Planning for college requires effort and research. One of them is Education loan. It’s a type of loan designed to help students to pay for their studies. . However, education loans come in different packages depending on the lender. Most students will choose the provider that offers the highest loan and thinking that’s the best option, when actually it will burden us in the future. So, how do we determine how much to borrow for our education loan?
Before applying for a student loan, you need to calculate all your expenses. These costs include the total cost of tuition, textbooks and study materials. You also need to include the cost of rent and transportation if you are from outstation. For example, if your rent is $50/month, multiply that by 12 and then multiply by the number of years you study. The total amount would be roughly about $ 2,400. As for transportation, you can look at how many liters of gas you use per week and multiply it by the years you’ll be in college. You need to include the cost of utilities too. You can take the bill you have and multiply it by the years you spend in university.
Next, calculate food expenses. Consider how much you spend monthly, then add it to your budget list. You also need to include a budget for unforeseeable health emergencies; otherwise, get health insurance.
Other expenses that should be calculated as well are monthly phone bills, entertainment or gatherings, and let’s not forget for personal hygiene. These are usually overlooked because they don’t seem a lot, but after a total of four years, it’s a huge sum.
After calculating all these costs, you will know how much money you need when applying for a student loan. It’s recommended that you shouldn’t take much more than the amount calculated and try to find out as much as possible before applying for a loan.
Do you calculate all these factors? We hope you find these points useful when applying for a student loan.
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