Miller's plan to halve the interest rate on student loans would apply only to the subsidized loans, which last year accounted for 5.7 million of the program's loans. Officials estimate that a move to reduce the interest rate to 3.4 percent would cost $18 billion over five years.

The trust collateral of approximately $1.2 billion consists entirely of FFELP consolidation loans authorized for origination under the Higher Education Act of 1965 and all subsequent amendments. The loans are guaranteed to at least 97% of principal and accrued interest by an eligible guarantor(s), depending on loan origination date, and are reinsured by the U.S. Department of Education up to the same amounts. JPMorgan Chase Bank, National Association ('JPMorgan Chase Bank') will act as master servicer and CFS-Suntech Servicing LLC ('CFS-SunTech') will act as subservicer for the loan portfolio. CFS-SunTech is a wholly owned indirect subsidiary of JPMorgan Chase Bank.

Monthly payments of principal and interest will be fixed for the first year and then recalculated once each year based on the interest rate applicable at the time of the calculation and reset on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. Minimum monthly payments will be at least $25.

Of course, in the case of the untimely demise of the parent, the child not only gets the sum assured on maturity, but the interim premiums are also waived. The return from such policies is relatively low (even after taking into account the bonuses declared), barely covering the inflation rate. So, it is possible that you may end up with a shortfall if education costs increase at a higher rate than average inflation levels.

Scheduled Caste/ Scheduled Tribe students get privileges, in terms of eligibility and margin money, for educational loans. For example, the eligibility criteria for them may be a pass class instead of a first/ second class. And sometimes, the margin money is nil, or lower than the normal amount. However, only nationalised banks offer these privileges. Even in the case of nationalised banks, it?s a good idea to check with them beforehand.

The course has to be for full-time studies (no part-time courses covered) for any graduate or post graduate course in engineering, medicine, management, or for post graduate course in applied sciences or pure sciences including mathematics and statistics.

If you have opted for a floating rate loan, you cannot switch to a fixed rate option mid-course. However, you can transfer your loan from one bank to another, if you find a more attractive offer. Normally, one per cent of the outstanding loan amount is charged to the borrower in the case of a loan takeover. You need to work out whether the amount you save by switching to a lower-cost loan is more than the switching cost.

The margin money is calculated from time to time on the outstanding balance of the loan. You will be required to bring in this margin money on a year-to-year basis, as and when the disbursements are made on a pro-rata basis.

Some banks require all or any of the following as pre-sanction documents for education loans. These should be furnished along with the completed application form. The relevant information of both the guardian and the student should be given when the student loan is jointly taken:

If you're an employed person and want to better your prospects, you can avail of a loan to get additional educational qualifications and/ or receive training in modern technology in India/ abroad. Are you eligible for an education loan? How much loan can you get? What expenses does the loan cover? Do you have to provide collateral for the loan? Here are some important things you need to know before you apply for a loan.