Education loan insurance costs are calculated based on the total amount of education loans that students have taken out. For example, if you have taken an education loan of ₹ 25 Lakhs, and the insurance amount is calculated as ₹ 50,000, the lenders will calculate a total loan amount of ₹ 30 Lakh and not ₹25 Lakh. The loan insurance fees are cheaper the shorter the loan term.