Studying Abroad Requires Knowledge of Student Loans

Types of Student Loans Indian Students

Attending university in another country can be the thing that changes a person and helps him or her to expand the world view. But this comes with great costs. Therefore, it is essential to understand the different kinds of loans that are available for Indian students to make the right decisions in funding. This blog provides brief information about different types of loans that Indian Student must know when they are applying for abroad education. 

Federal Student Loans

Federal student loans are loans provided by the government to help students cover the cost of education. These loans have lower interest rates and have flexible repayment options.

Private Student Loans: Private student loans are as those which are provided by the banks and other financial companies. These loans come with credit check, or a cosigner, and the interest rate varies higher than federal loans. You should undertake a wide research and secondary research on other private loan products to come up with the best one to go for.

Scholarships and Grants: Financial aid is money for college that should not be paid back and scholarships and grants are two types of this. The students wishing to pursue their education overseas should look out for various international scholarships available with the colleges/ universities, embassies, and local funds. 

Work-Study Programs: As a result of globalization, some countries have introduced work-study options where the students can work part time while studying. This can help to get some work experience and contribute to covering living expenses. Thus, you should investigate whether or not such programs exist in the selected country and what the requirements to qualify are.

Read More: Student Loan for Overseas Education

Education Loans from Indian Banks

Many Indian banks offer specialized education loans for students planning to study abroad. These loans cover tuition fees, travel expenses, and other related costs. These loans are specifically designed to fulfill the needs of students seeking higher education abroad. Some of the key features include competitive interest rates, flexible repayment conditions, and the option to start repaying the loan after completing your studies. The banks of Public sector such as the State Bank of India (SBI) and private banks like HDFC and ICICI offer these loans.

Foreign Bank Loans

Did you know that you can also explore loan options from banks in your destination country? Many international banks provide loans to international students, including Indians, studying in their respective countries. 

Scholarship and Grant Programs

Scholarships and grants do not mean real loans, but they offer a nice opportunity to get a desired sum to continue education without debts. Thus, the Indian students are able to tap various scholarship programs offered by both the Indian government as well as many global organizations. The most prominent of these are MHRD Scholarship, under which, Indian citizens are provided with an opportunity to get scholarships to pursue higher studies in foreign countries. Also, the diverse universities and colleges offer various scholarships and grants whereby you are awarded depending on your performances or need or based on specific standards of your course of study.

Read More: Student Loan: Questions to Ask Yourself Before Getting Started

Government Funded Programs

Some countries, such as the United States, offer government-funded loan programs for international students.

Private Student Loans: Private lenders and financial institutions offer these loans. These loans can fill the gap if you need extra funds to cover your educational expenses.

Peer-to-Peer Lending: In recent years, peer-to-peer lending platforms have gained popularity as alternative sources of financing for students. These platforms connect borrowers with individual investors willing to lend money. 

Employer Sponsorship: If you're already employed, check with your current employer about sponsorship or tuition reimbursement programs. Some companies support their employees' pursuit of higher education by covering part or all of their tuition fees. This can significantly reduce your financial burden of studying abroad.

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Study Abroad Program Financial Aid

Scholarships and financial assistance are programs available through the sponsoring institution of the study abroad program. If you are harbored in a certain study abroad programme contact the officials or director of the programme to seek for a financial help.

Family and Personal Savings: The last but not the least option is to take money from the family savings or from your own savings to finance your education abroad. Thus, even if this option demands time and constant control of one’s expenditures, it does not leave the holder under the supervision of loans which have to be paid throughout the years.

Get assistance to study abroad from our international education experts at Gateway Educonnect and who can help guide you throughout your study abroad journey & avail our wide range of services for students on destinations like Studying in UK, Studying in USA, Studying in Canada, Studying in Ireland, Study in Netherlands and many other countries.