Comparative Study of Interest Rates on Education Loans

mba finance projectsAn education loan is a loan taken to help pay for an education, usually at a college or trade school, but may also be used to pay for private schools or prep schools as well. The education loan is available in several different types.

These are student loans, parent loans and private loans. Loans are also either guaranteed or unguaranteed. Student and parent loans are most likely to be guaranteed by the government, though many agencies work for the government in this respect. Unguaranteed or unsubsidized loans are usually from private lenders only, and usually can only be obtained if one has a good credit score or significant equity.

The student loan is usually the best choice education loan for a student whose parents cannot pay for his or her education. While the student remains in school, interest on this type of education loan in accrues and is paid for by the government.

A parent education loan is a good choice for parents who don‟t want their children to end their college career in debt. These can also be guaranteed, meaning that parents don‟t necessarily have to have great credit scores to get a loan. Interest rates tend to be relatively low, but a longer repayment schedule means paying quite a bit of interest.

The private education loan almost always requires good credit. Many people use the equity in their house to take out such a loan. Unlike the parent and student education loan, the private education loan is not usually need based. Often when students apply for financial aid, they are told they, or their parents, make too much money to qualify.

The federal government does not guarantee the private education loan, and payments usually begin on the loan right away. These loans usually have the highest interest rates, as well. If they are taken as part of refinancing a home, they may be more economical.

Because students frequently leave college heavily burdened with debt, it is important to consider how much of a loan one really needs. The less debt contracted the better. Before applying for an education loan, evaluate the other types of aid that may be available. There are numerous scholarships that go unclaimed each year because no one applies for them. Research into scholarships that are not need-based can often help defer some college expenses, lessening the amount one needs to borrow.

A strong banking sector is important for flourishing economy. The failures of the banking sector may have an adverse impact on other sectors. This Study will help us to understand the education loan about banking services and products. In this background this study tries to analyze the educational loan interest rate towards banking services.

In this research I have adopt the Descriptive Research method only for PNB, Syndicate bank and SBM Education loan schemes for just compare the offer document of these three banks.

Research Methodology is an important part of every project. Because it help in knowing how to select representative sample from the world or the general population, the right research tools and techniques to complete the research.

To satisfy the customer the study of consumer behavior is important because he is the king. The Research Process is based on survey method, so in order to implement the survey we go to Service Provider and the Services user which is the customers. 

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