Taking a student loan for European University
For many student loans parents or any co signer is required in case of default. But some universities give scholarships without any such conditions.
In some European countries the government assists the students for their education in the form of grants, in some as student loan and in others both these sources are available.
In United Kingdom students loans are not like commercial loans. They are given by the government to pay the tuition fees. The loan for tuition fees of any amount is sanctioned and the loan company directly pays it to the education institution. The interest rates on student loans depend on the rate of inflation. So that the student has to pay exactly the same amount that was taken for education. Separate types of finances are available from the government for part time and for full time students. The loan can be repaid after the completion of education or when the borrower is earning more than £15000 per year.
There are various types of loans for students: loans for UK students, loans for professional studies, loans for international students, loans for MBA, CA, ICWA, engineering, MS, medicine; loans for post graduation and loans for career development.
Many banks provide student loans for studies abroad in general. The banks can be from the student’s own country or the banks at the place of study. Generally for the loans from the local banks require documents like proof of admission, mark sheet of the last qualifying examination, borrower’s bank account statement, proof of income, brief statement of liabilities and assets, income tax assessment order of last 2 years and schedule of expenses. Student loans are available for all those courses for which the employment prospectuses are there.
Loans are available for tuition fees, library fees, laboratory fees, buying books or equipments or computer, security deposit and travel. The amount of maximum possible loan given by every bank is different. The repayment generally has to start within 6 months after the completion of the said course. This period is called as the grace period. The loan generally has to be repaid within 5 to 10 years depending on the amount of loan and the bank.
There are tax benefits for the education loans in Europe. The tax benefits are available for the education loans taken for self, spouse’s or children’s study.
Many study loans from private banks are available. Students can get more than one loan to complete their studies. At the end or during the education all the loans can be brought under one policy by taking a consolidation loan. For consolidation loan the repayment period is longer and hence the interest rate is lower. There can be collateral like house against the consolidation loan. Lower interest and fixed rate, single and less monthly installment and single policy are the benefits of consolidation loan.