Don’t Believe These 4 Myths about Availing of Personal Loans for Students

 

There are many facts and myths about student loans.

The former will help you pay off your student debts faster, while the latter will cost you more. How can you tell the difference between the two? Student loans are neither the devil's financial spawn nor a free ride. Check out these 4 main student loan myths to be sure your loans are working for you rather than against you and hence you can proceed further with your personal loan EMI calculator. 

 

When it comes to paying off student loan debt, misinformation may be quite hazardous. Here are five typical student loan misconceptions to avoid to help you separate the good advice from the bad. Student Personal loans are neither the devil nor a free ride in the financial world. Check out these four common student loan fallacies to be sure your loans are working for you rather than against you.

 

You'll be able to prevent making bad decisions with your loans and manage your money properly if you recognize these myths.

Myth #1: Getting a student personal loan decreases your interest rate.

Consolidating your federal student loans will not reduce your interest rate.  There are 2 different types of interest rates is Fixed interest rates vs. Floating Interest Rates. When you use a Direct Consolidation Loan to consolidate federal student loans, the resultant interest rate is the weighted average of the interest rates on your existing federal student loans.

 

Myth #2: If you can't pay your student debts, you can always have them forgiven.

No, not at all. Only federal student debts are eligible for loan forgiveness. You must participate in an income-driven repayment plan, such as PAYE or REPAYE, to qualify for student loan forgiveness.

 

Myth 3: You should take out as much loans as possible.

Many borrowers make the mistake of taking out student loans without thinking about how this debt would affect their future finances or job options. Even if you have the ability to take out a large number of student loans, this does not imply you should.

 

Myth #4: Income-based repayment programs will save you money on your loan.

Income-driven repayment programs, such as income-based payback and ‘Pay as You Earn’, modify your monthly payments depending on your income while prolonging the duration of your loan to 20 or 25 years along with a personal loan EMI calculator. They can be quite beneficial if you're having trouble keeping up with payments and need to reduce them in order to avoid falling behind.