How Do Indian Students Afford Studying Abroad?

Studying abroad is a dream for many Indian students as it offers better career opportunities, world-class education, and exposure to different cultures. But with rising tuition fees, high living costs, and additional expenses like travel and insurance, financing international education can be a big challenge.

So, how do Indian students afford to study overseas? The answer lies in a combination of strategic financial planning, getting an education loan for studying abroad, scholarships, part-time jobs, and smart foreign exchange management. Let’s take a detailed look at how students overcome financial barriers to make their dream of studying abroad a reality.

Education Loans: The Most Common Funding Option

One of the most popular ways Indian students fund their studies abroad is through education loans. These loans cover various expenses, including tuition fees, accommodation, travel, books, and even daily living costs. Banks and financial institutions offer both secured and unsecured education loans, depending on the amount required and the student’s financial background.

Types of Education Loans

1. Secured Education Loans
   • Requires collateral such as property, fixed deposits, or insurance policies.
   • Offers lower interest rates and higher loan amounts.
   • Offered by nationalized banks like SBI, Bank of Baroda, and private banks like HDFC and ICICI.
2. Unsecured Education Loans
   • Does not require collateral.
   • Has higher interest rates and stricter eligibility criteria.
   • Offered by NBFCs (Non-Banking Financial Companies) like Avanse, InCred, and Prodigy Finance.

Loan Amount and Interest Rates

• Public Sector Banks (SBI, Bank of Baroda, etc.): Offers loans up to ₹1.5 crore with interest rates ranging from 8% to 10%.
• Private Banks (HDFC, ICICI, Axis Bank, etc.): Provides up to ₹40 lakh without collateral and up to ₹1 crore with collateral. Interest rates range from 9% to 14%.
• NBFCs and International Lenders (Prodigy Finance, MPower, etc.): Offer unsecured loans but with higher interest rates (10% to 16%).

Repayment Terms: Most education loans offer a moratorium period; students don’t have to start repaying until six months to a year after completing their studies. Some banks also provide interest rate subsidies for students from economically weaker sections.

Scholarships and Financial Aid: Reducing the Cost Burden

Scholarships can greatly reduce the financial burden of studying abroad. Many universities, governments, and private organizations offer scholarships based on merit, need, or specific study fields.

Types of Scholarships Available for Indian Students

1. Merit-Based Scholarships
   • Awarded to students with excellent academic records or achievements in extracurricular activities.
   • Examples: Chevening Scholarship (UK), DAAD Scholarship (Germany), Australia Awards Scholarship.
2. Need-Based Scholarships
   • Offered to students from economically weaker backgrounds.
   • Examples: Tata Scholarship for Cornell University, Fulbright-Nehru Scholarship (USA).
3. Country-Specific Scholarships
   • Provided by governments of popular study destinations.
   • Examples:
     • USA: Hubert Humphrey Fellowship, Inlaks Scholarship.
     • UK: Commonwealth Scholarship, GREAT Scholarships.
     • Canada: Vanier Canada Graduate Scholarships.
     • Australia: Destination Australia Scholarship.
4. University-Specific Scholarships
   • Many universities offer tuition fee waivers or grants for international students.
   • Examples: Oxford-Weidenfeld and Hoffmann Scholarship (University of Oxford), Stanford Reliance Dhirubhai Fellowship (Stanford University).

How to Apply for Scholarships?

• Start early: Many scholarships have deadlines a year before the start of the academic session.
• Maintain a strong academic record: High scores in exams like GRE, GMAT, or IELTS increase your chances.
• Write a good SOP (Statement of Purpose): A well-crafted SOP can help your application.

Part-Time Jobs: Earn While You Study

Many countries allow international students to work part-time during their studies. This not only gives you extra income but also professional experience.

Part-Time Work Rules in Different Countries

• USA: You can work up to 20 hours a week on campus. Off-campus work is allowed under Optional Practical Training (OPT) and Curricular Practical Training (CPT).
• Canada: You can work 20 hours a week during the semester and full-time during holidays.
• UK: Allows 20 hours a week during term time and full-time during breaks.
• Australia: You can work 48 hours a fortnight during the academic session.
• Germany: You can work 120 full days or 240 half days a year.

Popular Part-Time Jobs for Indian Students

• Retail jobs (cashiers, sales assistants)
• Hospitality jobs (waiters, baristas)
• Campus jobs (library assistants, research assistants)
• Online freelance work (content writing, graphic design, tutoring)

Many students also take up paid internships to gain industry experience while getting a stipend.

Role of Forex Services in Managing Finances

Managing money while studying abroad is not just about funding—it’s also about managing expenses smartly. This is where forex services come into play.

Currency Exchange Solutions

Before moving abroad, students need to convert Indian rupees (INR) into their host country’s currency. Service providers like Unipay Forex offer the best exchange rates and help students save money on conversions.

Prepaid Forex Cards vs. International Debit Cards

1. Prepaid Forex Cards
   • Load multiple currencies and use them for transactions abroad.
   • No transaction charges for payments.
   • Safer than carrying cash.
2. International Debit/Credit Cards
   • Allow transactions globally but may have high foreign transaction charges.
   • Best for emergencies rather than daily expenses.

Money Transfers & Tuition Fee Payments: Forex services also offer affordable international money transfer options, including wire transfers and remittance services, for secure payments of tuition, rent, and living expenses.

Currency Fluctuation Management

Exchange rates fluctuate, and this can impact how much you pay for tuition and expenses. Some forex services offer:

• Forward contracts: Lock in an exchange rate for future use.
• Rate alerts: Notify you when exchange rates are favorable.

Conclusion: Making Studying Abroad Affordable

Funding an international education requires planning, research, and smart financing. Indian students use a combination of:

• Education loans for tuition and big expenses.
• Scholarships to reduce the financial burden.
• Part-time jobs for daily expenses.
• Forex services for cost-effective money management.

By using these strategies, Indian students can afford to study abroad without financial stress. With early planning and the right financial tools, studying abroad can be a reality.