Unlocking Your Educational Dreams: Exploring the Higher Education Loan Program (HELP)

higher education loan program

In today’s knowledge-driven society, higher education has become a gateway to personal growth, career opportunities, and intellectual development. However, the rising cost of tuition and other educational expenses can often deter aspiring students from pursuing their dreams. To bridge this financial gap and empower individuals to pursue higher education, governments and financial institutions have introduced various support programs, one of which is the Higher Education Loan Program (HELP).

In this blog post, you will explore the Higher Education Loan Program, commonly known as HELP, and understand how it serves as a lifeline for students aspiring to obtain a college degree. Whether you’re a prospective student or a concerned parent seeking guidance on financing education, this post aims to provide valuable insights into the program’s features, benefits, and application process.


What is a Higher Education Loan?

The sum you borrow from a bank to pay for your or your children’s educational costs is known as a higher education loan. Banks charge reasonable interest rates for student loans. Additionally, up to a certain amount, no collateral is needed for these loans. Aspiring and deserving students and professionals who require money to finance their education typically receive higher education loans.

To pursue professional and technical education in India and around the world, any deserving students or professionals are eligible to apply for higher education loans. An individual must first enrol in career-oriented graduate or postgraduate courses in fields like medicine, management, or engineering before applying for a student loan for higher education.

Understanding the Higher Education Loan Program (HELP)

The Higher Education Loan Program is a government-funded initiative designed to assist eligible students in covering their tuition fees and related educational expenses. It offers a range of loan options that make higher education more accessible, allowing individuals to focus on their studies rather than financial stress.

Types of HELP Loans

The HELP program encompasses different loan schemes tailored to cater to diverse student needs. They delve into the various types of loans available, including HECS-HELP, FEE-HELP, OS-HELP, and SA-HELP, discussing their eligibility criteria and repayment options.


HECS-HELP assists eligible students in deferring their tuition fees, allowing them to commence studies without the immediate financial burden. You will explore how this loan operates and discuss the repayment process, which is income-contingent and only commences once the graduate reaches a certain income threshold.


FEE-HELP is aimed at students undertaking fee-paying courses at eligible higher education providers. This explains how FEE-HELP covers tuition fees and the repayment options available, providing a clear understanding of how this loan can support students pursuing a diverse range of courses.


For students aspiring to gain international exposure and study abroad experiences, OS-HELP is a vital financial resource. Highlighting the features of this loan, including eligibility requirements and the support it provides for travel and living costs during overseas study programs.


SA-HELP assists students in paying their Student Services and Amenities Fees (SSAF). Explaining how this loan helps students access campus services, support organizations, and facilities vital for a well-rounded.


Benefits and Features of Higher Education Loan

Below mentioned are the features and benefits of a Higher Education Loan:

  • To further your education, you can apply for loans for higher education both in India and abroad.
  • Banks provide various sums for students in India and abroad. For instance, the State Bank of India provides students with Rs. 30 lakhs for higher education abroad and Rs. 10 lakhs for domestic study.
  • Benefit from lengthy loan repayment terms for higher education.
  • If you borrow a larger sum of money, the bank might request collateral. For instance, if your loan is for more than Rs. 7.5 lakhs, HDFC Bank will request collateral.
  • An additional application is required for a full-time course.
  • Straightforward and painless documentation process.
  • A variety of collateral options are available to you, such as residential real estate, fixed deposits, national savings certificates, LIC policies, etc. Collaterals, however, may vary from one bank to another.
  • Under section 80E of the Indian Income Tax Act of 1981, taking out a higher education loan qualifies you for tax advantages.
  • Doorstep services are also provided by banks like HDFC.
  • Direct loan payments are made to your educational institutions. It may be distributed in full or in portions depending on your course’s requirements.
  • Some banks provide free savings accounts with student loans for higher education.
  • Obtain insurance coverage.
  • You can pay off your college tuition, cover travel and lodging costs, buy books and computers, etc., with the money you receive as a higher education loan.



By examining the advantages and potential considerations associated with HELP loans, this section provides a balanced perspective for students considering this financial support. Also, discuss factors such as interest rates, repayment thresholds, and the long-term impact of loan obligations.

The Higher Education Loan Program serves as a beacon of hope for students yearning to pursue higher education but facing financial barriers. By providing flexible loan options and repayment structures, the HELP program opens doors to endless opportunities and fosters a society driven by knowledge, innovation, and personal growth.

Whether you are a student embarking on your educational journey or a concerned parent seeking guidance, understanding the Higher Education Loan Program is crucial. It empowers individuals to pursue their dreams, equipping them with the means to acquire knowledge and skills that will shape their future and contribute to society’s progress.


Q1. What is the eligibility for an education loan?

Ans. An applicant must be an Indian citizen and must be at least 18 years old. 

Q2. What is the interest rate on higher education loans?

Ans. The interest rate on higher education loans is 11.15% to 12.40% p.a.

Q3. Do we get a 100% education loan?

Ans. Yes, student loans completely cover the cost of education. However, only costs that fall under a specific cap will receive full coverage.

Reach out to Fly.Finance for better guidance whereas for more study abroad needs, you can contact Leverage Edu. 

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