You’ve worked hard towards your dream. You’ve completed your class 12th or bachelor’s degree in India and decided to pursue your higher education abroad. You’ve chosen a specific course in a reputed foreign university, only to realize that the tuition fees and accommodation expenses are more than you have ever imagined.
Whether you want to pursue your higher education abroad or have plans to send your wife or children abroad, you might not be eligible for an education loan. In such cases, you need to obtain a personal loan for education to manage the living expenses. In this guide, we will elaborate on how you can get student loans for your living expenses and the best ways to use them.
How to Get Student Loans for Living Expenses?
This is one of the most important things you need to know. Many students don’t know the process of obtaining a student loan and end up facing numerous problems. If you want to know the correct methods for using student loans for living expenses, here are some important tips you need to keep in mind.
Make Sure You Estimate Your Expenses
One of the most important processes of obtaining student loans for living expenses is to estimate your overall expenses in advance. Education, especially from a reputed foreign university, will undoubtedly prove expensive. You also need to consider your living expenses along with the tuition fees. Consider researching a little bit to know more about the cost of living in the country. Once you know an estimated cost, you can determine the specific amount of money to obtain through student loans.
Check Your Eligibility
Make sure you check whether the loan amount you need is eligible. Depending on the bank, the eligibility criteria will differ. Don’t forget to discuss with the banking professionals to know more about the eligibility criteria for student loans for living expenses.
Also Read: 5 Things to Keep in Mind to Apply for an Education Loan
Determine Repayment and Tenure
Consider taking student loans for living expenses from a bank that provides flexible tenures. This is because the monthly instalment of the repayable money will have a huge impact on the tenure. Keep in mind that your earnings as a student and as a professional will be different. When you have pocket-friendly EMI options, you don’t need to worry about debts.
Submit Your Application to the Bank
When you’re done determining the loan repayment terms, tenure, and eligibility criteria, you need to submit your application to the bank. Don’t forget to attest the necessary documents to make the process more fruitful.
Now that you know the correct methods of obtaining student loans for living expenses, your next step should be knowing the correct methods of using them. If you’re not mindful of your expenses, you will end up spending your money pretty soon.
Also Read: What are the Benefits of a Student Bank Account?
Can You Use Student Loans for Living Expenses?
If you get an accommodation option on your campus, you will be able to use your student loan to cover the costs of the board as well as the room, whether you live in an on-campus apartment or a dorm room. The student loan funds can also help you pay for off-campus expenses such as:
- Transportation
- Rent
- Supplies
- Housing Utilities
- Groceries and Meals
- Home Furnishings
Can You Use Your Student Loan Amount on Non-Essentials?
Remember that you’re eligible to spend your student loans for living expenses on purchasing non-essential items. However, depending on the bank, you might face consequences if the bank authorities find that you’re spending the loan amount on unnecessary items. Some of the unnecessary items that you should not purchase using your student loan are:
- Vacations
- A new car
- Settling debt
- Unnecessary electronics
- Business expenses
In addition, when you misuse your loan amount, your lender might prevent you from leveraging the benefits of the student loan. You might also be required to pay the entire amount back to the lender, along with the interest rates.
Also Read: Understanding the Education Loan Application Process
How Can You Save Money on Living Expenses?
Saving student loans for living expenses is not a hard task, especially when you are mindful of your expenses. Make sure you’re strategic while spending money on your student loan. Here are some of the most effective ways to save money on your living expenses:
- Make sure you pay for the essential items first
- Look for cost-effective alternatives
- Don’t spend unnecessary money
FAQs
Ans. Yes, a bank can reject your student loan for living expenses application. To prevent this, ensure you’re submitting relevant documents.
Ans. There is no fixed amount for student loans. Depending on the collateral, your university, and your academic background, the bank will provide you with the perfect student loan amount.
Ans. Depending on the bank, the loan repayment tenure can be as long as 15 years.
This is everything you need to know about the processes of obtaining a student loan as well as the perfect ways to use them. If you need help with your education loan, make sure you contact Fly Finance and the experts will help you.
