Did you know, International students can ‘Save BIG’ money by following the tips in this article. There are so many students who are still not sure how much student loan to get approval and how to save money in student loan interest. As far I know, students are paying around 12-13% Interest rate on student loan. But, if you utilize that money in proper way, you could save few thousands on the interest payments.
I followed the steps I’m going to outlined here and saved loads of money in interest payments on student loan. Lets assume you have student loan approved for $40,000 for 2 years of education.
First Year Tuition Fee
$20,000 ( $6,000 per semester tuition fee ). So for first semester after getting student visa, you can carry
$6000 + $4000 = $10,000
$3,500 will include cost to buy a laptop( $650 – $900), and living expense for 5-6 months.
Money Saving Part
You can save lot of money by following the steps listed below. there is now miracle or hidden tricks to save money on student loan interest. Just follow the steps listed below.
1) For first semester when you come to U.S, don’t carry entire 1 year fees with you. Because, after paying $6000 for first semester, remaining $14,000 will be with you in Checkings Account that will not pay any interest.
2) Carry only $10,000 with you, that will save ~$1,200 in interest.
3) After you reach university, open an bank account and deposit the Demand Draft or Travelers Check. Check here if you want to know how to carry U.S. Dollars.
4) Pay the first semester tuition fee $6000 and you will be left with $4,000.
7) Open an Online Savings Account with HSBC Direct and deposit $2000
HSBC Direct Savings Account will pay about 2.00% to 5.00% in Interest. So, your effective interest rate for the student loan for the time you have in Savings Account will be reduced to 12% – 3.00%= 9.00%. Savings account interest rate varies, so check with the bank for the current rate.
9) When in need transfer to money from Online HSBC Savings account to you personal checking account
10) At the end of the semester, you can ask your family to send the money for next semester tuition fee.
Students typically bring money for one full year and after paying first semester tuition fee, some $10,000 or more will be in Checking Account. Usually Checking account will not pay any interest. So, you are paying interest for the student loan in India while your money is at some bank in U.S. without making any interest.
Right now interest rate in HSBC savings account in 2.50%. Holding $10,000 for 1 month will earn around $25 per month. Over period of 2 years, you can save lost of money.
How to Access the Money from HSBC
Online Savings Account is same as Regular Bank account. You will have access to cash anytime through ATM Withdrawal or you can transfer the money to your existing bank account. Following details are from HSBC Bank Site on How to Transfer, Access the money, …
How do I make a withdrawals?
There are several ways:
Withdraw money at any ATM.
Electronically transfer funds to any linked account.
Request that we mail you a check by sending us a BankMail.
How quickly can I transfer money between linked accounts?
You can transfer funds between your HSBC Direct accounts instantly. The time it takes for transfers between other linked accounts may vary, but you can expect it to take up to three business days.
You can find more details about money deposit, transfer, account opening and more details from HSBC Direct or Orange Savings Account.
HSBC Direct Savings Account will pay about 2.00% to 5.00% in Interest. So, your effective interest rate for the student loan for the time you have in Savings Account will be reduced to 12% – 3.00%= 9.00%. Savings account interest rate varies, so check with the bank for the current rate.
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