You have completed graduation and now you want to study abroad to have access to quality education and global skills. International exposure can also help you in finding better employment opportunities giving you a leg-up in the career market. However, when it comes to higher education of the biggest challenges is financing the course given the escalating cost of education not only in India but across the globe. For example: a top university in the United Kingdom currently costs you around Rs 50 lakh for a year while an average university would be around 15-24 lakh a year. Moreover, studying abroad involves the element of foreign exchange (forex) rates, as a depreciating rupee can compel students to shell out more money to complete their MBA. Apart from exchange rate fluctuations, it can also take some time to orient oneself to how much their money is worth in the destination country as forex rates can complicate international money transfers. For instance, a single £50 note is nearly equivalent to Rs 4,400 today.
With so many complexities involved, it is very important that your finances are planned properly so that you don’t miss out on the chance of getting quality higher education from a coveted institute. To help you guide through the maze here are some of the options by Ankit Mehra, CEO and Co-founder of GyanDhan to fund your education abroad:
Scholarships: Scholarships are the easiest way to fund your education, which reduces the student’s financial burden. With no obligation to return the money, scholarships cover a range of expenses that make pursuing a course affordable to students from different strata of society. Both Indian and international universities offer different types of scholarships: need-based, merit-based, and scholarships based on achievements in extracurricular activities.
Loan scholarships: Some organizations offer loan scholarships wherein the scholarship amount is provided as a loan that the student has to pay back. The rate of interest is the lowest compared to education loans. However, the amount of loan scholarship is not expensive and offers limited financial support.
Education loans: Student loans cover the entire cost of education in most cases. Lenders, such as public banks, private banks, Non-Banking Finance Companies (NBFCs), and international lenders, offer varied loan products for education in abroad. The loan amount can vary depending on the institute and the security pledged by the borrower. Apart from the lenders mentioned above, a few overseas universities, like Harvard University, also offer student loans to their incoming students if they are unable to meet the cost of education.
Personal funds: Students are generally discouraged from using personal funds, contingency funds, or retirement funds of their parents. These funds can be used better if invested in schemes with higher returns. However, students often rely on personal funds to finance a part of their education costs to reduce their dependence on education loans.
Summer internships: Full-time students hardly get the time to opt for part-time jobs on and off campus. However, according to the skill set and the target company, students can earn handsomely during their summer and winter internships. The supplementary income helps cover some costs of the degree.