Payment of student loan has become difficult now a day. Due to easy process in obtaining a student loan, there has been a surge in a number of students taking the loan. Student loan has become compulsion due to rise in the university fees. University is charging a higher amount of money in order to get the certificate that is of nugatory value.
University is the place to acquire knowledge traditionally. Before the Internet was invented university was the sole medium for gaining knowledge. The library lush with the printed book was only the source of knowledge. University teachers with the wide range of teaching experience used to make the learning process smoother. This clearly indicates the importance of investing in the education in the past.
Now, anyone anywhere from the world can have access the knowledge by connecting to the powerful tool the Internet. Any kind of skill, knowledge can be gained either from looking video explanation or reading the text. The process of learning has been changed.
Despite all the marvelous achievement from the byproduct of modern technology. People around the world still needs the university degree. Starting the business is the arduous process and does not require the profession degree. Whereas anyone who wants to work in the firms needs the academic degree. Academic degree increases the chance of being hired in order to fulfill someone else dream. This signifies how important is the academic degree for general person.
A student mostly from the United States takes the student loan to get the academic degree. Although, students from the developing world are offered with the student loan in the higher interest rate. Students from the developing country need the student loan while moving for abroad study and normally for a higher degree. Due to this payment of student loan is not of grave concern due to a small number of the student using the service. In contrast, almost all the Students from the developed country take the student loan. Which created a lot of problems in paying the loan. The higher interest rate >4% makes the repayment extremely difficult.
Due to low-interest rate compared to the credit card. Some pundits claim that paying student loan early with adequate income sources can be catastrophic.
There are a couple of ways which when applied carefully will help to pay the student loan in time and can have financial freedom early. Some ways are summarized as below:
1. Saving habit needs to develop early in life. Every parent needs to teach the kid about the importance of saving especially in tender age.
2. Before applying for the student loan it is necessary to take the loan with the lowest interest rate. Lucubration on the interest rate fluctuation with time will give the clear picture of interest rate. This can be healful for creating the future scenario of repayment.
3. Take the long-term plan to pay the student loan. Paying twice in the month can be effective than paying once in a month. Creating the long-term plan for payment from 3 to 5 years can be beneficial in long run.
4. Create the saving account while studying and starting saving by boycotting the money for refreshment can really boost the repayment.
5. Use the School holidays to make the extra money. There are tons of online and offline options available for working part time.