One of the biggest hurdles for students planning to study abroad is figuring out the right time to start thinking about finances. It is important for students and parents to know that it is always advisable to start thinking 7-8 months in advance to avoid any last minute hassle which can be a daunting experience to the student and his family. The cost of study abroad varies depending on location, program type, duration, and your own personal expense budget. That being said students who choose a study abroad program based on their future career and educational goals report that studying abroad was well worth the cost.
Planning Your Budget
Before deciding to start thinking about finances, it is important for the aspirant and his family to be aware of the budget they would like to indulge in. Students can opt for self-funding which would basically mean the entire expense would be borne by the family or they can even opt for an Education Loan from a financial institution. Students who excel in academics can also opt for various scholarship programs available on the university websites to ease their financial expenditure. Once the budget has been decided, it is important for the aspirant to figure out the total expenditure and plan accordingly. The expenditure would cover more than just tuition fee and living expense. The expenditure would include visa costs, airline expenses and all other miscellaneous expenses that would have to be endured during the entire tenure abroad.
This is when the aspirant decides to fund his entire study abroad. Here, the students along with his family are financially able to handle expenses ranging from tuition fees, living expenses to all other miscellaneous expenses he could come across during the entire duration of his stay abroad. It is compulsory for students to show proof of financial documents while applying for a visa. As proof the student can self-finance his study abroad he would be required to show the following:
- Bank solvency letter
- Fixed deposit certificate
- Bank statement for the last 6 months showing requisite finance
On Education Loan
It is important for students to understand the eligibility guidelines and qualify the same, to be able to apply to their preferred money lending institution/bank for their Education Loan. The eligibility criteria vary for different banks. However, some common factors that are taken into account by all money lending institutions (banks) include
- The student is required to be a citizen of India.
- The loan applicant must have attained the age of 18 else his/her parents will have to take the loan.
- The candidate must possess a good academic background.
- The aspirant must have secured admission to a recognized foreign university/institution/college.
- The desired course which the applicant is going to study must be a technical or professional one, as banks give preference to job oriented courses.
A lot of times, students don’t plan accordingly and zero in on colleges that are way above their financial allowance. Such gaffes should be dodged to face end moment disappointments. Studying abroad is an investment in your future. Like any other type of investment, it requires planning, careful management, creativity, perseverance, and commitment. Planning early on in your studies will allow you to financially prepare for your study abroad term and allow you to make the most of it.
You can also contact India’s leading education loan providers through Shiksha Study Abroad