List of Expenses Covered in Education Loan

As more and more Indian students brave the unknown waters of overseas education, educational institutions worldwide are getting the desi flavor mixed in their frameworks. With all this going on, the impact of accessible and affordable student loan options before Indian students opting for overseas education is most prominent.

With around three lakh Indian students moving every year for their overseas study and nearly one-third of them financing it through property-backed loans, gaining a suitable education loan has become the first step to realizing one’s academic dreams.

Now a credible overseas education consultant can give you the details about the various loan options that will suit your prospective course. However, it is imperative that you first understand the kind of expenses that will be covered under the educational loan.

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Educational Loans and the expenses they cover

With a competitive loan market shared by NBFCSs, Scheduled Banks, Specialist Loan Providers, and International Lenders, student loan options vary. Education loans for overseas study in India can start from four lakhs to one crore according to the course type and associated education costs.

The student loan’s total amount is fractioned into overseas education costs. On the whole, these divisions comprise several factors:

Tuition fees

Tuition fees are the most significant expense for Indian students choosing overseas education.
It can start from around 80,000 to one lakh annually and reach up to three times the same.
Presently, Management programs (MBA, Engineering Management), STEM programs (Data Science, Business Analytics, Computer Applications), and Medical Science (Public Health, Neuroscience) form the most sought course options among international students.
Accordingly, tuition fees can range from around 48 lakhs for reputed universities in the U.S. and start from 15 lakhs in the U.K.

Living expenses

Foreign universities provide hostel facilities for international students within or near the college campus. Otherwise, students are left to find a residence and pay for the same.
Either way, a considerable share of expenses for students going abroad falls under living expenses, including food, residence, and associated expenses like electricity and groceries.
Overall, living expenses could go up to $ 20,000 yearly.
While some loan providers add expenses of this account within the principal amount, the share of the same has to be previously clarified.

Travel expenses

Owing to the competitive aviation industry rates, traveling expenses can be a significant source of expenditure for international students.
Loan options with/without coverage for travel expenses are present in the market.
Based on the student’s economic situation, they can choose a suitable package with the cost covered in it.

Insurance premium

International students going for overseas study are required to either have a credible health insurance package to their name or become part of the student health insurance under the university,
As it is a mandatory clause for admission, many loan providers oblige with allocating the sum required for the same within their principal amount.

Educational Resources

Another overlooked part is the cost of educational resources needed for students in their course period.
These costs could include the cost of books, examination fees for each semester, library fees, and the cost of instruments.
Sometimes it also includes the amount to buy a laptop for the course.
Most lenders like SBI, HDFC Credelia, and Avanse provide for the same under the condition that they are capped at a specific percentage of the total tuition fee.

Miscellaneous Expenses

Caution deposit, building fund/refundable deposit supported by the institution
As these expenses vary for each student, loan amounts usually do not have specific allocations.
However, if they have sizeable costs, students can apply with the required documents and pursue their lenders to allot them a considerable amount.
Similar to Educational resources, loan allocations for these expenses are around 10% of total tuition fees.

With such costs burdening their academic choices, students have much to consider before opting for higher education in overseas universities. However, student of the present generation has the fair advantage of credible overseas education consultants who can help them steer clear while venturing into these varied student loan lender options.

Choose EduLoans for a better understanding of overseas education costings

Educate yourself well before deciding where you want to source your finances and your future. Our team at EduLoans will be there with you as you move forward in this journey. Contact us, and let’s discuss how to find the perfect student loan options for you.

List of Expenses Covered in Education Loan For Study Abroad