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Applying for foreign universities? 5 point guide on how to finance the course

In case, you can arrange for a scholarship or university grants, it can significantly ease the financial burden.

2 min read . Updated: 05 Aug 2022, 07:45 PM IST Livemint

If you make financial analysis beforehand, like educational loans required and funds saved for the purpose, it would save you the last-minute hassles.

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While selecting higher education courses, many students aspire to join prestigious foreign universities. As much as such an ambition requires extensive academic preparation, it also needs considerable financial planning. Here are a few steps to follow to prepare the finances for an educational course in foreign universities:

Trying to understand how much fund is required:

The first step for this requires how much money you would need for the course. This is not, however, an easy calculation to make. There are several calculations to feed in. For example, you have to factor in the inflation factor to consider the course fee for the year you would be joining, the average cost of living in the country etc.

If you make the analysis beforehand and make financial arrangements, like educational and funds saved for the purpose, accordingly, it would save you the last-minute hassles.

How to apply for scholarship, university grants?

In case, you can arrange for a scholarship or university grants, it can significantly ease the financial burden. These facilities are strictly merit-based, hence you have to make sure you have the right scores.

So while you are scouting for the college and a course, you should also try to look for a suitable scholarship. Many college offer partial scholarship and you can combine them with your education loan.

How to apply for part-time jobs?

Taking up a part-time job along with your education can not only give your real-time work experience but, the extra money can again soothe the financial load. All country allow international students to take up part-time jobs, in fact most universities post information about such job offers and help students with them.

How to choose the right education loan?

This is quite critical considering that fact that it is a foreign university course, the loan might run in crores. Hence, make an informed decision.

Things to consider while taking an educational loan:

Where should you apply for a loan: You can avail an educational loan from the government financial institutions, banks, NBFCs and edtech lenders.

How can you repay the loan: In most cases, student pays the loan as monthly EMIs post course completion. In many cases, they also start paying the same while they are still persuing the course.

What is the interest rate: Education loan is around 7 to 8%. This can be fixed or variable. However, you should remember, while loans on variable interest rate might look cheaper initially, with the current rising rates on fixed rate interest is a much better option

What is the biggest advantage of an education loan: you can avail tax benefit for having an educational loan." The interest paid on the education loan is allowed as a deduction under Section 80E of the Income Tax Act, 1961. This deduction is available for a maximum of 8 years or till the interest is repaid, whichever is earlier

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