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Different Funding Options For Students Planning to Study Abroad

Tue April 14, 2020     491

When planning to study abroad, the most critical aspect is finance. It is an unavoidable issue that all international students confront very early on their application process.

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While there are a few students who already have means to finance their education, but a large number of students would want means to finance their education as it would help them live independently and will also lessen the burden on their parents. We know that many of you do not meet the requirements to qualify for scholarships. The only alternative left with students is LOAN.

Funding may vary based on the country and the academic institution, a student chooses. For example, a student studying an undergraduate degree in the United States varies for private and public educational institutes. The tuition fees at private colleges will cost more than that of public colleges and universities.

 

1. Requirements for a student loan

Student loans are offered by a bank or a financial institution or even by the government. One of the main requirements by most banks is that the loan applicant, i.e., the student should apply for the loan from their native country. Even though many banks have branches in other countries these days, but it does not mean that you can apply at any branch. You have to apply for a loan in your home country only.
Many local loan providers are available in other countries as well. For such loans, students applying for a loan need to have a cosigner. The role of the cosigner is crucial as he will handle the repayments on time. If, at any point, the student is not able to repay the loan on time, then the cosigner will be repaying it. Also, the cosigner needs to confirm that they are employed and have an income to meet the bank’s requirements as well. Also, please note, the cosigner is usually a parent of an extended family member only.

 

2. Benefits of a student loan

Every lender, be it a bank or a financial institute, offers different amounts of money to students. This amount covers not only just the tuition fees, but also other university-related expenses like accommodation, books, laptop and even airfares with easy repayment options. The loan terms are usually between 5-10 years.
The main concern of the students of taking a loan is its repayments. Students worry a lot about repaying their loans, and it is usually the biggest distraction during their study period. To negate this distraction, the banks give a certain grace period after they graduate to start paying back. The grace period is a good thing because it gives them some time for the students to search for a perfect job and settle down financially. The grace period usually starts after six months, you graduate.

 

3. There are 2 kinds of student loans:

a.    Subsidized Loans: They are for undergraduate students with financial need, as determined by their cost of attendance, excluding family contribution and other financial aid like grants or scholarships.

b.    Unsubsidized Loans: These loans are for undergraduate and graduate students and are not based on financial need like subsidized loans. Eligibility is determined by excluding family contribution and other financial aid like grants or scholarships.  

c.    Loan consolidation: It is when students combine all of their student loans so that they can get a lower rate of interest or monthly payment. The students also have the option of extending their loan repayment time. Please note that by doing so, will result in an increased rate of interest as the students will be paying back the loan for a more extended period now.

 

4. Tips when you take out a student loan

a. Always remember that loans have to be paid back, and your scholarships and grants don’t. There are chances that students have won some scholarships, but there are many scholarships that do not cover the entire cost of tuition, but they do help a lot! Therefore, make sure you start applying for scholarships as soon as you receive your acceptance letter after all receiving scholarships can be very competitive.

b. Many international students will start their studies at a community college because they offer an excellent education at a lower price. Plus, they are regarded as a great stepping stone to a 4-year university program. You can start your degree at a community college then continue at a partner university. By doing so, you can save a lot of money.

c. Always remember, once you are accepted, plan the classes that you need to take in your degree program. Plan out what classes you can take over the summer when tuition fee is less, and plan when you could take a heavier course to complete your degree in less time. Make sure you’re your 4-year degree doesn’t turn into a 5-year degree course.

d. Make sure to keep your expenses low. Always make sure to plan out where your money can be saved. Some of the easiest ways are-
•    Live with roommates or family members who live near to your college,
•    Use public transportation,
•    Keep your books in good condition so that you can sell them at the end of the term.

 

 Besides these, there are plenty of ways that will help you keep your expenditure to the minimum so that you could repay your student loan in time.
If you are planning to study abroad and looking for some great funding options, then we are sure that this post will help you make up your mind. If you are still confused about where to begin, then fill in your details at our call back form to get a call back from us. We will help you look for top academic institutes and courses matching your eligibility criteria, and you can apply from the comfort of your home. For us, your future is important, and so is your health, therefore, you can apply online!