Debunking myths about higher education loans

financialexpress.com:

Quality higher education is essential for developing the academic rigour required to shape one’s domain-specific skills to build a successful career trajectory. Education stands as a transformative force, empowering students to make substantial and meaningful contributions to the advancement of a robust economy. According to the latest reports, education inflation has surged to 12%, overshadowing the 6% consumer price inflation (CPI).

Consequently, the most pragmatic approach for financing higher education is seeking educational loans from financial institutions. However, the landscape is clouded by numerous misconceptions about education loans, creating confusion within the student fraternity. Since students are typically first-time borrowers, it is imperative to delve deep into this subject to unravel the intricacies and gain a comprehensive understanding of education loans for informed decision-making.

Let’s debunk some myths prevailing about education loans:

Education loans are always a better way of funding education than self-financing: Students may deplete their family savings through self-financing, exposing families to unforeseen events such as a pandemic or health emergencies. Opting for education loans empowers students to shoulder the financial responsibility themselves, relieving their parents from the financial worry of not having funds for a rainy day. They can become Atmanirbhar, which allows them to build a robust credit score and unlock multiple benefits when opting for other financial products such as car loans, home loans, and credit cards.

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There are collateral-free education loans designed for enabling