When we talk about the most known positives of an international MBA degree and the most one is that it bestows an edge over others in the job market. However, pursuing it could burn a hole in our pocket looking at the surging cost when it comes international education and cost of living incurred. Eventually, one needs to more often than not take educational loan for financial assistance. What we have as the saving grace is that we do have a huge range of loans to choose from in the banks buffet. The plan for funding your MBA studies needs start along with your GMAT preparations.
One needs to be wise while choosing the right loan and analyse all the aspects involved therewith. For this you have to research, compare and finally draw a conclusion. Different banks have different policies and procedures for granting the loan amount. Last of all ‘YOU’ are solely responsible for its repayment so you should be sure about the best one that suits you. Following are some of the considerations that you may keep in mind while choosing a loan for yourself.
What is APR?
APR (Annual Percentage Rate) is an efficient tool to compare multiple loan offers. APR is a lawfully ordered number that considers the majority of the expenses connected with financing your degree, including any explicit and hidden charges, including the impacts of fluctuating interest.
It’s essential to take a gander at every credit’s APR, Leaving aside the question of the percentage of advance one needs to pay, we should focus more on the interest rates. As, advertised interest rates may be low however, this percent doesn’t represent the greater part of the hidden expenses; the APR could be higher in light of the fact that the credit has administration charges as well as other concealed charges.
Also Read: 7 Financial Aid Tips for MBAs
The last but not the least, the US and the UK compute APR marginally distinctively –Though it will not be a difference that may have a gigantic effect, but it may be a critical metric for advance correlation.
Why it is Necessary to Consider Currency ?
Decide the currency that you are opting loan in. Normally, the currency you choose the loan is the one in which you need to repay the same. But, it is important studying the financing and inflation rates in currencies. As you may be earning in a different currency later on, it may cost you more in retrospect. You should consider your postgraduate strategies – it would make more sense to take financing in US dollars for ease repayment of the loan if you are looking to settle in the US. While it is hard to make comparisons across currencies, you may use them to direct your final decision.
How Long Will be My Grace Period?
Loans have grace periods. In this time, pupils are exempt from making any payment. While this may be a blessing for many one should not forget that interest does still accrue throughout the grace period of your loan. Before you are required to start repayments, it is worth contemplating how much time you will have. And remember, that some loan products do not contain grace periods, you might be required to start repayments while still completing your degree.
What is the Duration for Repaying the Loan?
The duration is the period you will have to repay the loan. Lower monthly repayments are allowed by some loan businesses, but these will lock you into repayment programs that are longer, and you might find yourself paying more through time. Graduates are usually in a better position if they repay their debt as quickly as possible. Similar to the grace period, it is important to check whether your loan company may punish you for early payments.
Do I Also Need a Cosigner or Guarantor?
Regretfully, international students may not be eligible for all education loans in the state they opt to study in. Additionally, in case of loans that are on offer to international students, having a native co-signer or guarantor would go a long way to make loan available easily . The other stumbling block could be that some loans are provided against asset. In case this is not a possibility for you, you could alternatively look at Finance agencies that lend education loan without such demands. For example,few Finance agencies evaluate your creditworthiness on the basis of your financial status that is anticipated post graduation for you and does not demand a show of assets against loan. This understanding enables these Financial agencies to provide loans without guarantors, co-signers, or security.
Making the best choice about what type suits you and your needs the most and doing your research on loans is a vital part of the planning for the graduate instruction. Sure, grace periods and APRs are not as thrilling to consider as dozens of elective classes that are enthralling, but it is well worth it if paying now means saving some thousands down the road.