Going abroad for higher studies is one of the universal aspirations of many Indian students. 2 years late due to COVID, students As the number of international students from India crossed 1 lakh in March 2022, a large number of time lost seems to be making up. This enthusiasm is quite understandable, as international education promises both academic and personal growth with quality and diversity. in India. Unfortunately, this ideal is impossible to achieve without dealing with the real cost of foreign education. Quite simply, going abroad is expensive. Therefore it is necessary to account for it.

Having said that, money concerns should never stop us from taking the first step towards overseas education. Students start their journey by finding the best courses, universities and colleges and build a slew of institutions they can consider. This is when the budget should come. Accounting for virtually all aspects of life abroad, from tuition fees to laundry, accommodation to the internet, helps maintain financial stability and peace of mind. Which leads to overall better performance. Here’s how you can budget well for your international studies.

Destination

Perhaps the most important factor when budgeting for overseas education is the target country and its cost of living. This step is extremely important as these expenses will follow students off campus and can drive up costs much higher than advertised course fees. As such, a good budget will take into account currency exchange rates, the state of the country’s economy, cost of living estimates, etc. While it may seem complicated and unnecessary, there is no shortage of services and resources that can support students or parents. with every step of the process.

The UK, Canada and Australia have emerged as the top three most popular countries for Indian students seeking courses in finance, economics and earth sciences. Mentioned below are the average cost of undergraduate and postgraduate degrees.

TeaTheir cost can vary widely, depending on which subject one chooses, the university they choose along with the subject.

Here is a look at the average fees for each course from some of the top universities in these countries.

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(Graphics by Sanjita Kalra/ET Online)

let your grades cost you

Scholarship often strikes students as a difficult task. A specialized tool used only by the best students and thus, out of their reach. Thankfully, this is far from the truth. Almost all good universities offer some sort of grants and scholarships based on merit. It is logical for students to apply for as many opportunities as possible to reduce their overall spending. This is especially true for international students as international exchange rates are rarely favorable for the Indian rupee. By casting a wide net and striving for all available programs, students can rapidly increase their scholarship prospects. In addition, there are many online resources to help you prepare a comprehensive list of scholarships.

financial instruments

Ironically, one of the most stressful decisions in budgeting for international education comes after all the planning has been done: budget funding while always dealing with the whimsical foreign market. Below are some tools for you to consider:

• Borrow abroad: One of the most effective financial instruments in such cases is the home loan provider of the country of your choosing. By getting a loan provider from the destination country, a student can ensure that the loan is disbursed and repaid in the same currency in which it is borrowed. This minimizes the risk without the loss of currency conversion.
• Explore University-affiliated lenders: Some universities collaborate directly with financial institutions for the benefit of their international students. Educational loans obtained in this way are processed faster, have lower interest rates, and also benefit from lower volatility.
• Let’s examine the fixed rate loan uncertainties: Fixed-rate loans are the preferred form of loan in overseas education. This is only natural as fixed rates allow students to plan long-term without worrying about the fluctuations in myriad market conditions. Variable rate loans are discouraged because their interest rates are beyond the control of both financial parties.
• Invest in foreign assets: Parents may decide to invest in foreign markets to hedge against exchange rate fluctuations and currency swings. While potentially effective, this type of investment requires a range of capital and expertise and is most effective over a longer time frame.
• Get Consulting Services: Some families decide to outsource these financial matters to specialist educational services in direct contact with universities. Such services have become a trusted mainstay in international education finance around the world.

Finally, while budgeting for overseas education can be a complex and monotonous endeavor, it ultimately ensures a happier and more satisfying stay abroad and gives students the opportunity to experience the new country more fully. And that, perhaps, makes all the effort worth it.

(The author is the founder of ASL – the parent company of UniAcco, UniCreds and UniScholarz.)