How to Fund your own Education Abroad
Overseas education has become an aspirational benchmark for anyone who wants to excel in any industry. Getting a certificate of excellence from a foreign university of repute is not only a feather in one’s academic cap but also imparts the tag of ‘international exposure’, which is decidedly an asset at the workplace.
On the flip side, it is commonly believed that not everyone can afford the high price tag that comes with studying abroad. But worry not – lack of money need not be a hindrance for anyone who aspires to go overseas for higher studies. Here’s how to get your act together:
Determining the major costs
To see if you can afford an education abroad, the first and foremost step is to research and plan for the major expenses that you would face. The three basic costs that need to be taken into account are:
- Tuition fees
- Living expenses
Ways of funding
Saving money is the most basic way to fund your foreign education but the amount one accumulates this way generally won’t be enough. However, there are other ways that can be combined with savings to bring an overseas degree within your reach. Let’s take a look at them:
1. Scholarships and grants
Scholarships are sometimes provided by foreign institutions based on merit or some other criteria. There are also various organisations that provide scholarships to those who wish to study abroad. These scholarships are need-based, merit-based, diversity-based etc.
It goes without saying that a good deal of research on potential scholarships is necessary. One should begin their search for scholarships a year before the admission has to be taken. Some programs such as Rotary Foundation’s Ambassadorial Scholarship Program specialise in providing aid to students for studying abroad.
2. Systematic Investment Plan (SIP)
This option is ideal for working people who wish to pursue higher studies in a foreign university. However, the number of years at their disposal is key to determining if this way of funding will work effectively. SIP is a process that requires the customer to invest a certain pre-determined amount in a specific mutual fund scheme on a regular basis - weekly, monthly, quarterly etc. It is a smart practice as it fulfils two purposes: saving and investing.
HDFC Bank is one of the most reliable banks in India that provide investment options through a variety of SIP schemes. It also offers different options to diversify your investments. The major benefits of a SIP are that the regular payments are easy on the pocket and your investment is managed expertly. Over a period of time, these small amounts add up to a sizeable fund that allows you to pursue your educational dreams.
3. Education loans
Student Loans, as well as loans for individuals wanting to study abroad, are easily available. After saving and maximising the scholarship option, a loan can be availed of to meet the additional costs. A foreign degree grants credibility to one’s profile, which translates into quicker promotions and raises. Thus, a loan for foreign education can be easily repaid.
Many banks offer Student Loans at special interest rates. HDFC Bank offers various customised plans at competitive interest rates and with flexible repayment terms. It provides 100% finance for foreign Education Loans of Rs 20 lakh or more. Moreover, funds from Education Loans can be used for foreign education in over 950 courses across 36 countries.
With such an easy solution at your disposal, all you need to do is research and plan adequately – and your dream of funding your foreign education can soon become a reality!
Looking to apply for an HDFC Bank Education Loan? Click here!
* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd.