Funding your education through diverse sources

Everyone wants the best education in order to meet their lifegoals and secure their dream job. However, higher education is becoming increasingly expensive. This applies even more so if you wish to study abroad or are out of your hometown, as there are a number of additional costs, including the basics such as housing and food. Some can afford this easily and others at a bit of a stretch, but for many students, it can be out of reach without some financial aid. A good amount of research can go a long way to help you out in such a situation, in a sector where the costs are continuously escalating. Here are five options to look into:

SCHOLARSHIPS

There are a number of scholarships offered by either the colleges you are applying to, government scholarships or scholarships from various educational institutions. One can refer to resources from the Ministry of Human Resource Development, Department of Higher Education which helps students with the scholarship processes of various universities and countries.

There are several websites that have curated lists of scholarships which you can browse through and compare as well. Scholarships can be partial or full, and are awarded on the basis of merit (essays, interests, activities, final marks), need (financial hardship, parents’ annual income), or a combination of both. Most scholarships cover only tuition and fees barring a few which also account for other payments such as living expenses, accommodation and travel. The key is to research extensively, based on the course and universities you want to enrol in and make a list of scholarships that can be availed for these courses and universities.

EDUCATION LOAN

Education loans have come in as a big enabler for aspiring and deserving students. Government of India has categorised educations loans as priority sector loans in a bid to encourage more banks to provide credit to students for higher education. According to a report by credit bureau CRIF Highmark, banks disbursed education loans worth Rs. 82,600 crore in the last fiscal year, FY18, which was 9.25 percent more than the in FY17. The average amount disbursed per applicant climbed to Rs. 9.6 lakh in 2018 from Rs. 6.8 lakh in 2017. Education loans are a feasible choice for funding ones higher education as they come at lower interest rates, have longer loan tenures, enjoy tax exemptions and have a waiting (moratorium) period before EMI repayment begins. However, an education loan of a loan amount exceeding Rs 4 lakh, requires a guarantor and a loan above Rs 7.5 lakh requires a collateral as security. Further, the loan may be available only for admissions to recognised and reputed institutions. These factors limit the available choices for many aspiring students. The other option is to take a personal loan for funding educational expenses either by the parents or by earning candidates. The benefit of a personal loan is that it doesn’t require a guarantor or any collateral security. However, the EMI repayment begins immediately so one needs to plan accordingly. There are several online resources which can guide you about which loan to take and how to go about it.

EMPLOYER SPONSORSHIP

Employer sponsored higher education several large multinational and Indian companies run special programs for high performing and talented employees by offering them paid sabbaticals for higher studies. The employees are allowed to go on sabbatical for higher studies and many times these are paid sabbaticals. A system like this helps companies in enhancing the skills sets of their employees and get higher productivity once these employees are back in the system. This is a convenient option as your financial needs are taken care of, and you have a guaranteed job after you complete your studies as well. While some companies pay upfront for your education, others reimburse you for the expenses. One will have to plan and research well, in order to reap the benefits of this setup.

FUNDING FROM PRIVATE TRUSTS

Private trusts run by large corporate have a number of grants and scholarships available for the meritorious students and students in need of financial support. Several organisations have their own programs to assist applicants with their education expenses. These include the K.C. Mahindra Education Trust and Mariwala Trust which apply across disciplines, and the J.N. Tata Endowment which offers loans for higher studies abroad only. These come in handy if other loans and scholarships don’t work out, and there is a lot of information online about what they cover. One can apply based on their requirement.

WORK AND SAVE

An effective option for those with lack of finances is to work for a year or two and save up enough to fund their own education. For those who can’t or are not willing to wait to pursue their higher studies, working part-time is an option. There are a number of freelance opportunities today, which are a convenient way to make some money on the side if you approach these smartly. This way you can pay your fees while pursuing your studies simultaneously. Education is what determines a big part of how quickly you can settle into a life which is secure and comfortable. However, it is essential to plan your finances as you embark on higher studies including scholarships one can try for in addition to various education loan options that are available from banks and NBFCs. Adequate research helps to get access to funds a smoother process, and can ensure you pick a funding option that is best suited to your requirements and capabilities.