Blog Detail

Author:

Himanshu Jain

Published Date

18 March 2025

Category

Education Loans

Common Misconceptions About Education Loans for Studying Abroad (Debunked!)

Studying abroad is an exciting and life-changing opportunity, but for many students, one of the biggest hurdles is figuring out how to finance their education. Education loans can provide the financial support needed, but there are many misconceptions that often deter students from applying for one. In this blog, we’ll debunk some of the most common myths about education loans and explain the truth behind them.

Education loans for studying abroad aren’t as complicated or out of reach as they seem—debunking the myths can open doors to endless global opportunities!

2. "I Can't Get a Loan if I Don’t Have Collateral"

This is another common misconception. Many students assume they need to provide collateral—like property or other assets—to get a college loan or university loan for studying abroad. While collateral is required by some lenders, it’s not always the case. There are education loans with fast approval that do not require collateral. These loans, especially for students, are designed to make higher education more accessible without putting your family’s assets at risk.

3. "Applying for an Education Loan Is Complicated and Time-Consuming"

The process of applying for an education loan doesn’t have to be complicated or stressful. With advancements in technology, many lending institutions now allow students to apply for education loans online, streamlining the entire process. You can even check your loan eligibility through online portals, which makes it easier to understand the loan amount you can borrow, the repayment terms, and more. We, at The UniFund, try to offer student loans with fast approval, meaning you won’t have to wait long to find out if you’ve been approved.

4. "Education Loans for Studying Abroad Have High Interest Rates"

It’s true that the interest rate on study loans can vary, but they are not always as high as some people believe. Many institutions offer competitive interest rates on higher education loans, especially for international students. These rates often depend on factors like the loan amount, repayment period, and whether you have a co-signer.

5. "I Have to Start Repaying My Loan While I’m Still Studying"

Many students worry that they will need to start repaying their university loan or college loan as soon as they receive the funds. However, most education loans for studying abroad come with flexible repayment options, including the option to defer payments until after you graduate. This gives you the opportunity to focus on your studies without the added stress of loan repayments. In fact, many loans offer a Study Now, Pay Later option, which allows you to delay repayments until you’re employed and financially stable.

6. "I Can’t Get a Loan If I Don’t Have a Job"

Another misconception is that you need to have a job or income to qualify for a student loan for studying abroad. In reality, education loans are designed for students, and many lenders don’t require proof of employment as long as you meet other eligibility criteria. If you don’t have a job, having a co-signer or a guarantor can increase your chances of loan approval. Additionally, many lenders understand that students may not have full-time employment during their studies, which is why repayment is typically deferred until after graduation.

7. "I Can’t Afford to Study Abroad Even With a Loan"

Some students may believe that taking out a study loan won’t be enough to cover the full cost of studying abroad, which can deter them from applying. However, higher education loans for studying abroad are designed to cover not only tuition fees but also living expenses, travel costs, and other associated expenses. In fact, by taking out a university loan, you can finance your entire study abroad experience, ensuring that you don’t miss out on the chance to pursue your dreams due to financial constraints.

Conclusion

While education loans can seem overwhelming, understanding the facts and clearing up misconceptions can help make the process easier and more accessible. Whether you need a college loan, university loan, or study loan for your international education, there are plenty of options available that offer flexible terms, competitive interest rates, and fast approval processes. By doing your research, checking your loan eligibility, and comparing loan options, you can find the best solution to fund your studies abroad.

If you’re ready to take the next step, don’t hesitate to apply for an education loan and secure the funding you need to make your study abroad dreams a reality.