Most parents wish to send their children abroad for higher studies. USA, UK, Canada, Australia & Singapore are some of the popular overseas education destinations.
One of the greatest challenges that the parents of the child face is managing finances to fund your child’s overseas education. However, a little bit of planning & management of funds on the part of the Student’s parents will make their study abroad dreams come true. Top study abroad consultants in Kerala can help your child achieve their dreams of studying abroad.
The Cost of Studying Abroad
In general, the cost of studying abroad consists of two major factors, namely, Tuition Fees & cost of living. Other expenses, apart from Tuition Fees, include accommodation, transportation, food, electricity, and utilities. To take care of all the expenses, parents have to make long term planning, investment & budget.
How to Plan for Your Child’s Study Abroad?
Let’s checkout how to plan for your child’s study abroad.
1. Make an Estimate of the whole cost of Higher Education
Calculate college tuition fees to be paid and make a note of other expenses such as accommodation costs, food, utilities bill, and transport bills. Budgeting will help in smoothing out the transition.
2. Start early and plan for the long term
As parents start making some personal sacrifices and planning well in advance for your child’s international education, this will allow your child to reap the advantages of Study Abroad later on. Try to cut down on unnecessary expenses & check your expenditure history. Make it a habit to save money at periodic intervals for your child’s education. For example, you can decide to save a certain amount every month. Saving a fixed amount every month from your regular income will cater to the long-term needs of your child for an overseas education.
3. Time-Period for Preparation
After deciding Study Abroad as one of your goals for the year, begin to surf about the courses you need to pursue, & the place where you would want your child to go for studying in another country. You can also prepare, starting the same time, plans and finances for aid & scholarship for them
4. Get to know the basic requirements
If your child aims to study abroad, then one of the most important requirements would be that he should be self-sufficient enough to take care of himself. An international country, where locals converse in native languages, it’s critical to have a grasp on the local languages. Hence learn and master language skills & problem-solving skills to survive in a foreign land.
5. Review your Investments regularly
Always make a good practice to periodically review your investments to remain up to date about your current financial situation. If any of your investments are not giving returns as per your expectations, take a sound decision regarding that.
6. Invest with less risky approach
When you are on the right path to fulfill your financial objectives. Then you must try your best for make the portfolio not so riskier in its investment process. Thus you will save the money lost in losing your present gain. What you have been gaining, so try to accumulate that sum of money investing in a savings account or some debt funds. These investment options are both safe & liquid. Another relatively safe option is fixed deposits.
Educational Loan Options For Funding Your Child’s Education
Here are some of the loan options available, including SBI, Axis, and HDFC
1. SBI Education Loan
- Loan Amount: Up to ₹4 lakh
- Interest Rates: 13.35% p.a.
- Maximum Amount Offered: ₹10 lakh (India), ₹30 lakh (abroad)
- Repayment Tenure: 5 to 7 years
- For loan amounts between ₹4 lakh and ₹7.5 lakh, the interest rate is 13.60% p.a.
- For amounts above ₹7.5 lakh, the interest rate drops to 11.60% p.a.
2. Axis Bank Education Loan
- Loan Amount: Up to ₹4 lakh
- Interest Rates: 16.95% p.a.
- Maximum Amount Offered: ₹10 lakh (India), ₹20 lakh (abroad)
- Repayment Tenure: Up to 7 years
- For loan amounts between ₹4 lakh and ₹7.5 lakh, the interest rate is 17.95% p.a.
- For amounts above ₹7.5 lakh, the rate is 15.95% p.a.
3. HDFC Education Loan
- Loan Amount: Up to ₹4 lakh
- Interest Rates: 12.00% p.a.
- Maximum Amount Offered: ₹10 lakh (India)
- Repayment Tenure: Up to 15 years
- For loan amounts between ₹4 lakh and ₹7.5 lakh, the interest rate is 13.00% p.a.
- For amounts above ₹7.5 lakh, the rate is 12.50% p.a.
Tips to Finance your Child Study Abroad
- Buy a Forex card
- Prepare your Budget plan
- Try to cut down on daily expenditure
- Start saving money as early as possible
- Prepare a Smart Plan
Make Smart Study Abroad Choices
You’ll be managing a blend of academic, financial, and immigration procedures as an international student. Make the most of your stay abroad by focusing on courses that fit your professional needs but still offer good returns.
Plan for your tuition and living costs accordingly. Prepare ahead of time and find as many scholarship and financial aid options as you can. Looking around may surprise you with a cheaper institution offering equally high-quality education in other countries. So do some good research on the best study abroad consultants in Trivandrum and choose the right team. They will help you find the right program and ensure that you obtain the necessary visas, all the way to your success.
