Abroad education is an asset to leading a quality life, and students who wish to study abroad are familiar with the expenses involved. When considering studying abroad, finances become an important factor since a large sum of money is required to study abroad. Being an Indian student, you must be aware of the living costs and currency differences between an overseas nation and your native country.
Still, the demand to study abroad has increased in recent years because of the easy availability of education loans abroad. However, there is a myth revolving around the idea that abroad education loans cover only tuition costs. Well, that’s not true, since an education loan abroad covers costs like tuition and living expenses.
We have listed some of the benefits of taking out an abroad education loan abroad to pay off these expenses instead of liquidating your family assets and self-financing your education. These benefits will make you realize how you can easily pay off these expenses with the help of a foreign education loan.
It's important to have prior knowledge about what expenses must be covered under your education loan. Most students are aware that only tuition fees and living expenses are covered in their education loans; however, other expenses like travel costs, stationery expenses, and the cost of international health insurance are also included in your education loan.
Tuition fees are an important part of foreign education loans; almost all lenders, whether they are banks or NBFCs, cover the cost of tuition fees in study abroad loans. Among all the expenses of studying abroad, tuition fees make up most of them, as tuition fees at any university will not cost you less than 5 to 10 lacs INR. The main objective behind borrowing the study abroad loan from a bank is to pay tuition fees only; other expenses like living costs and accommodation can be managed through part-time jobs.
The cost of living covered by an education loan depends on the loan provider. This cost varies from country to country; living expenses in countries like the USA, the UK, and Canada are higher than in Australia. There is no uniformity in the amount of living expenses covered by the education loan; the country chosen as the study destination will impact the amount of living expenses. Students are advised to pay attention to every detail related to living costs.
Other expenses, like study-related expenses, are also covered under education loans. Abroad education is not restricted only to college education; outside the regular curriculum, you will have ample opportunity to explore a variety of projects, research, and many more things that will help you enhance your knowledge. Many loan providers have started taking study-related costs into consideration and have initiated including them in education loans. This will include the cost of library fees, stationery, books, and laptops. Loan providers like SBI and Avanse are among the leading lenders in India that cover study-related expenses on education loans.
Traveling to an overseas country can cost you a lot. Banks have started including this cost in education loans, and students also get the fare amount as a part of their education loan. However, it depends on the lender whether they are willing to include this cost or not.
Medical facilities in foreign countries are expensive in comparison to India; it can add thousands of bucks to your bill, but having medical insurance is a smart move. Not only will this save you from paying unnecessary medical bills, but many countries, like New Zealand, Canada, and Germany, have made it mandatory for students to have medical insurance before applying for study visas. However, students are required to check whether their medical insurance costs are covered by their education loans.
Studying abroad is full of new opportunities. You will also get chances to explore the new country and hang out with your international friends. Keeping these factors in mind, there is clarification on what expenses are covered under an education loan.
Education loans do not cover any costs associated with personal travel, movie tickets, or other entertainment-related expenses.
On average, a large portion of the total education loan amount will include only tuition fees, and the rest will include living expenses and study-related costs. However, entertainment expenses are not covered, and you have to bear the cost of them.
An education loan is a one-time affair; after signing the loan agreement, there will be no room for changes. So, a student should keep in mind all the expenses prior to applying for the education loan. It is relevant to calculate the loan amount you will require to manage the tuition fees and all and how much you have in your hand. To calculate your expenses, give rational thought to the factors we have mentioned below:
All the above-mentioned factors are helpful for students to assess the amount they require in order to manage their education expenses. It's in the student's best interest to prioritize calculating all the expenses and giving rational thought to all the possible scenarios. Education Loan Guru understands the level of stress students have as they go through all the loan processes. Education Loan Guru will not only help you with the loan application but also guide you to an accurate idea of the expenses covered under an education loan
By Education Loan Guru
