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Savings and Scholarships to Finance your Children’s Education

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Education is gaining more importance in today’s society. Educated will get more opportunities and respect from the society. But looking at the tuition fee for courses is disappointing. But if you properly plan and start early, you can definitely make it.

There are various options available to make plans to save money for your children's education. Articleinput.com lists many useful resources / articles available for further reading. These articles concentrates on various options available for parents to finance their children’s education. There are various option available to fund education like scholarships, Buying bonds, Investing in mutual funds, children’s growth funds, rewards programs, Education Loan etc.

One good option is Cash in a bond tax-free. For every birthday buy a bond in the name of your children. By the time they grow up and join college, you will collect enough money to finance their education.

Bonds are financial instruments issued by companies and govt. at a discounted rate. That means the bond with value of 100 will be sold at a less price for eg. 80. It has a maturity date. After that date they can cash in the whole amount. If  you buy bonds on each and every birthday of your child by the time they grow and ready to join the college, they can sell those bonds and finance the education.

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Government will bear interest of education loan in moratorium period

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This is a good news for middle class student community of India. As per the article published in Rupeetimes.com, the Prime Minister's Office (PMO) and the Ministry of Human Resource Development (MHRD) is planning to bear the burden of interest component of education laons during the moratorium period.

What is moratorium period
Till students complete their course and get the job, they will not be paying the interest. However the interest is calculated and added to the principal amount. So there will be a gap for students to complete their course and get the job and start repaying the laon. This time period is called moratoriam period. The interest accrued in this period will be repaid to banks by government of India once this scheme is implemented.

As per the article, this facility is available to only those who have annual income less than 2.5lakhs and avail education loan for professional and technical course. However, one student can avail this facility only once. i.e you cannot avail this facility for both graduate and post graduate program. Any one course you can opt for this facility.


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