Cash woes? A personal loan to the rescue!

    Why Should You Take an Education Loan?

    It is daunting to know that the cost of education has periodically increased. You may need thousands of dollars to get a degree from National University of Singapore (NUS). The private education institutions may charge even more. However, most of the financial institutions in Singapore provide a student loan to help you in this situation.

    Let’s take a look at why it is not always a good idea to use your savings to pay for your education. Here are a few circumstances when you must go for education loan even if you have cash:

    If You Want to Study Abroad

    When you study abroad, there may be certain reasons due to which you may require money, such as:

    • Student lodging costs could vary.
    • House rent may increase if you stay outside the campus.
    • Currency exchange rates can increase any time.
    • Policies of a foreign government can change resulting in additional costs.

    Hence, it is always a good idea to keep your saved-up money and take up an education loan.

    Unexpected Medical Costs

    If you are suffering from any medical condition which is not covered by your insurance policy, you should always save money for any healthcare expenses. If you spend your savings on education fees, during an unfortunate medical emergency, you may run into a financial crisis.

    Opportunity Costs

    You may need cash in the following situations as well.

    • After your education, you may have a business plan which requires money for investment.
    • After your graduation, you may not get a job immediately, so you will need money for your expenditure.
    • You may get a job opportunity which you may not be interested in. In such cases, instead of taking up the opportunity for managing your expenses, you can wait for the right opportunity if you have a financial backup.

    You Have Dependents

    If you start education at a late stage of life, you may have dependents to take care of. Whether you have kids, elderly parents, or any other dependant, it is a good idea to keep your cash for any unexpected situation and take an education loan for your fees.

    Some people may choose to take a personal loan for their education fees without understanding the importance of educations loans and their interest rates. Taking a personal loan for education is not a great idea because personal loan interest rates could be higher than those of education loans. You must always do a complete research on education loans from various banks in Singapore, to compare the interest rates and benefits.

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