According to Rohan Rai, co-founder of Edupull, a platform dedicated to simplifying the process of studying abroad, many families underestimate the true cost of international education.
“One of the biggest financial mistakes is underestimating the total value cost of studying abroad. “While tuition fees are often the main focus, it is crucial to factor in living expenses, health insurance, travel, visa fees and incidental costs,” Rai said.
For example, in the United States, living expenses can range from $10,000 to $18,000 per year, depending on location.
These hidden costs can catch families off guard, creating financial stress down the road.
Rai also stressed the importance of early preparation.
He said many students lose out on scholarships simply because they apply too late.
“According to the Institute of International Education, more than 80% of international students in the United States receive some form of financial aid. Researching and applying early can significantly reduce the overall financial burden,” she added.
Structured financial planning
Rai advised parents to start their research well in advance, focusing especially on countries where education might be more affordable.
“Studying in Europe, for example, can be much cheaper than in the US or UK, and many countries offer low-cost or even free tuition for international students,” he said.
In addition, it is essential to establish specific savings plans from the beginning.
“A structured savings plan through fixed deposits or mutual funds can help families accumulate the necessary funds. Also, exploring education loan options in advance ensures that parents are not caught off guard by the large sums at stake,” Rai said.
Education Loans
Getting education loans can be a daunting task. International studentsBut Rai stressed that associations and financial advisers can be game changers.
“Financial advisors who specialize in student loans offer options without the need for co-signers or collateral,” she said.
This approach ensures that students are not overwhelmed by the financial demands of studying abroad, allowing them to focus on their education without the looming fear of debt.
A look at the rates and conditions of educational loans from various banks:
| Bank | Loan amount | Interest rates | Maximum amount offered | Refund period |
| SBI Education Loan | Up to ₹4 lakh | 13.35% per year | For studies in India: ₹10 lakhs | 5 to 7 years |
| For study abroad: ₹30 lakh | ||||
| ₹4 lakh – ₹7.5 lakh | 13.60% per year | |||
| More than ₹7.5 lakh | 11.60% per year | |||
| Axis Bank Education Loan | Up to ₹4 lakh | 16.95% per year | For studies in India: ₹10 lakh | Up to 7 years |
| For study abroad: ₹20 lakh | ||||
| ₹4 lakh – ₹7.5 lakh | 17.95% per year | |||
| More than ₹7.5 lakh | 15.95% per year | |||
| HDFC Education Loan | Up to ₹4 lakh | 12.00% per year | ₹10 lakh for studies in India | Up to 15 years |
| ₹4 lakh – ₹7.5 lakh | 13.00% per year | |||
| More than ₹7.5 lakh | 12.50% per year | |||
| PNB Education Loan Scheme | ₹4 lakh – ₹10 lakh | Calculated individually | ₹10 lakh for studies in India | Up to 15 years |
| Avanse educational loan | Minimum ₹50,000 up to maximum requirement | Calculated individually according to the course. | not specified | 1 to 10 years |
(Source: Money Bazaar)
Rising education costs affect student choices
Rising education costs are leading Indian students to rethink where and what they study.
Rai explained: “Many students are now prioritizing programs that offer a higher return on investment (ROI), particularly in STEM fields, which provide better employment opportunities after graduation.”
He noted that countries like Germany, Norway and the Netherlands, which have lower or even free tuition fees, are seeing an increase in the number of Indian applicants.
According to QS World University Rankings, more than 30% of Indian students now consider affordability when choosing their destination.
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