Graduate loan
Gone are the days when being a graduate was everything. Today, a lot of importance is attached to post-graduate studies which are said to groom students into cutting-edge professionals. Many avoid post-graduate studies on the pretext of not wanting to burn holes in their wallets. Such students either lack a sense of long-term planning or aren't aware of the multifarious loans and financial aids.
Graduate loan is a perfect solution for those who are keen to pursue their post-graduate studies but are facing a financial crunch. The world of graduate loans aims to support and aid all types of student career choices. So it's not a wonder that one can avail private and alternative graduate loans for different career streams like business, law, dentistry, medicine, MBA etc.
Most British universities offer a graduate loan upto 25,000 pounds which is repayable up to 6-10 years. For most graduate loans, repayments remain same throughout the year and ought to be paid in stipulated time periods. The two factors that determine the APR (Annual Percentage Rate) for the graduate loan are the loan amount and the loan term.
Things to consider about graduate loans
Although APRs' are advertised by lenders, they are determined according to the applicant's credit rating or credit score. Lenders determine the credit-worthiness of the applicant by judging his past credit record and current credit status.
Those who wish to save hundreds of pounds on graduate loan repayments should consider making early repayments. However, certain loan agencies apply penalties on repayments if a student wishes to close his graduate loan before the end of the term. Thus there are several pros and cons attached to early repayments.
Some lenders consider giving borrowers breaks between the date of lending of loans and period of repayment. Although this works as a break from payments, it can actually add up to the total interest payable. At times, lenders also charge interest on the amount not paid. Thus payment breaks and deferments aren't as advantageous as they appear to be.
Some lenders offer the facility of same-day-funds which entitle a graduate loan applicant to receive the entire loan amount on the day of application. Lenders can charge a fee as high as 50 pounds for this service.
Aspects of repayment of graduate loan
It is essential for most lenders to pay direct debits for the payment of monthly installments on the student's graduate loan. For this students should ensure that the bank account can accept direct debits and make available money for payments. In case of missed payments, penalty charges can be levied.
Certain universities provide an optional insurance that aims to cover a student's repayments of the graduate loan in case he faces circumstances like unemployment, sickness, death or accident. It should be ensured that the cover provided suits the student's needs. For this, the insurance applicant should read the small print carefully.
Several minute aspects of the graduate loan when taken in keen consideration ensure both, the borrower and the lender extremely smooth transactions.
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