All About Overseas Education
Education transforms a person to live a better life and more importantly in a social well being. This is a fact that cannot be denied by any of us. Today, education has been globalized and a large number of institutes are offering a large number of undergraduate, graduate and post graduate courses. Even parents are ready to give their child the best possible education.
As a result, the number of students opting for studying abroad is increasing day by day, but, a retarding factor for students seeking education abroad is the high cost of studies which can be more than ten times than that in India.
In order to get a study visa, sufficient funds need to be shown to the embassy. The funds should be enough to cover the fee and the living expenses for at least one year. If you are looking forward to study in the United States of America (U.S.A), mentioned below are some of the options you could consider for funding your education.
University/College Funding Option/Financial Aid
The options for getting financial assistance for undergraduate courses are very limited. Universities provide financial assistance to international students only on the basis of merit. Courses like engineering, biological sciences are given preference over courses like social sciences and management.
A foreign student seeking financial aid has to fill the Foreign Student Financial Aid Form, which will be provided by the college. The necessary details that will be required will be as follows
· Annual income of the applicant
· Annual income of the applicant’s parents
· Annual living expenses of the applicant
In most of the cases, the assistance is provided at the on set of the studies, but in some cases there must be a delay of one or two semesters.
Post Graduate Courses
Post-graduate students also need to fill in any requirements at the time of filling the application form. The different types of financial assistance available include
Scholarships are a great source of funding that one does not have to pay back. Mostly they are granted to outstanding students on the basis of merit. They range from small-one-time only awards to full-expenses that pay all the tuition and expenses throughout the college tenure.
Assistantship is an excellent way of earning funds enough for covering living expenses. A cash stipend is paid for assistantship. A student can work for a maximum of 20 hours a week. The work normally consists of teaching and research activities. Often, teaching and research activities need to be proved before assistantship is granted.
Who should apply for financial aid?
· Students having excellent academic record
· Students having teaching experience at the undergraduate level
· Students having research interests parallel to that of the Department
· Students having high scores on language proficiency tests
International student loan
For an education loan in the US, a Student needs to be attending one of the approved schools and must have a US citizen or permanent resident as a co-signer to apply for the loan. The co-signer must have a good credit history.
The chances for the approval of the loan increase with a good co-signer and another advantage of having a good co-signer is a better interest rate. However some banks do not need a co-signer.
The advantages of an international student loan are as below
· No collateral requires
· Flexible repayment terms
· No application fee
· Lower interest rate as compared to what is charged in India
Education loan from an Indian bank
If one is not able to get a loan in US, the next option is to get it here in India
Eligibility for Overseas Education
· Proof confirming the admission
· Satisfactory academic record in the past
No collateral is required for loans up to Rs. 4 lakh. Collateral in the form of a third party security is required for loans ranging from Rs. 4 lakh and up to Rs. 7.50 lakh. 100 percent collateral in the form of immovable property/ LIC policy/ RBI bonds is required for loans above Rs. 7.50 lakh.
An advantage associated with the student loans is that one does not have to pay the installments till the completion of the course. The repayment has to start after 6 months of the completion of the course. In case the persons gets a job immediately after completing the course, the repayments start within 1 month of getting the job.
The maximum repayment time is 15 years from the date of the first disbursement.
Rate of Interest for Overseas Education
Interest rates are generally between 10 percent to 15 percent. Banks offer a choice between fixed and floating rates of interest. The foreign banks generally charge fixed rates of interest.
No prepayment charges are levied.