How to balance education loans and living costs: A guide for Indian students abroad

Sending your child abroad for higher education is not an easy task as it costs a lot. Nowadays, affordable options like Ukraine, Russia and China are in the spotlight due to geopolitical reasons. Studying in the US and UK has always been expensive, and other popular destinations like Canada, New Zealand and Australia are increasing fees and tightening visa rules.

Let’s consider a typical three-year university course in the UK at a top university. Tuition fees alone would be around £30,000 per year, which would add up to a total of almost £90,000 for the course. Accommodation in London, even in shared accommodation or a hostel, could cost around £600 per month, plus another £300 per month for food and transport. In total, this would amount to around £1,000 per month plus tuition fees. Adding all these things up, you would be losing around £130,000-£140,000 conservatively over the three-year course.

At the current exchange rate of Rs 111 per pound, the corpus could be ₹1.45 crore rupees to ₹1.55 crore. If we add another 10% for counselling fees, visa costs, ticket costs and medical insurance, the result is approximately ₹1.70 crore. And how do you get there?

Start early

Planning at least 10 years in advance helps. A monthly SIP of ₹30,000 in an equity fund with a CAGR of around 14% could generate around ₹75 lakhs in 10 years, which would cover about half of the total cost. This is a good starting point. Now, other financing options can be explored.

Loans and assistance for education

These are two different things. Education aid comes from various trusts and corporations. One can talk to the employer for help in exchange for compensation from their child when studying abroad. Many companies also provide education aid on the condition that they do their mid-term project with the company.

Educational loan Options may be limited for international studies and banks would insist on collateral for such loans. Make a decision on this. Also, several countries fund international students.

Save on accommodation and take on part-time jobs

Teach your son or daughter the value of money early on. First, ask him or her to talk to the Indian community in the country and help you find the cheapest accommodation. Make sure it is conducive to studies.

They can avoid eating out. Not only is it expensive, but it also unnecessarily increases their calories. Also, they can take up a part-time job. Most universities offer private lessons to students, and professors can also recommend them. They can help professors with projects for consideration. Above all, Starbucks and McDonald’s are always willing to hire students. This can cover

Take advantage of student discounts and prioritize health

Many countries offer special student discounts on food and clothing. Students should bring their ID and take advantage of discounts at most stores. Maintaining a healthy lifestyle is necessary to avoid costly health care expenses and to make sure you have up-to-date health insurance.

Practice austerity

Students should adopt traditional Indian values ​​of austerity. They can use affordable modes of transport such as walking or cycling. They can make the most of public transport concessions on buses and trains and travel in shared taxis. They should be self-sufficient and cook their meals instead of eating out.

Conclusion

Parents should start planning early and try to cover as much of the costs of education as possible. Encourage your child to contribute to the costs at a later stage and to practice frugality.

Nehal Mota, Co-Founder and CEO, Finnovate. Opinions are personal.