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Want To Study Abroad? Your Alternative Funding Option
Intelligent Overseas Education Financial Update: The program’s total cost, including tuition, housing, living, and travel expenses, can be twice the price of a traditional Indian wedding ceremony.
Studying at a top-tier university in another country is no longer just a trend or something reserved for those with significant financial resources. It’s all because the expanding appeal of a global career and lifestyle, the increased spending power of the middle class, and the explosion of student financing options are all contributing factors.
The pandemic appears to have had no effect on India’s ability to send students to various countries, propelling it to the second-largest country in the world. According to a press release issued by the Common App in January 2020, the number of international student applicants rose by 10% (with Indian applicants seeing a 28% increase) compared to the previous academic year.
So, how are all of these students able to fund their dreams of studying abroad? Do you know? A college education can be twice the price of an Indian wedding because of the tuition fees, housing, living, and travel expenses.
International students who choose to bootstrap their education abroad, according to opendoorsdata.org, account for more than 85 per cent of all international students. A student’s family’s money and assets may help finance their education, while scholarships and part-time work help cover the rest. However, without a backup plan, the entire family is put in danger.
Secured/collateral-based education loan
Many public and private banks and non-bank financial companies (NBFCs) provide education loans in exchange for a specific amount of collateral, such as a house or land. This is a methodical and structured approach that has numerous advantages, including tax-saving benefits. In most cases, loan repayment begins six months after the degree is completed, regardless of whether or not you have a job. Loan repayment must be completed within seven years of completing the degree. As a result, this is something that students should consider before enrolling in a course.
There is a significant difference between banks and non-bank financial companies (NBFCs).
Banks typically cover approximately 85-90 per cent of spending, such as tuition and fee reimbursement, lodging, travel, and lab fees. NBFCs, on the other hand, provide 100 per cent coverage for the cost of attendance (CoA).
Moreover, banks may impose a limit loan amount for considerable amounts surpassing 20-30 lakhs, based on the program and university. NBFCs do not have a limit on the number of loans they can make. While NBFCs do not provide interest rate concessions for women, banks may do so in certain circumstances.
Alternative education loans that are not secured or require collateral Unsecured or collateral-free education loans are available from various financial institutions. They are not required to post any kind of collateral. This is based on your financial circumstances, such as your credit score, and is given to you. However, it may be more time-consuming and expensive because this is a more risky proposition for the lender. You may be charged a higher interest rate for the same loan amount than you would otherwise be charged. Students may also be denied favorable repayment terms as a result of the same circumstance. Many banks and non-banking financial institutions (NBFCs) require you to pay interest while you are studying.
International financial institutions Educational loans from international financial institutions are becoming increasingly popular among students. They may offer loan amounts in different currencies with or without a co-signer or other form of collateral. Rather than using historical data, they calculate interest rates based on the loan applicant’s future repayment potential in the future. As a result, they can offer lower interest rates than banks or non-bank financial institutions (NBFCs).
SIP INVESTMENTS
This option is dependent on how early you begin and is more suitable for working professionals than students who wish to pursue postgraduate studies. It is also more expensive than traditional investments. A systematic investment plan (SIP) is an excellent way to invest and save money over time for salaried professionals. The frequency with which investments are made is at the candidate’s discretion, allowing them to take a more flexible approach. Since their inception, SIPs have gained significant traction in the field of postgraduate student education financing.
Every student is an individual, which is the most essential thing to know about them. As a result, it is critical to weigh the advantages and disadvantages of each option before proceeding. Aspirants and chosen students having the chance to connect may assist establish a link between materials and real-life circumstances, decreasing the number of wrong choices made!
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