Highlights:
• Savings, scholarships, and loans are commonly used to fund higher education abroad
• While scholarships are an inexact factor, savings and loans are something that people can plan for and examine
• Savings increase the aspirant’s net worth
Aspirations for international education are sometimes dashed due to the idea that it is a costly endeavor. The frequent misconception that studying abroad is only for the wealthy adds fuel to the fire. While studying abroad comes with its own set of costs, it is not out of reach with proper planning, as evidenced by data on international education.
According to a recent Redseer analysis, more than 7,50,000 Indians were studying abroad before the pandemic, spending $24 billion in economies outside India. By 2024, the number of students is predicted to climb to roughly 1.8 million, resulting in nearly $80 billion in spending.
The return on investment globally recognized degrees, and high quality of education make it an appealing option. Foreign education has grown more accessible as the demand for it grows, thanks to loans and expanded options. While Australia, the United States, the United Kingdom, and Canada once attracted the majority of students, Germany, Spain, France, the Netherlands, Italy, Dubai, and Malaysia, among other places, have recently become popular choices.
Financial Planning for Higher Education
Tution clubs and activity fees, health insurance, accommodation, meals, transportation, books and supplies, and personal and miscellaneous expenses, to name a few, are all part of the cost of attending an institution overseas.
The other headings frequently add up to an additional expenditure that is nearly equal to the university’s annual tuition bill. The tuition fee set by the university is covered through student loans. It also covers the entire cost of attendance as well as a round-trip ticket to the destination country in economy class.
Funding for Higher Education Abroad
Education loans take off the immediate burden of financing higher education. In India, various banks and Non-Banking Financial Companies (NBFC) offer student loans for higher education purposes. These organizations provide both secured and unsecured loans to students. While public sector banks offer unsecured (non-collateral loans) of up to Rs 7.5 Lakh, with a co-applicant, NBFCs like Avanse and Credila allow larger unsecured loans for the course duration of less than2 years. Some other NBFCs offer students a higher unsecured loan without collateral. These organizations, however, fund students who have received admission offers from the tier 1 institutions of the USA, Canada, UK, and a very few institutions out of North America.
Education loans alleviate the immediate financial burden of pursuing higher education. Various banks and Non-Banking Financial Companies (NBFC) in India provide student loans for higher education.
These organizations offer students both secured and unsecured loans. While public sector banks offer unsecured (non-collateral loans) of up to Rs 7.5 lakh with a co-applicant, NBFCs such as Avanse and Credila offer larger unsecured loans for courses lasting less than two years.
Other NBFCs provide students with a higher unsecured loan with no collateral. These organizations, on the other hand, support students who have received admission offers from tier 1 institutions in the United States, Canada, the United Kingdom, and a few institutions outside of North America.
Indian banks or banks based in India offer a higher secured loan amount (Rs 15-20 Lakh) to applicants who have a co-applicant with a minimum monthly salary of Rs 50,000. Prodigy Finance and MPower Financing are two online lenders that evaluate student profiles for collateral-free loans with no co-signers.
