Numerous students dream of pursuing higher education abroad. However, affording the cost of education abroad can be a huge challenge for many families. Right from accommodation and travel expenses to tuition fees, studying abroad often involves a hefty price tag.

Fortunately, today, loans for education abroad are readily available to help bridge this financial gap and make quality education accessible to a larger number of students. Several banks and non-banking financial companies or NBFCs across India offer education loans. To avail of such a loan, students must:

Calculate the Total Costs

 First of all, it is important to calculate the total cost of higher education. A number of students make the mistake of simply focusing on the tuition fees. However, it is important to remember that living in cities like New York or London can also be a huge part of the overall budget. Tuition fees are simply a part of the equation. Students must also account for living expenses, study materials, travel and more. A good understanding of these figures would give students a better idea of how much to borrow.

Evaluate Loan Coverage and Eligibility

Diverse lenders tend to offer varying levels of coverage. Some just cover the tuition fees, while others offer a comprehensive loan that includes a part of the living and travel expenses. Interested borrowers must also check the lender's education loan eligibility criteria. This would depend on several factors, like the academic history of the borrower and even the reputation of the institution they are applying to.

Understand Interest Rates and Repayment Plans

The educational loan interest rate is an important factor to consider when trying to find financing to study abroad. Lenders may offer fixed or floating interest rates for such loans. Most prominent lenders work with floating rates to ensure that the borrowers always enjoy a competitive rate of interest. Borrowers can use an education loan EMI calculator to clearly understand the loan repayment obligations before filling out the loan application. Choose a loan with flexible repayment terms. One should search for loan options that offer moratorium periods, which basically allow borrowers to pay the EMIs after completing their studies and securing a job. Many lenders may even allow partial repayment during the study period to help reduce the loan balance. Borrowers should assess their needs and future prospects and select a loan option in accordance with these requirements.

Compare Processing Times and Documentation Requirements

Studying abroad typically requires students to manage several deadlines. This can include university paperwork, travel arrangements and visa applications. Delays in the process of loan application can put the entire plan at risk. One should find a lender that follows a streamlined approval process and has minimal documentation requirements to avoid any last-minute issues in financing higher education.

Following the simple pointers discussed above can help people zero in on the appropriate loan option that makes it simple and seamless for them to study abroad.