Scholarship rejected for study-abroad? Here's what to do next

The lower the loan amount, the higher is the interest rate. So this means that if you are taking a loan of Rs 4 lakh or below, you could be charged an interest rate of as high as 15.2 percent per annum.

Another thing to remember for education loans is that the issuance of a loan is purely on the basis of the credibility of the institute that you are planning to join.

For instance, getting an education loan for pursuing education at the University of Oxford, Harvard University, Stanford University or Massachusetts Institute of Technology (MIT) would be far easier than an institute newly set up in even the UK or the US.

Also, banks and non-banking financial companies (NBFCs) seek collaterals depending on the loan size and institute. The collateral could be a fixed deposit, house, land or shop that is held as a security deposit. If you are unable to repay the loan, this collateral will be sold in the market to get the money.

Newer funding options 

Now, coming to the other options. The proliferation of smartphones and cheap internet means that even those who earlier didn't have access can now opt for newer funding options.

Crowdfunding is one such option. It involves seeking funds from the public through online platforms. A flat commission of 5-7 percent on the amount raised plus a registration fee is charged by the portals.

In addition, there could also be a payment gateway charge of 3 percent since these online fundraisers need to set up a payment mechanism for the individual. This is automatically deducted from the money raised.

But, keep in mind that these platforms do not guarantee any success and it depends purely on your marketing skills.

Pavitra Sivasankaran, a 20-year-old mechanical engineering student tested some success in raising Rs 12 lakh when the money she saved for a course (she is currently pursuing in the US) had to be partially spent on an emergency medical procedure.

Sivasankaran set up campaigns of Rs 20 lakh in total at two crowdfunding platforms. She fell short by Rs 8 lakh but was still able to study abroad. The rest of the money came from a gold loan taken after hypothecating some jewellery.

"I was at least able to raise Rs 12 lakh. Two other people from India who were looking to raise Rs 40 lakh for the same course in 2019 could raise only a few thousand. These students had to drop their study-abroad plans," she added.

For crowdfunding, creating an impactful campaign video to share on social media could be more effective. If you are active on platforms like Facebook, Instagram and Twitter, tag verified handles (especially actors, influencers and politicians) with a considerable following (20,000 and above) so that you are able to expand the campaign reach.

These influencers may or may not share your request, but at least give it a try.

There are pitfalls here too. If you have to submit your course fees within 30-40 days, it is necessary that you start your campaign at least five to six months in advance. This will give you considerable time for fundraising. Also, if you are not able to meet the funding and only have 4-5 weeks to join, it will help to source it via other means.

Tapping the alumni network

All international institutes have a wide alumni network across the world. These could be businessmen, corporate CEOs, educationists, artists or even politicians.

Depending on the course you apply for, do a quick search on the past alumni from India. There are alumni groups that are active on social media as well. If you are unable to secure funding, these groups could help in either crowdsourcing it via their network or helping with alternate finance mechanisms.

Again, one must remember that there is no guarantee that the alumni would be able to fund your education. However, they could know of specific funding/scholarships available for Indian students and their personal reference would improve your chances of getting it.

Deferring the admission

This will be the last option to defer the admission to a later year/term if you are unable to meet the financial requirements. Not all international universities allow this, except under circumstances like ill health or visa issues.

You need to first reach out to the admissions office of the university you are seeking admission to. Explain your financial constraints and ask for alternate funding mechanisms. Sometimes, a lot of partial funding schemes not available publicly are offered on a one-on-one basis to exceptional talent. So there is a possibility that you could meet the funding gap through this.

If not, send a formal application to defer your application. Each university would have its own criteria to accept/reject this request. Here, you need to take into account the fact that the fee could be raised next year. Also, exchange rates (Euro, British pound, US dollars) are volatile so even if the course fee is unchanged, you could end up paying a higher amount if the Indian rupee depreciates.

It will be a painful decision to not pursue the offer of admission from a coveted Ivy League school due to a financial constraint.

If you have exhausted all options, do not still pack your bags and travel. "I will figure this out when I reach there" or "I will work part-time and pay my fees" is not a wise decision at all.