Advantages and disadvantages of educational credit: the view of experts

Times when everyone could expect to receive free higher education and guaranteed employment, unfortunately, were left far behind. Of course, modern universities still have budgetary places, but each year their number is decreasing. And given the fact that the cost of paid tuition increases from year to year, and not every family has such means, many parents start to think about issuing an educational loan.

pros

The most important advantage is, undoubtedly, the opportunity to get an education in the university of your dreams. And, as a rule, the repayment of the debt is calculated in such a way that during the training it is necessary to pay only interest, and the body of the loan can be returned to the bank after the completion of training. There are several other advantages in obtaining an educational loan:

• Loans are issued not only to those who plan to enter the inpatient department, but also to students who prefer a correspondence or evening form;
• The programs extend not only to universities and institutes, but also to other educational institutions: academies, colleges, technical schools;
• An increasing number of banks offer the possibility of starting payment of the principal debt and interest accrued on it, not from the moment of receiving the diploma, but three months after that, that is, the graduate has time to find a job;
• The possibility of state subsidies is also very useful: by using it, you can double the cost of an educational loan;
• The bank always independently transfers the necessary amount to the account of the educational institution and does it on time.

Every year, like all other types of lending, this type becomes more accessible to people - banks offer the most loyal and profitable conditions.

Minuses

Any medal has a downside, and educational loans to students are no exception:

• Perhaps the main drawback is that most banks agree to cooperate only with those educational institutions that have state accreditation;
• Banks are careful not only to choose the university itself, but also to the profession that the borrower wants to master, assess its prospects, relevance and reliability;
• Almost always there is a need to deposit a pledge or provide the bank with guarantors (in the role of the latter, the student's relatives usually act, and as a pledge a car, real estate or securities can be used);
• If the student does not pass the session or decides to stop training, the termination of the transaction will cost him a very round sum.

Before drawing up an educational loan, you should clearly weigh all the pros and cons, and also pick up a profitable bank offer.

Conditions and interest

The first bank that introduced similar programs was Sberbank. However, soon this trend was picked up by many other institutions. Nevertheless, most of them provide an opportunity to receive an educational loan in Russia on similar terms:

• The loan is issued in rubles;
• The repayment period is 10-11 years;
• The interest rate is 12-20%.

Some banks, among other things, provide an opportunity to get a loan for study abroad, but in this case the borrower's age should be more than 21 years, and the interest rate is much higher.