Finance is an important factor to consider for students planning to study abroad. Therefore, it is important to plan carefully which is both required and a wise step towards studying abroad. One such planning include taking financial aid, a program designed to support study and training abroad. The nationals from outside country need to show a proof for sufficient funds that can cover the first year of their college education, especially at the time of visa application after getting admission. The cost of education in each country is varied and it varies from college to college.
To show necessary fund in your account can be challenging and sometimes a frustrating task. Because it is not necessary that your account has required funding that you can show easily.
Below are the various options you have for financing or supporting your education abroad.
Financial Sources in India
Bank Loans - There are several banks like State Bank of India, Andhara Bank, Bank of India, Syndicate Bank, Canara Bank and many other private banks in India that offer financial aids to the students going abroad for further studies. The amount of loan offered to the students differ from banks to banks and some banks readily give loan as high as Rs 10 lakhs. While hiring such loans, several terms and conditions are subjected to it like 25% of the total course expenditure has to be paid by the students’ parents and students have to provide security for the loan taken for obtaining education abroad. It can be NSE shares, insurance policy or a house mortgaged. It is important to know that security for a loan of an amount of Rs25,000 to Rs. 3 lakhs is 100%, 150 % for Rs. 3 lakhs to Rs. 5 Lakhs, and 200% security needs to be provided for a loan of over Rs. 5 lakhs.
To avail these loans from banks, you need to show them a proof of your admission in a foreign university. Also, loans are not given for the correspondence courses. Thirdly, the students should possess fair academic background. Those who fulfill these criteria are eligible for educational loan that covers course fees, cost of books, hostel fees and other equipment, sometimes one way fare to the place of study.
The repayment of the loan amount starts 6 months after the completion of the course and after one month if the person gets a job immediately after the completion of course. The time limit to repay the loan is 15 years from the date of the first disbursement.
Then comes the second type of financial aid -
Trust Loans – This type of loans usually have lower interest rate or are interest free. Some of the well known trusts are given below:
- J.N. Tata Endowment:
- K.C. Mahindra Education Trust:
- Mariwala Trust
- R.D. Sethna Scholarship Fund
- Sahu Jain Trust
Fellowships - Fellowships are popular but securing it is very difficult because of the high competition fighting for it. Most important ones are listed below:
- Aga Khan Foundation
- Inlaks Scholarships
- AT&T Leadership Awards (For U.S. only)
- Rotary Ambassadorial Scholarships
Financial Sources in U.S.A.
* University Funding/Scholarships – is easier to get in USA as compared to UK, Canada, Australia and New Zealand. The students who opt Australia and U.K., are self funded students.
* Loans from U.S. Banks
* Loans and Support from your Home Country
* Aid from Other Sources
Financial Sources in Canada
* University Funding
Sources in New Zealand
* Financial aid is backed by Scholarships in New Zealand. These awards are given out on a merit basis
On an average, there are nearly 305 scholarships, loans, grants, and/or internships are designed to support high school and undergraduate students interested in structured and unstructured education abroad. While taking financial aid, it’s better to discuss your financial situation with a staff person in the aid office before you finalize your study abroad plans. Remember to be sure about your aid eligibility. It’s possible that some of your bills for study abroad may become due before your aid is available, so be sure you have verification for all of your awards. If you have applied on time, kept your costs to a level that you can afford, and shown that you are academically conscientious, you will surely get required financial aid for your higher education Abroad.