PAY YOUR WAY THROUGH MED SCHOOL
Five things a medical student should keep in mind to avail a trouble free loan from financial institutions
Medical education is a path that appeals to those who are extremely passionate about the well-being of the society. However, the process of becoming a doctor is long drawn and expensive. The growing number of private medical colleges has primarily contributed to the rising cost of medical education thereby, posing a challenge for students and their families in paying for it, which includes tuition fees, living expenses, books, and supplies. Banks and other private education finance companies have come forward to offer education loans, on easier terms. A student planning to pursue medical education should consider these points before availing a loan Admission confirmation Confirmed admission in a college or university is a must to secure a loan for one’s medical education. Lenders maintain a list of recognised educational institutes for providing loans and rank them on the parameters of education quality, courses offered and placements. Lenders also enter into a tie-up with such institutes to provide education finance to students. This makes it very critical for students or parents to approach a lender that already has a tie-up with the institute in order to get loans on easier terms.
Cost evaluation Students opting for a medical education loan should first decide on the amount they can pay from their savings and the amount that needs to be borrowed from the financial institution. Students planning to pursue their medical education abroad, on the other hand, should also check currency rates as they may end up paying a higher fee.
Financial history Students should ensure they have all the relevant documentation required before they apply for a medical education loan. The student should ensure that the co-signer (which is usually the parent or guardian) has all relevant income and financial documents including income tax assessment order for the previous two years, a brief statement of the assets and liabilities of the co-signer and bank statements among others. Additionally, since most medical loans are higher ticket sizes and usually require a collateral security such as property, the student must ensure that all relevant property documents are in order.
Budget yourself The student should understand the repayment schedule of the loan including any moratorium period offered. Budgeting is important and one should be prepared to cut costs on unimportant things and focus on repaying the loan as quickly as possible. Loans become burdensome after a while, so it’s better to clear it before the toll is felt. The student should be prepared to use extra cash or bonuses to make part pre-payments. Research interest rates Students and parents should always look for an education loan that has longer repayment tenure. This will ensure lower EMIs. Majority of the new loans are sanctioned to customers with a credit score greater than or equal to 700. Therefore, higher the credit score, better the chances of the education loan getting approved with a competitive interest rate.
BUDGETING IS IMPORTANT. ONE SHOULD BE PREPARED TO CUT COSTS ON UNIMPORTANT THINGS AND FOCUS ON REPAYING THE LOAN AS QUICKLY AS POSSIBLE.