The Essential Guide to

Studying Abroad

In-demand streams and post-course opportunities play a role in determining students’ choices. Business, finance and STEM (science, technology, engineering and mathematics) courses continue to drive students’ interests, but after COVID-19, courses in clean tech, specialisation in medical devices, psychology, liberal arts and so on are also in vogue.

Cost of living is a key parameter for zeroing in on a destination city or country. For example, students in the UK may not mind joining a good university in Newcastle instead of London. This is because while the cost of living in London is about £15,000 a year, it falls to around £10,000 in Newcastle. Ranking of universities, too, is a factor. While global university ranking is a key parameter, local ranking gives a better sense of a university’s value.

Ideally, parents should save for their kids’ education well in advance. Scholarships, full or partial, can offer significant relief. Education loans can make up for any shortfall, but the amount of debt taken on should be as small as possible.

Be clear about the current fee structures of the universities on your short list, the number of years to the goal and targeted education corpus size, and then work backwards. If you start early, your investment horizon will be longer, which means you can invest regularly in equities to earn returns that can comfortably beat inflation.

Many universities have three-four rounds of applications, but it is better if you apply in the first or second round itself. If you are planning to apply for the Fall 2023 intake, then by July this year, you should start applying for a scholarship.

Banks or any other entity in the financial sector that provides loans process applications after evaluating your admission letter because the education loan amount varies with the country, your course and the university, among other factors. The collateral that you offer also plays a role. Financial institutions typically do not accept, say, a plot of land as valid collateral.

Most banks cover tuition fees, living expenses, health insurance and cost of study material for education loans. Some banks also cover airfare, cost of laptop, study tours and other expenses that students have to incur to complete the course, but not the cost of external coaching.

Be aware of additional expenses such as cost of accommodation, food and commuting, networking trips, industry tours, and so on. Open bank accounts with local banks and carry prepaid forex cards to meet such expenses. You should also carry international credit cards issued in India for emergency expenses.

Remember that a credit card default due to overspending will affect the credit history of your parents in India. If it’s your own card issued in your destination country, a default or delayed bill payment will dent your credit score, affecting your chances of securing credit or settling down in the country later.