Types of school loans
Public and private education loans are different in nature. The characteristic of public loans is that they have a fixed interest rate and a low interest rate. Private loans have relatively loose income restrictions, loan caps, and usage restrictions, but guarantee fees and interest rates are higher than public loans. However, the interest rate preferential campaign is held depending on the season for private school loans, so the aim is from autumn to spring. The official version of the education loan is the general education loan. This is financed by the Japan Finance Corporation. In addition, there are pension education loans handled by pension welfare associations in each prefecture and postal loans handled by post offices. The target audience is parents of students, and there are restrictions on household income and other factors. Not only can it be used for university, graduate school, and junior college expenses, but it is also approved for use in educational facilities such as high schools, vocational schools, preparatory schools, high schools of special needs schools, and other vocational ability development schools. Up to 2 million yen will be financed depending on the annual household income. Private education loans come in a variety of products from local banks and labor banks. Private loans have a limit of about 3 million yen or less, and there are many types with loose restrictions. Interest rates are also variable and fixed, and repayment plans and collateral contents vary depending on the product. When taking interest rate incentives, some banks take into account what transactions they have made with their general account. In deciding the limit, it seems that we may examine the usage status of other loans, car loans and cashing status.