How to Clear Your Education Loan Fast
2. Should You Pre-pay Your Loan?
Prepayment of loan is another student dilemma. It’s sometimes very difficult to weigh the related pros and cons as they often confuse people. To most students, repaying the loan can be far more painful than the principal amount as the current education loan interest is around 12-14 percent. This is why students try to get rid of their loan payments faster. Still, the interest on education loan is tax deductible and this might bring some relief to parents. However, this advantage is significantly reduced if loan is pre-paid. So, students need to decide accordingly. Also, in case you do go repayments, read the terms and conditions properly.
