Most of us try to save for higher education, but we can still fall short of the required funds. In such a case, there could also be an emergency need for funds where borrowing even a small amount can be helpful.
Short-term loans are loans of small amounts as less as £200 and can go to a maximum of £1,500 for such emergencies that can be repaid in a year or even less.
Taking a short-term education loan
LoanPig is a direct lender and broker that gives access to the largest panel of lenders in the UK so that you can have the best education loan deal available. They assure to help you find fast loans as quickly and effortlessly as possible.
They welcome all credit histories and offer you a straightforward, easy, and online solution for you to get a responsible short-term loan. Get in touch with LoanPig for an efficient, fast, and easy short-term loan application process using highly innovative technology.
Tips on taking an education loan
While applying for a loan, there are a lot of procedures that need to be completed. Read the tips while applying for an education loan.
You need to make a thorough research on the institution you plan to attend as despite having an excellent reputation, some colleges may not have a good placement program.
Ensure that you are aware of your college, course, loan, placement, and the laws and requirements of the country you would be moving to.
Choosing your lender
Select a lender that will offer you the best loan conditions, interest rate, and the best moratorium period.
- Ensure that you have the option of paying off the loan early.
- Learn about all the service fees that are associated with your loan.
- There may be a penalty for partial and early payments.
Plan for prepayments
Budgeting is very important if you are taking a loan either in your or your parent’s name.
- You must plan how you will repay the loan once you start earning money.
- Prepare yourself to cut costs on unnecessary items so that you can pay back the loan as quickly as possible.
- It’s better to pay off loans before you start feeling the burden.
- Use extra money or bonuses to pay off the loan in instalments as you will make significant interest savings.
- Never default on paying back your education loan as it would hamper your future credit scores.
Proposed changes in student loans in the UK
Recently the UK government proposed changes in the educational loan system that would help students handle their academics in a better way. The maximum annual fees were proposed to be reduced from £9250 to £7500. The maintenance grants for students from lower-income families be reintroduced.
However, this comes with a decrease in the starting salary from £25725 to £23000 that graduates must reach to start repaying. Graduates will also be subject to deductions for 40 years following graduation under the plan, as opposed to the customary 30-year write-off for Plan 2 loans.
Before taking an educational loan, research and plan properly to ensure that you can pay it back on time without any burden.