Education is a crucial process to success, no matter where you live. If you are from India, quality education is important for the future of your family. As the cost of education skyrockets to accommodate higher quality of instruction, parents need more money than their finances and corporate cards can handle.
With that said, school fee financing plays a vital role in pushing students to comfortably work their way towards university education. For those who don’t understand how it works, it can sound like a big undertaking. Here’s everything you need to know about fee financing and why it’s your best solution for your children’s growing educational needs.
What is Fee Financing?
Fee financing is the process of borrowing from financial institutions or private lenders to pay for your education or your child’s education. This chunk of cash usually goes towards university education or higher learning like a master’s or doctorate degree.
In some situations, families take school fee financing for their primary or secondary education children. These include putting children into private schools, in an effort to build a strong foundation for their children’s learning. The loan is almost similar to student loans in the United States but on a smaller scale.
With the fee financing model, the financial institution pays for a certain amount of money, usually as much as an academic year’s worth of school fees in advance. Families can also opt for a partial loan, which can go anywhere between 5,000 to 10,00,000. This helps parents create a bigger breathing room for their financial planning.
Families can then pay the fee back within a few months, upwards to a year in zero-cost equated monthly installments (EMI). With zero-cost EMI, families can pay off their dues without interest during the payment period. Some even provide low-interest rates for their financing to encourage borrowers to maximize the service.
What Are The Benefits of School Fee Financing?
There are several benefits to fee financing, especially for those looking for a way to pay for their children’s entry into quality educational institutions. Until recently, most parents and students only had the option to self-finance education out of their pockets. There are also many types of education loans available but only for higher education.
With that said, school fee financing creates several win-win situations for families who want to give a good education to their kids.
Families Get More Financial Flexibility
With fee financing paying for their kids’ education, parents can choose the best schools for their children. In India, most high-quality schools are locked behind high tuition fees. For you to afford superior quality education, you need to be in a well-paying job. Even then, the amount of money you need may tighten your family budget.
Fee financing allows families to pay their children’s education in full now and break it into smaller, easier payments later. Parents will be able to fund their children without a heavy burden on their budgets. This comes as a perfect way to create a more flexible budget for families, giving them a chance to prioritize other family matters.
Most disbursement options for fee financing schemes usually don’t require collateral or co-signers. They aren’t based on existing credit with the company too, so you can shop around and find the best fee financing option you can find.
Good Fee Financing Schemes Offer Zero-Cost EMI
One big issue with student loans is the amount of interest they incur. These interests grow over time, which can put the average family into debt for a long time. This problem doesn’t exist for those who follow through with the fee financing model.
The best fee financing schemes use zero-cost EMI for their loans. When a loan is zero-cost, this means you pay back what you owe on a fixed installment basis that you set as you request financing. You can set it as short as you want or as long as possibly allowed by your private financing firm.
With fixed installments, you get a good idea of how you can budget your money around paying off what you owe. The installments provided are only for up to as much as you can handle to pay.
Fee Financing Models Encourage Better Quality Education
Fee financing models pave the way for high-quality education for children. In most situations, this benefit is a direct result of the availability of additional funds for Indian families who don’t have a way to pay the lump sum of their child’s education. Whether it’s in primary, secondary, or higher education, fee financing opens the doors for more opportunities.
The quality of education in India varies depending on the educational institution you pick. At the same time, the educational institution you choose will help predict the future of your children. As we all know, good education in India can bring you closer to a better life in the future.
With fee financing, families will get a chance to afford better quality education. Parents get the right amount of flexibility to pay for their kids’ education while children get to go to better educational institutions.
Fee Financing Helps The Education Sector
The fee financing model does not only have a positive effect on the families who afford it but on the educational institutions that get paid for it too. The upfront payment gives schools and universities the much-needed financial infusion they need at the start of the academic year. This goes into funding the needs of school to promote higher quality education for their students.
Depending on the school that your children go to, many make do with what finances they can get. As this financing solution increases the number of people paying for the tuition fee in full, schools can leverage the influx of finances and improve their work.
Upfront payments also mean a lower dropout rate for children, as their schooling is already paid for. It increases enrollment for parents who are not feeling the burden of expensive tuition fees.
Get Fee Financing For Your Child’s Education Now
School fee financing is a new-age solution that helps families enjoy easier, more flexible payment towards the education of their children. Whether you have a small child that you want to give a good foundation during primary education or a young adult that needs a good uni degree, fee financing helps.
If you want financial freedom and flexibility, fee financing is for you. Find the right financing institution that gives zero-interest, zero-cost EMI that can help support you and your family when you need it the most.