Start with realistic planning
Map the total education cost, expected salary range after graduation, and family contribution before finalizing loan amount. Remember to include living expenses and books in your total calculation, as these can add up quickly over several years of study.
Understanding the Grace Period
Most education loans come with a moratorium or grace period, which usually lasts for the duration of the course plus six months to a year. During this time, you are not required to pay EMIs, but interest continues to accrue on the disbursed amount. This is why paying at least the simple interest during this period can save you from a much larger debt pile later on.
Repayment habits that help
- Pay simple interest during the moratorium whenever possible.
- Set auto-debit reminders to avoid penalties and credit score damage.
- Use annual bonuses to prepay principal and reduce future burden.