Ways to Fund an Overseas Education: Education funding is one of the most important parts of overseas education. It plays a vital role in deciding upon the future of the students. What if, we will say that there are several other ways other than fixed deposits with the help of which you can fund your overseas education? Indeed, you are reading that right. Keep reading the blog further to learn more about several other ways to fund your education abroad.
Table of contents
Mutual Funds
The systematic investment plan is an ideal choice for students who are planning to fund their overseas education. As per RBI records, mutual funds attract roughly 6 per cent of household savings. There are several benefits of mutual funds and the potential to beat inflation is the best advantage amongst all.
The investment in mutual funds results in the regular interest amount which gets credited to the investor’s account regularly. The credited interest is used by the fund manager to buy stocks, bonds, or other financial instruments to have returns over time. And, these returns are passed to the investors as dividends till the time of withdrawal.
Also Read: Need help managing your education loan repayment? Check this blog and understand all about Education Loan Restructure
Loans for Education Funding
Student education loans typically have lower interest rates and lenders can wait till the time the student has graduated. In education loans, usually, parents are the co-signers while a student acts as a borrower for the bank.
Generally, students have the choice to avail other loans like personal loans and interest-free loans as well. In the case of a personal loan, the interest loan is on the higher side and can vary as per the tenure of the loan. Here comes the importance of having and maintaining a good credit score because the amount of the loan depends upon the CIBIL score only. Also, When you apply for a secured education loan or any other type of loan, the lenders don’t just focus on your credit score, may consider other things as well.
Scholarships
Acquiring a scholarship is one of the best ways to sponsor overseas education because it comes with lots of benefits. One of the most renowned and well-known scholarships is the highly competitive and merit-based Fulbright Foreign Student Program for graduate-level studies. But, there are a lot more scholarships offered by the government of India, private universities, and the government of other countries as well.
The scholarships offered by foreign universities and foreign governments have somehow emerged as one of the most preferable choices. The criteria of the scholarships may be based on performance or on merit. The best part is there is no limitation to the scholarships you can apply to fund your overseas education. As per RBI data, there had been an increase of 17 per cent in outstanding education loans in March 2023.
Grants and Bursaries
Grants and bursaries come as blessings on a first-come-first-serve basis. These are basically financial aids or you can say they are gift aids that are not required to be paid back. Universities’ financial departments usually deal with this. You can check your eligibility with the department as it may vary from institution to institution.
The major difference between scholarships and grants is that grants are need bases, unlike scholarships. Scholarships are generally merit-based and require good performance throughout the academics. Crowdfunding
Work While Studying Abroad
This is one of the best ways to fund your education while studying abroad. Most of the countries like the USA, the UK, Canada, and many more countries allow students to work part-time while studying on their land. This comes as a wonderful opportunity to fund education as well as to repay the debts left behind in the home country. You can also pay the student loan while working abroad with the help of this wonderful opportunity.
You will be surprised to know that in 2020, the UK reinstated its post-study work visa for international students, which allows students to stay in the UK for up to two years to pursue employment. If you are already studying abroad, be sure to check out the employment opportunities around you because you can pay your university fees by working 20 hours a week.
Also Read: Interest Rate increased on existing education loan? Check this blog and know all about Education Loan Refinancing
FAQs
There are several options available to fund education other than FDs. Some of the most preferable choices include mutual funds, education loans, government subsidies and scholarships.
Mutual funds provide an opportunity to invest in a diversified portfolio of stocks and bonds, potentially offering higher returns compared to FDs. Systematic Investment Plans (SIPs) in mutual funds can also help in disciplined and regular investments.
There are several government schemes and scholarships available for the students to study abroad. Some of the most preferable schemes include
There are several government schemes and scholarships available for the students to study abroad. Some of the most preferable schemes include Fulbright-Nehru Master’s Fellowships, National Overseas Scholarship for SC Students, Dr. Ambedkar Scheme of Interest Subsidy on Educational Loan for Overseas Studies, Erasmus Mundus Joint Master Degree, Agatha Harrison Memorial Fellowship, and Padho Pradesh.
Insurance basically acts as a safety net in case of unforeseen circumstances. Insurance indirectly helps the family to divert funds to education funding.
Remember, Education funding is a journey and not a destination. Be mindful while choosing the education funding option, check out the pros and cons, and take the decision wisely.
To know more about the loan application process, the best bank accounts for students, forex and banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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