Studying in a foreign university was a dream for only riches. But things have changed today. With a wide range of options available today, it has become a lot easier to fulfil your kid’s dream. Today anyone can aspire to have a foreign degree. Thousands of school graduates apply in foreign universities every year to accomplish their dream education. India has seen an immense rise in this field due to the lack of quality education. Reputed colleges providing top-class educations like IIT and IIMs only take the children with a minimum cut-off percentage of 98%. Apart from this, there is a quota system that does not leave enough room for deserving candidates. As a result, children have to settle with mediocre institutes. Hence, kids are forced to look overseas.
There are fairs and exhibitions are organized every year to provide support to such students. These fairs are conducted to showcase how the education system works in other countries. However, the biggest hurdle parents experience with overseas education is the arrangement of funds. Not everyone has savings to support foreign studies. However, there are ways through which even people with lesser savings can also afford to send their kids overseas. So, if you are a parent and planning to send your kid overseas, here are few ways through which you can fund the higher studies.
Find out ways to fund education
Planning to study abroad is not a decision that is made overnight. It requires a lot of planning in terms of selecting a college according to your need, arranging funds to manage fees and daily expense, travel costs, book, and supplies etc. Both, the parent and the student need to prepare mentally and financially. Therefore, if you have decided to send your child to a foreign university, it is time to start planning for the same. Plan it in a way that gives you at least six months for preparation. Parents can start saving as it is never too late. Since the first few months in a new country can be expensive, parents needs to ensure they have enough money to support in case of urgent requirements.
Look for scholarships or grants
Almost every college or university abroad invites students to apply for scholarships to fund education. If your child is academically sound, you can push them to apply for scholarships. Scholarships have different parameters to check a student’s performance, yet parents should make them compete for them. Scholarships are a good way to fund a college education. Many universities and colleges offer 100% scholarships. This means that the university would cover all expenses. Only in exceptional cases, parents may have to share the fees, but the amount is minimal.
Apply for education loan
Studying in a foreign university is expensive, but not impossible. Parents who deem to send their kids overseas often save enough to fund the education. However, reputed universities charge exceptionally from international students. Therefore, these savings might not be enough to bare all expenses. That is the reason; there is a facility of education loan that can be used to bridge the gap. Almost every bank or financial institution offers education loan facility. The biggest advantage with this loan is that the student gets enough time to find a job after their course and then start paying for the EMI’s. Parents would have to provide some kind of collateral to apply for an education loan.
Try personal loan
In case, parents are unable to get an education loan due to a collateral issue, they can even apply for a personal loan. Undoubtedly, personal loans are expensive, but they can help in these situations. In order to apply for a personal loan, parents need to have a good credit history and income to get as much loan possible to at least secure a seat in a college even if they have a small amount of requirement then banks like Indusind Bank can provide them small amount personal loan. Even though personal loans work best in emergencies, there are few downsides to it as well. Firstly, the interest rates are high and the EMI’s begin immediately. Therefore, if parents are applying for personal loans to fund education, they must research thoroughly check and compare interest rates before applying for one.
Prepare your child to manage money
Parents should have an extensive conversation if they are planning to send their kids abroad. Living in a new country, in a new culture, among new people can be difficult. Students find it challenging adjusting in a new environment. As a result, they end up spending more in the initial months. This can be a temporary scenario, but it cannot be a permanent solution. Therefore, parents must make their child understand the importance of money and ways to manage budget monthly. Ask your child to eat at home as much as possible. College accommodation can be expensive, so look for shared accommodations near the college. Most of the times, housing facilities near college are decent and affordable. Try avoiding spending on transportation as much as possible. These are some tips that can help a student save a lot monthly.
Compel your child for part-time jobs
The good thing about studying abroad is that the government offers certain working hours for students to earn while they study. This way they can support monthly expenses without depending on other sources. Many students studying abroad work for few hours in a week and earn enough to plan their monthly expenditures. Also, it helps the student to become responsible and learn to understand the importance of money and hard work. If a student is supporting their studies via education loans, they can use a job for saving for the instalments. But, parents need to emphasize that education is a priority. Their studies should not be hampered because they are working. Hence, ask them to find a job that is easy to manage with their daily study commitments.
Foreign education is great in terms of quality of education, learning new cultures and even for settling abroad. But parents might need financial support to achieve the dream. Fortunately, there are options available today that can be used to support the education. But, the best way to do it is started early in life. Make enough savings from the beginning so that whenever the time comes, you are ready.
- Shipra Aggarwal (Guest Writer)