Education loans to pay for your higher education overseas are common and effective; let’s look at all the expenses under education loans to help you make the right choice.
What are some expenses under education loans? Do education loans only help with tuition fees? Can education loans cover the cost of flights or help pay the living expenses?
Keep reading to find out the expenses under education loans.
One of the main issues facing the majority of Indian students who want to study abroad is how they would pay for their higher education. An education loan makes sure that all of the financial conditions for the application process for an education loan overseas are satisfied within the allotted time limit.
For the majority of students, the cost of an education loan in India for studying abroad is the main topic of conversation when it comes to financing higher education overseas.
The information on this page is relevant to both secured and unsecured education loans in India for international studies.
Costs of a typical course abroad for a student loan
One widespread misconception is that student loans do not fully cover the costs associated with studying abroad. This is untrue, though, as all educational loans, whether secured ones from government banks or unsecured ones from private lenders, cover the following list of costs that are essential to the educational process.
1. Student fees
One of the two main components of both forms of education loans in India for studying abroad is the tuition prices charged by foreign universities.
An education loan in India for the international study is intended to assist students in covering their tuition costs. In India, all student loan repayments include tuition. Therefore, when deciding on the overall amount of your student loans, you should give top priority to covering your tuition costs.
2. Housing Costs
The term “factors” can refer to a wide range of things. The main living costs for a student include their rent or room and board, food, and costs for other daily necessities like transportation to and from school, a security deposit for housing, etc.
3. Medical Insurance
International students are frequently required to obtain health insurance by many foreign universities. This specific cost is covered by an education loan in India for studying abroad as it is one of the prerequisites for studying abroad for many students. Therefore, while applying for an education loan, health insurance can also be taken into account.
4. Flight Tickets
Another significant price covered by an education loan when applying for one overseas is airline tickets to the location of your choice. When quoting the education loan amount to your bank, this component might also be included.
5. Research Aid
You can include this information in the education loan application if your foreign university’s offer letter states that you are responsible for paying for excursions and other extracurricular activities throughout the course of your studies.
In addition, when applying for both forms of school loans in India, students can include the price of products like books, computers, and other study supplies in their total expenses.
Does an education loan cover living expenses?
The answer is yes, in most cases! Indian education loans for abroad studies typically cover a range of expenses beyond just tuition fees. This can include:
- Living expenses: This covers your accommodation, food, local transportation, books and study materials, and other daily needs.
- Travel expenses: The loan may cover flight tickets to your study destination and back.
- Other fees: This might include visa application fees, health insurance premiums, and even exam registration fees.
However, there are a few key things to remember:
- Loan amount limitations: There might be a maximum limit on the total loan amount you can avail. This limit should ideally factor in both tuition fees and estimated living expenses.
- Documentation required: You’ll need to submit documents like university acceptance letters and estimated living cost breakdowns to secure the loan amount for living expenses.
- Disbursement process: The loan for living expenses might be disbursed directly to the university or in instalments based on a pre-determined plan.
Remember: Carefully research different lenders and compare their loan terms, interest rates, and living expense coverage options. This will help you choose the most suitable education loan for your study abroad journey.
With proper planning and the right financial backing, your dream of studying abroad can become a reality!
What elements must a student take into account when determining costs?
There is no way to change the loan arrangement because the student loan is a one-time transaction. Therefore, a student needs to be aware of the costs they can cover on their own and those for which they might require a loan.
The student’s financial stability at the time of study is of utmost importance, so the loan amount should be chosen with that in mind.
Before assessing the costs, a student must take the following into account:
- The price of housing in a specific country and whether it will be possible to live in shared housing for a lower cost of living.
- Food prices in the city where the university is situated.
- Additionally, a student’s ability to prepare meals on their own can significantly lower the cost of tuition.
- Since academics are not just available on-campus, the cost of eating out or intercity travel will be included in the total fee.
- Many regions, including the US and Australia, have cheap used car markets and reasonable gas prices. In contrast, students in countries like Ireland receive discounts on public transportation. All of this requires preliminary research.
- In the city where the university is situated, there are opportunities for part-time employment. There are enticing part-time occupations with regulated minimum earnings in several nations. This assists students in paying for a sizable portion of their living costs.
FAQs on Education Loans and Living Expenses
What percentage of living expenses does the loan cover?
The percentage can vary depending on the lender, your chosen university’s location, and your course duration. It typically falls between 30% – 70% of the total estimated living expenses.
Can I apply for a separate loan for living expenses?
While some lenders might offer a combined loan, you can explore separate personal loans to bridge any gap between the sanctioned amount and your actual living expenses. However, remember the additional interest burden of a separate loan.
Are there any living expenses not covered by the loan?
Discretionary expenses like entertainment, shopping sprees, or travel beyond academic purposes typically aren’t covered.
What documents are needed for living expense coverage?
Universities’ cost of living estimates, proof of accommodation arrangements (if any), and detailed living expense breakdowns are usually required.
