You might have just received an admit into your desired college for the course you have been planning to study. You might even have cleared your visa interview and are on your way to the country of your dreams. It is undoubtedly an occasion for joy and celebration. But there is a very crucial issue that many aspirants forget during their study abroad tenure and that is managing finances and taking the right decisions to save money.
We have given a few pointers in this article which are definitely going to help students who plan to begin their overseas study. It is preferable if the student keeps these points in mind before Applying for a Loan for Abroad Studies.
Choosing the Right Bank for Your Student Loan
Ultimately, the total amount to be repaid depends on the rate of interest that is being charged on your Principal amount. Hence, the first thing that needs to be ensured is to know about the rates of interest in different banks and NBFCs. Generally, nationalized banks such as Bank of Baroda and State Bank of India offer lower rates of interest as compared to private banks and NBFCs. But other factors also need to be taken into consideration such as margin money and pre-visa disbursal.
Keeping Track of Currency Exchange Rate
The exchange rate varies constantly and there are significant shifts from its median value, both upward as well as downward. As compared to the USD, the Indian Rupee has been varying between INR 50 to INR 70 since the past couple of years.
With this background, when you make the fee payments at foreign institutes, it is always advisable to keep track of the currency exchange rate so that you can save significantly if you pay when the Rupee is stronger as compared to the Dollar.
Scholarship Options
There are many scholarship schemes, both national and international, for students opting to study abroad. Many colleges have their own specialized awards and scholarships to which you can apply. These scholarships may be need-based or merit-based and getting a scholarship/fee waiver would help you save up much-needed funds. You must also be on the lookout for Indian Government Scholarships for Studying Abroad. These prestigious scholarships are initiatives of the Indian Government to help deserving candidates in meeting the foreign-education costs.
Using the Forex Card
The Multi-Currency Forex Card is of immense benefit to students who are pursuing their higher education overseas. You can directly use the card to make payments instead of withdrawing money and paying in cash. It must be kept in mind that you will be charged extra for any cash withdrawal, if you are using your home country’s debit/credit card. The Forex card also helps you keep track of your expenses by providing transaction alerts on your mobile via SMS.
Getting a Part-time Job
This is an obvious point which the readers are well aware of. Getting a well-paying part-time job definitely helps a lot in easing the financial burden on the student. Countries like Australia and New Zealand have ample part-time work opportunities and the hourly wage is also quite high. Also, you are allowed to work full time during scheduled vacations (40 hours per week).
Opening a Local Bank Account
A local bank account is of immense help, not only because it will help you save money during international transactions, but also because it will be mandatory if you are engaged in any part-time job.
Getting a Travel Insurance
It is always advisable to have a Study Abroad Travel Insurance in order to mitigate any emergencies such as thefts, misplacement of baggage etc. These mishaps might result in significant financial as well as other losses and having travel insurance definitely helps immensely.
Health Insurance
In countries such as Australia, a valid student health insurance is mandatory. However, it is always advised to go through the insurance policy and get additional cover if required, which will ensure that you are ready for any emergency in a foreign land. It must be kept in mind that medical expense is skyrocketing in countries such as the US and the UK and it is always prudent to keep oneself covered at all times by a student insurance plan.
Travel and Accommodation
A lot of funds may be wasted if you do not plan your accommodation and travel expenses carefully. It is always advised to stay close to the campus in order to save up on travel costs. Living in dormitories or student flats is definitely cheaper and student unions can be consulted to provide you the right options. As for travelling, students are entitled to discount cards in countries such as Singapore owing to which significant travel expense can be cut down.
Shortening the Loan Repayment Tenure
Students need to repay the education loan after their moratorium period expires and they must bear in mind that a longer loan repayment tenure means a larger interest amount to be repaid. Hence it is in the best interest of the students to repay the loan as soon as possible, saving up on the interest amount. In order to help you out with quick EMI calculation, you can use the EMI calculator for overseas education loan, an effective finance management tool.
Keep in mind the above points to help you manage your finances well so that you may give your full attention towards excelling in your academics.
Learn More:
Mistakes That Students Make While Applying for Overseas Education Loans
Smart Tips to Manage Your Overseas Education Loan Repayments
