Tuesday 31 December 2019

What is Student Loan and Its Major Myths?

What is Student Loan?

Student loan is a loan which is designed to help students for post secondary education and associated fees. Nowadays, You can avail this loan facility from Instant loan App.




Following are the Major Myths for Student Loan:-

  • Student Loans Do not Affect Credit Score
Student loans affect your credit score. Loans are a form of credit and credit counts in Credit score which is the major factor to have a loan. As such, missing a payment or paying late will have a negative impact on your credit score. That can affect your eligibility to apply for more loans. Making your payment on time will help you to gain the credit score or at least to maintain it. And your loans are going to have a larger impact on your score than your credit card will.
  • Borrower can Adjust Repayment Amount
Definitely not true, When you use to take the loan in the initial stage you get the standard repayment plan which you can adjust on your income based, after graduation and many more visible options.
  • Is it easy to lower the interest rates?
No,Student loan interest rates are already set when the borrower takes out the loan. loan services do not lower these rates after the loan starts. However, borrowers may benefit from a Direct Consolidation Loan, which combines multiple federal loans and offers a fixed rate based on the weighted average of individual loans.

No comments:

Post a Comment