The loan amount sanctioned under the education loan procedure is based on the education loan information given by applicants, notably in collateral loans for studying abroad. When students find a better chance at another institution, they frequently face the question of whether a university change after loan sanction is possible or not.
The answer to this question is – Yes, you can transfer colleges and alter loan information even after your student loan has been granted. However, before submitting the form to the bank, you must update it with new information such as university, country, tuition cost, and other expenses. Mentioned below are the two distinct scenarios in case of university change after loan sanction.
Also Read: Things to Know About Student Loan Servicers Before Getting an Education Loan
Situation – 1: Unchanged Loan Amount
This is a situation in which a student changes colleges or countries, but the education loan information, including the loan amount, remains the same.
When students request changes to their education loan information, most lenders claim a variety of reasons why the request is impractical and deny such requests. This is especially true for students who have received an education loan from a government bank in order to study abroad.
Most government bank loan employees are infamous for turning down requests to amend school loan details, especially after the loan has been approved. In many cases, students receive their second offer letter after their education loan for international study is authorised. In such a circumstance, Fly Finance can assist you with a speedy and smooth process.
Also Read: What are the Pros and Cons of Paying-Off Student Loans Early?
Situation – 2: Loan Amount Changes
It is not uncommon for students who are dissatisfied with their current university to seek a transfer after a semester or two. However, when they notice that the financial requirements of the new university differ from those of the old one, such students commonly face the question of whether this action can be taken nearly six months after receiving their education loan amount.
The good news for these students is that they can still alter the details of their education loan to reflect the new university.
Students, for example, request an education loan that is less than the sanctioned amount. In this case, all they need to do is notify their respective banks about the modifications, which can then be updated.
Top-up loans are available to students who need a higher education loan to attend the new university. However, they must keep in mind that the value of their promised collateral security must be sufficient to cover the additional loan amount.
Also Read: Terms and Conditions for Education Loan for Students
FAQs
Ans. No, you won’t have to repay any loan amounts if you change your university.
Ans. Yes, you can take a second education loan but only if you meet the requirements.
Ans. Yes, you can shift your education loan to another bank if they are providing the benefit of lower interest rates.
This is everything you need to know about university change after loan sanction! Worried about the financial hurdles you are facing for your study abroad dreams? Let Fly Finance help you and make your dreams come true!
