By Rajesh Kachave
For students planning to study abroad, securing an education loan is often a crucial step towards financing their academic aspirations independently. Hence, it is essential to make a well-informed decision. Here are some important things that students must remember while opting for an education loan.
Research is crucial
A student planning to take an education loan should research thoroughly across online platforms and talk to friends and family members who have taken similar loans before. Many students check out influencer videos, ask questions on Quora, and join social media groups to gather relevant information.
Analyse how much money is needed
Before opting for a loan, a student needs to estimate the total expenditure that will be incurred. Thorough research will aid students in understanding this. Lenders such as Avanse can assist students in comprehending such details. Professionals are readily available to guide them through the academic journey planning.
Student loans should cover the holistic cost of education
One of the criteria that students should consider before opting for an education loan is that it should cover the ancillary expenses. Avanse’s solutions cover the holistic cost of education, including living expenses, accommodation costs, travel expenses, and more.
Choosing the right lender
Selecting the right education financing partner is crucial. While choosing a lender, it is imperative to consider its domain expertise in managing education loans, regulatory norms and unique selling propositions. Being a student-centric organisation, Avanse has devised student-friendly evaluation methodologies. Rather than depending only on the co-borrower’s financial background, we evaluate a student thoroughly. We assess the student’s past academic performance, entrance test scores, university/institute ranking, course, etc.
Opting for the right repayment strategy
It is important to plan the repayment as it can affect a borrower’s credit score. Planning the loan tenure is an important part of this strategy. Students should discuss all the components of a loan, such as the loan amount, tenure, repayment options and EMI, with the lender to design the best repayment strategy that suits the student’s journey ahead.
Other key tips for students
Documentation plays a major role
Multiple documents are required at every step of the journey – past academic records, documents for applying to universities, documents for getting education financing, visa application papers, and more. If students are sorted with their paperwork, half the job is done.
Visa processing
Getting a student visa is a critical step for studying abroad, and the process often takes weeks or even months, depending on the country and its specific requirements. Hence, students must start applying in advance as soon as all the paperwork is ready.
Securing suitable accommodation is a vital aspect of studying abroad. Many students opt to live in university dormitories or arrange off-campus housing. Students should find their stay in advance and finalise it before they reach their study-abroad destination.
It is important to note that specific timelines and requirements can vary depending on the destination and university. Therefore, students should conduct thorough research and interact with peers to avoid hindrances in their study abroad journey planning.
(Author is Chief Business Officer-Student Lending and Insurance Business, Avanse Financial Services)