your home in India, you need to incur accommodation costs for the period of your stay in that country or Indian city. You could either opt for on-campus accommodation which covers dormitory costs and your meals or choose to live off campus in a shared facility or as a paying guest. Therefore, the lodging and boarding costs are also covered under the loan amount.
Travel expenses: If you choose to live off-campus, you may need allowance for your travel expenses. This includes money spent on public transport in the form of metro-cards, bus passes etc., and money spent on fuel for personal vehicles. As such, your student loan also provides you with a travel allowance.