"Give a man a fish and you feed him for a day, teach a man to fish and you feed him for a lifetime"—Chinese proverb.


Well, that is what we actually want to do with our children. We want them to learn how to fish and thereby how to survive. Though we start with the lesson in the family itself, the school, college, and finally the university too play a role in teaching that lesson. That is why we send our children to those places. However, with the commercialization of education, especially the higher education in universities, many of us are finding it difficult to meet the expenses of studies. There are hefty tuition fees to be paid, costly books to be bought, and high boarding charges to be submitted to the hostels. All this forces the parents to look for additional funds; for meeting the expenses mentioned just above is not possible merely with the meagre income we are making from our jobs.


The situation is such that students are forced to take up part time jobs. They don't like their parents to carry the burden alone. For the parents, on the other hand, it is difficult to see their children taking up jobs to meet the cost of study. Some of the students can neither concentrate on the jobs nor focus on the studies as a result. The very purpose for which the students go to the universities gets defeated when they take up a job.


One of the favourites means, for the solicitous parents, of obtaining funds for their children's studies is an education loan. There are hundreds of banks and financial institutions in United Kingdom and elsewhere nowadays, offering education loans to students.


East repayment options: One of the many reasons why education loans are such a favourite with people is the repayment mode. Most of the education loans can be repaid after the student for which it is meant starts earning. Such schemes are especially for students going for professional courses. Since most of the professional courses come with a placement guarantee, there is very little chance of the loan amount going to the bad debt account of the lender. Education loans for other courses require the parents or the students to repay the amount in equal monthly instalments. While in the case of loans meant for professional courses, the repayment period starts after the end of the course, repayment period for loans meant for other courses starts immediately after the loan is sanctioned.


Easy eligibility criteria: Since most of the education loans are meant for students who usually do not have a credit rating, the eligibility criteria are very lenient. The application for such loans is also very simple.


Variety of loans: Besides the easy qualification terms and the repayment options, education loans have another advantage: variety. No matter whether you are going for college or university education, no matter whether you opt for regular or distance mode of education, no matter whether you choose to study in a government or a private institution—education loans are there for you to avail. Mode of education and choice of institutions do not affect your chances of getting an education loan.


How the education loan benefits the students: The privileged among us always find a place in the best institutions of the country, whether school, college or university. The underprivileged are left behind due to shortage of funds. Education loans can help such underprivileged children get the best of education and the best of jobs thereafter. Though the government has been trying for years to bridge the gap between the privileged and the underprivileged, it has not succeeded completely in doing so. Education loans provide the meritorious students among the underprivileged to bridge that gap and secure for themselves a bright future.


Education loans could be secured or unsecured. Secured education loans are easy to borrow due to the security offered. The security is usually the house of the borrower or any other real estate property. The security in the form of property makes it easy for the lenders to sanction the loan. Though the borrowers have the prospect of losing the collateral in the event of non-payment before them, they can still apply for secured education loans without reserve due to the following advantages:

• Easy terms and conditions


• Low interest rate (annual percentage rate)


• Long and easy repayment terms

Unsecured Education loans don't require the borrower to furnish collateral. The risk in this case, unlike the secured education loan, is more to the lender. As a result, the lender is forced to set a bit strict terms and conditions for the loan. The annual percentage rate is likely to be high and the repayment term short. However, despite the risk, one can go for these loans considering the following advantages they offer:

• Quick turnaround: the applicant can be accepted very quickly after the application.


• Fast processing: as there is no collateral to be evaluated, the loan application is processed very fast.


• Little documentation: lack of collateral also accounts for the less documentation.


• Quick disbursal: all the three factors mentioned just above contribute to quick disbursal of the unsecured education loan.


• Bad credit not a problem: A bad credit record—usually a consequence of missed

payments, arrears, county court judgements (CCJs), or bankruptcy—is not a hindrance in the way of securing an education loan, especially if you are applying for a secured one.

Before you make an application for an education loan, please visit some online sites that take you to the major lenders in UK. Receive as many quotes as possible. Compare the rates of the lenders and then decide who to apply to. This is necessary because there are many predatory lenders in the loan market. Their sole aim is to earn money by exploiting the needs of potential customers. So be careful. Remember that you will end up coughing up a huge amount if you choose a wrong lender. If you think you are not able enough to decide upon the loan, take the help of a financial consultant. He will help you choose the right deal. And please apply online to save time and avoid paper work.


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