HOW TO COMPARE STUDY LOANS FROM DIFFERENT PROVIDERS

 

When it comes to international student loans, there are a lot of factors that you need to consider and each has its own pros and cons that you need to take into account before making your final choice.

If you want to make sure you pick the best possible option for your situation, read this article till end to understand the three top things to consider so you can compare different loans.

The best way to find the best option for you is by comparing international student loans that have different conditions and repayment plans and selecting the international student loan that best meets your needs.

1. Compare the interest rates

Different lenders will have different ranges of interest rates on their international student loans. Some might offer lower, more competitive interest rates; some may have higher rates but will accept applicants without such good credit history.

The interest rate you receive from a lender depends on several things like your credit score, the length of time you are taking to pay back the loan and your income.

When financing your education, you'll need to consider different types of interest. Some are fixed rate where the payments will stay the same for a period of time while others have variable rates that change over time.

2. Compare the repayment plans

If you take out a loan, lenders will have different repayment terms. The most common are five year and ten year plans with fixed monthly payments.

With most lenders, you will make lower payments while you are still studying - and for up to 6 months after graduation. These reduced payments may cover interest and capital or may be interest only payments. In rare cases you may find a lender that allows you to delay repayments completely until after you graduate (in school deferment).

3. Compare the loan terms

Different lenders have different terms and conditions for their loans. It's important to shop around to find the right lender based on your needs.

These may cover eligibility criteria, whether or not you need a cosigner or guarantor, minimum credit score, or whether there are any discounts available on repayment - such as signing up for automatic payments or maintaining good grades in school.

Your expected graduation date is also another factor that the lender will take into account when considering applications from non US citizens.

Source: SI-UK