Consequences of Student Loan
People who are not accustomed to borrowing from financial institutions may hesitate to apply for a loan because the threshold is high.
Here, let’s start by learning basic knowledge such as “what is student loans and what kind of cost can be used for an education loan” and “what kind of loan is available”.
What Is “Private Student Loan settlement” Loan?
An education or settlement loan is one of the purpose-specific loans that covers a wide range of fees, including entrance fees for high schools and universities, tuition fees, and expenses for various vocational schools.
Broadly speaking, two types are generally widely known: “private financial institution education loans” and “national education loans.”
Below, let’s check not only the education loan but also the difference from the scholarship.
Types Of Mortgages
Bank (private) Education Loan
Education loans are common loans offered by many financial institutions.
Interest rates vary from financial institution to financial institution, but you can borrow at a relatively low interest rate.
Unsecured and unguarantored people are common, but if you have a large amount of educational funds such as medical school tuition fees and study abroad expenses, you can also choose a product called a secured educational loan with a large loan limit.
Since each financial institution makes its own educational loan products, the interest rate and the range of expenses covered by the loan vary from financial institution to financial institution.
Some financial institutions reduce interest rates due to limited-time campaigns and transaction records.
So be sure to check the handling conditions and interest rates before using.
Country Education Loan
“General Education Loan” is a loan system of Finance Corporation, which is well known for national education loans.
It is a relatively low fixed interest rate. The maximum loan amount varies from student to student,
It is smaller than that of a private education loan, and a guarantor (one or more) or a guarantee from the Education Fund Loan Guarantee Fund (guarantee fee required) is required.
There are many parts that differ from private financial institutions under detailed conditions.
So it is necessary to check the contents in advance before using it.
Features and Targets of Education Loans
Private education loans vary depending on the financial institution, and unexpected costs may also be covered by the education loan.
Make sure to check the product details when applying.
Certificate Loan Type
Also called “lump-sum borrowing type”, it is an orthodox borrowing method in which the required amount is borrowed in a lump sum and then the fixed amount is repaid on a fixed day every month.
Extreme Type (Card Type)
The “extreme type” is a method in which a borrowing limit (extreme amount) is set at the time of contract, and the borrower withdraws or repays as much as necessary each time. Also called “every time borrowing type”.
If it is within the maximum amount, you can easily deposit and withdraw funds without the need for examination as many times as you like.
The contract is made with an overdraft contract with a preset amount as the maximum amount, but there is also a “card type” type that allows you to issue a card and borrow at an ATM.
If you want to borrow only the entrance funds and tuition fees at once, we recommend the “lump-sum borrowing” type.
Also, if you pay the tuition fee separately for the first and second semesters, or if you have other children who need educational funds, the “extreme type” type that you can borrow over and over again is convenient.
It’s a good idea to use them properly as needed.