Discover Student Loans

Education is the backbone of the nation. Education is one of the basic human rights. Education helps in developing the inherent qualities of the individual. Education in the general sense is the acquisition of knowledge or skills. Without education it is not possible for any nation to stand tall in the world. Education is of immense importance to make our life famous. And this requires money. Several banks in the country provide a long-term loan to students. Which (Student Loan) is called student loan.

What is a student loan?

Student loans are financial loans given by banks to students to continue their studies. Banks provide these loans to students so that their studies do not stop due to lack of money.

A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school. It also differs in many countries in the strict laws regulating renegotiating and bankruptcy. This article highlights the differences in the student loan system in several major countries.

Why take a student loan?

In developing countries, the banks of the country give these loans to students or parents because the education of students from poor families does not stop. This loan is not only for poor families. Students from middle-class and upper-class families will also get the benefit of this loan.


Student (Student Loan) loan eligibility

Any person who is able to repay the loan can take an education loan People working in government or private institutions, whose salary is 12-18 thousand taka, are getting the benefit of this loan In the case of traders whose monthly income should be 50 thousand rupees Also any person between the age of 25 years to 60 years can take this loan as per eligibility. Applicants must have passed HSC as a minimum.


How to take a student loan?

If a parent or student wants to take a loan in the field of education, then he should know which bank provides this loan. Banks that offer student loans should approach any branch of the bank with all the necessary documents.

Just like any other loan, getting a student loan requires some documents. For example:

  1. National identity card of the person interested in taking the loan and the guarantor.
  2. Passport size photograph of applicant and guarantor.
  3. Paper photocopy of various utility bills (gas bill/water bill/current bill).
  4. The monthly income of the guarantor should be a minimum of 30,000 rupees. If the guarantor is a businessman, the monthly income should be at least 50,000 rupees.


Will Student Loans Be Forgiven?

Per the announcement, eligible students will receive up to $20,000 in student loan forgiveness. The exact amount varies depending on income levels and whether the student was a Pell Grant recipient at the time the loan was issued.

While the announcement was official, there’s still a chance that any student loan forgiveness through this specific program will get delayed or may not happen. Legal challenges could alter the timeline or may result in the proposed plan not moving forward, though.


Which is the best student loan provider bank?

Ans: HSBC Bank is the best student loan provider. This bank provides loans ranging from Tk 50 thousand to Tk 750 thousand or 4 times the monthly income of the borrower. The interest rate of the loan is 9% and the repayment period ranges from 12-60 months….



Federal student loan interest rates are established by Congress and listed in § 20 U.S.C. § 1087E(b). Because the interest rates are established by Congress, interest rates are a political decision. In 2010, the federal student loan program ran a multibillion-dollar “negative subsidy”, or profit, for the federal government. Loans to graduate and professional students are especially profitable because of high interest rates and low default rates.[35] Usually, the net flow of the default rate on student loans is strongly related to the nontraditional issuer and the flowing price of the tangible assets, unlike buildings or land.[clarification needed] However, in contrast to the positive correlation with the borrower, a change in the price normally leads to a negative influence on the default rate. These two aspects have been used to explain the Great Recession of student loan default, which had grown to nearly thirty percent.[36]


Who Qualifies for Student Loan Forgiveness?

Generally, any borrower with an income below $125,000 as an individual or $250,000 as a household is eligible for student loan forgiveness on their federal student loans of up to $10,000. For those who also received Pell Grants when they took out their student loans, they are potentially eligible for another $10,000 in student loan forgiveness, bringing their total amount up to $20,000.



Most college students in the United States qualify for federal student loans.[33] Students can borrow the same amount of money, at the same price, regardless of their own income or their parents’ incomes, regardless of their expected future income, and regardless of their credit history. Only students who have defaulted on federal student loans or have been convicted of drug offenses, and have not completed a rehabilitation program, are excluded. Borrowers from families with low income with separation are more likely to default than those from higher-income families. Also, borrowers entering repayment after their sophomore year are more likely to default.


Income-based repayment

The Income-based repayment (IBR) plan is an alternative to paying back federal student loans, which allows the borrowers to pay back loans based on how much they make, and not based on how much money is actually owed.[28] Income-based repayment is a federal program and is not available for private loans.[29]

IBR plans generally cap loan payments at 10 percent of the student borrower’s income. Deferred interest accrues and the balance owed grows. However, after a certain number of years, the balance of the loan is forgiven. This period is 10 years if the student borrower works in the public sector (government or a nonprofit) and 25 years if the student works at a for-profit. Debt forgiveness may be treated as taxable income but can be excluded as taxable under certain circumstances, like bankruptcy and insolvency. Loans forgiven through the Public Service Loan Forgiveness program are not considered taxable income…..

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