Studying abroad offers invaluable benefits for both personal growth and career development. However, the financial burden often poses a significant challenge. Despite this, students from middle-class families can still pursue international education by leveraging scholarships, educational loans, and part-time jobs.
Funding Overseas Education
Studying abroad provides students with a unique experience that fosters personal development, broadens global perspectives, and enhances career opportunities under the guidance of experienced professionals. While the cost of tuition and living expenses can be prohibitive, financial aid options such as scholarships and education loans make this dream attainable for many.
Scholarships: The Primary Source of Funding
Scholarships are the foremost method to fund overseas higher education. They generally fall into three categories—government scholarships, university-specific awards, and private institution scholarships—covering tuition, living expenses, and other related costs.
Government Scholarships: These are typically merit-based and aimed at talented students from India who aspire to study abroad but worry about costs. Many government scholarships are fully funded, covering tuition fees and additional expenses. Examples include the Fulbright-Nehru Master’s and PhD Research Scholarships, the Fulbright-Kalam Climate PhD Scholarship, and the National Overseas Scholarship (NOS).
University-Specific Scholarships: Many top global universities offer financial aid on a first-come, first-served basis. These scholarships are often reliable and generous. Students are encouraged to explore university websites thoroughly and apply to all relevant scholarship programs beyond the well-known ones.
Private Institution Scholarships: Several private organizations provide financial support to academically outstanding students facing economic hardship. Popular scholarships include the JN Tata Loan Scholarship, Felix Scholarship, and Tata Scholarship for Cornell University.
Educational Loans: Another Popular Option
Education loans represent the second most common method to finance studies abroad. Various banks and Non-Banking Financial Companies (NBFCs) in India offer loans to eligible students, covering tuition, living, and travel expenses. Choosing reputable universities and demanding courses is vital to ensure the ability to repay loans.
Indian education loans mainly come in two types:
Secured Loans: These require collateral such as property or fixed deposits. Though they generally have lower interest rates and higher loan limits, approval can take longer due to more extensive verification.
Unsecured Loans: These require no collateral and are approved based on academic performance and the income of the co-applicant. They usually carry higher interest rates but have faster approval processes and flexible repayment terms.
Leading education loan providers include State Bank of India (SBI), HDFC Bank, Axis Bank, Punjab National Bank (PNB), Bank of Baroda, ICICI Bank, Federal Bank, Union Bank of India, Industrial Development Bank of India, and Avanse Education Loans.
Part-Time Work While Studying
Part-time jobs offer students an opportunity to ease financial pressure during their studies. Most students can work between 30 and 48 hours per week on campus, earning an average of $15 per hour in developed countries. This allows them to make around $2,000 to $2,400 monthly, enough to cover living expenses of up to $1,000. Universities typically provide more job opportunities compared to smaller colleges, making them ideal for students seeking part-time income.
Student Survey Insights
A recent Shiksha survey of over 1,600 students revealed that more than 85% plan to finance their overseas education through scholarships, while 11% intend to rely on education loans. Other funding sources such as sponsorships, fee waivers, and personal funds accounted for smaller shares.
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