Maximising financial benefits to study abroad

Studying abroad is a dream shared by countless students worldwide, and India is no exception. Every year, an impressive 8 lakh Indian students embark on educational journeys to foreign countries, contributing around $28 billion to the country's GDP, which amounts to approximately 1%. While pursuing higher education overseas is an exciting prospect, it requires meticulous financial planning to avoid last-minute complications and potential scams. It is also equally important for students to prepare their overseas education expenses early on and turn their study abroad dreams into reality. In other words, preparing ahead will help students secure admissions abroad in time and align financial plans with their academic goals.

In this article, let’s explore the different aspects to consider understanding the cost of studying abroad for Indian students for a hassle-free experience.

Analysing estimated costs

Before deciding to study abroad, it is crucial to conduct a thorough analysis of the estimated costs. One needs to begin by identifying their area of academic interest and the countries best suited to their educational goals. After shortlisting a destination, research the average cost of living in that country. Studying abroad is a substantial financial commitment, so consider various factors while calculating your expenses. This information will prove invaluable when arranging funds or applying for an educational loan. Ensure that the loan covers not only tuition fees but also the cost of living in your chosen destination.

Scholarships and Grants

Financial aid in the form of scholarships, university grants, and bursaries can significantly alleviate one’s financial burden when studying abroad. Many educational institutions offer partial scholarships for Indian students in pursuing their studies. Also, various governments provide scholarships and grants to attract international students. Research and apply for suitable scholarships before or during your college application process.

Budgeting apps and tools

Leverage budgeting apps and financial tools to manage your finances effectively while living abroad. Many apps are designed specifically for students studying overseas, helping them to track expenses, set budgets, and monitor their financial health. This proactive approach can prevent overspending and ensure you stay within your budget.

Healthcare and insurance

It is important to understand the healthcare system in the chosen study destination. Some offer universal healthcare to international students, while other countries demand private health insurance. Explore all available options, compare costs, and pick a plan that offers adequate coverage at a reasonable price.

Exploring internships and part-time opportunities

Nearly every country permits international students to work part-time, providing an excellent avenue for financial stability. Research the minimum wage in your chosen city or country and explore part-time jobs for international students. Typically, most countries have a 20-hour per week work limit for international students. Many universities also post information about available part-time job offers on their websites. Leveraging these opportunities can ease your financial responsibilities while studying abroad.

Choosing the right education loan

Selecting right education loans for abroad studies is a pivotal decision. With India's increasing demand for international education, there is a plethora of loan providers to choose from, including government financial institutions, private and public banks, NBFCs, and fintech lenders.

When evaluating education loans, consider several critical factors, including whether to opt for secured or unsecured loans. Secured loans need collateral, while unsecured loans do not require the same. Next, explore different lenders to discover the most suitable option for your specific needs. Additionally, be aware that most education loans require regular monthly EMIs after you finish your course. Lastly, consider and compare the interest rate, as loans can offer fixed or variable rates.

Pre-departure expenses for students

Beyond tuition and living expenses, consider the cost of essential items you will need before departure. This includes visa fees, travel insurance, vaccinations, and any initial accommodation costs. Often, these expenses are overlooked, so planning for them in advance can prevent financial surprises.

Financial advisers and consultation

Consider seeking advice from financial advisers who specialize in international education and career counseling. These experts can provide personalized financial strategies, including investment options, budgeting, and wealth management, tailored to your unique needs and situations.

To conclude

Studying abroad is a transformative experience, but it comes with financial challenges. By carefully considering the aforementioned points and taking proactive steps to secure your finances, you can make the most of your study abroad journey and turn it into an enriching experience.

(The author is the Co-founder of The WorldGrad)