How smart financial planning can help with substantial savings on your study abroad dreams

If you have been planning to study abroad, you will know that it will be an expensive affair. Almost all aspirants find finances as the major deterrent to pursue education in an international university. While tuition fees make up the biggest chunk of your expenses, other significant costs that add to the financial stress are accommodation, transport, and utility expenses.

Does this mean there's no way you can fulfil your long-cherished dream of studying abroad on a pocket-friendly budget?

Studying abroad these days is much more inclusive for aspirants across varied backgrounds because there are ways to pursue it on a pocket-friendly budget. And, smart financial planning that involves comprehensive research can play a crucial role in keeping your budget in check.

Let's look at some ways in which you can reduce your financial burden on international education marginally while not compromising on the quality:

FinTech in Education
According to Unitus Ventures - a venture fund supporting early-stage tech startups in India, the education loan market is estimated to be worth $10 billion; hence, a vast scope. This opportunity has provided a fillip to digital lenders who offer flexible loans at minimum or zero interest rates and a 'study now, pay later’ option. This is a relatively dynamic way to finance education while facilitating considerable savings.

FinTech lending organizations, with their unique business models like peer-to-peer lending and crowdfunding, are shrinking the credit gap and leading the way where traditional financial institutions fear to tread.

Most edufin startups use AI and predictive analytics to provide loans based on the future employability of the applicant.

Choose Part Online, Part On-Campus Programs
Slightly unconventional as it was in the pre-Covid times, the hybrid learning model has emerged as one of the most preferred ways to pursue education abroad. This blended learning model is cost-effective and an excellent solution for those dissuaded by the cumbersome application and admission process at international universities. This is because students can take care of the visa and entry process while completing a part of their course in India through online learning.

Starting the course online reduces the program's overall cost by eliminating living costs in another country.

Need-blind Admissions
These must be explored by aspirants targeting top universities in the USA. Need-blind admissions are financial aid offered by universities like MIT, Harvard, Princeton, Yale, and Amherst College. The term 'need-blind admissions' mean that the universities will assess your application without considering your ability to pay the course fees. However, this doesn't mean that it's an entirely free ride. You will have to make some financial contribution that the university will decide after evaluating your parent's income and other sources.
The concept is yet limited to the USA only. But applicants eyeing other study destinations can consider scholarships and grants. These can help you offset the cost of your studies by covering the tuition, living, travel, and other miscellaneous expenses. Even though they are not easy to get through, you must apply for every potential source of financial assistance to reduce your study abroad costs.

Take a Part-Time Job While Studying
Most countries allow international students to work part-time during regular classes, which they can increase to full-time during vacations. Australia has temporarily changed its part-time work policies for students holding Subclass 500 visas, and now, they can undertake work for unlimited hours.

Working while studying helps students manage their living expenses; it also enhances their employability with all the experience gained. Earning part-time can also contribute to partial or sometimes complete repayment of the education loan incurred for overseas education, reducing the financial burden considerably.

Bottom Line
With constant innovation and the growing study abroad market, new cost-effective solutions are being brainstormed and designed every day to bridge the gap between those who aspire to study abroad and those who land admissions to international universities for their education quality and career scope. These pathbreaking reforms to reduce the overall international education cost will surely make studying abroad a more plausible and viable choice.