Despite Covid-19, 91% of Indian students choose to study abroad in 2021. The trend has been high for quite some years. As per Indian Ministry of External Affairs data, nearly 753,000 Indian students have registered abroad as of July 2018.
The dream of studying abroad is no longer being set back because it is expensive. Overseas studies weren’t as accessible earlier due to the expenses involved, but now, students from all sections of society are availing an education abroad. Sometimes, it is not possible for the parents to sponsor their child’s education, fully or partially. However, proper planning made in advance could make the vision real.
First, take a moment to rethink every aspect involved in overseas studies and then take a leap. Research on the new place living needs as you will be new to that place.
The Role of Educational Funds
The biggest hurdle for students planning to study abroad is finding the right time to start thinking about financial matters. Students and parents need to know that it is always advisable to proactively plan to avoid any last-minute hurdles.
Study Abroad Involves Cost
The cost of studying abroad varies depending on the location, the type of program, the duration of the course and your travel, visa and admission formalities and the cost of staying on the side of your expenses budget.
You can estimate your budget using the free finance calculator. Overall, financing is a basic need.
Financial Planning is Important
Studying abroad is your future investment. Like any other type of investment, it requires planning, careful management, creativity, perseverance and commitment. Early planning for your studies will enable you to prepare financially for your study abroad and take full advantage of it. If you set your career goals at an early age, you also work to achieve them financially.
How to Plan Your Finance
Here are a few insights to help in financial preparation to meet your next endeavour of studying overseas.
1. Do Right Planning
Well from the beginning, you must search extensively for accurate and authentic information regarding everything especially from an arrangement of funds to living and study expenses abroad. There are plenty of options to arrange the funds through financial institutions and banks.
Professional career consultants assist educational aspirants connect with potential financial institutions, investors and endowment funds.
2. Draw your Budget
Creating a budget that outlines how much you will spend each week on meals, souvenirs, travel and accommodation will help you plan your weekly needs. This approach could apply to a long term budget.
3. Consult Overseas Counsellors
Consult with genuine study overseas counsellors at your home institution so that they can help you reduce program choices by assessing your educational, cultural and financial fitness and personal preferences.
Before deciding to consider financial matters, it is important for the aspirant and their family to decide the budget. The aspirants can then calculate the total expenditure and plan accordingly. First, check how much self-funding is possible.
4. Self-Funding Option
Here, the student with his family is financially able to manage some of the expenses chalked out in the budget. The remaining can be managed by opting for an education loan or keeping other options such as scholarships, part-time jobs, etc. When choosing to self-fund, as part of the statutory requirement, official documentary evidence such as bank solvency letter, FD certificate, and bank statements will be required.
5. Education Loan
After you have reviewed your higher education plan and called for education in India or abroad, you need an educational fund.
An educational loan is one of the best ways to help students take advantage of higher education. This loan includes tuition costs and any other fees charged by the institution. The Government of India, in collaboration with the RBI and banks, provides low-cost educational loans to students studying in India or abroad. Most banks offer student loans at an interest rate of less than 7%, which is affordable.
Students must qualify according to the eligibility guidelines for taking advantage of the loan which assesses the institutions’ authenticity, approved programs, mortgage requirements, repayment terms, and so on. The Department of Higher Education, through the Ministry of Manpower Development, has started Vidya Lakshmi e-portal to guide students about various bank loan schemes.
6. Apply for Scholarships
Many institutes offer scholarship programs to ease students financially. If you are a studious and an outstanding student, you can apply to a number of scholarship programs.
Research and awareness of possible scholarship avenues will help you apply for benefits. Colleges abroad offer reserved grants and scholarships to international students. The Government of India also sponsors limited student space in special programs.
Find some prestigious scholarships for Indian students to study abroad.
7. Plan Securing Part-Time Job
A part-time job is a great way to cover your expenses while studying. Engaging in a part-time job will give you a real-world experience of working and earning money and taking responsibility at an early age. The goal of working a part-time job is to help you build your profile and help you learn and earn at the same time. Keeping this as a standby option also helps you become independent. This approach reduces your fund hassle.
Start saving early – Your savings don’t have to be huge; even the small amount of money you save every month will take some weight off your shoulders. You can also start a systematic investment plan (SIP), which will help you to invest a little money every month for your future. SIP investment is the most preferred option these days. These financial plans help you earn interest on your savings, which increases your education fund over time.
In summary, the ultimate focus of long-term goals is financial planning for your study abroad program. Adopt one or more of the above options that suit your financial needs to study abroad. If you are interested in making education abroad a life goal, then you should do good research and seek proper guidance.