How Will An Education Loan Impact Your Future

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How Will an Education Loan Impact Your Future?
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• When planning further studies, which include
  studying in a local institute or in an institute
  that is abroad, there are certain financial aids
  that can be used to help during this process.
  This loan for Indian education or loan for
  foreign education has a lot of consequences that
  can affect the future. In this article, we give
  you information that impacts the future when you
  use this financial aid.

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Affects Your Job Applications

• If you are applying for a job, there is a high
  possibility that the agency will conduct a
  background check on your finances to know if you
  have a student debt to repay. This is crucial as
  it will affect their decision to hire you in the
  first place. If you are approaching a high end
  working institute for employment, it is most
  likely they will do a background check to see how
  good your credit history is before hiring you.

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Affect the Credit Score

• When taking a loan for Indian education or loan
  for foreign education, you will have to repay it
  back in the course of the future. This will
  impact your credit score. The credit score
  depends on the monthly repayment until you have
  completely repaid the value.

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• If there is delay in a single payment, it will
  impact your score. This score in turn will affect
  all your future Student Loan Eligibility
  applications as the bank or the banking
  institutes will refer to your credit score before
  ensuring you are eligible for the loan
  application.

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Affects the Debt to Income Ratio

• Any financial advance will affect the debt to
  income ration which is commonly known as the DTI.
  This ratio comprises of the percentage of the
  consumers monthly gross income that is dedicated
  towards paying the debts. These debts will
  include principle, taxes, fees and insurance
  premiums. Once you have completed your education,
  you will settle down with an employment in the
  next few months. If during the course of time,
  you will apply for another financial application,
  the financial institution will look at your DTI
  ratio before determining your eligibility for the
  advance finance.

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Affects Your Financial Making Decisions

• The loan for Indian education or loan for foreign
  education normally takes several years to be paid
  off, depending on the terms and conditions of
  your application. If you have settled down with a
  job and are working to pay off this debt, you
  will have to alter your decisions when regarding
  your finances. This means that you will need to
  adjust and cut down on excessive and impulsive
  spending.

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• You will also have to live on a tight budget on a
  monthly basis until you can pay off the debt. If
  you repayment tenure is more than 7 years, you
  will have to pay off this debt almost half your
  lifetime. This will impact other decisions
  regarding buying a house or getting married.

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Source http//www.sooperarticles.com/finance-arti
cles/how-will-education-loan-impact-your-future-13
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