A student loan serves as a valuable pathway for students and their families to secure quality education. They give the necessary financial support for pursuing academic aspirations without immediate constraints. In this regard, an EMI calculator can also help you plan EMIs in advance and in a better way. However, besides loans, you can also get leverage from government scholarships to ease your finances by reducing the overall cost of education.
On that basis, this blog presents five top scholarships that reduce the burden of managing your education loan.
Table of Contents
1. Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP)
The PM USP scheme is made for students from the economically weaker section. Under the Central Sector Interest Subsidy component, the government pays the entire interest accrued on education loans during the moratorium period. The moratorium period refers to the total timeline of course duration plus one year after the completion of the study. In addition, the family income of the student must not exceed ₹4,50,000 per annum.
For the PM-USP, a maximum of the Central Sector Scheme of Scholarship is given to students pursuing graduate/postgraduate studies. This scheme also gives up to ₹12,000 for the first three years of the undergraduate course and up to ₹20,000 per annum for students pursuing postgraduate studies. If a course is four or five years long, the scheme offers up to ₹20,000 to 4th and 5th-year students.
2. Post-Matric Scholarship for SC Students
These education scholarships are available only for students in India, and the awardees are selected by the State Government/Union Territory to which the applicant actually belongs. The Post-Matric Scholarship for SC Students is applicable to all students who are currently beneficiaries of the scheme as well as fresh admissions. However, the family income of the student must not exceed ₹2,50,000 per annum.
Here are a few benefits given to students who successfully get the scholarship:
| Category Of Courses | Hostellers (Yearly) | Day Scholars (Yearly) |
| Group-1 Degree and post-graduate level professional courses | ₹13,000 | ₹7,000 |
| Group-2: Other Professional Courses leading to Certificate, Diploma or Degree | ₹9,500 | ₹6,500 |
| Group-3 Graduate and Post Graduate courses are not covered under group I & group II | ₹6,000 | ₹3,000 |
| Group-4: All post-matriculation (Post Class X level non-degree courses). | ₹4,000 | ₹2,500 |
3. National Fellowship & Scholarship for Higher Education of ST Students
This specific scholarship offers financial assistance to meritorious students from the Scheduled Tribes. The scholarship can help such students to pursue higher education (M.Phil or PhD) after completing a post-graduate degree (Master’s degree). The total family income of the eligible students should not exceed ₹6,00,000 per annum.
Besides, the National Fellowship & Scholarship for Higher Education of ST Students brings the following benefits for students:
- For M.Phil courses, students may be eligible for up to ₹31,000 as a monthly scholarship and up to ₹12,000 as an annual contingency.
- For PhD courses, it gives up to ₹31,000 monthly scholarship for the first two years. It also gives up to ₹31,000 monthly scholarship for the remaining 3 years and up to ₹25,000 as annual contingency.
4. Pragati Scholarship Scheme for Girl Students
This scholarship is for female students who are in the 1st or 2nd Year of the technical diploma course in an AICTE-approved institution. The scheme allows up to two girl children per family to get its benefits. The benefits are available for a maximum of 3 years for students admitted in the first year and a maximum of 2 years for second-year students admitted through lateral entry.
In order to be eligible for the scheme, the family income of students must not exceed ₹8,00,000 per annum. The scheme offers up to ₹50,000 per annum for every year of study.
How Scholarships Directly Reduce Education Loan Burden?
Although all scholarships have family income caps, students meeting those criteria can get extensive assistance for the repayment of student loan debt. Here’s how scholarships can help you reduce the student loan burden:
1. Reduction in Principal Loan Amount
While the scholarships cover part of tuition or academic expenses, they help to reduce the principal loan amount through yearly or monthly financial support.
2. Lower Interest Outgo Over Time
Student loans accumulate interest during the study and repayment periods. Steps taken to reduce the loan amount assist in offsetting the student loan interest rates. With this reduced interest rate, you can preserve the borrowed loan amount for future expenses or use it for other education-related expenses.
3. Reduced EMI After Graduation
Since you have made significant interest payments on your student loan, you may get a lower EMI to repay the loan after its moratorium period. A lower EMI helps to reduce your burden to repay a higher student loan amount. With this interest savings, you can use the remaining amount to invest in yourself and provide financial support to your family members.
4. Covers Accommodation and Other Expenses
Uniforms, books and accommodation are integral parts of pursuing higher education. When you have a scholarship along with a student loan, there is additional financial support. As a result, you don’t have to rely only on the loan amount and can save up for repayment in future. Additionally, you might not have to take a huge loan, as the scholarship acts as a safety net and helps you concentrate on academics.
Wrapping Up
The combination of scholarship with an education loan is a smart strategy that can assist you in minimising the financial strain. Besides checking the benefits, also check their eligibility criteria in terms of your educational requirements, family income and other related factors. Considering all of these aspects, select the most appropriate scholarship and use both loan amounts and scholarship funds mindfully to make your education extensively valuable.
FAQs
1. What documents are usually required for scholarship applications?
Some of the common required documents include academic certificates, income proof, identity proof, and bank details. The actual requirement may differ for each scholarship.
2. How can I track the status of my scholarship application?
Most of the scholarship programs have an online tracking system that works with your application ID. Through this step, you can effectively track your scholarship application.
3. Do scholarships cover expenses other than tuition fees?
Yes, some scholarships may support costs for books, accommodation, and other academic expenses. Check the benefits of each scholarship for the actual offerings.
