Preparing for the great Indian dream of studying abroad

Amit Yadav

August 1, 2022
5:47 pm

Students from all around India will embark on their quest to fulfill their aspirations of earning a foreign degree from universities in the US, Canada, the UK, and other nations over the course of the next three months.

While some people have their plans already in place, others are still rushing to finish their loan applications or make final adjustments to their housing plans. This Moneycontrol overseas education special will illuminate the path ahead, whether you and your parents have resolved all financial and bureaucratic issues or your desire to study abroad is still a few years off. So let’s begin:

What are the most popular courses and locations in the field of international education today?

In addition to university rankings, other factors include the cost of living, post-course options, and courses. Education counselors claim that students’ interests are still being driven by courses in business, finance, and STEM. However, after COVID-19, however, classes in clean technology, medical device specialization, psychology, liberal arts, and other topics are also popular. According to study abroad consultants and students, the cost of living is another important consideration when choosing a destination city or country. For instance, UK students might not mind attending a reputable institution in New Castle rather than London. This is due to the fact that whereas the annual cost of living in London is approximately £15,000, it is only about £10,000 in New Castle. Universities’ rankings are a factor as well. Even while local rankings are important, worldwide rankings are a stronger indicator of a university’s worth.

What choices do I have for paying for my international studies?

Counselors advise that the ideal strategy is for parents to start saving for their children’s education well in advance. Full or partial scholarships might provide great relief. While student loans can cover any gap, it is best to take out the smallest loan feasible to ease the stress of payments.

How should parents put money aside and make investments for their kids' education?

The majority of banks include the cost of study materials, health insurance, and living expenses in education loans. Be clear on the number of years till the objective and the planned corpus size before beginning the investment process to build an education corpus for your child. Start by examining the current tuition prices at prestigious universities. According to experts, while determining the cost, one must account for annual currency depreciation of about 3% and inflation of about 4%. Your investment horizon will be longer if you start earlier, allowing you to routinely invest in equities and achieve returns that can safely outpace inflation. Experts advise investing in well-managed, diversified equity mutual funds using systematic investment strategies (SIPS).

When should I begin submitting scholarship applications?

Do your research on the school you have chosen for your short list’s scholarship application deadlines. There are often three to four application cycles for institutions. Usually, a budget is set aside for scholarships. The likelihood of receiving a scholarship starts to decline in the third and fourth rounds as institutions get closer to using up the allotted funds. Therefore, it is best if you apply in the first or second round itself. So, by July of this year, you should start applying for scholarships if you intend to enroll for the fall 2023 intake. Anyone who is truly seeking scholarships needs to start early and do extensive study.

How will a bank assess my application for a student loan? What costs can a student loan be used to pay for?

Because the amount of an education loan varies depending on a number of factors, including the country, your course, and the university, banks or any other financial institutions that offer loans process loan applications after reviewing your admissions letter. The collateral you provide is also important. Typically, a parcel of land is not accepted as a valid collateral by financial organizations. When making investments to support their children’s aim of studying abroad, parents need to be mindful of such hazards.

For school loans, the majority of banks pay for living expenses, health insurance, and the price of textbooks. Some banks will additionally pay for students’ travel, laptop costs, study abroad trips, and other costs related to finishing the course. However, your education loan will not cover these costs if you choose to sign up for outside coaching. The expense of a vacation, the purchase of a car or bike for commuting, etc., are also not covered.

How should I handle my money after I get to my final destination? What are the financial hazards I should avoid when I begin my studies abroad?

The first step is to be aware of the additional, ongoing costs that you can face, such as travel, lodging, meals, networking outings, business tours, and so forth. Create local bank accounts and carry prepaid foreign currency cards to cover such costs. In case of emergencies, you should also have access to foreign credit cards issued in India, either on your own or as a supplement to your parents’ credit cards. However, be careful how you use your credit card; avoid using it carelessly. Your parents’ Indian credit history will be impacted by a default brought on by excessive expenditure. If you are using your own credit card that was issued in the country where you are traveling, a missed or late bill payment will lower your credit score and decrease your chances of obtaining credit in the future. It can also be a bad sign if you want to live there permanently.

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