Are Education Loans Worth The Effort?

Quality education is a must for a complete and successful life. For many, it is equivalent to graduating from a top institution. The cost of education is, however, increasing rapidly. In fact, the cost of studying at reputed institutions is already quite high. Keeping this in mind, parents, who want to provide their children with the best possible education, invest their money in mutual funds (MFs), fixed deposits (FDs) or unit-linked insurance plans (ULIPs), for the long term. But despite all this, one may still encounter shortage of funds. An education loan, therefore, plays a vital role in such a scenario by helping to bridge the gap between the shortfall and the required amount. According to studies, the cost of education is increasing at an average of 15 per cent per annum. The tentative cost of an MBA is up from Rs2.5 lakh to Rs20 lakh in 15 years. So if a couple starts...