Student loans are monies provided either by the government or private sector to enable a student pay his tuition fees, buy his books and take care of other expenses while in school, especially if he has no savings to cater for these needs.
These loans enable one who would otherwise be unable to acquire former education as a result of poverty to go to school. They are however not free and must be repaid as soon as one completes one’s education and lands a job.
The advantage of the programme is that it enables poor students and those whose parents are poor to acquire standard education. It brings education to the reach of the poor and prevents it from being the exclusive rights of only the rich. It therefore provides succor to students who cannot afford to pay their fees from their pockets.
Besides, the student is not burdened with repaying the loan while still in school. It makes it possible for him to concentrate to study without the fear of having to be asked to repay his debt. It make it possible for you to take your studies, pay your rent and be able to feed yourself without having to look for other sources of getting the money to take care of your feeding.
Moreover, it ensures uninterrupted education. Since the debts are usually paid at the end of studies, students have the privilege to continue their education without dropping out of school as a result of their inability to pay their debts. The beauty of the whole package is that you are able to complete your education on schedule all things being equal.
Furthermore, the interest rate is cheaper than the other forms of loan. Since it is understood that the person collecting the loan is a student, the interest rate is usually pegged at least 2 to 3 points below other forms of loans.
The repayment is also spread out to make it less burdensome. You can conveniently offset the debt through a scheduled repayment system that allows you to pay a particular percentage of your income monthly.
Different countries have different procedures for acquiring the student loans and ways of repayment after completing your education. Generally, there are factors that are put into consideration before loans are given out to the students. The income level of the parents may be considered: the income level of the students may also be considered especially for those who already have a job before considering going back to school.