Student Loan

Student loan refers to loan offered to students for assisting in the payment of the costs of professional education. These loans are generally issued by government for lower interest rates. At times, student grants that have no repayment are also added to it. In each country, the student loan plans vary to a great extent .

In Australia, a unique scheme called higher education contribution scheme is used by the students for paying university courses. The criteria for using this scheme is securing higher rank in the secondary school final examination. This scheme I basically subsidized by the government and relatively cheaper than full-fee paying.

Similarly in US, financial aid is provided by several methods. Either the loans are offered to the students through federal students loans directly. This requires payment only after graduation. The second kind is federal student loans made to parents. The amount borrowable is not much limited but payment is required immediately. Private student loans that are made to parents or students. The limit is higher and payment is also not immediate but interest will start accumulating immediately.

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