Studying abroad has become an increasingly popular choice for Indian students seeking high-quality education and global career opportunities. As of 2024, approximately 1.33 million Indian students are studying overseas, up from 1.31 million in 2023 and 907,404 in 2022. However, one of the biggest challenges faced by students and their families is financing the expenses associated with studying overseas, including tuition, accommodation, travel, and living costs.
While traditional student loans or scholarships are well-known options, Student trust funds can be an essential financial tool that many students may not be aware of. These funds, if available, can provide the financial relief needed to pursue education abroad. In addition, platforms like EduFund are revolutionizing the way Indian students can plan and save for their education abroad, through investments in mutual funds, fixed deposits (FDs), digital gold, and study abroad education loans.
In this blog, we’ll explore how Student Trust Funds work, how they can benefit Indian students, and how EduFund can enhance this experience with flexible financial planning tools.
What is a Student Trust Fund?
A Student Trust Fund is a financial vehicle typically established by individuals, families, organizations, or institutions to provide monetary support for a student’s education. The fund is generally managed by a trustee who oversees the use of the money and ensures that it is spent according to the terms of the trust, such as covering tuition fees, living expenses, books, and other educational needs.
The concept of a Student Trust Fund is based on a legal arrangement where a sum of money or assets are placed in a trust for the benefit of the student. There are various types of student trust funds:
- Private Trust Funds: These funds are usually set up by the student’s family or benefactors. The family may deposit money into the fund over time, and the fund is typically designed to be used for the student’s education.
- University-Specific Trust Funds: Many universities have funds dedicated to helping students in need. These funds can be used for scholarships or to help cover tuition and other costs. Some universities offer a combination of endowment funds and trust funds for supporting domestic and international students.
- Government-Funded Trusts: Governments, especially in countries with significant international student populations, may establish student trust funds to provide financial assistance in the form of scholarships or grants. In India, there are some government-backed scholarship schemes that function similarly to trust funds.
- Charitable Trusts and Foundations: Several charitable organizations create trust funds specifically designed to help students pursue higher education, including study abroad programs.
Key Features of Student Trust Funds:
- Income Generation: The money in a trust is usually invested, and the returns (interest or dividends) are used to cover education-related costs.
- Capital Protection: Most student trust funds ensure that the principal amount remains safe, with the income being used for educational purposes.
- Flexible Usage: The funds can be used for a wide range of educational needs, including tuition, study materials, accommodation, and travel expenses for international education.
How Indian Students Can Benefit from Student Trust Funds for Studying Abroad
While Student Trust Funds are not commonly accessible to every student, they can be a significant resource for Indian students wishing to pursue education abroad. Here’s how Indian students can benefit from Student Trust Funds:
- Financial Security for Study Abroad:
- Many families set up trust funds to ensure their children can study abroad without worrying about tuition fees or other costs. These funds can cover a wide range of expenses, including visa fees, health insurance, accommodation, and travel costs.
- Reduced Dependency on Loans:
- A well-managed student trust fund can significantly reduce the amount of loan a student needs to take for studying abroad. This means less financial strain and a smaller debt burden post-graduation, enabling the student to focus more on academics and career development.
- Support for Long-Term Goals:
- Trust funds can also be a way to save for higher education expenses over time. Whether it’s through mutual funds, fixed deposits (FDs), or other investment avenues, the assets in the fund grow over time, ensuring that the student has enough funds when the time to study abroad arrives.
- Scholarships and Grants through University Trust Funds:
- Some universities abroad offer scholarships or financial assistance through trust fund-based endowments. Students applying to these institutions may be able to access these funds to cover part of their tuition or living costs.
- Tax Benefits:
- In some cases, student trust funds may offer tax advantages. Contributions to the fund may be tax-deductible depending on the jurisdiction or the fund’s structure. This can provide financial relief for the family while accumulating funds for the student’s education.
How EduFund Enhances the Benefits of Student Trust Funds for Indian Students
While Student Trust Funds are an excellent source of financial support for education abroad, many Indian students may not have access to such funds. This is where EduFund comes in as a game-changer. EduFund is an investment platform specifically designed to help Indian families save and plan for their children’s education, especially for study abroad programs. Here’s how EduFund helps:
1. Mutual Fund Investments for Education Fund Building
One of the most efficient ways to accumulate funds for studying abroad is by investing in mutual funds. EduFund allows families to invest systematically in mutual fund portfolios tailored to achieve specific educational goals. Mutual funds provide an opportunity for wealth creation through the power of compounding, with the potential for higher returns compared to traditional savings.
- How EduFund Can Help: EduFund offers a range of mutual fund options, from equity funds to debt funds, based on the student’s risk profile and investment timeline. By starting early with a Systematic Investment Plan (SIP), Indian students can grow their education corpus over the years.
2. Fixed Deposits (FDs) for Safer Investment
For those who prefer low-risk investments, EduFund provides access to fixed deposits (FDs), which are one of the safest investment options. While returns are lower compared to equity investments, FDs provide capital protection and fixed returns, which makes them suitable for families who need to secure their funds for educational purposes.
- Why FDs with EduFund?: EduFund helps users select the best FD options with competitive interest rates and flexible tenures. These funds are ideal for those who need to ensure that their funds remain accessible and secure.
3. Digital Gold as a Long-Term Investment
Digital gold has emerged as an innovative way to save for education. With EduFund, families can invest in digital gold to accumulate wealth for their child’s study abroad expenses. Gold is a historically safe investment, and digital gold offers liquidity and low entry barriers, making it an accessible way for families to invest.
- How Digital Gold Helps: EduFund allows families to invest in small amounts, gradually building a significant sum over time. This gold can later be liquidated when the student is ready to travel abroad.
4. Study Abroad Education Loans
EduFund also facilitates study abroad education loans. For students who require additional financial assistance, EduFund partners with financial institutions offering low-interest loans for education abroad. These loans can cover all aspects of studying abroad, including tuition, accommodation, travel, and other related expenses.
- Benefits of EduFund’s Education Loans: The loans are tailored to suit the needs of international students and are available with flexible repayment terms. EduFund’s platform helps students compare different loan options to choose the best one based on interest rates, loan amounts, and repayment schedules.
Conclusion
Financing education abroad can be a challenging task, but with the right resources and planning, Indian students can achieve their dream of studying in international universities. Student Trust Funds can be a valuable tool in providing financial support, but not all students have access to these funds. Thankfully, platforms like EduFund offer innovative solutions through mutual funds, fixed deposits, digital gold, and study abroad education loans, ensuring that students can accumulate the necessary funds to study abroad.
By combining the benefits of traditional Student Trust Funds and modern investment tools provided by EduFund, Indian students can make their study abroad dreams a reality, without the financial strain that often accompanies it.
If you’re ready to start planning for your child’s education abroad, EduFund is here to guide you every step of the way. Start your journey today!
