This LEGAL Jurong East money lender debunks 5 myths about study loans
Higher education can open doors to rewarding careers. However, even with government subsidies, scholarships and sponsorships, tertiary and college fees are still very much expensive and can cause a huge dent in your wallet, especially if it is a four-year university course you’re applying to. To ease the burden, there are study loans available that students can opt for. And no, they’re not all from banks – there are also legal money lenders in Jurong East, Singapore like Cash Direct, which offers flexible student loans. This best licensed money lender in Jurong East debunks five myths about study loans.
Myth 1: “I need to go to a bank for student loans”
No, you don’t need to go to a bank or financial institution to secure a student loan. There are plenty of licensed money lenders that provide study loans in Singapore. Study loans are considered as a necessity or purposeful loans, which are tax-free loans that have a fixed interest rate and are usually less than that of other loans (such as personal loans).
It’s vital to understand that there are different types of student loans in Singapore that have different terms. Before investing in a loan from the best licensed money lender in Jurong East, it is necessary to let them know the loan that best suits your future repayment ability.
Myth 2: “I can’t get a study loan if I don’t have a salary”
If you are not working currently and want to obtain an education loan, you can get a working parent or close relative to accept the loan on your behalf. Usually for those under 21, you will need a guarantor in order to take such loans. For those who will be studying part-time while working, you need to verify that you have a constant source of monthly income and are eligible for education.
Myth 3: “I can always pay off student loans later on when I’m more successful in my career”
Waiting to pay off loans only when you get your dream salary might not be such a good idea when interests are accruing. Ideally, you would want to pay off your loans as soon as possible so that you won’t accumulate the interest and end up paying more than you need to. It is best to look at your repayment policy to know whether you need to start making payments for the loan from the moment you graduate or before.
If there is no interest charged before graduating and you are able to make repayments earlier, it is best to do so as soon as you can, in order to avoid the interest fees incurred at the later part of the repayment. For example, if you’ve already paid half of your $40,000 loan before the 3% interest kicks in at the end, you would only need to pay 50% less interest.
Myth 4: “I’ll never be able to pay off my student loans”
This is not always true. There are ways for you to refinance and budget accordingly from the start. You first need to know your monthly spend so you can set a monthly budget. By budgeting well and automating your payments, you would be able to pay for the necessities first, including loan repayments and set aside enough for emergencies before splurging on luxuries. Most student loans allow you to make additional payments without penalties, so use any income from part-time work or side gigs, to consistently reduce this amount. Remember to adjust your instalment amount accordingly if your financial situation improves.
Myth 5: “I can’t take a personal loan to pay off student loans”
Gradually chipping away at your student debt might seem the most obvious way forward, but it’s not your only option. There are other financial options to pay off student loans – including taking a personal loan from a Jurong East money lender to pay off the lump sum. Depending on your financial situation, you may find it suitable to take out a personal loan to settle a portion or the entire student debt upfront against a more favourable interest rate and term. This might seem counterintuitive, but restructuring according to personal loans with better interest rates can help you save cost as opposed to staying stagnant and accumulating interest.
Interested in securing a student loan from a legal money lender in Jurong East? Find out more about loan options with Cash Direct Pte Ltd. We take pride in being one of the best Jurong East money lenders in Singapore.
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