A foreign Education is an expensive affair. One needs to have enough funds to pay for tuition fees, accommodation, utilities, supplies and various other expenses. At times Visa regulations require you to show a certain amount of funds per year for sustaining in that country, for approval. A foreign education can cost you six times more than a college in India.
But still, a lot of people prefer to study abroad. This may be due to the quality of education, access to a variety of courses, facilities and better job opportunities.
Thus, there is a big need for a proper financial planning when it comes to foreign education. There are various ways through which students can finance their education. Some of them are given below.
University Funding / Financial Aid
Many colleges offer financial aid to international students based on merit and sometimes on a background profile. Postgraduate students have to indicate the need for financial assistance at the time when the application form is filled.
The different type of financial aids available are-
1. Tuition Waiver- A tuition waiver would mean the student would not have the tuition fees for college. However, the general fees used for utilities is usually paid by the students. A tuition waiver is awarded along with a scholarship or a TA.
2. Scholarships- It is usually a grant based on the students’ academic record or performance. A full scholarship can pay for the students entire living expenses at the college.
There are various types of scholarships that can be awarded to a student based on their background profile -
- scholarships (fellowships) based on merit-
- Given by universities
- Given by the government
- Sports scholarships given by the universities.
- Specific scholarships- These scholarships are given to students of certain ethnic groups. These scholarships are designed in order to benefit gender or ethnic minorities. N
- Need-based scholarships(grant) - These scholarships are given to students as a form of financial assistance. Unlike the scholarships given on merit, these are given to students in need.
3. Assistantship – Most of the students receive financial assistance in the form of teaching assistantship i.e. students get a stipend for covering their living expenses. To get this the students are required to work in teaching or research work for about 20 hours per week.
Often students are required to prove their research and teaching skills in order to get a TA. Hence many universities give a TA only after the 1st semester. One might also have to take a Test of Spoken English (TSE) in order to get the TA.
Who should apply for University funding / Financial Aid?
- Students having high standardised Exam Scores like GRE, GMAT, TOEFL etc.
- Students having teaching experience in a subject at the undergraduate level.
- A student having excellent recommendation letters.
- Students with interests in research work in the same field.
Education Loans
Student loans are like any other loan, where you basically have to return the money back after some time or in installments with interest. You can get student loans from both private and public banks and even from the government. You can also get education loan before you receive your admit on Yocket Loan Assistance. To know more about education loan, read our article on Education Loan 101.
1. International Student loans – For international student loans in US, there is a requirement of having a US citizen or permanent resident as a Co-signer. The better the credit score of your co-signer, the better interest rate you will get.
Advantages of international student loans -
- No collateral is asked
- Flexible repayment terms
- There are no application fees levied
- Lower interest rates than that in India.
2. Education Loan from Indian Banks- If it is not possible for someone to get a loan from an international bank, you can always try your luck with Indian banks.
- Collateral- If you take a loan up to 4 lakhs, then it can sanctioned without any collateral. However, for a loan from 4 lakhs to 7.5 lakh, a satisfactory third-party guarantee is a must. And for the students applying for loan above 7.5 lakh, a person has to mandatorily show a collateral of 100 percent.
- Interest Rate- The interests can be anywhere between 10 per cent to 15 per cent.
- Repayment- The repayment starts from 6 months after completion of the course or immediately after one gets a job. Maximum time given for repayment is 15 years.
Eligibility criteria for a student loan from an Indian bank
- Admission at a particular university should be confirmed.
- The course should be full time and not correspondence.
- Academic scores of the students should be satisfactory.
Student Prizes-
These are prizes given in the form of money. This may not be enough for supporting your entire education but can be considered as financial aid. These may be given for excellent academic record, to reward performance at undergraduate level, for writing the best research papers etc.
