Education Loan Application

By: EconomyWatch Content   Date: 23 November 2009

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The escalating cost of higher education has increased the demand for education loans. Providers of these student loans cater to everyone, from high school graduates to working individuals, who are keen to continue their education. However, the eligibility criteria and other terms vary for different educational loans. These parameters must be thoroughly evaluated by students at the education loan application stage to obtain the best possible finance.

Education Loan Application: Do’s and Don’ts

An education loan application form must be duly filled and attached with all relevant documentation, such as identity and residence proof.

Other considerations to keep in mind are: 

  • Ensure that the loan provider is recognized by the college. Applying for a student loan through the educational institution helps to acquire better terms and interest rates.

  • Inform parents or guardians about the education loan application, in case of dependants. Some lending institutions require a parent/guardian to become a co-signer on the student loan. In such cases, if a student defaults on payments, the responsibility of repayments falls on the co-signer. 

  • Submit a copy of income tax return for verification of income, in case of applicants with prior work-experience. This highlights the need for timely filing of income tax returns. Failure to do so may result in loan disqualification.

  • Apply for special loans, if applicable. These include loans for minorities and individuals with disabilities. Some degree programs also qualify for education loans at competitive interest rates.

  • Submit the application forms before the deadline established by the lending institution. In case one plans to post the form, ensure the gap between the date of submission and postage is substantial. This is necessary to avoid missing the deadline due to postal delay.

Finally, remember to not rush through the education loan application. Moreover, compare different loan options to obtain the best interest rate and payment plans.

Additionally, apply for all relevant and applicable scholarships, with the education loan application to cover maximum funding avenues. One can easily withdraw a student loan application, even if it has been approved, if a scholarship has been granted. However, do not miss out on the deadline for an education loan application, as it brings with it a hope of qualifying for a grant or scholarship. 


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