One of the most common challenges or hurdles people face when pursuing higher education abroad is financing it. The tuition fee and cost of living can feel like a burden on the pocket of many students and their families. However, financing international education can be much easier if approached strategically. While the best way to accumulate funds to finance international education is by planning early and investing regularly or applying and getting scholarships that can significantly help fund allocation. However, here are some tips for managing your child’s higher education expenses more manageable:
Estimate the cost of studying abroad
Estimating the cost of studying abroad is a crucial preliminary step to gathering funds. Consider every possible expense that you might incur. While tuition fees might be the biggest expense, do factor in other miscellaneous costs such as accommodation, food, electricity, transportation, and utilities. This helps you foresee unexpected expenses that catch you off-guard and weigh heavily on your pockets.
Source of funds
There are different ways you can fund your child’s education. Before reaching out to external sources, make your own budget and evaluate how much you can spend from your savings. One of the simplest ways to minimize the education cost is to apply for scholarships and grants for international students. You can also look for education loans or other international student support for financial assistance.
“Following the dynamic changes of the education landscape in the past decade, which got accelerated by the pandemic, we live in a perpetually changing world of new jobs, new technologies, and different skill requirements. Moreover, the rapidly rising education costs make It imperative for parents to plan finances in advance. For that, diligent research and timely advice are needed,” says Prashant A Bhonsle, Founder of Kuhoo Fintech.
Some pertinent aspects that you must take into consideration while choosing the right financial partner for a student load are:
Look for not only the rate of interest but also their processing fees, insurance, and other charges.
Evaluate the overall loan structure, including the moratorium period and the tenor of the loan.
People overlook the overall processing time, including the dispersal turnaround time. The loan is often sanctioned, but then you are left chasing the company for disbursal, losing crucial time in the bargain.
The loan servicing policies and processes of the company. Education loans are unique in a way that most of the time, people take disbursals in tranches spanning over a period of a few years based on their fees’ due dates. Therefore, you should ensure that the process for disbursals for the following tranches is well-defined and not too complicated.
Going abroad, you should explore different lending companies based on their ancillary services, including travel insurance, foreign exchange, bank accounts, credit cards, remittances, etc.
Plan way in advance
If your kids are still young and want to pursue their higher education abroad, it is a great idea to make timely investments to secure finances in the future. This could include investing in stocks, mutual fund SIPs, fixed deposits, etc.
Periodical review of investments
It’s always smart to review your investments periodically once or twice a year to stay updated about your financial situation. This allows you time to make sound decisions in time if in case any of your investments are not performing.
Shift your portfolio to less risky avenues
If you’re on track with your financial goals, shifting these investments to avenues with minimum risk is recommended to ensure you don’t lose the returns you’ve accumulated so far. For example, you can shift your accumulated returns into a savings account or debt mutual funds, as these options provide high safety and liquidity.
Finances are something you will have to figure out from the start if you want a stress-free and hassle-free process at the time of application and admission.
If you’re looking to apply to international universities or exploring overseas higher education options, The Headmaster Consulting can help you narrow your selection and provide you with insights about universities. Make sure you understand scholarships before you apply for them. If you’re unsure of your profile, book a free consulting session with one of our consultants to help you build a standout profile.
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