Education Loan: A Prudent Choice for Students

As the numbers of Indian students seeking to get enrolled in some of the best places across the globe continues to soar high, it reaches an impressive number of 1.3 million for the year 2024. Yet, for many, the exorbitant costs of international education remain a formidable obstacle. But what if there was a way to bridge the gap between your dream university and your financial reality??

Globalisation has had a significant impact on international studies by providing students with extraordinary options, which has led to a steady rise in the number of international students and a more interdependent world. While globalisation has undoubtedly created new opportunities, it has also made the gap between affordability and ambition wider. This means that a growing number of talented students confront the sad reality of not being able to fulfil their academic dreams because traditional funding options not only deplete all your life's savings but also often fall short. Enter education loans, which are changing this financial scene and enabling millions of people to pursue their ambition of studying abroad.?

The cost of education in top study destinations such as the UK and Ireland, for most students has proven to be a significant stumbling block. Tuition fee alone ranges from ￡10,000 to ￡35,000 per year, depending on your course and university. Other than this, living costs can range from ￡12,000 to ￡15,000 per year for cities like London or Dublin while other cities are relatively cheaper. This cost will cover accommodation, food, travel and all other miscellaneous expenses. In addition, traveling costs will only further worsen the financial situation since international students will likely have to budget for flights and occasional visits back home. On top of this, with the cost of books, supplies and health insurance, you realise that the financial commitment required to study overseas can be truly daunting.?

Such a hefty amount discourages many students from applying in the first place, more so if the financial resources of their families are limited. Education loans have, however, become a lifeline to determined students planning to study overseas. Appropriate options for study loans relieve this burden, thus making the students worry less about mounting costs and allowing them to focus on their studies and future. Education loans cover not only tuition fees but also help with living expenses and other associated costs, thus bridging the gap between a student's academic aspirations and financial reality. With competitive interest rates and flexible repayment options, education loans are proving to be an essential tool for students worldwide looking to turn their dreams into reality.?

Availing of an education loan to fulfil the aspiration of overseas education not only eases parents’ stress but also allows the student to earn the "self-made" badge. This acts as a critical shift in perspective for many students as they now recognise that studying in a foreign land to pursue their career-defining education requires their commitment to being independent. They come to understand that they themselves can manage such heavy financial liabilities attached to education through education loans. Education loans enable the student to achieve their dreams first and then pay for them later once the education equips them with skills to earn a livelihood.?

Parents are usually required to co-sign their child’s education loan, and it can be a tough decision for them, especially when they may not have the means to pay the entire cost of their child's education. Also, they often act as guarantors, which may or may not require them to provide some form of collateral. The good news is that under the Indian tax act, under Section 80E of the Income Tax Act 1961, tax deductions have been provided; these deductions account for the interest on the loans borrowed for studies and provide huge financial relief in these times to the parents. This again makes these loans a much-needed financial backing option for them.?

From the perspective of education loan providers—be it a bank or an NBFC—comes the idea of securing one's investment. They generally carefully assess the background of the parents and even demand collateral to mitigate risks, but they also realise that international education is a golden opportunity for students, so they provide flexible terms and policies. This flexibility makes education loans a prudent choice for students, who can then pursue their education without the hindrance of financial constraints. In this sense, education loan can be seen as a transformative step for many students, one that empowers them to take control of their future. The support for education loans provides students with an opportunity to break through financial barriers and access global opportunities where the investment they make in themselves will surely pay off in the form of personal and professional success.?

To conclude, overseas education investment can unlock innumerable avenues, both in the professional as well as the personal sphere of life. Indeed, the costs may seem to be overwhelming; however, when proper steps, such as getting an education loan are taken, turning these dreams into a reality can be a breeze. Education loans do not burden; instead, it is a power that enables a student to invest in his future. With flexible repayment options, competitive interest rates and the promise of global exposure, they help students break through financial barriers and achieve their academic and by extension career goals.?

At Fateh, we specialise in guiding students through every step of their journey to study abroad, including assisting with education loan processes. If you are ready to make your international education dream a reality, let us help you at every step. Reach out today and start your path toward a brighter future!?