Representative image showing students graduating
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Studying abroad is no longer limited to students from financially well-off families. With more and more students opting to study abroad, the idea of studying in a new country, experiencing a new culture, and learning in a global and eclectic environment is an adventure the youngsters in our country seek.
If you are a bright student with a strong academic record, you can finance your studies abroad without burdening the family.
Scholarships
Universities offer different kinds of scholarships and awards for meritorious international students. The scholarships range from 100% to partial waiver on tuition fees. Each unviversity offers different categories of awards, such as Deans’ awards, Excellence awards, Department—or subject-based Scholarships, alumni-funded scholarships, scholarships for women, etc.
External Scholarships, such as the Commonwealth Scholarship, Fulbright Foreign Student Programme, Chevening Scholarship, Rotary Global Grant Scholarships, Tata Scholarship, Inlaks Shivdasani Scholarship, Aga Khan Foundation Scholarship, and The Lore India Foundation Scholarship Trust, are among the popular ones.
Karnataka Prabuddha Overseas Scholarship Scheme, The D Devaraj Urs Foreign Scholarship Scheme, and the National Overseas Scholarship for minorities are a few of the government-initiated schemes in Karnataka.
Student loans
India’s top education loan providers include SBI, ICICI, Bank of Baroda, Axis Bank, Union Bank, Punjab National Bank, Avanse, and HDFC Credila. All of them offer loans with and without collateral. They charge a small processing fee, but the loan disbursement is quick.
Financial institutions also offer student loans for Indian students wanting to pursue master’s abroad. The interest rate is comparable to that of banks, depending on the university. The eepayment of the loan starts after the completion of the course. Some institutions do not charge a processing fee and do not require you to have a cosigner or collateral security. Some such institutions even offer scholarships to bright students, reducing the loan amount. One should have an offer letter to apply for a scholarship or loan.
Advantages: Opting for an education loan reduces the strain on family savings and eliminates the need to liquidate investments in fixed deposits, mutual funds, or bonds. It is a great opportunity for students to pay for their studies. A preferential rate of interest is given to students going to top universities. The loan sanctioned generally covers tuition, living expenses, study material, travel expenses, etc.
Pitfalls: Making monthly payments of interest for a long time can put a strain on your finances. Missing a single EMI of your student loan payment can negatively affect your credit score. This can make it difficult to get approved for other loans or credit cards in the future.
Keep in mind while borrowing
Scholarships: Minimise student loans by applying for scholarships and grants and working part-time. Most countries allow you to work 20 hours on weekdays and 40 on weekends.
Estimation of the loan amount: An incorrect, conservative estimate of education and allied costs to lower the loan burden could mean a shortfall in funds at critical junctures. This could risk a student’s ability to meet basic needs, such as food, transportation, and housing, profoundly impacting their academic performance and overall well-being. On the contrary, over-borrowing for education loans can burden students with excessive EMIs. Do not borrow more than necessary because the bank will give you more. Remember, every dollar you borrow will cost twice as much before you repay the loan. If one is not prepared, this can lead to financial strain and increased stress, hindering one’s long-term financial stability and well-being.
Get the best interest rate: Check with several banks and financial institutions to see who offers the best interest rate and repayment terms.
Finally, scholarship applications are still open for students planning to attend a university abroad in Spring 2025 (January intake).
(Questions? Email: dheducation@deccanherald.co.in)