Studying abroad is a life-changing experience. However, it comes at a cost that may be heavy on your pocket. Understanding the factors that will impact your expenses, while studying in a foreign country, will help you plan a budget and stick to it. Consider not just your programme costs, but also expenses not included in your programme fees such as travel expenses, recreation, laundry, toiletries, and a phone and Internet connection. Here are some more factors to keep in mind while planning your budget:
Study the country and its cost of living
Some countries have a higher cost of living than others. Hence, understand the current currency exchange rates before planning your budget. Recently, the Indian rupee hit an all-time low of ₹78.93 against the U.S. dollar. This depreciation will make overseas education more expensive. While calculating the total amount required, take into consideration factors such as the annual education inflation in that country, fluctuations in domestic currency, and annual rise in the cost of living.
Check your qualifications for merit-based scholarships and grants
Many universities offer grants or scholarships on a merit basis. Find out if you qualify for any merit scholarships based on your academic records or scholarship tests. Look into any international scholarship programmes for which you might be eligible, and submit as many applications as possible. This will also reduce your economic burden. One of the best ways to guarantee a scholarship is to apply for multiple scholarships and grants simultaneously.
Loan product and provider in the country of choice
Another option is to look for loan providers in the country you are looking to study. One of the benefits is that the loan will be disbursed and repaid in the same currency that you borrow in. This allows for the reduction of currency fluctuation risk without incurring losses from manual intervention or the price of currency conversion. Additionally, when the loan is being disbursed by a financial institution and university of the same country, you need not worry about the timeliness of disbursements, and won’t be impacted by the potential for exchange rate swings. Second, check if the university has collaborations with any financial institutions for education loans. This will help in faster processing and lower interest rates. Look into fixed-rate and variable-rate loans. The former is immune to inflation and the rate remains constant for the loan duration. Thus, the EMI is fixed and will not rise over time. The main benefit is predictability which allows you to budget costs in advance. On the other hand, variable-rate loans fluctuate according to market conditions and are beyond the control of either the borrower or the lender.
While you may not be able to plan your expenses to the last paise, by choosing the right country and programme, efficiently managing your expenses, and taking advantage of student discounts, you can enjoy your time abroad without going broke.
The writer is the Founder of UniCred, a part of ASL Group.
