mention two financial obligations of a study loan
Mention two financial obligations of a study loan
Answer:
When obtaining a study loan, borrowers should be aware of their financial obligations. Two essential financial obligations associated with study loans are:
-
Repayment: One of the primary financial obligations of a study loan is repayment. Borrowers are required to repay the loan amount they have borrowed, along with any accumulated interest, within a specified timeframe. It is crucial to make timely payments to avoid penalties and maintain a good credit score.
-
Interest Payments: Another financial obligation related to study loans is the payment of interest. Study loans typically accrue interest over time, and borrowers must pay this interest in addition to the principal amount borrowed. Understanding the interest rate, whether fixed or variable, and the total interest amount due is vital for effective financial planning and loan management.