3 Ways to Finance Your Education Abroad

So you have decided you want to go abroad for the next stage of your education and start a career in a new country. You have the requisite academic qualifications and you have scored a solid score in your IELTS exam. You are all set to go…..except for one small thing. 

Money.

Tuition fees alone add up to around INR 17-20 lacs per year. Add to that the high living costs abroad and you are looking at a good INR 25 lacs per year. A Bachelor’s degree in countries like Australia or the UK is typically 3 years long so that essentially boils down to INR 25 lacs per year all inclusive, adding up to a whopping INR 75 lacs for the entire 3 years of the course.

While we all may want to get a full scholarship and make our parents proud the reality is that scholarships, especially for UG programs, are extremely rare. If you are finishing school, you are unlikely to have much savings of your own. At this point, it is worth having a conversation with your parents about any funds that they may have aside for your education and what they are comfortable spending on an yearly basis. 

If you are a parent, then do give this a serious thought because it will influence whether  or not your child will be able to have a remarkably different life ahead or not.  

So here are three alternative ways of financing overseas education that will make it surprisingly affordable!  

Source 1: Student Loan

Education loans are a great way to defer the huge expenses that you have to incur now to a point of time when you are going to be more than capable of paying it from your own income. For example, if you decide to take a loan of INR30 Lakhs, the EMI to be paid once you graduate will be <20% of your monthly salary making it an affordable and smart option for anyone.  

Today, overseas education loans have become very popular with plenty of options offered by PSU banks, private banks and NBFCs. Here are some factors you need to be aware of –

1. Rate of interest: can range from 8 -12% depending upon bank
2. Payback period – can be up to 10 years
3. Collateral requirement – Typically need to show property worth 1.5 X loan amount
4. Repayment – only Interest payment starts from time of disbursement; principal repayment after graduation

Considering all these factors you can plan for a loan amount, which keeps the interest payment affordable for your family, while you study. 

Source 2: Part time income 

In most countries, students are allowed to work while on their student visas. For example, in Australia you can work for 20 hours a week while studying and more during the breaks. In most countries, students can earn around INR 1,000 per hour quite easily. Depending on how much you choose to/are able to work, while staying within the limits of your student visa guidelines, you can earn anywhere from INR 50-80K per month or roughly INR6-8 lakhs per year. 

What this means is that your living expenses can be largely paid off by you directly without adding any financial burden on your family.

Source 3: Hybrid Programs

Hybrid programs are those that you can start in your own country and then finish overseas. They are an extremely effective way of reducing your cost of education without compromising on the quality or job outcomes.  

The WorldGrad offers exciting hybrid programs which allow you to start online and complete on campus at an overseas university. Even if you choose to do one term online, it can help you save INR10 Lakh upfront through reduced tuition fee and zero living expenses. These  programs are designed using the overseas institution’s curriculum and with international teachers. What’s more is that these online programs also prepare you for success as they bridge the educational gap between local and international education. As you would imagine, you don’t want to fail and repeat courses overseas which is only going to add to your financial burden and stress. 

Conclusion: 

Studying overseas is correctly perceived to be expensive but by making some smart choices, you can make it quite affordable. As we saw, a INR 75 Lakh program can be reduced by INR10 Lakh simply by starting online. Then you can avail of a student loan of INR 20-30L which is largely repaid upon graduation over 7-10 years. Lastly, you can work part-time as you study and fund your living expenses. This means, you need only INR10-15L saved up to go overseas! 

To know more about The WorldGrad and to understand how to plan your finances based on your specific constraints, please visit us at www.theworldgrad.com or contact us at 079-410-56968. You can also write to us at enquiries@theworldgrad.com to speak to one of our experts today.